Memorandum

City of Lawrence

City Manager’s Office

TO:	Mayor and City Commission
FROM:	City Manager, David L. Corliss
DATE:	June 26, 2014
RE:	Conference Center Market Feasibility Study

Background

Earlier this year, the City Commission authorized the distribution of a Request for Proposals for consultant services to study the feasibility of a conference center serving the needs of the Lawrence community and the University of Kansas.  The selection committee composed of representatives from the University of Kansas, the Lawrence Convention and Visitors Bureau, and City staff reviewed the responses, interviewed a selected group of candidates and had a strong consensus for CSL (Convention Sports & Leisure).  The CSL response is attached here.

The CSL team has extensive national experience, local experience (CSL did an economic analysis of KU/City sports village concept in its early stages, Memorial Stadium, Wichita, KCMO), and has a good understanding of City-KU relationships and issues for this analysis.  The City had a good work experience with the lead CSL consultant (Bill Krueger) on the sports project and CSL had good references on a recent check of clients.  The proposed contract would be in phases, with the first phase at $29,000.  The first phase for the consultant work is the market demand analysis – is there a market for a conference center in Lawrence and KU?  This analysis will include a review of our region for competition in this market, possible areas of cooperation between the City and KU, areas were City and KU interests for conference center space may diverge, and other related issues on whether a conference center for Lawrence and KU would be a viable entity.

A number of area communities have moved forward with conference center initiatives, including Manhattan and Olathe.  As we know, visitor spending is an important part of our local economy, providing employment and tax base support.  KU is interested in this issue as part of their long term plans (their recent master plan discussed conference center needs) and there has been local development interest on this topic as well.  Having experienced independent consultation on this issue will be valuable to Lawrence and KU.

KU has agreed to split the first phase 50/50 ($14,500 plus reimbursements) for the first phase budgeted at $29,000.  The City will be the contracting entity for the consultant engagement.  The City share of funding will come from guest tax funds.  

Action

Direct staff to execute an agreement Convention Sports and Leisure for a conference center study, with the first phase engagement limited to $29,000 (plus reimbursements) (University of Kansas to pay 50%).