10/08/1996 Minutes - Laserfiche WebLink

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??...J develops to the east to have a lighted path to that access way. He explained that the elevation of the building will remain practically the same, and presented the color elevation that was presented at the last meeting. They will need colors and materials approved by architectural review board and also have to get approval from Biskind Development who is selling the property. They would like to go directly to arclutectural review board in order to get their approval. The building will be 3 stories high, and does not exceed 50 feet. Mr. Jobeson, the developer of this project, presented a brochure and gave a detailed explanation of extended stay hotels, including the background of this coinpany. The first section of the brochure had a newspaper article that explained the need and how extended stay hotels operated; who these hotels attracted; and why this type ofhotel is needed in today's corporate business world. Another article explained a specific Homestead Village Hotel and stated that 91 percent of their clientele would be the business traveler. He clarified that these hoteLs fiuuished amenities that other hotels did not have, specifically a computer work station, limited cooking facilities, and a wet bar. The third article in Inn Keepers USA explained the success of the extended stay facilities. The next article explained that hotels in general are having a banner year on rising rates. Section 4 of the brochure showed the floor plan of the units and explained the 3 types of rooms that they offered: Standard Rooms are 317 square feet, King/Double-Double rooms are 387 square feet; and Deluxe Rooms are 384 Square feet. He stated that there was no way that these units could be converted to apartments, especially considering that North Olmsted had a mivimum size for apartments of 660 square feet. Section 3 gave a background of the Homestead Village facility which was introdueed in 1992 in Dallas, Texas. It was explained that Homestead Village is both owned and operated by Security Capital Group, in contrast to other owners who franchise out the operations. At this time Mr. Jobeson presented a summary wluch listed sites that his company is developing east of the Mississippi and noted that the other two regions have similar summaries, but he explained that he would have to have this back since it contains information that their competitors would like to have. This explained that over 60 professional people worked in their 3 regional offices to help develop the chaiu into one of the premiere brands in the lodging industry. Security Capital Group is the largest operating real estate company in the United States and has made the investment to lure these people to develop this chain. He clarified that they are charged to build 40 to 50 of these projects per year. Returniug to section 3 of the brochure which gave the background of the typical guest profile; a white collar employee, who is a college graduate earning over $60,000 per year, who is there for a business reasons and is gone during the day and retums after business hours. He noted the graph which showed that the typical guest had an income of about $60,00 per year. This brochure went on to explain the building and what the rooms included. He explained their marketing strategy to reach the business traveler and ezplained that they do not look for acquisitions; they build, own and operate their own facilities, there are no franchises. He pointed out the list of Homestead Village locations and read a partial list of their clients. In reference to the need for extended stay hotels, he referred to section two which explained the airport (Cleveland) occupancy was 75.5% and the Cleveland South-West occupancy was 69.9% in 1995, but extended stay narionally is about 88.5%. He maintained that the market study showed that there is a need for extended stay hotels in all markets. He concluded by saying that Security Capital is committed to building a brand name and one of the foremost chains in the industry, and the commission can be assured that all the hotels in the chain will need to live up to the chain's very high standards. In section 4, there is a floor plan as requested by the planning commission and he also submitted photographs of a room as requested and noted that the rooms were nicely appointed. In reference to the room size, he explained that they had 87 units that were 317 square feet, 26 units that are 387 square feet, and 26 units that 384 square feet, and that they needed all 3 sizes to better serve the market. He pointed out that if they took a weighted average of the room, it would turn out to be 341.69 square feet. He clarified that one room had two double beds and the otHer had a partition wall that gave it the appearance of a suite. He did not think it would make a better project if all the rooms were the same size. He believed that this would bring in taxes and jobs to the cominunity. He repeated that they would like to request variances for the canopy which is for the 3