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1978/03/27 78-354 Anaheim Convention Center, 800 West Katella, Anaheim, California - COUNCIL MINUTES - March 27, 1978, 7:30 P.~, The City Council of the City of Anaheim met in adjourned regular session. PRESENT: A BS ENT: PRESENT: PRESENT: COUNCIL MEMBERS: Kaywood, Seymour, Kott, Roth and Thom COUNCIL MEMBERS: None COMMUNITY CENTER AUTHORITY MEMBERS: Ben Schroeder, Laurence Henderson, William Currier, Robert Hostetter and Burr Williams ANAHEIM UNION HIGH SCHOOL DISTRICT BOARD OF TRUSTEES: James Bonnell, Dr. Pritchett (entered at 7:45 P.M.), Matthew Woods Student Representative, Ksthryn Wright ' CITY MANAGER: William O. Talley CITY ATTORNEY: William P. Hopkins FINANCE DIRECTOR: George Ferrone PUBLIC WORKS DIRECTOR: Thornton Piersall PLANNING DIRECTOR: Ron Thompson ~ITY CLERK: Linda D. Roberts ASSISTANT DIRECTOR FOR PLANNING: Phil Schwartze STADIUM-CONVENTION CENTER-GOLF DIRECTOR: Tom Liegler CONVENTION CENTER OPERATIONS MANAGER: Ed Stotereau STADIUM OPERATIONS MANAGER: Jim Dooley MAINTENANCE MANAGER: Tom Cavalli SUPERINTENDENT, ANAHEIM UNION HIGH SCHOOL DISTRICT: Ken Wines Mayor Thom called the adjourned regular Council Meeting to order for the purpose of meeting jointly with the Community Center Authority and the Anaheim Union High School District Board of Trustees. President Schroeder called the Community Center Authority to order; the Anaheim Union High School District was unable to convene at this time, being short one member for a quorum. At the request of Mayor Thom, each of the members of the Community Center Authority and Anaheim Union High School District Board of Trustees introduced themselves. gOOFING CONSULTANT - COMMUNITY CENTER AUTHORITY BUSINESS: President Schroeder reported that the attorney representing the Communit'Y Center Authority in the Convention Center roof case has asked permission to hire Dave Altman, Roofing Specialist, to appear as a witness at the settlement hearing in mid May at a cost of $125 per day. He might be needed anywhere from only one-half day to four days. On motion by Mr. Henderson, seconded by Mr. Williams, the Community Center Authority approved the hiring of Mr. Altman to appear as an expert witness in the settlement hearing and advised the Community Center Authority secretary to write to Rutan and Tucker notifying them of the Authority's action in this matter. Mrs. Kathryn Wright arrived at the meeting at 7:45 P.M., and President Bonnell called the Anaheim Union High School District Board of Trustees to order. 124: EXPANSIQN OF THE CONVENTION CENTER FACILITIEb;: Presentation was made by Mr. Tom Liegler, Mr. Bill Snyder, President of the V and C Bureau, and 78-355 Anaheim Convention Center, 800 West Katella, Anaheim, California - COUNCIL MINUTES March 27. 1978, 7..;30 P,M. Mr. Ed Stotereau, previewing facts, figures and statistics demonstrating the necessity for expansion of the existing Convention Center facilities. Mr. Liegler reviewed the original goal and purposes established for the Convention Center facilities jointly by the City and the Anaheim Union High School District when the project was first considered. He summarized that these objectives have been met in a well-balanced program. He noted that there is one further goal, that of attempting to reduce the overall loss, which has generally been experienced at convention centers throughout the country. The idea, originally, was that the room tax would come close to meeting the bonded indebted- ness program, and the income from various events would cover the basic operational costs. He noted that in the very first year of operation the Anaheim Convention Center exceeded their operational costs and bonded tndedtedness, and in the last fiscal year returned ~o the General Fund $1,918,211. He stated that the Convention Center has compiled an outstanding record since its first year of operation. He attributed this success to the total coooeration between the City staff and the Anaheim V & C Buresu. Mr. Bill Snyder introduced members of the V & C Buresu Board of Directors present (Larry Slagle, Robert Zonich, Don Carter and Frank Bret). He discussed Anaheim's entrance into the Convention and Trade Showmarket where, although competing with cities who have been in the business considerably longer, the Anaheim Convention Center has been quite successful. Mr. Snyder stated that he knew of no other business in which the status quo or complacency can play such a damaging role. He stressed the necessity for the Anaheim Convention Center to keep pace with its competitors in providing service and facilities. He narrated a series of slides summmrizing where the Convention Center has been and what the V & C would'~like to see in'the'future. Mr. Ed Stotereau made an additional sli~e presentation showing justifications for a new exhibition room to provide the space needed for entertainment and family events, as well as the convention and trade shows. At the conclusion of the slide presentation, Mr. Liegler summarized that the question before the joint authority is whether or not they would consider approval for a repeat version of an exhibit hall built six years ago, which was already booked at 70% capacity last year. He distributed the results of a Community Center Authority survey relating to the possible transportation center condhcted among present and possible future larger tenants, showing that response was 74% favorable to the proposal of a 150,000 square foot exhibition hall/meeting room complex. Mr. Liegler reviewed the master plan for future growth at the Convention Center prepared by architect Adrian Wilson several years ago. The plot plan indicates the acquisition of additional land south of Convention Way and realignment of Convention Way to provide a third exhibit hall at that location. Additional slides were displayed indicating the proposed site and plot plan. ~: Mr. Schroeder led discussion of the proposal by indicating to the members of the Anaheim Union High School District Board of Trustees and City Council that to accomplish what staff is reco~nending would require additional 78-356 Anaheim Convention Center, 800 West Katella, Anaheim, California - COUNCIL MINUTES - March 27, 1978, 7:30 P,M, land acquisition south of Convention Way, and since property owners were present and probably interested in whether or not the Joint Powers Authority intends to proceed, some indication should be made. Councilman Roth questioned whether income from the room occupancy tax would be sufficient to cover the expansion and/or land acquisition. Mr. Liegler responded that although they do not have precise projections, during the last fiscal year room occupancy taxes amounted to approximately $3,228,000, and the bonded indebtedness to be met was on the order of $7,700,000. With more hotel rooms to be added in the future, the room tax revenue should increase, and they project will be more than enough to cover a third bond issue. Mr. Schroeder related that the figures he heard indicated by the time the Joint Powers Authority begins to retire bonds, repayment would run about $3.25 million dollars per year, and the room occupancy tax is expected to exceed that amount considerably. In response to Councilman Kott's question as to whether or not any of the room occupancy tax revenue is utilized toward the payment on the Stadium or Golf Courses, it was noted that any amount which exceeds-that required to repay bonded indebtedness goes into the City's General Fund. Councilman Kott further questioned whether, once there is additional bonded indebtedness, there would still be sufficient funds for those areas now covered by the excess. He explained that he would like to be assured that no additional monies would be necessary from the residents of the City of Anaheim to finance this Convention Center addition. Mr. ~Liegler responded that his staff feels confident the additional room tax revenues would be more than sufficient to cover the bonded indebtedness. He added that these revenues were never intended to meet the operational program costs. Mayor Thom inquired whether there would be any necessity in this expansion of legally con, hitting the subvention of room occupancy tax just for retirement of bonds on any future expansion, to which City Attorney Hopkins replied that he did not anticipate that would be necessary. Mr. Liegler further advised that his staff had investigated, and the Community Center Authority does have the authority to issue a third series of bonds. Councilman Seymour voiced the opinion that from the presentation this evening, it appears obvious a total and complete investigation of the potential purchase of additional land is warranted, keeping in mind the objective of another expan- sion of the Convention Center facilities. He noted that he felt the consensus of Council discussion indicated their concern that the cost of this investment should not be borne by the resident homeowner taxpayers of the City of Anaheim. Councilman Seymour further indicated that he felt strongly that this project has to move forward if Anaheim is to maintain its competitive edge in the convention and trade show market. 78-357 Anaheim Convention Center, 800 West Katella, Anaheim, California MINUTES - March 27, 1978~ 7:30 P.M, COUNCIL MOTION: Councilman Seymour moved that the City Council direct the Community Center Authority to investigate the purchase of additional land south of Convention Way, as well as to investigate the cost and financing pertaining to the construction of a new exhibit hall. Councilwoman Kaywood seconded the motion. Under discussion, Councilwoman Kaywood pointed out that the City had an oppor- tunity some time ago to purchase additional property for expansion, and she was in favor of it at that time, and certainly is in favor now. She said it might be appropriate to compile statistics reflecting what business the City has lost; because of space unavailable, and these statistics could be used to project into the future to ascertain what might be gained from the expansion. Mayor Thom advised that when land acquisition for the possible Convention Center expansion was discussed in the mid '70s, there was much apprehension regarding it, because everyone was hopeful that another commercial enterprise would locate on either side of Convention Way. Since the City has now seen that hope come to fruition in the Marriott venture, he feels the private iffvestment catalyst is now present to make the project work. Vote was taken on the foregoing motion. MOTION CARRIED. Brief discussion was held by the Anaheim Union High School District Board of Trustees during which Dr. Pritchett questioned whether or not it is anticipated that the room occupancy tax would be increased as a result of the proposed expansion, as the increase to 5% to 6% occurred at about the time of the last expansion in 1972 or early 1973. Mr. Liegler stated that he expects the present room occupancy tax rate would be sufficient to cover bonds for all three expan- sions. In further reply to President Bonnell, Mr. Liegler stated that 6% is in order for room occupancy taxes throughout the nation. Dr. Pritchett pointed out items which he felt should be taken into consideration as part of the decision~making process, these being the fact that the City of Anaheim is most fortunate to have Disneyland adjacent to its Convention Center and, secondly, that the room occupancy tax, while it does add to City revenues, it also deprives other governmental agencies of a taxing base. In reply to President Bonnell's question regarding'the impact on OCTD plans for the transportation center should the Convention Center expansion not be possible, Mr. Liegler invited the School Board Members and all others interested to remain after the Joint Powers Authority session, as the Community Center Authority will hear a presentation on the transportation cente~ with participation by Supervisor Ralph Clark, Phil Schwartze, Assistant Director for Planning, and Mr. Bob Hartwig of the Orange County Transit District. MOTION: On motion by Dr. Pritchett, seconded by Mrs. Kathryn Wright, the Anaheim Union High School District Board of Trustees concurred with the motion made earlier by the Anaheim City Council to direct the Community Center Authority to investigate the purchase of additional land located south of Convention Way, as well as the cost and financing pertaining to construction of a new exhibit hall. MOTION CARRIED. 78-358 Anaheim Convention Center, 800 West Katella, Anaheim, California - COUNCIL MINUTES - March 22. 1978. 7:30 P,M, The Anaheim Union High School District Board of Trustees adjourned on motion by Dr. Pritchett, seconded by Mrs. Wright, at 8:45 P.M. MOTION CARRIED. ADJOURNMENT: Councilman Kott moved to adjourn. Councilman Roth seconded the motion. MOTION CARRED. Adjourned: 8:45 P.M. LINDA D. ROBERTS, CITY CLERK