03/26/1996 Minutes - Laserfiche WebLink

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4) Biskind Development Company, Amendment to a preliminary land use plan proposing a hotel (Studio Plus) at Great Northern Technology Park, to be located on the south side of Country Club Boulevard, east of Victoria Plaza Apartments. Referred by council March 5, 1995. Mr. Corsi, representing the owner of the property, presented the preliminary plan and conected the agenda write up which refened to the proposed development as a motel, it should have read hotel. He explained that Studio Plus is an extended stay motel and would be comparable to a Residence Inn, but not with all the amenities, since it is geared to a medium cost long term stay. Considering that there is another hotel proposed, Mr. Brennan questioned if there was a need for a fourth hotel. Mr. Corsi stated that their company did not do the demograplucs, but the industry wide information is that hotel capacity is up and growing. This facility will have 72 rooms. Mr. Herbster noted that he had originally proposed another hotel next to the Courtyard. Mr. Corsi responded that there are no plans for that at this time, they are only asking for this one. Building Commissioner Conway reminded the commission that when the Marriott land use plan was submitted, the members had asked for some demographics to establish a need. This should be of interest for either property. Mr. Brennan is concerned that if two more hotels are built, occupancy rate of the existing hotels will go down and instead of a high class hotel, this area could become another Lorain Road in Fairview Park. Mr. Corsi advised that the existing hotels have an 85 percent or better occupancy rate which is extremely high for the hotel industry. It has been quoted in the Urban Land Institute that occupaucies have been at 65.5 percent or better in the hotel industry in general and they expect higher occupancy in the next two years. Mr. Brennan noted that this is nationwide, and he does not see the need in North Olmsted. Mr. Corsi responded that the need is determined by the user, who would not make such an investment without understanding what the market would be. This facility is for extended stays, and is unlike any other hotel in North Olmsted. He advised that the Technology Park office buildings are not fully occupied. Mr. Mauving pointed out that there is a rush to build hotels in downtown Cleveland to fill this need, but when there is a glut of hotels downtown, it could make a problem in North Olmsted because this area might not be of interest. He noted that the developer had asked for another hotel next to the Marriott, but it was not approved, and he is concemed that, later when there will be a demand for office space, the city would be stuck with hotels. He believed that the need for hotels is being satisfied. Mr. Corsi believed that this same argument could be used against building office bu.ildings. Mr. Brennan stated that the same things that make this area attractive to hotels, would make it attractive to corporate headquarters. He believed that hotel jobs were basically minimum wage, an office would give the city a better return and would have a lower impact, less petty crime,. stolen cars, etc. Mr. Corsi stated that there was an article in the Westlife quoting the Finance Director as stating. that a hotel would result in $30,000. to 40,000 in revenue and that would be the tax equivalent in income taxes from an office with 50 employees each earning $30,000, or a million and a half dollar payroll; and that did not include the°income tax contributed by the enaployees. The impact on the public facilities and services would be minimaL Chairmau Tallon reminded Mr. Corsi that the commission had asked that the next time he presented a proposal that he submit information on all the developed land that is owned by his company in the Mixed Use District. Mr. Corsi thought that they just wanted a site plan showing all the land in parcel `B" and all the drives in that affect that area. Mr. Tallon responded that the request was for all of the Mixed Use land. He asked that the developers of the hotel come to the ne3ct meeting and share the demographics, the need for the development, what its future is; and why they feel that this is a good area for it; and, at the same time, he would like to see the plan of all their Mixed Use land. A member of the auclience asked them to explain what the hotel was like, but was advised that this is merely the preliminary land use plan, the building proposal will be discussed later. Mr. Conway advised that the preliminary land use plan had to 5