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Home My WebLink About1993-08 Establishing Support for Plan C of the Vail Valley Performance and Conference Centera RESOLUTION NO. $ SERIES OF 1993 A RESOLUTION ESTABLISHING SUPPORT OF THE VAIL TOWN COUNCIL FOR PLAN "C" OF THE VAIL VALLEY PERFORMANCE AND CONFERENCE CENTER, SUBMITTING AT THE REGULAR MUNICIPAL ELECTION A NEW TAX ON RESTAURANTS AND BARS AND LODGINGS, AND EXPRESSING THE INTENTION OF THE TOWN OF VAIL TO COMMIT FUNDS TOWARD THE CONSTRUCTION OF THE CENTER, WHEREAS, The Vail Town Council, as well as the community, supports the development and construction of a Vail Valley Performance and Conference Center; and WHEREAS, the Vail Town Council endorses Plan "C", attached hereto and incorporated herein by reference, ofi the Vail Valley Performance and Conference Center; and WHEREAS, the Vail Town Council wishes to submit to the registered qualified electors of the Town at the next Regular Municipal Election fior approval a 0.9% tax on restaurants and bars and a 1.6% tax on lodging which revenue will be dedicated to the construction, marketing, and operations of a performance and conference center; and WHEREAS, consisten# with the aforementioned tax, the Town of Vail would issue revenue bands in the amount of twelve million six hundred thousand dollars ($12,600,000.00}; and WHEREAS, the portion of the tax that is required to finance the debt of the revenue bonds will sunset when the debt is retired; and WHEREAS, the aforemen#ioned taxes if approved will be collected beginning in January, 1994, and accumulated for na longer than three (3} years before beginning construction on a facility which incorporates a performance and conference center consistent with the total public and private funds available. NOW, THEREFORE, be it resolved by the Tawn Counci! of the Town of Vail, Colorado that: 1. The Town Council shall at the next Regular Municipal Election submit to the registered qualified electors of the Tawn of Vaii the approximate following ballot question: Shall the Town of Vail taxes be increased annually by the imposition of a new lax of 0.9% on restaurants and bars and a new tax ofi 1.8% on lodging commencing in January,1994, and thereafter which revenue shall be designated exclusively for the construction, marketing, and operations of a performance and conference center." 1 Resolutipn No. $, Series of 1993 i 2. The Town Council expresses its intention, desire, and expectation that the Tawn will commit ane million dollars ($1,OOO,OOO.DO) to the Vail Valley Performance and Conference Center in the year 1995 or ~ 996 contingent upon: A. The economic feasibility of Plan "C" of the Vail Valley Perfom~ar~ce and Conference Center based upon the meeting planner demand analysis of July 1993; and B. The approval by a majority of the registered qualified electors of the aforementioned 0.9% tax on restaurants and bars and the 1.$% tax on lodging; and C. The receipt of pledges of charitable contributions from private sources in an amount that is the difference between the total project cost and the amount of money raised by the above referenced tax plus Town of Vai!'s contribution. 3, This resolution shat! take effect immediately upon its passage. INTRODUCED, READ, APPROVED AND ADOPTED this 20th day of July, 1993. Margo et A. Osterfoss, Mayor ATTEST: Hotly L. McCutcheon, Town Clerk C3RESDLU93.8 2 Heeolution No. 8, Series of 1953 VAIL VALLEY PERFORMANCE CONFERENGE CENTER ASSUME PER SQ FOOT COST OF: BUILDING SIZE: FACILITY COST: EQUIPMENT DESIGN, TESTS, INSPECTION & CONTGCY TOTAL FACILITY COST BOND ISSUANCE TOTAL ADJUSTED FOR 1997 COSTS REVENUE BONDS REVISED PLAN 150 93,70( 14,055,000 3,857,500 2,810,650 52fl,:723;150 400,000 521,123,150 523,762,752 11,746,815 ASSUME TAX REVENUES ARE ACCUMULATED AND CONSTRUCTION BEGINS IN 1997 RESTAURANT BAR TAX @0.9% LODGING TAX @ 1.8% TOTAL ACCUMULATED TAX REVENUES (NET OF INTERIM EXPENSE INCLUDING INITIAL THREE YEAR MARKETING PLAN) CUMULATIVE INTEREST EARNINGS PRIVATElTOWN-FUNDS RE{lU1RED-FOR'SPRING'97 START ENDOWMENT FUND FOR PERFORMANCE CENTER DEFfCIT TOTAL ASSUME TOWN OF VAIL CONTRIBUTION BALANCE. OF FUNDS TO B6 RAISED: pRIQR'TO F#NAl DES10N' - 8,693,577 853,301 52,469,059:'. 1 SZ,ooo,ooo 54,489,059 51,000,000 7/2193 VALLEY PERFORMANC~& CO1Vr~~RENCE CEN i~~R VISION Our vision includes a P...~f,._~.:ance Center which provides ayear--round venue for die performing arts in the Vail Valley that meets our high standards of excellence, anti a Conference Center for large groups that is significantly larger than other spaces available in the valley. We believe this facility will i,. ~,.~, ~e the quality of life for the r . ~ r le who live here, as well as help develop a more balanced economy throughout the entire valley by i...r. ~ ping business in our service industries at all times of year. GOALS Contribute to the continuous employment of our citizens in the hospi~lity and related industries Meet the expectations of a demanding resident and guest population Increase the variety of cultural attractions available in: fall, w;..~;,. & spring Expand Veil's reputation for div;,.a:1f utilize our existing infresav.,a. ~ at all times of the year _ Provide a facility far c ~..~,.~.unity events FACII.ITY DESCR„~r Y'tON This two story, 94,000 square foot building will be situated on the lead between the Lionshead Parking Structure and Dobson Ice Arena. It will house a 950 seat theatre with 380 seats in the lower level orchestra, 220 seats in the upper level orchestra, and 350 seats in tl-e balcony. A Slack Box for more intimate performances is located on the first floor. The con:'o.:...ce space iachtdes a 14,600 SF ballroom on the second floor capable of seating 1,150 r:K,rle for banquets or 1,475 people in auditorium style. The two first floor conf:..:,..ce . ~ ~,,,s would divide into nine breakout meeting rooms. A full service kitchen is adjacent to the ballroom and loading docks. The designs of Plan C are preliminary at this point. We expect changes to be made as we near construction. CONSTRUCTION & BOND ISSUANCE COSTS FOR START IlV SPRING 199'! At $150/SF the facility will cost $21,123,150 at the present time, ar adjusted for inflation it will cost $23,762,752 in 1997. FINANCE MODEL ASSUlbr r PONS With the ..,,~r,.., gal of the Vail voters in November 1993, $11,746,815 in Revenue Bonds will be issued and repaid with revenues generated by a Town of Val! 0.9 °,b tax on restaurannts & bars as well as a 1.8 % tax on lodging. In addition, contributions 1: ,.... the Town of Vail and private donors in the amount of $4,469,059 would be necessary to pay for the facility, assuming a construction start of spring 1997. The tax revenues will initially be accumulated to contribute to construction of the building and will then fund the debt ....:.;....ent and the annual ..r:..~tiag deficit of $481,000 as well as marketing expenses of $450,000 per year. The amount of the tax needed for bond debt service will sunset when the debt is retired. Many funding scenarios have been explored and this one has been chosen because it has the least impact on individual residents of Vail while asking those who benefit most from the facility to pay most of the costs. We believe that although ~ r ;;. ,~ one in the Valle, will egjoy the benefits of the Center, it will be paid for by private donors and the guests of hotels and restaurants throughout Vail. The impact on Locals would only be $1.80 each month for someone spending $200/month in local restaurants. PROCESS: MEETING PLANNER SURVEY & COMMUI~~ ~ ~ r rJr.DBACK A nationwide meeting planner d.~....~..d analysis of Plan C will be completed by the end of Iuly. This research will answer our questions about how likely groups are to come to Vail in the times of year we need them most. It will also tell us how many groups of dil'f~..,;,.t sizes may choose Vail and if this facility fits their needs. If this report shows no demand for the conference center, it will not 6e built. If this .:,r ~.: shows the facility would bring additional groups to Vail, we will continue to present these plena to the c~~...,~...nity for feedback. If public opinion is r ~.~,:t: ~e, the resmurant & hotel ballot amendment will be al ry ~ red in Vail this November. Major donors (over 100,000) will be sought for their support, and canstntction will begin in 1996 or 1997. With a conahvction period of 20 months, the facility will open m the fall of 1997 or 1998. FOR MORE INFORMATION Caroline Tremblay is the full tithe project coordinator for this facility. She can be reached at 845-9601. Your professional advise and personal observations arc sincerely solicited. We are taking the next logical step in the development of a Performance & ConF;;.:...ce Center that will significantly contribute to a better quality of life for our citizens and guests. If you want to be an active part of this future, please participate in the feasibility study process. Your time and st,~, ~..: will be .,~.,.:,,ciated by generations to 7/6193 u Z V' r o r o a z '~r 7n • ~ •RO d z n m b r v}-- V ~ . 0 Q