Beginning in the 1990s, the City Council recognized the need for additional meeting space in Roseville due to strong economic growth, community and business requests, and the general lack of high-end meeting and full-service lodging facilities. Completion of a full-service hotel and conference center would satisfy an unmet community and business need, and would introduce another important amenity capable of generating significant economic benefit.
On April 18, 2012, the City Council was presented with the findings of a preliminary feasibility and market study for a full-service hotel and conference center in Roseville. The results of the analysis indicated that such a project was potentially feasible under a private/public partnership financing structure and that more detailed study was warranted. In response to these findings, Council directed staff to issue a Request for Proposals (RFP) to identify a development team competent in financing, designing, constructing, and operating hotel and conference centers, particularly those with private/public financing experience. On December 5, 2012, following an extensive recruitment and interview process, the City Council selected P3 International, LLC. as the Hotel & Conference Center RFP finalist and approved an initial pre-project agreement and exclusive right to negotiate with P3 International for potential development and operation of the project.
The project would be located on vacant City-owned property adjacent to the Westfield Galleria Mall and Highway 65, and envisions a 250-room full-service hotel with approximately 20,000 square feet of meeting space comprised of breakout meeting rooms, executive boardrooms, and a ballroom large enough to accommodate approximately 800 seats in a banquet setting.
Public Opinion Survey Results
To understand and quantify the level of community support for the hotel & conference center project, the City retained the services of Fairbank, Maslin, Metz & Associates (FM3) to conduct public opinion research during the week(s) of November 5th and 12th. FM3 conducted random sampling of businesses and residents, and also directly contacted specific businesses based on total employment and type of services provided. Interviews were conducted via telephone and lasted 10 to 12 minutes. The survey results demonstrated strong support, with over 62% of voters and 79% of businesses in support of the project and the City’s pursuit of it. Click here for a complete breakdown of the survey results.
On September 11, 2013, the City Council authorized the City Manager to execute a Phase One Agreement with P3 International, LLC to perform specific exploratory pre-development studies concerning the Hotel & Conference Center project. Among other things, the Phase One Agreement provided for: enhanced schematic design drawings; development of a preliminary guaranteed maximum price (GMP); conference center market study, including a detailed local and regional economic impact analysis; an updated hotel market study; brand and 3rd party operator recruitment; development of an in-depth operating pro forma; and, investigation and development of specific financing vehicles. Preparation of an Environmental Impact Report is also underway.
Deliverables required by the Phase One Agreement have been completed or are nearing completion by the April 11, 2014 due date as follows:
• The architect is finalizing the enhanced schematic design drawings and consulting with the selected general contractor for value engineering opportunities;
• The general contractor was selected and GMP proposal received, subject to brand standards and further value engineering;
• Data collection results of the conference center market study are currently under review (with the economic impact analysis expected in early April);
• An updated hotel market study was performed by PKF, with rate and occupancy projections more favorable than the 2011 study;
• Brand and 3rd party operator recruitments are currently underway, with Requests for Proposals released on both. Selection of the brand and operator is expected to occur in April. The RFP has generated a strong response from the major national full-service hotel chains;
• Discussions are continuing in earnest to determine the most suitable ownership/legal structure and tax status;
• Pro-forma development is underway and will be finalized following validation by the selected brand and 3rd party operator; and,
• The Environmental Impact Report is currently being prepared and is expected to circulate for public review and comment later this spring. Completion is targeted for late June.
Final feasibility studies and the Environmental Impact Report is expected to be presented to the City Council in early Summer for direction to proceed or not proceed with the project.