City Council Special

CITY OF HENDERSON CITY COUNCIL MINUTES SPECIAL MEETING July 17, 2013 I. CALL TO ORDER Mayor Hafen called the Special Meeting to order at 4:32 p.m., in the City Council Chambers, City Hall, 240 Water Street, Henderson, Nevada 89015. II. CONFIRMATION OF POSTING AND ROLL CALL The Assistant City Clerk confirmed the Special Meeting had been noticed in compliance with the Open Meeting Law by posting the Agenda three working days prior to the meeting at City Hall, the Multigenerational Center, the Whitney Ranch Recreation Center, and Fire Station No. 86, and by mailing a copy of the Agenda to everyone appearing thereon on the Agenda Master Mailing List. Present: Andy Hafen, Mayor Sam Bateman, Councilman (arrived at 4:40 p.m.) Gerri Schroder, Councilwoman Debra March, Councilwoman John F. Marz, Councilman Absent: None Officers: Jacob L. Snow, City Manager Josh Reid, City Attorney Absent: Sabrina Mercadante, City Clerk Staff: Stacey Brownfield, Assistant City Clerk Jill Lynch, Budget Manager Bob Murnane, Public Works Director Tracy Foutz, Acting Director of Community Development and Services Tedie Jackson, Minutes Clerk Jonathan Nunes, Council and Commission Services Coordinator Henderson City Council Special Meeting Page 2 of 7 July 17, 2013 – Minutes III. ACCEPTANCE OF AGENDA (Motion) Mayor Andy Hafen moved to accept the agenda as presented. The roll call vote favoring passage was: Those voting aye: Andy Hafen, Debra March, John F. Marz, and Gerri Schroder. Those voting nay: None. Those absent: Sam Bateman. Those abstaining: None. Mayor Hafen declared the motion carried. IV. ITEMS OF BUSINESS S-1 CULTURAL & EVENTS CENTER FEASIBILITY STUDY REPORT CULTURAL ARTS AND TOURISM 1. Feasibility Study Report by Conventions, Sports & Leisure (CSL) International 2. Project Discussion 3. Recommendations for staff Via PowerPoint presentation entitled “Combined-Use Cultural and Events Center Feasibility Study,” Jacob Snow, City Manager, showed photographs of the events plaza and several slides of Water Street businesses and residential homes in the downtown area. He stated that the Henderson Convention Center is 30 years old and there are very significant challenges with continuing to operate this building. He displayed photographs of the Convention Center and noted problems with the air conditioner, roofing, structural and electrical systems, plumbing in the restrooms, and the sprinkler system. Continuing with the PowerPoint presentation, Mr. Snow showed a three-dimensional rendering from the visioning workshop. This rendering depicts a Henderson Space and Science Center with a pedestrian walkway to a Convention Center. He noted the importance of having anchors for downtown recreation. He said there is great potential to have this facility be a tipping point for the growth and redevelopment of downtown Henderson. Bill Krueger, Conventions, Sports and Leisure (CSL), continued with the PowerPoint presentation and reported that there is a need for local civic space for the community. He reviewed the financial operating revenue and operating expenditures of the existing Convention Center site space, and study components. He said the market supports a convention facility about the size of the existing Convention Center, but a state-of-the-art building. Henderson City Council Special Meeting Page 3 of 7 July 17, 2013 – Minutes Mr. Krueger reviewed four scenarios: 1) A redeveloped Henderson convention center; 2) a new convention center plus hotel; 3) a multipurpose events center; and 4) a combined-use facility with a space and science center. He also reviewed development cost comparison numbers, annual cost comparison, annual benefit comparison, benefit/cost ratio comparison, typical funding sources, and funding options for all four scenarios. Project discussion Councilman Marz commented that there was not a lot of demand for scenario two, a convention center and hotel. He asked who the Convention Center would compete with. Mr. Krueger replied that the key for scenario two to be successful would be the hotel. He noted that the Convention Center would compete with Las Vegas Convention Center and existing hotels. Referring to scenario one to redevelop the existing Convention Center, Councilman Marz asked how they would get incremental business and whether vendors would be willing to pay more money for that facility to help offset costs. He also questioned where events will be scheduled if the existing Convention Center is closed. Mr. Krueger said he would prefer to keep the rates the same to maintain business. He believes that most of the events would find other locations at hotels in Henderson and Las Vegas to hold their meetings if the Convention Center is closed. In response to a question by Councilwoman Schroder regarding the percentage of conventions versus events at the existing convention center, Andrea Primo, Director of Cultural Arts and Tourism, estimated that events are 90 percent and mostly local business. She noted that revenues are very low because staff has not done much marketing. Councilwoman Schroder commented that if the facility is going to be a convention center, it needs to attract more conventions and create an identity. She asked if there are enough events throughout the year that would utilize scenario three as a multipurpose events center. Ms. Primo replied that part of the concern with this scenario is it would not satisfy the convention center aspect. Referring to scenario four, Councilwoman Schroder stated that having the Henderson Space and Science Center connected to a convention center will create confusion that it is part of the city when it is actually a separate entity. She said that although the City’s finances are in a deficit, she believes it is worth spending the money now to benefit the future and help the economy. Henderson City Council Special Meeting Page 4 of 7 July 17, 2013 – Minutes Responding to a question by Councilwoman March as to whether population growth and trending were considered while projecting the demand and use for this facility, Mr. Krueger explained that a casino would have an interest in hotel rooms. He also noted that a convention center needs to have a block of hotel rooms available to sell that block to conventioneers. Councilman Bateman summarized that scenario one would work because it would be a continuation of the existing Convention Center. He believes the second scenario could work only if a hotel is constructed. He said he does not believe scenario three has the return on investment. Councilman Bateman stated that scenario four would be great, but more costly to develop. Councilman Marz said Henderson consists of more than just Water Street and questioned whether it is really the ideal place to put a convention center. Mr. Krueger commented that the ideal place to develop a convention center is near hotels. Mayor Hafen stated that he believes the existing casinos on Water Street would have built a hotel if the market demanded such. Tim Brooks, 120 Market Street, representing the Water Street District Business Association, stated that all of their members would hate to see the Convention Center go away. He said he thinks one of the best ideas is the market scenario concept. Rick Smith, 590 South Boulder Highway, representing the Henderson Chamber of Commerce, stated that there is an important synergy and a unique opportunity to redevelop Water Street with safe, family-friendly establishments and businesses, as well as night life to attract people. He noted the existing infrastructure, history, and culture associated with Water Street is a benefit. James Campa, 910 South Boulder Highway, General Manager of Hawthorn Suites, said he would welcome the hotel scenario and believes other hotels in the area would benefit from events. He believes that there is a lot of opportunity to bring an events center to the Water Street area. Elizabeth Hernadez, 115 Beech Street, representing the Wingate Hotel and Casino, stated that scenario two with a hotel would be amazing because it would be profitable to many Henderson businesses and give vibrancy to Water Street. She noted that she turns away convention business because their meeting space is too small. She would love to see more conventions bringing business into the city. Henderson City Council Special Meeting Page 5 of 7 July 17, 2013 – Minutes Lauren Davis, 1301 West Sunset Road, representing Sunset Station Hotel and Casino, said they support redevelopment of the Convention Center. She would like to partner with the Convention Center regarding hotel rooms and transportation to Sunset Station. She noted that Sunset Station has a lot of sporting events and a convention center with sporting courts would be beneficial. Ms. Davis suggested that local hotels could get together to help market the Convention Center. Alex Raffi, representing Imagine Communications, stated that downtown redevelopment represents the pride of Henderson. He thinks it would be beneficial to maximize the opportunity to communicate the possibilities of this site to everyone. Recommendations for Staff Mayor Hafen stated that he appreciates the presentation, but he did not have the ah-ha moment he was hoping for. He said he is not ready to support any of the scenarios presented at this time. Councilwoman Schroder thanked everyone for speaking and participating in this meeting. She said she is not sure which option is the best, but she believes that having a convention center on Water Street will benefit the hotels and the Downtown Henderson Business District. Councilman Bateman commented that the Council needs to further discuss this project and work out funding issues. Councilman Marz commented that this is a difficult and complicated issue. He agrees that Water Street is unique and should be preserved. He noted the importance to satisfy the people attending conventions with restaurants, night life, and activities when they are not in the convention. He believes we need to get private investors attracted to investing in Water Street and be involved in this vision. Mayor Hafen commented that he does not feel the idea of a new convention center or events center will work. He said the Council needs more direction of what will happen with the different scenarios. Mr. Snow said it is clear that scenario three has been eliminated. With regard to scenario four with the Space and Science Center, he believes it would be important to allow that group an opportunity to review the numbers and meet with the Mayor and Council. Mr. Snow stated that there is a tremendous value to the events center and the plaza that could be utilized. He said staff will work with the consultant to provide the Mayor and Council with specific recommendations for scenarios one and two, and take a closer look at the hotel component. Henderson City Council Special Meeting Page 6 of 7 July 17, 2013 – Minutes Councilman Marz agreed with comments from speakers to consider partnering with larger hotels and coordinating efforts to benefit the Convention Center and the hotels. He noted that he does not want to take business away or compete with local businesses. He said we need to make this a community effort and not just build space and hope they will come. Kevin Regan, no address given, said the Council has to make a decision of the “chicken or the egg” and determine what is most needed. He believes that not developing a hotel will be a mistake and suggested that the consultant do a hotel feasibility study. He said the Council should not make any rash decisions and consider how to increase economic development after an economic downturn. He pointed out that Henderson is the perfect location between Las Vegas and Boulder City, and a convention center is needed. Mr. Regan stated that there is great potential and the City must drive the business in that center with support from the local community. He also noted that he likes the idea of a space museum. (Motion) Councilman Sam Bateman moved to accept the report presented by Conventions, Sports and Leisure International (CSL) and direct staff as appropriate. The roll call vote favoring passage was: Those voting aye: Sam Bateman, Andy Hafen, Debra March, John F. Marz, and Gerri Schroder. Those voting nay: None. Those absent: None. Those abstaining: None. Mayor Hafen declared the motion carried. V. PUBLIC COMMENT There were no comments presented by the public. VI. ADJOURNMENT There being no further business to come before the Council, Mayor Hafen, in concurrence with the Council, adjourned the Special Meeting at 6:48 p.m. Henderson City Council Special Meeting Page 7 of 7 July 17, 2013 – Minutes PASSED AND ADOPTED THIS 3rd DAY OF SEPTEMBER, 2013. ______________________ Andy Hafen Mayor ATTEST: ________________________ Stacey Brownfield, MMC Assistant City Clerk