HomeMy WebLinkAbout11980 ORD - 04/03/1974•
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AN ORDINANCE
AUTHORIZING TEE CITY MANAGER TO ACCEPT THE
PROPOSAL OF LAVENTHOL, KREKSTEIN, HORWATH &
HORWATH, A COPY OF WHICH IS ATTACHED HERETO,
MARRED EXHIBIT "A" AND MADE A PART HEREOF,
AND TO EXECUTE A CONTRACT WITH THE SAID FIRM
FOR AN ECONOMIC FEASIBILITY STUDY ON PEDESTRIAN
ACCESS AND VISITOR HOUSING FOR THE PROPOSED
CONVENTION CULTURAL CENTER AND BAYFRONT
SCIENCE PARR; APPROPRIATING OUT OF THE 121 GENE -
RAL REVENUE SHARING FUND $27,250 FOR THE AFORE-
SAID CONTRACT; AND DECLARING AN EMERGENCY.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
SECTION 1.. That the City Manager be and he is hereby
authorized to accept the proposal of Laventhol, Krekstein, Horwath
& Horwath, a copy of which is attached hereto, marked Exhibit "A ",
and made a part hereof, and to execute a contract with the said firm for
an economic feasibility study on pedestrian access and visitor housing
for the proposed convention - cultural center and Bayfront Science Park.
SECTION 2. There is hereby appropriated out of the No. 121 General
Revenue Sharing Fund the sum of $27,250 for payment of the contract ser-
vices to be performed by the aforesaid firm of Laventhol, Krekstein,
Horwath & Horwath.
SECTION 3. The necessity to enter into the hereinabove
described contract at the earliest practicable date in order that the
studies may be commenced and concluded as soon as possible creates a
public emergency and an imperative public necessity requiring the sus-
pension of the Charter rule that no ordinance or resolution shall be
passed finally on the date of its introduction and that such ordinance
or resolution shall be read at three several meetings of the City Council,
and the Mayor having declared such emergency and necessity to exist, having
requested the suspension of the Charter rule and that this ordinance take
effect and be in full force and effect from and after its passage, IT IS
ACCORDINGLY SO ORDAINED this the.tI. day of March�R9 4.
ATTES
City Secrets y MAYOR
THE CITY OF CORPUS CHRISTI, TEXAS
APPROVED: ` DAY OF BAR '' 1974:
Ci Attorney
11980
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LAVENTHOL KREKSTEIN HORWATH & HORWATH
CERTIFIED PUBLIC ACCOUNTANTS
2440 14•114 TOWER
CALLAS. TE %AS 75202
219 - 741 -1000
OFFICES THROUGHOUT THE WORLD
Mr. Archie N. Walker
Assistant City Manager
CITY OF CORPUS CHRISTI, TEXAS
P. 0. Box 9277
Corpus Christi; Texas 78408
Dear Mr. Wacker:
We are pleased to submit the following work program in response to
your request that we prepare a market analysis for the development of a
Convention Center Complex and related hospitality /recreational amenities to
be located in Corpus Christi, Texas.
An examination of the scope of the work program to carry out the
economic, financial and market analysis for the project indicates a requirement -
for a project team with a strong background in the following major areas:
- Convention center /exhibit facility
- Economic, financial and physical planning
.- Hotel, restaurant, retail and personal service facility analysis
and development planning
- Community economic analysis
= Land planning and evaluation
- Townscape and environmental planning and analysis
Transportation and traffic planning
Real estate development and f inancial packaging
Evaluation of large -scale total project alternatives
The project must be carried through by a team who sees market research
and planning as an interlocking and dynamic process. The team must have the
creative insight and professional skills in the art of producing a viable, people -
oriented environment. Finally, he team must understand and be i!t the
Y. � 5• _ •.�v/
needs of the Corpus Christi market area. j, 4
ff.,;R!S7 -i
gSSfST. =!NT C!T 1
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LAVENTHOL KREKSTEIN HORWATH & HORWATH
Mr. Archie N. Walker
Page Two
The work program as outlined in the following has been designed to
provide an extremely unique approach to a unique situation.
In recognizing the desires and needs of the City Manager's request,
Laventhol Krekstein Horwath & Horwath would act as a single consultant team
with Mr. Charles F. Carroll in the Dallas office acting as the administrative
director and liaison between the City of Corpus Christi and the consultant
team.
With respect to financial projections, our work will be limited to
tests of the results of computations, investigations of the methods of compiling
the forecasts, discussions with the City Officials and such other procedures
•which we consider necessary. The report and financial projections will be
based on-estimates, assumptions and other information available to us as of
the date of completion of our fieldwork, the sources and bases of which will be
stated in the appropriate sections of the report. No effort will be made to
determine the possible effect on this project of present or future federal,
state and local legislation relating to environmental, energy or ecological
matters or interpretations thereof.
Since the report and financial projections will be based on estimates,
assumptions and forecasts, the reliability of which is dependent on future events
and transactions and the validity of which we cannot vouch for, we will not express
an opinion on them.
The reports and financial projections are intended for the information
of the officers, directors and management of the City of Corpus Christi or
designated representatives, and neither the report nor its contents are to be
referred to or quoted in any registration statement, prospectus, loan or other
agreement or document. This report may be submitted to a bank or an insurance
company for the purpose of securing financing. If you desire, we will, upon
request, furnish you with written authorization to review this. report with
mortgage bankers or other commercial lending institutions. If there is reason
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LAVENTHOL KREKSTELN HORWATH & HORWATH
Mr. Archie N. Walker
Page Three
to believe that the designated party or parties is not sufficiently sophisticated
to understand the limitations on the scope of our engagement and the reason for
our disclaimer of opinion, you will inform us and we will provide the designated
party with the appropriate explanation.
This report is subject to revision in the event of any material change
in the economic, energy or market factors of the project area; however, in any
event this report is subject to review after six months from the'date the
fieldwork is completed. With regard to market demand analysis, no effort will
be made to determine the potential impact of possible energy shortages.
We appreciate the opportunity to submit this engagement program and
look forward to a meaningful relationship with your group.
c2.z•e*.,,7 /1
March 6, 1974
ACCEPTED:
CITY OF CORPUS CHRISTI
By
R. Marvin Townsend
City Manager
ATTEST:
City Secretary
APPROVED: „/A .2I
f ?7f�i
Ci y Attorrfe
i
PROPOSAL FOR A MARKET ANALYSIS STUDY OF A
CONVENTION CENTER COMPLEX AND RELATED
HOSPITALITY /RECREATIONAL AMENITIES
CITY OF CORPUS CHRISTI, TEXAS
TABLE OF CONTENTS
LETTER OF TRANSMITTAL
INTRODUCTION I -1
TECHNICAL APPROACH II -1
A. Step One - The Research Process II -1
. B. Step Two - Interaction Between Research, Analysis, II -3
Economics and the Technical Process
DELIVERABLE END PRODUCTS III -1
ORGANIZATION OF WORK PROGRAM. IV -1
STUDY TEAM 'V-1
DIGEST OF PREVIOUS PROJECTS VI -1
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I -1
I - INTRODUCTION
The City of Corpus Christi seeks to translate the imaginative concept
of a major convention facility into the central focal element leading to the
successful development of the tourist and convention business.
The City has the opportunity to acquire a ten block site adjacent to
the Bayfront Arts and Science Park of the north end of Shoreline Drive. The
fate of the site acquisition and related convention center planned for development
would be put before the voting public in Spring of 1974. At that time, the voters
would be asked to ratify the results of the combined vote in the last election
and authorize the issuance of municipal bonds for site acquisition and construction
of an exhibit hall.
The major objectives of this challenging program include:
1.0.1. -- The determination of whether a market demand exists for the
proposed convention facility.
1.0.2. -- The determination of the volume and density of this market
demand in terms of potential number and types' of functions,
delegate attendants, geographical source of patronage, seasonal
fluctuations and annual convention cycles.
1.0.3. -- The determination of the project constitutes the keystone to the
successful development of related hospitality components such as:
-- hotels, motor hotels
-- restaurants, night clubs and cafe facilities
-- specialty and boutique retail shops
-- convenience and personal service outlets
-- recreational facilities, entertainment centers
-- landscaped open spaces, paved plazas and walkways
-- other complimentary supportive. uses
Central to the task is finding an optimum mix of the volume of convention
exhibit patronage necessary to utilize the proposed convention facility along
with the related hospitality /recreational amenities necessary to service and
support the convention facilities.
The above two factors are dynamically interactive and require sensitive
balancing. If an over emphasis is placed on the public sector development costs
versus income potential for the convention center, it may be difficult to achieve
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the intended high quality atmosphere that is appropriate for the City of Corpus
Christi. On the other hand, if the hospitality /recreational development of the
private sector is under - emphasized, the entire convention facility may become
financially infeasible.
1.0.4. The convention market has many intangible benefits to a city and
consequently the competition for large and small conventions is very brisk.
Convention bureaus actively seek future bookings and spend substantial sums for
promotional purposes. This is largely due to the fact that convention spending
injects fresh monetary blood into the mainstream of the local community which,
in turn, is spent and respent by its recipients as the money changes hands. This
is known as the Multiplier Theory which was formulated by Professor Paul Samuel
of M.I.T.
The Multiplier Factor for each community will vary due to "leakage"
which is made up of a number of components such as items imported into the Host
Community and hoarding and reinvestments outside the community. The formula is
stated as follows:
M.F. = 1
1 - C
Y
M.F. = Multiplier Factor '
C = Consumption (respending)
Y = Income ( respending plus
initial expenditure)
For every $1,000 a convention group spends, assuming five spendings
and respendings per year, with a 50% "leakage ", the community respends $2,500
annually. This is five times 50% of $1,000 or C in the above formula. The
resulting $2,500 plus $1,000 initially spent equals $3,500 or Y in the above
formula.
Substituting, we have the following:
M.F. = 1
1 - 2,500
3,500
M.F. = 3.5 Times
I -3
In other words, $1,000 spent by convention groups produces $3,500 in
annual spending within the community. This presupposes a 50% leakage. Naturally
the smaller the leakage, the greater will be the multiplier factor.
This is the prime economic reason why communities build these facilities
and spend substantial funds to attract conventions.
Factors Affecting the Hospitality Community
Different types of hospitality communities, of course, have different
characteristics, and particularly those which lead to differences in their
capture rate or successfulness in achieving development pace objectives. The
following highlights some of the considerations important to communities such
as Corpus Christi, as well as the extent to which these factors are important
in gauging the successfulness of the hospitality community. It is important to
note, however, that these are generalized parameters, and may vary somewhat
depending on the project in question. In a hospitality market, for instance,
we see many of the start -up services that are required to establish an area
as a "community" in terms of importance are relative to new development. It is
also not necessarily important to establish a basic employment source in an
existing city since its centralized location will provide an excellent commuting
focus to existing employment sources.
The end result of these considerations will be the establishment of
development objectives and staging periods that are considered significant, if
not essential, to the project. These factors will then be included along with
physical constraints and opportunities, economic goals, legal regulations, city
planning policies and other needs to generate a development planning program.
This program will be the guideline within which all planning trade -offs are to
be made,
Aside from these rather general considerations, several aspects peculiar
to the convention center project are extremely important as well. The first is
the planned scale of the project. The potential size of the project is important,
aside from the contents, or quality of the offerings within the project. Quite
obviously, a single entity project has different drawing characteristics than a
project with a large scale magnitude of several city blocks. At the large scale
1 •
I -4
level, the project creates its own demand through scale alone. Thus the market
analysis for the project must consider this demand creation capability of the
project independent of the more traditional trend analysis indicators appropriate
to smaller projects. On the other hand, the scale advantage could be diluted to
the extent that one use dominates; or a wide number of uses dilutes the scale
advantages associated with their particular offering.
(a) Attractiveness
The overall project plan must embody sufficient basic attractiveness
to draw visitors who will became customers, on a year to year basis.
In order for the whole to be attractive, its parts -- convention '
center, hotels, restaurants, shops, recreational facilities and open
spaces -- must be individually pleasing to the people who comprise
the markets available to the Corpus Christi area. Equally important,
the plan must provide for adequate public safety 24 hours per day.
(b) Access
Excellent potential already exists for the expansion of the air trans-
portation network to serve the Corpus Christi area; a workable system
is important to the success of the proposed development. For those
persons who will reject air transportation or whose homes are incon-
venient to airports, the automobile will remain the alternate means
of travel; access highways must be considered and convenient parking
facilities and pedestrian areas must be provided in the plan.
(c) Internal Movement
When traffic has been attracted to Corpus Christi, the ease and convenience
of its movement within the community must be at least as efficient as its
access to the community. In this case, where economic feasibility
would more than likely preclude pedestrian movement systems, many of
the benefits of these traffic movement systems could be gained through
intelligent land use planning and convenient facilities' positioning.
Open spaces, green areas and service outlets for feeding, lodging and
recreation will be essential in the mix of land uses which will set
the convention center complex apart from and above the suburban developments.
I -5
All of the factors discussed above must conform to the basic requirements
that the proposed project must be financially viable, i.e., entrepreneurs must
be profitable in the operation of their "going concerns ". Thus, if the potential
entrepreneurs are able to generate profits, the overall project will accomplish
its primary purpose of re- establishing the convention center as a viable part --
3n fact, the heart -- of the Corpus Christi area.
Caution must be exercised, however, in the project plan. As stated
above, the project must be attractive -- but not to the point of endangering its
financial feasibility. Extravagant buildings, excessive open space systems,
could spell financial disaster for the project, just as the failure to tespond to
one's market could cause the individual entrepreneur to fail. Only when the. two
components of economic feasibility -- marketability and financial viability --
are addressed and satisfied, only then will this or any other major investment
of the public and private project succeed.
Tasks
The study program prepared by the consultant team would be divided into
these distinct steps. Each phase will be treated as a milestone and will provide
a greater opportunity for a meaningful and ongoing exchange between the development
committee and consultant team.
Study Approach
Based on our experience and performance of hundreds of other feasibility
studies of various types in the hospitality industry we will use well tested and
tried techniques and programs that we have developed for these purposes.
For the study we will also utilize the marketing, financial and economic
analysis as well as the management and operations capabilities of LKH&H. This
produces additional expertise in the fields of planning, architecture, engineering,
cost analysis, project management and financial organization.
• •
II - TECHNICAL APPROACH
There are two main aspects of the study methodology that are important
to our study approach.
First, that we consider it important that the client, and interested
citizenry, be included as members of the planning team. Several specific steps
have been taken to insure that this is the case. First, frequent meetings and
formal reports have been scheduled to insure frequent interchange of results,
both interim and final. Thus there will be presented the capability of interacting
with project team members, and powerful analytic tools to test'out situations,
analyze alternatives and assess trade -offs.
Second, analytical tools developed specifically for economic analysis
of convention center /hospitality development will be used in support of this
project. These models, the most advances of their kind, will allow the analysis
to focus on more than a static portrayal, in allowing project reviewers to test
basic assumptions, analyze alternatives and formulate options.
2.0.1. -Step One - The Research Process
To establish the context of specific work items and the methods to be
employed in accomplishing them, it is important to consider the process can be
thought of as occurring at two distinct but interlocking levels. They are
technical and (for lack of a better term) socio- political.
Technical refers to the specific tasks that need to be performed in
analyzing the various phases of this project's feasibility, and the ways
in which they must combine and iterate to arrive at optimal solutions.
Socio - political refers to that set of inter - relationships and processes
which relate results of technical analyses performed under one set of
technological considerations, to those forces and considerations that are
affecting the area being studied. In the typical community analysis arena,
the socio- political considerations generally play a meaningful role, since
the land under development is usually an integral part of an existing
metropolitan area, and contains many of the interlocking series of
influences that so vitally affect developing land in the urban core.
•
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II -2
In the urban situation these interlocking considerations assume
paramount proportions, and make the difference between success and
failure, independent of the project merits as analyzed against purely
technological considerations, however comprehensive and well meaning.
To attempt to analyze each of these contending forces or socio - political
factors which could influence a project would be extremely difficult.
There are simply too many factors to be considered in a complex urban
environment for a factor by factor analysis to be effective. The
research, analysis process must be supplemented by an alternate
mechanism designed to achieve this "reading" of local constituencies,
namely periodic meetings, open discussion, and review of results at each
stage of the analysis.
Research and analysis is a dynamic process which provides direction
for change rather than a physical development diagram. The research process must
work to analyze explicit goals and objectives (both short and long- range) and
must provide directions that are specific enough to generate real solutions. The
attainment'of short -range objectives must not be conceived without the ability
to allow for change of emphasis on direction in the future. The institution of
elements of the plan must allow for change in future goals and objectives.
We consider two things essential:
1) An atmosphere of informality that suggests to all participants in the
process that this is the time and the place to reveal any potential
direction; this is the process that will make real change occur.
2) The inclusion of the "city ", and the interested citizenry, as a
member of the planning team. It is only the "city" who can determine
the appropriateness of the goals and objectives from which the
planning directions must be evaluated.
In addition, we believe that the feedback loops between all the various
input elements must be strong and constant. In the discussion of the work tasks
there is a continuing emphasis on the cross filtering of information and feedback.
The Project Planning Diagram shown on the facing page, provides an over-
view of the total project. Target objectives and the process to achieve these
objectives are indicated.
•
II -3
Step Two - Interaction Between Research, Analysis, Economics and The
Technical Process
From a purely technical standpoint, urban centers are complex systems
- comprising many inter - related elements. Four major sub- systems can be identified:
(a) Hierarchical Approach to Research and Analysis
In order to appropriately evaluate the dynamic structure of the'planned
convention center /hospitality system, it is necessary to consider the
interactions between the urban community and its surrounding region.
The geographic region to be evaluated, therefore, comprises a much
larger area than Corpus Christi itself. In order to treat each process
at the appropriate level of detail, the analytic structure is based
on a geographic hierarchy consisting of four levels: multi- state,
statewide, region and urban areas. The degree of detail is a minimum
at the highest level and a maximum at the lowest level.
The advantages of the hierarchical approach is that it describes in
appropriate detail the nature of the comparable city area under study and defines
the analytical base of convention /hospitality activities at each geographical
level. The data gained at this stage of the study would be used as a basis of
compiling comparable factors significant to the potential development of the '
proposed convention center activities, non - convention tourist potential and local
patronage from civic, business and social groups. The potential for retail,
recreational and access facilities are, in turn, a function of the determination
of the volume and density of usage of the hospitality units.
2.0.2. Specific elements subject to investigation include:
(a) Determination of the economic potential utilization of the
facilities by resident and non- resident patrons.
(b) Examination of existing and planned competitive facilities.
(c) Analysis of the specific market segments which would contribute to
the various components of the project and the degree of market
penetration and support required for the success of each proposed
facility.
• •
II -4
(d) Study and evaluation of the existing and future expansion of the
tourist and convention market in the area.
(e) Review and evaluation of the population growth rates and-alterations
in income levels within the market area that would influence the
success of the convention center project.
(f) Review and assessment of the activities generated by the surrounding
commercial, institutional, and residential communities to evaluate
their potential impact on the components of the project.
(g) Preparation of recommendations for the size and character of the
physical structure of each component of the project. This analysis
will take into consideration the extent of potential interpbased
patronage that could be experienced by the various components of
the project.
(h) Develop alternative land use plans to be used as parceling constraints
for the economic model. Secure feedback on alternative land use
concepts from all input elements and consultant team members.
Generate preliminary land use concepts and alternative character
sketches of the physical plan to be used with the economic model.
Present information in format that facilitates the staging of
final phase development activities.
The main thrust of the staging component will consist of an imple-
mentation scenario identifying not only what should be included
in the final economic plan, but when various portions. of these
planned components must come on stream for the economics of the
model to become a reality.
A set of additional planning criteria will be established to assist
in determining what combination of public and private activity mix
will create the quality of environment the city seeks for the
Convention Center Project. Elements to be considered ale:
(i)
- - Active urban park atmosphere
-- Extent of private revenue producing activities and their
influence on the character of the civic open space.
- - Year -round and daytime /nighttime activities
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(j)
II -5
-- Utilization of the project by the downtown population, visitors
and residents of the City
-- Identification of public and semi- public institutions interested
in participating in the development of the project
-- Pedestrian linkages to the Convention Center, hotels, the
retail area and public parking facilities, including
public and private sector mass transit systems suitable
to provide efficient access to the components of the project.
Preparation of the potential operating results of each component.
These operating results will include estimated revenues, expenses
and profit before income taxes. This analysis will be developed
to the point of determining the maximum possible investment for
each component of the project. Estimated operating results of
each component will be prepared on the basis of varying levels
of potential business activity.
The consultant team will prepare a written report outlining the
results of these investigations. The report will also contain a
projection of potential operating results and schedule of potential
investment for each component development.
(k) Exploratory contacts will be made with potential entrepreneprs,
businessmen, organizations, or institutions interested in
participating in the development or operation of the various
components of the project.
(1) We will conduct research surveys in order to determine the costs,
market values, effects of vacancy and profitability of the properties
and the various tax problems related to their acquisition. These
surveys will be made for the purpose of structuring the equity
concept to be used. Corporate debt may be issued in the form of
bonds predicated upon certain attributes of the properties
whereas preferred or common stock might be issued to compensate
for other attributes of the properties. The Acquisitions;
Mergers and Financing Department of LKH&H will be called upon
to utilize its wealth of experience in these areas. Certain
multiple syndications or joint ventures may be used to obtain
the best overall results.
Once a recommendation as to the type of organization has been made
and the specific securities have been proposed based upon the
• •
III - DELIVERABLE END PRODUCTS
The Corpus Christi Convention Center Development program involves a
comprehensive array of deliverable end products which will support the overall
program. This section describes the deliverable products as the end result of
the project team's efforts. The LRH&H consultant team will provide:
A. A comprehensive planning process - First and foremost, the project
team will provide and deliver a dynamic process for economic,
physical and financial planning for the program. This process will
consist of a number of specifically directed activities designed
to insure close and continuing cooperation between the City of
Corpus Christi, on the one hand, and the project team, on the
other. Specific items to be delivered as part of the project
process include:
- Continuing bi- weekly and monthly meetings, between the project
team and the City of Corpus Christi and its individual designates.
Full commitment of resources - time of senior members of the
staff of LKH&H, will be provided to work closely with the pity
officials, to insure a high level of liaison and communication.,
B. Deliverable reports - The following deliverable reports will be
provided as part of the program:
•- Interim reports - The series of brief, concise interim reports
augmented by slide materials will be used in describing the
status of the project to city officials in interim review and
interactive sessions. These reports will cover the work progress
and document findings as they are developed. Supporting these
reports will be summary presentations to ultimately be developed
in a brochure form, heavily illustrated for use in public and
private presentations. The summary reports will be graphically
designed to provide a comprehensive understanding of the Corpus
Christi Convention Center development plan, its findings and
conclusions.
- Formal progress report and presentation - A formal progress report
will be delivered midway through Step Two, consisting of a bound
summary report outlining progress, with particular emphasis on the
• •
III -2
results of the marketability of the Convention Center, access
and transportation factors, and related amenity concepts. This
report will be presented to the City of Corpus Christi and its
designates, augmented by a slide presentation.
- Formal final report and presentation - The final formal graphic
brochure report and presentation will be delivered at the end of
Step Two consisting of a bound, printed summary report. Augmenting
- this report would be the necessary material to support a'slide
presentation. It is envisioned that the slide /graphics would be
combined with an audio cassette tape form for use in presentations
to a variety of organizations including government agencies,'
financial institutions, private developers, etc.
Inventory of hospitality industry companies - A supplemental report
will be prepared to itemize industry related companies including
the names of decision making principals and individuals in these
companies. This report will categorize these companies in terms
of developers, financial institutions, national and regional hotel
management companies, restaurant companies, retail operators and
other related and potentially interested businesses.
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IV - ORGANIZATION OF WORK PROGRAM
2.0.3. LKHS$ has assembled an outstanding and unique project team to perform
this program for the City of Corpus Christi. The project organization to carry out
this program is shown on the facing page. Qualifications of senior personnel who
will participate in this program are described briefly below. Detailed resumes
on each of the individuals to be assigned to the project are contained in a
subsequent section of this chapter. Members of the project team include principals
who have participated extensively in studies designed to analyze and evaluate the
economic, market and financial feasibility of land use and hospitality studies.
Specialization exists in developing estimates of the economic and environmental
costs of alternative development plans. The project organization recommended
by LKH&H shown on the facing page shows four major groups to be established to
carry out the variety of efforts required in the study program. These groups
include:
- The Economic, Market and Financial Analysis and Evaluation Group
The responsibilities of this group involve the development of marketability
estimates, 'economic base analysis, and the comprehensive evaluation of
physical development plan alternatives in the context of both economic
and financial growth. This team will be headed by Charles F. Carroll, who
has had extensive experience in the above areas. Supporting Mr. Carroll
will be Michael Ramsey and Gregory Crown.
- Project Staging and Financial Structuring Group
This group, under the direction of Mr. Lederman, will be concerned primarily
with the planning and evaluation of the development and staging of the
project, with particular emphasis on financial structuring and the creation
of a special new entity. Mr. Lederman and other members of this group
have had extensive experience in and the development of real estate
packages, financial projections and EDP programming for financial modeling.
- Determination of Configuration and Mix of Hospitality Amenities
This group, under the direction of Mr. Alexander, will be concerned primarily
with the development of physical configuration options of the hospitality,
retail and personal service amenities that would be related to the com-
ponentalternatives insuring that the individual elements of the project
plans merge well with the community's needs and overall market demand.
•
man hour requirements
Week
Step
One
One
Two
Three
.Step Two
Four
Five
81x
Step Three
Seven
Eight
Study Administration
V///7 AFf
/,
/ / / / /,/
L/ lif
,/
/
Carroll
Market Data Compilation and
/%
,��� / /��
,/ �
® pap'
�/ii
:rom, Ramsey and aesociatea
Protect Staging and
Structure
�
1,�
r � AA
' % /
�� /� /�:
/V
f
/I /
/
/I/ A
/ / /� //�
Ladamnan and Cellar
Lederman d
Related Atenn of
Related Amenities
i�/4
1 / % /��%
(//,/�17/1�!/L/
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Alexander end Hackman
r
�/�///�/
Total hours
Profeeeional fees
Out -of- pocket coete
232
$5,800
$2,200
242
$8,050
$ 2100
298
$7,400
$3,700
$19,
$ 8,
•
• •
IV -2
2.0.4. City Staff Participation
It is anticipated that City staff time would be required in the initial
data gathering work phase. However, this time involvement would be considered
minimal and probably would not exceed utilization of no more than 10 to 14
man -hours of City staff time.
Involvement on the part of the members of the city related development
committee would be up to the discretion of the City and we foresee a number of
interactive meetings during the course of the study. These interactive meetings
are designated on the Project Schedule program.
3.0.0. Manpower Utilization
Based on the work study program, as outlined, the chart on the facing
page illustrates the number of man -hours necessary to perform each study work
step. Related professional fees and estimated out of pocket expenses per work
step are included.
FEE STRUCTURE
Based on the consultant team's review of the indicated work program
the following fee structure has been allocated for the three indicated work
steps:
Professional Out -of- Pocket Total
Fee Costs Amount
[York Step One $ 5,800 $2,200 $ 8,000
Work Step Two 6,050 2,100 8,150
Work Step Three 7,400 3,700 11,100
Total $19,250 $8.000 $27 250
The fee as quoted is hereby stipulated as the maximum professional fee
to be charged on this engagement. Out -of- pocket costs are estimated according
to the work program outline, but in any event would not exceed $8,000.
•
� m
1�&
• •
_GREGORY CROWN:
Education:
MICHAEL RAMSEY:
Education:
V -2
ANALYSIS EVALUATION GROUP
M.B.A. - Michigan State University
Graduate School of Business
Administration, East Lansing, Michigan
1967 - 1971 - Cornell University, Ithaca,
New York. Received Bachelor of Science
degree in Hotel Administration in
June, 1971.
Midwestern University, 1965 -1970,
Wichita Falls, Texas
Degree: Bachelor of Science
Major: Economics
Minor: Political Science, Business
Administration
Texas Christian University, 1970 -1972,
Fort Worth, Texas
Degree: Masters of Business Administration
Concentration: .Economics- Finance,
Management, Statistics
•
V -5
BACKGROUND OF FIRM
LKH&H is one of the ten largest firms of independent certified public
accountants in the United States. We employ over 2,000 people in 34 offices in
the United States and have 73 offices overseas. LKH&H traces its origin back to
1915. Since our inception, we have been recognized as a leader in the leisure
time industry.
The importance placed upon this segment of the economy is clearly
evidenced by the fact that LKH&H has a full time National Director of Leisure
Time Industry (which encompasses our hotel -motel services) as well as a National
Research, Development and Education Department.
This department compiles and evaluates worldwide industry statistics
which, along with our projections and comments, are frequently quoted in leading
newspapers, magazines and hospitality journals. These statistics and the
'departments research capabilities are utilized in the publication of our
many studies, i.e.:
- Annual "Lodging Industry" (United States)
- Annual "Worldwide Operating Statistics of the Hotel Industry"
- Monthly "Trend of Business in Hotels"
- "The Tourism Gap: Can it be Bridged ?"
Our reports are well recognized and received throughout the world.
Considerable time and energy is devoted to research in the leisure time industry.
Two projects presently in process pertain to hotel and motel marketing-needs
and quantative measurements in hotels. We are also currently investigating the
impact of the energy crisis on hotels and motels.
Our firm employs professionals experienced in every aspect of the
leisure time industry, including accounting and auditing, taxation, SEC, hotel
and restaurant operations, systems and EDP. Our consulting services
are available throughout the world.
•
s
Mr. John Townsend
800 St. Clair River Drive
P. 0. Box 305
Algonac, Michigan
Copaken White & Blitt
Oak Park
Kansas City, Missouri
City of Detroit, Michigan
Detroit, Michigan
The Goodman Company
PhiladelpIi a, Pennsylvania
Holton Development Co.
St. Louis, Missouri
G.S.G. Development Co.
Arlington, Texas
Report:
•
VI-1
Financial Feasibility of a
Proposed 70 acre land
parcel
Survey to include:
rotor inns marina apartments
condominiums conference center
retail sales stores
Report: Financial feasibility study
for proposed 1,250,000
square foot center
Survey to include: Hotel and Conference
Center
Motor inns Apartments
Recreational center Retail sales
stores
Report:
Report:
Report:
Report:
Market and Financial
feasibility for a
proposed center city
convention center.
Market Analysis and Economic
Planning Study for the
re- development of a
major urban area in
Pennsylvania
Market Analysis and Physical
Planning Study for a
center business district
in St. Louis County
Market Study and economic
modeling for a highly
stylized executive con-
ference and convention
facility plus related
hotel and recreational
amenities
•
CITY OF CORPUS CHRISTI, TEXAS
CERTIFICATION OF FUNDS
(City Charter Article IV Section 21)
March 27. 1974
I certify to the City Council that $ 27,250.00 , the amount required
for the contract, agreement, obligation or expenditures contemplated in the
above and foregoing ordinance is in the Treasury of the City of Corpus Christi
to the credit of:
Fund No. and Name 121. General Revenue Sharing F„nd
Project No. Activity 6701, Code 49n
Project Name
First Entitlement Perind Rpopnup Mh i g _rve Fund
from which it is proposed to be drawn, and such money is not appropriated for
any other purpose.
eaeo, 38,o�3-
81'1A'
FIN 2 -55
Revised 7/31/69
19 IV
Corpus Christi, Texas
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause of the foregoing
ordinance, a public emergency and imperative necessity exist for the suspen-
sion of the Charter rule or requirement that no ordinance or resolution shall
be passed finally on the date it is introduced, and that such ordinance or
resolution shall be read at three meetings of the City Council; I, therefore,
request that you suspend said Charter rule or requirement and pass this ordi-
nance finally on the date it is introduced, or at the present meeting of the
City Council.
Respectfully,
MAYOR
THE CITY OF CORPUS CHRISTI, -XAS
The Charter rule was suspended by the following vote:
Jason Luby
James T. Acuff
Rev. Harold T. Branch
Thomas V. Gonzales
Ricardo Gonzalez
Gabe Lozano, Sr.
J. Howard Stark
The above ordinance was passed
Jason Luby
James T. Acuff
Rev, Harold T. Branch
Thomas V. Gonzales
Ricardo Gonzalez
Gabe Lozano, Sr.
J. Howard Stark