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PUBLIC OPINION SURVEY RESULTS
The Clarendon Hotel
SPECIAL MEETING ON CLARENDON DEVELOPMENT August 31, 2009
The purpose of tonight's special meeting of City Council is to discuss and determine the reuse of the Clarendon Building located in the heart of downtown Historic St. Clairsville. The design uses in consideration are that of a Hotel/Restaurant or Office/Restaurant. Director of Public Services, Dennis Bigler, explained that a questionnaire had been mailed to the property owners in the downtown district and the rest randomly distributed throughout the city residents to approximately 400 surveys. Another 100 surveys were emailed to city residents.
The survey, a copy of which can be viewed by clicking this link, explained the current situation of the Clarendon building with respect to the development.The City of St. Clairsville has been actively seeking an independent developer to complete the Clarendon as a Hotel/Restaurant. There have been a total of 8 serious lookers, 7 of which thought it would work as a hotel but take time to develop and be successful. The last did not think it would work. In all it is a matter of risk.
The City of St. Clairsville is facing a deadline with respect to grant funding issued for the development of the Clarendon. In order to keep the funding, the building must be operational by 2011. Therefore, the City is exploring the option of being the "last developer of choice" and developing the building itself. With this in mind, Bigler wanted input from the residents of the City of St. Clairsville and therefore sent the surveys asking which option residents would be in favor of: (1)Hotel/Restaurant or (2)Office/Restaurant.
A total of 154 responses were returned from the survey, 80 favored the hotel/restaurant and 74 favored the office/restaurant. Of the downtown owners, 22 out of 73 responded with 12 in favor of a hotel and 10 in favor of offices.
Some of the comments returned on the surveys in favor of a hotel were:
- There is already enough office space in St. Clairsville and some are empty.
- A Historic Hotel restored would be an asset as the center point of the downtown district.
- A hotel would bring people into town during special events
- A hotel would be nice for visitors to residents
- Specialty shops could be developed in the lobby as well as throughout Main St.
- A hotel would promote tourism in town that would benefit all the shops.
- A hotel/restaurant should serve breakfast and dinner.
- Rooms for conferences and wedding could be available.
- A hotel would have the most potential for the dollar.
- Perhaps install a stage for small theatre groups or bands.
Some of the comments returned with regards to the office space were:
- There is not enough office space in St. Clairsville
- Office space could be custom designed to fit an office tenant.
- Use of space to make the City offices accessible.
- Office space would be permanent
- Office space would have "cutting edge" technology.
- There should be a marketing study completed.
Bigler explained that much work, including a marketing study, has already been completed. Jill Lucidi, Finance Director, said that the City would lose tax money if the building is used for government offices.
Comments continued that there is a question of occupancy with both the hotel and office option. A criticism of the office option is that it would indeed compete with other office space in the downtown area.
The second major goal of the hotel option is the economic spinoff to the downtown area. The possibility exists of smaller shops opening and increased business for the existing shops.
A criticism for the hotel would be that if it fails, it could quickly become a cash drain as it would have to be staffed and maintained.
Commissioner Ginny Favede attended this evening and added that she encourages City Council members to read through the CITY OF ST CLAIRSVILLE, OHIO Historic Downtown District Revitalization Plan authored by Dennis Bigler and available through his office or on the city web site. She reminded Council that the "mission is economic development" and quoted: "In communities all across the country, it has been repeatedly proven that economic development is synonymous with historic preservation."
Favede continued by urging Council to "Stay the Course". The City of St. Clairsville is a progressive town. Remembering the America In Bloom competition, she stated that it wasn't just a "flower show" but a chance for St. Clairsville to expand in many areas and brought national recognition to our town.
She stated that there is approximately 90% occupancy rate in the downtown area right now and have heard comments that if the City chooses the office option, individuals would no longer be inclined to purchase or build in the area. Commissioner Favede said that Belmont County Tourism has invested in the renovation of the old Sheriff's residence to open a Tourism office. This would greatly enhance the hotel option as it is located directly across the street and would assist travelers. There are three points to consider in this discussion: the first being that the downtown was renovated in the last 80's, the Tourism Council will be opening the Tourism office and the Clarendon would be the anchor of all three points. She finished by saying that tourism is something that has to be created. You cannot wait for it to happen and then proceed with these types of plans.
Dennis Bigler added that the value of the construction often exceeds the building value. Keep in mind that there hasn't been a lot of investment in the downtown area since the revitalization. Government funds cannot continue to be used for the renovation of the downtown buildings. The amounts that the government offers does not change so the amount offered in the 80's is the same offered now but it buys less. Property owners in the downtown area would not be encouraged to keep their properties looking as nice as they do now if the Clarendon was allowed to be destroyed or run down. Bigler stated that if the building was destroyed, it would be the ruin of the downtown area as it is today and it would not take long. The strategy behind the Historic Downtown District Revitalization Plan is how you can build value and the Clarendon is included in that plan.
Mayor Robert Vincenzo said that the City of St. Clairsville has exhausted many avenues and endeavors. The City has not been able to secure anyone to become interested in developing the Clarendon. He is concerned about the office space option because of the other vacancies throughout the city. The economy also plays a role in the decision as it limits our options. Everything stagnated, explained Mayor Vincenzo. If he had to pick tonight, he would be unsure of his decision. He would lean toward the hotel option but it is a risk. He said that medical offices could be built there but that would take from the hospitals who are building offices within or next to the hospitals for their doctors.
Mayor Vincenzo said that it worries him that the City would be an operator. He never intended for that to happen.
Planning and Zoning Officer, Tom Murphy, explained that he would like to see the hotel reborn. The comments he has heard this evening are consistent with others he has heard in the past. He has also heard the comments about the local hotels but pointed out that the occupancy rate of the local hotels run above the national average.
Bigler confirmed that the averages slightly exceed the national average but added that a hotel of this type, meaning restoring the Clarendon to it's historic past, would be the only hotel of its type in the Wheeling market. Bigler added "If the City doesn't step in, who will? No one." To tear it down would be the beginning of the downtown deterioration.
There have been other cities that have taken on the position of developer of last resort. The City of St. Clairsville has an excellent record of development citing the success of the National Road Bikeway which was opposed in its original stages. Bigler explained that very little of the city's money would be involved in the project so that if the hotel failed, the city wouldn't lose a lot of its own funds.
Attorney John Estadt, having sat in attendance listening to the comments made this evening asked if the City developed it as a hotel, could it be sold further down the road. The answer was yes it could and it is hoped that having completed the project, there would be more interest.
Estadt said that his favorite phase is "Is this a great country or what?" He has been in St. Clairsville since the 70's and believes that the government is "of the people, for the people, by the people." He feels that the City shouldn't be competing against the people by developing the space as office space which would directly compete with the downtown area.
Council President Pat Bruhn concluded the discussion by asking each member of council for his opinion on the matter.
- Michael Kasper - Kasper explained that he is worried and scared about the hotel option. But he feels that if we don't do something, Council would be letting the City down. A hotel could encourage other businesses to open and boost existing businesses. Kasper feels it will be a risk in either direction. Office space will be expensive and will take from the downtown businesses. Kasper voted for the hotel option.
- Jake Olsavsky - Olsavsky stated that he feels the same way as Michael Kasper. He explained that there are hotels of the same nature in the outskirts of Cleveland that have tea rooms and restaurants. They seem to be doing well. He feels if it doesn't succeed, the space could be reverted back to offices. Olsavsky also said that if the City finishes the hotel, perhaps the 8 serious developers that were here would see the potential.
- Tim Porter - Porter does not feel there is any value in the office option to the community. A hotel will be risky but we started from day one assuming it would be a hotel and we should follow through. The marketing issue is going to be the thing. The hotel has to be ready to fly when it is done which means strong marketing. This hotel is not slated for the usual pass through traveler that many of the local hotels receive. This is for the upper rate traveler looking for tourism.
- John Bukmir - Mr. Bukmir said that he stated his position at the last meeting and that hasn't changed. He made no further comment.
- Frank Sabatino - Sabatino stated that the building was designed for a hotel and should stay a hotel but he does not think we are a big enough player for a hotel. He tends to be more conservative in his thinking and feels the City should stick to the office option. He is fearful the City will have to use tax payers money.
- Perry Jones - Jones said that 8 developers came and reviewed the building and they know the hotel business. He repeated that 7 said it would work but be risky and one said it would not work at all. Jones continued by saying that these developers are professionals and could see the potential even without having it finished. "It isn't a 'build it and they will come' situation." stated Jones referring to the remark made by Jake Olsavsky. Jones finished by saying he would hate to use the taxpayers money and lose it.
Bigler interjected that each developer that reviewed the building were being asked to make a $1,000,000 investment to the project, $500,000 for the hotel and $500,000 for the restaurant. With that in mind, they didn't know the market for the area and did not want to take the risk.
- Jim Weisgerber - Weisgerber feels that the hotel option would be a risky business. His heart is saying hotel but he doesn't think it is going to fly.
The Mayor's final comment was to bring up the LaFayette Hotel in Marietta. It is surrounded by other familiar chains of hotels and they are still competing. It is a historic hotel and although the current economy has slowed its business, it is still operational. It has small meeting rooms for conferences and a restaurant.
A motion was made to accept and proceed to develop the Clarendon building as a hotel. The motion was passed five in favor and two against.
The meeting was adjourned at 8:30 pm.
Enter the Clarendon Hotel web site now!
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