04/09/1996 Minutes - Laserfiche WebLink

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c-? CITY OF NORTH OLMSTED PLANNING CONIlVIISSION MINUTES - APRIL 9, 1996 . AMENDED I. ROLL CALL: Vice-Chairman Mauning called the meeting to order at 7:45 p.m. Present: D. Cameron Alston, T. Brennan, T. Herbster, A. Manning, and K. O'Rourke. Absent: R. Koeth and R. Tallon. Also Present; Assistant Law Director Dubelko, Building Commissioner Conway, City Engineer Deichmann and Clerk of Commissions Oring. II. REVIEW AND CORRECTION OF MII-?UTES: The review of minutes of March 26, 1996 will be deferred until the next meeting. III. BiTII.DINGDEPARTMENT REQLTESTS: 1) 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, 1996. - Continued by planniug commission March 26, 1996. Mr. Corsi, representing the owner of the property, had submitted a complete plan showing all of the Mixed Use property owned by his company and indicating the various uses: retail, hotels, multi family, office buildings, restaurants, and vacant land as requested at the last meeting. He also presented information pertaining to hotels done by a marketing company (this information is included in file) and summarized these facts which estimated that the market could absorb up to 3,000 to 5,000 units in extended stay hotels with revenues projected to grow at 4.9% in 1996. It was reported that the revenue generated for the city by the hotel would be about $30,000. to $40, 000. per year which would equate to an office building with 50 employees each earning $30,000. per year and these amounts do not include income taxes paid by the hotel employees. Studio Plus' occupancy rates are at 86% for all their facilities and occupancy rates for North Olmsted hotels is at 86%, 35% over the national average. He quoted that the growth rate projected for the office lease force in the nineties will only average around l percent per year and the average office size is projected to shrink by 33%. In Cleveland most office buildings are constructed on a,build to suit basis, not as speculative multi- tenant buildings. The west suburban office space has a vacancy rate of 17.5% which is the highest in the area; North Olmsted has a 1/3 share of that market. He explained that, at the amount of growth projected, it would take 40 years to build offices on their vacant land and concluded that hotels were the Rea1 Estate Industry's best performers with a national occupancy rate of 65 percent overall, Cleveland's is at 70%, and North Olmsted's is 85% which indicates that there is a market for additional rooms. He clarified these figures were for all hotels, not Just extended stay facilities, but as reported by the Wall Street Journal and other authorities, the trend is toward extended stay hotels. He advised that of the guests in Studio One, 82% are professional white collar employees and 92% are business travelers, and 62% earn more than $46,000. annually. He advised that all of the major hotel chains are starting divisions for extended stay hotels. Studio Plus is not a full service hotel, and Mr.