monterey vista neighborhood association 2013 annual meeting slideshow presentations

7/30/2019 Monterey Vista Neighborhood Association 2013 annual meeting slideshow presentations.

1/60

MVNA 2013 Annual MeetingBoard members:Doug Davenport

Chris Goelitz (secretary/treasurer)

Hans Jannasch (president/NIP rep)

Becky Jones (vice president)

Arthur Simons (NIP alt/web developer)Bill Scannell

Mike Pekin

Dick Vreeland

Todays Feature Topic:

The Planned Renovat ion o f the Mon terey

Con ference Center

www.montereyvistaneighborhood.org
mailto:[email protected]:[email protected]:[email protected]:[email protected]


2/60

Monterey Vista NeighborhoodAssociation

Board members:

Doug Davenport

Chris Goelitz (secretary/treasurer)

Hans Jannasch (president/NIP rep)

Becky Jones (vice president)

Arthur Simons (NIP alt/web guru)

Bill ScannellMike Pekin

Dick Vreeland

We meet monthly (1st Monday of the month)

We are a member of Montereys NIP

We support our local CERT programOur annual meetings feature current topics of interest

MVNA Annual Picnic: Sept 15 Via Paraiso Park

$10/y per household (1styear free to new residents)

www.montereyvistaneighborhood.org

[email protected]


3/60

2013 Annual Meeting

The Planned Renovation of the Monterey ConferenceCenter

Bob Cowdrey General Manager, MCC

Chip Rerig Chief of Planning

Kim Cole Principal Planner

Kim Bui-Burton Community Services and Library Director


4/60


5/60

Monterey Conference Center - Opened in 1977

$8 million dollar investment

Revitalization of downtown Monterey; increaseCity revenues

Provide facilities to meet the needs of medium

sized conferences in Monterey

Advance the recreational and culturalopportunities of the community


6/60

Monterey Conference Center 36 years later

Group business fills hotel rooms; increasing TOTand sales tax revenues; decreasing day auto trips

Contributed to ~ $300 million citywide in TOTsince 1977*Conference Center TOT not tracked when hotels report TOT

Educational, trade, business conferences

Nonprofits, job & health fairs, cultural events


7/60

Monterey Conference Center

Renovation & Upgrade


8/60

How did we get to where we are today?

Conference Center Facility Condition Analysis

2007

$14 Million Dollars deferred maintenance

ADA Compliance issues

Conference Center Renovation/ExpansionFeasibility Study 2009

Montereys destination appeal & event planner

interest creates opportunities to increasebusiness through renovation/expansion

More TOT, new spending and jobs will becreated through renovated Conference Center


9/60


Meeting planners and Advisory Groups:Conference Center needs to update and upgrade,improve technology, increase flexibility, add

meeting space Over the past five years, at least 73 lost groups

worth at least $55 million (over $5.5 million inTOT), due to above concerns

Conference Center customers help pay for Cityservices that other cities cant afford; $505 of TOTcollected per Monterey resident in 2009 (34% ofGF), compared to $105 in Napa and $237 in SF


10/60


December 2010 RFP for architectural services toexplore renovation and upgrade of the Center.

Jan-Feb 2011 Stakeholder and Councilmember

committee reviewed responding firms.March 2011 Council authorized hiring of LMN

Architects for a Renovation and Upgrade Study

August 2011 LMN presented to Council the finalRenovation and Upgrade Study

Council directed staff to pursue a FinancialStudy for the Preferred Alternative


11/60

Upgrade Finishes

High expectations

Upgrade Infrastructure

Technology, Lighting

Improve Operational Flexibility

Meeting room configurations Divisibility of Serra Ballroom Distribution of pre-function space Increased meeting and banquet space Ability to host multiple events

Increase Capacity

Demand for more meeting rooms and exhibit space

Improve Facility Identity

Needs an identity independent from adjacent hotel properties

2011 Study Conclusions


12/60


13/60


14/60


15/60


16/60


17/60

Preferred Alternative - Business Benefitswithin existing footprint


18/60

Preferred Alternative - Concept Costs

Level 1 Level 2 Level 3 Totals

Finish upgrades $8.3 m $894K $6.6 m $15.8 m

Infrastructure $1.9 m $525K $1.8 m $4.2 m

Technology $1.5 m $322K $926K $2.7 m

Construction Cost Totals $11.7 m $1.7 m $9.3 m $22.7 m

Maintenance Items ** $1.7 m

Soft Costs Estimate* $6.3 m

Total Project Costs* $30.7 m

* Soft costs to be provided by owner, 25% of construction costs have been estimated for the determining an estimate for totalproject costs

** Includes additional recommended improvement items from the 2007 Facility Condition Analysis Report


19/60

How did we get to where we are today, contd.

August 2012 Willdan Financial presented funding

options to Council

February 19, 2013 Council approved the PreferredAlternative Design Scope and the Conference Center

Facilities District (CCFD) financing method

April16 and May 4, 2013 Council approved first andsecond reading of Ordinance to form CCFD


20/60

Review of

Monterey Conference Centerfinancing study


21/60

Three FinancingAlternatives Studied

1. Transient Occupancy Tax (TOT) increase

2. Conference Center Facilities District (CCFD)

3.Business Improvement District (BID)

Did not consider general taxes for this project (sales, property,etc.), but rather only sources that generate taxes from those thatwould benefit from the project

Bonding assumptions: 30 year bond

6% financing

Minimal level of capital renewal funding built in


22/60

Comparison ofFinancing Alternatives

TOT CCFD BID

Tax Equity All hotels @ 12.5%regardless ofbenefit

Tax rate based onhotel type

Assessmentbased on benefitreceived

Tax rate 12.5% 4%-2%-1% Per engineersreport

Voter approval 2/3 of all registeredvoters

2/3 of hotel voters 50%+1 of allthose assessed

Timing Nov. 2014 6 months 6 months

Administration No additionaladministration

Complex set upand administration

Complex set upand administration


23/60

Recommendation ofFinancial Consultant

Based upon our analysis regarding the financialfeasibility of the Conference Center Renovation,each of the three funding mechanisms describedherein are options for the City to consider; however,

the one that provides the City with the mostflexibility in its taxing structure and bondsecurity is the CCFD.

Therefore, Willdans recommendation to the Citywould be to pursue the formation of a CCFD...


24/60

ConferenceCenter Facilities District

Establish tax rates for hotels based on type:

Generates additional $3.2 million $2.7 million for debt service

$0.5 million for reserve and/or capital renewal

Hotel Type Tax Rate Number of

Hotels

% of Revenue

Generated

Adjacent 4% 3 39%

Full-Service 2% 10 48%

Limited-Service 1% 54 13%


25/60

Impact of

Monterey Conference CenterTOT generation


26/60

Financial Analysis

Spending Estimates National Average Monterey

Overnight Delegate Spending per Day $ 310.51 $ 337.26

Daytrip Delegate Spending per Day 60.95 70.22

Event Organizer Spending per Attendee 27.74 30.25

Exhibitor Spending per Attendee 115.04 120.95

Source: HVS 2010


27/60


28/60


29/60

Questions?


30/60


31/60

Bonding Information

The bonds are not a general fund obligation inany way, they are not secured by the general

fund, and the general fund is not liable.


32/60

Bonding Information

Where the general fund could ultimately beaffected is in the case of a significant default,resulting in lawsuits, the City could be on thehook for legal costs. However, these costscould be reimbursed when revenues returned

(as a loan).


33/60

Bonding Information

If the CCFD tax was not sufficient, the City couldchoose to make the debt service payments, andtreat the payments as a loan. We would wantthis included in the bond covenants.


34/60

Financial Advisory Services

Coordinate formation of the Conference Center Facilities District(CCFD)

Planning and execution of the debt issuanceProvide advice related to financing documents

Provide market analysis

Assist with rating agency and investor briefings

$77,500 TotalPaid with debt proceeds $47,500 services related to bond issuance

Paid with Conference Center reserves (reimbursed with CCFDrevenue) $30,000 services related to formation of CCFD


35/60

Special Tax Advisory Services

Assist the City with determining the rate and method ofapportionment of the special tax

Ensure that the tax is set to provide sufficient coverage

for bond payment and reserves

Assist with special tax election proceedings

$33,210 Total

Paid with Conference Center reserves (reimbursed withCCFD revenue)


36/60

Bond & Disclosure Counsel

Provide legal services in relation to debt issuance Ensure that bonds are valid and binding obligations

Bonds are appropriately issued as tax exempt

Ensures City meets required disclosure obligations

Validate bonds in court to ensure validity of CCFD

$138,000 Total Paid with debt proceeds:

$75,000 Bond Counsel

$40,000 Disclosure Counsel

Paid using Conference Center reserves (reimbursed with CCFD revenues)

$20,000 Validation Action


37/60

TOT

MillionDollars

$15.0M GF2.9M NIP

0

2

4

6

8

10

12

14

16

18

03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14

NIP Fund

General Fund


38/60

Transient Occupancy Tax(General Fund and NIP)

(millions) Growth

2007-08 15.9 4.6%

2008-09 14.8 -6.8%

2009-10 14.7 -0.6%

2010-11 14.7 -0.3%

2011-12 16.5 12.8%

2012-13 est. 17.3 4.9%

2013-14 est. 17.9 3.0%


39/60

TOT by Area

Fiscal Year Area TOT Total NIP (16%) % ofTotal

2011/12 Downtown $4,125,418 $660,067 26%

Cannery Row $4,685,266 $749,642 28%

Fremont $1,057,259 $169,161 6%Munras $2,249,245 $367,079 14%

Other $4,374,125 $699,860 26%

Total $16,536,312 $2,645,810 100%


40/60

Conference Center - Operating Budget

FY2011/12

Revenues $1,203,546

Expenditures $2,003,160

GF Subsidy $799,614


41/60

Mello-Roos Act Key Points

Tax is on hotel property owners

Tax will be allocated on basis of one vote for each dollarof special tax paid by a hotel

Tax would be collected and administered in samemanner as Citys TOT

Tax lien could be placed on hotel property if delinquent

Bonds payable from and secured by special taxesGeneral Fund is not legally obligated to pay debt service

on the bonds


42/60

Next Steps

July-Sept, 2013 Adoption of Resolution of Intention toForm District

Dec, 2013 Special Tax Election Held

Dec-Feb, 2014 Ordinance Passed to Levy Special Tax

April, 2014 Validation of Special Tax Completed

May, 2014 City starts to Collect Special Tax


43/60

Montereys success has been built on the

vision of civic leaders and citizens whoreinvented the City to meet the economic

challenges of their day.


44/60

Long Term Vision = Coordinated Results


45/60


46/60

2005 General Plan

VISION


47/60

2005 General Plan =Sustainable Vision

2005 G l Pl S t i bl Vi i


48/60

2005 General Plan = Sustainable Vision

Creates an Opportunity to Coordinate


49/60

pp yPublic and Private Efforts

Downtown Specific PlanCatalyst Site Map


50/60

Community is Already Convincedabout the

Look of the Future

Reinvestment is Starting!


51/60

301- 375 Alvarado Street

426 Alvarado Street


52/60

426 Alvarado Street


53/60

EconomicHealth

North

Fremont

Specific

Plan Lighthouse

Military

Water

Front

DowntownSpecific

Plan

MontereyConference

Center

MontereyInstitute of

International

Studies

MontereyPeninsula

College

StateParks


54/60

Commercial

Health

Services to

Residents

MCC


55/60

City Properties Play a Special Rolein Downtown Revitalization

Key Objective - Achieve broader communitygoals than a private sector approach

City Properties Monterey Conference Center


56/60


Downtown Grocery Store Not Highest Use

Created an Economic Anchor for the Downtown

City Properties - 595 Munras


57/60

City Properties - 595 Munras

Replace Gas Station Previous Entry Featureinto Downtown Monterey



58/60


Fill Hotel Rooms = Stimulates Hotel BusinessMore TOT for City and Neighborhood Projects


59/60

Next Steps:

Drafts Completed & Environmental Review Underway: Downtown Specific Plan May/June

Drafts Underway Waterfront Master Plan Awaiting Completion of

Del Monte/Washington and Multi-Modal Terminal


60/60

Water

Front

Custom

HousePlaza

Specific

PlansHotels

MontereyConference

Center

Private

Business

Private

EntitiesMaster

Plans

monterey vista neighborhood association 2013 annual meeting slideshow presentations

Documents