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Based on the Zuchelli, Hunter development package the upper <br /> limitation of the public funds appears to be about 5.5 million dollars. <br /> The Development Group has recommended to Council a figure of four million <br /> dollars of public involvement. The conference center is considered <br /> vital to this particular facility because of the type of hotel <br /> necessary to work on the downtown location. The hotel would have to <br /> rely heavily on conference and convention business and therefore <br /> a reasonably good conference center, as opposed to a big elaborate <br /> convention center, would he needed. The underground parking would <br /> also be needed on the Vinegar Hill site. The conference center is <br /> estimated to cost in the neighborhood of $2 million; parking about <br /> $2.1 million. The land cost is estimated somewhere around $400,000, <br /> and there is an estimate of $898~000 for open space and public area <br /> that would bring together the hotel and the conference center. There <br /> still is the possibility of bringing office space into this project. <br /> The question is, is the Council interested in providing the public <br /> funding for this project? <br /> <br /> Mr. Van Yahres said that the Development Group felt this project <br /> <br /> was right for the Vinegar Hill site, and that they were proceeding <br /> on that basis. He stated that the charge that Council gave them to <br /> look into economic development for the City as a whole quickly led <br /> the Group to identify Vinegar Hill as a stumbling block for future <br /> economic development. As long as Vinegar Hill site sits vacant, it <br /> is a negative s ~bol. So the Group proceeded with the basic <br /> assumption that it was necessary to develop Vinegar Hill, and <br /> quickly came to the conclusion than the hotel/conference center would <br /> be the number o~e project in a list of priorities, as one of the <br /> best projects f~r the area, for the stimulation of downtown and <br /> <br /> Charlottesville as a whole. The Group has further come to the <br /> conclusion, as ~r. Hendrix has expressed, that the project is not <br /> viable without public funding, and did pass a resolution to the <br /> effect that i~ ~elt $4 million of public funding would be necessary <br /> to make this project! work. Now the Group is asking the Council to <br /> <br /> decide whether ~he public can commit the funding for that sory of <br /> project. <br /> <br /> Mr. Buck asked if Mr. Van Yahres' attitude toward the public <br /> <br /> funding changed at all in light of some of the things that were <br /> <br /> said about the proposed Marriott project. <br /> <br /> Mr. Van Yahres answered that if anything those comments had <br /> <br /> made his view more positive. <br /> <br /> Mr. Buck asked, how the Group arrived at the $4 million ceiling <br /> <br /> as opposed to the original $5.5 million. What was being cut? <br /> <br />Mr. Van Yahres said the consultants had run a proforma on two <br />figures, one assuming hundred percent fund, or $5.5 million and the <br />.~o~ther assuming $4 million in public funds be asked to contribute <br /> <br /> into the project, it was something that could be moved around. He <br /> stressed that these figures are just estimanes and are not concrete <br /> at this point. They are just to get something started. <br /> <br /> <br />