CITY OF HOMER

CITY HALL

MEMORANDUM 05-04

To: Mayor and Council

Through Walt Wrede, City Manager

From: Anne Marie Holen, Special Projects Coordinator

Date: January 3, 2005

Subject: Conference Center Feasibility Study

On Thursday, December 30, a review committee consisting of myself, City Council members Beth Wythe and Dennis Novak, former City Council member John Fenske, City Planner Beth McKibben, and Town Center Development Committee members Bill Smith and Derotha Ferraro met to discuss the six proposals submitted in response to the City of Homer’s RFP for professional services to conduct a conference center feasibility study.

The discussion was eventually narrowed to two proposals, both from firms that specialize in analysis and planning for conference and convention centers and other “event facilities.” After further discussion we reached consensus to recommend that the contract for the Homer Conference Center Feasibility Study be awarded to CSL (Conventions, Sports & Leisure) International, based in Minneapolis, Minnesota. Our decision was based in part on CSL’s experience in smaller towns and on a very positive reference from one of those towns (Havre, Montana).

CSL’s proposed work program is clear and thorough, covering seven tasks with specific steps associated with each task. The seven tasks are market demand analysis, building program and event levels analysis, financial operations and preliminary cost analysis, economic and fiscal impact analysis, funding alternatives analysis, ownership/management analysis, and preparation of reports and presentations. The CSL proposal notes that the study can be terminated after Task 1 (market demand analysis) if it appears that market demand is insufficient to support a conference center in Homer.

CSL proposes conducting the study in 15 weeks or less at a cost of $45,000 for professional fees and expenses, which will include two trips to Homer for the project manager. (Review team members expressed that a third trip during the middle of the study would be desirable, if possible.)

CLS’s proposed project team consists of Project Manager Bill Krueger, who has managed more than 150 convention/conference center feasibility study projects, and three assistants with degrees in economics, finance, and business management.

Funding for this project comes from the Alaska Department of Commerce, Community and Economic Development ($30,000 mini-grant), from the City of Homer ($11,500), the Homer Chamber of Commerce ($2,500) and the Homer Bed & Breakfast Association ($1,000). All work must be completed by June 30, 2005 to meet the terms of our grant agreement with DCED.

RECOMMENDATION: AWARD A CONTRACT FOR A CONFERENCE CENTER FEASIBILITY STUDY TO THE FIRM OF CSL INTERNATIONAL, FOR AN AMOUNT NOT TO EXCEED $45,000.