02-05-1996 WS - Laserfiche WebLink

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• • Mounds View & General Market Trends. Market trends regarding population, income, employment, traffic volumes, recreational attractions, economic growth and especially Mounds View community support for a first class hotel meeting facility all provide a positive environment for the development of a new hotel in Mounds View. • Site & Surrounding Area. We have studied the site and surrounding areas in terms of existing buildings, land use, appraised value, zoning, licenses & permits, access & visibility, traffic patterns, and proximity to lodging demand generators. Three points: (1) We recommend the that the efforts to acquire 2190 Highway 10, the Rent All site, be documented and reviewed with the City of Mounds View and assistance in acquiring this site be requested; (2) We recommend that the feasibility of successfully acquiring 2295 & 2297 County Road H be discovered before any further steps are taken with the hotel development as the land cost will directly effect the final decision to proceed; (3) We suggest that steps be taken with the City of Mounds View to have the overhead utilities buried along the site. • Review of Previous Studies. We have reviewed the Hotel Development Survey conducted by the City of Mounds View and the cost estimate prepared by Gilbert Construction. Our recommendation is stop and start over. The survey did not adequately measure lodging demand and the Gilbert cost estimates were based on an incomplete hotel design that did not reflect customer demand. 0 • Architectural Review. We are aware that you had engaged Construction Design & Construction toprovide you with plans and costs prior to this Market Estimating and Gilbert Study. Based on our discoveries, we also provided you with rough alternative plans and costs from hotel architects Schwenn & Associates. We would advise the chosen architect to seriously consider the recommendations in this report when programming the utilization of space for this proposed hotel. • Lodging Supply Analysis. Regarding the competitive hotel supply, we have several conclusions: (1) There is demand for lodging concentrated in your backyard that can be captured by the proposed hotel; currently, that demand is being captured in in diluted 1 amounts by the primary competitors; (2) The new Comfort Inn Coon Rapids will cause a decline in occupancy at the Country Inn & Suites; it will also impact the Kelly Inn and shift demand out of Brooklyn Park; (3) The new Northtown Mall hotel will cause the largest decline in occupancy at the Comfort Inn Coon Rapids, The Country Inn & Suites and the Kelly Inn and further room nights will shift away from Brooklyn Park; (4) The 62-room addition at the Best Western Maplewood Mall will directly impact the Country Inn White Bear Lake and may cause slight impact as far west as Shoreview & Arden Hills; the occupancy will decline at the BW as the new demand created by the Maplewood Mall will not be enough for the hotel to maintain its current occupancy; (5) The proposed Mounds View hotel should be positioned in the mid-market tier with an average room rate range of $54 --- near the average room rate of the Ramada Roseville.