Convention Center Committee - May 9, 2025

Present: Katlyn Balstad, Charley Johnson (via video conference), Mallari Ackerman (via video conference), Clare Hughes, Kent Kolstad, Taylor Snelling, Denise Kolpack, Tim Mahoney, Dave Piepkorn.

Absent: Shannon Full, Emma McIntyre, Joe Raso, John Strand, Michelle Turnberg.

Others Present: Jim Gilmour, Assistant City Attorney Erik Johnson (via video conference), Michael Redlinger, Susan Thompson, Steve Scharff, Baker Tilly (via video conference).

Steve Scharff from Baker Tilly presented an analysis of the financing capacity for the convention center, based on projections for the 3% lodging tax. He said the analysis assumes tax receipts beginning June 15, 2026, with a 2% growth assumption for the first 10 years and 1% growth thereafter. He said financing is assumed to close in August 2026, with the first payment in June 2027, over a 20-year term. The estimated financing capacity is in the $37-38 million range, he said, with a potential range of $38-41 million depending on growth assumptions and financing terms.
Susan Thompson clarified that the presentation was a preliminary analysis with conservative assumptions.
The Committee discussed the growth rate of hotel tax revenue and the importance of conservative estimates for investor assurance.
Mr. Scharff agreed to provide additional details on monthly collection estimates and growth assumptions.
The Committee reviewed the revised RFP criteria, including site considerations, conceptual plan, urban considerations and development team qualifications.
Adjustments were made to the site considerations, with a discussion on the definition of "attached or adjacent hotel" versus "proximate to hotels".
The Committee decided to move "approximate to existing planned dining retail and hotels" to the urban category.
In the conceptual plan discussion, clarification was provided on accessibility (ADA compliance).
There was a suggestion to combine hotel and restaurant considerations into one category, but it was decided to keep them separate due to the need for considering both the required hotel and surrounding hotels.
The Committee discussed how to define and evaluate "resident sentiment" in the urban considerations, and decided to remove it as a separate criterion, with an understanding that public input would be considered.
Jim Gilmour explained the importance of evaluating the development team's experience and financial capability.
Susan Thompson suggested including a statement in the RFP that a thorough financial review will be conducted in phase two.
The Committee discussed the terminology for valuation in the RFP, noting that some criteria involve subjective judgment rather than simple compliance.
The Committee discussed the minimum requirements for the RFP, including an attached hotel with 150-200 guest rooms and a ballroom of at least 20,000 square feet.
Mr. Scharff said he will send additional documentation on financial analysis to Committee members and that will be posted on the City website.
Mr. Gilmour said he will work on a model for a sliding scale for evaluation criteria.
The meeting was adjourned at 2:03 p.m.