02/10/1998 Minutes - Laserfiche WebLink

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- TV• NEW DEVELOPMENTS AND SUBDIVISIONS: 2) Great Northeni Pro erties Prelunina Land Use Plau Count Club Blvd. The preseutatiou is for use by proposed Caudlewood Hotel, located ou the south side of Country Club Blvd., east-adjacent to the newly constructed Homestead Village HoteL Zoniug is Mixed Use District Entirely. Mr. Gould, attomey, presented a booklet and explaiued the proposaL He advised the puxpose of the booklet was to show that in this area there is actually a mixed use wluch includes: Multi Family, Office Properties, Hotels, Retail Property and some Restaurants. Inside the booklet was an article from Crains Cleveland Business, dated December 8, 1;997 which Mr. Gould read a portion of aloud. He advised, even though there are more hotels going up in this area, the occupancy is still good. Mr. Gould did not believe tlus would have any more negative impact than any other kind of development. He explained the total potential tax revenue is approximately $260,000.00, ofwhich $109,000 would go to the school board, and $152,000 would go to the city. This was made up of four different revenues including: a hotel tax of 3%, real estate taxes, individual income tax, a.ud corporate income tax. Mr. Gould believed some of the county money for the hotel tax eventually returned to the city. Councilman McKay advised the city no longer receives hotel tax money from the county. Mr. Gould explained his numbers may not match with the specific development because they were not picked based on a certain development. Chairman Tallon wondered how the existing hotel tennants are doing. Mr. Gou.ld advised he has not had much feedback from the existing hotel tenants, however, he personally handled all the negotiations on the land sales and each one of these parties was advised they are tallcing with other people for potential hotel developments. He confirtned, everyone that purchased the property in that area was aware of the circnmstances. Mr. Brenna.n questioned what the occupancy rate is for the hotels in North Olmsted. Mr. Gould eacplained, the operation of the Hampton Hotel was somewhere in the 75% to 79% occupancy range, and the Radisson enjoyed an 85% to 87% occupancy rate. He further explaiued the hotel operators feel a successful hotel can operate in the 60% to 62% occupancy range. Mr. Gould stated the market for hotels is better in North Olmsted in comparison with commuuities such as Middleburgh Heights. Mr. Asseff questioned why hotel development in this area is better than that of Middleburgh Heights. Mr. Gould stated, North Olmsted's development is conducive to support the hotels as shopping , centers, entertainment fa.cilities and resteraunts are plentifuL He further advised the aesthetics in North Olmsted are much better than the buildings in iVliddleburgh Heights. Mr. Brennan advised one of the argumentative points when the other three hotels were proposed was that hotel development would promote the developmeut of offices. Mr. Gou1d stated, although the hotel itself is a positive in relocating an office, it would not drive the location of an office building. He further explained the locations of office build.ings, according to the studies of people in the land development field, take place primarilly in a coridor that is related to the highest priced residential areas which in this area is Beachwood. Anything outside of Beachwood, Mr. Gould explained, would be a secondary or nitch market. Mr. Tallon explained the developer from Homestead stated at a previous meeting that a cluster of hotels would help create an area for office. He questioned if their has been any increased interest in the o:ffice market in conjunction with the development of the three hotels. Mr. Gould advised he has not noticed any increase. Counciltnan McICay wondered iftlus would be an extended stay hotel. W. Gduld responded the request is