Economic Impact Analysis Study for Vision Iowa Application
CITY OF DUBUQUE, IOWA
MEMORANDUM
August 17, 2000
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT:
Economic Impact Analysis Study for Vision Iowa Application
The Vision Iowa grant application for the America's River project requires an analysis of the
economic impact of the project. Administrative Services Manager Pauline Joyce and the
Work Group established by the Development Agreement, are recommending entering into a
$12,500 contract with QED Consulting of Lakeside Park, Kentucky to perform an economic
impact study. This is the same firm the hotel developer, Platinum Hospitality Group,
retained to do related work on their project.
The cost of the project would be shared with Platinum Hospitality Group, Dubuque County
Historical Society, Dubuque Area Chamber of Commerce, with the City of Dubuque paying
$8,700.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/dd
Attachment
cc:
Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
Pauline Joyce, Administrative Services Manager
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CITY OF DUBUQUE, IOWA
MEMORANDUM
August 16, 2000
TO: Michael C. Van Milligen, City Manager
FROM:
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Pauline Joyce, Administrative Services Manager
I
SUBJECT: Economic Impact Analysis Study for Vision Iowa Application
The Vision Iowa grant application requires an analysis of the economic impact of
the project(s) as defined by the applicant. In order to prepare the necessary
analysis, the Work Group, established by the Development Agreement with
Platinum Hospitality Group, is recommending entering into a contract with QED
Consulting of Lakeside Park, Kentucky to perform this work. This firm was
retained by the Platinum Hospitality Group to do related and somewhat duplicate
analysis for their project. This study would expand upon what has already been
done and would add to the analysis the new conference and education center, the
America's River Project (phase I and II), the new office building, the Riverwalk and
parking addition, and the hotel to provide a combined Vision Iowa Grant impact
assessment. The assessment would be made with and without the affect of the
multiplier impact in order to be responsive to the grant application guidelines.
Attached is an outline of the scope of services to be performed and the proposed
cost of $12,500. The Work Group is proposing the following breakdown for cost
sharing: Platinum Hospitality Group ($1,400 in addition to the $2,000 already paid
for the analysis done earlier under separate contract); Dubuque County Historical
Society ($1,200); Dubuque Area Chamber of Commerce ($1,200); and City of
Dubuque ($8,700) from the Leasehold Improvement CIP.
I am requesting City Council approval to enter into the agreement with our other
partners in order to ensure we can proceed in a timely manner with a Vision Iowa
grant application.
cc: Tim Moerman
Jerry Enzler
Sue Czeshinski
Jim Rix
r
Date
August 15, 2000
Proposal To
City of Dubuque
Dubuque Area Chamber of Commerce
Dubuque County Historical Society
Platinum Hospitality Group
For
Dubuque Combined Projects Impact Assessment
,
Consulting 5en1ces
QED Consulting of Lakeside Park, Kentucky has been requested to submit a proposal to a potential consortium
of project advocates to assess the construction and operational impact of a series of projects in downtown
Dubuque. The consortium could include the City of Dubuque, the Dubuque Area Chamber of Commerce, the
Dubuque County Historical Society and the Platinum Hospitality Group.
QED Consulting proposes to provide consulting services related to the impact of the proposed major downtown
Dubuque projects. These projects include:
· New Conference/Education Center
· New Museum Project (Phases One and Two)
· New Hotel Project
· New Office Building
· Associated public improvements, including parking
These services are intended to estimate the potential construction period and operational period impacts from
these projects. The intent is to document the estimated impacts due to the developments.
The development elements include:
1. The proposed City 110,000 gross square foot ConferenceJEducation Center.
IJ City desires to secure funding for conference/education center from the new State of Iowa Vision Iowa
Fund.
IJ The project as an estimated $30 to $40 million development budget,
IJ Other development projects (Museum and hoteVwater park) could provide necessary local match for the
State ofIowa funding from the Vision Iowa Fund.
2. The Dubuque County Historical Society Museum project estimated at $30 million for Phase One with a
possible Phase Two expansion of approximately $15 million.
3. Construction ofan approximately 50,000 square feet officelretail project.
4. The proposed hotel and water park project adjacent to the ConferencelEducation Center area. The
hoteVwater park project is proposed to consist of two phases:
IJ Phase One
IJ 200 rooms
IJ 24,000 sf indoor water park
o 3 board rooms for meetings
IJ 150 seat bar and grill
IJ 75-80 seat restaurant
o surface parking
IJ Phase Two
0. 150 additional rooms
:;1 18,000 sfwater park addition
5. The possibility exists that a parking garage, with a connector to the proposed hotel, would be constructed in
the future.
QED Consulting would rely on prior studies for data, information and projections related to the feasibility
assessment from the various projects. These include:
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. Data provided by the Dubuque County Historical Society Feasibility Study to estimate construction period
and operational impacts on the local economy
. Data provided by City of Dubuque (or its designee) from the Conference/Education Center Feasibility Study
to estimate construction period and operational impacts from the opening and on-going operation of the
proposed facility.
. Data provided by Platinum Hospitality Group from their Impact Assessment Study to estimate comltruction
period and operational impacts from the opening and on-going operation of the proposed hotel and water
park.
. Information from the office developers as an additional form of data to compile the necessary database for
impact assessment.
With the assembled da~ QED Consulting would:
· Use State ofIowa RIMS II Input-Output coefficients in making the projections of construction and
operational period impacts.
· Estimate tax impacts from the operation of all of the projects.
· Prepare a report with appropriate tables that would provide the City of Dubuque, the Dubuque Area
Chamber of Commerce, the Dubuque County Historical Society and Platinum Hospitality Group with an
understanding of the construction and operational impacts from the projects.
· Provide input into the grant application currently under development to the State of Iowa for funding for a
portion of the projects, contemplating utilization of the private financing commitments as a portion of the
local match for such State of Iowa grants.
Fees
QED Consulting's estimated fee for the assignment is estimated to be $12,500 plus expenses. This fee assumes
that all data would be provided to QED Consulting on a timely basis and that QED Consulting would rely on
such data. State ofIowa Coefficients would be used. The fee contemplates two on-site visits. Additional on-site
visits would be billed at the normal daily rate.
Out-of-pocket expenses, including travel expenses, long-distance telephone service, facsimile transmissions,
overnight deliveries, word processing, photocopying and other miscellaneous expenses, will be billed at cost.
The fees for the project will be billed as follows: forty percent at project initiation, thirty-five percent within
four weeks of acceptance of this proposal and the remainder plus reconciliation of expenses at the conclusion of
the project.
Acceptance
By signing below, client indicates acceptance of this proposal and agreement to its termS and authorizes QED
Consulting to proceed with the proposed assessment.
Client Signature
Date
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