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HomeMy WebLinkAbout1992-02-18 Support Documentation Town Council Work Session /~L ~ VAIL TOWN COUNCIL 8:00 AM - 1:30 PM: GOAL SETTING SESSION. IN THE ST. MORITZ ROOM OF THE SONNENALP SWISS CHALET WORK SESSION TUESDAY, FEBRUARY 18, 1992 2:00 PM IN COUNCIL CHAMBERS AGENDA 1. Gerald R. Ford Amphitheater Presentation: Joint Session with the Planning and Environmental Commission and the Design Review Board. Applicant: Vail Valley Foundation (Architect Jim Morter). 2. Vail Valley Performance and Conference Center Steering Committee Presentation. 3. Information Update. 4. Council Reports. 5. Other. 6. Executive Session: Legal Matters. 7. Adjournment. t~" C:W GENDA. WS r- VAIL TOWN COUNCIL 8:00 AM - 1:30 PM: GOAL SETTING SESSION, IN THE ST. MORITZ ROOM OF THE SONNENALP SWISS CHALET WORK SESSION TUESDAY, FEBRUARY 18, 1992 • 2:00 PM IN COUNCIL CHAMBERS EXPANDED AGENDA 2:00 p.m. 1. Gerald R. Ford Amphitheater Presentation: Mike Moliica Joint Session with the Planning and Environmental Commission and the Design Review Board. Applicant: Vail Valley Foundation (Architect Jim Morter). Action Requested of Council: Hear the presentation regarding expansion of the fixed seating area (176 new seats), and the roof modifications (weatherproofing). Background Rationale: The DRB conceptually reviewed the proposal on February 5, 1992. The final DRB review is scheduled for February 19, 1992. •2:30 p.m. 2. Vail Valley Performance and Conference Center Steering E.B. Chester Committee Presentation. Ron Phillips Action Reauested of Council: Hear the presentation and consider the Jones and Phillips report as a framework for further detailed study to include: facility programming, facility management, facility financing, implementation time frame, and further physical definition study. 3:00 p.m. 3. Information Update. 4. Council Reports. 5. Other. • r Larry Eskwith 6. Executive Session: Legal Matters. 7. Adjournment. C:WGENDA. WSE 1 TOWN OF VAIL ~ , 7S South Frontage Road Office of the Town Manager ' Vail, Colorado 81657 303-479-2105/FAX 303-479-2157 T0: VAIL TOWN CO L " FROM: PAM BRANDME $R~ ' DATE: 14FEB92 RE: WORK SESSION SCHEDULED TIME HAPPY VALENTINE'S DAY!!! In order to accommodate the departure time for those on Council leaving for Whistler on Tuesday, February 25, 1992, the regular Council Work Session will begin at 10:00 A.M. Lunch will be served. We are anticipating this work session may last until 3:00 P.M. PLEASE MARK YOUR CALENDARS!!! THANKS!!! MEMORANDUM TO: TOWN COUNCIL FR: dd DA: February 17, 1992 RE: GOAL SETTING SESSION`8:00 AM - 1:30 PM AT THE SONNENALP SWISS CHALET (ST. MORITZ ROOM) Please review the attached listing of 1991 Council Priority Goals with Current Status for tomorrow's goal setting session with Carl Neu. The meeting begins promptly at 8:00 AM, but you may wish to arrive by 7:30 AM to have a bite to eat and get settled. I Work session will begin at 2:00 PM in Council Chambers: Let me know if you have any questions. i i a I _J MEMORANDUM TO: Mayor Peggy Osterfoss Town Council Members Ron Phillips FROM: Pam Brandmeyer DATE: January 10, 1992 RE: Listing of 1991 Council Priority Goals With Current Status At a February 19, 1991, special meeting, Town Council established long-term goals and objectives for the calendar year 1991. A list of these priorities, by vote count, is as follows: 1. Housing g 2. Long-Range Strategic Plans 7 3. Police Building g 4. Lionshead Master Plan g `5. Marketing 5 6. Implementation of a Parking/Transportation Plan 4 7. Environment 4 8. Ten Year Tree Planning Program 4 What follows is a brief synopsis, giving a description of the long-term goal, as well as its current status. Council members should have in mind . her/his top five priorities to help expedite the 1992 goal setting process, to be held Tuesday, February 18, 1992. Priority goals for 1992 need not come from this current listing. 1 GOALS AUGUST 1991 STATUS CURRENT STATUS HOUSING A Housing Authority was established for In November, 1991, the Housing Authority the Town of Vail in February, 1991. completed its business plan and Experts on housing issues have met with presented the document to the Town the Authority for several months. The Council. The business plan sets forth the group is meeting twice a week in order to Authority's mission statement, goals and become familiar with various housing objectives, and five year housing alternatives. Once the initial education production plan. Priority one projects process is completed, the board intends to include a 75-unit rental developmenrt for develop a road map of action or action year-round residents on four acres of the plan for their efforts. Jill Kammerer has lower bench of Donovan Park and a 4-6 been assigned as the staff person for the unit for-sale project at the intersection of board. The issue of a permanent staff Garmisch and Arosa in West Vail. The position for the housing authority needs to first community meeting to discuss the be addressed in the near future. business plan and the proposed priority one projects was also held in November. In addition to completing the business plan, the Authority applied for two separate Colorado Department of Local Affairs (DOLA) administered grants including a grant from the Energy Impact Assistance Fund for $300,000. These funds would be used for the construction: - of the 75-unit long-term rental development referred to above. The Town ---has-recently--received-an acknowledgement from Governor Romer stating the entire $300,000 has been awarded to Vail. The second grant application in the amount of $22,000 was made to the " Colorado Initiative's Program for Technical Assistance with the design and creation of anew revolving loan pool for affordable housing. Through this program, long-term mortgages would be provided to residents of Colorado's highest-cost resort communities for the purchase of affordable condominiums, town homes, and single family homes. Although the 2 GOALS AUGUST 1991 STATUS CURRENT STATUS Authority was not awarded funding under the Colorado Initiatives Program, DOLA believes the program has merit and has encouraged the Authority to meet with members of DOLA's staff to discuss alternative funding sources. Revisions to the zoning code to allow density bonuses for individuals constructing permanently restricted employee housing units have been provided by the PEC. An ordinance setting forth these code modifications was reviewed by Council on 9-17-91. In July, an analysis of commercial and residential development employment generation was completed. I n August of 1991, a joint work session with members of the Town Council, PEC, and Housing Authority was held to discuss applying a formula for generating employee housing based on _ the type of commercial and/or residential development within special development districts. The Town staff is now in the - -process-of synthesizing-these-comments and will present specific code modification suggestions to the PEC and Town Council in the upcoming months. Budgeted in 1992 is $30,000 for the Authority's day-to- day administration. The Council has just approved George K. Baum (Kirchner Moore) to assist the Town in refunding the Pitkin Creek Townhome bonds. This will bring $800,000 - . $1,000,000 to the Town, a substantial portion of which may be shared with the Housing Authority for affordable housing needs. 3 GOALS AUGUST 1991 STATUS CURRENT STATUS LONG RANGE STRATEGIC PLAN Although the Vail Valley Foundation had The Vail Symposium has formed the originally developed a scope for the Eagle Valley Community Forum which is strategic planning process, by August, the initiating efforts to develop avalley-wide WF had indicated it was no longer process to look at community issues. appropriate for them to fill this role. Sherry Dorward is leading this effort. Kristan Pritz, Ron Phillips, and several Council members have been involved. The Council has funded $5,000 toward this effort in the 1992 budget. POLICE BUILDING The Municipal Complex Task Force had Roth and Sheppard and outlined a process as it related to the Snowden/Hopkins have been retained to resolution of a space shortage issue program space needs, assist in site involving the police department and other selection, and develop conceptual and municipal government departments. preliminary plans. Following community input at a public meeting, it was decided to focus on the Following community input, it was decided current municipal complex site and to the east parking lot of the current concentrate on the police facility only. municipal complex would be most appropriate for any new structure. Several designs have been developed and are now available for Council review. This-review-will-be-held in-February,-199. Over 150 people toured the present police facility during last August's open house, in an effort to make the public aware of the police department's operating problems. Town Council member Rob Levine and PEC member Ludwig Kurz are both members of the municipal complex task force. 4 GOALS AUGUST 1991 STATUS CURRENT STATUS LIONSHEAD MASTER PLAN Staff recommends this plan should be This planning effort will now be addressed addressed in 1992. in the Community Development Department's 1993 budget. The intent of the plan is to use a similar process as was used in the streetscape plan, to look at potential for infill development, landscape improvements, and other alternatives to improve the attractiveness of the Lionshead area. Eldon Beck and Sherry Dorward have completed a conceptual plan for Sun Dial Plaza, with funding approved by the Lionshead Merchants' Association. Construction is scheduled to begin in spring of 1992. Staff will be scheduling a meeting with the Lionshead Merchants' Association to discuss opportunities for store front improvements. Currently, staff and Council are hoping to meet with the Lionshead Merchants' Association at their regular meeting on Tuesday, February 4, 1992. MARKETING The Vail Valley Marketing Board, in its The WMB, in conjunction with Schenkein third year of existence, is continuing to advertising, has defined 12 target markets research its markets, define its targets, throughout the nation and is focusing and direct its summer message to those radio and print advertising, as well as throughout the nation most likely to come public relations efforts, in those areas. to Vail in the summer. Advertisements in USA Weekend, Travel and Leisure. Vis a Vis, American Wav, and Architectural Digest, generated over 23,000 inquiries. Additionally, it is estimated that 1991 public relations efforts produced approximately $600,000 of publicity value, and reached over 50 million people. The defined target market is individuals between the ages of 40 and 65, with incomes exceeding $75,000. 5 GOALS AUGUST 1991 STATUS CURRENT STATUS In 1991, WMB experienced increased local interest and support for its efforts as " reflected in the numerous private sector contributions it received and the broad- based attendance by individuals at weekly WMB meetings. The WMB was asked by the Town Council to establish a process for its funding of special events. The WMB, in conjunction with numerous local event oriented groups, has established such a process and is establishing the Vail Valley Special Events Commission to deal with event-funding issues. The WMB is required by ordinance to appear before Council during the month of March, 1992, to report to on the effectiveness of the marketing and promotional program financed by the funds raised pursuant to our ordinance. Council will contribute $160,500 from the General Fund and approximately $330;000-from-funds-generated-by-the business license fee in 1992. IMPLEMENT PARKING/ While the formal adoption of this plan has Arnie Ullevig appeared before Council at TRANSPORTATION PLAN not occurred, the concepts have been its regular work session on the 14th, then presented to Council and there is again Wednesday morning, January 15, consensus about the plan. Following for a public input session relating to the Arnie Ullevig's presentation to Council in Village loading and delivery areas as May, and taking into account certain proposed in the plan. The capital projects budget implications, by early fall of 1991, as outlined in the August 1991 status, this plan should have proceeded through appear in the 1992 budget and are all the PEC/DRB process and should have listed as desirable. The Town of Vail has received substantial public input. Some requested state funding which may be recommendations from the plan have available by 1997 or 1998 for both the 6 GOALS AUGUST 1991 STATUS CURRENT STATUS already been implemented, i.e., new Simba Run and West Vail interchange parking fees, restructured east and west projects. The Town should find out by Vail bus routes, expanded hours of August of 1992 whether this funding will service for buses, and so on. Seen as be available. The funding from the state desirable, and included in the proposed represents approximately 50% of the cost 1992 Capital Expenditures budgets are of the project. Council is aware of diverse the following: reactions from the community in regard to . the overall master parking and New Shuttle Buses $100,000 transportation plan. Christiania Village Loading Facility (Planning Documents) $150,000 Simba Run (Planning Documents) $140,000 ENVIRONMENTAL ISSUES Staff is underway on research fora A. Wood Burning Fireplaces program to address existing wood burning fireplaces within the Town of Vail. Susan Ordinance 21 of 1991 put in final form Scanlan has worked to prepare research new controls over wood burning for joint meetings with the PEC and the fireplaces. This ordinance will be Vail Town Council. A discussion of the amended as new technology appears. Town of Vail's road sanding practices was In further research provided regarding _ scheduled in March for a PEC meeting gas logs, Ordinance 42 of 1991, set - and-in alfgifforts-initiated-by the Town,-a'--- -forth-further-controls and-calls-for strong public education component has voluntary conversion of existing wood been included. Kristan Pritz is in the burning fireplaces to either gas or EPA process of hiring an environmental phase II certified units at the time of specialist for the Town of Vail, and the renovation or new construction. Council has been notified the process has gone into its third round of interviews. A B. Road Sanding second and final reading of the fireplace air pollution control ordinance is set for The Town of Vail is involved in the August 6, 1991, meeting. ongoing discussion with CDOT. Currently, samples of particulates from both CDOT and the TOV have been sent to a lab for examination of these road sanding materials. An analysis will be done in regard to suspension of particulates and durability of material. 7 GOALS AUGUST 1991 STATUS CURRENT STATUS C. Staffing The post of environmental planner has not met with a successful recruitment. Kristan and Bob Mach will be discussing this issue with Council on 2-4-92. D. Recvclinq For the third year in a row, Council has authorized use of the loading dock and delivery area of the municipal annex building and has also budgeted $14,100 toward this effort. The County funded "We Recycle" below their request and said "no" to an increase in land-fill fees. A fee to businesses using the pick up service currently provided by "We Recycle" has been discussed. E. Composting . This project is now run solely by Upper Eagle Valley Water and Sanitation and was not on-line until late summer of 1991. UEVW&S will try again in 1992. . Park maintenance converted most of its mowers to mulching mowers in 1991, reducing the quantity of landscape waste generated. Other landscape waste is composted at the Town Shops facility. The Christmas tree recycling program began in January of 1991 and continues in January of 1992. These mulched trees are used in landscaped areas throughout the Town. 8 GOALS AUGUST 1991 STATUS CURRENT STATUS F. Water Quality No action has been taken awaiting the arrival of the senior environmental policy planner. Deadlines for non-point source runoff occur in November of 1992. An EPA grant has been applied for, and the Town should know by the first part of 1992 whether in-kind services in the amount of approximately $7,500 through Northwest Council of Governments will be provided. The scope of the project is still to be determined. G. Clean Up Dav For the third year, Clean Up Day was a success, with $5,807.44 being the total cost of this project and 5 1/2 tons of trash collected. 39 Eagle County non-profit groups participated in this project. ` H. Recycled Pager The Town is currently purchasing recycled paper at a cost of $1 per ream more than the standard cost of paper. This is for 8 1/2 x 11 inch paper only; recycled 8 1/2 x 14 inch paper is not currently available. All mailings, including brochures, newsletters, press releases, etc., are of recycled paper: The next order of letterhead will be on recycled paper, as well. 9 GOALS. AUGUST 1991 STATUS CURRENT STATUS I. Restaurant Compliance/Smoking Voluntary restaurant compliance has been successful, with the majority of the restaurants now requiring non- smoking areas .in their dining rooms. J. Trash In 1991, trash violations where action was taken, numbered approximately 260, as opposed to 224 violations during calendar year 1990. The code enforcement officers have developed some long-range plans to resolve the problems, and these have been initiated. As well as confronting individual complainants, code enforcement and community development are acting together to identify neighborhoods which can be improved through corrective activities. The neighborhood development plan includes the following phases: 1. Identify the neighborhood and its existing problems. 2. Send general information letters to act as an educational tool and as a warning. 3. Specific violators in these neighborhoods are given written notice of the violations, along with a reasonable period of time to correct the problems. 4. A summons to court is issued to the violators who do not respond to the warnings. 10 GOALS AUGUST 1991 STATUS CURRENT STATUS . K. Abandoned Vehicles The number of identified and tagged abandoned vehicles stayed consistent with 1990, 257 vehicles: Tagged 164 ' Tagged and Claimed 20 Tagged/Processed/Sold 40 TOTAL NUMBER OF VEHICLES 1991 224 Until some legal issues are resolved, police involvement with "Private Property Abandoned" is limited to extreme cases. L. Animal Control 175 dog-tickets have been issued since January 1, 1991. The animal control position has been vacant since September, when the ACO took over • the same position for Eagle County. Until that position is filled, a contract with Eagle County Animal Control will give the Town coverage beginning January 1, 1992. TEN YEAR TREE PLANNING A volunteer tree planting project was PROGRAM completed on I-70 right-of-way in October 1991, by the Vail/Eagle Valley Rotary Club. The 1992 RETT project budget includes $10,000 for tree planting projects. Town staff is currently working with a group of citizens, service organizations, and the Colorado State Forest Service on 11 GOALS AUGUST 1991 STATUS CURRENT STATUS a project for 1992. The interest is to plant one mile bf I-70 as a demonstration project using a combination of volunteer efforts, cash donations, and government participation. The landscape architect/parks superintendent has discussed the Town receiving "tree city USA" designation with the State Forest Service. The above information reflects a current progress report for the eight top areas of priority interest for Council members as stated in 1991. What follows is a listing of other areas of interest expressed by Council members and their current status. They are not listed in any ranked order. 12 GOALS AUGUST 1991 STATUS CURRENT STATUS LAND/OPEN SPACE PURCHASES Spraddle Creek and Golf Course Appraisals were $345,000 for Spraddle Maintenance Parcel: These parcels are Creek, and $20,700 for the Golf Course owned by the U.S. Forest Service and are Maintenance parcel. Appraisals were not currently being appraised. approved by the regional office of the U.S.F.S., and they have initiated their own appraisals which came in considerably higher. Larry and Ron are investigating the Town's options at this time. The two Upper Eagle Valley Water and Sanitation District Parcels were delayed by a joint agreement between the TOV and UEVW&S. Holy Cross Electric Contract was REA approval was not granted and the approved to purchase the Holy Cross deal was abandoned. New discussions Electric site. are being initiated by Ron. Berry Creek 5th Filing purchased and then sold to the Eagle County Recreation Authority. General Open Space Acquisition Proposals being developed now. LANDSCAPING PROJECTS/GENERAL A. EAST VAIL INTERCHANGE: Staff is discussing additional tree plantings, construction of a parking area for recreation path users, and construction of a bus stop shelter with public phone and information signs at the road to Pitkin Creek Townhomes. 13 GOALS AUGUST 1991 STATUS CURRENT STATUS B. MAIN VAIL INTERCHANGE: The 1992 RETT project budget includes $158,850 for landscape design and construction, in addition to $130,525 each for 1993 and 1994. This project is the second phase implementation of the 1989 Landscape Improvement Master Plan. C. I-70 LANDSCAPING PROJECTS: Council may wish to discuss the desired level of CDOT's involvement. D. VILLAGE TRANSPORTATION CENTER: The landscaping contract will be completed in the spring of 1992. The project is currently 90% complete. E. TOWN FLOWERBED PROGRAM: This program will continue with expanded selections of flower varieties and use of perennials and ground covers. The 1992 Public Works operating budget includes $2,000 to replace lost trees throughout the town. F. PARKS, RECREATION PATHS, & TRAILS: The 1991 RETT project budget includes approximately $12,000 for development of the old Ski Museum site. This will be combined with $10,000 from the Miscellaneous Sidewalk Improvement Account to complete the project. The cost of demolishing the old Ski Museum building was approximately $15,000. 14 GOALS, AUGUST 1991 STATUS CURRENT STATUS Phase I Stevens Park was started in 1991 and will be completed in the spring of 1992. The Phase I contract amount is approximately $105,000. The remainder of the park construction is budgeted in 1992 for $123,384 and in 1993 for $135,500. The 1992 RETT project budget included $60,000 for parks, open space, and the Mountain Trail Recreation Plan. This funding will be - rolled over into 1992. The intent of this funding is to begin the preliminary work for a Park and Recreation o System Master Plan.- This Master Plan should set park system and facility standards for the Town, identify needs for park and recreation facilities, and identify land for potential acquisition and development. G. WEED ORDINANCE: The Town is required by Colorado revised statutes to adopt an undesirable plant management plan to be effective January 1, 1992. The purpose of this act is to ensure state-wide control of undesirable weeds. There is a list of mandatory weeds to be controlled along with a provision for local jurisdictions to designate additional plants. Council is required to appoint an advisory committee to develop and recommend an integrated control program by the least environmentally damaging means. The Act does not allow local governments to raise revenue specifically for the implementation of the Act. 15 GOALS AUGUST 1991 STATUS CURRENT STATUS SNOW STORAGE Construction will commence during the construction season (spring, summer, or fall based on work load). All approvals have been received and a lease signed for a seven year period of time. The environmental study was clean. PEOPLE MOVER Grants to do studies have been received The recommendation is to pursue the bus with $13,000 remaining for further study. purchase option and the People Mover is A greater likelihood of redesigning buses out. to make loading and unloading easier is recommended. The estimated cost of the People Mover to replace in-town shuttle routes is $30 to $35 million. Estimated cost to purchase redesigned buses and to make necessary road improvements is $7.5 million. COUNTY-WIDE TRANSPORTATION A county-wide election to be conducted in August of 1991 to raise sales tax for the implementation of this plan was canceled. Council contributed $90,000 to limited east end of County transportation for the winter of 1991 and $110,000 for the winter of 1992. SIGNS Ongoing. Scope of work being considered with special emphasis being concentrated on the 4-way. CEMETERY The final report has been completed. $20,500 has been allocated in 1992 with those moneys to be spent on a conceptual design for the cemetery and a management structure. The site selected is Donovan Park. 16 GOALS AUGUST 1991 STATUS CURRENT STATUS ZONING CODE REVIEW Tom Braun has been hired to conduct the review and the changes have been considered for the past calendar year. The GRFA and site coverage amendments have been completed. Pay- in-lieu parking and SDD's will be addressed during the winter and spring of 1992. An overall summary for proposed zoning code amendments has been completed. WEST MEADOW DRIVE DESIGN The project is now 70% complete and will be incorporated into the streetscape plan to allow for an overall conceptual design. EAST VAIL BIKE PATH Complete. BALD MOUNTAIN ROAD/BOOTH Complete. CREEK STREET IMPROVEMENT PROJECT DOWD JUNCTION BICYCLE PATH The Town of Vail is continuing in its efforts to apply for grant money to add to the $235,000 budgeted for calendar year 1992. UNDERGROUNDING UTILITIES IN EAST A public hearing was held January 7, VAIL 1992, at which time numerous questions were raised in regard to the assessment formula. Staff will continue to research so the district may move forward. 17 GOALS AUGUST 1991 STATUS CURRENT STATUS TOWN COUNCIL PUBLIC RELATIONS Concern regarding the Town Council's relationship with Vail residents was raised on numerous occasions in 1991 by Council members. Initiatives were taken to help improve communication between Council members and local residents, merchants, organizations, and special interest groups, through the following methods: A. A series of five Community Speak Up meetings are to be held three times per year. The first series occurred during November and December, the second series February-March, the third series June-July of 1992. _ _ B. A community newsletter covering various town-related issues and concerns, is to be sent three times/year to all Vail boxholders, street addresses, and business licensees. C. Resident response cards, included in each newsletter and available at Town - offices, will give individuals the opportunity to comment on or ask - questions regarding governmerrt- related issues. - D. Weekly telephone contact between Town Council members and residents will be initiated. Over 200 Vail residents will be targeted and paired - with Town Council members/one resident per Council member per week. Each Council member will proactively call the resident for feedback on local issues. 18 GOALS AUGUST 1991 STATUS CURRENT STATUS E. Regular attendance at meetings of local organizations by Council members will be initiated. Council members have agreed that regular attendance at these meetings is important and a six month calendar has been produced. The goal is to receive feedback and become better aware of the interests of these organizations. These efforts compliment the standard TOV public relations efforts already in place, including press releases, public service announcements, weekly columns in the VAIL TRAIL, Channel' 37 -the TOV information station, Channel 23 coverage, purchased advertising, and guest appearances on local radio and television broadcasts. CHILD CARE Following receipt of the recommendations and the report of the Eagle Valley Child Care Task Force in September of 1990, Council approved a $4,000 contribution for 1991 and a $2,500 contribution for 1992. VAIL ASSOCIATES RELATIONSHIP 2% Fee 4% tax proposal being reviewed by VA and USFS. 19 ~~11 fowo of pail Personal Memo from . Pam Brandmeyer ~A- ~ a ~a y~ a as ~,~o co~~ F ~ ~.II` ~ ' on TC~ inistratl Council - Adm Town hop - etting ~°rks ~oa1 S ebrua~ 18,1892 F ~ ~ t ' ~ ! ~ ` ~ ~ 1 b ~ ~ ~~7 ~ t t i„ ' t / ` ~ f/ ` ~1 1" : ~ ~ ^ +'t 1 ~ + r ~ ~ t 1A ~ , ~~1b ~ a 1/ t 1 ~ r l ` ~ ao y0~ r t ~ ~ ~i'' 1 ~ ! a~ ~ ~ - r a ~ ~ {.Y ~y^ 1 f- ~ ~~Mp~NY 1 T041N OF VA I L, COLORADO TOWN COUNCIL -ADMINISTRATION GOAL - SETTLNG WORKSHOP ' FEBRUARY 18, 1992 1 1 1 1 Copyright: Neu & Company, 1992. All rights reserved. Facture vision Lead~ershi and strate is thinkin p g g 1 funda~l~entals to secure ~ our communit 's future y y COMMUNITY (insert the name of your community) . ' FESTIVAL 2000 What will you celebrate or lament on this occasion? The answer will be dete~u~ined by you, the ' elected and appointed municipal officials in office during the '90s, and the visions, imagination, commitment, and ' boldness you demonstrate as leaders and thinkers. by Cazl H. Neu Jr. he challenges and oppor- national mood of disillusionment state governments and other juris- tunitiesfacingalllocalgov- with government which is seen as dictions such as counties and ' ernments, especially mu- ignoring the concerns of average schools over tax dollars, unfunded nicipalities, are growing in number citizens. A majority of U.S. cities are mandates, legislation restructuring and complexity. Concurrently, experiencing chronic fiscal pro- revenue generation, etc. Problems people (our citizens) are tuning out blems exacerbated by flat (or declin- accelerate; popular support and or rebelling through actions such as ing) economic activity. Munici- resources decline. tax and term limitations. There is a palities are in intense conflict with The only way out of this thicket of conflict and confusion ' _ is strong direction and decisive action based - upon sound thinking, ' ~ perspective, and a full . ) appreciation of options and constraints which must be managed or overcome as we navi- gate our communities through the'90s into the ` ` ~ 21st Century. In a way, governance during the'90s is an "ice- berg" phenomenon. ' What we see "above the water line" are all the challenges and prob- ' • , lems, but the real sub- . ~ stance of the matter is that which lies "below ' - "1 the water line": leader- ; ship and strategic-think- 6 Colorado tit unicipulitic•s/November-December 1991 ' 1. t ' ing processes profound and effee- Reasons for strategic appreciable growth in service levels five enough to shape,thc destiny of thinking/planning and capital expenditure demands. our communities as if they ~~ere Communities arc turning to Cities can no longer fund their ' legacies responsibly and lovinsly strategic thinking and planning for futures relying on past and present crafted by public oflicials and com- one or more of the following revenue generation approaches. munityleaders. reasons: Strategic thinking and planning ' As Thomas A. Cronin, a profes- 1. To shape a better future enables communities to target selec- sor atColorado College, states: through anticipatory management. tively revenue expansion opportu- "We do know that leadership Communitiesbuffeted by the forces nities achievab:e through economic ' isallaboutmakin thin sha en develo ment/redevelo ment, fee- g $ PP of change can see their energies and P P that might not otherwise happen based income, joint venturing, and . and preventing things from hap- , civic entrepreneurism (identifying peningthatordinarilymighthap- Iri today S rapidly and serving precisely defined pen. It is the process of getting changing communities, market segments who desire or will people to work together to pay for tailored services). achieve common goals and problem solving is no Cities can reorient their thinking aspirations. Leadership is a longer su f f icient: toward being consumer-oriented ' process that helps people trans- Problem antici ation service delivery organizations form intentions into positive ac- p capable of defining and meeting tion, visions into reality." and prevention, The only means by which leader- Combined with assertive Precise service demands which can ship as described by Cronin can be be fee based. Tax dollars then be- action for the come the funding mechanism for achieved is through commitment; to "base line" essential services. Too accept accountability for shaping attainment o f specif 1C ' the future of a community Oa1S is absolutel many communities can't expand cam- g ~ y their imaginations enough to break bined with a process capable of ex- _ panding one's mental horizons and essential. out of the tax-limited world that understanding to a level essential to demands they do "more with less:' achievin effective leadershi The Ultimately, this mentality leads to $ P~ resources sapped by jumping from the management of scarcity rather process isstrategicthinking orplan- one crisis to another. Strategic think- than focusing on what can be done ' Wing. I prefer to focus on strategic ing/planning seeks to replace crisis to achieve abundance-generating thinking because it reflects agar- forethought and a blueprint of and combining all of a communit}~s ticularwayofseeingandinteracting desired long-term outcomes that resources commensurate with with information, issues, events, provide the rationale for current po- needs and demands. ' and people while "planning" seems licy, budgeting, and service deliv- 3, Restore a sense of community. to direct attention toward docu- cry/capital expenditures priorities. American cities and towns have ments and specific projects. Two In the rapidly changing conditions atomized into diverse players and working terms that have caught on most communities are ex erien- are: (1) communi -based strate c P interests capable of nullifying each t5' 8~ sing, problem solving is no longer other and any communitywide . planning or (2) citizen-based com- sufficient. Problem anticipation and agenda. This trend has been rein- munity problem solving. In either prevention, combined with asser- forced by a growing sense of futility case, the objective is to expand a tive action for the attainment of spe- many Americans have about their community's--and its governing cific goals, is absolutely essential. ability to influence the direction of body`s ability to address its future in the most effective and 2. To expand resource any 'political institution whether ' knowledgeable ways possible. availability. Less than one-fourth of it be the nation, state, or their imme- all U.S. metropolitan areas are ex- diate local governments. So they periencing appreciable growth drop out and concentrate theirener- ' Car[ H. Neu Jr. is president of Neu and (more than two percent annually). pies to narrowly defined areas of Company, a consultation company for Over 71.5 percent of all cities arc interest-neighborhood,job,ethnic professional devclolnnent services. He now less capable of meeting their group, or self. ' has been a consultant since 1971 artd financial needs than they were even Research data indicate low voter has served as a lecturer on policy fonna- a few years ago, and citizens arc turnout is not due to apathy; rather, tion and strategic leadership for the unsympathetic to appreciable tax citizens see litl(e capacity to influence University of Colorado Graduate increases. The simple truth of the government. Yet, Americans seek in- School of Pu61ic Affairs. This article is '90s is that most cities can expect volvement and empowerment, as copyrighted: Carl H. Neu, Jr, 7997, flat-line revenue performance with (continued on page 8) ' Coto.adoMun;cipulitirs/None?nbcr-Dcccmber199] 2 • ~ ' evidenced in the work place and rich their economic development even the Naisbitt ,ney~ntrend: parti- CittZeYl-based StrateglC programs and combat drug and cipatory democracy. [n the extreme plannin is a deliberate Youth-related crime. Schools need a ' case, this trend can erupt into a bal- ~ strong economic base capable of en- lot-box rebellion as it has in thcCali- effort to reestablish a suring jobs for graduates and fund- fornia "mega-referenda" elections. sense (and practice) O f ing for programs. Citizen-based strategic planning, commlenity that Also, institutional roles change. such as Canon City's Vision process Schools are becoming the focal point (see pages 11-14) or Loveland's assertively encourages for delivery of county and city- Agenda for the '90s, is a deliberate all citizens t0 become sponsored social, child=care, public ' effort to reestablish a sense (and health, counseling and nutrition practice) of community that asser- irivOlved In Settfn the , p g Y g ro rams needed b the various lively encourages all citizens to be- directions their family unit structures in today's come involved in setting the direr- C0mmurilty ZS taking. complex society. Schools no longer lions their community is taking. The serve to educate only; they are the twin mechanisms of collaborative location where service delivery for problem identification/solving and ly most effective use of public dal- many local-government programs consensus-based decision making lars. Citizens see "community" as occurs on a personal basis, irrespec- are used to achieve strategic think- the space in which they carry out live of which jurisdiction is account- ing, arenewed sense of community their daily existence, and they ex- able for the service. based upon direct citizen involve- pert all those jurisdictions of legal Public-private partnerships and ment, and the dispersing of power and political convenience to get privatization are popular and high- back to the grass-roots individual their acts together" in a way that ly effective mechanisms for bring- citizen level and away from so- makes their community, and their ing a community's total resources to ' called interest groups and power daily lives, work in auser-friendly, bear in addressing community brokers. hassle-free way. needs. Strategic thinking and plan- . Governance is of fective only when it To do this, a precise definition of ning provide the comprehension reflects popular support underpinned mission, roles, and relationships is and perspective essential to produc- by asense of community. required to permit each entity to live intergovernmental and public-. 4. Sorting out relationship is- function in a manner that contn- private relationships that yield sues with other governmental and butes to an array of essential gov- beneficial outcomes fora com- private-sector agencies. just as no ernmental services without duplica- munity and its citizens. man is an island;' so is no local gov- lion or waste. Just as the individual 5. Team-building for council ersunent entity. Cities, towns, coun- players on swell-organized sports and staff. Some counals and staffs ' ties, school districts, special dis- team operate in perfect coordina- usestrategicplanningasameansfor tricts, and state government are in- lion and harmony, so too must local improving teamwork by clarifying tertwined and interdependent in government jurisdictions. mission, roles, working relation- ' ways that now need to be sorted out The era of jurisdictional ex- ships, and specific communications and reestablished to reflect the clusivity and redundancy is over. and decision-making approaches to realities of the'90s and the absolute- Cities depend upon schools to en- be followed in defining and ~ im- ' plementing community goals and service delivery levels/plans. Such efforts clarify purpose and focus the energies and priorities of council ' ' and staff toward speafic outcomes to be achieved for the benefit of the MUNIS° Software: community through coordinated ' t action, hard work, and res nsible • Built exclusive) to handle government accounting po • Meets the needs of large and small organizations behavior rather than "touchy-feely" • Installations on micros, minis and mainframes exercises and exploring inner motivations. ' Larry W. Neu 8~ Company, P.C., C.P.As - We understand your management needs. We install and Approaches to strategic support the MUNIS" program. Call us at: ~thinking/planning ' 655 Broadway Sure 400 Denver, CO 303'595.4899 There arc three basic approaches to strategic thinking and planning, ' ~ Colorudo~~tuniiilrulitics/Nuvember-Drcembcrl991 3. 1 ' each of which can be effective if ap- community-based projects and un- A COmtttitment t0 plied appropriately. dertakings. Usually, this process in- t. Council-directed strategic volves: strategic thinking! ' planning.Thisapproachisthemost • A high degree of community planning is an invitation frequently used because it is effi- education as to major issues facing to the community dent and supports the concept of the community and the possible op- ~ representative government-i.e., tions open to it. council, and sta ff t0 ' council accurately reflects and is • Conductingnumerousforums engage in an active knowledgeableabouttheviewsand permitting the participation of ex Ioration and • opinions of the community. The city diverse groups and individuals so p ' council establishes its collective vi- that their views can be presented anticipation of the future Sion for the future of the commu- and appreciated. and the challenges to be pity, develops appropriate strategic • Careful staffing of options for addressed. plans and goals in support of that their presentation back to the com- . vision, and provides staff with im- munity for evaluation and refine- plementation guidelines and ment. budgetarypoliciestofulfilltheplan. • Consultation services to • Establishing the means to ' T tcall this type of strategic facilitate communitywide com- maintain communitywide en- ~ y' munications and decision-making thusiasm in support of the vision thinkingandplanningtakesplaceat and im lementation Tans to a "weekend retreat," usually efforts, achieve that vision. p ' facilitated by a consultant. • Faalitation to ensure that all voices in the community have an • Establishing constructive 2. Council-staff directed equal opportunity to present their liaison andcollaborationwithother strategic planning. This process is views, to be respected and ap- governmental and private entities similar to the one outlined above predated, and to have a role in whose participation in the im- but places a greater emphasis on defining the content of the final plementation of the strategic plan is staff partidpation and council-staff rnmmunity vision and supporting essential. interaction during the visioning and strategic plans. goal-setting process. It provides an ~ Extensive communications so Specific steps for strategic opportunity for council-staff that all parties involved are thinking/planning dialogues and sharing of opinions thoroughly knowledgeable as to There are numerous ways to in- ' not readily available in regular what issues are being considered, itiate and conduct a strategic think- coundl meetings or work sessions. the options available for addressing ing/planning (visioning) process. A Frequently, councils using this ap-, these issues, and all other factors checklist of common steps includes: proach take the proposed strategic that must be taken into considera- 1.Definethereasonsfordoingit plan to the community for public tion for developing ahighly produc- and the processes to be used A input and recommendations. tive vision and- lan that has a realis- e commitment to strategic think- , 3. Community-wide informed- tic probability of achievement. (continued on page 10) consent strategic planning. This ap- proach brings together various leadership elements of the com- ' munity to frame a common vision for the community and a strategic IlJC planthatwillguidetheeffortsofthe En9111@@~In9 COnStJ~tB(1tS community toward the attainment Of that VlslOn. Fort Collins Colorado Springs Vail Longmont This process has been highly (303) 2264955 (719) 598-4107 (303} 476-6340 (303) 67&9584 popular in those instances where a ' ' concerted effort is made to involve all elements of the community, no • Water ResoureeslAugmentation Plans matter how divergent they may bc. • Water Supply and Treatment ' The effort can take as long as a year • Wastewatier Collection and Treatment or more to accomplish, but it does • Drainage and Flood Control offcrcitizensanopportunity to par- • Highways and Bridges ~ ` ticipate directly in defining the • Utility Mapping ' community's future and goals for ' Colorado Municipali ticslNovrmbcr-December 7997 9 4. ing/planning is an invitation to the. low-up staff work to prepare vision, comtntinity, council, and staff to mission, and goal statements that EXteflSlve pi[bllClty IS engage in an active exploration and are communicated throughout the required to keep the com- ' anticipation of the. future and the community as the council's goals challenges to be addressed. [t invol- and priorities. A communitywide ml~nity flclly informed ves developing consensus and the effort requires extensive publicity about the progress being discipline to implement that con- and on-going communications that made toward a ' sensus without falling to the keep the community fully informed temptations of short-term political about the process and progress community vision and expediency acid pressures from being made toward a community implementation plans. . spedfic groups or individuals with vision and implementation plans. agendas inconsistent with the com- 5. Facilitate the process. Strategic to facilitate a communitywide effort munitywide consensus. thinking/planning is an activity and sharing of resources to achieve ' There needs to be a clear under- dissimilar from normal council- the vision? These two concepts are standing of why a strategic think- staff-community activities which distinctly different. ing/planning effort is being under- tend to focus on specific agendas, • Speafic goals.and implemen- takenandthespecificapproachesto problems, and other short-term tation strategies for achieving the ' be followed. routine matters. When a group is to vision. These goals and strategies 2 Define products or benefits. engage in a strategic thinking/plan- provide leadership guidelines for There should be a clear expectation Wing effort, it needs to reorient its developing operating plans, pro- ' among all parties involved as to perspectives and conduct dialogues grams, budgets, etc., so that the what the strategic thinking/plan- that yield enlightenment and in- community's efforts and resources Wing effort should produce for the formed consensus rather than legis- are focused (rather than dispersed) ' community. Possible products in- lative/administrative "win-lose" on achieving the vision. elude a vision statement, a mission decisions. A facilitator can guide the • Specific management action statement, specific goals, and the process, enhance communications, plans (MAPS) that direct de- strategies and operational plans for defuse conflicts, and guide problem partmental activities and link them ' attaining those goals. solving and decision making. to other community and private sec- 3. Define who should be in- 6. Publicize the outcomes. Any for participants as appropriate for volved and who is responsible for strategic thinking/planning effort fulfilling the vision. ' coordinating the effort. The three should yield, at a minimum: • Monitoring and evaluating strategic planning approaches • A thorough understanding of the process and outcomes. Tracking presented earlier involve different forces and issues affecting the com- results is essential to ensure the ef- groups of participants ranging from munity and its future-factors and fort is working and course correc- counalmembers to the entire com- issues to which the genius and lions are made when warranted or munity. Also, the specific roles to be power of leadership must be ap- n~~• given to participants should be plied lest the community's future be Good futures don't just happen. clarified so arguments don't arise. left to happenstance. This activity They are the result of leaders who ' Some participants may have to be frequently is referred to as an "en- define desired futures and invent part of the consensus decisions; vironmental scan;' but it is much the ways to make them become ' others may be in advisory or more. It permits identification of reality by involving people, setting facilitator roles. those "things that might not or- definite goals and priorities, and Coordination is essential, espe- dinarily happen" and "those things creating the backbone to achieve - ciallyforcommunitywideefforts.In which might happen (but may not what the wishbone wants. When such cases, a steering committee to be desired outcomes)" referenced in Celebration 2000 occurs, many com- overseeand orchestrate the process Cronin's definition of leadership. munities will celebrate tangible out- isrecommended. • A vision of what the com- comes and achievements. But the ' 4. Publicize the effort as ap- munity wants to be through con- real cause for celebration should be propriate. A communitywide scious decision making and dedi- the spirit, will, and foresight certain visioning process usually needs a Gated effort. people demonstrated when they ' theme such as "Vision 2000 and • A mission statement par- _ stepped up to the challenge of Beyond," a definite schedule of titularly for the municipal govern- leadership and made your Com- eventsand meetings, a budget, etc. ment. What is the purpose of the munity 2000 happen through A council-directed process may in- municipal government-to provide strategic thinking, planning, and ' volve a wctikend retreat with fol- services and enforce regulations or hard work. 0 ' ]0 Calorudohfuniripalilies/November-Drcembe?1991 5. ~ ~ s r ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ A STRATEGIC PLANNING P~ODEL CONTEXT DEFINITION AND ~ ASSUMPTIONS I ANALYSIS " DEFINE MISSION POSSIBLE AND VALUE FUTURE(S) STATEMENTS SITUATIONAL ANALYSIS STRENGTHS I"IEAKNESSES OPPORTUNITIES GOALS THREATS (OBJECTIVES) MEASUREMENT ACTION STRATEGY OF RESULTS PLANS THE FOUR R's OF GOVERNMENT; WHERE ARE WE? RESPONSIBILITY ~ WHERE DO WE WANT TO GO? HOW WILL WE GET THERE? RESPONSIVENESS RE-ELECTION ~ HOW WILL WE KNOW WE ARE ON/OFF COURSE? REALITY ~ HOW WILL WE HAVE TO ACT/THINK DIFFERENTLY? 6. ,1 r 'N s1 i 1 1 r DEFINING PERFORMANCE DIRECTIONS 1 ~ 7. LOCAL GOVERNMENT . ~ ibrium - ANew Equal ~ . . ' DIRECTION OPERATING ' VISION ENVIRONMENT MetrolRegional ' Dynamics ~ Financial Issues ' CITY Citizen "Ever ies" ~ OR Economics of g ORGANIZATION . « Local Government Enterprise ' New Alliances ROLE OF and Leadership ~ COUNCIL AS ~ Personal "Mandate Coalitions INTEGRATOR and Agenda" As ' an Elected Official Emerging/Changing ~ ~ Community Issues Team Dynamics r (New Comp{exity ~ and Effectiveness & Tenacity) . 1 Manager and Department Heads' Agenda/Priorities . 1 1 8. ' A Time of Assessment and Reexamination 1. Do we have a clear mission statement? t 2. What is our vision for the city? ' 3. What are the emerging trends and issues affecting the city's future? 4. Have we consciously chosen a leadership perspective and ' commitment? S. Have we defined roles and relationships for effective governance and administration of the city? 6. Do we have goals, strategies, and action plans to manage issues effectively? 7. Do we have sufficient momentum and commitment to achieve inspired performance and leadership/management excellence? ' 8. Do we demonstrate a sense of stewardship that clearly accegts accountability for the future of our city? ' 9. Leadership = A Performing Art "We do know that leadership is all about making things happen that might not otherwise happen and preventing things from happening that ordinarily might happen. It is the process of getting people to work together to achieve common goals and aspirations. Leadership is a process that helps people transform intentions into positive action, visions into reality." Thomas A. Cronin ' The Christian Science Monitor February 16, 1990 10. Indic.1tors of Issue Intensity Emcrsins ' Issue rublics' IntcrCSts Existi^g Issue Com any P orAgency Disruptive Issue ' ~ Emerging Existing Disruptive Issue Issue Issue ' • Explicit Feelings • Intensified Feelings • Feelings of Failure • Numerous Options • Outside Involvement • Feelings of Crisis • Phone Calls • Leadership Involvement • Emergence of Hardliners • Letters • Media Coverage • Polarization of People • No Response • Personal Time Loss • loss of Cooperation • Local Involvement • Rumors • Loss of Creativity ' • Informal Discussions • Increased Project Costs • Involvement of High- •Grassroots Awareness • Hardening of Positions Level Managers • Network Awareness • Options Narrowed • Coalitions Formed ' • Legitimate Questions • Demands • Loss of Futures •Uncertainty, Doubt • Exaggeration •Outsidc Intcrvcntion • Increased Anxiety • Ownership of Issues • Legal Intcrvcntion • Project Threat • Polarization of Ideas • Litigation • Coalition (iuilding • Legislation • Appeals to Higher • Loss of Options ' Authority • $ulcmate • Legal Involvement • Legal Costs • Stalled Projects • Loss of Power ' • Media Campaigns • Civil Disobedience • Reallocation of Resources ' • Loss of Credibility • Imposed Sanctions. • Proicct Postponed or - Cancelled Mproduced Dy W u • Co, v1tA Me perwl••lon or Dr. J•i•e• Rent •nd SAM Intcrnat/On~l ' Copyright, SI1M ancern•clon•1, lfgt. All rlgnc• reserved. 1.1 . r r r rr r rr r ~r Ir w a r rr r r THE CHANGE 41AVE "BREAKTHROUGH" Required New Levels of Performance. * * * * * * * * * * * * * * * * * * * * * * * * * * * * ,y * * * ,e * * * « * ~ / new wave TXE / STRATEGIC GAP R / E Current Levels of Performance. f ~ ~ re- disiavery/ ~ sub-critical start ~ (sputter 6 fade) T S PAIN ZONE TIP~E, ENERGY, & RESOURCES pathology CHANGING ON THE FRONT OF THE WAVE AAAMoDEt_: ANTICIPATION (VS sHOCK) * ACTION (vs REACTION) ASSERTION (vs PRESERVATION) 12. A MUNICIPAL GOAL - SETTING PROCESS There are a number of approaches to conducting goal-setting sessions for a community. A particular approach, that has proven to be very popular, is designed to address the following key areas: 1. Definition of a strategic vision for the community which serves as the basis for goal-setting and performance-planning to be used by the governing body and the administrative staff. 2. Identification of major "consensus points" held by~ a majority of the governing body relative to its vision for the future of the community. 3. Identification of critical issues and strategic performance factors which are the "destiny shapers" of the community. These critical issues and stra- tegic performance factors generally represent areas that must be addressed or managed by the governing body and the city's executive team if the community is to attain its vision for the future. 4. Defining specific outcomes that the council wishes to achieve relative to each of the critical issues and strategic performance factors. Once these specific outcomes have been defined, a careful identification needs to be made of all forces and factors working "for" and "against" attainment of these critical outcomes by the governing body, the city administration, and other leadership groups within the community that can contribute to the attainment of these specific outcomes. 5. Establishing specific performance goals that will lead to the attainment of the desired outcome and define general policies, leadership directions, and 1 performance priorities for the city. 6. Establishing revenue and resource allocation poli- 1 cies to ensure the continuous availability of the necessary resources to achieve specific performance goals established by the council. 7. Assigning, if appropriate, specific responsibili- ties that must exist within the council, between council and the administrative staff, within the administrative staff, and between the city and other significant leadership groups throughout the community if each of the goals is to be achieved. ' 13. 8. Establishing for each goal a set of annualized performance objectives and supporting Management Action Plans (MAPS) designed to ensure achievement of community-wide goals in a systematic manner that guides operating programs and priorities for the council and administrative staff. 9. Establishing a goal-management and monitoring process which permits the governing body and admin- istrative staff to have a comprehensive and coordi- nated view of all of its strategic, tactical, and operational efforts. 10. Identification of "breakthrough leadership targets" which reflect significant issues that do not seem 1 to lend themselves to traditional decision-making practices and administrative procedures. These issues, frequently, are really ones that require extraordinary insight and commitment for their resolution. As such, these issues require whole new levels of thinking and perspective 'which must be integrated back into the goal-setting and MAP- ping process. ii. Conducting an initial assessment of the current quality and extent of governing body-administrative staff teamwork essential for goal achievement. Frequently, a community will have an outstanding set of goals and supporting objectives. However, ' difficulties may arise in the implementation phases due to factors reflecting the level and quality of teamwork existing between groups that must work in a collaborative manner, 12. Establishing communications processes through which the critical issues, specific performance outcomes, goals, and MAPS are communicated throughout the community so that all leadership groups and citi- zens have a full appreciation for the direction the I city is taking and the role they have in the a- chievement of its goals,. 1 - 14. MUNICIPAL LEADERSHIP STEPS i 1, y.I$ION - MISSION Z, KEY PERFORMANCE ISSUES - AREAS 3, GOALS PANS (P~1APS) 4. MANAGEMENT ACTION L S, REVENUE POLICIES MONITORING & EVALUATION PROCEDURES, i i I I t L 1 1 15. ~ ~ ~ ~ r ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ VISION P E I MISSION & ~LEADERSI~IP / OPERATING PHILOSOPHY R S KEY STRATEGIC ISSUES & CRITICAL OUTCOMES P E I GOALS & .STRATEGIES C T ( REVENUE 1 RESOURCE POLICIES I V ~ MANAGEP•1ENT ACTION PLANS (MAPS) J E ~ ~ i ~ i i S' YEAR I YEAR 2 YEAR 3 ` YEAR y~ ~ YEAR 5~ I ( ANNUALIZED OPERATING PLANS & BUDGETS, ETC. ) .L .l- ~ , .1. FEEDBACK R, EVALUATION PROCEDURES a TIM E 16. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ~ FORCE FIELD ANALYSIS r Zssue: Critical Outcomes: Factors "for" ~ ,r ~ Factors "against" t 18. STRAT£GZC GOALS 1. A Mission Statement A mission statement precisely identifies an organization's primary purpose. It seeks to specify what is done and for whom. Examples of mission statements are: "It is the mission of the city to strengthen our revenue base to deliver a level of municipal ser- vices to improve the quality of life for the people of the city . " or t "The mission of the city is to provide bold, inno- vative leadership for a dynamic city, representing the values of the community. We will improve the enjoyment of life for all by providing a broad range of services in an efficient and fiscally responsible manner." or "The mission of County is to provide mandated and necessary services and facilities in a quality, cost-effective manner. 2. Criteria for Goal Statements a. Goals are written statements of general leadership directions, policies, and priorities which serve to guide the council/board and staff decision-making and resource- allocation processes. b. Goals should be written from a perspective of three to five years. c. Goals should relate to the council's/board's vision for the organization/community and produce a major impact or outcome(s) yielding future benefits and not just reac- tions to crises. _ d. Goals should deal with factors that are "above and beyond" routine operations or service delivery. 1 19. e There must be a reasonable probability of attainment. f. Goals statements should be clear; focused, and precise. ' q. .Each goals statement should begin with an action word (verb) unless the focus is on critical outcomes that must 1 be achieved. 1 i 1 1 r 20. i 1 1 ' -LEADERSHIP VISION ' L GOALS ' TACTICAL STRATEGIC ROUTINE LONG-TERN I PRIORITIES ISSUES & PRIORITIES ' ANNUALIZED OPERATING ' PLANS FISCAL YEAR OPERATING PLANS & BUDGET 1 1 21. 1 ~ woaks.E=r 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ~ z=. ~V orb . L t t t 1 L 23. . 1 5800 85th AVENUE NORTH BROOKLYN PARK. MN.55443 /612 424 8000 t MEMORANDUM 1 . July 11, 1990 CITY OF BR00}4LYN PAR}4 TO WHOM IT MAY CONCERN FROM: Craig R. Rapp, City Manager SUBJECT: 1990-1991 Goals and Objectives Attached are the goals as identified by the City Council. City staff and City Councilmembers have gone through the process of developing the action plans and have prioritized the goals in the following manner: PRIORITY GOAL DESCRIPTION 1 Social, Cultural, Aesthetic 2 Public Facilities Plan 3 Highway 610 Started by 1997 4 Integrated MIS 5 5-Year Financial Plan ' 6 Excellence in Service 7 Coord. Dev./Redev./External Marketing $ Communication Strategy Each of the above goals are dependent on each other and on the budget. Some goals are in tt~e process now; others will not happen unless we make them happen. Accomplishing the "high" rankings will enhance and also help accomplish certain other goals with a lower ranking. Five-year Financial Plan and Excellence in Service were both given a 5 priority rating by ' staff, but for the sake of avoiding confusion, I have listed them as Priority 5 and 6. Rankings are based on the information we t~<~vc today, and the purpose is to help in the management of time ~~nd resources. _ 24. - LTURAL AESTHETIC GOAL NO. 1 SOCIAL, CU , The City will assume a leadership role in cooperation with other agencies to develop programs which will improve the physical, social, and cultural environment of the City. i STRATEGY: Through coordinating the efforts of various groups, establish community standards and programs for the physical, social, and cultural environments. REVENUE/RESOURCE POLICY: The resources currently budgeted by the City are adequate to pursue this goal. MANAGEMENT ACTION PLAN - 1990 ' PERFORMANCE OBJECTIVES: 1. Staff will define maintenance/aesthetic standards for all property classes by December 31, 1990. 2. The City Council shall establish a Task Force of relevant . agencies for the purpose of evaluating the City's social and cultural environment. ACTION STEPS: 1. Community Development and Legal Departments shall review ordinances affecting property maintenance and ,aesthetics by year end. 2. Communit Develo ment and Le al De artments shall draft Y P g P recommendations for ordinance and policy changes related to property maintenance and aesthetics by year end. 3. Identify all relevant groups to be included in pursuit of ' goal. 4. Staff develop a community beautification program by year end, including recommendations on incentives and a public relations component. 5. Assign staff to organize a City-hosted event initiating the steering committee effort to study/evaluate the social and cultural environment needs. 7. Set up a cooperative effort with property managers to establish standards specifically for multi-family housing. 25. 8. Review the need to establish neighborhood action groups to ' work with the Police Department to address crime in neighborhoods. STAFF RESPONSIBILITIES: Physical Social Cultural Primary: Community Dev. Dir. Don Davis/ Dennis Palm Dennis Palm Approving Authority: City Manager City Manager City Manager Consultation: Relevant Depts. Comm. Dev. Outside Outside Agencies Agencies BUDGET; This effort can be undertaken within current budget limitations. VALUATION CRITERIA E ' PHYSICAL ENVIRONMENT: 1. Monitoring of citizen comments 2. Regular surveys of property condition ' 3. Regular assessment of Council satisfaction .SOCIAL & CULTURAL: 1. Community survey results 2. Analysis of police calls - by type and location 3. Analysis of requests for City service - City and outside agencies 4. Monitor social service agency perceptions/reactions 5. Assess City Council satisfaction 26. 1991 PERFORMANCE OBJECTIVES ' 1. Adopt ordinance and policy changes consistent with defined maintenance aesthetic standards. 1 2. Implement plan to improve condition of identified "high need" areas. ' 3. Implement a community beautification program as proposed by staff and adopted by City Council. 4. Implement recommendations of task forces on improvements to' ' the social and cultural environment of the City. ' ACTION STEPS: 1. Prepare staff reports and hold meetings with City Council to ' review and consider ordinance/policy changes to maintenance/ aesthetic standards. ' 2. Hold Council review sessions with task forces to determine appropriate plans for implementation. 3. Assign staff to coordinate each plan/program to be ' implemented. 4. Hold public information meeting to inform community about ' proposals. 5. Prepare budgets%funding requests to support proposed new programs. . STAFF RESPONSIBILITIES: 1 Same as 1990 . ' BUDGET: Depends on 1990 recommendations; probably additional funds beyond ' 1991 budget will be needed. EVALUATION CRITERIA: Same as 1990; however, specific criteria should be developed for each new program/plan recommended. _ 27. 1 GOAL NO. 2 -PUBLIC FACILITIES PLAN Develo a lan to maintain and replace all public facilities and P P equipment such as: roads, creeks, parks, structures ' STRAT~G,Y: ' To analyze current facilities and provide funding and time expectations for the repair and replacement of public facilities in Brooklyn Park. REVENUE/RESOURCE POLICY NECESSARY TO SUPPORT GOAL ACHIEVEMENT: 1990 - Normal budget appropriation. ' 1991 - Increased budget appropriation for plan development and study. MANAGEMENT ACTION PLAN - 1990 ' PERFORMANCE OBJECTIVES: ' 1. Develop standardized format and procedures to report on condition and needs for all classes of facilities and equipment. 2. Departments will begin the analysis of public facilities and equipment. t 3. Determine what components of the analysis may require outside consultant. ACTION STEPS: 1. Reporting format developed. ' 2. Plan components needing outside consultant identified. 3. Specifications for outside consultant work finished. 4. Timelines for presentation of the preliminary and finished reports to the City Manager established. ' STAFF RESPONSIBILITIES: Primary: Public Works Director, coordinating with other ' department directors. Approving Authority: City Manager/City Council. ' Consultation: Other departments. 28. 1 ' ~UDG~: Within current budget appropriation. EVALUATION CRITERIA: None. MANAGEMENT ACTION PLAN - 1991 ' PERFORMANCE OBJECTIVES: ' 1. Complete the facility and equipment study and report to the City Manager. 2. Provide funding alternatives to the City Council for all ' structure and equipment maintenance and replacement. . 3. Identify and prioritize needs (establish five-year goals). 4. City Council approval of the plan. 5. Plan public awareness program. ' - public hearings - neighborhood meetings - media - other as appropriate ACTION STEPS: 1. Outside consultants hired. 2. Preliminary and finished reports completed on time. 3. All funding resources identified. ' 4. Necessary City Council approvals received. 5. Public awareness program used and evaluated. 6. Plan starts. STAFF RESPONSIBILITIES: .Same as 1990. BUDGET: Increased bud et a ro riation of 5 0 . 9 PP P $ 0,0 0 Plan development and study will require increased appropriations. ' EVALUATION CRITERIA: ' None. HJR/zao t 29. GOAL NO. 3 - HIGHWAY 610 STARTED BY 1997 Highway 610 funded and construction started by 1997. STRATEGY(: _ To influence federal, state, county, and municipalities to ' provide the necessary funding and construction approvals over the next seven year period for the completion of Highway 610. REVENUE/RESOURCE POLICY NECESSARY TO SUPPORT GOAL ACHIEVEMENT: State: federal primary route funds federal secondary route funds ' private/public toll road revenues County: road and bridge funds Metro Council: Right-of-Way Acquisition funds City: Chapter 429; Benefits Assessed Against Property Developer: Provide for developer dedication contribution ' MANAGEMENT ACTION PLAN - 1990 PERFORMANCE OBJECTIVES: . None. ACTION STEPS: 1. Council approval of Plan. 2. Designate City staff to oversee project. 3. EIS funded and completed. ' 4. Formation of a Task Force and agreement with affected communities. Goals of the Task Force: = Develop a budget. - Hire lobbyist. Secure funding resources for next development step after EIS completion.. 5. Develop media strategy. - Task Force - City 6. Establish work assignments and responsibilities for: - Community Development Director - Economic Development Director - City Engineer 30. S,S,AFF g~SPONSIBILITIE~: Primary: City Engineer Approving Authority: City Manager/City Council Consultation: Assistant to the City Manager/Intergovernmental Relations and Director of Finance/Administrative Services Designate City team to provide support and ' direction to City's efforts. BUDGET $5,000. New funds needed for: - Task Force budget. - media strategy. EVALUATION CRITERIA: 1. The roles of City staff are defined and a team is established to pursue 1991 objectives. 2. Cooperative agreement reached with other effected communities. MANAGEMENT ACTION PLAN - 1991 ' PERFORMANCE OBJECTIVES: None. ACTION STEPS: 1. Begin right-of-way acquisition. 2. Complete funding strategy. 3. Provide timeline for funding approval and completion at all levels. ' STAFF RESPONSIBILITIES: Same as 1990. BUDGET: $10,000. For: Task Force budget. _ ' Media: internal. 31. L ~VALUAT ON CRITERIA: 1. Function of Task Force established. 2. Media strategy developed. 3. EIS completed. 4. Funding resources targeted. • 5. Lobbyist hired. HJR/zao ~ • • i 1 1 1 32. GOAL NO. 4 -INTEGRATED MIS 1 AL NO. GO Develop and implement an integrated management information system for the City. 1 STRATEGY: Through the use of an employee steering committee, assess management information needs within the City and develop an action plan for implementation. REVENUE/RESOURCE POLICY: 1. .Staying with LOGIS: Very little impact on the current budget. Minimum change from status quo. 2. Leaving Logis: If this option is chosen it may require. additional capital investment for reallocation of present revenue sources, particularly in the early years of implementation. If this option is chosen, funding sources not normally used by the City for capital purchases may have to be investigated, such as lease purchase or bonding. . MANAGEMENT ACTION PLAN - 1990 PERFORMANCE OBJECTIVES: 1. Complete needs assessment and make recommendation by November 15, 1990. ACTION STEPS: 1. Hire MIS Coordinator. r 2. Form Steering Committee. 3. Review existing computerized systems. 4. Review manual systems. 5. Assess and prioritize needs. 6. Review hardware and software. .7. Make recommendations. 8. Implementation of recommendations. 33. PRIMARY RESPONSIBILITIES: Primary: MZS Coordinator , Approving Authority: Finance Director and City Manager Consultation: Steering Committee and other departments. BUDGET: Funded for 1990. EVALUATION CRITERIA: 1. Consensus of all departments that general MIS needs have been met. 2. Recommendations shall balance future costs against gains in productivity. 3. Input of specialists in this field in some form. MANAGEMENT ACTION PLAN - 1991. ' PERFORMANCE OBJECTIVES: 1. Implement recommendations of Steering Committee by end of year. ACTION STEPS: 1. To be developed by Steering Committee in conjunction with program recommendations. STAFF RESPONSIBILITIES: Same as 1990. BUDGET: 1. Potential increase in funding needed for capital investment if system changes. 2. Additional costs for parallel operation for final quarter of 1991 is system changes. 3. Ongoing long-term costs of implementing committee recommendations. ' EVALUATION CRITERIA: 1. Organizational acceptance and use of system as recommended by Steering Committee. AJE/zao 34. GOAL NO. 5 - 5-YEAR FINANCIAL PLAN Develop a comprehensive five-year financial plan for all city funds . STRATEGY: Through the development of an integrated spread sheet detailing five year revenue and expenditure plans for all city funds, inform and educate the community about the importance of matching resources with needs. REVENUE/RESOURCE POLICY: Can accomplish this with currently budgeted resources. MANAGEMENT ACTION PLAN - 1990 PERFORMANCE OBJECTIVE: 1. Complete five year budgeting process for all funds by year end. 2. Begin to create a model which predicts fiscal ramifications of alternate courses of action.' ACTION STEPS: 1. Finance Department establishes parameters and insures compliance with budget process. 2. Finance Department begins the process of developing interactive spread sheet model. STAFF RESPONSIBILITIES: Primary: Finance Director Approving authority: City Manager Consultation: Other departments and City Council •BUDGET. N/A EVALUATION CRITERIA: ' 1. Proper completion of budget process within stated time lines. L 35. MANAGEMENT ACTION PLAN - 1991 PERFORMANCE OBJECTIVES: 1. Completion of spread sheet model. 2. Council and staff education and appreciation of proper allocation of resources to areas of the greatest need. 3. Create a budget policy which clearly establishes the principles of resource allocation in Brooklyn Park. ACTION STEPS: 1. Finance completes spread sheet model for all funds and prepares budget policy concerning resource allocation. 2. Conduct work sessions with the Council and the staff on goal setting and resource allocation. STAFF RESPONSIBILITIES: Same as 1990. BUDGET: N/A . EVALUATION CRITERIA: 1. Council and staff adhere to guidelines developed during the process. 2. Consensus by Council and staff that process works. 1 1 1 36. t - LENCE IN SERVICE GOAL NO. 6 EXCEL e staff on the skills To create a program to educate and evaluat of providing excellence in service. STRATEGY: Develop a policy statement and a program that is endorsed by the City Council and staff that recognizes the importance of excellence in service. REVENUE/RESOURCE POLICY NECESSARY TO SUPPORT GOAL ACHIEVEMENT: Normal budget appropriation. MANAGEMENT ACTION PLAN - 1990 PERFORMANCE OBJECTIVES: 1. Develop a policy and program for Excellence in Service. ACTION STEPS: 1. Analyze fields of service. 2. Develop policy statement. 3. Develop training programs. -short term (start-up) -long term. 4. Train top management. _ 5. Develop service evaluation. (feedback) 6. Provide for .recognition program to reward Excellence in Service. STAFF RESPONSIBILITIES: Primary: Personnel Director and Director of Parks & Recreation .Approving Authority: City Manager Consultation: Other Departments and City Council BUDGET. $1,000 t 37. ~VALUA'~Q~ CRITERIA: 1. Customer Service Survey 2. Employee evaluation. - MANAGEMENT ACTION PLAN 1991 PERFORMANCE OBJECTIVES: 1. Implement Excellence in Service program. ACTION STEPS: 1. Develop quality performance. criteria. 2. Train front line supervisors. 3. Train employees. -internal resources -external resources 4. Develop Customer Service Information Center. STAFF RESPONSIBILITIES: Same as 1990. BUDGET: ' $10,000 EVALUATION CRITERIA: Same as 1990. HJR/zao i t l 38. GOAL NO. 7 - COORD. DEV./REDEV./EXTERNAL MARKETING To develop an economic development process and a housing redevelopment process that coordinate the EDA and the HRA activities to enhance the City's tax base. ~.T~TEGY To restructure the EDA and the HRA utilizing the economic development talents of community leaders with the common goals of promoting the community, increasing the tax base, and retaining City Council oversight and control. REVENUEtRESOURCE POLICY NECESSARY TO SUPPORT GOAL ACHIEVEMENT: EDA - Available Tax Increment Financing and Program Income. HRA - Minimal general ad valorem tax levy - CDBG funds and program income. MANAGEMENT ACTION PLAN - 1990 ' PERFORMANCE OBJECTIVES: Economic Development Authority, 1: Hire Economic Development Director. 2. Develop a plan to realign EDA and coordinate with HRA to maximize community talents in economic and redevelopment fields while retaining City Council oversight. 3. Develop a Marketing Advisory Board program to enhance the tax base and image of the community. L Housing and Redevelopment Authority 1. Provide for the development of Lakeland Avenue. 2. Create a development strategy for 85th and Xerxes Avenues in cooperation with EDA and City development policies. ' ACTION STEPS: Economic Development Authority 1. Recruit and hire an Economic Development Director. 2. Draft and gain City Council approval of action plan for coordination of two agencies and realignment of EDA. 3. Draft and gain City Council approval for City Marketing t Plan. 39. Housing and Redevelopment Authority 1. Acquire balance of properties in Lakeland area. 2. Invite development proposals for 85th and Xerxes Avenues. STAFF RESPONSIBILITIES: Primary: EDA and HRA Executive Directors Approving Authority: City Council, EDA and HRA, City Manager, and Community Development Director Consultation: Other departments, Marketing Advisory Board, outside agencies, local businesses, and consultants. BUDGET: Both agencies funded. EVALUATION CRITERIA: 1. Did the City Council retain sufficient oversight controls so they are satisfied with coordination of EDA and HRA and the City Council review process? 2. Are the agencies working together toward common goals? 3: What is. the success ratio of the EDA and HRA and their programs, and are they satisfying City Council objectives? 4. Is the community satisfied with the activities and progress • of the EDA and HRA programs? 5. Can the functions of the a encies enerate su g g fficient revenues and/or grants to carry out the programs? MANAGEMENT ACTION PLAN - 1991 ' PERFORMANCE OBJECTIVES: Economic Development Authority 1. Implement EDA realignment plan. 2. Implement the Marketing Advisory Board program. r~ 40. . Housinq and, gedevelopment Authority 1 1. Continue Lakeland Avenue and Xerxes Avenue projects. 2. Study. individual site redevelopment. ACTION STEPS: Economic Development Authority 1. Implement realignment and marketing plans. ' Housinq and Redevelopment Authority 1. Invite development proposals for Lakeland Avenue area. 2. Develop plan and process to handle industrial site redevelopment. 3. Select developer and begin process of redevelopment at 85th and Xerxes Avenues. ' STAFF RESPONSIBILITIES: . Same as 1990. BUDGET: Need reauthorization as part of normal budget process, plus program revenues. New funds needed for Marketing Advisory Board. EVALUATION CRITERIA: i Same as 1990. - HJR zap i 1 1 i ' 41. GOAL NO. 8 -COMMUNICATION STRATEGY Develop and implement a communication strategy to increase community pride, enhance the positive image of City services, and encourage active citizen participation in Brooklyn Park activities. STRATEGY: Through the use of all media resources available to the City, and by developing staff expertise enhance the positive image of. City programs and services for all customers. REVENUE/RESOURCE POLICY: 1. The rimar fundin source will be property tax; however, P Y g fees and charges, government grants, charitable ' contributions, donations, and advertising revenues are to be encouraged. 2. Budget funding to implement program. MANAGEMENT ACTION PLAN = 1990 PERFORMANCE OBJECTIVES: 1. Implement City's comprehensive communications plan focusing on recommendations of 1989 Communications Audit Survey. 2. Through the use of public safety and crime prevention ' programs; i.e., health, fire, operation identification, drug education and awareness, encourage residents and the business community to participate in ongoing education programs. ACTION STEPS: 1. Implement Comprehensive Communications Plan with Council. 2: Revise plan as directed. 3. Determine newspaper/newsletter priority. 1 4. Adjust 1990 communication budget to reflect established priority. 1 42. STAFF ~SPONSIBII.,~IES: Primary: Intergovernmental Relations Director Approving Authority: City Manager Consultation: Finance Director, Cable T.V. Program, other departments, and other cities. BUDGET: This can be accommodated out of current budget. . EVALUATION CRITERIA: 1. Number of favorable regional/national news stories on Brooklyn Park and/or damage control/ 2. Number of positive 424-TALK line comments. MANAGEMENT ACTION PLAN = 1991 ' PERFORMANCE OBJECTIVES: 1. Seek maximum involvement of civic organizations, neighborhood groups, institutions, and businesses in the creation, development and use of City programs. 2. Highlight a positive City image in the media through regularly featuring major City activities and programs. ' 3. Wherever possible, the City should provide information and solicit free dissemination of positive City news in the following media sources: weekly newspaper specialized brochures quarterly newsletters speaker's bureau cable T.V. news releases commercial T.V. articles written for others community handbook newsletters (Chamber/Commerce) annual reports sign boards homestead cards school info bulletins Park brochures hand bills ACTION STEPS: 1. Review and update communication media and methods. L 2. Su rvey community attitudes. I 43. STAFF RESPONSIBILITIES: Same as 1990. BUDGF~: An additional $7,000 for survey plus extra $5,200 for part-time freelance writer. EVALUATION CRITERIA 1. Results of Community Attitude Survey 2. Positive regional press ' 44. TABLE 1 Potential Theater Use PERFORMANCE REHEARSAL SET-UP AVERAGE TOTAL USER DAYS DAYS DAYS ATTENDANCE AUDIENCE Bravol Colorado 12 0 2 1100 13200 Vail Valley Foundation 2 2 0 1000 2000 Friends of the Dance 20 10 0 425 8500 Vail Community Theater 20 7 0 285 5700 Vail Academy of Dance 1 1 0 500 500 Eagle County School System 12 0 0 600 7200 School System Musical Production 6 6 ~ 1 500 3000 Vail Mountain School 1 0 0 300 300 C& S Productions 2 0 0 1000 2000 Other Professional Productions 4 0 0 1000 4000 Conference Use 4 0 2 1000 4000 Other Uses 10 2 ' 2 900 9000 Total 94 28 7 8610 59400 Executive Summary Analysis of the Feasibility of Development of a Cultural Arts & Conference Facility for the Vail Valley Study Pe.:......ed By Jones & Phillips Associates, Inc. Theatrical Consultation and Design February 1992 } In June 1990, Jones & Phillips Associates, Inc. was retained by the Vail Valley Cultural Arts Steering Committee and the Town of Vail to analyze the feasibility of developing a cultural arts /conference facility in the Valley. Their findings revealed a need in the Vail Valley for a suitable facility to accommodate performing and visual arts, conferences, meetings, and educational programs. The findings revealed the necessity of such a facility for Van's continued non-recreational competitiveness, and showed wide ranging year around opportunities associated with this type of offering. Jones & Phillips utilized numerous research techniques and sources in their study, including interviews conducted with Vail area residents and organizations, questionnaires sent to potential facilityusers, and surveys of lodging providers in Vail and other Colorado resorts. Several previous studies were incorporated, including "Phase One Analysis: Market Support for a Vail Congress Hall" prepared by Economics Research Associates (1987), "The Meetings Market" prepared biennially for Meetings & Convention Magazine, and other current meeting oriented literature. Jones & Phillips researched existing facilities in the Vail area capable of accommodating conferences and/or performing and visual arts functions, as well as unmet needs relating to these arenas. Trends in conference and meetings markets were analyzed, and current convention market activity was detailed at the regional, state, and national levels. Projections were made with regard to potential future cultural arts, conference, and meeting needs from a broad national perspective, as well as from a local viewpoint. The study concludes that the Vail Valley currently suffers from serious facility limitations for the performing arts and that locations for visual arts activities are virtually non-existent. The lack of current provisions for large groups in the Vail Valley render the community unable to compete both, regionally and nationally in the growing conference and meetings market. An additional finding on the part of Jones & Phillips was that Vail Valley educators will face a projected doubling of enrollment by the year 2001, and will be unable, within the limits of current facilities, to provide theatrical study, integrated electronics, long distance learning, and other innovative educational programs for Vail Valley students. Based upon the inadequacy of meeting and cultural arts facilities, and projected needs in these areas, a schematic design was developed which incorporates conference/convention space, meeting rooms, pre-function areas, a 1200 seat theater, visual arts accommodations, kitchen and food service facilities, storage areas, and more. Based on this schematic design, operating costs and revenues were determined. A facility which incorporates 1 ~ the above listed elements is believed to serve the diverse needs of the Vail Valley, while simultaneously offering the greatest potential to generate adequate revenues to meet expenses. In summary, the Jones & Phillips study reveals a pressing need for a facility which would provide for performing and visual arts, conferences/meetings, and educational functions. The study indicates that such a facility would boldly enhance the offerings which are currently available and would be utilized most heavily for conferences during months which hotels and lodges typically experience low booking levels, namely May through September. The study shows that an arts and conference facility of this nature could substantially assist in the region's ongoing effort to develop annual hotel/lodge occupancy and a year around economy. The Jones & Phillips study concluded that Vail has a unique opportunity to provide a facility for the community that would enhance the quality of life in the Vail Valley for resident and guest alike. Given Van's international reputation and convenient I-?0 and airport access, a facility in Vail would compete fairly for meeting business with other such facilities in the state and nation. When the statistics associated with the demand for such a facility and the need to increase local economic stability are considered, development of a cultural arts and conference facility would seem a logical next step for Vail's Valleywide community. The following is an overview of findings within the Jones & Phillips study. a 2 ~ MEETINGS AND CONVENTIONS MARKET * The meetings and conventions market consists of two principal segments: (1) off-premises meetings held by corporate groups and (2) conventions and others meetings held by associations. * The volume of meetings and conventions increased 50% between 1981 and 1989, with an average annual growth rate. of 5.5°~6 This growth occurred primarily in the corporate market, which constitutes 85% of all events. * Individual attendance at conventions and meetings increased by 44.6°~ during the same nine year period. Association Meetings * Resort locations were selected for 38% of all association meetings in 1981, with an increase to 42% in 1989. * Education seminars represent a large portion of association meetings and have increased as a percent of total association meetings from 25% in 1976, to 34% in 1985, to over 40% in 1989. * California and Florida are top meeting locations for associations; however, there is anticipation that Colorado meeting preference will increase with the opening of the Denver Convention Center. * In 1989, the most important factors in selection of an association meeting site were (1) availability of hotels and/or other facilities suitable for large meetings, and (2) ease in transporting attendees to and from location. * Top association meeting activity occurs in April, May, June and July, representing 51 percent of all activity. October represents an additional 11 percent of meeting activity. Subsequently, better than half of the meetings occur during months when Vail experiences the lowest - occupancy levels. * The number of association meetings occurring during the three months of November, December and January represents only 10% of the entire market. 3 Corporate Meetings * The use of conference centers for corporate meetings has remained relatively constant from 1981 through 1989. * Top factors in corporate meeting site selection include (1) quality of food service, and (2) number, size, and quality of meeting rooms. * Image, climate, and recreational opportunities are the most important factors for corporate incentive meetings, given the nature of these events as performance awards. Convention Market Activity in the Rocky Mountain Region * Based on questionnaires sent to 3,000 Rocky Mountain region meeting planners, there are currently 15,722 annual meetings that could potentially be held in the Rocky Mountain area. * Of those meeting planners that were "very likely" to consider Vail, a primary market exists representing 689 annual meetings (51 with 'an excess of 500 attendees). Potential size of this primary market was 317,393 room nights. * Of those meeting planners that do not currently meet in mountain resorts, a secondary market exists. 134 of these meetings had more than 500 delegates, with a potential of 835,481 rooms nights. * Vail could likely capture 9.8% of the total Rocky Mountain meeting market, or 113,094 room nights. * According to the meeting planners surveyed, a significant negative for Vail is the inability to provide adequate facilities to handle large groups. Only two facilities in the Vail Valley can seat a banquet for more than 750 people; the largest hotel properties can hold no more than 300. THE COMPETITIVE MARKET OF CONFERENCE FACILITIES A very significant part of Van's ability to attract group business is the competition at the regional, state, and national levels. During the last decade, the market for convention, exhibition, and meeting activity has been characterized by a dramatic increase in competition. 4 * In 1980, there were 222 facilities throughout the nation, offering a total of 25,133,000 square feet of exhibit space. By 1987, there were 305 facilities, offering over 42,000,000 square feet of exhibit space. This is a 37% increase in the number of facilities and a 68% increase in the amount of exhibit space. * There has been a dramatic surge in development of conference and meeting facilities in resort locations in virtually every region. * As resort operations experience the economic pressures of seasonality and respond with the need for bolstering low and off-season occupancy, the group market has become the logical target for supporting growth. Colorado Convention and Meeting Competition * Most of the resort meeting facilities in Colorado have been developed . since 1980 in direct response to the importance of group meetings to acceptable levels of occupancy. * Sno.~~..ass had 291isted meeting places in 1983. Now it has over 40. * Steamboat had 231isted meeting places in 1983. Now it has over 43. * Keystone, Colorado Springs, Breckenridge, Silvercreek, and Durango have conference, theater, banquet, and classroom space as well. * Despite Aspen's international reputation, the Sno ~~...ass meeting center has been unsuccessful in attracting significant numbers of large conventions or meetings prlmarlly due to the distance from a major airport. * Given Van's international reputation and convenient I-70 and airport access, a facility in Vail would compete fairly for meeting business with other such facilities in Colorado. The study cites Vail's favorable reputation as a winter resort destination and strong recognition as a possible meeting site. 5 CURRENT JONES & PHILLIPS FORECAST OF CONFERENCE FACILITY f UTILIZATION * Eight new events at an average group size of 950, with an average of four days stay each, is a realistic expectation. This would generate 30,400 room~nights in Vail. * Vail could potentially attract as many as 15 conference events with an average group size of 950 for total new room nights of 57,000. * This new activity will be centered in the months of June, July, and October, followed closely by September and August. * The above figures are based on meetings of over 400 and less than 2500 attendees. Van's existing hotels are seen as adequately serving the market of meetings consisting of less than 400 attendees. * Properly marketed, Vail could establish a unique niche in the smaller meeting market to the benefit of both the properties without meeting space and the convention center, and could do this without harming the marketing for properties with existing meeting space. * Aside from the ski season, Vail has an adequate room base to accommodate increased group business. * Discussions with the Vail Resort Association indicate that the group meeting segment has become increasingly important to Vail area hoteliers. This segment represents the strongest opportunity to build annual occupancy. Potential Year Around Uses * It is envisioned that some of the users of the meeting facility will need exhibit space which could potentially be provided by Dobson Arena. Conversely, some of the performing events currently held in Dobson could move to the new performing facility. * In 1990, nine non-ice events were scheduled in Dobson Arena. It is anticipated that six to eight of these would move to a better suited performing facility. This allows Dobson more emphasis on recreational opportunities. 6 ~ ' Bravo! Colorado has indicated that, if a suitable indoor space were available, it would be interested in producing a winter concert series. This series would probably consist of four to five concerts of large chamber ensembles. ' Total utilization of the performing arts facility would be 94 event days and 35 rehearsal/setup days. The following further sturunarizes the findings of Jones & Phillips Associates, Inc. with regard to the feasibility of development of a cultural arts and conference facility for the Vail Valley. Existing Facilities in the Vail Valley Cultural Facilities The Vail Valley has a number of spaces that are used by cultural and performing arts. Although some of these spaces are quite interesting, they all suffer from some serious limitations for the performing arts. Spaces for visual arts activities are virtually non-existent in the Vail Valley. The Community Room at the library has been used as a display space for visual art but security and lighting is a problem. There are no suitable spaces for studio classes in the various visual arts. The performing arts have a few more options than the visual arts but their choices are also severely hampered by the existing facilities. The largest facility for the performing arts is the Gerald R. Ford Amphitheater, seating 900 in seats and 1,200 on the lawn. This outdoor facility has a marvelous ambience, but is only useable 14 weeks out of the year. The concrete stage is not suitable for dance, wing and fly space is non-existent, noise from other sources interferes, and the potential for inclement weather seriously limits the events that can use this facility. The Cascade Theater seats 291 people in a continental seating. arrangement. this charming facility has very limited wing space, no fly house, and no orchestra pit. The most serious limitation of this facility, however, is its use as a movie house, making it difficult to schedule other events. Battle Mountain High School is located in Eagle-Vail and is a typical high school auditorium. The facility seats 513 but lacks both a fly system and an orchestra pit. The acoustical character of the facility is not designed to support musical events as there is a severe flutter echo across the stage and slap back from the • ? rear wall. None-the-less, this is the facility most often booked by user groups because there is nothing any better. The only arena type facility in the Valley is Dobson Ice Arena This facility, as the name implies, was built to support ice activities. It will seat 833 in fixed bench type seating, and an additional 1,66? seats may be set up on the floor. In 1990, 9 non-ice special events were held in Dobson. These events included several concerts, a volleyball tournament, and several conferences. If more suitable facilities were available, we would anticipate that most of these events would move to another location. Although this would reduce revenue to Dobson, it would increase the amount of time available for skating and hockey. The community seems to feel strongly that Dobson should be available for recreation, so the resulting loss of revenue might be tolerable. The Chapel at Beaver Creek and the Vail Interfaith Chapel have been used as performance facilitie°. While these chapels are beautiful facilities, the nature . of their architectural form limits the types of performance arts that can be successful in these spaces to small music ensembles, solo performers, small meetings and lectures. Conference Facilities In the Vail Valley, there are 198 suites, 1,809 lodge or hotel rooms, and 2,060 condominium units for a total of 4,267 accommodation units in 54 properties. All of the existing meeting/conference facilities are located in hotels and lodges. What is missing, however, are adequate facilities to handle larger groups. This is especially acute when food service is required. Only two facilities in the Vail Valley can seat a banquet for more than 750 people. A review of the existing facilities indicates that the largest properties can handle groups up to 300 in size. Only two properties in Vail, the Marriott and the Westin, can at present comfortably accommodate the meeting, exhibit, and banquet needs of groups much in excess of this level. While the Marriott can accommodate as many as 1,000 in existing facilities, the largest, group which can most comfortably be accommodated for all types of functions during the event and allow for some concurrent use are those of up to 650 attendees (including exhibits). The Westin can accommodate groups of a similar to slightly smaller size. ' The lack of conference facilities severely hampers the ability to book larger meetings into the Vail Valley. Except during ski season, there are a large number of hotel rooms committable to group bookings. This lack of facilities makes it more difficult for Vail to compete with other mountain ski resorts to book group events. 8 ~ Unmet Needs Review of the potential users of conference/cultural arts facilities clearly revealed a lack of suitable facilities for performing arts, visual arts, conferences/meetings and educational facilities. In addition, the Jones & Phillips research found that the local performing arts groups need to develop a stronger image in the community. Performing Arts The unmet needs of the performing arts fall into two areas facilities and identity. In terms of facilities, all potential users need an acoustically appropriate environment, modern rigging and lighting systems, dressing rooms, adequate wing and backstage space and a facility that is available. Needs in • terms of theater size vary somewhat. The Friends of the Dance and the Vail Community Theater would prefer a theater that seats between 300 and 500 people, although for certain special events, larger numbers of seats are needed. The professional producers require larger houses (1,200 or more seats) in order to be able to generate sufficient revenue to cover their costs. B. , ~ o! Colorado could use both a smaller and a larger house depending upon the event and has a particular need for a facility with good acoustical characteristics for music. Vail is a relatively young community as are the local performing arts groups. We believe that a particular need of local groups is to establish a stronger identity. Jones & Phillips observed that local residents were not clear about what each group did and were generally uncertain about where to buy tickets. Visitors had no idea where they might buy tickets to events they saw posters for. Jones & Phillips also observed that many events that are typical in communities of similar size do not occur in the Vail Valley. This is most likely because there are no facilities to house•them. Travelogues, fashion shows, children's theater, classic film series, etc. are all missing from the entertainment landscape. Visual Arts ' The visual arts are also very limited in their facilities. The only display space in the Valley outside of commercial galleries is in the Library Community Room. This space has little security and is the only logical space in which the crowded library can expand. The only studio space in the community (other than that which is privately owned) is located in the basement of the Colorado Mountain College. The space is small, has no natural light and is heavily utilized by CMC. Again, due to lack of facilities, there are no children's art classes, or studio classes in printmaking, jewelry making, ceramics, photography, etc. 9 ConferencelMeetings ~ The conference/meetings market is one being aggressively pursued by the Vail Resort Association and the lodging owners. Unfortunately, their efforts are hampered by a lack of facilities in the Vail Valley. Although there are adequate lodging rooms, there are no meeting rooms that can handle a group of much more than 650. Other mountain resort communities have these facilities most notably Sno ~~..:ass, Keystone, and Colorado Springs, and they have been successful in attracting new groups to their communities in the summer and shoulder seasons. A single meeting of 1,800 people occupying 1,250 hotel rooms can generate $510,000 in hotel and restaurant expenditures, so the impact upon the community should not be underestimated. Educational Facilities The Eagle County School System's conservative estimates indicate that they will more than double their enrollment by 2001. This will obviously strain their current physical facilities. They haee a need for all types of facilities; at the very least they would like to use a theater facility to hold concerts for students. At the other end of the spectrum, they would be interested in exploring how this .facility might integrate with a magnet school in the arts, integrated electronics, and long distance learning. Other Needs Several groups mentioned the need for office space. Others wished for shops in which to construct scenery and costumes. Most groups had needs for storage space for unused items. 10 ~ Recommendations Although there are many pressing needs, it will not be possible to meet all of them. Therefore, Jones & Phillips makes the following recommendations: 1. The office space available in the building should be limited to that . necessary to manage the facility and the food service. Office space is very costly and the site is simply too small. By not having any office space available, no single group will be left out. 2. The facility should contain a centralized, staffed box office that keeps consistent hours and sells reserved seat tickets to all events occurring in the facility and general admission tickets to all other cultural events in the area. This, more than any other single activity, will help build identity and audiences for local performing arts groups. The box office _ doesn't need to be open eighteen hours a day; patrons will learn to buy their tickets when it is open. However, it must be open six days a week and accept all major credit cards. 3. Although there is a pressing need for studio space, Jones & Phillips does not recommend that this facility contain any. Creating art is not a neat, clean process. It often involves the use of hazardous chemicals and these do not mix well with public activities. Artists generally prefer natural light and large spaces. It is not a wise use of resources to put these activities in a facility that will cost $170 a square foot to build. 4. At this time, Jones & Phillips suggests that there be display space for the . visual arts provided in this building. They do not see this as museum quality space as they don't believe that is affordable at this time, but rather see space that is accessible whenever the box office is open to display community and regional shows. ~5. The facility should contain a theater seating between 1,000 and 1,200 patrons. Although this may seem like an excessive number of seats for ` the needs of local groups at the present time, the community is growing rapidly and this facility must meet the needs of the Valley far into the • future. Jones & Phillips suggests that the seats be distributed on both the main floor and a balcony, perhaps incorporating the European concept of loge boxes. This will make the hall feel more intimate and thus more suitable for local groups; yet professional producers will still have an adequate number of seats. 11 6. The theater should have good wing and backstage space, adequate ~ dressing rooms, a full fly system, an orchestra pit, and lighting and audio systems. Acoustics should be suitable for music events; sound reinforcement will be required for the speaking voice since it is easier to reinforce the voice than to vary the acoustics. It has been suggested that the facility does not need a fly system and an orchestra pit Jones 8c Phillips disagrees. The cost to rig a theater without a fly tower is roughly the same as the cost to rig a facility with a fly tower; without a fly system, the space cannot support multi-set dance and theatrical productions. An orchestra pit is essential to support musical theater. Without these items, this facility would have little to recommend it technically over the ' Battle Mountain gIigh School. Lighting and audio systems will be needed by every user of the facility. 7. Although it would be quite desirable to have rehearsal space, costume/scene shops, and storage space in this facility, Jones & Phillips does not recommend that the building contain them. The site is' simply too small to accommodate these needs and land costs are too high to justify building it at this location. Groups needing these facilities might have to seek another location where land is more accessible. 8. The facility should contain a ballroom capable of seating 2,500 in theater style seating and 1,200 at banquet tables and flour additional meeting rooms. A facility of this size would allow for the sale of 43,828 new roomnights in the community. This represents new lodging revenues of $4,207,488. (These visitors will also generate an additional $2.1 million in food and beverage sales.) It should be noted that it is unlikely that Vail would be able to attract these visitors to the community with a conference facility; although there are lodging rooms available, there is not sufficient meeting space. 9. A kitchen capable of providing food service for the conference center and concessions should be included. Jones & Phillips were unable to locate a hotel or food service facility that could provide catering of this magnitude from their own kitchens. Alternatively, perhaps food service could be catered from Denver, but this is a somewhat risky proposition. 12 _ i JONES & PHILLIPS ASSOCIATES, INC. THEATRICAL CONSULTATION AND DESIGN i i 1 ~ . Report to the Cultural Arts Steering Committee { Vail Colorado t t . x ~ October 24, 1990 F S 9 1 I ~ JONES ~ PHILLIPS ASSOCIATES, INC. Lafa ette Indiana Y ' Bloomington, Indiana $ - 6 1 I ntroduct i on I In June, 1990, Jones & Phillips Associates, Inc. was retained by the ~ Cultural Arts Steering Committee of the Town of Vail to analyze the feasibility of deve 1 oping a cultural arts/conference center. t During June and July, Jones & Phillips Associates interviewed a number of t people in the town of Vail regarding their feelings about a cultural arts/conference center. Questionnaires were sent to a number of potential users. # Based upon that information, a preliminary report was sent to the Steering Committee. This preliminary report indicated that there was a need in the x community for spaces for performing and visual arts and that continued growth in ~ _ the conference/tourism area was constrained by a lack of facilities. i There have been a number of previous studies regarding the potential ` development of a conference center. The most recent report is entitled "Phase One Ana 1 s i s : Mark y et Support for a Vail Congress Hall prepared by Economics s Research Associates. This was presented in June, 1987 and is an analysis of the s~ overall meetings market, the Vail area as a conference destination, the competitive environment, and the potential market support for a conference center. The ERA re ort was a ver thorou p y gh analysis of the meetings market and the role. that Vail might play within that market if they had more suitable r` facilities. A major source of data within that report was The Meetings Market. This report is prepared biennially for Meetings & Convention Magazine. Two additional Meetings Market reports have been published since the ERA report was - presented to Vail. Jones & Phillips Associates,. Inc. has reviewed the new data in those reports. Although it is not our intention to reproduce the ERA study, we have summarized the findings/conclusions of that document with updated information. t l 1 No previous studies. have been done of the needs for cultural arts ~ facilities in the Vail Valley. A major part of our effort, therefore, has been . to identify what needs are currently unmet. This report is structured into four major sections. Section 1 reviews the ~ conference/meeting market. In Section 2, we will develop the projected usage for t a conference center. A review of the needs of the community with regards to t cultural arts activities is contained in Section 3. Much of the information in ' this section was presented to the Cultural Arts Steering Committee as part of our preliminary report: ~ Section 4 examines three different buildings that meet some of the needs identified in the community. Projections of revenue and expense are developed for each of the buildings. In the first example, the building serves some, but not all the needs of the community for cultural arts facilities. The second example serves all of the cultural needs of the valley but provides no additional conference space. The third example represents that building that we feel best 4 serves the diverse needs of the Vail Valley and has the greatest potential to ~ generate adequate revenues to meet expenses. The Mathes Group has taken that building and developed a detailed the program and construction cost budget for example three. After the Cu 1 tura 1 Arts Steering Committee has reviewed th i s report and the building program developed by the Mathes Group, the program will undoubtedly ! require some refinement. After the program is refined, Jones & Phillips ' Associates, Inc. will revise the revenue/expenses projections and prepare a more detailed economic impacts/cost benefit analysis, so that this report may be distributed to the public. i i 4 Section 1 The Conference and. Meeting Market ~ In this section of our report, we will review the meetings/conference market in the United States. This will include a review of the findings of previous ( reports about this market. Although it is not our intention to duplicate earlier efforts, we will summarize the findings within those reports and highlight any Y significant areas of change. We will also review the competitive environment since there have been significant new additions to the supply of convention and Y conference centers. E Overview of the Meetings and Convention Market. r The meetings and conventions market consists of two principal segments: t (1) off-premises meetings held by corporate groups, and (2) conventions and other z meetings held by associations. . The volume of meetin and conventio g n activity between 1981 and 1989 has l demonstrated a pattern of overall growth as shown in ,Table 1. Total growth in ~ the vo 1 ume of events has i ncreased by 50.1 percent during th i s period, at an ' average annual rate of 5.56 percent. It should be noted that this growth has occurred primarily in the corporate market, which represents nearly 85 percent of all events, and amon the smaller association meetin 9 gs. The volume of mayor 1 association conventions has remained stagnant between 1985 and 1989. ~ Overall attendance has increased by 44.6q over.the same nine year period. The attendance in millions and the percent change from 1981 is shown in Table 2. ~ There were some unusual shifts in attendance patterns in 1983 and 1985; however, 1987 and 1989 were very similar to 1981. 1 r i Table 1 Number of Conventions and Off-Premises Meetings 1981-1989 Percent Change Number of Events (Thousands) 1981-1989 Average Type of Event 1981 1983 1985 1987 1989 Total Annual Corporate Meetings 707.2 713.8 706.1 807.2 1,066.0 50.7 5.1$ Association Major Conventions (1) 10.5 11.6 12.2 12.7 12.6 20.0 2.0$ Other Association Meetings (2) 125.3 147.8 185.4 181.7 186.6 48.9$ 4.9~ Total 843.0 873.2 903.7 1,001.6 1,265.2 50.1 5.0~ (1) Hajor conventions are defined as larger events drawing from the entire group constituency. (2) Other association meetings are defined as special group events which draw a limited segment of overall group membership and which focus program content by geographical or substantive element. Source: The Meetings Market, 1981 - 1989; and Jones & Phillips Associates Table 2 Attendance at Conventions and Off-Premises Meetings 1981-1989 Percent Change Attendence in Millions 1981-1989 1981 1983 1985 1981 1989 Average Type of Event Number Percent Number Percent Number Percent Number Percent Number Percent Total Annual Corporate Meetings 42.33 65.3% 36.82 58.1% 39.79 55.7% 47.34 63.6% 58.43 62.3% 24.8% 2.8% Association Major Conventions 9.47 14.6% 12.11 19.1% 13.53 18.9% 10.74 14.4$ 13.59 14.5% 6.4% 0.7% Other Association Meetings -13.04 20.1% 14.42 22.8% 18.17 25.4% 16.32 21.9% 21.72 23.2% 13.4% 1.5% Total 64.84 100.0% 63.35 100.0% 71.49 100.0% 74.40 100.0% 93.74 100.0% 44.6% 5.0% Source: The Meetings Market, 1981 - 1989; and Jones & Phillips Associates l Spouse attendance declined 4.7 percent at corporate meetings between 1985 t and 1989. Attendance by spouses at association meetings increased from 2.2 million in 1985 to 2.7 million in 1989, which is an increase of 23.3 percent. ~ 4.9 million spouses attended conventions in 1989, an increase 25 percent. t' n for the decrease in souse attendance at The most likely explana io P corporation and association meetings is the Tax Reform Act of 1986, which made ~ it more difficult for corporations to pay the expenses of spouses by both tightening the standards for a "valid business purpose" and by permitting the 3 deduction of only 809'0 of the cost of meals. The increase of spouse attendance likel a result of the increase in numbers of conventions at conventions is most y I held at resort properties between 1985 and 1989. ~ Table 3 shows the average attendance for all events. Note the shifts over i, the nine year period. Average delegate attendance has declined for all types of meetings since 1985, although 1989 data showed an increase over 1987 levels. 1 r eriod however attendance at conventions and other association . Over the longe p , meetings has increased. x As this general market overview shows, the total market has experienced modest rates of growth over the 1981-1989 period. The corporate market remains the dominant segment in the volume of events and attendance and this dominance as remained relativel constant. While corporate events have continued to grow h Y in number through 1989, rate of attendance has not grown as rapidly, resulting in a decrease in the average attendance. Although association conventions f declined in number during the high inflation/early recession years of 1979 to 1981, recent recovery has been strong and attendance grew by nearly 50 percent over the period. t i t 2 1 Table 3 Average Attendance for Association and Corporate Events Percent Type of Event 1981 1983 1985 1987 1989 Change Corporate Meetings ~60 52 56 59 54 -10.0 Association Major 902 1044 1106 847 1079 19.6$ Conventions ,Other Association 104 98 120 90 116 11.5 Meetings r Figures exclude spouse attendance. Source: The. Meetings Market, 1981-1989; and Jones & Phillips Associates i I Following below is a brief assessment of the changes in the association and ~ corporate market segments noted between the ERA study and more recent data. ASSOCIATION MARKET PATTERNS Event Volume and Attendance by Tvoe of Meeting i ' In the 1981 study, ERA noted a dramatic shift in the. nature of the ~ association meeting market in the events other than major conventions. This ' trend continues. In 1976 more. than half of these association meetings, ~ represented board meetings and local or regional chapter meetings and education ' seminars re resented onl p y 25 percent of total meetings. By 1985, education ' meetings represented 34 percent of the total association meetings. In contrast, { by 1989, education seminars represented nearly 40 percent of the Total ' association meetings. ~ The increased number of educational meetings has implications for conference centers as educational m eet i ngs tend to be heavier users of e 1 ectron i c r and satellite equipment. ~ There has been no significant change in the duration of association ' meetings since 1985, which averages 2.4 days. Accommodations and Meeting Facilitv Use ' Table 4 displays the types of accommodations selected for association meetings for 1981 - 1989. Urban/midtown lodging properties have continued as the ' dominant selection. Use of resort properties has increased, although not at a large rate. There has been a decrease in the use of suburban and airport ' ro erties and a substantial decrease in t P P he use of conference centers. ' 3 i t TABLE 4 TYPES OF FACILITIES USED FOR MEETINGS 1 r t ' ASSOCIATION ]9$1 1983 1985 1987 1989 ' Urban/Midtown 56% 68% 70% 70% 61% . ~ Resort 38 39 40 36 42 ' Surburban 52 34 39 34 34 ~ Airport 46 24 31 29 24 Privat - ~ ely owned Conference Ctrs. 15 11 14 X11 9 ' Suites NA NA 5 7 7 Condominium Resorts 6 3 4 3 3 ' University-owned Conference Ctrs. 21 10 10 10 8 t ~ Source: The Meetings Market 1 { 6 k 9 t There has been an interesting change in the factors influencing planners I of association meetings in their selection of facilities. In 1989, the factor that was considered most important was "Negotiable food, beverage, and room ~ rates." Factors ranked second and third were "Quality of food service" and „ ~ " ~ Number, size, and quality of meeting rooms This contrasts markedly with~the top three factors in 1985: (1) Number, size and quality of meeting rooms; (2) ~ Quality of food service; and (3) Number, size and quality~of sleeping rooms. "Negotiable food, beverage, and room rates" was not included as an option 4 in the earlier versions of the Meetings Market Survey. However, its inclusion this year as an option and it s ranking as the number one factor. suggests that planners have become more cost conscious. This has important implications for the smaller properties in Vail that offer somewhat lower room rates. It also Factors that are relatively unimportant to association meeting planners are ~ newness of the facility, special meeting services, number of quality of suites and availability of exhibit space. Teleconferencing ~ Most associations are not making significant use of video teleconferencing. This rnay, however, change as the technology changes. f ' - Location Preference and Selection Criteria. Regional locations for major conventions have not changed .significantly r ' since the 1987 ERA study. California and Florida are still the top locations; t Texas and Illinois follow close behind. Ohio and Georgia showed some increase over 1985; this is most likely explained by the tendency of meeting planners to ~ move major meetings to different regions about the country. - 4 a~ The mountain region has ranked well behind these other areas, fluctuating ! between eight and ten percent share of surveyed activity. We would anticipate that this will increase, however, with the opening of the Denver Convention Center. ~ In 1989, the most important factor influencing meeting planners in destination selection was the "availability of hotels and/or other facilities ~ suitable for your meeting." The second most important factor was the "ease in ' transporting attendees to and from location." ' ~ Freouencv and Seasonality . ~ No significant changes have. been seen in the seasonality of major ' conventions since 1985. April, May, June and July are still the top months, i representing 51 percent of all activity. October represents 11 percent of annual ' activity. That means that better than half of the meetings occur during the months when Vail experiences the lowest occupancy levels. The Number of conventions occurring during the three months of November, December and January ' represent only 10 percent of the entire market. i CORPORATE MARKET PATTERNS ' The initial discussion of overall market trends noted a pattern of i increasing volume but declining attendance at off-premises corporate meetings. Event Volume and Attendance by Event Tvoe_ ' In contrast to the pattern noted earlier for association meetings, there t has been no dramatic shift in the volume of specific types of events, but rather ' a more even continuation of overall growth. Training seminars and management t meetings remain the dominant types of events. 5 r Since 1985, there has been an increase in the attendance at professional and technical meetings. In 1985, this represented 9.9 percent of the total attendance. By 1989, this had risen to 20.6 percent. Attendance at management I meetings has decreased from 20 percent in 1985 to 14.2 percent in 1989. There ~ has been a small decrease in the overall percentage of shareholder and incentive trips. In 1985, these represented 6.8 qo of the market; in 1989, 4.2 q. ~ There has been virtually no change in event duration overall since 1985. ' The average duration of 'an education meeting is still 2.8 days; the average 4 duration of all types is 2.6 days. Accommodations and Meetino Facility Use ' The types of facilities used for corporate meetings are shown in Table 5. 4 As with association meetings, the dominate choice is the urban/midtown hotel. ' Usage of this type of facility has increased since 1981. The use of resort properties for corporate events has shown an overall decrease since 1981, although usage in 1989 is ahead of 1983, 1985 and 1987. Use ' of all suite hotels, a category that did not exist in 1981, has shown a ~ substantial increase. Use of conference centers has remained roughly the same. ' Use of condominium resorts has decreased. Factors influencing planners of corporate meetings in the selection of a facility or hotel have changed somewhat since 1985. The top two factors in both ' 1985 .and 1989 were "quality of. food service" and "number, size and quality of meeting rooms." In 1985, the third most important factor was "efficiency of ' billing procedures." In 1989, "number,, size and quality of sleeping rooms" was 4 ' third. The fourth factor in 1989 was availability of "meeting support services". ¢ This factor was seventh in 1985. Ranked fifth in 1989 was "negotiable food, t beverage, and room rates." f ' 6 r O a .TABLE 5 ~ TYPES OF FACILITIES USED FOR MEETINGS ~ CORPORATE 1.981 1983 1985 1987 1989 o o, o 0 Urban/Midtown 54~ 64/ 580 57/ 64/0 Resort 61 47 44 47 55 ' Surburban 55 47 45 44 44 C ' Airport 37 24 27 28 29 ~ Privately-owned Conference Ctrs. 17 19 17 19 17 ' Suites NA NA 9 13 17 ~ ~ Condominium Resorts 15 8 9 7 9 University-owned Conference Ctrs. 7 5 5 7 8 i s Source: The Meetings Market t 1 - I F F t D location and Transportation . The factors influencing the selection of the location have not changed since 1985. While facility availability, access, distance, and cost factors are more important for all corporate meetings, they are less influential in selecting incentive destinations. While image, climate, and recreational opportunities exert minimal influence overall, they are the most important factors for incentive meetings, given the nature of these events as performance awards. Regional locations in which corporate meetings are held show similar patterns to association meetings. California ranks first among states for corporate meetings as it did among associations, followed similarly by Illinois ' and Florida; thus the top three states are the same for both segments. Colorado did not appear among top states for corporate meetings. Scheduled airlines remains the most frequently used mode of transportation ' to and from corporate meetings. The personal car is second and a rental car is third. There is no change in this ranking from 1985. t Use of Teleconferencing Use of to 1 econf erenc i ng rema i ns a mi nor cons i derat i on f or corporate meeting 1 planners. Those who use it indicate a preference for dedicated facilities ' rather than for ad hoc systems. CONVENTION MARKET ACTIVITY IN THE ROCKY MOUNTAIN REGION ' In order to determine the scale of the market available to a conference center in the Vail Valley, Jones & Phillips Associates has reviewed the previous studies including the February, 1987 report prepared for the Vail Congress Hall ' Committee by Tourism Techniques and the June, 1987 report prepared. by Economics Research Associates (ERA). These reports werj based on data published in 1986 and 1987. ' 7 1 f Conclusions Drawn by the Tourism Techniques Study The study prepared by Tourism Techniques sent questionnaires to 3000 meet in in the Rock meeting planners in the United States who had conducted a g Y Mountain region within the last three years. 14 percent were returned. According to data from Tourism Techniques' databases, 12,094 organizations utilized sites within the Rocky Mountains and each held 1.3 meetings per year. ? Based upon this information, Tourism Techniques then concluded that the universe of meetings that might be held in the Rocky Mountain Region was 15,722. Based upon information obtained from the questionnaires, they divided the universe of meetings by size and the number of respondents that were "very likely to consider Vail" and had previously held meetings in a mountain resort. From ~ this, they concluded that Vail had a primary market that represented 689 ' meetings. 51 of these meetings had more than 500 attendees. Multiplying the average number of room nights per meeting, which was obtained from the survey, ~ by the primary market, Tourism Techniques concluded that the potential size of ' the primary market was 317,393 room nights. Similar calculations were performed for that group of respondents who ' indicated that they were "very likely to consider Vail" but did not presently ' hold meetings in mountain resorts. Tourism Techniques considered this to be the k secondary market and concluded that the potential universe of this market was ' 835,481 roomnights. 134 of these meetings had more than 500 delegates. Tourism Techniques then considered what portion of each market Vail was ' likely to capture. They concluded that Vail would be likely to capture 113,094 roomnights annually or 9.8% of the total Rocky Mountain meeting market. 4' t 8 t A major flaw in .this study is the assumption that all groups that meet in the Rocky Mountain°Area hold all of their meetings in this region,. We consider that unlikely. Another potential problem with data from self-administered f a surveys is that you are measuring the responses of on1Y those people who are willing to complete your survey. This survey was three and one-half pages of closely spaced questions; to motivate planners to return these questionnaires, the inducement of a week's vacation in Vail was offered. ~We believe that this inducement would appeal primarily to those individuals who already had a 1 propensity~to consider Vail as a superior destination; this makes the results i somewhat suspect. However, the study does have some valuable information. For example, 63.9 ~ percent of the planners surveyed required food service for the entire group. 71.0 percent held that all meeting rooms, must be located in the same hotel . 63.7 ' percent of the respondents felt that it was very important to have all of the i dele,gates housed in one facility. 32.4 percent felt that they would not book a ' meeting into a facility where the delegates were housed in more than one hotel. t , { ' tud 1 Summary of the Econo~aics Research Associates S y ' ERA completed a detailed analysis of meeting and convention activity t occurring within the Rocky Mountain market area over a five year period, 1981- ' 1986. The data for this analysis was drawn from the Successful Meetings t Directory of Conventions for the years 1981, 1983 and 1986. While these listings are limited largely to association market activity, these account for 1~ + ' virtually all of the larger meetings. t 9 1 ' T4ble 6 - Available Tem orar Lod in P Y 9 9 t ' Number of Number of Number of Number of ~ Property Suites Lodge Rooms Rooms Condominiums Total M Other Valley Locations: Ea le River Inn ~ ~ 9 12 12 i O The Lodge at Cordillera-~ ry- - 3 ~y«- 25 -w - 28 ~ Subtotal Other 3 25 12. 0 40 O Beaver Creek/Avon , Beaver Creek West Condominiums 82 82 Charter at Beaver Creek 57 97 154 Comfort Inn Vail/Beaver Creek 2 143 ~ D - 145- Eagle Pointe 54 54 --------298 Hyatt Regency Beaver Creek 31 267 - ---------45- ° Inn at Beaver Creek ---------45- Kiva at Beaver Creek 24 24 F ~ Park Plaza at Beaver Creek 36 36 ~ Poste Montane 24 24 Sunridge 29 29 ~ Sun River Condominiums 24 24 The Christie Lodge 282 2g2 Townsend Place 12 W 12 Subtotal Beaver Creek/Avon 33 512 0 664 1209 TOTAL Vail Valley 198 1780 229 2060 4267 1 ~ Source: Vail Resort Association, July, 1990 and Jones & Phillips Associates, Inc. F , t Table 7 Characteristics of Meeting Spaces } Total Number of Square Feet of Maximum Seating Capacity ~ -Property______________ Meeting Rooss_ Meetinq_Space- Theatre Style-- Banquet--- ~ Antlers at Vail 5 3,111 115 80 Apollo Park Lodge 0 0 0 ~ 4 Best Western Vailqlo N 0 0 0 0 ~ Chateau Vail Holiday Inn 1 2,268 200 120 • Christiania At Vail 1 1 000 50 - ~ Doubletree Hotel 5 5,936 240 180 Fallridge at Vail 1 750 70 55 Gasthof Gramshammer 0 0 0 0 - - - Holiday House 0 0 0 0 Lifthouse Condominiums 0 0 0 0 Lions Square Lodge 5 5,680 300 230 Lodge Tower in the Vail Village 0 0 0 0 a L'Ostello 0 0 0 0 1 . z Manor Vail Lodge 3 6,625 350 300 Marriott's Mark Resort N 14 - 15,696 N 1,000 850 ~ Montaneros 2 750 75 50 1 Mountain Haus at Vail-------------- ---------2,500 75 50 Park Meadows Lodge 0 0 0 0 Plana Lodge 0 0 0 0 Rams Horn Lodge Condoniniums W 0 - 0 0 M W~0 • f Roost Lodge 0 0. 0 0 1 _ Sandstone Creek Club 0 0 0 0 q - Simba Resort ---------1 -----------300 -19-------------o Sitamark Lodge 0 0 0 0 n Sonnenalp Hotel 6 4 304 200 150 Streamside at Vail 1 •340 20 0 P Table 7 -Characteristics of Heeting Spaces - f Total Number of Square Feet of Haximum Seating Capacity. i Property Heeting Rooms Heeting Space Theatre Style Banquet The Lodge at Lionsehad 0 0 0 0 4 - The Lodge at Vail 4- 6 830 250 150 ~ The Tivoli Lodge 2 600 25 0 The Westin Resort 22 15,620 798 570 - ~ The Willows 0 0 0 0 Thw Wren Condominiums 0 0 0 0 f ' Vail Athletic Club 4 3,174 100 80 ~ Vail International 0 0 0 0 Vail Racquet Club 2 1 808 80 70 S ° Vail Run Resort 0 0 0 0 Vail Spa 0 0 0 0 Vail Village Inn/Village Inn Plata 1 570 W 25 0 # Westwind 0 0 0 0 - Subtotal Vail 80 77,862 3,992 2,935 a t 1 f Table 7 -Characteristics of Meeting Spaces ' Total Number of Square Feet of Maximum Seating Capacity Property Meeting Rooms Meeting Space Theatre Style Banquet 1 Other Valley Locations: . ~ Eagle River Inn 0 0 0 0 ' The Lodge at Cordillera 2 1 630 90 '"___~88_ Subtotal Other 2 1,630 90 88 f ' Beaver Creek/Avon: . -j- Beaver Creek West Condomimums 0 0 0 0 Charter at Beaver Creek 5 3 060 100 100 Comfort Inn Vail/Beaver Creek 1 632 N Eagle Pointe 0 0 0 0 Hyatt Regency Beaver Creek 17 17,576 1,200 760 ~ Inn at Beaver Creek 2 2,400 75 70 Kiva at Beaver Creek 0 0 0 0 y Park Plaza at Beaver Creek 0 0 W 0 0 Poste Montane 0 0 0 0 ' Sunridge 0 0 0 0 Sun River Condominiums 900 The Christie Lodge 0 0 0 0 ' Townsend P1aceY------------------ ~ Subtotal Beaver Creek/Avon 24 25,568 1,375 930 ' TOTAL Vail Valley 106 105,060 5,457 3,953 ~ Source: Vail Resort Association, July, 1990 and Jones 6 Phillips Associates, Inc. r ' What is missing, however, are adequate facilities to handle larger groups. Only two facilities in the Vail Valley can seat a banquet for more than 750 people. A review of the existing facilities indicates that the largest properties can handle groups up to 300 in size. Only two properties in Vail, the ' Marriott and the Westin, can at present comfortably accommodate the meeting, ' exhibit, and banquet needs of groups much in excess of this level. While the Marriott can accommodate as many as 1,000 in existing facilities, the largest ' group which can most comfortably be accommodated for all types of functions during the event and allow for some concurrent use are those of up to 650. attendees (including exhibits). The Westin can accommodate groups of a similar f to slightly smaller size. Occunancv Characteristics ' Discussions with VRA indicate that during the last eight to ten years the group meetings segment has become increasingly important to Vail area hoteliers ' as the recognition has grown that th i s segment offers the strongest opportunities f ' for building annual occupancy. While initially few lodging properties provided on-site meeting facilities to any significant degree, in recent years most t ' properties have recognized the need for good quality function space and have added meeting and banquet rooms. While occupancies are strongest during the winter ski season, in general annual occupancy levels are .relatively low. This is characteristic of resort areas where one season is particularly dominant and the area's reputation is ' based primarily on the attraction of a particular sport (such as skiing) or } natural feature. ' Although detailed occupancy levels are not available as area properties were not willing to provide this data to us, information from VRA indicates that 1 ' 13 monthly occupancy patterns are as might be expected--very high in all types of ' facilities in January, February and March and quite low in the "shoulder" seasons ' of May and October. f ' Lodging Rates ~ Published daily rates for Vail area hotels and condominiums are indicated ' in Table 8. As shown, rates for the peak winter ski season are anywhere from 10 ~ . percent to more than 200 percent higher than during the summer/fall periods. ~ The Vail area offers a wide range of accommodations as measured by quality t and rate levels. In the winter, six properties in the Vail Village/Lionshead area and the majority of properties in the East Vail/West Vail area offer rates ' in the under $100 range. On the other hand, the principal convention hotels m ' (Marriott, Westin) indicate rates at levels near $200 per night, although they discount significantly from rack levels for group bookings. In general, Vail ' area properties offer good values during non-winter periods and lodging operators indicate willingness to offer attractive group rates. ' Existing Public Assembly Facilities In addition to meeting and banquet space provided in Vail area lodges and ' hotels, there are a number of meeting and performance spaces throughout the t community which are available for group use. These spaces will be discussed in ' neater detail in the section dealing with performing arts facilities; however, 9 f ' they do impact the ability to attract group business. j The newest facility is the Ford Amphitheatre just east of Vail Village in ' Ford Park. It will seat 900 in fixed seats and 1200 may be accommodated on the i lawn. 14 i I ' ~ Tab 1 e 8 1 PUBLISHED RATES FOR VAIL AREA HOTELS AND CONDOMINIUMS (1990/1991) f Summer/Fall Winter(11 Prooerty Hotels(2) Condominiums(3) Hotels(2) Condominiums(3) Antlers $95 -$135 $175 -$525 Apollo Park 49 - 59 . 79 - 159 Raintree Inn 60 85 - Y20 ~ 98 - 170 75 - 300 ' Vialglo Lodge -60 78 _-118 Bighorn 50 - T20 90 - 290 Bishop & Company 80 - 150 150 - 325 Brandes-Cadmus 70 - 200 110 - 475 Cascade Vil. Prop. 120 - 195 125 - 345 ~ Christiana 40 - I00 110 - 275 185 - 300 ' Dest. Res. Mgmt. 49 - 149 169 - 259 ~ Doubletree -60 105 - 245 Eagle Pointe 95 - 125 100 - 176 East Vail Rentals 50 - 175 90 - 200 Enzian Lodge 65 - 75 75 - 165 Fallridge 75 - 180 100 - 450 Gramshammer 80 - 115 150 - 245 185 - 205 175 - 500 # Golden Peak 50 105 - 150 90 - 120 I60 - 325 Guesthouse 50 - 85 100 = 170 100 - 115 Holiday Inn/House 65 95 - 175_ 79 - I75 145 - 400 Homestake 60 - 80 ------N.A.--------- ' Lifthouse 50 - 65 115 - 203 Lion Square 60 - 80 80 - 200 100 - 240 140 - 540 t Lodge at Lionshead 80 - 140 95 - 365 Lodge at Vail 75 - 150 180 - 415 250 - 320 470 - 935 Lodge Tower 59 - 85 125 - 260 110 - 2I0 230 -'550 ' Manor Vail 60 100 - 140 100 145 - 590 Marriott 115 150 - 335 170 -.235 .150 - 600 Meadow Vaii 500 - 700 775 - 1025 ' Montaneros 84 - 190 170 - 530 Mt. Haus 80 130 - 145 115 - 145 225 - 495 i I ' Summer/Fall Winter(11 Prooerty Hotels(2) Condominiums(3) Hotels(2) Condominiums(3) f ' Park Meadows 35 - 50 55 - 155 Roost Lodge 36 - 53 63 - 130 58 - 107 ~ Sandstone Creek 49 73 - 130 70 - 120 110 - 360 Simba 85 - 105 150 - 350 SitZmark 49 - 74 91 - 200 Streamside 35 - 60 80 - 125 85 - 350 Tivoli 44 - 63 95 - 198 ! Vail Home Rentals 85 - 235 110 - 450 Vail Athletic Club 110 140 - 450 215 - 365 285 - 875 Vail Intn'1 Mgmt. 80 - 185 235 - 595 t ' Vail Mgmt. Company 75 - 200 100 - 325 Vail Racquet Club 75 - 180 80 - 255 i Vail Resort Rentals 50 - 125 165 - 440 ' Vail Run 94 - 168 '125 - 420 Vail Spa 248 - 330 248 - 550 ~ Vail Valley Real Est. 95 - 250 215 - 425 ' Vail Valley Vac. 50 - 75 90 - 230 70 - 125 200 - 725 Vail Village Inn 35 - 60 100 - 300 95 - 165 150 - 550 e ' Westin 65 - 125 125 - 340 240 - 325 375 - 1215 Westwind 55 - 75 65 - 225 75 - 195 145 - 450 Willows 55 - 75 125 - 270 Wren 50 - 115 110 - 350 t ' (1) Includes regular and value season (2) Includes hotel/lodge rooms, not suites or studios (3) ~ Includes 1-3 bedrrom condominiums. t i r ' The largest facility is the Dobson Arena, owned by the Town of Vail and ~ operated by the Vail Metropolitan Recreation District, which provides a floor ' area of 17,000 square feet. Originally built as an ice arena, the facility ~ accommodates a variety of multi-purpose events, seating up to 2,500 theater ' st le and seatin u to 1 200 for ban uet ' y~ 9 P q s It can accommodate 125 - 8 X 10 i ' booths for trade shows and other exhibits. ' CHARACTERISTICS OF RECENT MEETING/CONVENTION ACTIVITY IN VAIL ~ Earlier studies provided indications of group activity for larger groups ' of 400-2500 meetin in the Rock Mountain r i g y eg on. As part of this study, we reviewed the groups that had booked their meeting through the Vail Resort ~ Association. In 1984, VRA booked 203 events. This declined to 89 events in 1986 but increased to 172 events in 1988 and 235 events in 1989. ~ It should be kept in mind that this represents only events booked by the VRA and does not include the substantial levels of activit booked b individual y Y ' lodging properties. As such, this represents a sample rather than the entire ~ .universe of events. Nevertheless, it should be viewed as representative of Vail ' area activity and constitutes the most comprehensive available source of such data. THE COMPETITIVE ENVIRONMENT A very significant part of Vail's ability to attract group business is the ' competition within the state and region. During the last decade, the market for ` convention, exhibition, and meeting activity has been characterized by a dramatic ' increase in com etition. While demand for facilities h.as rown ` as discuss P g ed t ' earlier in this section, supply has generally increased at a more rapid rate. # 15 p 1 This had been true in most U.S. market areas irrespective of market size or ~ location. According to the Trade Show Bureau, in 1980 there were 222 facilities that had 25,133,000 square feet of exhibit space. By 1987, there were 305 ~ facilities that had 42,377,100 square feet of exhibit space. This is a 37% increase in the number of fariliti..e and 8% inrreaS in ~ _ .~6 _ .,e the a,mpunt of exhibit mace. This does not include the abundance of privately built new spaces in ~ hotels and conference centers around the country. This process shows no signs of abating. The September, 1990 issue of ~ Successful Meetings reported that an incredible 24,000,000 square feet of new s ace was currentl bein Tanned. At resent there are at 1 P Y 9 P P east 43 U.S. cities I ' building or actively planning major new or expanded convention centers. r Opinions differ about whether or not this space will be needed. Some ' managers believe that the market is not yet saturated; others believe that it is F ' near its peak. While much of the new construction continues to consist of Tar er scale ~ g publicly financed convention centers in urban areas, there has been a dramatic ~ surge in development of conference and meeting facilities in resort locations in virtually every region as well. As lodging markets have continued a general pattern of overbuilding, and as resort operations experience the economic ' pressures of seasonality and respond with the need for bolsterin low and off- 9 ' season occupancy, the group market has become the logical target for supporting ~ growth. Much of this growth is occurring in Colorado. For example, a 1983 directory of meeting spaces listed 29 meeting spaces in Snowmass. There are now 40. Steamboat Spring has 23 meeting spaces in 1983. The 1989 Meetings & Conventions directory lists 43. ' 16 a 1 I ~ The development of new conference and convention facilities in Rocky Mountain resort areas is of articular relevance to demand for a Conference P t Center in Vail. CHARACTERISTICS OF RELEVANT COLORADO RESORT MEETING FACILITIES ~ Table 9 provides information regarding the existing meeting and convention facilities most relevant to Vail's market area com etition. Much of the s ace P P available has been developed since 1980. This is clear recognition of the } importance of the group segment to acceptable levels of resort occupancy. The narrative which follows discusses the characteristics of each facility. ! Snowmass Conference Center Of al l of the faci 1 ities described in Table 9, the Snowmass Conference ' Center is perhaps the most relevant. It represents direct competition to a Vail ~ conference/convention facility; it was completed in 1985 in order to serve the same goals of increased low season occupancy which Vail hopes to serve; and it f was publicly financed through bonds issued by the Town of Snowmass Village. The Center encompasses 38,000 square feet of building area and rovides P 18,306 square feet of meeting and banquet space. It is located in the village = mall activity area and is adjacent to two moderate scale lodging properties. While it can accommodate up to 2000 theater style in the Snowmass Ballroom, it ! is best suited for groups of up to 600-800 in order to accommodate both meeting and food service needs on site. Average group size has been .in the 200-250 ' range, and larger groups of 1,000 or more have not exceeded 5-7~ per year in number. ' 17 r Table 9 Characteristics of Relevant Conference/Convention Facilities in Colorado Number of Total Number of Maximum Seating Capacity Largest Group Sleeping Year Square Feet Largest Space Meeting Comfortably Rooms Facilty/Location Opened Function Space Square Feet Rooms Theater Banquet Classroom Accamiodated Commitabl Snowmass Conference Center 1985 18306 11300 5+ 90 1366 1050 600-800 2500/1300 Snowmass seat theatre Keystone Conference Center 1989 5800 20000 34 1800 1200 950 650 90~ of al Keystone rooms yr- Broadmoor Hotel 1980 105289 18000 36 2400 1600 1800 2200 500 seaso Colorado Springs 550 off-s Beaver Run Resort 1984 30000 7200 14 1000 600 600 400 580 yr-ro Breckenridge Copper Mountain 1983 3 facilities- Reception 4000 13 300 200 200 300 418 yr-ro 8700 The Village at 1985 3300 5200 21 550 425 375 500 434 yr-ro Breckenridge . Sheraton Resort and 1977 2500 Ballroom 6500 16 675 525 575 500 Typically Conference Center WI: 200- Steamboat Springs Silvercreek Resort 1985 2100 10000 16 515 250 300 350 300 yr-ro Silvercreek Tamarrom Resort ` 1972 1400 4200 16 500 400 475 450-500 350 yr-ro Durango Source: Jones & Phillips Associates, Inc. Survey October, 1990 The mix of occupancy has been 80 percent association/ZO percent corporate business, with the bulk of activity by scope as state and regional. Despite the Aspen/Snowmass area's international resort reputation, the Center has not been successful in attracting significant numbers of large national associations, largely because of the distance from a major airport. However, given the greater ' number of airline seats serving the Aspen Airport than presently serve .the Vail area, the availability of air service has been very important to the marketabilit of the n y ce ter. s The Snowmass Conference Center is owned by the Town of Snowmass Village but is operated and marketed by the Snowmass Resort Association (SRA) under what is essentially a lease/purchase/management agreement. The Center was financed through the issuance of sales tax revenue bonds by the Town in the amount of $6.8 million. f The public/private partnership between the Town and SRA evolved through the SRA's long-standing interest in the development of additional meeting facilities in order to attract more and larger groups to Snowmass, primarily during non-ski season periods. A successful vote in favor of the facility by the Association's membershi occurred in A ril 1983. The vote co p p ntemplated the involvement of the Town's borrowing power and established a maximum interest rate of 11.5 percent on a project of approximately $6 million. The SRA agreed to a net/net/net lease/purchase approach with the Town retaining ownership of the facility for 19 years (the remaining charter period of the SRA and SRA urchasin it for a nominal am p g ount after that time. The lease led ed SRA's si nificant assessin p 9 g g powers to the payment of the debt service. This constituted the principal security to the Town. 18 1 I . The Town agreed to finance the conference center through revenue bonds back f by sales tax receipts. While this decision did expose the Town to some risk and limited its borrowing power for other purposes, there was clear consensus that 1 the risks taken were justified by the potential gain resulting from a successful' conference center. 'The sales tax backing was essential to obtain sufficiently ~ attractive interest rate levels and constituted the major security to the bond holders. An effective interest rate of 9.75 was committed,,and the offering was I placed in June, 1983.` i The Broadmoor Located on Colorado Springs, the Broadmoor is the strongest resort ~ competitor for conference and convention group activity in the Rocky Mountain region. A true luxury resort hotel in the classic tradition of the Greenbriar in West Virginia and The Homestead in Virginia, the Broadmoor has been awarded the Mobil Five Star award annually since 1960 and is among only a dozen such f _ ' properties in the U.S. to receive this distinction. f The .Broadmoor provides the largest square footage of function space of any single property in the market area, with a total of 105,289 square feet of f meeting, exhibit and banquet space housed i n several f ac i 1 i t i es . The core of the meeting space complex consists of the 35,000.square foot Broadmoor Conference ' Center which is located across from the main entrance to the hotel. The original ' ter was the 17 000 s uare foot International Center element of the conference cen q t built in 1960. The 18,000 square foot Colorado Hall was added in 1980. f_ Additional function space is provided in the main hotel structure, adjacent hotel wings, the golf club, the World Arena, and at the base of the resort's somewhat limited ski facilities.. ! 19 i The hotel provides 560 guest rooms with a total of 1200 beds. It is a true ( ~ resort in the traditional style. All facilities are owned and operated by the Broadmoor. ~ . The Broadmoor's success in attracting meeting and convention groups and the im ortance of this market se ment ar ~ P g e illustrated by the fact that groups represent 81 percent of annual occupancy, with only 19 percent derived from transient visitors. While groups up to 2,200 can be comfortably accommodated in terms of function space needs, typical group size tends to be between 150-200. It is not uncommon for citywide conventions to be headquartered at the Broadmoor and utilize much of its extensive e meting space, while using sleeping rooms in other Colorado Springs hotels as well. In fact, the Broadmoor operates the ~ nearby Antlers Hotel as well. i~ Because of its location in Colorado Springs, The Broadmoor does not offer ° the high quality ski experience characteristic of Vail or the other mountain 1 resorts. As a result its a eal and its seasonalit are distinc 1 pp y t y different from those of Colorado mountain resorts, with high season occurring during summer ~ months (May through October) and low season from November through April. Its mix of business is strongly association in nature, constituting 70 percent of all ~ group business and only 30 percent from the corporate segment. Only 20 percent of meeting and convention activit has been drawn from the state market with the y , i balance made up of regional, national, and international groups. ~ Kevstone Perhaps second to the Broadmoor in image and competitive posture is r Keystone, located just over half way between Denver and Vail. The Keystone resort concentration includes the 152-room Ke stone Lod a and a r y g pp oximately 750 condominium units. 20 t In 1989, Keystone opened the largest non-urban convention center in the ~ Rocky Mountains. This 58,000 square feet facility includes two ballrooms that 1 total 32,500 square feet. The facility cost $10,000,000 to build and enables Keystone to accept groups of up to 1,800. The facility has 34 meeting rooms. ~ During summer months the Pavi 1 ion (a tent structure) is used for special events, t performing arts festivals, and large convention groups. ~ Little information was available regarding the scale of group business at Keystone other than to say it "was good". ~ Breckenridae Breckenridge is a ninety minute drive from Denver and is a charming Victorian mining town. The Breckenridge area has 2,600 committable sleeping ' rooms. Of these, 1900 represent first class accommodations.. Four properties in the area provide meeting/conference space. The Beaver Run Resort Conference. Center was completed in the spring of 1984 r and provides 30,000 square feet of meeting and banquet space in a highly flexible ~ configuration. While able to accommodate as many as 1,000 in a theater style configuration and 600 for banquets, groups of 400 are most comfortably 9 ' accommodated. - . With 2,600 committable lodging units ranging from hotel rooms to 4-bedroom E j suites, group business represents 20 percent of winter season occupancy and 80 x percent of summer season occupancy. Seventy percent of group bookings reflect 1 association activity, with only 30 percent from corporate events. The conference center reportedly accommodates between 180-200 groups per year, with an average group size of 200 persons. i 1 21 i The only definite plans for new facilities include imminent addition of an " auditorium seating 300 people. However, there has been substantial discussion of developing more and larger meeting facilities in order to accommodate larger R groups, but no specific planning has taken place. In addition to Beaver Run, additional lodging and meeting facilities are provided at the Village at Breckenrid a Resort. Function s ace totals 33 000 9 P square feet in a flexible configuration of 22 rooms. Maximum capacity is 550. Their average group size is 100~with an average stay of 3.5 days. No estimate ' of the number of groups served annually is available. . Cooper Mountain ' Copper Mountain, 75 miles west of Denver, is an area that is rapidly growing. The Copper Mountain Resort provides meeting and conference space totaling 10,000 square feet in 10 flexible rooms. The largest group that can comfortably be accommodated is 300. Due to be completed in January, 1991 is an additional 15,000 square feet of flexible meeting space. This new space will accommodate 650 people in the largest room. During the summer season, group business constitutes an estimated 75 percent of occupancy. On an annual basis, 70 percent represents association groups and 30 percent corporate. While groups of up to 350 can be accommodated (300 most comfortably), average group size is indicated at 75 persons. Steamboat Sorinas The Sheraton Resort and Conference Center, located in Steamboat Springs, 160 miles northwest of Denver, provides meeting and banquet space capable of accommodating groups of up to 500 comfortably. Function space totals 25,000 ' 22 Q a square feet, with the 6,500 square foot Grand Ballroom as the largest single ° space. There are up to 16 separate meeting rooms ranging from 270 to 2,400 s uare feet in size. q Occupancy is roughly equivalent in mix between transient and group ~ segments, with the majority of group bookings from the corporate segment (roughly ' 75 percent). Around 300 groups are accommodated annually. Groups average b0 persons with an average stay of 2.5 days in the summer and 4.5 days in the winter. SilverCreek Resort Located about 80 miles northeast of Denver, the Silvercreek Resort Convention Center opened in the spring of 1985. With 345 units in the SilverCreek Inn and 21,000 square feet of function space, the largest single meeting space is a 10,000 square foot ballroom. Moveable partitions allow for up to 20 separate rooms. Groups of up to 350 can be comfortably accommodated, ' although average group size is approximately 200. . Tamarron Situated 18 miles from the historic town of Durango in southwestern ' Colorado, Tamarron sits in a high valley of the San Juan Mountain Range. It offers 411 lodging units, with sleeping rooms available in both inn and condominiums. Tamarron`s conference facilities include 14,000 square feet of highly flexible function space which is divisible into up to 17 rooms ranging in size from 300 to 4,200 square feet. Seating capacities accommodate groups as large as 600, however, sizes of 450-500 are most comfortably accommodated. Average group size is approximately 120. ' 23 F Group business constitutes an important segment of overall occupancy. ~ While groups sales representatives have long felt the need for more and larger meeting space and feel a doubling of existing facilities would serve to enhance their group bookings, there are no specific plans for adding additional space. ,i ' Denver Q The long awaited Denver Convention Center opened irr 1989. Total square footage of the facility is 100,800. The facility can seat 14,000 theatre style and contains 17 meeting rooms. The capacity of the largest meeting room is 1,200. Denver has 18,000 committable sleeping rooms; 1,200 are near the new ' convention center. The charge to use space in the convention center is $.36 per square foot. 40 groups have had meetings in this space in the first year of operation; future bookings are 50 percent ahead of projections. Proposed Additions to Suoolv I As noted earlier in this section, meeting and convention facilities have ry continued to proliferate in virtually every region, with communities of all types 1 and sizes looking to reap the economic benefits of increased group visitation to their area. The development of new facilities creates both market opportunities ' r in s. On one hand the emer ence of newer, larger, and better and const a t 9 r, convention spaces assists in establishing a location as an identifiable meeting destination, reinforcing its image as a place to meet. On the other hand, 1 significant increases in supply of facilities clearly increases competition for bookings, with the result that stronger locations are more successful and ' re often notabl under-utilized. marginal face 1 it~es a y 1 ~ 24 ' Asoen In 1987, discussions with the Aspen Planning Department indicated an ' expected application for a hotel and conference center from the Donald Trump ~ organization to be submitted in the fall of this year. This project was never com leted but a Ritz-Carlton ~ P Hotel containing meeting facilities is presently ' under construction. ~ Breckenridae t Both Beaver Run and the Village at Breckenridge have done extensive F planning for additional conference facilities: Conversations with the Town of Breckenridge indicate that a conference facility appears on the master plan but I is not expected to .be constructed in the near future. Other Areas ' In telephone conversations with all other major resort areas in Colorado, we could identify no other serious plans for new or expanded facilities. Many Tanners identified a desire for m r P o e facilities but no proposals had been written'. R 5 R, ' 25 0 ~ Section 2 ' Projected Utilization of a New Conference Center ~ After carefully reviewing all of the information, we feel that the projected utilization identified, in both the Tourism Techniques study and the Economics Research Associates study are somewhat optimistic in regards to large ' meetin s. 9 1 If you examine the data supplied by ERA in regards with the number of groups that meet within the Rocky Mountain area, you will note that 145 meetings in 1986 that had between 400 and 2500 delegates. If you refer back to Table 3, you will note that most groups of that size fall into the category of association conventions. About ha f 1 of those groups require exhibit space and the average amount of exhibit space required is 25,025 square feet. Realistically, association conventions that require exhibit space will meet in larger urban t properties. u To try to develop utilization figures requires that we examine the ' historical atterns of rou p g ps that have met in the Rocky Mountains. ERA found ' that the average annual events by location were as follows: Colorado Denver 72 Colorado Springs 32 Vail/Beaver Creek 8 Boulder 4 Steamboat Springs 2 Keystone 1 Durango 1 ' Aspen 1 Breckenridge 1' Snowmass 1 Other 7 26 a Utah Salt Lake City 17 1 Other 2 Wyoming 4 Northern New Mexico Albuquerque 13 Santa Fe 3 Total 169 i Presently, of the total number of meetings within the target size range, 102 or 60.390 are being held in large urban areas. We assume that only half of these would be available to move to Vail; since we have already learned that half e of association conventions require exhibit space beyond what could likely be accommodated in the proposed new facility. This reduces the potential universe 0 ' to 118 meetings. x We further believe that many of the properties that select the Broadmoor ' do so because of it's five star ratin Althou h Vail has man lovel 9 9 Y Y properties, it does not have a facility like the Broadmoor. We believe that probably as many as 15 of the 32 events held in Colorado Springs would not move n ' to another facility. This further reduces the universe of events to 103. Vail has already captured 7.7q of this market. To assume, as ERA did, that an additional 15 events can be generated to capture an additional 14.5q of the 4 - ' market seems high when you consider the additions to supply that have occurred in Keystone, Copper Mountain, and Denver. We believe that attracting an r ' additional eight events at an average group size of 950 for an average of '4 days is much more realistic. This would generate 30,400 new roomnights for the ' community. a ~ n ' 27 A ' However, we believe that considerable new business could be generated for the facility and the community in the smaller meetings market. For example, the Tourism Techniques study indicated that group meetings of less than 500 people ~ represented 447,615 room nights. Capturing 3q of that market represents an additional 13,428 room nights. ' focal Use of a Conference FacilitX It is highly likely that some local use of a conference facility would ' occur. The Vail Valley Foundation would be likely to use the center to host American Ski Classic type events. Some of the events presently held in the ~ Dobson Ice Arena would be likely to move to another facility. ' It should be kept in mind that the existence of a facility tends to i generate uses for it. Witness the growth of activity at the Ford Amphitheatre. ' Prior to the completion of that facility, many of those events did not exist. ~ Now, that facility is part of the community, and people are finding events to ~ bring to it. We believe that a similar pattern would occur with a conference ' facility. t I 3 I i ' 28 . 1 ~k 1 Y ' Section 3 ~ Demand for Cultural Arts Facilities In this section of our report, we will examine the potential users of.a ~ cultural arts center. Then we will review the facilities that exist in the Vail ' Valley for cultural arts activities and project usage of a cultural or performing arts center. Analysis of Potential Users n . We have distributed questionnaires and interviewed as many potential users of a cultural arts facility as we could locate. From this information, we h ' developed the following list of potential users and their needs. Bravo! Colorado Bravo! Colorado was formed in 1987;. in their third season, they produced the following concerts: Date Program Location f ' July 4 National Repertory Orchestra Arrowhead at Vail July 13 Chamber Music Ford Amphitheater ' July 14 Chamber Music Chapel at Beaver Creek July 14 National Repertory Orchestra Keystone Pavilion July 15 National Repertory Orchestra Ford Amphitheater July 18 Chamber Music Chapel at Beaver Creek ' July 20 Chamber Music Vail Interfaith Chapel July Z1 Chamber Music Chapel at Beaver Creek July 23 Youth Concert Ford Amphitheater ' July 25 Chamber Music Chapel at Beaver Creek July 27 Chamber Music Vail Interfaith Chapel July 28 Chamber Music Chapel at Beaver Creek ' July 28 National Repertory Orchestra Keystone Pavilion July 29 National Repertory Orchestra Ford Amphitheater August 1 Chamber Music Chapel at Beaver Creek August 3 Rochester Philharmonic Ford Amphitheater August 4 Chamber Music Chapel at Beaver Creek August 5 Rochester Philharmonic Ford Amphitheater August 8 Rochester Philharmonic Ford Amphitheater ' August 10 Rochester Philharmonic Ford Amphitheater August 12 Rochester Philharmonic Ford Amphitheater 29 ' Of these 21 events, 9 are conducted at Ford Amphitheater, 7 are at the { Chapel at Beaver Creek, 2 are at the Vail Interfaith Chapel, 2 are in the Keystone Pavilion, and one is held at Arrowhead at Vail. In conjunction with ~ Brava! Colorado, the Vail Valley Foundation produced three concerts featuring the t Preservation Hall Jazz Band. In Bravo's second season, they held 16 concerts. ' Of these, 9 were held at the Ford Amphitheater, 2 were held at the Village Hall { in Beaver Creek (now the ballrooms of the Hyatt Regency Beaver Creek), 3 at the ' Chapel at Beaver Creek, and 2 in Keystone. { Tickets for these events may be purchased at the door, by mail order, or ' throu h Ticketmaster. All~seatin is unreserved except for boxholders at the ~ g 9 Ford Amphitheater. Bravo! Colorado relies heavily upon donations to meet the expenses of the festival. Ticket sales account for only 18% of the total revenues; the rest is n donated. This heavy reliance upon donated funds means that poor ticket sales or ' a rained out erformance is not as devastating as it might be to a privately F P t funded event. However, if Bravo! Colorado wishes to. seek funding from the x National Endowment for the Arts, this percentage of ticket sales to total budget is less than is desirable from their point of view. Audience development is one of the primary goals of Bravo! Colorado. ' Bravo! is a relatively new festival; .both the numbers of concerts and the ' diversity of music performed has increased. Many of their smaller concerts this year were sold out and if a larger space been available Bravo! could have met the ' demand for tickets. If a suitable indoor space were available, Bravo! would be interested in ' roducin a winter concert series. This series would probably consist of 4-5 i p g concerts of large chamber ensembles. 30 f R 1 ' Vail Vallev Foundation ~ The non-profit Vail Valley Foundation owns and manages the Gerald R. Ford Amphitheater. In addition to the events that they program for the Amphitheater, they have needs for performance space, practice or rehearsal facilities, meeting facilities, and workshops. If they were to manage the new facility, they would also require office space totaling 3,500 sq. feet. The Vail Valley Foundation sponsors two special events that might move to a new facilit The first is th y e American Ski Classic. This event would be ~ likely to utilize a facility for eight event days; attendance would be about 1 s, 1,200. The World Forum might use the facility for five event days and account ' for attendance of 250. Friends of the Dance ~ The Friends of the Dance are the sponsors of the recitals held as a result of classes taught at Colorado Mountain College. Presently they use the facilities at Battle Mountain High School. They estimate their usage of a s cultural arts center 20-24 times per year for performances and 10-12 times per 1 year for rehearsal. Their primary need for space is for a 500 seat theatre; 4 although they are also interested in bringing in touring dance companies and for this use they would require a facility seating 1,200. ' In addition to their needs for performance space, they would require the space to maintain costumes, build sets, and store scenery. They are willing to pay $250 per performance for use of the space. Ticket prices for their events range from $15.00 to $50.00. I 1 ' 31 ' Vail Community Theatre ~ Vail Community Theatre has a need for a permanent home. They presently produce 3 - 4 shows per year. They prefer to perform at the Cascade Theatre, an intimate 291 seat theatre. However, since the management of the Cascade Theatre ~ prefers to use the facility for showing films, it is difficult for the Theatre Group to gain access for this facility. When they do perform in the facility, ~ they pay $2,000 for use of the building for a six night run. When the Cascade Theatre is unavailable, the Community Theatre performs in the Battle Mountain High School auditorium. Battle Mountain High School does not have an orchestra pit or rigging in their auditorium. This facility is larger but it is not always available when needed and the location is not as convenient ~ as a venue in Vail would be. Sets are constructed at Battle Mountain High School. ' The audience capacity for their performances ranges from 200 - 400 for drama, 400-600 for musicals, and up to 1000 seats for special events. Their r usage of the facility would range from 20 - 24 days for performance and 7 - 12 days for rehearsal. I'~ In addition, they would like facilities for a scene shop, costume maintenance, and storage for scenery. They are willing to pay $250 per night for performances. Ticket prices for regular productions are $8.00. Ticket prices for special events vary. ~ The Vail Community Theatre would like to host the National Community 1 Theatre Contest but cannot due to lack of facilities. 1 ' 32 I 1~ 1 ' Vail.Metrooolitan Recreation District ~ The Vail Metropolitan Recreation District is responsible for the Dobson Ice Arena. The roduce the Hot u y p S comer Nights concert series in the Ford Amphitheater. It is possible that a cultural arts facility might have some $ synergism with Dobson Arena. Combining food service is a possibility; their summer figure skating school might also utilize some meeting rooms. Vail Vallev Arts Council The Vail Valley Arts Council's major need is for gallery/display space for large and small art shows. Presently they use the Vail Library; they would prefer a space designed for art/sculpture display to include security and adequate lighting. They would use this space three to four times a year for a eriods of several weeks ea h p c time. Although the Arts Council would prefer to have this space free of charge, as the art displayed would be for sale, a . commission might be paid to the facility. Another major need is studios/workshops for all media. This would enable classes to be taught for both adults and children. The Vail Valley Arts Council is not in a osition to a much if an thin for thi P p y y g, s space. Vail Vallev Academv of Dance The Vail Valley Academy of Dance is a ballet school. They desire a space for an annual or perhaps semi-annual dance recital. Attendance at this recital would be about 500 people; ticket price is $3.00. They are willing to pay $200 - ' $300 fora erformance and one rehearsal. P 33 r Eagle County School Svstem ~ The Eagle County School District provides public education for children in the greater Vail Valley. The system provides instruction for grades Kindergarten. ~ through High School (K - 12). As of 1990 the Distri ~ ct operates nine (9) separate educational facilities including: Elementary Schools in: Avon, Colorado 1 Eagle, Colorado McCoy, Colorado ~ RedCliff, Colorado Vail, Colorado Middle Schools in: Eagle, Colorado t Minturn, Colorado F High Schools in: Gypsum, Colorado ' Minturn, Colorado In Vail proper there is one public school set on land leased free of charge to the School District by the Town of Vail. The Red Sandstone Elementary School ' is located almost directly across Interstate 70 from the proposed site fora new Center, on North Fronta a Road. In 1990 Red Sandstone 1 9 E ementary School will enroll children in grades K through 4. In 1991, the school system will expand the Vail facility to include a 5th grade level to serve students in grades K through 5. The Eagle County School District is in the process of evaluating their needs and goals for the next decade, and attempting to develop a structure that will carry them through to the year 2001. Based on their study so far they wi 11 experience an incredible growth rate in the next eleven (11) years, and their projections may well be conservative. Based purely on the present rate of growth and only the "currently" platted sub- divisions the School District ex ects that the will more h ~ p y t an double their enrollment by 2001. At the minimum they expect to see the current enrollment of 34 o~ f L B ' approximately 2,100 students leap to over 5,000 in the next eleven years. For ~ example, they expect enrollment to expand at Battle Mountain High School in Minturn from the present 350 students to over 1,100 by the end of the century. ~ There will be 96 new elementary students in Avon, Colorado alone by next year. The School District is well aware that this will mean significant changes ' in every aspect of the way the District operates. They also expect to need to a; double their present physical plant over the next ten years. In the next couple of years they expect to build two new elementary schools at a bare minimum. This has lead the administration to start to explore a number of fascinating ideas to meet the challenges. Some of the ideas that they have considered at this initial point are: ~ Magnet Schools - Special study concentrations at single schools. Such a school has the primary tools and instructors to train students in science - or -foreign languages - or - the arts. This allows the school system to concentrate their advanced resources in single locations. Each school has the basics such as the "Three R's" and history. In this way k the costly advanced specialties are then not duplicated. Integrated Electronics -that could tie-the school buildings . together. This concept could also include other public buildings such as D the Town Council Building, the Library, and even a~Cultural Center. Long Distance Learning - The ability to use television and tele- conferencing to bring special instruction to the student rather than the student to special instructors. 35 s u ' Tele-Conferencing for teacher "In Service" training programs - ~ Through up and down link transmissions this would allow teachers to do ' inter-active advanced training with national "Master Teachers" ~ electronically without leaving the Vail Valley. Also, this could allow local "In Service" activities to take lace throw h p g out the year where the teachers would stay in their own buildings. ' The School Superintendent, Dr. Patricia Conran, is also well aware that such an aggressive expansion will have enormous financial and human resource ' ramifications on the whole valle Obviousl the cla sr ~ y y, s ooms alone for this expansion will be difficult enough for the District to create and finance. ~ Therefore, the District seems more than willing to explore with the Town of Vail t how a Arts/Meeting/Conference facility could help serve the needs of the School District. The longer the District can concentrate on building classrooms rather than non-class activit s aces the easier it will be to meet their u comi Y p p ng challenges. ~ At the very minimum the administration said they could see using an arts facility twelve times a year for "Arts for Young People Concerts" in dance, music, and theatre. Aside from the fact that the School District could be a otential user of ~ P Q a new Center i n more ways than convent i ona 1 wisdom would suggest, the i r needs may well put demands on the form of the new facility. At the very least, considering the information above, the financial implications would suggest that the "window K of opportunity" to fund a new Center may be very short. 4 . 8 36 f 0 9 Vaii Mountain School Vail Mountain School provides private education in the Vail Valley. As a private non-profit school they enroll approximately 180 students each school 9 year. Their curriculum includes classes for children in kindergarten through 12th grade. Again, much like the Eagle County Schools, the Vail Mountain School 9 is experiencing a rapid growth that they see continuing over the next several , years. The Vail Mountain School sounded very excited by the potential existence ~ of a new Cultural Center and the potential it could provide for the school. Of immediate benefit would be the ability to move graduation from facilities that are not really suited for a graduation ceremony to the new facility. They q~; indicated that the school would be more than willing to pay for space for graduation as they must pay for space currently. They also indicated that if a performance facility was built, the school would like to move their dance recitals into the new civic facility. The school would also like to put visual art displays in the lobbies and other locations, but felt that while the school would pay graduation and performance space rental it would not be able to pay to display art work. Colorado Mountain Colleae The Colorado Mountain College has an extensive program in dance. They do 9 not have any facilities suitable for recitals or performance, so these events (2- 3 per year) occur in the Battle Mountain High School under the auspices of the D Friends of the Dance. A particular need of the CMC is facilities for visual arts. The only space available for visual arts are two small basement classrooms; these are really not suitable spaces for these activities--they are too small, have no natural a 37 t light, and have inadequate ventilation. The Colorado Mountain College owns equipment for ceramics, photography, lithography, enameling, hot glass, flat ' glass, jewelry making and sculpture. This equipment is presently in storage because they do not have any studio facilities where it may be used. Several years ago, a program called Summer Vail existed. Summer Vail. was a series of art classes which attracted participants, both local and national, in many different visual arts. This program lasted for seven weeks; the ' attendance was 50-100 people per week. The space where this program was conducted was no longer available and the CMC was having some financial troubles. I As a cost saving move, the Summer Vail program was eliminated. If space were available, CMC would very much like to reinstate this program. C & S Productions C & S Productions is owned by Scott & Cyndi Kirkland. They produce concerts and special events in the Vail Valley. Their needs in a new facility are fora rosce i p n um theatre that seats at least 1,000, dressing rooms and an event production office. If such a facility existed they would be likely to use it 2 to 3 times per year and would be willing to rent it for $500 per use. Visual Artists Spaces v Aside from the very limited facilities at Colorado Mountain College, there are no s aces where classes could be tau ~ p ght in the visual arts. What few studio spaces exist in the valley are owned by individuals for private use. O 0 38 a E O f 1 Analysis of Existing Space ~ A number of spaces exist in Vail Valley that are used by the cultural and ' performing arts. Although some of these spaces are quite interesting, they all ~ suffer from some serious limitations for the performing and cultural arts. S aces for vi - f p sual arts activities are virtually non existent in the Vail Valley. ' Almost all of the display space is located in private galleries. Gerald R. Ford Amphitheater, Location Far East End of Central Vail . ~ Type of Space Amphitheater Designed for What Primary Use Popular Entertainment 1 Style of Seating Traditional with 4 aisles - 900 i Grass Slope - apx. 1,600 max. Type of Stage Platform - apx. 1,800 sq. ft. Width apx. 65"-O" average usable Depth apx. 28"-0" average usable e _ Wing Space NONE Fly Space NONE - 2 kip max. roof load Production Storage apx. 600 sq. ft. unassigned ~ Orchestra Pit NONE Dressing 2 - Star/Small Chorus 1 - Large Chorus/Greenroom ~ Stage Floor Concrete with no deck or . sprung floor ! Theatrical Equipment Lighting Control 2 Scene Manual - Strand Dimmers 24 Portable 2.4 KW Dimmers Road Show Power Connection 400 Amp./3 Phase/4 Wire Stage Rigging Lines NONE - except visor netting Orchestra Lift NONE Audio Reinforcement Small Professional "In House" Theatrical Sound System NONE While the Gerald R. Ford Am hitheater is an outstandin scul tural for P 9 P m that~has won several awards for architectural design, it is a better sculpture r 39 ' than a functional space for the performing arts. It presents a number of g limitations on both performers and promoters. ' The architectural limitations include the northwest facing stage which puts the summer evening sunlight directly in the performers' eyes, the lack of stage ~ lighting positions and circuits, the concrete floor that will not meet any . professional artists contracts for either dance or theatre, an odd-shaped stage that constricts the usable stage area and the area that can be supported by a ' portable stage deck, roof loading limitations, the lack of protection for production ~ equipment and musical instruments in inclement weather, the lack of wing space and fly space, noise interferences from the several surrounding sports areas, and ~ the lack of acoustical properties that allow events•to limit their requirement for audio reinforcement. However, the most severe limitation on the facility is the fact that it is only useable for fourteen weeks of the year. The fact that the facility has attracted several serious performers is more a testament of the performers' desire to come to Vail than respect of the aspects of the facility. In 1990, there are expected to be 51 events scheduled in the Gerald R. Ford A Amphitheater. A partial listing of these events follows: Event Producer No. of Performances Club Amp '90 Vail Myriad, Inc. 13 Hot Summer Nights Concert Vail Metro. Rec. Dist. 7 Patriotic Concert Town of Vail 1 D Private Functions/Other Various 6 Bravo! Colorado Bravo! Colorado 9 ~ Jerry Ford & Friends Bob Barrett/Brad Quayle 1 Preservation Hall Jazz Band Vail Valley Foundation 3 Children's Performance Workshop Vail Valley Foundation 4 Lois Lafond Concert ABC School 1 i 40 d Colorado Children's Chorale Vail Valley Foundation 4 Rock n' Reggae Festival Vail Resort Association 1 ( Little Feet Vail Myriad, Inc. 1 1 ~ Use of the Ford.Amphitheater has increased substantially in the four years that it has been o en. The numb ~ p er of events held each year follows: ~ 1990 51 Events ' 1989 33 Events ~ 1988 32 Events 1987 7 1 Events I Although the outdoor ambience of Ford Amphitheater certainly contributes 4 to patron's enjoyment of events there, that same ambience is also a producer's nightmare. If other facilities were available, we believe it likely that a minimum.of 10 events would move to indoor faci 1 ities. Unfortunately for the Ford Am hitheater the events that are most likel p y to move are those events that are produced for profit; these are the events that generally pay for their usage of the amphitheater. ~ Vail Interfaith Chanel Location Vail Villa e r 9 Type of Space Interfaith Chapel Designed for What Primary Use Worship Services Style of Seating Pews with center and side aisles Number of Seats apx. 350 E 41 r i ' Type of Stage alter .platform Width apx. 22'-O" Depth apx. 12'-0"' Wing Space NONE Fly Space NONE ~ Production Storage NONE Orchestra Pit NONE Theatrical Equipment Lighting Control House Lighting Stage Rigging Lines NONE Orchestra Lift NONE ~ Audio Reinforcement Public Address System ' Theatrical Sound System NONE ~ The Vail Interfaith Chapel, like it's sister facility in Beaver Creek, was designed as a interfaith religious facility that could su ort the communit and ~ PP Y tourist population with a place to worship. As communities with less than a few 4 thousand permanent residents, it is doubtful that either town will require larger or faith separated religious facilities for several years to come. While these chapels are beautiful facilities, and have welcomed artistic performances, the nature of their architectural. form limits the t es of YP performance arts that can be successful in such spaces. The lack of lighting control because of the windows, the size and arrangement of the altar, the. lack of off-stage space, and the lack of technical equipment support limit the chapels s to smaller lectures meetin s; and music arts g performances. Both of these facilities host speakers, small meetings, solo musicians and singers, and smaller music ensemble groups. While a few dance and theatre performances might be performed in these chapels the majority of larger music events and shows requiring production support are not appropriate to either of these spaces. In r some cases the subject matter and performance style of even smaller performances may be deemed inappropriate for a religious facility. I 42 t t Clearly, the best use of these chapels has already been explored by the arts groups of the Vail Valley. These performances might become more "year- round" or more frequent over the next several years, but will probably remain much the same. ' Cascade Theatre Location The West End of .Central Vail Type of Space Theatre Designed for What Primary Use Small Theatre and Movie House Style of Seating Continental - 2 side aisles with exits only at the front and rear ~ Number of Seats 291 Type of Stage Proscenium Width 32'-0" - with sprung floor Depth 18'-O" back of proscenium 6'-0" forestage _ Wing Space 12' stg. left/ 9' stg. right Right has some additional wing . under a storage deck that limits the height of the area Fly Space NONE Production Storage Limited to wings and upper deck Orchestra Pit NONE Theatrical Equipment Lighting Control 2 scene preset control with 24 dimmers, serving .1 beam lighting position/exposed side light pipes and the 2 on-stage electric pipes 4 Stage Rigging Lines 5 under-hung lines for masking drapery and 2 lighting pipes Orchestra Lift NONE Audio Reinforcement Public Address System Theatrical Sound System NONE SEEN 43 ' This facility has a nice sense of intimacy for theatrical production and good sightlines. While the theatre lacks elaborate theatrical support such as a fly space, fly lines, complex lighting control, orchestra space, and wing ~ space, the stage has a nice relationship to the audience and could support the t ~ ype of intimate or limited setting dramas currently the fare of the community ' theatre and dance workshops and recitals. In addition, there are two excellent dance rehearsal rooms that could double as theatre rehearsal space backstage in ' the same complex associated with the Colorado Mountain College. I The biggest weakness that the Cascade Theatre has is that ,the space is i controlled by a movie house manager who desires to have the theatre serve as a t full time movie facility. This may be the most financially rewarding use of the ~ facility, but the theatre has several features. for the support of live ' performance that are not required for film presentations. Also, the theatre, the college, and the hotel all compete for limited parking in their prime night needs. ~ Dobson Ice Arena Location Midway between Vail Village and Liorishead Type of Space Arena with a semi-permanent ice deck. x x Designed for What Primary Use Hockey and Ice Skating Style of Seating Arena style - primarily on the north side. Number of Seats 833 Fixed Arena Seats 2500 Theatre Style 120.0 Banquet Style w 44 r Type of Stage Arena Floor Width 154'-0" Depth 254'-0" Wing. Space NONE ~ Fly Space Under the Roof Structure ' Production Storage NONE Theatrical Equipment Lighting Control Limited Special Effect Lighting Stage Rigging Lines NONE Orchestra Lift NONE ! Audio Reinforcement Public Address and Skating Music ' Theatrical Sound System NONE As the name implies, Dobson is designed in the arena format. However, unlike most multi-purpose civic and university arenas that have been built in the past several years, the Dobson facility was designed primarily for ice skating events. Consequently, a number of building features that relate to both hockey ~ and figure skating control the arrangement of the architectural space. Even though the facility appears to represent just over 39,000 sq. ft. of multi-purpose arena space, any other event that would use the space must first come to terms with the ice deck and the skatin features. Removin th i fi g g e ce is z both a long and labor intensive process. Thus, except for the occasional user ~ that plans to be in the facility for a week or more, the removal of the ice deck O is not economically practical. The alternative is to cover the ice with a portable surface. In. a discussions about the Dobson Ice Arena the Consultants heard several st r' o ies a about the various unsuccessful attempts at providing a portable ice covering surface. The Consultants could design a portable cover for the ice deck that the management of the facility would find would last and serve the various potential users. However, a good solution to the floor surface would be expensive and ' would therefore re wire more non-ice use and hi her r nt 1 q g e a fees to return the a ' 45 9 . investment. In addition, unless the ice is removed, certain skating features would still remain an obstacle to other event usage. In 1990, 21 special events were scheduled for the Dobson Ice Arena. Of ~ these, 12 were ice events and 9 were non-ice events. The non-ice events are listed below: Vail Rocks Concert Ski Classic Concert Jr. Olympics Opening Ceremonies USVBA Volleyball=Tournament Future Business Leaders of American Convention World Wide Church of God Meeting Ski Club Vail Ski Swap ' Kraft/Westman Food Fair Teen New Year's Eve Party ' If more suitable facilities were available, we would anticipate that 6-8 ~ of these. events would move to the,new facilities. This would result in some loss of revenue for Dobson Ice Arena. However, it would also reduce the demands upon the facility and increase the amount of time available for skating and hockey. Since the communit seems to feel o str n 1 out v'n y s o g y ab ha i g Dobson available for recreation, the resulting loss of revenue might be tolerable. { - a Library Community Room Location Midway between Vail Village and Lionshead Type of Space Open Rectangular Room Designed for What Primary Use Meeting/Exhibit Space Style of Seating Loose Chairs C Room Configuration apx. 1200 sq. ft. of open space on a single level flat floor. Walls are available for the ~ display of art or graphic items. Room cou l.d apparently be divided into two smaller sections. 46 {f 7 Type of Stage NONE ~ Theatrical Equipment NONE Lighting Control Wall switches Stage Rigging Lines NONE Orchestra Lift NONE Audio Reinforcement Portable P.A. Theatrical Sound System NONE The Library Community Room represents the only publicly controlled meeting ~ and exhibit space of its type that the consultants could locate. Similar facilities were all part of either schools or more typically lodge/hotels in the x s valley. Because the space is a public facility that can be used free of charge; it serves a reco nizable g need in the community. However, some of the 1 imitations of the community space must be recognized: ~ the space must respect the operational needs and schedule of the library. The space has only limited security for exhibit materials and art. To increase the r security would put exceptional demands on the library's staff and administration and reduce the public access. There are little if any support materials that are permanent to the facility, so, these materials such as platforms, display structures, A/V equipment, etc. must be furnished for the event and removed at the events k conclusion. The bi est limitation ma well be the lon ter 99 y g m existence of the Community Room. If the Library runs out of space in its existing area - the only logical expansion without new construction will be into the Community Room. f s 47 R Battle Mountain Hioh School Location ~ Eagle Vail ( Type of Space Assembly Hall - Auditorium . Designed for What Primary Use Assemblies and Convocations Style of Seating Traditional with 4 aisles Number of Seats 513 P 8 Type of Stage Proscenium Width 28'-0" -Floor wood on concrete ~ Depth 15'-0" back of proscenium 6'-0" forestage Wing Space apx. 9'-O" each side - stage right has some additional wing ~ under a storage deck that limits the height of the area Fly Space NONE ~ Production Storage Limited to wings and upper deck Orchestra Pit NONE ~ Theatrical Equipment Lighting Control 2 Scene Electro Controls (no longer made) w/ 40 dimmer and house light controls. 1 Lighting Beam Position over t house and Z on stage electrics Stage Rigging Lines NONE - all dead hung pipes for stage masking and lighting pipes Orchestra Lift NONE Audio Reinforcement Public Address System ~ Theatrical Sound System NONE While the high school theatre and the community theatre have performed in ~ the Battle Mountain High School Auditorium, the space is best suited for lectures and assemblies. The acoustics in the space are not designed to support either theatrical production or music. There is a saver flutter echo across the stage and a slap back from the rear wall that could only be corrected through extensive s alterations to the auditorium's interior wall treatments. ~ The facility has no orchestra pit. To compensate for this, the architect raised the stage above the audience seating level well beyond the normal t 48 l theatrical standard and pulled the first row of seats back from the stage. This ~ adds to the acoustical problems (the ceiling over the audience remained .fixed) and makes the audience feel as if they are in a subservient relationship to the r performer. This also removes any sense of intimacy between the audience and the performers . The lack of fly space further reduces the facility's ability to support ~ events that require extensive production scenic elements. The .lack of either scene or costume shop space makes the stage the only assembly and work area, thus - increasing the time required to mount a production. 1 Chanel at Beaver Creek t Location Beaver Creek Village c Type of Space Interfaith Chapel Designed for What Primary Use Worship Services Style of Seating Pews with center and side aisles a Number of Seats apx. 350 i Type of Stage alter platform Width apx. 22'-0" Depth apx. 12'-0" Wing Space NONE Fly Space NONE b ~ Production Storage NONE Orchestra Pit NONE Theatrical Equipment Lighting Control House Lighting Stage Rigging Lines NONE Orchestra Lift NONE Audio Reinforcement Public Address System Theatrical Sound System NONE ? The Chapel at Beaver Creek, like its sister facility in Vail, was designed as a interfaith religious facility that could support the community local and 49 t t r the commercial galleries. While the public places to exhibit fine art is very limited, the number of commercial/professional galleries in Vail Proper and in the Vail Valley is truly amazing for the population base. These galleries are specifically designed for the variety of art pieces that they offer for sale. .In addition, the majority Q of these spaces have security sufficient to display the more expensive art works. F r S1 Section 4 ~ Revenue and Expense Projections Th i s section i s an analys i s of the revenues and expenses generated by three ~ different buildings. The first section of this report details the categories of revenue that can be earned in cultural arts/conference facilities and the ~ assumptions that we have made. The second section deals with the categories of expenses that would be incurred. The final section details revenue and expenses projections for. three different buildings. Potential Sources of Revenue: a The key to the feasibility of a cultural arts/conference facility is the 9 t amount of revenue that it brings in against what the building costs to operate. There are eight potential sources of revenue from a facility of this type: t 1. Rental of the Theatre. Most groups are accustomed to paying for the space ' that t ~ hey use. There are many different schemes for pricing the use of a theatre space. Some of the common rate structures are as follows: A. Four Walls Contract. A flat daily rate is charged to the user. The only services provided are those that are part of the building--house lights, rigging, and the wiring for light boards. All other expenses such as staff, lighting fixtures, sound, cleanup, etc. incur extra charges or are provided by ~ the user groups. r 52 . B. Four Walls Plus. Inc Ludes the rental of equipment plus salaries for staff members--follow spot operators, stagehands, ushers, ticket takers, box office, etc. Each use of the facility negotiates whether the producer or the hall provides the staff. Often the venue will insist that a master carpenter and ~ a master electrician be provided by the hall. ( C. Seat Charge. This is a flat fee per ticket sold and is in addition to the four walls contract or four walls plus; normally fifty cents to $1.00 per seat sold and most often retained for equipment replacement. ' D. Percent of Gross. The fee to use the facility is a percent of the gross revenue. Normally when a venue uses this arrangement, the facility manages the box office, rather than the producer. E. Percent of Gross with Floor. In this arrangement, the facility takes 5 a percent of the gross or a minimum dollar amount, whichever is higher. This plan protects the facility from poorly promoted or unpopular acts. Again, under ' this scheme, the facility normally manages the box office. It is also quite common for the theatre to take a percentage or flat fee of any merchandise sold in the lobbies. In order to develop revenue projections, we surveyed user groups to find out what the market would bear. Our survey of groups who might use the faci 1 ity indicates that local, not-for-profit groups would be able to pay $200-250 per performance night and $100-125 for rehearsal use of the theatre. These groups would also ~ - expect this usage rate to include basic lighting and audio equipment. ' 53 , For profit users indicated that they were willing to pay $750-$1000 per day for E use of the theatre. Professional users felt that this rental rate should include use of the dressing rooms and some users desired basic audio and li htin 9 9 P 1 equipment. Others indicated that they would provide their own audio and lighting ~ equipment. ~ For the purposes of this study, we are assuming that the facility would charge the following rates: t Performance Rehearsal Set-Up Local Not-for-profit $250.00 - $125.00 $125.00 Local Professional $800.00 $400.00 $400.00 ' Other Professional $1000.00 $1000.00 $1000.00 In one model, we have assumed that the building would contain two theatres-one larger and one smaller. The users of the smaller theatre would most likel be Y s 1 local not-for-profit groups, so the above rates, would apply for that model as well. However, the rates for the larger theatre would be $800 for performances by local groups and $1000 for all other groups. In addition, all groups other than local not-for- rofit would a fifteen ercent P PY P r of lobby merchandise sales with a $50.00 minimum. R . 54 t 1 2. Concessions.. Concessions are usually a significant source of revenue for a theatre/conference operation. The facility may choose to run their own concession operation or contract it out with an outside vendor. This is usually dependent upon the complexity of the concessions provided. If only soft drinks are available, it is more common for the facility to run its own operation. If 1 alcoholic beverages are available, some owners choose to limit their liability by~contracting out the concessions. Others choose the generally more profitable route of running their own. If full food service is a feature, most facilities ' contract it out and take between 7 and 25 percent of the gross sales as their fee. The industry standard is 159'0. The higher figure usually applies if the equipment is owned by the building owner rather than the concessionaire. However, the rate paid by the concessionaire at the Gerald Ford Amphitheater is ' considerably less than 15%. The Ford Amphitheater is a somewhat unusual ' situation, however, in that patrons are permitted to bring in their own food and beverages. This policy reduces revenue for both the concessionaire and the building owner. Our projections are based upon net (after cost of goods sold and labor) revenue ' of $.38 per seat at events where alcohol is not sold and $1.02 at events where i alcohol is available and the facility operates the concession. This compares 1 favorably with concession operations in cities where the cost of living is similar to that of the Vail Valley. In those models where food service/concessions are contracted out, we have assumed a 15% commission on gross food/beverage sales. ' 55 { We estimate that average daily per capita food expenditures total $46.00. In these models that contain a conference center, we have assumed that each group will have one banquet and will serve one other meal per day in the facility. This would total an average of $16.00 per capita per day, leaving $30.00 per ~ capita per day to be spent elsewhere in the community. 3. Restaurant. A restaurant servin lunch and dinner is often a common ~ g component of a performing arts center. Patrons will often attend dinner before or after a show. Employees of the center and the surrounding area may frequent an on-premises eating establishment. Although the ownership of this building has yet to be determined, if it were to be owned by the Town of Vail, there is ample ' precedent nation-wide for private facilities in public buildin s. In the model ~ g that includes a restaurant we have assumed that the restaurant will serve an ~ average of 330 lunches per week at an average check of $8.75 and an average of ' 225 dinners per week at an average check of $14.75. This would generate annual gross revenue of $322,725. Net revenue to the facility is 15 percent or $48,409. s ' 4. Retail Sales. A retail sales area is common in many facilities. Items for x sale might include things with the logo of various user groups, gifts, postcards, ' and items needed by conference attendees. These groups benefit by having these items available on a year-round basis; sale of such items help in building identity and awareness of the group. This space would not be large enou h to . 9 ' really compete with any local stores; it is primarily a tool to generate ~ awareness of the arts groups who use the space and make some contribution to revenue. t 56 Ty~~ically, retail space of this nature has annual sales of $45 - $75 per square . foot. Cost of goods sold is assumed to be 50q of gross sales. We have assumed th~~t the gallery receptionist doubles as the gift shop salesperson, so no 1 additional personnel costs are necessary. It might also be possible to partially ~ staff the retail area with volunteers. ~ Thee primary benefit of a retail space is to build identify for the local groups wh~~ have merchandise for sale within it. ~ 5. Box Office Services. Theatres vary in their arrangements regarding use of the box office. Some venues permit free use of the box office. Others provide their own staff and charge user groups a percentage of ticket sales. This pe~rcenta a ran es from 2% to 6%. We believe that all arts rou s in the Vail ~ g g 9 P I Valley would benefit from a centralized box office operation. If this facility ~ had a staffed box office operation and tickets for all community arts events were available through it, the potential for ticket sales is in excess of $750,000. We feel that no existing grou in the Vail Valle reall has the ex ertise or the P Y Y P staff to manage afull-service box office operation. We strongly believe that t' a central accessible location for sales would. be a tremendous advantage to all arts groups in the valley. For .example, most groups use general admission. seating, despite patron's preference for reserved seats, because they lack the ability to sell reserved seats. Y F 1 57 t If this facility were to invest in the computer equipment necessary to generate reserved seat tickets for this facility, we believe that all parties involved would benefit. S At the present time, the investment necessary to link multiple locations to allow simultaneous sale of reserved tickets is substantial. We envision, therefore, that advance sale reserved seats be available for all performances in the ' Cultural Arts Center and that eneral admission t' kets b vail thr h t g ~c e a able oug he Cultural Arts Center box office for all other venues. The technology for' ~ computerized ticketing is changing very rapidly; we would anticipate that the cost to link remote locations will drop within the next two years. At that time, reserved seat tickets could be sold from a number of different locations for any number of venues. A centralized box office should accept Visa, Mastercard, Discover, American Express, and Diners Club for the convenience of residents and visitors to your community. To accept these credit cards is not feasible for most local arts rou s; the abilit to. char a tickets is an im ortant sales mark tin 9 P y g p / e g tool for many types of events. 6. Eauioment Rental. Rental of various types of equipment is an important revenue source for both theatres and conference centers. Most local groups need to rent virtuall all t es of theatrical a ui ment. A y yp q p detail of the equipment 1 we would suggest the center have available for rental, cost, expected life, and ~ daily rental rate is contained in Table 10. Based upon our experience, a smaller conference would generate $75 in rental income; a large meeting would generate 58 ~ ~ TABLE to s~r~ir~? RENTAL EQulrt,rrrr i ITEM QUANTITY PURCHASE COST USEFUL LIFE RENTAL COST 6° ERF Spotlights 20 $ 390.00 10 years $ 6.00 8' ERF Spotlights 20 $ 390.00 10 ears $ 8.00 Y 6° Fresnels 10 $ 275.00 10 years $ 5.00 8' Fresnels 10 $ 320.00 10 years $ 10.00 CYC Strips B . $ 600.00 10 years $ 25.00 PAR Cans 15 $ 175.00 10 years $ 5,00 Follow Spots 2 $9,400.00 10 ears $ 125.00 Y ' Fixture Lamps 150 $ 40.00 2,000 hours $ 10.00 ~ Lighting Console 1 $19,500.00 5 years $ 125.00 Lecterns w/ AV. 3 $3,500.00 8 years $ 30.00 = Portable Platforms 12 $ 975.00 10 years $ 10.00 Audio Mixing Console 1 $21,500.00. 5 ears $ 125.00 ~ y Microphones 12 $ 800.00 3 years $ 30.00 Choral Risers 5 $ 675.00 10 years $ 10.00 1 Music Stands 60 $ 125.00 5 years $ 2.00 Calculators 2 $ 125.00 2 years $ 3.00 Copier 1 $1,500.00 3 years $ .05 Typewriters 1 $ 350.00 4 years $ 5.00 ~ Printers 2 $ 650.00 2 years $ 25.00 1 PC Computers 2 $4,500.00 3 years $ 50.00 Television Monitors 4 $ 600.00 5 years $ 10.00 _ Slide Projectors 8 $ 650.00 4 ears $ 10.00 Y Video Projectors 3 $ 650.00 4 years $ 10,00 r Filn Projectors 2 $ 650.00 4 years $ 10,00 a t Screens 8 $ 250.00 4 years $ 5.00 $350. The average theatre would generate $300 in rental income per use day. However, we feel it unlikely that not-for-profit groups in the Vail Valley could afford to pay these rental fees, so we have estimated $100 in rental income per use day. 7.~ Conference Center Rental. Two major methods exist for collecting rental income for the conference center. . A. Flat Rental Rate. Many convention centers charge user groups a flat rate daily rental for use of their facilities. In many large cities, the t agreement takes the form of a four wall plus contract. In most cases,. however, j the user groups must use labor from the pool provided by the unions that have ' jurisdiction over the facility. k i 1 n n I B. Hidden Rental. Most hotels and small convention facilities provide t meeting rooms "free" if enough rooms are rented and/or food/beverage sales exceed ~ a certain minimum. ' Most of~the types of groups that Vail would wish to attract generally meet in lar a hotels and ar ~ g e therefore not accustomed to paying for space. Most of the t competing facilities in the Rocky Mountains do not charge for space. In order to remain competitive, we recommend that the Center receive a commission on room nights sold for conferences and other events. This has the advantage of equitably distributing the burden among those who benefit from the facility. Our mod 1 e s assume that this commission ~s 7~. 59 8. Studio Rental. One model includes studio space. As we envision this, this ~ space would be used by various groups, primarily for classes. Colorado Mountain College indicated that they had much of the equipment in storage that would be required to equip these spaces. The potential of this space to generate revenue ~ is rather small. Our surveys indicate that artists in other communities pay between $1.00 and $2.50 per square foot annually to rent studio space. ~ . ' Another way to consider potential income of that space is to figure class use of I the space. If you were to have five eight week sessions annually in each of the ~ following areas--life drawing, painting, sculpture, photography, printmaking, flat glass, jewelry, and ceramics, there would be forty classes annually. If ~ each class was attended by 15 people, and $10 of the fee for each class was revenue for the building, total revenue would be $6,000. r ~ Other assumptions: I We have not planned that the art gallery would generate any revenue for the facility. Our reasoning is that this is to be a museum or display gallery rather than a sales area. It might be possible to help fund this building with "special event" parking fees in the adjacent garage. If you assume that 30,000 people might attend evening events in the theatre and that 2.4 people would travel in each vehicle and 65% of patrons would drive, a $2.00 parking fee would generate $16,250. We have not i included this in our projections since parking fees appear to be a somewhat ' sensitive area with the public. ~ ~ , 60 t t The suggested building includes a coat check room. Although many older ~ facilities include coat check s aces, we have found that in man p y parts of the country, patrons prefer to sit on their coats rather than check them. We are uncertain of the local preference, so we have, not included revenue from this source. If an average of 350 patrons check their coats at each of 30 winter events, and the charge was $.50, total revenue from this activity would be ~ $5,250. Labor costs of 8 man hours per event at $8.00 per hour would total $1,920. Annual profit from the coat check would be $3,330. f ~ Expenses The expenses necessary to operate a cultural arts faci 1 ity vary with the type and r size of the building. Our models assume expenses in the following categories: t 1. Salaries/F a rin a Benefits s Our models assume that the building manager will earn a salary of $35,000 to $65,000 per year depending upon the size/type of the building. The facility ' would require a technical director on a year-round basis. If a smaller facility w re b ' e uilt, a less experienced person could be hired. A larger, more complex facility would require greater expertise. We believe that the range for this r position would be $27,000 to $36,000. Box office staff generally earns $7.50 per hour. Clerical staff is assumed to earn $7.50 to $9.00 per hour, depending upon ' 61 I duties. No salaries have been included for a building engineer, as labor costs ~ for that are included in.the square foot maintenance cost. No salaries have been included for sta ehands foil g owspot operators, ticket takers,etc. We are assuming that either user groups will provide these services for themselves; or ~ else they will be charged for these services at actual cost. For the model that includes a conference center, we are assuming that the facility will need a ~ sales/marketing director at an annual salary of $33,000. The conference center will also re uire one and one half a let r v' - ~ q p op o p o ide set up/tear down help at $7.50 per hour. 1 i ~ Z. Fringe Benefits i Fringe benefits include FICA, health insurance, unemployment taxes, and pension plan contribution and are assumed to total 23% of payroll. 3. Janitorial Service Data from the Building Owners and Managers Association indicates that cleaning/janitorial service costs $.57 per square foot for cleaning. This includes both supplies and labor. if D ferent models apply different assumptions as to who is responsible for cleaning certain parts of the building. If model A or B is selected, we have assumed that the building will operate its own concessions and therefore,'the responsibility for cleaning those.Jareas belongs to the building. In model C, 62 i 4 a~ i we have assumed that the concessionaire is responsible for cleaning all of the areas associated with food service (kitchen, restaurant, holding pantries, i' concession areas, etc). We have also assumed that cleaning of the stage, ' backstage, and production office areas will either be done by the user groups or will incur additional charges. i 4. Suonlies . This category includes office supplies and box office supplies like ticket stock, 1 rinter ribbons, etc. Cleanin su lies are included in h P g pp t e per square foot figures for cleaning. Likewise, maintenance supplies (light bulbs, paper products, etc.) are included in the maintenance figure. Our experience with office supplies indicates that this varies most closely with number of staff members. Our models assume that office supply costs will total $1300 per year ' per staff member. Box office su lies envelo es ticket stock rinter ri b PP ( P P b, ons, ' etc.) are estimated to total $.O1 per ticket sold. A major category of expenses is lamps for theatrical lights. A lamp costs between $45 and $125 and may last for 500 hours . Our mode 1 s assume that 24 1 i ght i ng fixtures are i nc laded with the 1 rental of the theatre; these lamps should last for about 120 to 150 event days. 5. Maintenance Statistics from BOMA and Jones & Phillips Associates indicates that maintenance of the building and its mechanical systems will average $.65 per square foot per year. Our estimates exclude the stage area, orchestra pit, and backstage space s 63 1 from the per square foot cost. The annual maintenance for systems in those 1 spaces are as follows: ~ Rigging System $500.00 1 i Orchestra Lift - Annual Inspection $850.00 ' Lighting System $1,500.00 ~ Sound System $850.00 t fi 6. Utilities/Trash Removal Data from the Building Owners and Managers Association indicates that average ~ utility costs for a facility in Denver that is less than 9 years old run $1.36 per square foot. Using data supplied by Public Service of Colorado to adjust for ' Vail's greater number of heating degree days and higher costs for utilities, we } estimate that utilities will cost $1.66 per square foot. The amount of trash generated by the facility depends heavily upon usage. This ~ model assumes that the waste generated by the a full food service operation will the r ~ esponsibility of the concessionaire. If the facility does not include scenery shops, the monthly volume of trash should not exceed 40 cubic yards. BFI Waste charges $250 to pick up a 40 yard container. The landfill fee is $11.00 per ton. We estimate,.therefore, that trash removal will cost $3150 annually. i , 64 i 1 7. Telephone 1 Information supplied by U.S. West indicates that if the building had only one line, the monthly cost would be $34.21. If the building has more than one telephone line, the cost is $36.71 for each line. There is an additional $5.00 ' per line charge if the calls are to rotate to the next open line. This is an essential feature for a box office. The number of telephone lines needed will vary with the type, of building planned, the level of activity, and the number of staff. If the facility operates a full- 1 service box office for all events in the valley, additional phone lines are needed for personnel. In addition, a full service box office will require one line for a credit card point-of-sale terminal. If the facility has a conference center, a dedicated fax line will be required. 8. Insurance It is very difficult to estimate the costs of insurance since it is unclear who might own this building. Based on information from a commercial insurer, who provided this information on the basis that the quote not be attributed, we have estimated that property insurance for the building and contents will run $9,900 annually for a building that costs $10,000,000 to $14,850 for a y$15,000,000 building. 65 ' Liability insurance is more difficult to estimate; however, it runs roughly ( $5,000 to $7,000 for the first million of coverage and $2,500 to $3,400 for the second million. Again, if the city owns this facility, the incremental cost to ~ add coverage for this building may not be as great. 1 Tlie potential liability for owners of theatres is substantial as. theatres can be . ~ very dangerous places. The owner of the facility can help minimize the risk by insisting that untrained users not be permitted to operate the more hazardous ~ ~ aspects of the building like the rigging, orchestra lift, or lighting systems. ' In man facilities of this t i y ype, the building. owner insists that the technical 1 director of the theatre train potential users prior to their being permitted to use the facility. We believe that this is a good policy wherever non- ' professional groups are involved. 9 Eaui~ment Replacement I The amount and type of equipment purchased f.or the building obviously depends upon building type. A detail of the specialty theatre, conference, and food service equipment appears for each model. This table lists the item, the ' uantit re aired the urchase rice the ex ected 7ife~ and the q Y q p p p replacement allowance. Other Assumptions: . We have not included any salaries for a museum curator or a gallery ' director. If these eo le are to be hired sal ries for p p a the positions will most likely have to be funded from other sources. 66 f Revenue/Expenses Models .There are literally thousands of different buildings that could be built for Vail Valley. Based upon our survey of potential user groups and an analysis of the conference market, we find the following buildings to meet at least some of the t needs that we have identified: ' A. Concert Stage ~ This building would consist of a 750 seat theatre, with 450 seats on the main floor and 300 seats in the balcony. The facility would not have a fly house but ( would have excellent acoustics for musical events. The building would have ' administrative offices, concession areas, an attractive lobby, and a loading f ~ dock. ~ B. Cultural Arts Center I This building would have a 1200 seat theatre and a 350 seat theatre. In addition, it would have studio space for classes, an art gallery, concession areas, a lobby, loading dock, and storage space. t 6 67 i , 1 C. Cultural Arts/Conference Center This is the building that we believe would come the closest to meeting all of the diverse needs of the valley. This building contains a 1200 seat theatre, a large ballroom, meeting rooms, a restaurant, and retail space. Accordingly, this building is detailed in the building program developed by The Mathes Group: For each of these models, we•have prepared an analysis of the potential usage, tab les i nd i cat ing the total square footage of the building by area, the building ' costs and an analysis of the potential operating revenues and expenses. ' For the model that include a conference center, the projections are based upon ' the fourth year of operation. The utilization of a conference facility during the first three years of operation would be considerably less .since conferences are reluctant to book ,their events into uncompleted facilities. With a three year lead time for booking large events, the fourth year of operation would be' the first "full" year of usage. (This is not to say that the conference portion of the building would go unused for the first .three years--only that it would not be until the fourth year that it would be fully utilized.) For models without t a conference facility, the projections are based upon the third year of t operation: ~ For the model that includes a conference center, we are assuming that this ' faci lity is aggressively marketed by a professional staff and that scheduled airline service into the area is available. ' r a ' 68 e. 1 Model A. Concert Stage This auditorium would be a small, intimate space ideal for musical events. It would be adequate for limited dance performance, although without a fly house, the use of scenery would be restricted. Local theatre might wish to use the space but without a flyhouse, it offers no particular advantage over existing facilities. It would be an excellent space for lectures, pageants, graduation ceremonies, etc. The facility would not have an orchestra pit, so musical theatre and/or o era would be difficul p t The space would not be suitable for opera, multi-set theatrical productions, or multi-set ballet/dance performances. The major drawback of. th i s f ac i l i ty i s that i t i s not l arge enough to attract outside promoters. At only 750 seats, ticket prices would have to be extremely high in order for the promotor to recover their costs. An additional problem with the lack of a fl house i th y s at it severely limas the kinds and types of performances that the space can support. Without a fly house, theatrical performances are limited to single set shows, and scenery elements for ballet or dance are severely limited. Although this space would be considerably more elegant and have better sightiines and acoustics, it would be only 200 seats larger than Battle Mountain High School and equipped in a similar fashion. The tota 1 square footage of th i s building would be 23, 490. The breakdown of th i s follows as Table 11. A building of this type would primarily serve the needs of local groups. Some of the events would move from existing facilities in the Valley. Some ~1 groups like Bravo! Colorado would likely move some of their more popular chamber events from the chapels to this facility. This represents 8 of the total events i I~ 69 i + Table 11 - Square Footage and Construction Cost Model A. Concert Stage ~ Net Const. Total square Cost Const. Area Area Name Footage ($/sf) Cost 1 Administrative 870 $125 $108,750 2 Vestibules 575 $125 $71,8?5 3 Prefunction/Theatre Lobby 3,495 $160 $559,200 4 Box Office 350 $125 $43,750 4 Concession Areas 1,000 $125 $125,000 + 5 Coat Check 200 $125 $25,000 6 Theatre Seating 4,875 $175 $853,125 Orchestra Pit 0 $175 $0. Stage Area 1,,800 $175 $315,000 i Backstage/Wings 2,025 $175 $354,375 Scenery Storage 1,500 $175 $262,500 ~ Lighting/Audio Control 300 $175 $52,500 1 Green Room 300 $175 $52,500 Dressing Rooms 1,950 $175 $341,250 + Day of Show Office .225 $175 $39,375 Technical Dir. Office 225 $175 $39,375 7 Art Gallery 0 $160 $0 8 Studio Space 0 $125 $0 9 Rehearsal Space ~0 $125 $0 10 Restaurant 0 $160 $0 it Food Service Area 300 $125 $37,500 + 12 Retail Space 0 $125 $0 13 Conference Concourse 0 $160 $0 14 Ballroom 0 $160 $0 + 15 Conference Rooms 0 $160 $0 16 Engineering/Janitorial ~ 300 $125 $37,500 17 Service Corridor 0 $125 $0 18 Truck Dock 700 $125 $87,500 t Auxillary Areas __7_500_ _$125_ __$937_500_ ~ Totals 28,490 $4,343,575 s P + I that might use this facility. With an adequate facility, Bravo! would be likely 1 ~ to schedule a winter concert series. A 750 seat theatre would likely be too small to meet the demand for tickets; this model assumes that for four events would be performed on two or three successive nights. Friends of the Dance would likely move their events to a facility of this type. However, the lack of a fly house would severely limit the use of scenery. We have assumed that the Vail Community Theatre would also use this ! facility, largely because of it's availability. However, without a flyhouse, the ability of this space to support theatre is compromised. the usage of this facility by conference groups would be quite limited, as groups of 750 can be accommodated at the Marriott, the Westin and the Hyatt Regency at Beaver Creek. Perhaps four events per year would require the raked t floor and specialized lighting and audio that a theatre can provide. g Since the Valley does not have a facility of this size, it is likely that some events that do not now exist would use this facility. Communities that have l facilities like this often have events such a fashion shows, travel lecture series, film festivals, etc. A conservative estimate of these types of events would total 10 per year, although it is likely that this number would grow as the community grows. Table 12 indicates that probable usage of this facility would total 84 k event days and 26 rehearsal/setup days. # Of these event days, only 4 would be by for profit users. The revenue generated, therefore would be: I 70 R a Table 12 Potential Theatre Use Model A Estimated Potential Performance Rehearsal Set-Up Average Total Average Ticket User Days Days Days Attendence Audience Ticket Price Sales Bravo! Colorado 16 0 2 475 7600 Vail Valley Foundation 0 0 0 0 0 $18.00 $136,800.00 Friends of the Dance 20 10 0 425 8500 $15.00 $127,500.00 Vail Community Theatre 20 7 0 285 5700 Vail Academe of Dance 1 1 0 500 500 $3.00 $$1,500.00 Eagle County School System 12 0 0 600 7200 Vail Mountain School 1 0 0 300 300 C& S Productions 0 0 0 0 0 Conference Use, 4 0 2 400 1600 ' Other Uses 10 2 2 .490 4900 $5.00 $24,500.00 Total 84 20 6 3475 36300 $335,900.00 Potential Box Office Income $13,436.00 Not-For-Profit 80 days at $ 250.00 $20,000.00 Rehearsal/Setup 24 days at 125.00 3,000.00 Other 4 days at $1000.00 4,000.00 Other Setup 2 days at $1000.00 2,000.00 Total $29,000.00 Concession revenue would be a major source of revenue for this facility. Beverages, both soft and alcoholic, would be the major items for sale. We nfined to the lobb this reduces wear and recommend that food and beverages be co y, ~ tear on the theatre. This limits the items served to things that can be consumed during a twenty minute intermission. As concession items will be quite simple, we would recommend that the facility manage its own concessions to maximize revenue. Not all events in the facility would have concessions. ~It is not as likely that the private school events would desire concession service; other events may ~ not have an intermission. Experience of other facilities shows that net revenue per seat averages $.38 at events where alcohol is not sold and $1.02 at events where alcohol is sold. This model assumes that 17,170 seats will be sold at ~r events that have alcoholic beverages available and 4,900 seats will be sold at ~t events that have only soft drinks available. This suggests that total revenue ~ from concessions will be $19,375. We recommend that all events that use this facility be required to use box office service provided by the facility. Not only does this provide significant v to es to the communit rou s who use the facilit it rovides a source of ad an g yl g p Y~ P revenue for the facility. 'This would generate $13,436 in revenue. If the box i 71 1 i i office were to handle ticket sales for all events in the valley, revenue from ~ this source could be `increased. The primary users of this facilit would not be able to afford to rent a Y f large amount of equipment. Most of the groups that we surveyed indicated that ~ a basic amount of equipment should be available with the facility. We recommend that the use of the following types of equipment be available to user groups who ~ are trained in its use: 4 Lighting Control Board ~ 24 Lighting Fixtures Sound System # Video Projector Film Projector Slide Projector Podium Screen ~ Main Curtain 4 Sets of Legs and Borders 1 Back Curtain Additional equipment that is needed could be provided by the user or rented from the facility. We have assumed that average rental income for equipment is $100 per use day. This would generate $8,400 in income. f I. 72 { Expenses: . Salaries & Frin a Benefits: 9 I i This facility would require a director at $42,000, a technical director at $27,000 and box office/secretary at $17,680. Fringe benefits at 23% of payroll ~ would total $19,950. Janitorial Service: I Th i s building tots 1 s 28, 490 square feet . We have exc 1 uded the square footage for E the stage area, backstage/wings, and scenery storage, which totals 5,325 square feet, from that area which re wires cleanin This leaves 23 165 s ware feet q 9 ~ q t which will require cleaning about two times per week. Based upon the figure of $.57 per square foot, janitorial service would run $13,205 annually. E Supplies: t Supplies would run: Office Supplies ~ $3,900.00 Ticket Supplies 363.00 Theatrical Lamps $1,440.00 Total $5,703.00 73 i Maintenance: This building totals 28,490 square feet. We have excluded the square footage for the stage area, backstage/wings, lighting/audio control, and auxiliary areas which totals 11,625 square feet, from the area that requires maintenance. This leaves 16,865 square feet at $.65 per square foot for annual maintenance costs ~ of $10,962. Maintenance of the theatrical systems would total $2350 annually for total annual maintenance costs of $13,312. f Utilities: Utilities run $1.66 er s uare foot for a total annu p q al cost of $47,293. Trash removal will run $3,150 annually. i Telephone: k This building will require four lines: three voice and one for a credit card point-of-sale terminal. The annual cost for the lines would be $1,943. Long { distance charges for this facility should be relatively minor. We have allowed ' $600 for this. ¦ Insurance: { We anticipate that insurance will run $12,500 annually. ' 74 1 ' Table 13 Theatrical and Concession Equipment Replacement Allowance Model A Ex ected Annual P Purchase Life Replacement ~______Type_of_Equipment___-___ __Price___ in_Years -Allowance_ Theatre: Rigging System $120,000 50 $2,400 Sound System $125,000 20 $6,250 Lighting Control System $275,000 20 $13,750 Lighting Control Fixtures Par Fixtures $2,625 20 $131 Striplights $4,800 20 $240 Ellipsiodials $1,560 20 ~ $78 Follow Spots $9,400 20 $470 Other Lighting Fixtures 14,590 20 $730 1 Box Office Equipment Computer System, Software $7,800 5 $1,560 Ticket Printers $1,000 2 $500 Screen $5,500 50 $110 Projector $2,500 20 $125 Food Service Equipment: Concession Stands $52,500 25 $2,100 Annual Equipment Replacement Allowance $28,444 1 ~1 . 1 i I f Table 14 Annual Statement of.Revenue and Expense Model A - Concert Hall i Revenuei - ~ Rental of Main Theatre $29,000 Rental of Small Theatre $0 Studio Space Rental $0 ~ Concessions $19,375 Restaurant $0 Retail Sales $0 Box Office Services $13,436 f Equipment Rental $8,400 Conference Center Use Commission ~ Total Revenue: $70,21 1 ~ Expenses: . Staff Director ~ $42,000 Technical Director $27,000 Box Office/Clerical ~ $17,680 Sales/Marketing Manager Conference Set-Up Labor € Fringe Benefits $19 950 Janitorial Service $13,205 Supplies $5,703 Maintenance $13,312 ' Utilities $47,293 Trash Removal $3,150 Telephone $2,543 t Insurance $12,500 . 1 Equipment Replacement ~ ----$28'444- Total Expenses: $232,780 Total Operating Subsidy Required ($162,569) i 1 s f 4 1 Equipment Replacement: Table 13 lists the purchase price of the theatrical and concession equipment, the ~ expected life and the replacement allowance. This totals $28,444 annually. 1 Operating Deficit: Table 14 summarizes the revenue and expense projections for this building. The ~ annual projected operating deficit for this building is $162,569. a 1 1 4 F 1 L { 1 75 Model B. Cultural Arts Center This facility would be ideal for all of the cultural activities in the. ' valley. It would contain two theatres. The larger would seat 1200 people, 750 on the main floor and 450 in the balcony. It would have a fly house with 60 e rigging lines, a sprung wooden floor, full lighting and audio systems, and be capable of supporting all types of musical events, theatre and ballet. The second theatre would be a small, intimate space seating 350 on one level. This ' theatre would not have a fly house but would contain full lighting and audio equipment and have a floor suitable for dance. It would be an ideal for the smaller events now held in the Valley--chamber music concerts, productions by the Vail Community Theatre, small dance recitals, lectures, etc. Another feature of the building is rehearsal space that could be used by ' various local users. In addition, the building contains an art gallery and studio space for use in teaching classes in the visual arts. This facility would be a true cultural arts center. The two stages would meet all of the performing arts needs; groups would not be forced to compromise with a house that would be too big or too small for their activities. .Rehearsal space would be available. Studio space would be available to hold classes in painting, sculpture, jewelry making, etc. The art gallery would provide a home for traveling shows or perhaps a permanent collection. This building would require 59,600 square feet. A detail of the square footage follows as Table 15. . The usage of this facility by conference groups would still be quite limited. While this facility could handle a group of 1200, a group that large ' would strain the other facilities available. Perhaps six events per year would 76 E Q r ~ Table 15 - Square Footage and Construction Cost Model B. Cultural Arts Center ~ Net Const. Total Square Cost Const. Area Area Name Footage ($/sf) Cost 1 Administrative 1,200 $125 $150,000 2 Vestibules 575 $125 $71,875 3 Prefunction/Theatre Lobby 7,300 $160 $1,168,000 4 Box Office 400 $125 $50,000 4 Concession Areas 1,400 $125 $175,000 ` 5 Coat Check 375 $125 $46,875 6 Theatre - Large Seating 4,875 $175 $853,125 Orchestra Pit 300 $175 $52,500 Stage Area 1,800 $175 $315,000 Backstage/Wings 2,025 $175 $354,375 Scenery Storage 1,500 $175 $262,500 r ~ Lighting/Audio Control 300 $175 $52,500 Green Room 300 $175 $52,500 Dressing Rooms 1,950 $175 $341,250 Day of Show Office 225 $175 $39,375 Technical Dir. Office 225 $175 $39,375 6A Theatre - Small Seating 2275 $175 $398,125 Stage Area 1800 $175 $315,000 Backstage/Wings 2025 $175 $354,375 Scenery Storage 1500 $175 $262,500 Lighting/Audio Control 300 $175 $52,500 e Green Room 150 $175 $26,250 Dressing Rooms 1000 $175 $275,000 7 Art Gallery 2,400 $160. $384,000 8 Studio Space 3,600 $125 $450,000 9 Rehearsal Space 2,000 $125 $250,000 10 Restaurant 0 $160 $0 it Food Service Area 300 $125 $37,500 12 Retail Space 0 $125 $0 13 Conference Concourse 0 $160 $0 14 Ballroom 0 $160 $0 15 Conference Rooms 0 $160 $0 16 Engineering/Janitorial 300 $125 $37,500 17 Service Corridor 300 $125 $37,500 18 Truck Dock 1,400 $125 $175,000 Auxillary Areas 15,500 $125 $1,937,500 Totals 59 600 8 917 000 i 8 require the raked floor and specialized lighting and audio that a theatre can o provide. Th i s facility i s l ar a enou h to attract the attention of rofes s i ona l 9 9 P p promoters. We have estimated that six productions a year would use this facility. Since the Valley does not have a facility of this size, it is likely that j some events that do not now exist would use this facility. Communities that have facilities like this often have events such a fashion shows travel lecture a series, film festivals, etc. A conservative estimate of these types of events would total 8 uses per year of the large theatre and 8 uses per year of the small theatre, although it is likely that this number would grow as the community grows. Table 16 indicates that probable usage of this facility would total 102 event days and 41 rehearsal/setup days. Of these event days, 12 would be by not-for-profit users. The revenue generated, therefore would be: Large Theatre Not=For-Profit 38 days at 800.00 $30,400.00 Rehearsal/Setup 21 days at $ 400.00 8,400.00 s Profit 12 days at $1000.00 12,000.40 Profit Setup 2 days at $1000.00 2,000.00 77 ~ _r~R ~..nM ®wwn ® ®,rr~ ®u..~ ®.+~w ® w ®w. b ® uw Table 16 ' Potential Theatre Use Model B Estimated Potential Performance Rehearsal Set-Up Average Total Average Ticket User Days Days Days Attendence Audience Ticket Price Sales - - - Large Theatre: Bravo! Colorado 4 0 2 1100 4400 $20.00 $88,000.00 Vail Valley Foundation 2 2 0 1000 2000 $20,00 $40,000.00 Friends of the Dance 5 5 0 875 4375 Vail Academy of Dance 1 1 0 500 500 $$3.00 $1$1,500.00 Eagle Cowty School System 12 0 0 600 7200 School System Musical Production ~ 6 6 1 500 3000 $3,00 $9,000.00 C& S Productions 2 0 0 1000 2000 $15.00 $30,000.00 Other Professional Productions 4 0 0 1000 4000 Conference Use 4 0' 2 1000 4000 $20,00 $80,000.00 Other Uses 8 2 2 900 7200 $15,00 $108,000.00 Small Theatre: Bravo! Colorardo 8 0 2 350 2800 $15.00 $42,000.00 Vail Commwity Theatre 20 7 0 285 5700 $8.00 $45,600.00 Friends of the Dance 15 5 0 350 5250 $15.00 $78,750.00 Vail Mowtain School ~ 1 0 0 300 300 Other Uses 8 2 2 300 2400 $10.00 $24,000.00 Total 100 30 11 10060 55125 $656,225.00 Potential Box Office Income $26,249.00 Small Theatre Not-For-Profit 52 days at $ 250.00 13,000.00 Rehearsal/Setup 18 days at $1000.00 2,000.00 ~ Total $67,800.00 This facility would also have studio space. As mentioned earlier, we have assumed that a portion of the fees paid by participants in art classes would go t to support the building. The total for this source of income is $6,000. Concession revenue would be a major source of revenue for this facility. Beverages, both soft and alcoholic, would be the major items for sale. We ~ recommend that food and beverages be confined to the lobby; this reduces wear and tear on the theatre. This limits the items served to things that can be consumed { during a twenty minute intermission. As concession items will be quite simple, ~ we would recommend that the facility manage its own concessions to maximize revenue. Not all events in the facility would have concessions. It is not as likely that the private school events would desire concession service; other events may not have an intermission. Experience of other facilities shows that net revenue per seat averages $.38 at events where alcohol is not sold and $1.02 at events 3 where alcohol is sold. This model assumes that 31,025 seats will be sold at I events that have alcoholic beverages available and 12,600 seats will be sold at events that have only soft drinks available. This suggests that total revenue from concessions will be $36,434. We recommend that all events that use this facility be required to use box office service provided by the facility. Not only does this provide significant i 78 I t advantages to the community groups who use the facility, it provides a source of revenue for the facility. This would generate $26,249 in revenue. If the box office were to handle ticket sales for all events in the valley, revenue from this source could be increased. ~ The primary users of this facility would not be able to afford to rent a large amount of equipment. Most of the groups that we surveyed indicated that a basic amount of equipment should be available with the facility. We recommend that the use of the following types of equipment be available to user groups who i are trained in its use: Lighting Control Board S 24 Lighting Fixtures Sound System Video Projector Film Projector Slide Projector Podium Screen r Main Curtain 4 Sets of Legs and Borders 1 Back Curtain Add i t i ona 1 equipment that i s needed could be provided by the user or rented from the facility. We have assumed that average rental income for equipment is $100 per use day. This would generate $10,200 in income. r 79 Expenses: Salaries & Fringe Benefits: This facility would require a director at $47,000, a technical director at 000 $3 0 and 2 box office/secretaries at a total of $35,360. Fringe benefits at 23% of payroll would total $25,843. Janitorial Service: . This bui] ' ding totals 59,600 square feet. We have excluded the square footage for the stage area, backstage/wings, and scenery storage, which totals 15,525 square feet, from that area which requires cleaning. This leaves 44,075 square feet which will require cleaning about two times per week. Based upon the figure of $.57 per square foot, janitorial service would run $25,123 annually. Supplies: Supplies would run: Office Supplies $5,200.00 Ticket Supplies 551.00 Theatrical Lam s $1 640.00 p Total $7,391.00 80 1 Maintenance: ~ This building totals 59,600 square feet. We have excluded the square footage for the stage area, backstage/wings, lighting/audio control, and ~ auxiliary areas which totals 23,750 square feet, from the area that requires maintenance. This leaves 35 850 s ware feet ~ q at $.65 per square foot for annual maintenance costs of $23,302. Maintenance of the theatrical systems would total { $6050 annually for total annual maintenance costs of $29,352. ~ Utilities: Utilities run 1.66 er s uare foot for $ p q a total annual cost of $98,936. Trash removal will run $3,150 annually.. S , Telephone: ~ This building will require four lines: three voice and one for a credit card oint-of-sale terminal. The annual cost for the li P nes would be $1,943. Long distance charges for this facility should be relatively minor. We have ~ allowed $600 for this. - Insurance: We antici ate that insurance will run $15 500 annuall . P ~ Y s Equipment Replacement: Table 17 lists the purchase price of the theatrical and concession ~ equipment, the expected life and the replacement allowance. This totals $50,653 annuall . Y 4 t 1 i 81 t F 1 1 { ~ Table 17 t Theatrical and Concession Equipment Replacement Allowance Model B Expected ~ Annual Purchase Life Replacement Type of Equipment Price in Years Allowance Theatre: Orchestra Lift $180,000. 50 $3,600 Rigging System $380,000 50 $7,600 { Sound System $250,000 20 $12,500 Lighting Control System $455,000 20 $22,750 Lighting Control Fixtures ~ Par Fixtures $5,250 20 $263 Striplights $9,600 20 $480 Ellipsiodials $3,120 20 $156 ~ Follow Spots $18,800 20 $940 Other Lighting Fixtures $29,180 20 $1,459 Box Office Equipment Computer System, Software $7,800 5 $1,560 Ticket Printers ~ $1,000 2 $500 Screen $11,000 50 $220 Projector $2,500 20 $125 S 3 Food Service Equipment: ~ Concession Stands $52,500 25 $2,100 Annual Equipment Replacement Allowance $50,653 r i f 1 1 Operating Deficit: f Table 18 summarizes the revenue and expense projections for this building. The annual projected operating deficit for this building is $224,168. t r 1 1 f 1 { 1 F f t 1 82 t Table 18 Annual Statement of Revenue and Expense Model 8 - Cultural Arts Center , Revenue r Rental of Main Theatre $52,800 ~ Rental of Small Theatre $15,000 Studio Space Rental $6,000 Concessions $36,434 Restaurant $0 Retail Sales $0. Box Office Services $26,249 ~ Equipment Rental $10,200 Conference Center Use Commission $0 ~ Total Revenue: $146,683 ~ Expenses: ' Staff Director $47,000 Technical Director $30,000 Box Office/Clerical $35,360 Sales/Marketing Manager Conference Set-Up Labor Fringe Benefits $25,843 Janitorial Service $25,123 Supplies $7,391 Maintenance $29,352 Utilities $98,936 Trash Removal $3,150 Telephone $2,543 Insurance $15,500. Equipment Replacement --_-$50_653- Total Expenses: ~ $370,851 Total Operating Subsidy Required ($224,168) Model C. Cultural Arts/Conference Facility This facility would meet many of the cultural arts needs in the Vail Valley. The building would contain a 1200 seat theatre with 750 seats on the main floor and 450 seats in a balcony. The theatre would have a fly house with a full rigging system, a lighting system, a full audio system, and a sprung ' wooden floor suitable for dance. In addition to the theatre, it would have an art gallery, retail space, and a restaurant for lunch and theatre suppers. This facility would also contain a conference center. The highlight of this would be a ballroom of 23,000 square feet which could seat 2,500 in theatre style seats or 1,200 for a banquet. In addition, there would be eight conference rooms. A kitchen capable of preparing food for all areas of the facility would also be included. This building would total 111,509 square feet and is detailed in Table 19. 1 A building of this type would serve the needs of local arts rou s 9 P~ ' professional promoters and provide conference/meeting space to enhance the economy of the Valley. t Bravo! Colorado would likely move some of their popular chamber events from the chapels to this facility. This represents 8 of the total events that might use the small theatre. With an adequate facility, Bravo! would be likely to schedule a winter concert series. We have estimated that the theatre would be used 12 times for that purpose. r Friends of the Dance would likely move their events to this facility. We estimate that they would use this theatre 20 days per year with seven rehearsal days. Vail Community Theatre would also use this facility for twenty use days. 83 Table 19 - Square Footage and Construction Cost Model C. Cultural Arts/Conference Center Net Const. Total Square Cost Const. Area Area Name Footage ($/sf) Cost 1 Administrative 2,995 $125 $374,375 2 Vestibules 1,404 $125 $175,500 3 Prefunction/Theatre Lobby 5,60.0 $160 $896,000 4 Box Office 350 $125 $43,750 4 Concession Areas 1,600 $125 $200,000 5 Coat Check 300 $125 $37,500 6 Theatre Seating 7,800 $175 $1,365,000 Orchestra Pit 1,780 $175 $311,500 Stage Area 1,800 $175 $315,000 Backstage/Wings 2,025 $175 $354,375 Scenery Storage 1,500. $175 $262,500 Lighting/Audio Control 300 $175 $52,500 ' Green Room 300 $175 $52,500 Dressing Rooms 1,950 $175 $341,250 Day of Show Office 225 $175 $39,375 Technical Dir. Office 225 $175 $39,375 7 Art Gallery 2,400 $160 $384,000 8 Studio Space 0 $125 $0 9 Rehearsal Space 0 $125 $0 10 Restaurant 3,000 $160 $480,000 11 Food Service Area 7,355 $125 $919,375 12 Retail Space 300 $125 $37,500 13 Conference Concourse 600 $160 $96,000 14 Ballroom 23,000 $160 $3,680,000 15 Conference Rooms 18,700 $160 $2,992,000 16 Engineering/Janitorial 300 $125 $37,500 17 Service Corridor 800 $125 $100,000 18 Truck Dock 1,400 $125 $175,000 Auxillary Areas 23,500 $125 $2,937,500 Totals 111,509 $16,699,375 i f We would anticipate that most of the conference use of the facility would ~ occur in the ballroom and meeting rooms, but that a meeting would desire to use the theatre four times per year. We believe that once the community has a facility of this year that events ~ that do not now exist will use the theatre. We have estimated those uses at 10 times per year. ~ This space is large enough to attract the interest of professional 1 promoters. We estimate that the s ace would be used six times er ear b P P Y Y promoters who might bring theatre or musical events to the community. ~ Table 20 indicates that probable usage of this facility would total 94 event days and 35 rehearsal/setup days. E Of these event days, ten would be by for profit users. The revenue generated, therefore would be: . Not-For-Profit 84 days at $ 250.00 $21,000.00 Rehearsal/Setup 33 days at 125.00 4,125.00 Other 10 days at $1000.00 10,000.00 Other Setup 2 days at $1000.00 2,000.00 i Total $29,000.00 Food service revenue would be an important source of revenue for this faci 1 ity. Beverages, both soft and alcoholic, would be the ma 'or items for sale J during intermission. Since this facility has full food service, we have assumed that the concessionaire will be responsible for the items served during intermission. The commission to the facility is 15% of gross sales. This 84 a _ ..f.._ saw s~ sari s• ~r ~a ~ s a~ ~ ~ ~ ~ s r r r s~i i~ ~ iii Table 20 Potential Theatre llse Model D Estimated Potential Performance Rehearsal Set-Up Average Total Average Ticket llser Days Days Days Attendence Audience Ticket Price Sales Bravo! Colorado 12 0 2 1100 13200 $18.00 $237,600.00 Vail Valley Foundation 2 2 0 1000 2000 $20.00 $40,000.00 Friends of the Dance 20 10 0 425 8500 $15.00 $127,500.00 • Vail Commwity Theatre 20 7 0 285 5700 $8.00 $45,600.00 Vail Academy of Dance 1 1 0 500 500 $3.00 $1,500.00 Eagle Cowty School System 12 0 0 600 7200 School System Musical Production 6 6 1 500 3000 $3.00 $9,000.00 Vail Mowtain School 1 0 0 300 300 C& S Productions 2 0 0 1000 2000 $15.00 $30,000.00 Other Professional Productions 4 0 0 1000 4000 $20.00 $ao,DOO.oo Conference Use 4 0 2 . 1000 4000 Other Uses 10 2 2 900 9000 $10.00 $90,000.00 Total 94 28 7 8610 59400 $661,200.00 Potential Box Office Incwe $26,448.00 9 1 s projection assumes that revenue per seat is $1.48 for events where alcohol is not served and $2.14 for events where it is. We estimate that 12,000 seats will be sold at events that do not feature alcohol and 35,900 seats will be sold at events that do. This means that gross revenue is $94,586 and revenue to the facility is $14,188. 6 In addition to revenue from intermission refreshments, the facility would receive 15% of all food and beverage sold to conferences.. This model assumes that $16.00 would be spent in the .facility for each participant for each day. In section 2, we estimated that there would be 43,828 participant days. At $16.00 per participant day, food and beverage sales would be $701,248. 15% would total $105,187. We recommend that all events that use this facility be required to use box office service provided by the facility. Not only does this rovide si nificant P 9 advantages to the community groups who use the facility, it provides a source of revenue for the facility. This would generate $26,448 in revenue. If the box office were to handle ticket sales for all events in the valley, revenue from this source could be increased. This facility would contain a small retail s ace. We are assumin ross P 99 sales to total $16,500. Cost of goods sold would equal $8,250, an equal amount would be contributed to the building operation. The primary users of the theatre would not be able to afford to rent a large amount of equipment. Most of the groups that we surveyed indicated that a basic amount of equipment should be available with the facility. We recommend that the use of the following types of equipment be available to user groups who are trained in its use: 85 f Lighting Control Board 24 Lighting Fixtures Sound System Video Projector Film Projector Slide Projector Podium Screen 1 Main Curtain . 4 Sets of Legs and Borders 1 Back Curtain Additional a ui ment that is needed could be r vide b t q p p o d y he user or rented from the facility. We have assumed that average rental income for equipment is $100 per use day. This would generate $9,400 in income. 'D Users of the conference center ,would most likely rent large amounts of video equipment. The center would most likely provide a podium and projection screen free of charge but charge for all other audio visual equipment. We are assuming that 8. large meetings would pay $350 for equipment rental and 100 smaller meetings would pay an average of $75 in equipment rental. This would generate total equipment rental income of $19,700. A lar a source of income for the facilit is a commission ai 9 y p d to the facility for roomnights sold as a result of meetings booked into the conference facility. We have estimated that 43,828 roomnights would be sold as a result of this facility. 80 percent of these are sold in the summer or shoulder season at 86 an average room rate of $85. 20 percent are sold in the winter season at an average room rate of $140. This would represent new lodging revenues of $4 207 488. A commission of 7% would enera > g to $294,525 for the facility. t ~ Expenses: ' ~ Salaries & Fringe Benefits: 1 This facilit would re uire a director at 6 Y q $ 5,000, and a technical director at I $36,000. A sales/marketing director would be required at $33,000. 2.5 box office/receptionists/secretary positions would be needed at $44,200. 1.5 people would be required to set up and tear down for conferences. This labor would cost $23,400. Fringe benefits at 23% of payroll would total $30,240. Janitorial Service: This building totals 111,509 square feet. We have excluded the square A footage for the stage area, backstage/wings, scenery storage, food service and t concession areas, which totals 14,280 square feet, from that area which requires ~ cleaning. This leaves 9.7,229 square feet which will require frequent cleaning. Based u on the fi ure of $.57 er s ware foot 'anitorial service would run P 9 P q ~ J I $55,420 annually. r Supplies: Supplies would run: Office Supplies $7,150.00 Ticket Su lies 515.00 PP Theatrical Lamps $1,440.00 Total $9,105.00 87 F Maintenance: This building totals 111,509 square feet. We have excluded the square footage for the stage area, backstage/wings, lighting/audio control, and 1 auxiliary areas which totals 27,625 square feet, from the area that requires maintenance. This leaves &3,884 square feet at $.65 per square foot for annual t maintenance costs of $54,524. Maintenance of the theatrical systems would total $3700 annually for total annual maintenance costs of $58,224. 1 Utilities: 1 Utilities run $1.66 per square foot for a total annual cost of $185,104. Trash removal will run $3,150 annually. t Telephone: This building will require six lines: four voice, one for a credit card point-of-sale terminal, and one for a fax machine. The annual cost for the lines would be $2,943. Lang distance charges for this facility would be greater as the director and marketing manager will be communicating with users all over the country. We have allowed $2,700 for this. Insurance: We anticipate that insurance will run $19,850 annually. 'r Equipment Replacement: Table 21 lists the purchase price of the theatrical, conference, and food s' service equipment, the expected life and the replacement allowance. This totals ® $88,989 annually. i f ~i 88 4 4 ' Table 21 Theatrical, Conference, and Food Service Replacement Allowance Model C e • .Expected Annual Purchase Life Replacement ______Type of Equipment __Price___ in Years Allowance I Theatre: Orchestra Lift $180,000 50 $3,600 Rigging System $260,000 50' $5,200 Sound System $125,000 20 $6,250 Lighting Control System $275,000 20 $13,750. Lighting Control Fixtures Par Fixtures $2,625 20 $131 Striplights $4,800 20 $240 Ellipsiodials $1,560 20 $78 Follow Spots $9,400 20 $470 Other Lighting Fixtures 14,590 20 $730 Box Office Equipment Computer System, Software $7,800 5 $1,560 Ticket Printers $1,000 2 $500 Screen $5,500 50 $110 Projector $2,500 20 $125 Conference Equipment: Round Banquet Tables - 100 $15,000 15 $1,000 8' Rectangular Tables - 25 $3,375 15 $225 Chairs - 2400 $156,000 10 $15,600 Satellite Head End Equipment $55,000 15 $3,667 Audio Visual Equipment $20,000 10 $2,000 Podiums - IBM Style $3,500' 15 $233 .Podiums - Lighted Only $500 10 $50 . Fax Machine ~ $2,500 ,10 $250 Food Service Equipment: Vending Equipment $30,000 10 $3,000 Concession Stands $52,500 25 $2,100 Meeting Room Pantries $78,000 25 $3,120 Lounge Pantry and Bar $85,000 25 $3,'400 Buffet Dining Room $75,000 25 $3,000 Main Production Kitchen $465,000 25 $18,600 Annual Equipment Replacement Allowance $gg,989 A Operating Deficit: Table 22 summarizes the revenue and expense projections for this building. The ann ual projected operating deficit for this building is $111,619. i 6 t I r A r e 0 5 r 89 a e ' Table 22 Annual Statement of Revenue and Expense Model C - Cultural Arts/Conference Facility Revenue: Rental of Main Theatre $29,000 1 Rental of Small Theatre $0 Studio Space Rental $0 Concessions $119,375 ' Restaurant $48,409 Retail Sales $8,250 Box Office Services $26,448 t Equipment Rental $19,700 Conference Center Use Commission ---$294_524- , Total Revenue: $545,706 Expenses: Staff Director $65,000 Technical Director $36,000 Box Office/Clerical $44,200 Sales/Marketing Manager $33,000 Conference Set-Up Labor $23,400 Fringe Benefits $30,240 Janitorial Service $55,420 Supplies $9,105 Maintenance $58,224 Utilities $185,104 Trash Removal $3,150 Telephone $5,643 Insurance $19,850 Equipment Replacement ----$88_989- Total Expenses: _ $657,325 Total Operating Subsidy Required ($111,619) t . ~ r_ w_ 4 6 Summary I # Vail has a unique opportunity to provide a facility for the community. that can enhance the quality of life in the Vail Valley for many years. Although I ' these three example buildings are not by any means the only buildings that could ~ be built, they represent three types. After the committee has had a chance to study this report, some adjustments will probably need to be made in the building i ' program. After these adjustments are made, a more detailed cost benefit analysis ' will be com feted. P r 4 3 i i 4 , 90 s . R • I :R ~f.: ,o X~t ,l i Jones & Phillips Associates, Inc. 534 S. 7th Street Lafayette, IN 47901 (317) 423.1123 or 742-6481 Jones & Phillips Associates, tnc. 1607 Woodruff Lane Bloomington, IN 47401 (812) 336-8272 or 335-1613 o. • ~/ " • ) ' - • . - - ( 6 4 ( ti • - 10 - 2 The 4bti Traa -February 14, 1992 ~r~ Condos shouldn't be taxed as hotel rooms - not noz~ The Colorado Legislature couldn't have picked a more pool. SB 101's critics also believe the bill could erode real estate ludicrous time to attempt to reclassify second-home condos as .sales in areas where sales already have fallen off. commercial property. The bill's supporters -among them, our assessors -believe That's not to say Senate Bill 101 would ever be a great idea, that rented condominiums are used much the same as hotel but if the bill passes, it will be fixing something that works - in rooms and that they should be taxed accordingly. And from an an economy where a lot of things are failing. .arm's length, it's hard to beat that logic. You've probably heard about the bill by now. If it passes, it Certainly we have condo owners who rent their units just a will reclassify any homes that are rented for more than 30 days few weeks a year to offset expenses. On the other side of the in a year. Fortunately, the bill isn't aimed at property that is coin we do have some people who are making a good profit. used to house us locals. But most condo owners don't make the kind of profits a hotel But it could create long-reaching detriments in the does. mountain resorts, where condominium rentals outnumber Indeed, it may make some sense to reclassify a handful of hotel rooms by about eight to one. There's no doubt that many condos somewhere down the road. condo owners will pull their units out of rental pools when faced with tax rates that are double the residential levels. But let's not mess with a crucial part of our economy right That ultimately means fewer people coming to Vail and else- now, folks. We simply can't afford SB 101 at this time. where, and a trickle-down effect into our shops and We're with the towns of Vail and Avon in standing against restaurants. Sales tax revenues already are flattening. We the bill. If you feel the same way, drop a letter to its sponsor, don't need any more help from the state, thank you. Sen. Jim Rizzuto of LaJunta. He can be reached at 200 E. Colfax, Not only will taxes lag in our retail industry, but we'll forego Denver CO 80203-1716. Mail for, our senator, Sally Hopper, can a heap of sales tax from condos that are pulled out of the rental be sent to her home at 21649 Cabrini Blvd., Golden, 80401. - TF - Someone once said some- - about. thing like, "There are two " •~nally, in knuckling under things you never want to see " ~,l, , to the last-minute whiners, the made: sausage and laws:' Rai around -council left itself open for more I'm not sure about sausage, of the same kind of nonsense but it seems people should pay later. Voting despite the ..rr~s=- more attention to the meat of . Delay'Qf game ' tion might, just might, have en- legislation running through the couraged one or two people to grinder of democracy. Eape- By SCOTT N. MILLER break down and actually pay a cially if theyie of a mind to little attention to what's hap- complain. peningin their town. Consider the last Minturn the ordinance. A couple of Pine Minturn streets (except Main), Wegert, Ernie Chavez, and At this point Tm compelled to Town Council meeting. Street residents took enough in- not just Pine. Casa Mason dissenting - de- note a couple of things. F~rat, I A rnuple of weeks before that tereat to actually attend the They also said they were tided to table the bill until the don't own a snowmobile, nor ; " _ meeting, the council had ap- meeting, and another con- unaware of tha bili'8 existence "^~next" meeting~(to be held this do I care one way or another if proved on first reading an or- cerned resident took the time to until just a day or two before Wednesday). snowmobiles are allowed to dinance allowing limited write aletter. the meeting. They were wrong, and here's travel on the yt.~:.rs of the town snowmobile travel on town People were worried about And that raises today's ques- why: I live in. I just happen to think streets. According to the mayor noise, about liability, but mostly tion: Just how much notice do •The bill is a matter of public the snowmobile club was and the local snowmobile club, feared that this ordinance was people need? record. As far as information treated shabbily. the bill's intent is simply to al- going to turn loose the snow- goes, the town council had Second, although I've just low local snowmobilers a legal mobile equivalent of Hell's An- ~ This Particular ordinance thrown the ball; that people spent an entire rnlumn bashing avenue (so to speak) for riding gels on unsuspecting towns- had been the subject of at least failed to catch it is their own the Minturn Town Council, the from their homes to national people. three stories in this newspaper, sudden, uninformed opposition forest trailheads. The interesting thing about had been published in full in syndrome isn't unique to the The ordinance is modeled on opposition to this ordinance is the legal notices section, and •In putting off avote, a ma- I've seen it watching the state regulations and similar that much, if not all of it was for those not willing to read, jority of the council failed the governments of Vail, Avon, ordinances from other towns based on hearsay, innuendo, the proceedings and all the people who requested and and Park County (motto: that allow snowmobiles on and just plain wrong informs- facts appeared several times on worked on the ordinance, the County of the Damned) in ac- streeta. In fact, Minturn's ordi- tion. Channel 23. In short, anyone local snowmobile club. These tion. On the other hand, moat nance is tougher than most, After the meeting, town clerk with even a passing interest in people decided to work within and county boards have setting low speed limits and Patty Bierle said that no one the business of their town gov- the system for something they enough backbone that they heavy fines for violators, had bothered to stop by the erment had very easy access to wanted that wouldn't a8'ect the need a better reason than "I among other things. town office to pick up a copy of all the information. health, safety, arwell-being of didn't know" to table legisla- Thoae facts were reported the ordinance. You'd think it What mare does it take? Per- other residents. They'd been tion under my byline and the ordi- would be sort of tough to take a sonal calls from the mayor to working on this ordinance two nance was published in full in stand on something you hadn't everyone in town? months or more. Granted, an- It's been said we tend to take this newspaper. read, wouldn't you? Despite the last-minute (and other two weeks won't make our democracy for granted. All But at the bill's second read- The couple at the meeting mostly uninformed) opposition much difference, but this group you have to do ie follow local ing last week, some (but not all) seemed genuinely surprised to the ordinance, it should have deserved better than to be put government to know it's true. If hell broke loose. Council mem- that the ordinance had a speed been taken to a vote that night. off by a few individuals who, people did pay more attention bers said they'd had phone limit, maximum noise levels, But far some reason, a majority for the moat part, had no idea we'd have fewer embarrasa- calls from residents ar ~ . ad to and allowed travel on all of the council -with Darell what the hell they were tallring manta like the one last week. FEB-13-'92 THU 18:13 ID:COLO HOT & MOT ASSN TEL NO: 303 297 8104.#455 P01 T f=/~ ~ ~a~= r v iu¦~ • • • • • ' ~ L.y+yb..ru~1 w ~ COt,Oi~ADt~ tio~ os~o Mare assvaanvN ' BATE 2 Ji 3/ 92 ' TpTAL NUMBED OF PAGES BEING SENT I • (INCLUDING COVER SHEET} ra; NAME 1?r~/~ G /~-.S COMPANY % ~G~//t~ 4~ frl~/L- - , FAx ~ ~?9 - ~ l~'~ . ti.~ FROM:' ' NAME Deng ICamsl er • COMPANY: COLORADO HOTEL ANI~ MOTEL. ASSOCIATION FAX; 3~3-297-5'{04 REGULAR PHONE 303.2978335 - - s M ~ r ~ t * ~ - Et1REKA!!! UNCOit~C Ti1E CHAMPAGNE...,SE6TION ONE OF SB 101 HAS 6EEN DELECED r FROM THE 81'l„L.• WE W6N•l AFTER YoU CELE6RATE, IT WOULD 6E A- GREAT-IDEA TO ORbP A NOTE TO THi; MEMBERS OF THE COMMITTEE'TO THANK THAN FOR LISTENING TO OUR CONCERNS AND nFFERfNG A5S1S'fANCi: WITH FUTURE CONDOMlNIIiM l5SUES+' THANKS To ALL OF YOU ANO TO YOUR OWNERS WHO WROTE LETTERS, CALLED AND SPOKE pIRECTLY TO LEGISLATORS.' THE GRA5SIt00TS SYSTEM lS POWERFUL AND YOU NAVE •PItOVEN THAT ONCE AGAIN YT WORKS. • Qno Danver Plau ~ 99418th Street, Suite 1z8Q ¦ Denver, Ct?iorado 80202 ' ~ 303/29T-8335 FAX: 297-810K n . ~j ti~ i ~ . I~J j, I } l t t i` IN PUBLIC PLACES MEMORANDUM PROGRAM TO: Town Council, PEC, DRB, and AIPP Boards, Community Liaisons, Staff, et al FROM: Shelly Mello, AIPP Coordinator DATE: February 13, 1992 REVISED SUBJECT: Dan bailey's February Visit Schedule of Events 2/20 Thursday:. Arrival, Dan Dailley on his own - Thursday Evening: 6:00 PM -Community Liaison Orientation at Town of Vail Municipal Chambers 7:00 PM -Public meeting at TOV Municipal Chambers 2/21 Friday AM/PM: Neighborhood meetings at Ski Museum (see below) Meeting with Public Works on site 2/22 Saturday PM: 6:30 PM -Evening potluck with board and community liaison review board (details will follow). (Fitzhugh's home at #31, Potato Patch Club Condos.) 2/23 Sunday AM: Channel 23 interview Wrap up with staff Sunday Evening: Apres Ski Party 5-7 PM (by invitation only) at Rod & Beth Slifer's, 193 Gore Creek Drive, Penthouse Group 1 (9:00-10:30) Village People Group 2 (11:00-12:30) DRB, PEC, Town Council, AIPP Group 3 (2:00-3:30) Gallery owners Community Liaisons: Kerry Donovan Erich. Hill Pam Hopkins Kathy Langenwalter Erik Steinberg Jack Curtain v }v ~ i ~anairs ~s ~tue; ..v _ C~ Here are some values - Public ets the chance to f or your sweetheart ~ you ! ~ ~ - - ~ influence art next week Piper-Sonoma..... $13.99150m1 _ ~ i ~ ~ ~ y. Brut & Blanc de Noir ~ ~ • By Scott Taylor Gloria Ferrer ,,,,,,,,,,;,,$11.99150m1 d ~ n~;r~s,,,>•rwI;,Q Brut & Royal Cuvee ~-I ' Vail will get another chance to - influence the subject of a glass- Chateau St. Jean..~..,.$9.99 750m1 block mural at the Vail Village - .Brut & Blanc de Blanc Transportation Center when Artist ~ , ~ ~ Dan Dailey comes through town ~ J ltjii'~ii~~ TOtt S Brut & Extra Dry.......,$b.99 750m1 nexcweek. ~ ~ ~~,'4if~~l' ~ ~ ~ Vail's Art in Public Places Boazd ~ ~ ~ ~ s' Bud, Light & Dry.... , , $4.17 6 pl< CanS has scheduled one public meeting ` with Artist Dan Dailey next ~ µ Labatts Blue.... ~ ~ ~ , . , , , $b.79 1~2 pk cans Thursday. A senes of meetings have been scheduled Friday with ~ - 7 • - . - 1 Dailey and local interests. r. • • - • • - - • - • - ~"~~I Dailey lives. in-Kensington,_New " ..,a - x,_ r ~ Hampshire, but visited Vail in 1984_: to teach at' Summer-~ Vail =at . ~ ` Colorado Mountain College.:..:. - A • _ _ - He works .primarily with glass ~ - vaii ])oily / scow n~amn _ Lei tls Pat You Ire Tha Spirits and metal. That includes glass _ _ _ blowing and larger pieces of glass Artist Dan Dailey will create aglass-block mural at the Vail .949-4384 works. He makes life size plaster Transportation Center, and the public will get the chance to say molds of his subjects -semi-relief what the final product wiN be. AVOn Centel sculptures, he said. Those impres- • sions are transferred to molteri Daile has refined many of the to begin at 7 p:m. at the ,Vail _ f _ ~ 00 W..Beaver:;Creek Blvd, g y P y P j Munici al Buildin Iviello said lass and usual] broken u into elements of the ro ect and has new P g• - Nextfio the.~Post Office small bricks. Those bricks of glass drawings, of the possibilities. The • :Dailey is scheduled w meet Friday _ t~' .r:: 2 Blocksnorth of °Bob~ are then- reassembled to make the meetings are scheduled to give him :-a m the VailaTowneCounc 1 and finished mural - a mosaic of glass •an idea of what the public wants. tiles. other town boards at 11 a.m. and _ - - . ~ _ _ - - Once it's finished; the piece will ' "The format and form and the with Vail gallery owners at 2 p:m.. . ~ be' installed along the- overlook materials have- been decided,", - - below the Colorado Ski Heritage Mello said. "What's important now The town is trying to get a grant , Center in the Vail Village Parking .is that the public ,give him same from the National Endowment of Structure. feedback about what Vail is. This the.Arts to help pay for the project: bailey's work was chosen by a piece should be reflective of the en- They'll be finalizing that grant in public art jury last fall, out of a fire community." - mid-December and should find out group of three.. if they've been successful in early Vail Planner Shelly Mello said T'hursday's meeting is scheduled ]992. - . ~ China on canvases n . AGENDA Present Absent LOCAL LICENSING AUTHORITY Simonett Fried REGULAR MEETING- Bishop Wilson FEBRUARY 12, 1992 Thomas 10:00 A.M. 1. Consideration of the Authority of a corporate structure change for Chart House, Inc., dba, The Chart House: John W. Alderson, President, replacing Allan Shawn Holder BRAD GROLL, REGISTERED MANAGER, PRESENT. APPROVED: 3-0 2. Consideration of the Authority of a corporate structure change for Knuckles, Inc., dba, Ringside: Daniel Thomas Brewster, Vice-President/Secretary, replacing Jim Dexter ' TERRY O'CONNOR, ATTORNEY; ED GINGRAS, PRESIDENT; DANIEL BREWSTER PRESENT. APPROVED: 3-0 3. Consideration of the Authority of a registered manager for Vail Food Services, Inc., dba, Golden Peak Restaurant: Robert A. Coleman replacing Thomas J. King, III ROBERT A. COLEMAN PRESENT. APPROVED: 3-0 4. PUBLIC HEARING - Consideration of the Authority of a Sgecial Events Permit, Malt/Vinous/Spirituous Beverages, for the Vail Valley Foundation, on Tuesday, March 3, 1992, Saturday, March 7, 1992, and Sunday, March 8, 1992, from 9:00 A.M. to 3:00 P.M. each day, at the location of Vail Village 5th/Tract E/Vista Bahn Park Area, Vail, Colorado. Officers for this event are as follows: John Garnsey, President Cecilia Folz, Events Manager WITH MITZI THOMAS ABSTAINING, NO QUORUM PRESENT FOR VOTE. PER CR5 12-48-106, UNANIMOUS VOTE TO EMPOWER MARTHA RAECKER TO APPROVE THE PERMIT ADMINISTRATIVELY. 5. PUBLIC HEARING - Consideration of the Authority of a 100% transfer of a Hotel and Restaurant License, with extended hours, held by Katzoff Resorts, Inc., of Vail, dba, The Evergreen Lodge at Vail, to PHM Evergreen Lodge, Inc., dba, Evergreen Lodge, at the location of 250 South Frontage Road West, Vail, Colorado. a) Bruce Keith - President, Director, 90o Stockholder Pamela Stenmark - Vice-President/Secretary, Director, 10$ Stockholder PAMELA STENMARK PRESENT. APPROVED: 3-0 page 2 b) Pamela Stenmark - Registered Manager APPROVED: 3-0 6. Notification to the Authority of issuance of a Temporary Hotel and Restaurant License to Alien II, Inc., dba, The Refuge. Hearing for 100$ transfer from Bienvenu!, Inc., dba, L'Ostello set for March 11, 1992. 7. Notification to the Authority of recent renewals: a. K B Ranch Company, Inc., dba, K B Ranch Company „ b. D J Corporation of Vail, Inc.,_dba, D J's McCadams APPROVED: 3-0 8. Any other matters the Authority wishes to discuss. a. Requests for the following 120-day temporary licenses pending transfer were discussed for the following: 1) Pine Creek Restaurant, Inc. - 100 transfer from Steve Satterstrom, Inc., dba, Satch's Restaurant at the Clubhouse - Public Hearing set for March 11, 1992. 2) Newlands, Inc., dba, Noodles for Pasta - 100$ transfer from Fujimo, Inc., dba, Noodles for Pasta - public hearing set for April 8, 1992. TEMPORARY LICENSES APPROVED iJPON. FILING OF COMPLETE PACKETS FOR TRANSFER. TOj~TN OF VAIL Vail Locnl Licensing Authority ~~uhuJ Martha S. Raecker Secretary to the Authority r'' ~ ~ ~.-1 F r _ ~v-... - 5 S _ c y srx '~c„ Ek fz ~~r fir. `~{R~~ ~-~i ,~/tl~ ~r r¦ t~ i 11 l ~ ~ _ - - •x^15 _ V ~.~'Eicploring'lbdaysF;ealltles r t _ _ - . ; , - ~r~' ' _ 'tf'` y 'ti Vii' yT. YS' ,r n i, f J i dr fi z, i 1 r < t 1 'fi f d. ,3 ~ _ c a s ~ . > ~`.y~~ -.s, .t. t:!,x r... _ Yom:: ~rz ~.S~..e.i~r .iA KriB k'z}; ~,v'4-.. t~'..sx. ;a~ _ ~jF - •:!t: _ '4 ~ ~`~r ~~ir4 - - tip _ _ •:1i - ..'2y . %:*~~1 - - FEBRUARY 18, 1992 `z x - - ~j ARCH McGII,L ~ s~'`` :'tip _ : - American Entrepreneur & Director, Russian Renaissance First /nternatiorlal Bank w=, _ - ''Doing Business in the Emerging Russia" r F..-~~ Manor Vail Lodge F `y'Ic . _ ' ".,Cry .•i~ _ ~ sir. 1 Breakfast a! 7:30 A.M. _ ' ~ Program a! 8:00 AM. - - i Cos! rs S10 per person - - . - Reservations necessary: Call 476-0954 Y'i ~5 'r C,y _ ::f~ t - 1 ,3;~ ~r - ` t...f.~, . 1 .`ti j4 ~~t: The Symposium BreaAfast Series " ii - - is orgalized for aluf open to the public - .i_, .1 "r~> .r ,•F tom: -3' ,`6 y _ . r .l:y-~.' . ~14 L - T.~ _'y R t l r u ' 7 ~ ~i - _ ~ ~ ' f 4r )t~ - . - . ~ ~ ~.....t r I.,<. i~. -1 yr ' 1