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2013-04-09 - AGENDA REPORTS - CONFERENCE CENTER MASTER PLAN (2)
Agenda Item: 13 CITY OF SANTA CLARIT; AGENDA REPORT UNFINISHED BUSINESS City Manager Approval: Item to be presented by: DATE: April 9, 2013 SUBJECT: MASTER PLAN FOR A CONFERENCE CENTER IN SANTA CLARITA DEPARTMENT: Community Development RECOMMENDED ACTION City Council receive presentation and direct staff to continue to search for a public-private partnership opportunity for the future potential development of a Conference Center. BACKGROUND On October 27, 2009, City Council commissioned a feasibility study to be performed by PKF Consulting. Their analysis, completed in 2010, concluded that there was sufficient demand for a 40,000-60,000 square foot facility that could be designed to meet the needs of both the local community and regional business demand. This type of facility, which would attract a variety of events year-round, would play a role in maintaining the vitality and health of the area's tourism industry through meeting, conference, and event attraction efforts. On March 13, 2012, City Council approved the Santa Clarita Economic Growth Program and directed staff to move forward with its implementation. This plan included commissioning a master plan for a Conference Center in Santa Clarita. On August 28, 2012, City Council commissioned a master plan for a Conference Center in Santa Clarita by Kosmont Companies (Kosmont). The goal of the Master Plan was to focus on: • Obtaining stakeholder input • Identifying preferred sites • Developing a general program (i.e. size & amenities) • Estimating potential costs • Identifying funding sources • Evaluating management options Kosmont concluded that a conference facility in Santa Clarita could reasonably be expected to attract local, regional, and some national patronage. Based on the goals of the Master Plan, they included the following information in their final report: Obtaininp, Stakeholder Input Kosmont hosted two public meetings to obtain feedback from the community. The first meeting, held on Thursday, November 8, 2012, at City Hall, solicited feedback from the community on desired uses, amenities, and location through an open house format. The second meeting was held on Wednesday, December 5, 2012, at the Activities Center, and included a presentation summarizing what had been learned from the first public meeting and subsequent research including further details on costs and financing options. Kosmont met with the City Council Economic Development Subcommittee twice; on November 28, 2012, and on February 26, 2013, to update the subcommittee on their progress. At both of those meetings the subcommittee expressed concern with the potential cost for the conference center. Identification of Preferred Sites Given the three main factors for a succesful location for a conference center; 1) proximity to hotel rooms, 2) proximity to retail and restaurants, and 3) freeway accesibility, the recommended location for a Conference Center is in the vicinity of the Westfield Valencia Town Center near the existing Hyatt Regency Valencia hotel. This location will maximize the patronage of the conference center from visiting groups and maximize the economic impact from those visits. If the goal for the Center is to merely serve the needs and desires of residents, and not to attract visitor patronage and induce economic activity, then there are many locations within Santa Clarita that have attractive settings and may be appropriate. Development of a General Program The size of a facility is driven heavily by the size of the main meeting rooms. The recommended size of a Conference Center would include a 55,000 square foot facility anchored by a 20,000 square foot main ballroom which would accomodate approximately 1,481 people in a typical banquet configuration. An alternate smaller size would include a 40,700 square foot facility anchored by a 12,000 square foot main ballroom which would accomodate approximately 888 people in a typical banquet configuration. For comparison, the large banquet room of the Hyatt is 5,684 square feet and can accomodate approximately 421 people in a typical banquet configuration. Estimation of Potential Costs In general, facility costs for conference centers can be divided into two groups - construction/delivery costs and ongoing operational costs. Delivery costs are typically paid through financing, similar to that of a mortgage on a home. Ongoing operational costs include maintenance and staffing and are akin to expenses a homeowner would typically pay on an ongoing basis such as insurance and utilities. Kosmont found that a successful conference center may generate enough revenue annually to support operating costs but is unlikely to support the 2 "mortgage payment." There are many variables that affect the total construction/delivery costs including a wide range of potential land costs, costs of surface parking vs. structured parking, size of the facility and of the property acreage, among others. Based on the following scenario of the larger -sized 55,000 sq. ft facility, land acquisition of 8-12 acres and assumption of constructing a two-story parking structure, it is estimated that the total construction/delivery costs could be between $40 million and $65 million. The alternate, smaller -sized facility, or the use of surface and/or shared parking, could significantly decrease delivery costs. Bonds likely represent the most efficient financing vehicle for such a facility. Assuming bond financing of $50 million at an interest rate of 4.5%, the annual debt service would be approximately $3.38 million. For the ongoing operational costs, Kosmont estimates that the City would benefit from an approximate net operating income (NOI) of 18%, or approximately $600,000 annually. With the estimated proforma of $600,000 in annual revenue, and $3.38 million of annual debt service, the NOI would still leave the City with a $2.78 million annual shortfall to build the larger -sized facility. Identification of Funding Sources The report indicates utilizing the incremental increase in Transient Occupancy Tax due to increased hotel stays generated by Conference Center demand as one potential funding source. Another suggestion is increasing the Tourism Marketing District assessment as a potential way to cover a portion of this gap. The report also outlines a public-private partnership as a way for the City to reduce exposure to construction and operation risk. It references a possible transaction with a hotel developer to deliver a facility of the size and with the amenities that the City desires, in exchange for a public subsidy. In this scenario, the hotel would own and operate the Conference Center. The Hyatt Regency Valencia received such assistance in the development of their hotel and conference center. Evaluation of Management Options Operating a Conference Center takes a team of experienced professionals with very specific skill sets. Most publically-owned facilities that were researched tended to be managed through a private management company under short or medium-term contract. Professional management can provide a large pool of marketing contacts and the ability to compare performance across centers, facilitating adjustments as necessary. Should the City build a standalone Conference Center, Kosmont recommends that the City consider this private management approach. The full report lists examples of comparable conference centers and both their financing and management methods. Based on the findings of the report and the potential cost of a standalone facility, City staff recommends that the City continue to search for a public-private partnership opportunity for the development of a Conference Center in Santa Clarita. ALTERNATIVE ACTIONS Other action as determined by City Council. FISCAL IMPACT None ATTACHMENTS Conference Center Master Plan - March 2013 - in City Clerk's Reading File CITY OF SANTA CLARITA 0 CONFERENCE CENTER MASTER PLAN pA&j kos molnALI companies Gensler MARCH 2013 PKF CONSULTING USA • Table of Contents SANTA CLARITA - CONFERENCE CENTER MASTER PLAN IN 1.0 Executive Summary ........................................................................................................ 1 2.0 Background.................................................................................................................... 2 3.0 Meeting Market Background........................................................................................... 3 3.1 General Market Trends................................................................................................ 3 3.2 Existing City Facilities.................................................................................................. 4 3.3 Existing Facilities in the Region.................................................................................... 5 3.4 Standalone Conference Centers.................................................................................. 6 4.0 Facility Success Drivers................................................................................................. 7 4.1 Facility Capacity........................................................................................................... 7 4.2 Preferences of Meeting Planners................................................................................. 7 4.3 Proximity and Supply of Hotel Accommodations.......................................................... 9 4.4 Destination Appeal & Amenities..................................................................................11 4.5 Facility Amenities........................................................................................................11 5.0 City Success Drivers.....................................................................................................12 5.1 Transportation & Ease of Access................................................................................12 5.2 Hospitality Amenities...................................................................................................17 5.3 Restaurant & Retail Amenities....................................................................................19 5.4 Recreation & Entertainment........................................................................................19 5.5 Weather & Setting.......................................................................................................20 6.0 6.1 Conference Center Program...................................................................................21 Conference Facility Spaces ....... ..21 6.2 Facility Capacity..........................................................................................................22 6.3 55,500 Square Foot Example.....................................................................................24 6.4 40,700 Square Foot Example.....................................................................................25 6.5 Outdoor Function Space.............................................................................................25 6.6 Kitchen........................................................................................................................26 6.7 Parking.......................................................................................................................26 6.8 Required Site Area......................................................................................................26 6.9 Green Design..............................................................................................................28 6.10 Additional Room Considerations.................................................................................28 6.11 IACC Design Standards..............................................................................................28 7.0 Locations Evaluated......................................................................................................29 7.1 Subareas Evaluated....................................................................................................29 7.2 Individual Locations....................................................................................................30 8.0 Management Options....................................................................................................32 8.1 City Managed..............................................................................................................32 8.2 Private Management Company...................................................................................32 9.0 Public Input...................................................................................................................33 9.1 Types of Events..........................................................................................................33 9.2 Size & Configuration...................................................................................................34 9.3 Room Function...........................................................................................................35 9.4 Preferred Location......................................................................................................35 9.5 Desired Amenities.......................................................................................................36 10.0 Development & Operational Costs.................................................................................37 10.1 Building Costs.............................................................................................................37 SANTA CLARITA - CONFERENCE CENTER MASTER PLAN IN 10.2 Parking Costs.............................................................................................................37 • 10.3 Land Costs.................................................................................................................38 10.4 Operational Costs.......................................................................................................38 10.5 Refresh Costs.............................................................................................................40 10.6 Public -Private Alternative............................................................................................40 10.7 Phased Alternative......................................................................................................40 10.8 Repurposing Alternative..............................................................................................40 11.0 Financing.......................................................................................................................42 11.1 Cost of City Financing.................................................................................................42 11.2 Bond Financing...........................................................................................................42 11.3 Hospitality Taxes........................................................................................................43 11.4 Public -Private Alternative............................................................................................44 12.0 Economic Benefits.........................................................................................................45 13.0 Sample of Centers Evaluated........................................................................................49 13.1 Glendale Civic Center.................................................................................................49 13.2 Monterey Conference Center......................................................................................50 13.3 Hurst Conference Center............................................................................................51 13.4 Gastonia Conference Center......................................................................................52 13.5 Lynwood Convention Center.......................................................................................53 13.6 Visalia Convention Center...........................................................................................54 14.0 Conclusion....................................................................................................................55 15.0 Appendices...................................................................................................................57 Appendix A: Area Meeting, Conference & Convention Facilities...............................................58 Appendix B: Locations Evaluated..............................................................................................61 Appendix C: Map of Area TOT Rates........................................................................................68 • Appendix D: IACC Standards & Recommendations..................................................................69 Appendix E: Abridged List of Pertinent PKF Assignments.........................................................79 SANTA CLARITA - CONFERENCE CENTER MASTER PLAN e Index of Tables & Figures Table 1: Number of Meetings, Attendees 2004 & 2011 ........................................................ 3 Table 2: List of Existing Meeting Facilities In/Near the City ................................................... 5 Table 3: Summary of Area Conference Room Sizes............................................................ 6 Table 4: List of Proximate Hotels - STR Rating of Midscale or Better..................................18 Figure 5: Meetings with Incorporated Activities by Activity Type..........................................11 Table 5: Approximate SF Per Person By Seating Configuration..........................................22 Figure 6: 15, 30, 60 Minute Drive Time Map........................................................................13 Table 6: Approximate Room Capacity Based on SF Allowance / Person .............................23 • Figure 7: 15, 30, 60, 90, 120 Minute Drive Time Map..........................................................14 Figure 8: Proximate Rail Stations........................................................................................15 Table 7: Approximate Acres of Land by Parking Capacity & Type.......................................27 Figure9: Proximate Airports................................................................................................16 Table 8: Total Required Site Area.......................................................................................27 Figure 10: Preferred High Speed Rail Alignment.................................................................17 Table 9: Approximate Facility Development Cost by Cost Per SF & Gross SF ....................37 Figure 11: Map of Proximate Hotels - STR Rating of Midscale or Better..............................18 Table 10: Incremental Cost For Structured Parking by Cost Per Stall & Total Stalls ............ 38 Table 11: Potential Magnitude of Land Costs......................................................................38 Table 12: Sample Center Operating Proforma.....................................................................39 Table 13: Approximate Annual Bond Payment (30 Year Bond)...........................................42 Table 14: Potential Distribution of Local Versus Visitor Attendees (Annual) ........................46 Figure 1: Year to Year Trend in Forward Looking Projected Meeting Statistics .....................4 Figure 2: Important Factors for Meeting Planners in Selecting a Destination .........................8 Figure 3: Important Factors for Meeting Planners in Selecting a Facility or Hotel ..................9 Figure 4:Typical Meeting Duration... .................................................................................... 10 Figure 5: Meetings with Incorporated Activities by Activity Type..........................................11 Figure 6: 15, 30, 60 Minute Drive Time Map........................................................................13 • Figure 7: 15, 30, 60, 90, 120 Minute Drive Time Map..........................................................14 Figure 8: Proximate Rail Stations........................................................................................15 Figure9: Proximate Airports................................................................................................16 Figure 10: Preferred High Speed Rail Alignment.................................................................17 Figure 11: Map of Proximate Hotels - STR Rating of Midscale or Better..............................18 Figure 12: Preliminary 55,500 Square Foot Building Program.............................................24 Figure 13: Preliminary 40,700 Square Foot Building Program.............................................25 Figure 14: Map of Location Subareas..................................................................................29 Figure 15: Types of Events Respondents Would Like to Use Center For ............................33 Figure 16: Size & Configuration of Events Respondents Would Like to Use Center For ...... 34 Figure 17: Room Function Best Suited to Respondents Needs...........................................35 Figure 18: Location of Center Preferred by Respondents....................................................35 Figure 19: Importance of Features & Amenities to Respondents.........................................36 Figure 20: City TOT & TMD Revenues................................................................................43 Figure 21: Scope of Meeting Attendance.............................................................................46 Figure 22: Estimation of Potential City Sales, Hospitality Taxes..........................................47 • SANTA CLARITA - CONFERENCE CENTER MASTER PLAN e 1.0 Executive Summary Santa Clarita is in the process of evaluating the construction and development of a conference center ("Conference Center", "Center") within the City. As part of this effort the City of Santa Clarita ("City") retained Kosmont Companies ("Kosmont"), and subconsultants Gensler and PKF Consulting ("PKF") to develop a master plan ("Master Plan") for this potential Center. Prior to the preparation of this Master Plan, the City retained PKF to study the potential market demand for a Conference Center in the City. PKF found that there may be sufficient demand in the market to support the development of a Center with a large ballroom of up to 20,000 square feet, and a total building area of 40,000 to 60,000 square feet ("SF") with all associated amenities. This Master Plan evaluates such a Center, and in general, the team found that: • A conference facility in Santa Clarita could reasonably be expected to attract local, regional, and some national patronage, and retain some local demand for conference and meeting room capacity. • A conference facility's ability to attract multiday regional or national patronage is highly correlated with proximity to hotels, dining, and places of interest. • Even a fairly successful conference center may not generate sufficient revenues from direct operations to fully support the cost of ongoing operations and financing costs related to facility construction. • Despite the cost outlay frequently required for conference facilities, municipalities • sometimes elect to construct and operate such facilities as a component of an overall economic development strategy. In these instances certain public agencies will view the facility and operating costs as a loss leader to increase economic activity, increase sales and hotel tax revenues, ensure long-term competitive advantage within the region, and provide an amenity desired by businesses and residents. • Instead of proceeding independently, the City could pursue a public-private partnership with the objective of delivering the desired facility at a reduced public cost, and with significantly limited construction and operational risks as compared to a publicly developed and operated center. The design considerations and potential operational impacts of a conference facility with approximately 22,000 - 30,000 square feet of meeting area within the City were evaluated in this Master Plan. Depending on the ultimate size, included amenities, and need for structured parking, such a facility would likely cost between $15 million and $30 million to construct, and could likely be financed using 30 year bonds at a cost between $1 to $2.5 million annually. These costs do not include land costs, which can be estimated to be between $5 million and $20 million for an 8-12 acre site. The total cost for a 55,000 square foot facility, including a two level parking structure, and an allowance for land is estimated to be between $40 million and $65 million. Direct tax revenues that would be generated by a larger facility are estimated to be approximately $150,000 to $250,000 per year with higher or lower levels possible. These revenues would be expected to increase over time, and notably higher revenues may be attainable through marginal increases in hospitality tax rates. Finally, should the City be hesitant to make the investment required to develop a standalone Conference Center, a public-private alternative may achieve the desired results • while reducing the City's exposure to construction and ongoing operational risk. A detailed discussion of the basis of these conclusions is provided herein. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 9 1* 2.0 Background As previously introduced, in 2010, the City retained PKF, a hospitality and conference facility consulting firm, to evaluate the local conference center market, and potential market demand for a conference center. PKF's findings were presented in its October 2010 Report of Potential Market Demand For a Proposed Conference Center To be Located in Santa Clarita, California ("Market Study"). As part of its analysis PKF conducted outreach to stakeholders including potential users and hotel operators, evaluated national trends, and regional demand, and concluded that the market would likely support a 40,000 to 60,000 square foot conference center within the City. The conclusion of total size is driven by a main ballroom encompassing approximately 20,000 square feet, with the remainder of the facility, including support space, and ancillary meeting rooms provided in proportion to the main ballroom based on industry best practices. A detailed description of the Conference Center components is provided in Section 6.0 Conference Center Program. Subsequent to PKF's analysis, in 2012, the City retained Kosmont and subconsultants Gensler and PKF to develop a Master Plan for a potential Conference Center within the City. The goals of the Master Plan process were: • To obtain public and stakeholder input on a potential conference center • Identify preferred sites for a Center • Develop a general development program (i.e. size and amenities) • Estimate the magnitude of potential development and operational costs • Identify potential funding sources • Evaluate potential financial benefits to the City • Evaluate Conference Center management options • This Master Plan was prepared though a wide variety of research, industry experience, best practices, and public input, and provides a detailed discussion of the findings and conclusions based thereon. For reference, sources of information utilized include the following: • Available information from existing conference center operators including cities with conference centers • California Local Government Finance Almanac • ESRI • International Association of Assembly Managers • International Association of Conference Centers ("IACC") • Meeting & Conventions Magazine • Meetings Focus Meeting Market Trends Survey 2012 • Public outreach and workshops • United States 2010 Census SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 1* 3.0 Meeting Market Background While the focus of this document is on planning and program considerations for the development of a Conference Center in the City, some background information on the market, and an inventory of existing facilities in the local and regional market is provided below. A detailed evaluation and discussion of the overall conference center market, and the market in the local area is included in the Market Study previously completed by PKF and should be referred to for additional information. 3.1 General Market Trends The meetings and conference market is heavily influenced by macro economic cycles, with swings in attendance and expenditures that tend to be amplified relative to upward or downward trends in the economy. Meetings and event expenditures are often the first line of cuts in discretionary budgets during periods of economic contraction and conversely a beneficiary of increases in marketing and outreach efforts during periods of economic expansion. Based on available information, conference spending and attendance appears to have been notably impacted during the recent recession, and while it has seen fairly consistent annual growth since 2009, as of 2012, meeting expenditures remain slightly below 2009 levels. However, as shown in Table 1 below, available data for the period between 2004 and 2011 indicates that despite the interim recession, the number of meetings has grown at a compound annual growth rate ("CAGR") of approximately 3.3% and attendance has grown at a CAGR of 7.6%. I CIUIC I. IV U1 IUCI UI IVICCIII IYJ, /'111C11U CCS LUU-h Ot LU 1 1 Source Meetings & Convention Magazine, Center for Exhibition Industry Research In addition to the market metrics presented above, forward looking projections by meeting planners and professionals compiled by Meetings Professionals International provide indicators of the perceived health of the meetings market, and for the first time since 2008 indicated a consensus of projected growth in overall event attendance, planner budgets, expenditures per meeting, and the number of meetings. The year to year trend in projections by planners between 2006 and 2011 follows in Figure 1. Should the City decide to develop a Conference Center, it would be prudent to continue to monitor the meetings market and evaluate the potential ongoing impact of the use of technology, including webinars and video -conferencing, and general trends in meeting sizes, quality and frequency on demand for conference facilities. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN Meetings Attendance Average Attendance 2004 2011 CAGR 2004 2011 CAGR 2004 2011 CAGR Corporate 882,100 1,080,400 2.9% 56,410,000 84,068,000 5.9% 64 78 2 Association 155,600 227,000 ,.5 15,807,000 37,473,000 t'..1% 102 165 1.t,, Conventions 12,200 13,700 12,427,000 19,681,000 6.8% 1,019 1,437 5.u% Total 1,049,900 1,321,100 i s° 84,644,000 141,222,000 7.6-, Source Meetings & Convention Magazine, Center for Exhibition Industry Research In addition to the market metrics presented above, forward looking projections by meeting planners and professionals compiled by Meetings Professionals International provide indicators of the perceived health of the meetings market, and for the first time since 2008 indicated a consensus of projected growth in overall event attendance, planner budgets, expenditures per meeting, and the number of meetings. The year to year trend in projections by planners between 2006 and 2011 follows in Figure 1. Should the City decide to develop a Conference Center, it would be prudent to continue to monitor the meetings market and evaluate the potential ongoing impact of the use of technology, including webinars and video -conferencing, and general trends in meeting sizes, quality and frequency on demand for conference facilities. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN Ll • • Figure 1: Year to Year Trend in Forward Looking Projected Meeting Statistics Projected Change 1sw ox .......... ... _... 1006 1007 2008 l0pq 2010 2011 2006 2007 2008 2009 2010 2011 r� OveraliAttendance 12% 23% 19016 -4% 5% 2% ME Planner Budgets 14% 19% 11% -9% -3% 2% Spend Per Meeting 7% 6% 23% 2% -1% 5% Number of Meetings 7% 12% -1% -90/6 3% 8% Length of Meeting 6% 2% 0% -3% 0% 0% Source: Meeting Professionals International FutureWatch2011 3.2 Existing City Facilities There are a number of existing small to medium sized meeting spaces located in and proximate to the City including facilities operated by hotels, recreational entities, and the City itself. These facilities range in size from 300 square feet to 11,264 square feet in total meeting area, and include main rooms ranging from 300 square feet to 5,684 square feet. The largest of these rooms is the Hyatt Regency's Grand Ballroom, which is capable of accommodating between roughly 300 and 600 attendees depending on function type and layout. A list of existing facilities in and near the City follows in Table 2. For reference, the City operates one of the facilities listed, the Santa Clarita Activities Center, and booking requests provide some indication of potential demand. In 2012 there were a total of 753 bookings at the center, including 92 that used the "Arena", 200 in the "Santa Clarita Banquet Rooms", 319 in the "Canyon Rooms", 22 in "Classroom 3", and 120 in "Classroom 4". The City receives regular requests from groups of more than 250 people that the center cannot accommodate, including weddings for 300-500 people, conferences for 300-500 people, conventions for 1,000 or more attendees, graduation ceremonies for 600-1,000, and dance recitals for 600 or more people. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN • • • I ante L: Llst OT Lxlstfnq Nleetlna t-aC10ties In/Near the Largest Room Total Rentable (SF) (SF) Hyatt Regency 5,684 11,264 Embassy Suites 4,456 9,412 Santa Clarita Activities Center 4,000 10,000 Robinson Ranch 3,000 4,800 Valencia Country Club 2,400 3,300 Residence Inn by Marriot 1,518 2,037 Hilton Garden Inn 1,248 2,496 Holiday Inn Express 635 635 TPC at Valencia 1,125 2,325 Courtyard by Marriott 600 1,056 Hampton Inn by Hilton 450 450 La Quinta 300 300 48,075 3.3 Existing Facilities in the Region Santa Clarita is located in Southern California, within the Greater Los Angeles Area, and proximate to downtown Los Angeles. As of the 2010 Census, the Southern California region had a population of roughly 22.4 million, and the Greater Los Angeles Area had a population of roughly 17.8 million. The regions' large population, volume of business activity, and appeal to national and international visitors all serve to drive demand for a geographically dense aggregation of conference and convention facilities. Facilities in the area range in size from small meeting rooms found at many hotels to major convention centers including the Los Angeles Convention Center, Anaheim Convention Center, and Long Beach Convention Center. As part of this report an inventory of many of the prominent, larger meeting, conference, and convention facilities in the area was compiled and is included in Appendix A. This list includes the facilities in and proximate to the City as listed in Table 2 above, facilities over several thousand square feet in the Los Angeles area, as well as the three relatively large facilities up the central valley / Highway 99 corridor from the City in Bakersfield, Fresno, and Visalia. A map showing the location of most of the inventoried facilities is also included in Appendix A. Excluding the facilities in Bakersfield, Fresno, and Visalia, as well as eight of the larger facilities in the City listed above in Table 2, a total of 71 facilities were inventoried in the Greater Los Angeles Area. As summarized in Table 3 below, the list includes 39 facilities with main rooms 10,000 square feet or less, 16 facilities with main rooms between 10,001 and 15,000 square feet, six facilities with main rooms between 15,001 and 25,000 square SANTA CLARITA - CONFERENCE CENTER MASTER PLAN • feet, and nine facilities with main rooms larger than 25,000 square feet. Of the six facilities with main rooms between 15,001 and 25,000 square feet, only two are larger than 18,000 square feet; the 20,800 square foot hall at the Riverside Convention Center, and the 21,500 square foot ballroom at the Pechanga Resort & Casino, both of which are located in Riverside County. Of the nine facilities with main rooms greater than 25,000 square feet, four were between 25,100 square feet, and 26,100 square feet, while the remaining five had halls ranging from 70,000 square feet to 347,000 square feet. Table 3: Summary of Area Conference Room Sizes 3.4 Standalone Conference Centers The Center contemplated and discussed herein is a standalone conference center as opposed to a "residential" conference center which is directly connected to, and associated with a hotel. Standalone centers are typically owned by municipalities, hotel operators, educational institutions, private investors, or corporations that use facilities for business needs and make facilities available to outside parties to generate revenue. Municipalities and public institutions typically develop and operate conference and convention centers to provide local businesses and residents with a desired amenity, and develop larger facilities to increase local hotel patronage and induce visitor spending, with the goal of boosting economic activity and generating local tax revenues. While residential centers can and often do use revenues associated with room occupancy to help support conference center expenses, non-residential centers must rely on event related revenues to support operations. This can put pricing pressure on non-residential centers as residential centers competing in a market can discount event related fees and backfill revenues from hotel room bookings. For reference, the 2012 Trends in the Conference Center Industry survey found that 37.5% of non-residential and ancillary centers received an operating subsidy from the corporate / institutional owner, and that the remaining 62.5% of centers had no mortgage debt, but that the facility must be operationally self-supporting. Additional details about anticipated operating performance of a Center are discussed in Section 10.0 Development & Operational Costs and Section 11.0 Financing. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN Number of Largest Room (SF) Centers 10,000 or Less 39 10,001 - 15,000 16 15,001 - 25,000 6 25,000 or Larger 9 3.4 Standalone Conference Centers The Center contemplated and discussed herein is a standalone conference center as opposed to a "residential" conference center which is directly connected to, and associated with a hotel. Standalone centers are typically owned by municipalities, hotel operators, educational institutions, private investors, or corporations that use facilities for business needs and make facilities available to outside parties to generate revenue. Municipalities and public institutions typically develop and operate conference and convention centers to provide local businesses and residents with a desired amenity, and develop larger facilities to increase local hotel patronage and induce visitor spending, with the goal of boosting economic activity and generating local tax revenues. While residential centers can and often do use revenues associated with room occupancy to help support conference center expenses, non-residential centers must rely on event related revenues to support operations. This can put pricing pressure on non-residential centers as residential centers competing in a market can discount event related fees and backfill revenues from hotel room bookings. For reference, the 2012 Trends in the Conference Center Industry survey found that 37.5% of non-residential and ancillary centers received an operating subsidy from the corporate / institutional owner, and that the remaining 62.5% of centers had no mortgage debt, but that the facility must be operationally self-supporting. Additional details about anticipated operating performance of a Center are discussed in Section 10.0 Development & Operational Costs and Section 11.0 Financing. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 0 4.0 Facility Success Drivers There are a number of factors that help drive demand for a given conference center, and support its success that should be considered in planning for a facility. The individual factors and importance of each vary but includes fundamental considerations such as meeting room size and proximate hotel room capacity, and arbitrary elements such as the general appeal of a destination and area attractions. While these drivers cannot make up for a complete lack of overall demand, they can help steer patronage towards a facility and induce demand. A discussion of typical drivers of success follows. 4.1 Facility Capacity In selecting a facility, the first factor typically considered by an event planner is a facility's capacity and ability to accommodate the desired number of attendees for a given function. While for some events, organizers may limit group size to fit a given facility, in most cases, if a facility is not large enough to accommodate an event, alternative locations will be sought. In general, there are a greater number of small conference facilities than comparatively large conference facilities. However, there are a greater number of events that require comparatively smaller spaces than events that require comparatively larger spaces. Thus . the relationship between (i) facility capacity and number of facilities, and (ii) event size and number of events are each considered somewhat exponentially inverse. A key driver of success is providing a facility that can accommodate many of the larger events without being oversized for a given market. For the typical conference or convention facility the majority of events will utilize only a portion of the largest event space(s). However, the comparatively fewer number of large events can provide a significant and important contribution to overall facility profitability. Determining the perfect facility size can be elusive, especially as ideal facility size varies as markets grow and change. Facilities can quickly evolve from being fresh or new, with the ability to capture comparatively more, large events and demand from other local, regional, or national centers to more mature centers increasingly reliant on proximate market demand. Undersized facilities will likely be in competition with a large number of alternatives, and lack enough capacity or critical mass to attract the larger events that can substantially support ongoing center operation. Facilities larger than most it its marketplace peers will have some inherent competitive advantage in attracting events. 4.2 Preferences of Meeting Planners Meeting planners are often utilized by event sponsors to plan and coordinate meeting events. The preferences of these professionals are typically based on years of experience in planning successful meetings. These preferences provide a good indication of characteristics and amenities that should be included to help ensure a successful facility. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN • • As shown in Figure 2 below, the most important factors reported by meeting planners in selecting a particular destination for an association meeting has historically been (in order of importance) (1) the affordability of the destination, (2) the availability of hotels and other facilities, (3) the distance traveled by attendees, (4) the safety and security of the destination, (5) transportation costs, and (6) the ease of transporting attendees to the meeting location. For convention meetings, the most important factor in selecting a destination have been (1) the affordability of the hotels and other facilities, (2) the affordability of the destination, (3) the safety and security of the destination, (4) the ease of transporting attendees to the meeting location, (5) transportation costs, and (6) sightseeing, cultural and other extracurricular attractions. re 2: important tactors for Meetinq Manners in 5electinq a Uestination Affordability of Destination Availability of Hotels & Other Facilities Suitable for Meetings Distance Traveled by Attendees Safety & Security of Destination Transportation Costs Ease of Transporting Attendees to Location Sightseeing, Cultural & Other Extracurricular Attractions 0% 20% 40% 60% 80% 100% Source: Meetings & Conventions Meeting Market Report 2008 SANTA CLARITA - CONFERENCE CENTER MASTER PLAN ■ Convention Association Meeting Once a destination has been determined, the selection of a particular facility or hotel to be Sutilized by a meeting planner is typically based heavily on capacity and price. Important factors for meeting planners in selecting a particular facility or hotel are provided in Figure 3 below. Of note, the quality of meeting rooms was reported as slightly more important by meeting planners than the quality of food service, and the quality of hotel rooms for both convention and association meetings. • ure 3: Important Factors for Meetinq Manners in 5electina a Facilitv or Hotel Cost of Hotel of Meeting Facility Negotiable Food, Beverage & Room Rates Number, Size, & Quality of Meeting Rooms Quality of Food Service Number, Size, & Quality of Sleeping Rooms 0% 20% 40% 60% 80% 100% Source: Meetings & Conventions Meeting Market Report 2008 4.3 Proximity and Supply of Hotel Accommodations N Convention Association Meeting While the average standalone conference center typically receives the majority of its patronage from "local" events, the ability to increase facility utilization through the attraction of multiday events and expand market reach beyond the local level, is directly tied to the sufficient supply of proximate hotel rooms. In determining acceptable proximity for hotels or other amenities, comfortable pedestrian walking distances should be considered. Most attendees who attend multiday events and stay in hotels prefer that meetings be held in the same building or complex as guest rooms. Absent such accommodations it is next best for events to be held within walking distance of hotels. Perceptions of acceptable walking distances vary, but for the most part falls between one-fifth of a mile and half a mile, with one-quarter of a mile predominantly considered a reasonable walking distance. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 1� • Irl L J As illustrated in Figure 4 below, the average event lasts approximately 2.5 days, with association events averaging 2.7 days, corporate events 2.5 days, government events 2.2 days, and industry events 2.6 days. For reference, other sources have estimated meetings last an average of 3.1 to 3.6 days. Regardless of actual meeting duration, the absence of sufficient hotel accommodations can significantly restrict Center patronage by non -local attendees and multiday events, reducing the potential usage of a given facility, and the ability to attract visitor spending to the City. Figure 4-.Tvoical Meetina Duration i 5+ 5 i 4.5 >, 4 i O 1 3.5 Industry a L 3 ■Government . 2.5 ''" ■ Corporate i ■ Association > 2 w 1.5 1 i I 0.5 i 0% 5% 10% 15% 20% 25% 30% Source: Meetings Focus 2012 Meeting Market Trends Survey SANTA CLARITA - CONFERENCE CENTER MASTER PLAN • • 4.4 Destination Appeal & Amenities As introduced above, the appeal of the meeting destination is an important factor for meeting planners in choosing an event location. Another important consideration is the proximity and availability of amenities such as off-site restaurant, retail, and entertainment options for use by patrons attending engagements not directly associated with meeting events including small group dinners, and tourist activities. In addition, as illustrated in Figure 5 below, many meeting events incorporate activities held outside of conference facilities into their schedules, including team building activities (either on-site or off-site from meeting facilities), golf, activities for spouses, and other entertainment options. Fiaure 5: Meetinos with Incomorated Activities by Activity Tvne Attractions /Theme Parks i Casinos / Gaming Cooking Programs Festivals Golf Industry Skiing i 'Government 0 Corporate Spas / Spa Activities ■ Association Sporting Events Spousal Programs Team -Building Activities Other 0% 20% 40% 60% 80% Source: Meetings Focus 2012 Meeting Market Trends Survey 4.5 Facility Amenities The availability of appropriate technology, specialty rooms, other amenities, and industry designations also help drive demand for a particular facility. Appropriate technologies include amplified sound systems, video projection capacity, electrical feeds, wireless internet access, etc. Examples of special rooms include video conference facilities and business centers where attendees can access computers, photocopying, etc. The IACC provides a set of very specific and well conceived quality and design standards that must be achieved to receive IACC designation. These standards are provided for review in Appendix D. The inclusion of the features required to achieve designation help to ensure a facility provides a positive event experience for patrons, and the designation itself also helps in marketing efforts. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN ;C� 0 5.0 City Success Drivers In the previous section, the factors that tend to drive demand and support the success of a given facility were introduced. In this section Santa Clarita's current alignment with these drivers is discussed. In general, the City has many characteristics and amenities that would likely serve to enhance demand. Existing factors include proximity to a large population base, reasonable airport and rail access, and proximity to recreational and entertainment options. 5.1 Transportation & Ease of Access As discussed, two of the primary drivers of use of a particular conference facility are ease of access and cost of access for event attendees. Thus, the Center's accessibility and location can greatly impact potential user base. If the Conference Center is not immediately adjacent to one or more hotels, it is anticipated that the majority of the potential demand would likely come from day visitors originating from within the City or traveling to the City daily for a given event. Should the Center be located proximate to hospitality amenities, the ability to expand potential market reach and attract multiday events attended by regional or national users would increase. A discussion of potential market reach for these two user types follows. 0 Day Users 0 Given a number of factors including the City's location within the overall Southern California Region, competitive / alternative conference facilities available, and business and population demographics, it is anticipated that a significant base of potential demand would likely come from users located relatively close to the City, and attendees would typically travel to a potential conference center via car. Assuming a standalone Center that is competitive in pricing and amenities, demand would likely be driven heavily by ease of access to the Center, and how central the Center is to an attendees point of origin. Based on regional travel trends and alternative meeting facilities it is estimated that day users would reasonably travel up to 60 minutes to attend an event, but closer users would be increasingly likely to utilize a Center. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN • • Population estimates for 2012 (based on 2010 US Census data) indicate that there are approximately 340,000 people within a 15 minute drive of the center of the City, 2.4 million people within 30 minutes, and 11.9 million people within 60 minutes. While this represents a fairly sizable population base, the City is not central per se to the larger population base within 60 minutes, but rather generally located northwest of it. A map showing these drive times follows in Figure 6, and a comparative discussion of population bases for other sample conference centers is provided in Section 13.0 Sample of Centers Evaluated. rvunutc vlfVc I ullc May 4' � Fir aNxr»nal "• Pacific Ocean Oceano Pacifico Source: ESRI, 2013 ro+rcr t+tca 9! .. ae er h r �� VictorvHlo Valley Pasadena Ranch. Oaks� t Oile :.r OaMong. ?' San Onlarlo Fonlee Bamardino a- a e8 a 4i Moreno Do 1J rp - id Vallo Ingle Riverald• y Ian o Corona Tartan o " aheim �� 'Minden Orange Lo rt ch ants Ana p Irvlpe 7 =' iL,7 Itondngton CostaMe- Beach i SANTA CLARITA - CONFERENCE CENTER MASTER PLAN ®I Multiday Users • Should the Center be located immediately adjacent to hospitality amenities, the ability to attract multiday events would increase substantially, and attendees of multiday events are typically willing to travel greater distances than day event attendees. Multiday events make attendee drive times of two hours or more reasonable, and utilization of alternative modes of transportation such as air and rail practical. This serves to greatly increase the potential market reach of a facility. Figure 7 below shows the additional geographic area within 90 minutes and two hours of the City, and a discussion of rail and air access follows. • • Faure 7: 15, 30, 60, 90, 120 Minute Drive Time Map Vlsalla Las HuUono! ParA 9<, 4C 4 p B sfl d �ws .o Mo Hat; Pr. p La SVI '?-Palm to rvllle Pacific Ocean Ve r usand Oaks S - F Sa Ontario __ inglewoo f tta 0 Riv Id o rano osnua Trw dCorana ronin Santi Lo goc An Oceano Pacifico Beach i " A Oceanside 1 Escondido C 50 ri San DiegO'..Chula Vista 0 C T Tijuana-. t Source: ESRI, 2013 1., SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 2 -2- • Pi 0 MetroLink Access Santa Clarita is served by three stations on the Metrolink Antelope Valley Line which runs between downtown Los Angeles and the Palmdale / Lancaster area. There are a total of seven Metrolink lines, six of which terminate in downtown Los Angeles. These lines provide access throughout Southern California, including Oxnard to the north, Oceanside to the south, and San Bernardino to the east. While it is not anticipated that many Center users would access the site via rail, proximity to rail is certainly a benefit for those who choose to use the service, and ridership is only expected to increase in the future. A map showing the location of area Mertolink rail stations is provided in Figure 8. ure 8: Nroximate Kail Stations �.. Saugus Canyon - - - O counvry Santa O . ° lencla O Clarita Santa Vp StRanch n r1a Ranch Newhall Clarita Via Princessa O O Neali Sylmar O \ San tporter Fernando. t Sylr Ni i San Fernand$ ,;Ni ° 4 Ahalsworth O Pacoima U O g— km SANTA CLARITA - CONFERENCE CENTER MASTER PLAN A Sunland O Tulunga O • Airport Access The ability to attract State and national level events is heavily dependent on access to airports and regular commercial airliner service. Santa Clarita is moderately close to several major airports, with frequent, direct commercial service to many California and U.S. destinations. Proximate airports include Bob Hope Airport (24 miles, 25 minutes), Los Angeles International Airport (43 miles, 40 minutes), Ontario International Airport (73 miles, 65 minutes), Long Beach Airport (59 miles, 50 minutes), and John Wayne Airport (75 miles, 70 minutes). A map showing the nearest major airports is provided in Figure 9 below. rigure y: rroximate Airports { i 'a Lancaster Pehndat jgI 4 Santa ^`- 14 r 138 IB C1ariU Vlctnrvllle Simi : 1' Valley. ,. Ventura Burbank 0 Pasadena Rancho Oanerd 7hous2ndo a Cucamonga�- . Oakc ©... , �. c� •�.._ . 0 0 0 San Bob Hope q �, Ontario Fontana Bernardino Pomona Riverside n �Y 6 rno Inglewood' o Fullerton /� Ontario ey Norwalkq !1 Pacific Oce o Anaheim e Garden ran Los Angeles o eac crave 0 oo SOantgea Ana Long Beach Beach © John Wayne Oceano Pacifico a... n >;�a.rr armor oceanside Escondido SO K" SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 2-1" 9 High Speed Rail 11 The California High -Speed Rail Authority is in the planning stages of the California High - Speed Rail project which is ultimately slated to run between San Diego and the San Francisco Bay Area. The segment between Los Angeles and San Francisco is tentatively planned to begin service in 2028. As proposed, the closest station to Santa Clarita will be the current Sylmar Metrolink station (see Figure 8), approximately 16 miles southeast of the City. Should the project be completed, the Center may benefit moderately from improved accessibility by increased intrastate patronage. A map showing the proposed High Speed Rail alignment follows in Figure 10. Figure 10: Preferred High Speed Rail Alignment High -Speed Train Preferred Alignments Conceptual High -Speed Commuter Rail Sacramento �,.-......� Stockton { Oakland San Francisco t; Modesto Millbrae -SFO Redwood City Merced or Palo Alto San Jose Diridon -� Fresno Gilroy Visalia/Tulare/Hanford i� Bakersfield Palmdale Industry �-- Sylmar Ontario Airport Burbank Riverside Los Angeles Norwalk Murrieta Anaheim ~ Irvine Escondido University City San Diego Source: Metropolitan Transportation Commission, 2013 5.2 Hospitality Amenities There are currently several hotels within the City, and many others within close proximity. While there are approximately 2,000 hotel rooms in and around the City, attendees of conference events tend to favor and utilize full-service hotels. Full-service hotels are generally described as mid -price, upscale, or luxury hotels with a restaurant, lounge SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 2� • facilities, meeting spaces and minimum service levels often including bell service and room service. Considering only hotel rooms that attendees would traditionally utilize reduces the effective room capacity within the City, and somewhat reduces the attractiveness of the City for larger, multiday events. However, the number of full-service hotels and room supply in the City could soon increase. Over the last few years Packard Companies has been evaluating the development of an approximately 200 room full-service hotel (Sheraton) near the existing 244 room Hyatt Regency in the Town Center area. Should the proposed hotel be built, it would notably increase the City's capacity to accommodate multiday event attendees. A list and map of hotel chains in and near the City, at or above the STR 2012 Chain Scales of "Midscale" or better, follow in Table 4 and Figure 11. • auie 4. usi 01 riummate rnoteis - z) i m mating OT iwascaie or better SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 2(0 Rooms STR Scale 1 Embassy Suites 156 Upper Upscale 2 Courtyard by Marriot 140 Upscale 3 Hilton Garden Inn 152 Upscale 4 Holiday Inn Express 118 Upper Midscale 5 Best Western Valencia Inn 122 Midscale 6 Hyatt Regency 244 Upper Upscale 7 Comfort Suites 101 Upper Midscale 8 Fairfield Inn by Marriot 66 Upper Midscale 9 Residence Inn by Marriot 90 Upscale 10 Hampton Inn by Hilton 128 Upper Midscale 11 La Quinta Inn & Suites 112 Midscale 658 SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 2(0 • • • -iyUfU { t. rvtdN U rtcJxundta nuLeis - J { M Mauny U IV] uscaie U1 ae[Ler Castaic Junction ` Ji I 111111 I�J Bouquet 5 hmchan 06 anta C4arita Pardee 128 Pico 7 10 YItO '" 4 4 C SnYoli - TOWS{!y ff�� Canyon Park C z n C km 5.3 Restaurant & Retail Amenities Canyon 5o(amint Humphreys u Meeting and conference attendees often like to patronize local restaurants and shops at various times during or separate from a conference event. The availability of a number of restaurant and retail options within a single district within walking distance is desirable, especially for attendees of multiday events and out of town visitors. The City has a fairly wide variety of dining and shopping options throughout, and there are a few districts within the City that are reasonably suitable for pedestrian oriented patronage. 5.4 Recreation & Entertainment Santa Clarita is home to a variety of recreational and entertainment options that may help to entice multiday events offering extracurricular activities. City amenities and attractions include several golf courses, hiking trails, the Six Flags Magic Mountain theme park, the Saugus Speedway, multiple museums, spas, and movie studios. These features provide a variety of potential options for event patrons and family members, boosting the City's ability to attract events with regional and national draw. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 1:) • 5.5 Weather & Setting In addition to the developed amenities in the City, the natural setting and typically temperate and favorable weather are potential drivers of demand. During the cooler months the City may be attractive for events with a mid -west or national draw, when other locations are excessively cold or snowbound. Additionally, depending on the siting of a potential facility, the natural setting and proximate mountain views can provide an attractive backdrop for outdoor events or meeting elements. • • SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 0 6.0 Conference Center Program In this section, the specific building elements that comprise the typical conference facility are discussed. Properly designed, these elements, collectively called the "program" can support efficient and successful operations, and help drive attendee and meeting planner preference for a facility. While individual sites can present unique challenges, and specific user needs can vary, there are a large number of operating conference facilities throughout the United States from which best practices can be drawn. Through the evaluation of design elements that tend to work and those that don't, some fairly specific design guidelines and recommendations have been established, as presented herein. 6.1 Conference Facility Spaces What follows is an excerpt from the PKF Market Report about the types of spaces found in meeting and conference centers. Exhibition Space — typically the largest single space in a convention center, with high ceilings and clear spans with minimal or no support columns in the event space. Large continuous halls are divisible with movable, soundproof walls so that the halls can be used in various configurations. Most exhibition halls have a low level of finish and their concrete floors are designed to support heavy loads. Neutral in their design, exhibit halls function as • empty stages that are appropriately decorated for each event. Loading docks with high doors allow easy loading access and trucks may be allowed to drive on the floor. Utility connections for exhibition booths are provided from boxes in the floor or dropped from the ceilings. Utilities include electricity, telecommunications, water, and potentially, compressed air and natural gas. Banquet Space — primarily designed for food and entertainment functions. Ballrooms typically have the highest level of finish with permanent carpet and various lighting fixtures. Like exhibit halls, ballrooms also offer high ceilings, clear spans, and divisible space with soundproof movable walls. Often used as assembly space for entertainment events, ballrooms are usually equipped for staging presentations. Sound attenuation and sophisticated sound systems are also important features of a ballroom. Proximity to kitchen facilities is vital for the efficient delivery of food service. Meeting or Breakout Rooms — intended for small groups and can range from 500 to 5,000 square feet. They are often divisible into smaller units to provide maximum flexibility. Meeting rooms are usually carpeted and have a high level of finish. Most meeting spaces have flat floors and no fixed seating so that they can be configured for an assortment of meeting styles. Meeting rooms offer variable lighting setups and access to advanced telecommunications technology. Some meeting rooms are designed exclusively for presentations and may have fixed tiered, theater -style seating and video projection capabilities. Boardrooms are elegant meeting rooms with a permanent conference table. Breakout Space — another term for divisible banquet rooms and meeting rooms. On average the total combined amount of meeting and banquet space is between one-third and one-half as large as the facility's exhibition space. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 20� Pre -function Space – locations just outside of or adjacent to the event space. Pre -function areas support the circulation of pedestrian traffic through the facility, serve as registration areas, and are essential to the control of access to event spaces. Back -of -house Space – storage, loading docks, administrative offices, service corridors, kitchens, mechanical spaces and other areas that are vital to the operation of the facility, but not visible to the public. 6.2 Facility Capacity The analysis completed as part of the Market Report suggested that a facility with an approximately 20,000 square foot ballroom, and proportionally sized meeting / breakout rooms and other spaces would likely be appropriate for the market, and be sufficiently sized to accommodate population and business growth over the next 20 years. The amount of space required per event attendee depends on the type of event, the seating configuration, overall group size, and room shape. Typical room configurations include "theater" style seating where seats are placed in long rows, one -behind the other, "classroom" style seating where seats and long, narrow tables are placed in long rows, one - behind the other, and "banquet" style where seating is provided around circular tables five to six feet in diameter with 8-10 people per table. Additional configurations sometimes utilized for smaller group meetings include long rectangular tables set up in either a square 'open rectangle" or u -shaped layout. The exact number of square feet required per attendee can • range, but generally falls close to the averages provided below in Table 5 below. n U Table 5: Approximate SF Per Person By Seating Configuration Number of People <60 60-300 <300 o Theater 12 11 10 _ Classroom 22 20 17 Banquet 4 3.5 —► o Open Rectangle 4 —► 30 U U -Shape 44 35 —► SANTA CLARITA - CONFERENCE CENTER MASTER PLAN • These averages can then be applied to overall room size to estimate a given spaces capacity. Table 6 below shows approximate capacities of different room sizes based on a range of required space per person. Assuming 13.5 feet per person, a 20,000 square foot ballroom would likely be able to accommodate approximately 1,500 attendees for a dinning event, a sizable increase over the 600 person capacity currently available in the City. • is i apse b: Approximate Koom Capacity based on 5F Allowance / Person SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 3\ 10 12 SF per Person 14 16 18 20 7,500 750 625 536 469 417 375 U- 10,000 1,000 833 714 625 556 500 to E 12,500 1,250 1,042 893 781 694 625 0 15,000 1,500 1,250 1,071 938 833 750 17,500 1,750 1,458 1,250 1,094 972 875 20,000 2,000 1,667 1,429 1,250 1,111 1,000 SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 3\ • 6.3 55,500 Square Foot Example • • As part of the master plan process two potential facility programs were evaluated. This first has a main ballroom of 20,000 square feet, additional breakout space of 10,000 square feet, and ancillary and support space that yields a total building size of 55,500 square feet. In addition to the 30,000 square feet of meeting space, industry and design standards suggest a pre -function / lobby space of approximately 8,000 square feet, a 2,000 square foot kitchen, and 4,500 square feet of back of house / support space. Additional program elements that bring the total building envelope to 55,500 square feet are provided in Figure 12 below. re 12: Freliminary 55,5UU Square Foot building Program BUILDING Program Area (sf) Meeting Spaces - -- ---- Boll; 0011) Boll;0om _ - --------- ------ 20,000 30,000 Meeting Rooms 10,000 8,000 Pre -fu nction/Lobby R_estrooms 2,300 _ Guest Service _ --------__-___ Kitchen -_-_ T 700 2,000 Admin Office B.O.H/Servic_e/Support _ _ 3,000 4,500 Circulation 5,000 Total 55,500 Ballroom 20,000 sf Building Total 55,500 sf Restrooms Guest Service 2,300 sf 100 sf Kitchen Admin Office 2,000 sf 3,000 sf Meeting Rooms B.O.H/Service/Support 10,000 sf 4,500 sf Pre function! Circulation Lobby _ 5,000 sf 8,000 sf ___ OUTDOOR EVENT SPACE • 6,000 sf , 500 guests Outdoor Event Space 6,000 sf --t SANTA CLARITA - CONFERENCE CENTER MASTER PLAN • • 6.4 40,700 Square Foot Example In addition to the 55,500 square foot program, a second smaller program was also prepared. This alternative maintains the 10,000 square feet of ancillary meeting rooms, but the main ballroom was reduced from 20,000 square feet to 12,000 square feet, and the various support spaces with recommended sizing driven by total meeting space were reduced in size proportionally. This results in a reduction from a 2,000 square foot kitchen to a 1,200 square foot kitchen, and from 4,500 square feet of back of house / support space to 3,300 square feet. Additional program elements that bring the total building envelope to 40,700 square feet are provided in Figure 13 below. Figure 13: Preliminary 40,700 Square Foot Building Program BUILDING Program Area (sf) 1 _ Meeting Spaces Balituom 12,000 22,000 Meeting Rooms Pre-function/Lobby RestroomsV W Guest Service _ Kitchen Admin Office B.O.H /Service /Support 10,000 5,500 Ballroom 1,800 _ _ 700 1,200 2,200 - 3,300 Circulation 4,000 Total 40,700 Building Total 40,700 sf Meeting Rooms B.O.H/Service/Support 10,000 sf - 3,300 sf Pre•function Restrooms Guest Service 5,500 si 1,800 sf 700 sf Ballroom 12,000 sf KitchenAdmin Office 1,200 sf 2,200 sf Meeting Rooms B.O.H/Service/Support 10,000 sf - 3,300 sf Pre•function Lobby Circulation 4,000 sf 5,500 si 6.5 Outdoor Function Space OUTDOOR EVENT SPACE • 6,000 sf , 500 guests Outdoor Event Space 16,000s f Given the pleasant weather and natural setting of the City, outdoor function space could provide and attractive and cost effective way to expand Center capacity and increase • utilization. Many events including weddings can be accommodated entirely in an outdoor space, and conferences may use an outdoor space for a lunch break or breakout session. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN Both sample building programs include a 6,000 square foot space, but a larger outdoor area may be justifiable should available site area permit. 6.6 Kitchen Food and beverage services for conference centers are typically provided either through on- site, full-service kitchens, a proximate full service kitchen shared with an adjacent hotel or other facility, or a catering kitchen. On-site kitchens are the most expensive option, but provide the most flexibility in long-term service options and potentially the best food quality. Proximate kitchens provide a low cost solution, but logistics can impair the quality of food service, while catering kitchens, sometimes called a warming or holding kitchen provide a middle cost solution, and support flexibility in food suppliers and choices for both facility operators and event organizers. Catering kitchens may also be used in conjunction with a proximate full-service kitchen, resulting in a compromise in price while helping to maintain food and service quality levels. For reference and scale, building and equipping a full- service kitchen capable of handling the peak potential center demand can readily cost in excess of $1 million. 6.7 Parking The need and capacity to provide parking for a conference facility often requires a substantial portion of land area relative to that facility's footprint. The City's code currently ! calls for one parking space to be provided per 28 square feet of meeting space. Based on the 55,500 square foot prototype, with 30,000 square feet of dedicated meeting space, a total of approximately 1,070 spaces would be required. The smaller, 40,700 building prototype would require approximately 790 spaces. While the typical event will not utilize the full capacity of a given conference center, the capacity to accommodate peak attendee demand is important. As accommodating a large number of parking stalls can be land intensive, or costly in the case of structured parking, alternative solutions may be desirable to satisfy peak demand. Solutions include the use of valet services to permit functional tandem or stacked parking, off-site parking with shuttle services, and/or shared parking agreements with proximate developments. 6.8 Required Site Area Accommodating the Center footprint, outdoor event space, parking, circulation, and landscaping can require a site of 10 acres or more. The actual space required is primarily a function of how much parking is provided, if parking is provided in a structure, whether the enclosed building area is provided in a one-story or multistory configuration, code required landscaping and the size of outdoor function areas. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 7� Parking Footprint A parking stall and associated vehicle circulation typically requires between 300 and 400 square feet of area depending on the efficiency of parking configuration, ratio of compact spaces to full size spaces, and in the case of parking structures, the number of required ramps, support columns, etc. Surface parking fields typically average approximately 325 square feet per stall, and multi -story parking structures typically average 375 - 400 square feet per stall. The required land area (in acres) for different parking capacities and configurations is provided in Table 7 below. i anie t: Approximate Acres of Lana ny rarKing capacity & I ype C ° Surface - 300 SF/Stall Surface - 325 SF/Stall L Two Level - 375 SF/Stall o Three Level - 400 SF/Stall U Total Required Site Area . The total site area required for a facility is primarily a function of the footprint of the building, landscaping, circulation, and parking. As shown in Table 8 below, the total required site area for the sample programs ranges from approximately five to 12 acres. Smaller sites could potentially be usable if a multistory building configuration utilized, some parking is provided off-site, and ancillary circulation and landscaping is minimized. 11 able Z9: I otal Kequirea bite Area Number of Stalls Acres 250 500 750 1,000 1.7 3.4 5.2 6.9 1.9 3.7 5.6 7.5 1.1 2.2 3.2 4.3 1.1 2.3 3.4 4.6 . The total site area required for a facility is primarily a function of the footprint of the building, landscaping, circulation, and parking. As shown in Table 8 below, the total required site area for the sample programs ranges from approximately five to 12 acres. Smaller sites could potentially be usable if a multistory building configuration utilized, some parking is provided off-site, and ancillary circulation and landscaping is minimized. 11 able Z9: I otal Kequirea bite Area SANTA CLARITA - CONFERENCE CENTER MASTER PLAN Square Feet Acres Building 40,700 55,500 0.9 1.3 Outdoor Event Space 6,000 15,000 0.1 0.3 Circulation, Landscaping 45,000 90,000 1.0 2.1 Subtotal 91,700 160,500 2.1 3.7 Parking (786 Spaces) (1071 Spaces) Surface 255,450 348,075 5.9 8.0 Two -Level Structure 147,375 200,813 3.4 4.6 Total - Surface Parked 347,150 508,575 8.0 11.7 Total - Two -Level Structure 239,075 361,313 5.5 8.3 SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 6.9 Green Design • Green design is becoming an increasingly important consideration in facility selection by meeting planners, and makes financial sense for long-term facility owners and operators. Elements of green or sustainable design can include, among other elements, the use of sustainable building materials, high efficiency heating, ventilation and air conditioning systems, low flow or waterless plumbing fixtures, permeable surfaces, renewable energy systems, and native plantings. These systems typically cost more than their alternatives, however yield cost savings over their lifecycle. 6.10 Additional Room Considerations There are variety of potential users for a conference facility, and accommodating varying needs can drive specific room design. A brief discussion of facilities included at some centers follows. Boardrooms - Many conference facilities have medium to high quality boardrooms that can be utilized by local businesses. These rooms are larger than most small to medium size businesses have on-site, and provide a convenient option for proximate entities. Video Conference Rooms - Many large business entities with multiple geographic locations utilize high quality and "telepresence" video conferencing systems. While these systems • can be somewhat costly to install, their use is becoming increasingly mainstream, and may be a valuable asset to local businesses. Total system costs depend primarily on the sophistication of technology used and the number of attendees a system is designed for, but even somewhat basic yet high quality systems are relatively low in cost, and have excellent functionality. • Stadium Seating / Theater - Some conference facilities incorporate a theater with stadium style seating. However, use of such amenities at conferences is less common than the use of traditional open, level spaces, that can be subdivided and provide a variety of seating and stage configurations. Municipalities sometimes include theaters in facilities that are intended to also function as performance arts centers. Large theaters with stadium and sometimes multilevel seating are comparatively expensive, and their availability in a conference facility does not tend to drive meeting demand. 6.11 IACC Design Standards As previously introduced, there are a number of design standards and recommendations established by the IACC for conference and convention centers that provide excellent guidance on features that help ensure a highly functional and desirable facility. These standards are provided in Appendix D, and as feasible should be incorporated into Center design. As discussed in Section 4.5, IACC certification can help drive demand for a given facility. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN a� • r: • 7.0 Locations Evaluated As part of the Master Plan process several areas of the City and specific locations for a Conference Center were identified and evaluated. The team evaluated the entire City and narrowed it to five subareas for consideration. Stakeholders at public meetings were invited to suggest additional areas and specific locations to evaluate. The locations discussed herein are preliminary options suggested by various stakeholders, and while they do not represent all potential locations, discussion of these locations helps provide the framework for ultimate location decisions. 7.1 Subareas Evaluated The team evaluated five subareas within the City, generally referred to as the 1-5/126 Interchange, Town Center, Bermite, Newhall, and the Eastern Corridor areas. A map of each of these general areas in provided in Figure 14, and a brief discussion and comments on each follows, rigure 14: Map OT Location but)areas o nRd P1u� Cam- R.y �•••1-5/126 ! oco,.r, 3 .Interchange 0otrya Bouquet Junction h,>bR;tr,r°' u jt. Kth Lnycn ' ' � • • ; ' So.%cnint Eastern Bermite orridor Center '•••.... •'•'• :-Cry' .ry �;,pt�ran fhy � ••'• � •••• � V O g Pico �. t.yrx-ja. Newhall J iorslar '� •• - Can" �� ....;•`•• 1X II l 1-5/126 Interchange - Positive attributes of the 1-5/126 Interchange area include easy freeway access, as well as proximity to Embassy Suites and the Courtyard by Marriott comprising a total of approximately 296 hotel rooms. Negative attributes include a lack of SANTA CLARITA - CONFERENCE CENTER MASTER PLAN pedestrian accessible restaurant and retail amenities, and potential leakage of induced economic activity to areas outside of the City. The two sites evaluated in this area appear moderately viable; the immediate freeway access is attractive, however, the sites lack pedestrian accessibility and appeal. Town Center - The Town Center area is readily accessible from the Interstate 5 freeway, is the location of the 244 room Hyatt Regency, and is proximate to a number of restaurant and retail amenities reasonably accessible to pedestrians. The area appears to be the best and most appropriate location for the potential Conference Center, especially if it can be sited adjacent to, or proximate to the Hyatt, and other amenities. The addition of a another hotel in the same area would make a Town Center location optimal. While there may be a limited amount of available land in the Town Center area, there are often opportunities for creative solutions to such constraints though partnerships with area land owners. Bermite - Benefits of the Bermite area include a large amount of available land, proximity to area rail service, and potentially an opportunity to incorporate terrain into design. Disadvantages include distance from hotels, and desired amenities. The Saugus Speedway, located within the Bermite area, could be a potential site for a Center co -located with another amenity, and adjacent to existing parking capacity. Newhall - The Newhall area has land available in close proximity to State Route 14 for development, but like the Bermite area is a fair distance from existing hotels and desired 40 amenities. Eastern Corridor - The Eastern Corridor area is off State Route 14 on the eastern edge of the City. The specific site evaluated within the area, referred to as the Vista Canyon project, consists of approximately 182.5 acres of undeveloped land. While the area has reasonably good access from State Route 14, it is isolated from hospitality and other amenities preferred to be near a facility. Additionally, the Specific Plan currently being evaluated for the area includes up to 200 rooms in one or two hotels, which could provide some, but not all of the capacity desired to attract non -local patrons. 7.2 Individual Locations Overall more than 15 specific sites, as listed in Appendix B, were evaluated for their appropriateness as a conference center location. Given the various minimum size requirements, and desired characteristics including accessibility and proximity to amenities, the Town Center area appears to be the best choice. While none of the locations in the Town Center area appear readily available for redevelopment, none of the other sites in the other areas were determined to be as desirable. The specific location of a facility can have a significant impact on its success. If the goal for the Center is to merely serve the needs and desires of residents, then there are many locations within the various areas that have attractive settings and may be appropriate. However, if the goal is to attract visitor patronage and induce economic activity, the availability of an appropriate site should be a significant consideration in whether or not to build a Conference Center. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN k `J 7.3 Zoning Considerations • As of the preparation of this Master Plan, a conference center would be considered a "Banquet Facility" under City zoning code. This use is currently permitted in the Commercial Town Center ("CTC'), Community Commercial ("CC"), Commercial Neighborhood ("CN"), Business Park ("BP"), and Industrial Commercial ("IC") zones, but requires a CUP for entertainment and alcohol. Unified Development Code ("UDC') updates are currently being completed City, and if approved, a new category of "Convention Center" will be created. It is contemplated that this designation will permitted with a CUP in the Commercial Regional ("CR"), Community Commercial ("CC"), and Business Park ("BP") zones. The Convention Center use would be prohibited under all other zoning designations. • • >s SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 3q 8.0 Management Options Operating a conference facility successfully takes a team of experienced professionals with very specific skills sets. Given the depth and history of the industry, a pool of qualified staff does exist, and a number of private management companies are routinely retained to perform these functions. A brief discussion of the two traditional management options for publicly owned meeting and conference facilities follows. 8.1 City Managed Some municipally owned facilities are managed by specialized City staff. Under this structure the controlling City typically pays fixed salaries to staff who manage the marketing and operation of a facility, and in some cases have City staff provide maintenance and operational support. One benefit of the model is that revenues from successful operations accrue entirely to the City. Downsides include potential difficulty in finding qualified management and marketing personnel, static management strategies, and difficulty maintaining appropriate levels of ongoing investment, especially during periods of city-wide budget cuts. Most municipally managed centers evaluated were smaller than the recommended size of the potential Center. 19 8.2 Private Management Company The publicly owned conference centers evaluated tended to be managed through a private management company under a short or medium-term contract. There are a number of management companies in the field, from small firms staffed by local teams, to larger national companies including SMG World, which claims to operate 98% of the publicly owned exhibition space operated by private companies in North America. Key benefits in utilizing a private management company include access to qualified teams, and the ability to retain management under short to medium-term contracts, facilitating changes as necessary. Performance based compensation options can be utilized to help provide motivation for management teams, and companies that operate multiple facilities often have a large pool of marketing contacts, and the ability to compare performance between centers, facilitating adjustments as appropriate. Private management companies may also be a valuable source of input during the design process of a prospective Center. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 0 9.0 Public Input C7 In developing the Master Plan, input was solicited from numerous stakeholders including residents of the City, local businesses and organizations, managers and owners of local hotels, City staff, City leadership, and other stakeholders. Part of this effort included two public workshops on the potential Conference Center. The first of these workshops was an open house held on November 8, 2012, during which public input on desired conference facility uses, amenities, and locations was received and discussed. The second workshop was held on December 5, 2012 during which a presentation summarizing public input received during the first workshop, as well as additional background information was provided. Attendees of the open house were asked to provide their thoughts and input to a variety of questions about the potential location, size, features, and use of the potential Center. While perhaps unscientific, input was received from a number of attendees including residents, local developers, and meeting and conference planners. The results should be interpreted as input on the desires of these parties, and not necessarily the demand in the overall market. Charts summarizing the input and a brief discussion of each follow. 9.1 Types of Events Open house attendees were asked what types of events they might like to use the Center for. The categories provided as responses and input received follow in Figure 15. For reference, sporting events could include activities like gymnastic or archery exhibitions that could conceivably be accommodated in a large indoor hall. e to use center For SANTA CLARITA - CONFERENCE CENTER MASTER PLAN !� 1 9.2 Size & Configuration • The next topic of input was what size event and configuration respondents would like a facility to accommodate. Potential responses related to both number of attendees and seating configuration as the latter can greatly impact the amount of space required. The responses are summarized in Figure 16 below, and show an interest in a facility with a fairly large capacity. While the chart shows desired facility capacity, the input received is not necessarily an indicator of demand, or potential frequency of events with a given number of attendees. Thus, while there may be a desire for a facility that can handle 2,000 or more attendees, the market may not justify the cost of a facility of that size. • 0 r-Igure 1b: Size & uontlguration of Lvents Kespondents Would LiKe to use Uel OHO �O `L�o ��O o�0 OHO o�O x o� 1 SANTA CLARITA - CONFERENCE CENTER MASTER PLAN Dining ®Seated Round Tables ■Seated, Row tables ■Chairs, no tables iter For 9.3 Room Function • As different uses are best suited for different types of spaces, attendees were asked what uses and functionality they would like a Center to have. The results are shown below in Figure 17, and the inclusion of outdoor space was notably desired. • 1 Il UIC 1 I 1\UUIII 1 UI IUIIUII UCJL JU IGU LU 11 GJi.lUIIUCIII, IVCGUJ Board Room/ Video Conference Theater/ Stadium Seating Outdoor Space / Patio Multiple Smaller Rooms Single Large Room 9.4 Preferred Location Attendees were shown a map of the five subareas, and asked to indicate their preferred location. Attendees were also invited to suggest additional areas and specific locations for consideration. As shown in Figure 18 below, most preferred that the potential Center be located in the 5/126 or the Town Center area. No respondent expressed a preference for the Bermite area. t-igure -iu: Location of center rreterrea oy Nesponae tsermite (None) SANTA CLARITA - CONFERENCE CENTER MASTER PLAN its �J • 9.5 Desired Amenities The last set of input received pertained to the importance of Center design features and amenities. Features considered include outdoor function space, kitchen type, special purpose rooms, and valet access. Amenities considered include desired technology such as video projection capacity, video -conferencing capacity, and internet access. The importance of these elements to respondents are shown in Figure 19. t-igure i y: importance or reatures & Amenities to t<esponaents 0 2 4 6 8 10 Built-in Video Projection Outdoor Function Space Basic Video -Conferencing Wireless Internet Access Production Kitchen Built-in Voice Amplification Catering Kitchen Divisible Lobby Individual Climate Controls for Rooms High End Video -Conferencing Dressing / Green Rooms Business Center Refreshment Service Only Wired Internet Access Valet Access SANTA CLARITA - CONFERENCE CENTER MASTER PLAN yti 0 10.0 Development & Operational Costs Conference Centers are specialized buildings that require potentially costly design features and elements that drive elevated construction and operational budgets relative to other building types. In general facility costs can be divided into two groups - construction / delivery costs, and ongoing operational costs. Delivery costs are typically paid through financing akin to a mortgage on a home, and ongoing operational costs are akin to expenses a homeowner would typically pay on an ongoing basis such as insurance, utilities, and maintenance. In this section, the order of magnitude of potential construction costs and operating performance will be discussed. 10.1 Building Costs The ultimate cost of constructing a Center will depend heavily on the size of the facility, types of features included, and the quality of finishes incorporated. Research on recently constructed facilities suggests that costs ranging from $350 to $550 per square foot of building area are probable, with some potential to be slightly lower for a very basic design, and easily greater for a more complex or unique design. Estimated costs generally include design, construction management and other typical delivery costs, but exclude land. Based on a range of approximately $350 to $550 per square foot, the 55,500 square foot building • prototype would be expected to cost between approximately $19.5 and $30.5 million to construct, and the smaller 40,700 square foot prototype, between approximately $14 and $22.5 million. Table 9 below illustrates approximate development costs based for varying facility sizes and costs per square foot. Table 9: Approximate Facility Development Cost by Cost Per SF & Gross SF 10.2 Parking Costs Based on the City's parking requirements, the cost of providing surface parking is anticipated to be approximately $50 per square foot of building area, and is included in the development costs above. However, should some or all of the required parking be accommodated with a parking structure, the incremental cost of such parking must be considered. Above grade parking structures generally range in cost from $12,500 per stall to $20,000 per stall, while below grade structures generally cost between $20,000 to $30,000 per stall, or more, with actual cost directly tied to the number of semi -subterranean, or fully subterranean levels. Cost ranges can be greatly impacted by design and site SANTA CLARITA - CONFERENCE CENTER MASTER PLAN $ 300 Cost / SF $ 400 $ 500 $ 600 N 25,000 $7,500,000 $10,000,000 $12,500,000 $15,000,000 N 35,000 10,500,000 14,000,000 17,500,000 21,000,000 0 45,000 13,500,000 18,000,000 22,500,000 27,000,000 55,000 16,500,000 22,000,000 27,500,000 33,000,000 10.2 Parking Costs Based on the City's parking requirements, the cost of providing surface parking is anticipated to be approximately $50 per square foot of building area, and is included in the development costs above. However, should some or all of the required parking be accommodated with a parking structure, the incremental cost of such parking must be considered. Above grade parking structures generally range in cost from $12,500 per stall to $20,000 per stall, while below grade structures generally cost between $20,000 to $30,000 per stall, or more, with actual cost directly tied to the number of semi -subterranean, or fully subterranean levels. Cost ranges can be greatly impacted by design and site SANTA CLARITA - CONFERENCE CENTER MASTER PLAN specific factors including soil conditions, seismic design load, the level of the water table, �. height of each level, and the overall size of a structure, with larger structures generally being more efficient and lower in cost per stall. Table 10 which follows shows the approximate incremental cost of providing structured parking. U • I dUIt; IV. 11 MCI I ICI ILCI I liVDl rUI OU UULUICV rdl 11, 1[ ly UY �,uii 1 --til JldII a I VldI J $ 250,000 Cost I Stall (Premium for Structured Parking) Land Cost/Acre $ 1,000,000 $ Above Grade Subterranean 2 $ 10,000 $ 17,500 $ 17,500 $ 27,500 250 $ 2,500,000 $4,375,000 $4,375,000 $6,875,000 500 5,000,000 8,750,000 8,750,000 13,750,000 N 750 7,500,000 13,125,000 13,125,000 20,625,000 1,000 10,000,000 17,500,000 17,500,000 27,500,000 10.3 Land Costs Calls Land costs are not included in the above estimates, and given the potential site area required, can be a notable driver of overall facility costs. Even without considering factors like existing use, soil condition, and terrain, the cost of land per square foot or acre can vary widely depending on specific location. Even properties relatively close to each other can have divergent values based on their specific location and adjacencies. Table 11: Potential Magnitude of Land Costs below provides an understanding of the potential magnitude of costs for land depending on varying potential land values and required site acreage. Land costs of $250,000 per acre or less may be reasonable for somewhat isolated properties, and costs in excess of $2,000,000 per acre may be reasonable for properties in densely developed areas, or properties with existing building improvements. i aoie i i : roTenTuai iviagnauae OT Lana t -osis 10.4 Operational Costs A number of existing publicly owned facilities were researched, and their operational success evaluated. Many of the publicly owned facilities evaluated operated at a direct loss on an ongoing basis, and were often subsidized through hospitality and other tax revenues. However, the typical standalone facility generates some level of positive net operating income. The 2012 Trends in the Conference Center Industry survey found that, on average, SANTA CLARITA - CONFERENCE CENTER MASTER PLAN $ 250,000 $ 500,000 Land Cost/Acre $ 1,000,000 $ 1,500,000 $ 2,000,000 2 $ 500,000 $ 1,000,000 $ 2,000,000 $ 3,000,000 $ 4,000,000 4 1,000,000 2,000,000 4,000,000 6,000,000 8,000,000 6 1,500,000 3,000,000 6,000,000 9,000,000 12,000,000 Q 8 2,000,000 4,000,000 8,000,000 12,000,000 16,000,000 10 2,500,000 5,000,000 10,000,000 15,000,000 20,000,000 12 3,000,000 6,000,000 12,000,000 18,000,000 24,000,000 10.4 Operational Costs A number of existing publicly owned facilities were researched, and their operational success evaluated. Many of the publicly owned facilities evaluated operated at a direct loss on an ongoing basis, and were often subsidized through hospitality and other tax revenues. However, the typical standalone facility generates some level of positive net operating income. The 2012 Trends in the Conference Center Industry survey found that, on average, SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 1] standalone facilities achieve a net operating income of 33.5% of total revenues. While many centers do successfully generate an operational profit, such results should not be expected in the first few years of operation, and profitable operation may prove difficult over a long period of time, or during periods of economic contraction. A hypothetical operating proforma for the Center based on the findings of the 2012 Trends in the Conference Center Industry survey, and the Market Study follows in Table 12. This proforma assumes a potentially generous 4% replacement reserve for furniture, fixtures and equipment, and yields a net operating profit after reserves of 17.7%. For reference, respondents to the 2012 Trends survey include centers that are self -managed, self -managed with contracted services, and those management by a management company. The proforma provided herein does not contemplate a public versus private management option, but rather reflects the average performance of centers, independent of the individual management options. Table 12: Sample Center Operatinq Proforma Total SF of Dedicated Meeting Space 30,000 % of Gross Total Revenues 125.00 /sr 3,750,000 100.0°/„ Cost of Goods Sold 25.00 iSF 750,000 20.0% Gross Profit 100.00 ISF 3,000,000 80.0% Labor Salaries & Wages (Including Employee Benefits 44.00 /SF 1,320,000 35.2% Other Operating Expenses Administrative & General 11.24 /SF 337,200 9.0% Sales & Marketing 7.52 /SF 225,600 6.0% Property Operations & Maintenance 1.50 /SF 82,500 2.2% Utilities 2.00 /SF 110,000 2.9% Total Undistributed Operating Expense 25.18 /SF 755,300 _1'0.1% Income Before Fixed Charges 30.82 /SF 924,700 24.7% Fixed Charges Facility Occupancy Costs 3.75 /SF 112,500 :3.01/, Net Operating Income 27.07 /SF 812,200 21.7% FF&E Reserve 5.00 150,000 =t 10"", Net Operating Income After FF&E Reserve 22.07 /sr 662,200 1 ' , SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 4� 10.5 Refresh Costs Like hotels and other intensely used facilities reliant on competitive positioning for success, investments in updates and upgrades to conference facilities must be made on a consistent and regular basis to maintain market appeal. Given the scale of facilities, and often rapid obsolescence of integrated technologies, required investments can be surprisingly frequent and costly. These expenditures should be expected and budgeted for on an ongoing basis to ensure funds are available for needed improvements and to maintain a facility's ability to consistently attract events over the long-term. 10.6 Public -Private Alternative While ownership of conference facilities has advantages for some communities, construction and operational risk, and the potential need for ongoing subsidization of facilities may be unappealing for others. A public-private partnership could provide an alternative to public facility development and ownership. Such a partnership could be structured with a full- service hotel developer or operator wherein the City would provide a subsidy to help underwrite the private development of a facility with the desired features and capacity. 10.7 Phased Alternative Another alternative to reduce delivery costs, and minimize fixed operational costs is to develop a conference center similar to or smaller than the 40,700 square foot example discussed herein, but to incorporate the needs of a planned future expansion into the initial design. To provide for an efficient expansion in the future, the layout and operational components should be designed and sized appropriately. The main hall and other program elements that will require expansion should be configured so that a minimum amount of wall relocation, structural modification, and function reconfiguration would be required. Additionally, potential expansion demand on kitchen and support spaces should be considered so that appropriately sized spaces are provided to minimize the need for costly alterations in the future. 10.8 Repurposing Alternative Finally, if delivery cost is one of the primary considerations, the City could consider seeking an existing building to remodel and repurpose. However, success with this approach may prove elusive as successful centers share design characteristics unique from most buildings, reconfigurations can be costly, and the results could be mediocre. Nevertheless, such an alternative may provide a lower cost alternative or interim solution, as desired. In consideration of this, the hypothetical repurposing of the Spectrum Club building in the Town Center area was briefly evaluated. The gymnasium in the building has approximately 10,000 square feet of clear span area and other rooms that could conceivably provide some breakout and small meeting capacity. However, to make many of the spaces functional, existing structural elements could have to be removed to eliminate columns from sight lines, SANTA CLARITA - CONFERENCE CENTER MASTER PLAN • 0 and the final result would likely remain a facility with impairing compromises. Low ceilings would probably be impractical to raise, and the acoustics and presence of the gym may be difficult to tame. It is difficult to put a figure on costs without significant study, but allowances of $100 - $300 per square foot may be reasonable depending on the amount of modification required and desired. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 0 11.0 Financing • Should the City desire to develop a Conference Center, a substantial investment will be required. Some cities have funds available for such investments, however, most entities typically finance development costs. General financing considerations are discussed herein. 11.1 Cost of City Financing Independent of uncontrollable macro market factors that influence interest rates, the interest rate charged by bank lenders or bond investors is a function of the perceived credit risk of the borrower. As of August of 2012 Standard & Poor's Rating Services ("S&P") raised its overall rating for the City one notch from AA+ to AAA, the highest long-term rating S&P provides. Ratings for the City's Certificates of Participation (COP's) and lease revenue bonds were also raised to AA+ from AA. Entities with quality ratings such as these typically achieve favorable levels of investor interest and favorable financing rates. 11.2 Bond Financing Given the level of investment required to acquire land and construct a Center, bonds likely represent the most efficient financing vehicle for the City. In the current interest rate environment, bonds with "all in" interest rates in the 3-4% range may be reasonable. However, the current, atypically low bond yields and interest rates are expected to increase in the future, trending back to more historic averages. Table 13 below shows the approximate annual payment for a range of interest rates and principal amounts for bonds with a 30 year term. Based on a project fund of approximately $20 - $30 million, annual bond payments would likely range from $1.2 - 1.9 million in the current interest rate environment, to $1.5 - $2.5 million if rates increase to more historic levels. Table 13: Approximate Annual Bond Payment (30 Year Bond) Interest Rate 3.0% 4.0% 5.0% 6.0% 7.0% $10,000,000 $ 560,000 $ 640,000 $ 720,000 $ 810,000 $ 910,000 15,000,000 830,000 950,000 1,080,000 1,220,000 1,360,000 Ui 20,000,000 1,110,000 1,270,000 1,440,000 1,620,000 1,810,000 25,000,000 1,390,000 1,590,000 1,800,000 2,030,000 2,270,000 .6 30,000,000 1,670,000 1,910,000 2,160,000 2,430,000 2,720,000 a- 35,000,000 1,950,000 2,220,000 2,520,000 2,840,000 3,180,000 40,000,000 1 2,230,000 2,540,000 2,880,000 3,250,000 3,630,000 SANTA CLARITA - CONFERENCE CENTER MASTER PLAN i� 9 • 11.3 Hospitality Taxes The City currently receives revenues from Transient Occupancy Taxes ("TOT") and a Tourism Marketing District assessment ("TMD") charged to guests at local hospitality providers. The TMD assessment was established in fiscal year 2010-11, and is applied only to guests of hotels within a Benefit Zone. The City's TOT rate is 10%, and the TMD assessment is 2%, both of which are based on room rates. As shown in Figure 20 below, over the last several years, hotels within the City have generated more than $2 million annually in TOT revenues, and approximately $400,000 per year in the recently enacted TMD fee. As will be discussed in Section 12.0 Economic Benefits, the operation of a Center would likely increase hotel patronage, and increase hospitality based tax revenues. Given this nexus, many city's utilize TOT revenues as payment source to support conference facility development and operational costs. Figure 20: City TOT & TMD Revenues $3,000,000 - — -- - -- - - ---- -- I $2,500,000 ----------- --- $2,000,000 $1,500,000 $1,000,000 $ 500,000 $- - oIVI 0 0 0 N o 01 00 ri ko Tourism & Marketing District R Transient Occupancy Tax Source: City of Santa Clanta The combined effective hospitality tax of 12%, comprised of the City's 10% TOT rate, and 2% TMD assessment is comparable to many municipalities in the area, the majority of which have TOT rates between roughly 10% - 14%. For reference, Los Angeles recently increased its TOT for hotels with 50 or more rooms to 15.5%, but kept the rate for hotels with fewer than 50 rooms at 14%. A map showing reported TOT rates for area municipalities is provided in Appendix C: Map of Area TOT Rates. Should the City desire, it may be able to raise its TOT or TMD rate by up to 2% and remain competitive with area effective hospitality rates. Assuming no new demand, and no decrease in demand due to a higher rate, a 2% increase in the TMD rate could generate approximately $450,000 in incremental revenue annually. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 51 • 11.4 Public -Private Alternative As previously introduced the City could pursue a public-private alternative to deliver a Conference Center. As an example the City could partner with a hotel developer interested in including conference facilities within their project, and the City could provide a subsidy as necessary to support the construction of meeting rooms with more capacity than would otherwise be provided. The development and operation of a new hotel would generate new revenues to the City, and these new revenues might be more readily available for use in financing a subsidy. A site specific TOT rebate or sharing agreement could be utilized to generate the required funds, and the increased meeting capacity provided in the City could, in turn help drive TOT and TMD revenues at other hotels within the City. Alternatively, the City could partner with an existing hotel to expand upon their existing conference and meeting room capabilities C7 The use of a subsidy to underwrite publicly desired amenities in a project is often a reality of the development market, and a tool previously utilized by the City. In 1996, Santa Clarita provided funding for project related improvements to encourage the development of the large ballroom included in the Hyatt Regency project. The City's contribution to Hyatt Regency Valencia pre -construction is noted in Resolution No. 96-33 dated April 16, 1996, regarding the approval of the development of the hotel/conference center on Town Center Drive. On November 28, 1995, the City Council approved a MOU between the City and the Newhall Land and Farming Company for the development of a hotel/conference center. The MOU included a City funding contribution of $3,075,000 from an EDA Grant to be used towards infrastructure improvements including a storm drain (EDA storm Drain CIP Project). Should a new hotel be built near the Hyatt Regency, and a subsidy be provided to encourage development of a larger facility, the City would capitalize on its previous investment by providing a number of meeting facility options, and a number of hotel rooms within a small synergistic district. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 5Z 0 12.0 Economic Benefits a Municipalities typically invest in conference and convention centers to retain, and attract economic activity. Economic benefits include the retention of resident and local business expenditures and the capture of new revenues through visitor patronage of local hotels, restaurant, retail, entertainment and recreational amenities. Reports by cities of economic activity induced by the operation of a conference center vary, and reliable empirical data can be difficult to obtain given the macro economic factors that can also impact metrics. This is especially true for stand-alone conference facilities where measurement of hotel stays related to conferences is less common as well as for smaller facilities that are often more likely to retain local patronage than attract non-resident users. However, research provides common ranges and benchmarks that give indications of potential returns induced by conference centers, an evaluation of which follows. Number of Attendees The overall economic benefit a Center might have on the City is heavily dependent on the potential utilization of the Center, and whether events are single day, locally attended events, versus multiday events with visitor attendees. Research suggests that well managed non-residential centers can average approximately 1 - 1.5 attendee days per square foot of function space. Thus, a center with 30,000 square feet of meeting space, might reasonably be expected to host 30,000 to 45,000 attendee days. This is equal to an overall average of approximately 82 - 123 attendees per day, but actual use on a given day would vary widely. Local Versus Regional Use The next consideration evaluated is the ratio of local versus visitor patronage. As show in Figure 21 below, the 2012 Trends in the Conference Center Industry found that approximately 64% of non-residential facility attendees are from the "local" area, 14% from the "region", 18% from across the nation, and 4% from international locations. It should be noted that the average facility surveyed had approximately 22,000 square feet of meeting area, and a larger center might be able to attract a greater ratio of visitor versus local patronage. In addition, what might be considered local patronage varies from one area to the next, and should not be tied to City boundaries, but rather includes a general radius, sometimes cited as 50 miles from a facility's location. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN _ • • Figure 21: Scooe of Meetina Attendance Source: 2012 Trends in the Conference Center Industry For the purpose of evaluating visitor patronage, varying distributions of local versus visitor patronage were applied to the total expected number of attendee days from above. The result of this calculation is shown below in Table 14, and ranges from approximately 15,000 to 33,750 local patrons, and from 7,500 to 22,500 visitor patrons. Table 14: Potential Distribution of Local Versus Visitor Attendees (Annual) Annual Attendee Days 50% 55% % Local 65% 70% 75% 30,000 Local 15,000 16,500 19,500 21,000 22,500 Visitor 15,000 13,500 10,500 9,000 7,500 45,000 Local 22,500 24,750 29,250 31,500 33,750 Visitor 1 22,500 20,250 15,750 13,500 11,250 Potential City sales tax and property tax revenues directly attributable to the operation of a conference center were estimated by compiling and evaluating a number of contributing factors. The result of this evaluation is an estimated range of probable revenues the City might receive should it operate a Center. For the purpose of this analysis it was assumed that a facility with 30,000 square feet of meeting space would be located proximate to one or more hotels with sufficient capacity to accommodate room blocks associated with a moderate attendance level, and that the Center would be near restaurant and retail amenities appropriate for attendee demand. Values provided represent the approximate range for each contributing factor, typically with a slightly conservative filter applied to the lower and middle estimates. Attendees considered local are not limited only to City residents, but rather includes estimated patrons within a reasonable daily driving distance. As a result of this analysis, and a fairly wide range of scenarios it is estimated that the operation of a Center in the City would directly generate approximately $63,000 to $409,000 annually in new sales tax, TOT and TMD taxes. However, the generation of revenues in the SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 1� • range of $150,00 - $250,000 per year is considered a reasonable outcome to expect for the Center given the distribution of the results. Figure 22 showing the underlying assumptions and calculations in making this estimate follows. -figure «: csumauon of rotentiai city �aies, Hospitauty i axes Attendance Scope Lower Middic Total Attendance 30,000 37,500 45,000 % Local 75% 65% 55% Local Spending Middle UN;: Annual Attendee Days 22,500 24,375 24,750 Event Expenditures Food, Beverage, Retail, Gas, Etc. Average Expenditure Per Day Total Sales Subject to Sales Tax (Local) $ 70 $ 85 $ 100 30 45 60 $ 100 $ 130 $ 160 $ 2,250,000 $ 3,168, 750 $ 3,960,000 Visitor Spending I ow vii, Annual Attendee Days 7,500 13,125 20,250 Room Nights Per Attendee Day )"V,- ; 0.50 IViiddle 0.75 Uppe1 1 Daily Lodging Expenses $ 100 $ 120 $ 140 Lodging w/in City 106,313 60% 306,180 75% 3,562,500 90% Average Expenditure per Day $ 30 $ 68 $ 126 Total Sales Subject to Hospitality Taxes (Visitor) $ 225,000 $ 885,938 $ 2,551,500 Event Expenditures $ 70 $ 85 $ 100 Entertainment 15 30 45 Food & Beverage (In & Outside of Hotel) 60 80 100 Retail 30 48 65 Average Expenditure Per Day $ 175 $ 243 $ 310 Total Sales Subject to Sales Tax (Visitor) $ 1,312,500 $ 3,182,813 $ 6,277,500 Tax Revenues Total Sales Subject to Hospitality Taxes Hospitality Tax Revenue (10%TOT+2%TMD) Total Sales Subject to Sales Tax Sales Tax (1% City Share) Total Direct Economic Activi Total Direct City Revenues SANTA CLARITA - CONFERENCE CENTER MASTER PLAN $ 3,787,500 $ 7,237,500 $ 12, 789, 000 $ 62,625 $ 169,828 $ 408,555 -4, 5S )"V,- ; IViiddle Uppe1 $ 225,000 $ 885,938 $ 2,551,500 $ 27,000 $ 106,313 $ 306,180 $ 3,562,500 $ 6,351,563 $ 10, 237, 500 $ 35,625 $ 63,516 $ 102,375 SANTA CLARITA - CONFERENCE CENTER MASTER PLAN $ 3,787,500 $ 7,237,500 $ 12, 789, 000 $ 62,625 $ 169,828 $ 408,555 -4, 5S A review of the calculations above, shows that hospitality taxes are a large source of • potential revenues for the City. Providing sufficient hotel room capacity, in close proximity to a potential Center, and within the City will help drive multiday usage of the Center, drive room -night demand, and generate hospitality tax revenues. • 0 a SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 5� • • 13.0 Sample of Centers Evaluated In preparing this Master Plan, a number of centers were researched and evaluated. Some of these centers are highlighted below for various reasons that are discussed for each. Brief profiles of each facility, as well as broad market information are also provided. Overall, centers that had positive operational cashflow tended to rank high in the characteristics discussed in Section 4.0 Facility Success Drivers. For reference, closest airport refers to the closest major / "international" airport, and "% of SC" in population tables shows how the subject market compares with Santa Clarita. 13.1 Glendale Civic Center Proximate Cities Closest Airport Opening Year Rentable SF Largest Hall (SF) Cost Glendale, AZ Crovma Ballroom 1 1 Room R� SaoEoIE crowm, R ow i .. .. CW"W-4w, - *0� V46 6 4�� 2012 % of SC Phoenix, Mesa, Scottsdale, Tempe City 231,000 114% Phoenix Sky Harbor (15 miles) 15 Mins 727,000 212% 1999 30 Mins 2,314,000 96% 34,900 60 Mins 3,948,000 33% 12,800 —$8.5m (-r$12m $2012) The Glendale Civic Center provides a good example of a facility slightly smaller than the facility contemplated. The center was developed in two phases, constructed adjacent to each other rather than in one cohesive space. The first phase was built in 1999, and due to the success of the facility, an annex adding approximately 5,200 square feet of rentable area was added in 2006. The facility appears to be regularly generating an operating profit, and notably, seems to be successful despite the provision of parking through a patchwork of nearby surface lots and structures. Finally, Glendale is comparable to Santa Clarita in population, and its proximity to a major city. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 19 5� • • 13.2 Monterey Conference Center Proximate Cities Closest Airport Opening Year Rentable SF Largest Hall (SF) Cost Monterey, CA Salinas San Jose (76 miles) 1977 41,000 19,600 -$8m (-r$30m $2012) f YEI ONE (} 0 _ o The Monterey conference center provides a good example of a facility with an approximately 20,000 square foot ballroom, and a large block of hotel rooms provided within a single complex. The facility helps drive many conference events to the quaint and attractive, yet somewhat isolated city, but it appears that the city continues to support operations with tax revenues from local hotels. Additionally, the city is currently in the process of deciding on whether to make $15 to $33 million in improvements to the now 35 year old facility, illustrating the need for costly upgrades over time. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 10 Population Pop. 2012 % of SC City 28,000 14% 15 Mins 115,000 34% 30 Mins 316,000 13% 60 Mins 772,000 6% The Monterey conference center provides a good example of a facility with an approximately 20,000 square foot ballroom, and a large block of hotel rooms provided within a single complex. The facility helps drive many conference events to the quaint and attractive, yet somewhat isolated city, but it appears that the city continues to support operations with tax revenues from local hotels. Additionally, the city is currently in the process of deciding on whether to make $15 to $33 million in improvements to the now 35 year old facility, illustrating the need for costly upgrades over time. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 10 L� 13.3 Hurst Conference Center L.__ = { o z E&=- Population & Population Hurst, TX Pop. 2012 % of SC Proximate Cities Dallas, Fort Worth, Arlington City 38,000 19% Closest Airport Dallas/Fort Worth (12 miles) 15 Mins 493,000 144% Opening Year 2010 30 Mins 2,486,000 103% Rentable SF 35,000 60 Mins 6,331,000 53% Largest Hall (SF) 13,800 Cost —$20.5m (—$22m $2012) • The relatively small city of Hurst recently opened its approximately 54,000 square foot conference center, and has experienced better than expected operating results, achieving an operating profit in only its second year. The city is located between Dallas and Fort Worth, and likely benefits from events attracting patrons from both cities, as well as its proximity to the Dallas -Fort Worth Airport which is a convenient destination for many areas of the United States. Hurst has relatively few hotels providing approximately 300 hotel rooms within its jurisdiction, but attributes a roughly 20% increase in TOT revenues to the facility. • SANTA CLARITA - CONFERENCE CENTER MASTER PLAN • • 13.4 Gastonia Conference Center Proximate Cities Closest Airport Opening Year Rentable SF Largest Hall (SF) Cost Gastonia, NC I Population 2012 % of SC Charlotte City 72,000 35% Charlotte/Douglas (21 miles) 15 Mins 155,000 45% 2011 30 Mins 723,000 30% 11,100 60 Mins 2,772,000 23% 5,120 -$10m (-$10m $2012) The recently developed Gastonia Conference Center provides a glimpse of potential difficulties of developing and operating a conference center. Shortly after opening, the facility was temporarily closed to resolve issues of vibration transferring from the attached parking garage. The center was subsequently reopened, but faces operational deficits. While it is reasonable to expect such deficits, especially in initial years of operation, the negative cashflow seems to be a source of concern and political sensitivity in the community. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN • 13.5 Lynwood Convention Center Lynnwood, WA Population Pop. 2012 % of SC Proximate Cities Seattle, Bellevue, Tacoma City 36,000 18% Closest Airport Seattle -Tacoma (30 miles) 15 Mins 673,000 196% Opening Year 2005 30 Mins 1,733,000 72% Rentable SF 34,100 60 Mins 3,143,000 26% Largest Hall (SF) 11,800 Construction Cost --$11 m (-$13m $2012) The City of Lynnwood developed its facility in 2005, and seems to be operating fairly successfully. The facility is partially financed through an agreement with the local county to share hotel tax revenues, and appears to also receive annual funding from the city. The facility has proven successful in attracting patronage from surrounding population centers to the relatively small city. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN • 13.6 Visalia Convention Center Visalia, CA I Population 2012 % of SC Proximate Cities Fresno City 125,000 62% Closest Airport Fresno Yosemite (45 miles) 15 Mins 179,000 52% Opening Year 1991 30 Mins 492,000 20% Rentable SF 51,200 60 Mins 1,587,000 13% Largest Hall (SF) 31,700 Cost -$15m (-$25m $2012) • The Visalia Convention Center provides an example of a somewhat multipurpose facility that can accommodate a variety of community and convention events in the relatively geographically isolated city. The center is adjacent to two hotels and hosts a number and variety of large events in its approximately 32,000 square foot hall throughout the year. It appears that the city provides an annual operating subsidy to the facility. 0 SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 54 �J2 14.0 Conclusion The decision by an public entity to develop a conference facility is often driven by the desire to provide an amenity to its community, with the goal that the facility will support itself through induced economic activity and tax revenues. Many cities have achieved successful results, but it is not uncommon for cities to provide annual subsidies to support facility financing and/or ongoing operating costs. Many entities consider a conference facility to be a loss leader, and the increased exposure and visitor attraction worth the potential expense. Should Santa Clarita determine that it desires to operate a Conference Center, it should develop a quality Center of sufficient size to fill the market needs of the greater area, and construct it in a location that would best drive demand. To help attract patronage, a design in alignment with IACC standards should be considered, and a site adjacent to existing hotels and amenities with excellent access to transportation should be pursued. Absent such a location, development of a Center may not be justified unless its primary purpose is accommodating local events. Depending on the ultimate size, included amenities, and need for structured parking, a Center similar to the sample programs discussed could easily range from $15 million to $30 million or more to construct. Should the City desire to finance the construction of a Center with bonds, as is typically done, it would be reasonable to expect annual financing costs in • the range of $1 to $2.5 million per year for 30 year bonds, depending on the amount financed, and the underlying interest rate achieved. These costs do not include land costs, which can be estimated to be between $5 million and $20 million for an 8-12 acre site. The total cost for a 55,000 square foot facility, including a two level parking structure, and an allowance for land is estimated to be between $40 million and $65 million. • Based on typical conference center performance, annual revenues from a successful, stabilized Center are estimated to be roughly $3.75 million, have operating costs of approximately $3.1 million, and yield approximately $600,000 annually in net operating income after reserves. However, the City may find that it needs to provide an operational subsidy in initial years, during periods of economic stress, and potentially on an ongoing basis. A facility like the one evaluated herein could be expected to generated direct sales and hospitality taxes in the range of $150,000 to $250,000 annually, with greater or lesser revenues possible. The City could also consider slightly increasing its TOT or TMD rate, which could result in additional revenues in the range of $450,000 per year. While these revenues would not completely cover financing costs, TOT and sales tax revenues are expected to grow over time while initial financing costs would likely remain fixed. However, the need for significant reinvestment in the Center, about the same time 30 years bonds would be paid off, should be anticipated. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN • An alternative to a City developed Center is delivery through a public-private partnership with a hotel developer. The City could help underwrite a facility of the desired size by utilizing an incremental hotel / site-specific tax revenue agreement with the developer to achieve the desired results. Such an option limits the City's exposure to construction and operational risks, and, if it is feasible to construct a facility near the existing Hyatt Regency, could capitalize on prior City investments, and create a synergistic set of meeting facilities. '7 f3 SANTA CLARITA - CONFERENCE CENTER MASTER PLAN ��1 0 15.0 Appendices • SANTA CLARITA - CONFERENCE CENTER MASTER PLAN �s • Appendix A: Area Meeting, Conference & Convention Facilities MAP ID Facility City Largest Room (SF) Total Rentable (SF) 58 Courtyard by Marriott Santa Clarita 600 1,100 62 TPC at Valencia Valencia 1,100 2,300 56 Holiday Inn Express Valencia 1,200 1,500 33 Crowne Plaza Redondo Beach & Marina Hotel Redcndo Beach 2,400 7,500 55 Valencia Country Club Valencia 2,400 3,300 63 Robinson Ranch Golf Club Canyon Country 3,000 4,800 1 Davidson Executive Conference Center at USC Los Angeles 3,800 12,000 52 Sheraton Agoura Hills Agoura Hills 3,800 17,000 72 Kellogg West Conference Center and Hotel Pomona 3,900 12,800 53 Santa Clarita Activities Center Santa Clarita 4,000 10,000 9 Mr. C Beverly Hills Los Angeles 4,100 5,900 57 Embassy Suites Valencia 4,500 5,000 8 W Hollywood Hollywood 5,000 12,600 42 Doubletree Hotel San Pedro San Pedro 5,000 13,800 41 Cerritos Center for the Performing Arts Cerritos 5,100 154,000 67 1 Beverly Garland Holiday Inn Universal Studios North Hollywood 5,100 1 15,000 64 Airtel Plaza Hotel & Conference Center Van Nus 5,400 21,000 48 Westin Pasadena Pasadena 5,600 20,000 61 Hilton Woodland Hills and Towers Woodland Hills 5,600 16,000 54 Hatt Regency Valencia 5,700 10,800 10 Doubletree Hotel Los Angeles / Commerce Commerce 5,800 5,800 28 Radisson Hotel Los Angeles Westside Culver City 5,800 21,500 15 Crowne Plaza LAX Los Angeles 5,900 12,000 19 Four Points by Sheraton LAX Los Angeles 6,000 16,500 40 Sheraton Cerritos Hotel Cerritos 6,000 10,000 34 Marina Del Rey Marriott Marina del Rey 6,100 18,000 29 Hacienda Hotel EI Se undo 6,200 25,000 37 Loews Santa Monica Beach Hotel Santa Monica 6,200 17,000 18 Renaissance Los Angeles Airport Hotel Los Angeles 6,300 18,000 30 Holiday Inn Express Hotel & Suites Hawthorne 6,500 12,000 31 Manhattan Beach Marriott Manhattan Beach 6,800 22,500 2 Radisson Hotel Midtown Los Angeles Los Ancleles 6,900 15,000 39 Doubletree Norwalk Hotel Norwalk t 7,000 13,000 79` Bakersfield Marriott at the Convention Center Bakersfield 7,300 9,100 36 Fairmont Miramar Hotel & Bungalows, Santa Monica Santa Monica 7,400 21,200 20 Los Angeles Olympic Collection Banquet Hall & Conf Center Los An eles 7,500 30,000 22 Marriott Los Angeles Downtown Los Angeles 7,500 22,000 25 The Beverly Hills Hotel & Bungalows Beverly Hills 7,600 16,000 47 Hilton Pasadena Pasadena 7,600 29,100 16 Sheraton Gateway Los Angeles Hotel Los Angeles 7,900 42,000 35 The Ritz-Carlton, Marina Del Rey Marina Del Rey 8,000 30,000 51 Hilton Los Angeles North/Glendale & Executive Meeting Center Glendale 8,100 21,000 66 Pickwick Gardens Conference Center Burbank 8,200 24,500 3 Omni Los Angeles at California Plaza Los Angeles 8,500 20,000 44 Queen Mary Long Beach 9,000 80,000 75* California Center for the Arts Escondido 9,000 1 18,000 46 Hilton Lon Beach & Executive MeetingCenter Lon Beach 31,200 6 Sheraton Los Angeles Downtown Hotel Los Angeles 24,000 74 Hilton Los An eles/San Gabriel San Gabriel jJ9,700 30,000 68Sheraton Universal Universal Cit 29,000 d SANTA CLARITA - CONFERENCE CENTER MASTER PLAN �^ LI • 66 ri 7 6H 69 70 71 7 73 74 7;i 76 77 78 79 80 81 MAP ID Facility City Largest Room (SF) Total Rentable (SF) 60 Warner Center Marriott Hotel Woodland Hills 11,000 25,000 50 The Lan ham Huntington Hotel & Spa, Pasadena Pasadena 11,200 30,000 59 Four Seasons Hotel Westlake Village Westlake Village_ 11,600 45,000 43 Carson Center Carson 12,000 40,000 70 Pacific Palms Hotel & Conference Center City of Industry 12,000 45,000 14 Los Angeles Airport Marriott Los Angeles 12,500 50,000 73 Fairplex Conference Center at the Sheraton Fairplex Pomona 12,500 30,000 38 Quiet Canyon / Hilton Garden Inn Montebello 12,700 30,000 13 Hilton Los Angeles Airport Los Angeles 13,000 1 55,000 12 The Westin Los Angeles Airport Los Angeles 13,500 45,000 11 Crowne Plaza Hotel at Commerce Casino Commerce 13,600 20,000 17 Radisson Hotel at Los Angeles Airport Los Angeles 13,900 42,000 27 Beverly Wilshire, A Four Seasons Hotel Beverly Hills 14,500 25,000 65 Marriott Burbank Airport Hotel & Convention Center Burbank 15,000 28,800 69 Hilton Los An eles Universal City Universal City 16,000 60,000 24 Millennium Biltmore Hotel Los Angeles 16,800 70,000 26 The Beverly Hilton Beverly Hills 17,500 55,100 32 Terranea Resort Palos Verdes 18,000 135,000 76* Riverside Convention Center Riverside 20,800 45,700 77' Pechancla Resort & Casino Temecula 21,500 35,000 5 JW Marriott Hotel Los Angeles at L.A. Live Los Ancleles 25,100 77,000 7 Renaissance Hollywood Hotel & Spa Hollywood 25,100 50,000 21 !jyaft.Regency Century Plaza Hotel & Spa Los An eles 25,100 100,000 23 Westin Bonaventure Hotel and Suites Los Angeles 26,100 100,000 81* Visalia Conference Center Visalia 31,700 51,200 80{ Fresno Convention Center Fresno 66,400 97,500 71 Ontario Convention Center Ontario 70,000 225,000 49 Pasadena Convention Center Pasadena 80,000 108,000 78 Anaheim Convention Center Anaheim 221,300 1,600,000 45 Long Beach Convention and Entertainment Center nr Long Beach 224,000 400,000 4 Los Angeles Convention Center Los Angeles 347,000 867,000 *Beyond Map Extent Square footages highlighted in red are below 10,000 square feet, those in yellow are between 10,001 and 15,000 square feet, those in green are between 15,001 and 25,000 square feet, and those in blue are above 25,001 square feet. Facilities in bold are understood to be publicly owned. This list does not include all conference facilities in the region, but rather all facilities in the City, as well as larger facilities in the region. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN L-� 0 �q, ',�' Vit. j � �' �, J%f� ;g co ab FA XAU) C4 co cn ccmoC., r4 cn W-) co Q Q O LL cl CL C:L f - U) C) to W 4) 04 cl) IM Ln r r C4 ui in ui -j SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 0 Appendix B: Locations Evaluated 5/126 Interchange SANTA CLARITA - CONFERENCE CENTER MASTER PLAN L- � • • Town Center SPECTRUM CLUB (+1-1.7 Acres) " ;A Existing Building: 53,044 sf Parking: some parking provided in parking structure east of building ZZ SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 52 • Town Center (continued) SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 63 �1 AV4 J4 4-1 vol Newhall Area • (continued) • SANTA CLARITA - CONFERENCE CENTER MASTER PLAN r 1 • • • Newhall Area (continued) Eastern Corridor VISTA CANYON (+/-182.5 Acres)'" A: ,• r� t + 6 x5 a� ,ut�4 h Y T i > f a• n" s q ( ° A- S a � n WW SANTA CLARITA - CONFERENCE CENTER MASTER PLAN • • Appendix C: Map of Area TOT Rates e I O10` • r • rK o e � O s V, O N N N N O e x : x o r IA 4! 0+ r • • • 04 m x r r s e i x r N O Source: California Local Government Finance Almanac, As of March 15, 2011, City of LA Rate as of May 25, 2011 - 14% for hotels under 50 rooms, 15.5% for hotels with 50 or more rooms SANTA CLARITA - CONFERENCE CENTER MASTER PLAN -�e r 1 N N a pi � O O `� '.� `t a '' ' !•nf o O C ' O c O e • _ Qf �PNCD N c e I O10` • r • rK o e � O s V, O N N N N O e x : x o r IA 4! 0+ r • • • 04 m x r r s e i x r N O Source: California Local Government Finance Almanac, As of March 15, 2011, City of LA Rate as of May 25, 2011 - 14% for hotels under 50 rooms, 15.5% for hotels with 50 or more rooms SANTA CLARITA - CONFERENCE CENTER MASTER PLAN -�e Appendix D: IACC Standards & Recommendations Priority of Business 1. A minimum of 60% (based on net area) of meeting space in the conference centre is dedicated, single -purpose conference space. 2. A minimum of 60% of total revenue from guest rooms, meeting space, food & beverage, conference technology (AIV) and conference services is conference related. If the property is non- residential or ancillary (see definition below), 70% of total sales of the conference centre is generated from conferences. 3. Conference centre offers and actively promotes a package plan which includes conference rooms, guest rooms, three meals, continuous refreshment service, conference services and conference technology. Non-residential package includes conference rooms, lunch, continuous refreshment service, conference services and conference technology. (See also #27 below.) Conference Centre Design 4. Dedicated conference rooms are separated from living and leisure areas. 5. Property has at least one dedicated main conference room that contains a minimum of 93 square metres or 1,000 square feet and can accommodate flexible seating arrangements. In addition, the conference centre has at least three other dedicated conference rooms with no moveable walls. 6. Conferees that have multiday meetings can safely store materials and equipment overnight in dedicated conference rooms. • 7. Property has sufficient inventory so that no less than 60% of all meeting space can be set up using ergonomically designed chairs. (The North American Chapter also requires that chairs have arms, that they swivel and tilt synchronously and allow height adjustment. Chairs have a rounded or waterfall edge on the front of the seat pan. Chair seats have a minimum width of .46 metre or 18 inches, a minimum depth of .4 metre or 16 inches and seat height adjustable within at least 7.5 centimetres or 3 inches of the range between .38 and .53 metre (15 - 21 inches). The seat and inside back of the chair are fully upholstered or constructed of Pellicle® or like material. The arms and outside back of the chair are fully upholstered or constructed of ABS molded plastic or of Pellicle® or like material. The base of the chair has five -prong design with casters.) • 8. Property has sufficient inventory so that no less than 60% of all meeting space can be set up using tables that are at least .6 metre or 24 inches wide and that have a non -reflective, hard writing surface with a high-pressure laminate or hardwood veneer finish. Tables have sufficient length to allow at least .76 metre or 30 inches of space per occupant. Draped, skirted banquet tables are not acceptable. (The North American Chapter also requires that the edge of the table is comprised of a high-pressure laminate finish or a decorative edge banding material that is constructed of vinyl or wood products. Tables have a reverse "T" style leg mechanism or its equivalent with offset legs that are permanently affixed or that fold, and that do not impinge upon the tables' occupants.) 9. Wherever meeting rooms have windows, they have built-in manually or electrically operated curtains that substantially eliminate light from outside the room. 10. All meeting rooms have lighting with in -room controls that produce maximum illumination levels between 500 and 700 lux or 50 and 70 foot candles at tabletop. 11. Dedicated conference rooms larger than 93 square metres or 1,000 square feet have zoned lighting and controls that permit dimming across the spectrum from full -power to off. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 12. All meeting rooms larger than 160 square metres or 1,750 square feet have fixtures that can isilluminate a targeted area and can be controlled separately from other zones and/or task lighting. 13. Dedicated conference rooms have individual climate controls. 14. Dedicated conference rooms have appropriate vertical surfaces to display information generated at a meeting. 15. Acoustical rating for sound transmission between dedicated conference rooms and all adjacent areas meets or exceeds 50-60 NIC (Noise Isolation Class) for all fixed walls and 45-50 NIC for all operable walls. 16. Ambient sound levels within all dedicated conference rooms range from 25-35 NC (Background Noise Criteria) or less, and Reverberation Time (RT) falls between 0.8 and 1.2 seconds at mid -frequencies. 17. All meeting rooms larger than 93 square metres or 1,000 square feet have built-in voice reinforcement sound systems; at least one microphone input point in the floor, podium, table or wall at the head of the room; and a minimum of one set of in -room sound system controls. 18. Each dedicated conference room has one in -room telephone outlet, simultaneous Internet connectivity and multiple power outlets located throughout the room. All meeting rooms larger than 55 square metres or 600 square feet have a minimum of two communications access plates for the connection of both telephone and Internet devices. 19. Within all meeting rooms, High -Speed Internet Access (HSIA) services are available to conferees. 20. Dedicated conference rooms have unobstructed interior views. is Conference and Business Services 21. Property staff includes skilled conference planners who are thoroughly proficient in effective meeting room setups, menu and special event planning, conference technology (A/V) equipment and services, and other special needs of the client. 22. A designated conference planner is assigned to each conference group. 23. Within the conference centre, there is a staffed business services centre or desk that can provide at least the following products and services: basic office supplies (e.g., paper clips, tacks, pens/pencils, tape, scissors, etc.); computer workstations with current office software applications and Internet access; facsimile services, including message/fax notification and delivery system; paper shredder; word processing; photocopying; computer printing; laptop/notebook computer rental; digital media (USB flash drives and CD's) blank audio and video media; shipping supplies and services, including postage and express shipping; nametag and tent card paper stock. Food & Beverage 24. Separate dining and conference facilities, with at least one dedicated conferee dining area available specifically for the convenience of conference groups. (The dedicated conferee dining area must be in one consistent location and cannot be within conference or meeting rooms.) 25. Property provides dining facilities designed to accommodate conference groups on a flexible meeting schedule (at convenience of group), at least for breakfast and lunch, and to accommodate the capacity of the conference facility for lunch in no more than two seatings of one hour each. 26. Within the conference centre, continuous refreshment service is available outside of meeting rooms. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN __� 1� Technology The "Total Meeting Environment" must naturally provide a minimum amount of technology infrastructure and equipment to support a successful meeting. Because the best possible environment for meetings and adult learning experiences is exactly what every IACC-member property strives to deliver, all dedicated conference space must have interior architecture, sufficient power accessibility, signal infrastructure, design elements and physical arrangement to support the convenient and unobstructed use of all up-to- date portable equipment for audio visual presentation technologies. 27. Package plan includes flip charts, microphones, and computer/video-image display equipment. 28. Dedicated conference rooms larger than 93 square metres or 1,000 square feet have at least one built-in remote -input computer/ video -image display system. 29. High-tech, high -finish board and video -teleconferencing rooms as well as dedicated conference rooms larger than 93 square metres or 1,000 square feet have at least one manually or electrically operated, retractable projection screen which is installed either in the ceiling or mounted on the wall. 30. Property provides skilled technicians who are thoroughly proficient in creative program consultation; equipment setup, operation and instruction; and who are available for immediate response to service needs. Guest Rooms (Not applicable to non-residential centres) 31. Guest rooms have work areas that include a desk or table with hard writing surface and a comfortable chair; desk or table lighting which is controllable separately from overhead lighting 40 and gives adequate illumination for reading and writing; a phone line and simultaneous high-speed Internet connectivity; and adequate, easily accessible power outlets. 32. Guest rooms are separated from conference and leisure areas to allow maximum privacy and comfort. Ancillary Conference Centres Definition: Ancillary conference centres are located at properties where one part of the venue is a readily identifiable conference centre which qualifies for IACC membership. An ancillary conference centre may occupy one (or more) floor(s), a wing, or some other clearly distinct portion of a resort, convention hotel, exhibition and/or convention hall, or other hospitality venue. Every meeting room within the designated conference centre meets all IACC standards above, but IACC does not evaluate guest rooms or any meeting space outside of the conference centre. In addition, IACC requires all ancillary conference centres to: 33. Name the conference centre in a way that readily identifies the conference centre and clearly differentiates it from the remainder of the complex (e.g., the Conference Centre at Raintree, not the Raintree Hotel & Conference Centre). 34. Install signage that displays the distinct name of the conference centre at each public entrance to the conference centre. 35. Have at least one public entrance with a door that clearly separates the conference centre from the remainder of the facility. 36. Have a conferee reception area or lobby within the conference centre 110 37. Have at least one set of public restrooms within the conference centre. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 0 38. Have at least one conference planner dedicated exclusively to the conference centre. Conference Technology To supplement the basic requirements of the Quality Standards, IACC has published a document called Design for Great Technology. It defines three levels of achievement for the inclusion of AV and other technologies at conference centres. • IACC recommends that every member conference centre implement at least the medium level of technology described in Design for Great Technology. • As technology changes, IACC recommends that all member conference centres regularly update available equipment and the technology items offered in the Complete Meeting Package to include routinely requested AV devices and other common technologies. Beyond Dedicated Conference Space According to the Quality Standards (#1), the meeting space in every IACC-member conference centre must include at least 60% dedicated, single -purpose conference space. Beyond that stipulation, however, IACC members know that overall satisfaction with the conference centre experience depends on the ratio between customer expectations and costs. IACC has developed a Sales Toolkit to assist conference centre salespeople and designated conference planners with educating customers about the IACC Meeting Concept and manage their expectations. IACC recommends that all conference centre sales and conference planning personnel familiarize themselves with the Sales Toolkit and employ its resources in their everyday work. Maintenance of Meeting Rooms and Their Features isAccording to the Quality Standards (#2), at least 60% of all business at an IACC-member conference centre must come from conferences. In that light, the quality and condition of a facility's meeting rooms must take priority and should receive ongoing attention. • IACC recommends that conference centres develop and implement a detailed plan for regular inspection of meeting room conditions. This plan should define all items to be inspected, establish intervals and responsibility for inspections and their recurrence, make provision for logging inspections, and include protocols for remedying conditions that need attention. Extent of Packaging According to the Quality Standards (#3), every IACC-member conference centre must offer and promote a package plan that includes conference rooms, guest rooms, three meals, continuous refreshment service, conference services and conference technology. Non-residential package includes conference rooms, lunch, continuous refreshment service, conference services and conference technology. IACC recommends that members package all conference business Service Expectations for Meeting Room Setups According to the Quality Standards (#5), every IACC-member conference centre must have at least one dedicated main meeting room that can accommodate flexible seating arrangements. As part of a group's Events Specifications Guide [sometimes known as "Banquet Event Order" (BEO), "Group Summary" or "Conference Resume"], IACC recommends that conference centres provide to -scale diagrams of any conference setups required by the group in at least its main meeting room. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN Security According to the Quality Standards (#6), conferees that have multiday meetings must be able to safely store materials and equipment overnight in dedicated conference rooms. IACC recommends that all meeting rooms have electronically auditable door locks which can be specifically programmed to a conference group's access requirements and which will record and track times and key numbers for every use of a key in the door. Chairs According to the Quality Standards (#7), every IACC-member conference centre must have sufficient inventory so that at least 60% of all meeting space within the conference centre can be set up using ergonomically designed chairs that swivel and tilt and that meet certain other standards as outlined in the criterion. IACC recommends that members include all of the following when purchasing new conference chairs: • The reclining action of the chair does not lift users' feet off the floor. • Chair provides adjustable lumbar support that covers the range between 6-10 inches above the seat pan. • Backrest height is ideally 17 inches (but no less than 12 %2 inches). • Backrest width is at least 14 inches. • The height of armrests is between 8 and 10 inches, or adjustable within this range. • Distance between armrests is at least 18 inches. • Seat pan angle is within the range of 0 degrees horizontal to 4 degrees rearward. Use of Modesty Panels According to the Quality Standards (#8), every IACC-member conference centre must have sufficient inventory of tables that meet specifications listed in the standards. IACC recommends that members provide modesty panels where appropriate in every conference room set up. Lighting Controls According to the Quality Standards (#9-12), all meeting rooms that have windows must have curtains that substantially eliminate light from outside the room. Also, all conference rooms must have controllable lighting, and all dedicated conference rooms larger than 93 square metres (1,000 square feet) must have zoned lighting and controls that permit dimming across the spectrum from full -power to off. In addition all meeting rooms larger than 160 square metres (1,750 square feet) must have targetable fixtures that can be controlled separately from other zones and/or task lighting. IACC recommends that all meeting rooms where there are windows include curtains to eliminate 100% of the light from outside the room. IACC recommends that every conference room have a hands-on apparatus within the room that gives conferees some control over the level of lighting in that room (as opposed to, or in addition to, the ability of the staff to control the lighting from a remote location). IACC recommends that, in every meeting room larger than 55 square metres (600 square feet), member conference centres provide zone -controlled lighting that isolates and darkens the area where any image -display screen is installed. Acoustics According to the Quality Standards (#15), the acoustical rating for sound transmission between dedicated conference rooms and all adjacent areas meets or exceeds 50-60 NIC (Noise Isolation Class) for all fixed walls and 45-50 NIC for all operable walls. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN Q `1 t IACC recommends that all walls—fixed or operable—achieve a minimum NIC rating of 51, regardless of the particular room's primary functionality as dedicated or multi -use. Sound System(s) According to the Quality Standards (#17), all meeting rooms larger than 93 square metres (1,000 square feet) must have built-in voice reinforcement sound systems, including microphone input(s) and system control unit(s). Because ceiling speaker sound systems provide much greater aural intelligibility of human voices than wall -mounted speakers, IACC recommends that speakers for voice reinforcement be arrayed across the ceiling. IACC recommends that member conference centres install such sound systems in smaller rooms, especially high-tech, high -finish board and video -teleconferencing rooms, as well as all dedicated conference rooms larger than 45 square metres (500 square feet). In any meeting room where the conference centre has built-in image -display screens, IACC recommends the installation of point -source speakers alongside the screen or in another appropriate location near the screen. Cabling According to the Quality Standards (#19), all meeting rooms must have High -Speed Internet Access (HSIA) services available. In addition, the Quality Standards (#28) require dedicated meeting rooms larger than 93 square metres (1,000 square feet) to include a built-in remote -input computer/video-image display system. • To support these requirements, IACC recommends that cabling for communications/data lines consist of category -6 (CAT6) copper wiring and may also include multi -mode optical fiber. • For AV cabling, IACC recommends at least two runs each of low -skew category -5E (CATSE) istwisted copper, multi -mode fiber-optic, plus other high-grade analog audio and digital -grade video circuits. 0 Access to Power and Communication Lines According to the Quality Standards (#18), all dedicated conference rooms must have at least one in -room telephone outlet, simultaneous Internet connectivity and multiple power outlets located throughout the room. Also, all meeting rooms larger than 55 square metres (600 square feet) must have a minimum of two communications access plates for the connection of both telephone and high-speed Internet devices. • IACC recommends that all meeting rooms larger than 45 square metres (500 square feet) have power outlets on or near all four walls. • In meeting rooms larger than 93 square metres (1,000 square feet), IACC recommends multiple power outlets on any single wall longer than 10 metres (30 feet) and additional communications access plates whenever the distance between them—as measured along the periphery of walls in the room—exceeds 15 metres (45 feet). • IACC recommends that facilities accomplish convenient placement of outlets and communications access plates by locating them in floor boxes—at least one for every 45 square metres (500 square feet) of area in the room. • IACC recommends that facilities install at least one set of power outlets and communications connections in the floor of each section of any room with operable walls, whether or not it exceeds 45 square metres (500 square feet). • Naturally, in any state, municipality or other governance where ordinance dictates greater numbers of power outlets and/or communications access plates per room or shorter distances between them within a room, the IACC-member conference centre would be required by law to observe the more restrictive local ordinance. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN R • Internet Connectivity According to the Quality Standards (#19), member conference centres must provide High -Speed Internet Access (HSIA) services within all meeting rooms and (#31) in guest rooms, when available on site. • Because many governmental and corporate entities prohibit the use of wireless technologies for their employees, IACC recommends that member conference centres provide both wired and wireless HSIA connectivity in all meeting rooms. • In addition, IACC recommends that members provide wireless HSIA as part of the CMP or DMP in guest rooms, the Business Centre and other public areas such as lobbies, hallways, dining spaces and pre -function areas. Business Services According to the Quality Standards (#23), every IACC-member conference centre must offer staffed business services from a central location within the conference centre and provide products and services as specified in the standards. • For staffing, IACC recommends an on -duty attendant during operating hours, but other solutions may suffice based on conferee needs. • Based on conferee needs, IACC recommends that business services operate from one-half hour prior to the first meeting of the day until one-half hour after the final meeting adjourns. • During times when the Business Centre is closed, IACC recommends that guests be directed to other conference centre staff for their business services needs. IACC also encourages member conference centres to provide the following optional products and services through the Business Centre: • Binding supplies and services • Color transparencies • Flip chart enlargement/reduction • Laser pointer • Foam core board and lamination services • Signage production and other graphic arts services Service Expectations for Designated Conference Planners According to the Quality Standards (#22), IACC-member conference centres must assign at least one conference planner as the designated on-site contact for each conference group. • IACC recommends that the assignment and initial contact between planner and customer occur early in the interactions between conference sales, conference planning and the customer, preferably within ten days of signing contact. • IACC recommends that the assigned planner or her/his designee approach each conference group at the beginning of their meeting to identify room and facility features that conferees will use while on-site. • IACC recommends that the assigned planner or her/his designee identify the group's on-site facilitator and interact face-to-face with that person regularly (at least once per day during breaks or at the end of each day) about the program's progress and satisfaction levels concerning room(s) and facility features. • IACC recommends that the conference centre provide some means of relatively immediate contact between the assigned planner (or her/his designee) and the on-site facilitator of each conference group. • IACC recommends that the assigned planner or her/his designee follow-up with the customer and/or the on-site facilitator within ten days after the meeting in order to confirm the group's assessment of the meeting's outcomes and level of satisfaction with conference facilities. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 3 Certification of Planner Proficiencies 40 According to the Quality Standards (#21), conference centre staff must include skilled conference planners who are thoroughly proficient in providing effective meeting room setups, menu and special event planning, conference technology (A/V) equipment and services and other special needs of the client. IACC recommends that conference centres employ conference planners who have achieved meetings - focused credentials such as the Certified Meeting Professional (CMP) or its equivalent. Certification of Technical Proficiencies According to the Quality Standards (#30), the conference centre must employ or otherwise make available skilled on-site technicians who are proficient is providing creative program consultation; equipment setup; operation and instruction; and immediate response to service needs. IACC recommends that conference technicians have achieved at least the general credential of Certified Technology Specialist (CTS) or its equivalent. In addition, IACC recommends that conference technicians pursue individual educational development within the AV industry and continuously strive to stay abreast of rapidly evolving developments in equipment and best practices. Further, IACC recommends that conference centres provide educational funds and time for technicians to pursue the development of such improved skills and knowledge. Service Expectations for Conference Technology Staff According to the Quality Standards (#30), IACC-member conference centres must provide skilled and proficient technicians to implement interface between users and technical equipment on-site. • IACC recommends that conference technician training and on-site infrastructure support all current popular digital interfaces to projection equipment and in-house AV systems. • Whenever technological limitations are unavoidable, IACC recommends that tech staff work with conference planning to inform customers of restrictions in each group's Events Specifications Guide [sometimes known as "Banquet Event Order" (BEO), "Group Summary" or "Conference Resume"] and to suggest conveniently available options to overcome such restrictions. • IACC recommends that tech staff work with conference planning and services to develop straightforward setup and operating instructions for all technical equipment on site. These instructions should cover Internet connectivity, sound systems and projection equipment, at a minimum. If lighting, climate control, room -darkening, ergonomic chair adjustment or other technical features are not thoroughly self-explanatory, the property should create instructions for these "technologies" as well. Further, IACC recommends that conference centres provide these instructions with trouble -shooting contact information to all group facilitators and presenters at the beginning of any meeting. Image -Display System(s) According to the Quality Standards (#27), the Package Plan (CMP or DMP) must include flip charts, microphones, and computer/video-image display equipment. The Quality Standards (#28-29) further require that certain types of rooms as well as all dedicated conference rooms larger than 93 square metres (1,000 square feet) must have at least one built-in remote -input computer/video-image display system with retractable display/projection screen installed either in the ceiling or mounted on the wall. • IACC recommends that smaller rooms between 45 and 95 square metres (500-1,000 square feet) have at least one built-in front projector with a minimum output of 2,000 lumens and/or flat -panel LCD display system. • If the room is a high-tech, high -finish board or video -teleconferencing room, IACC recommends that the member conference centre install rear projection and/or high-definition equipment in place 9 of or in addition to the front projection image -display system SANTA CLARITA - CONFERENCE CENTER MASTER PLAN y • For dedicated conference rooms (without moveable walls) between 93 and 135 square metres • (1,000-1,500 square feet), IACC recommends at least one ceiling -mounted, built-in front projector with a minimum output of 3,000 lumens, high-definition equipment, and/or flat -panel LCD display system. • For auditoriums or dedicated meeting rooms larger than 135 square metres (1,500 square feet), IACC recommends at least one built-in front projector with a minimum output of 4,000 lumens and retractable mounting platform, and/or rear -projection or high-definition equipment. • IACC recommends that all member conference centres have sufficient computer and video image -display equipment with a variety of luminosity ratings available (by lease or other contract, if appropriate) to readily supply devices and systems where needed by guests or other users of the meeting facility. • IACC recommends that the conference centre always include computer and video image -display equipment suitable for at least the main meeting room as part of the group's CMP or DMP. Service Expectations for Refreshment of Meeting Rooms According to the Quality Standards (#26), IACC-member conference centres must provide continuous refreshment service outside of meeting rooms. This stipulation does not, however, eliminate the need for periodic refreshment of the conditions inside meeting rooms. To that end, • IACC recommends that conference facilities refresh meeting rooms at a minimum of once a day (during the group's lunch break) unless instructed otherwise by the client. Naturally, rooms in use by the same group for more than one day must also be refreshed and to some extent reset overnight for the following day. • IACC recommends that the designated conference planner or her/his designee attend to any pre - planned needs for more frequent refreshment of meeting rooms by delegating the task to the appropriate person(s) on conference services staff. • IACC recommends that the conference concierge, someone on break service staff, or another conference centre floor staff person be assigned to back-up conference services whenever 0 meeting rooms must be refreshed immediately or because of an emergency. Guest Rooms at Ancillary Facilities According to the Quality Standards (#31), guest rooms must have work areas that include a desk or table with hard writing surface and a comfortable chair; desk or table lighting that is controllable separately from overhead lighting and gives adequate illumination for reading and writing; a phone line and simultaneous high-speed Internet connectivity; and adequate, easily accessible power outlets. In addition, the Quality Standards (#32) stipulate that guest rooms must be separate from conference and leisure areas to allow maximum privacy and comfort. IACC recommends that all guest rooms on site at any complex which includes an ancillary conference centre be fully compliant with the Quality Standards.. Emergency Procedures IACC recommends that every member conference centre have a written Emergency Procedures Plan. Sustainability IACC's Environmental Policy Statement "encourages members to adopt environmentally responsible practices in their business operations." In 2009, IACC approved a Code of Sustainability that lists relevant practices for conference centres. IACC recommends that all members achieve at least 75% of applicable tenets in the Code (the Silver Tier). SANTA CLARITA - CONFERENCE CENTER MASTER PLAN 1� 1; C7 Compliance with New Standards IACC's role is to constantly monitor the quality of all member conference centres. Through this process, IACC continually reviews and strengthens the Quality Standards to ensure an optimal conference experience at all member properties. IACC recommends that members carefully review all changes to the Quality Standards and work aggressively toward compliance. SANTA CLARITA - CONFERENCE CENTER MASTER PLAN LI Appendix E: Abridged List of Pertinent PKF Assignments PKF has a long history of providing consultation to conference and convention centers across the United States. Many of these are much larger projects than the proposed Santa Clarita Conference Center, and many have a hotel component attached or in proximity to the center. Below is a list of conference center projects that PKF has been involved with that have already been built or are in progress. 1. Proposed UCLA Hotel & Conference Center (financing approved by Board of Regents, • SANTA CLARITA - CONFERENCE CENTER MASTER PLAN construction to begin in 2013) 2. Long Beach IAAC Executive Meeting Center (adjacent to the Long Beach Hilton) 3. Pasadena Convention Center Expansion (feasibility analysis) 4. Los Angeles Convention Center (1994 expansion and current proposed expansior along with NFL Stadium) 5. Anaheim Convention Center Expansion 6. San Diego Convention Center (current approved 3`d expansion) 7. Proposed Long Beach Convention Center (many years ago) 8. George R. Brown Convention Center in Houston, Texas 9. American Bank Center in Corpus Christi, Texas 10. Lansdowne Resort and IAAC Conference Center in Leesburg, Virginia 11. Heldrich Hotel and Conference Center in New Brunswick, New Jersey 12. Cheyenne Mountain Conference Center in Colorado Springs, Colorado 13. ACE Conference Center Lafayette Hill, Pennsylvania 14. University Place Conference Center & Hotel Indianapolis, Indiana 15. Edmonds Conference Center in Edmonds, Washington (stand-alone) 16. Marriott Hotel and Cool Springs Conference Center; Cool Springs, Tennessee 17. Marriott Hotel and Conference Center, Norfolk, Virginia 18. Marriott Hotel and Sugarland Conference Center, Sugarland, Texas 19. Princeton Marriott Hotel & Conference Center at Forrestal Princeton, New Jersey 20. Embassy Suites Hotel and Murfreesboro Conference Center, Murfreesboro, Tennessee 21. Emory University Hotel and Conference Center, Atlanta, Georgia 22. Georgia Institute of Technology Hotel and Conference Center, Atlanta, Georgia • SANTA CLARITA - CONFERENCE CENTER MASTER PLAN