[1. Call to Order / Roll Call]
[00:00:15]
MEETING TO ORDER. I APOLOGIZE FOR RUNNING A LITTLE LATE, BUT I'M CALLING THE PROSPEROUS ZONING AND PLANNING AND ZONING COMMISSION REGULAR MEETING TO ORDER. RIGHT NOW IT IS 6:45 P.M. PLEASE NOTE FOR THE RECORD THAT ALL COMMISSIONERS ARE PRESENT THIS EVENING, EXCEPT FOR COMMISSIONER CARSON AND CHAIRMAN JACKSON. AND SO THEY. BUT WE DO HAVE A QUORUM TONIGHT TO BEGIN WITH. LET ME START WITH THE ADDRESSING. IF TONIGHT WE. IF THE CITIZENS AND OTHER VISITORS WHO ARE ATTENDING THE COMMISSION TONIGHT. LET ME JUST MENTION THAT WE DO OBSERVE THE SAME RULES OF PROPRIETY AND DECORUM AND CONDUCT APPLICABLE TO THE MEMBERS OF THE COMMISSION. SO ANY PERSON MAKING ANY KIND OF DISRUPTIVE REMARKS MAY BE ASKED TO LEAVE AND AND EVERYTHING, BUT WE LOOK FORWARD TO AND APPRECIATE YOUR INVOLVEMENT IN THE MEETING TONIGHT. NEXT ITEM ON THE AGENDA IS THE PLEDGE OF ALLEGIANCE. WOULD YOU PLEASE RISE AND LET'S SAY THE PLEDGE OF ALLEGIANCE? PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. ALL RIGHT. NEXT ITEM IS ITEM AGENDA ITEM
[3. America 250. ]
NUMBER THREE. IT'S AMERICA 250. AND SO IN HONORING THIS BEING THE 250TH ANNIVERSARY OF THE FOUNDING OF AMERICA, WE ARE OBSERVING CERTAIN TOPICS RELATED TO THAT. AND SO TONIGHT, THE TOWN STAFF WILL BE DISCUSSING ONE OF THOSE TOPICS WITH US. THANK YOU. SO THIS EVENING WE'RE JUST GOING TO TOUCH ON FACT VICTORY OF THE UNDERDOG. THE COLONIES WERE CERTAINLY MUCH SMALLER IN SIZE AND POPULATION THAN THEIR FOES. SO THE LAND AREA ENCOMPASSED BY THE COLONIES WAS 430 ZERO ZERO ZERO SQUARE MILES ALONG THE EASTERN COAST, AND THEY WERE UP AGAINST A GLOBAL EMPIRE, AS THOUGH THE POPULATION OF THE COLONIES WAS FAST GROWING, JUST AS WE EXPERIENCED IN PROSPER, INCREASING FROM 2000 TO 2 POINT 5,000,000 IN 150 YEARS, THEY FOUGHT AN ENEMY THAT HAD A GLOBAL POPULATION OF 8 MILLION. THE BRITISH EMPIRE ALONE HAD 2.3 MILLION JUST MILITARY PERSONNEL. TODAY, THE UNITED STATES IS THREE POINT 8,000,000MI■!S, WITH POPULATION OVER 338 MILLION, AND THE MILITARY CONSTITUTING, OR CONSISTING OF 2.8 MILLION PERSONNEL. SO IT'S COME A LONG WAY. YES. THANK YOU FOR THAT.[CONSENT AGENDA]
APPRECIATE THAT. NEXT ITEM ON THE AGENDA IS THE CONSENT AGENDA, AND ITEMS PLACED ON THE CONSENT AGENDA ARE CONSIDERED ROUTINE IN NATURE AND CONSIDERED NON-CONTROVERSIAL, SO THEY CAN BE ACTED UPON IN ONE MOTION. ITEMS MAY BE REMOVED FROM CONSENT AGENDA AT THE REQUEST OF ANY COMMISSION MEMBER OR STAFF MEMBER. IS ANYONE ASKING FOR ANY ITEM BE REMOVED FROM THE CONSENT AGENDA? ALL RIGHT. YOU SEEING NOW ENTERTAIN A MOTION WITH REGARD TO CONSENT AGENDA. I'D LIKE TO MAKE A MOTION TO APPROVE CONSENT AGENDA ITEMS FOR A THROUGH FOUR H. OKAY. SECOND. SECOND. ALL RIGHT. SECONDED BY COMMISSIONER FURY. SO MOTION HAS BEEN MADE TO APPROVE THE CONSENT AGENDA ITEMS FOR A THROUGH FOUR H. ALL IN FAVOR OF THAT MOTION, PLEASE RAISE YOUR HAND. AND THAT MOTION IS UNANIMOUS. FIVE TO NOTHING.NEXT ITEM ON THE AGENDA. OUR CITIZEN COMMENTS PUBLIC IS INVITED TO ADDRESS THE PLANNING AND ZONING COMMISSION ON ANY TOPIC AT THIS TIME. THE. ANY. HOWEVER, WE ARE UNABLE TO DISCUSS OR TAKE ANY ACTION ON A TOPIC THAT'S NOT LISTED ON THE AGENDA. BUT IF YOU'RE WISHING TO ADDRESS THE COMMISSION, WE'D ASK THAT YOU COMPLETE A PUBLIC COMMENT REQUEST FORM THAT'S LOCATED HERE IN THE COUNCIL CHAMBERS ON TOWN WEBSITE ALSO. SO IF YOU'RE ATTENDING IN PERSON, I'D LIKE TO SPEAK TONIGHT. PLEASE SUBMIT THAT FORM TO THE BOARD, CHAIRMAN OR STAFF MEMBER, AND THEN WE'LL CALL YOU TO THE PODIUM. IF YOU ARE SPEAKING, PLEASE LIMIT YOUR COMMENTS TO THREE MINUTES. AND IF MULTIPLE INDIVIDUALS ARE SPEAKING ON THE SAME TOPIC, WE MAY ASK THEM TO LIMIT THEIR THREE MINUTES TO ONE INDIVIDUAL. SO IS THERE ANYONE DO WE HAVE ANY COMMENT CARDS? I DON'T SEE ANYTHING UP HERE. SO ANYTHING ANYBODY IN THE AUDIENCE THAT WOULD LIKE TO SPEAK TONIGHT. EITHER FOR THE NEXT ITEM? OKAY. ALL RIGHT. WE WILL WE WILL DEAL
[5.Conduct a Public Hearing and consider and act upon a request for a Specific Use Permit for a Full-Service/Extended-Stay Hotel on MSW Prosper 380 Addition, Block A, Lot 1, on 5.9± acres, located on the east side of Mahard Parkway and 480± feet south of Prairie Drive. (ZONE-25-0008) ]
[00:05:09]
WITH THAT DURING THE NEXT DISCUSSION. ALL RIGHT. SEEING NONE, WE WILL MOVE ON TO THE REGULAR AGENDA ITEMS. SO THIS IS AGENDA ITEM NUMBER FIVE. WE'RE GOING TO CONDUCT A PUBLIC HEARING. CONSIDER AN ACT UPON A REQUEST FOR A SPECIFIC USE PERMIT FOR A FULL SERVICE EXTENDED STAY HOTEL ON MSW PROSPER 380 EDITION BLOCK A LOT ONE ON 5.9 PLUS ACRES LOCATED ON THE EAST SIDE OF MAYNARD PARKWAY AND 480FT SOUTH OF PRAIRIE DRIVE. THIS IS ITEM ZONED DASH 25-0008. OKAY. THANK YOU COMMISSIONER. ALL RIGHT. SO THE HANDOUT GIVEN TO YOU IS FROM THE APPLICANT, AND I'M SURE THEY'LL KIND OF WALK YOU THROUGH THAT DURING THEIR PRESENTATION, BUT JUST WANTED YOU GUYS TO HAVE THAT. SO THE BACKGROUND FOR THIS CASE IS THAT YOU GUYS HEARD THIS ITEM AT A PREVIOUS COMMISSION MEETING ON THE 25TH OF MARCH.IT WAS UNANIMOUSLY RECOMMENDED FOR DENIAL BY A VOTE OF 6 TO 0. THE ITEM WAS THEN HEARD AT TOWN COUNCIL ON THE 28TH OF APRIL. HOWEVER, IT WAS REMANDED BACK TO THE COMMISSION DUE TO. THERE WAS ADDITIONAL INFORMATION PROVIDED BY THE APPLICANT THAT THE COMMISSION THAT THE COUNCIL EXCUSE ME, FELT LIKE YOU SHOULD BE PRIVY TO AND SHOULD HERE. SO THE PROPOSAL BEFORE YOU TONIGHT IS TO OBTAIN A SPECIFIC USE PERMIT FOR THE CONSTRUCTION OF A 37,753 SQUARE FOOT, FULL SERVICE, LAST EXTENDED STAY HOTEL. THE CURRENT ZONING FOR THIS PROPERTY IS PLANNED DEVELOPMENT 47. IT DOES ALLOW FOR HOTEL USES, PROVIDED THAT THEY MEET THE CONDITIONAL STANDARDS SET FORTH IN THE TOWN ZONING ORDINANCE. FULL SERVICE HOTELS ARE PERMITTED BY RIGHT.
HOWEVER, EXTENDED STAY HOTELS REQUIRE A SPECIFIC USE PERMIT AND THAT IS WHY THIS ITEM IS BEFORE YOU TONIGHT. SO HERE IS THE PROPERTY. IT'S ON THE EAST SIDE OF MAYNARD, LITTLE SOUTH OF PRAIRIE. SO THIS PROPERTY IS IN. WE RECENTLY ADOPTED A VISION PLAN FOR THE DALLAS NORTH TOLLWAY. THIS AREA IS IN THIS. AND IT'S LOCATED WITHIN THE MEDICAL DISTRICT OF THE US.
380 GATEWAY SUBDISTRICT. THE FOCUS OF THE MEDICAL DISTRICT IS HEALTH SCIENCE, RESEARCH AND RELATED EMPLOYMENT AND USES POSITION TO SUPPORT EMPLOYEES AND VISITORS. AND IT ALSO SAYS THAT HOTEL AND OFFICE USES ARE IDENTIFIED AS COMPATIBLE USES WITHIN THIS AREA. SO HERE IS THE CURRENT ZONING MAP PD 47. SO THE CONDITIONAL STANDARDS FOR THE FULL SERVICE HOTEL, THEY'RE REQUIRED TO PROVIDE A MINIMUM OF FOUR OF THESE AMENITIES. THEY HAVE PROVIDED FIVE. THE ONES BOLDED ARE THE ONES THAT HAVE BEEN PROVIDED. IN ADDITION TO THAT, THEY'RE REQUIRED TO PROVIDE EVENT MEETING SPACE AT A MINIMUM OF 10,000FT■!S AND A FULL SERVICE RESTAURANT FOR THE EXTENDED STAY HOTEL. THE CONDITIONAL STANDARDS, IN ADDITION TO THE SPECIFIC USE PERMIT, A MINIMUM OF FIVE AMENITIES ARE REQUIRED. THEY ARE PROVIDED SIX. THOSE HAVE BEEN BOLDED HERE. THE OTHER CONDITIONAL STANDARDS ARE THE LOCATION OF THESE. THERE ARE THREE SPECIFIC LOCATIONS DALLAS PARKWAY, PRESTON ROAD, UNIVERSITY OF DRIVE. HOWEVER, TOWN STAFF IS VIEWING THIS FROM THE POINT OF AS A DUAL SERVICE IN COMBINATION WITH THE FULL SERVICE HOTEL THAT THIS SPECIFIC REGULATION WOULD NOT APPLY. IT'S MORE APPLICABLE TO JUST EXTENDED STAY HOTELS THAT ARE JUST THAT AND NOT HAVE ADDITIONAL COMPONENTS. IN ADDITION TO THAT, THE OPEN SPACE, A MINIMUM OF 15% A RESTAURANT AND THEN THE SETBACKS HAS TO BE AT LEAST 100FT FROM RESIDENTIAL RESIDENTIALLY ZONED PROPERTY.
SO HERE IS EXHIBITS OF IT. SITE PLAN, OPEN SPACE PLAN, LANDSCAPE PLAN ELEVATIONS. SO IN EVALUATING SPECIFIC USE PERMIT REQUEST STAFF HAS A FEW CRITERIA AND EVALUATING THOSE.
I'LL KIND OF BRIEFLY TOUCH ON THOSE. JUST ABOUT IS THE USE HARMONIOUS COMPATIBLE WITH THE SURROUNDING AREA. WE BELIEVE THAT IT IS BECAUSE THERE ARE OTHER USES THAT HAVE THE SAME OTHER HOTELS, AT LEAST WITHIN THE IMMEDIATE AREA, ARE THE ACTIVITIES REQUESTED NORMALLY ASSOCIATED WITH THE USE? WE BELIEVE THAT IT ALSO IS. IT'S PERMITTED IN THE PLAN DEVELOPMENT AND THE CONDITIONAL STANDARDS SET FORTH IN THE ZONING ORDINANCE HAVE BEEN MET.
IS THE NATURE OF THE USE REASONABLE? WE BELIEVE THAT IT IS BECAUSE IT'S PERMITTED USE WITHIN THE ZONING DISTRICT AND HAS THE SURROUND. HAS ANY IMPACT ON THE SURROUNDING AREA BEEN MITIGATED? WE ALSO BELIEVE THAT THAT IT HAS. BECAUSE THE CONDITIONAL STANDARDS HAVE BEEN MET. SO IN CLOSING, WE NOTICED THIS CASE FRIDAY, MARCH 13TH DID NOT RECEIVE ANY RESPONSE, POSITIVE OR NEGATIVE. WE ARE RECOMMENDING APPROVAL OF THIS SPECIFIC USE PERMIT AND SHOULD THERE BE A MOTION OTHER THAN TO TABLE FOR EITHER APPROVAL OR DENIAL, THIS WILL BE SLATED FOR TOWN COUNCIL ON TUESDAY, MAY 19TH. SO I WILL NOW ANSWER ANY QUESTIONS THAT THE COMMISSION
[00:10:06]
HAS FOR ME. COMMISSIONERS, ARE THERE ANY QUESTIONS OF STAFF AT THIS TIME? I DO HAVE A QUESTION.YES, SIR. SO THIS WAS REMANDED TO US BY COUNSEL BECAUSE OF WHAT THEY CALLED NEW INFORMATION. THAT'S CORRECT. CAN YOU CAN YOU SUMMARIZE FOR US WHAT WAS THE NEW INFORMATION TO THE COUNCIL THAT WASN'T PRESENTED TO P AND Z EARLIER? I THINK IT WAS MORE DETAIL IN THE APPLICANT. AND THIS IS THE PRESENTATION THAT THEY'VE GOT QUEUED UP FOR THEM. BUT IT WAS INFORMATION ABOUT MORE IN DETAIL ABOUT THE EXTENDED STAY, THE COST OF CERTAIN ROOM NIGHTS.
I THINK THEY BROUGHT IN PEOPLE ACTUALLY FROM HILTON COMPANY TO SPEAK MORE ON IT. SO JUST MORE DETAILED PRESENTATION THAN WHAT WAS GIVEN AT PNC. SO THE COUNCIL FELT THAT YOU GUYS SHOULD BE SHOULD HEAR THAT AS WELL. OKAY. SO THERE'S, THERE'S NO NEW INFORMATION THAT WOULD MATERIALLY CHANGE THE STAFF'S ANALYSIS UNDER THE. THAT'S THAT'S CORRECT. THE ONLY THING THAT WAS ADDED WAS JUST HOW IT FITS INTO THE VISION PLAN FOR THE TOLLWAY. OKAY. ALL RIGHT.
ALL RIGHT. IF THE APPLICANT IS HERE, WE'D BE GLAD TO HEAR FROM THE APPLICANT. YEAH. PERFECT.
GOOD EVENING. GOOD EVENING. THANK YOU FOR HAVING ME. COMMISSION WEST HOLLYWOOD WITH MASTER PLAN CONSULTANTS. ADDRESS 1341 WEST MOCKINGBIRD LANE, DALLAS, TEXAS. SO I KNOW YOU GUYS DIDN'T GET A LOT OF INFORMATION AT THE FIRST HEARING YOU GUYS WERE AT. SO HOPEFULLY WE'RE GOING TO PROVIDE YOU A LITTLE BIT MORE DETAIL ON THE EXTENDED STAY AS WELL AS THE HILTON GARDEN INN. SO OBVIOUSLY YOU GUYS ARE AWARE OF THE ZONING REQUEST FOR THE SUP FOR THE EXTENDED STAY AND A LITTLE BIT ABOUT THE, YOU KNOW, THE DIFFERENCES OF THE DEFINITIONS WITHIN THE TOWN OF PROSPER. OBVIOUSLY, YOU KNOW, WE DO HAVE THE FULL SERVICE HOTEL WITH THE HILTON GARDEN INN. WE'RE PROVIDING THE RESTAURANT MEETING SPACE 10,000FT■!S. AND THEN WE'RE OBVIOUSLY ASKING FOR THE DUAL HOTEL, THE EXTENDED STAY.
REALLY THE ONLY DIFFERENCE IS THE ABILITY TO STAY A WEEK OR, YOU KNOW, LONGER PERIOD IN THE DEFINITIONS. BUT THOSE RESIDENTS THAT WOULD BE STAYING THERE IN THE EXTENDED STAY, THEY WOULD BE ABLE TO UTILIZE THE FULL SERVICE HOTEL AMENITIES. THEY'RE NOT GOING TO BE EXCLUDED BY ANY MEANS FOR THE RESTAURANT OR ANY OTHER USES ON SITE. SO WE KIND OF SEE IT ALMOST AS JUST ONE HOTEL WITH TWO DIFFERENT BRANDS THAT WE KIND OF SEE AS ONE SIDE HAS SUITES, ONE IS JUST A FULL SERVICE HOTEL. SO WE'RE 1000FT FROM US 380. SO WE'RE A LITTLE BIT OUTSIDE OF THE OF THE NEW VISION PLAN FOR THE AREA, WHICH IS PUTTING THE HOTELS ON 380, BUT WE'RE RIGHT OFF. WE'RE NEAR TWO HOSPITALS JUST TO KIND OF WEDGE IN BETWEEN. YOU KNOW, WE THINK THIS IS A GOOD SITE FOR THIS SINCE THE HOSPITALS WOULD BE A BENEFIT AND USE THE SITE.
WELL, JUST BECAUSE IF YOU HAVE A CHILD OR FAMILY MEMBER WHO'S SICK, YOU NEED TO STAY THERE A LITTLE BIT LONGER THAN YOU MIGHT ANTICIPATE. THIS IS SITE THAT'S OBVIOUSLY CONVENIENT FOR YOU TO BE THERE. THE SITE REALLY ISN'T A GOOD FIT FOR RETAIL USES. IT'S THE WAY IT'S SITUATED IS NOT A LOT OF FRONTAGE BEHIND THE TWO HOSPITALS. IT'S GOING TO BE DIFFICULT TO FIND, AND IT'S KIND OF A SITE LIKE A SELF STORAGE, A HOTEL WHERE YOU KNOW IT'S GOING TO BE, YOU KNOW WHERE YOU'RE GOING TO GO. YOU KNOW, YOU TYPE IN THE ADDRESS ON YOUR PHONE, YOU KNOW, YOU'RE GOING TO GO THERE FOR RETAIL. IT'S NOT, YOU KNOW, AS EASY TO FIND. SO WE THINK THIS IS A GOOD FIT AND DOESN'T REALLY FIT FOR A TYPICAL RETAIL USE. SO A LITTLE BIT MORE ABOUT THE ROOMS. THIS IS ROOMS PER CAPITA. THIS IS BASED ON NATIONAL INFORMATION. 15 TO 20 ROOMS PER 1000 RESIDENTS IS TYPICALLY WHAT A TOWN OR CITY OR RURAL REGION NEEDS. PROSPER RIGHT NOW IS ABOUT A LITTLE SHY OF 50,000. SO THAT WOULD PUT, YOU KNOW, 600 AND 920 ROOMS TO REALLY MEET THE NEEDS OF PROSPER. AND OBVIOUSLY, THIS IS ON THE SOUTH SIDE OF PROSPER, RIGHT NEAR THE FRISCO LINE. SO THAT NUMBER PROBABLY IS A LITTLE BIT HIGHER AND PROJECTED UNDER GROWTH. THESE NUMBERS ARE PULLED FROM THE CITY'S WEBSITE, 9 TO 13% ANNUAL GROWTH RATE. AND BY 2050, YOU GUYS ARE LOOKING AT 72,000 PEOPLE LIVING HERE. SO WE'RE HERE TO TRY TO MEET THOSE NEEDS BEFORE THEY EVEN GET HERE. SO THESE ARE SOME OTHER NEARBY HILTONS. THESE ARE JUST FOR THE MARCH. THIS IS ON THE TEXAS COMPTROLLER'S WEBSITE. THESE ARE JUST FOR THE MONTH OF MARCH OF THIS YEAR, THE HOMEWOOD SUITES. THIS IS DOWN A LITTLE BIT SOUTH IN FRISCO, THE HILTON GARDEN INN ALSO IN FRISCO, AND THEN THE TRUE HILTON IN THE COLONY. THOSE ARE WHAT THEY DO IN A MONTH. 11, TEN, 60 MILES AWAY, THE HILTON GARDEN INN AND HOMEWOOD SUITES IN GRAND PRAIRIE. THAT'S WHAT THEY DID IN MARCH OF THIS YEAR, WHICH IS ASTOUNDINGLY HIGH. I THOUGHT THAT WAS VERY, VERY HIGH. AND WE HAVE A REPRESENTATIVE FROM HILTON. SHE'S GOING TO GO A LITTLE BIT MORE INTO DETAILS ABOUT THAT GRAND PRAIRIE PROPERTY AFTER I WRAP UP MY PORTION. SO SURROUNDING USES, YOU KNOW, OBVIOUSLY WE HAVE THREE, YOU KNOW, REALLY THE TWO HOSPITALS RIGHT THERE, ONES REHABILITATION CENTER. ANOTHER ONE'S A TEXAS FAMILY. CHILDREN'S HEALTH IS JUST DOWN THE STREET. WE'RE KIND OF SITUATED IN BETWEEN SOME USES THAT I WOULDN'T REALLY SEE AS A RIGHT FIT FOR RETAIL. WE THINK IT'S A GOOD ROUNDED USE FOR THE HOTEL. KIND OF NESTLE WENT BACK THERE. PEOPLE KNOW WHERE THEY'RE GOING. SITE PLAN. YOU KNOW, WE'RE OBVIOUSLY PEOPLE WOULD COME INTO THE HOTEL, THEY'D CHECK IN AT THE ONE, YOU KNOW, BOOTH WHERE PEOPLE WOULD SAY, HEY, WE'RE CHECKING IN.
AND THEN THEY JUST ASK YOU WHERE YOU'RE STAYING. THEY WOULD DIRECT YOU TO THE RIGHT.
IF YOU'RE STAYING AT HOME WITH SUITES AND TO THE LEFT IF YOU'RE STAYING IN THE HILTON
[00:15:04]
GARDEN INN, ALL AMENITIES WOULD BE SHARED. OF COURSE, YOU KNOW, USING THE LOBBY, THINGS LIKE THAT, JUST THE LANDSCAPE PLAN AGAIN. AND SO A LITTLE BIT ABOUT THE OPERATIONAL DETAILS, 194 ROOMS TOTAL, MORE GEARED TOWARDS THE HILTON GARDEN INN AND 94 GEARED TOWARDS THE HOMEWOOD SUITES. HILTON GARDEN INN IS, YOU KNOW, HAS THE CONFERENCE ROOM, YOU KNOW, HAS LOTS OF EVENTS YOU CAN DO ON SITE KITCHENS THAT CAN PROVIDE CATERING FOR THESE LARGER EVENTS. THE HOMEWOOD SUITES IS TARGETED TOWARDS THE LENGTHIER STAYS, BUT AVERAGE IS ABOUT FOUR NIGHTS ON ON NATIONAL LEVEL. BUT THOSE ARE MORE GEARED TOWARDS THE BUSINESS TRAVELERS WHO I CAN TALK ABOUT IN A LITTLE BIT. AND THESE HAVE KITCHENETTES. JUST MAKE YOUR STAY A LITTLE BIT MORE COMFORTABLE. IF YOU'RE LOOKING TO BE IN TOWN FOR A COUPLE MORE DAYS THAN JUST A STANDARD HOTEL ROOM LIKE YOU'D FIND IN HILTON GARDEN INN. SO THESE ARE ABOUT AVERAGE OF WHAT YOU SEE. LIKE I SAID BEFORE, FOUR NIGHTS IS, IS THE AVERAGE STAY STANDARD ROOM PRICING 2 TO 300 A NIGHT. YOU KNOW, IF IT'S A PEAK PRICING, SAY AROUND HOLIDAYS OR LARGE EVENTS THAT ARE GOING ON, IT'S GOING TO BE A LITTLE BIT MORE OBVIOUSLY, CORPORATE CRIME TELL WE DON'T REALLY HAVE WEEKLY RATES. IT'S YOU GET A DISCOUNT ESSENTIALLY IF YOU STAY A LITTLE BIT LONGER, LIKE YOU WOULD FOR A LOT OF DIFFERENT HOTELS OR, YOU KNOW, ANY SORT OF SERVICE LIKE THAT. AND SO THESE ARE SOME OF THE KEY ACCOUNTS THAT I IDENTIFIED. I DIDN'T KNOW A LOT OF THE COMPANIES, I KNEW THESE COMPANIES, BUT I DIDN'T KNOW THE WHOLE LIST THAT I WAS PROVIDED. SO THESE ARE THE ONES THAT REALLY JUMPED OUT TO ME AND OBVIOUSLY WERE RIGHT NEAR FORD. IKEA'S DOWN THE LANE. THESE ARE ALL UP IN THE COLLIN COUNTY REGION. AND SO IF THE OTHER HILTON'S ARE FULL, THESE ARE COMPANIES AND CLIENTELE WHERE THEY HAVE AN ACCOUNT WITH HILTON AND THEY STAY AT HILTON'S, YOU KNOW, REGARDLESS OF WHERE THEY ARE, IF THEY'RE FULL IN THE COLONY IN FRISCO, THEY WOULD MOVE UP TO PROSPER, TO STAY AT THIS LOCATION, SINCE THAT'S KIND OF THE ACCOUNT. I HAD THIS SITUATION WITH MY PREVIOUS COMPANY. SO OUT OF TOWN CLIENTELE, LIKE I SAID, CORPORATE CLIENTS, YOU'RE LOOKING AT SPORTS TOURNAMENTS, PEOPLE THAT DON'T WANT TO EAT OUT EVERY SINGLE NIGHT. THEY HAVE A BUNCH OF KIDS. YOU NEED THEM ALL FIT IN ONE ROOM. RELATIVES, THEY'RE HERE FOR HOLIDAYS. YOU KNOW, I KNOW THAT, YOU KNOW, SOME PEOPLE CAN FIT A HOUSE FULL OF TEN, 15 PEOPLE. I PERSONALLY CAN'T. THAT'S NOT REALLY SOMETHING I'M SUPER INTERESTED IN. AND MY HOUSE ISN'T THAT BIG. SO, YOU KNOW, THIS WOULD BE A GOOD FIT FOR VISITING OUT OF TOWN. I HAVE FAMILY ALL ACROSS THE COUNTRY. FUTURE RESIDENTS IS WHAT WE SEE HAPPEN AS WELL. PEOPLE LOOKING AT PROSPER TO MAKE IT THEIR NEW HOME. THEY NEED TO LOOK AT DIFFERENT NEIGHBORHOODS. THEY NEED TO MEET WITH THEIR REALTOR. THEY NEED TO EXPLORE THE TOWN A LITTLE BIT MORE THAN THEY WOULD JUST COMING IN ONE DAY AND LOOKING, AND THEN VISITORS. OBVIOUSLY, THE FUTURE ENTERTAINMENT USES THE PGA, UNIVERSAL FC, DALLAS. THESE ARE ALL VERY CLOSE PROXIMITY TO THIS LOCATION, LOCAL CLIENTELE AS WELL. YOU KNOW, THAT'S ACTUALLY ONE OF THE LARGEST USERS OF THIS SITE IS FOR RESIDENTS OF PROSPER THAT MIGHT HAVE AN INCIDENT AT THEIR HOME, FLOODING, FIRE DAMAGE, SOMETHING LIKE THAT. THEY NEED BUY INSURANCE. THEY HAVE TO BE PUT IN PLACE IN A NEARBY HOTEL, HAVE THE AMENITIES SUCH AS, YOU KNOW, LAUNDRY SERVICES, A KITCHEN, A FULL FRIDGE IN ORDER TO SERVICE, YOU KNOW, THEIR NEEDS. AND OBVIOUSLY FOR THE HOSPITAL STAYS. THESE ARE THE FOUR HOSPITALS THAT ARE WITHIN TWO WITHIN A HALF MILE, ONE MILE TO BAYLOR, SCOTT AND WHITE JUST DOWN THE STREET STAYCATIONS. MY NIECE ASKED FOR THAT FOR HER BIRTHDAY THIS YEAR. SHE WANTED TO STAY IN A HOTEL. THAT WAS A BIG DEAL FOR HER.SHE'S 12. SHE REALLY LIKED THAT. WEDDINGS, CONFERENCES, OF COURSE, AND THESE ARE A LITTLE BIT MORE ABOUT THE ROOMS, AND I'M GOING TO HAND THIS OVER TO WHITNEY WITH HILTON, AND SHE CAN KIND OF GO INTO MORE DETAILS ON THIS. AND THEN SHE'S GOT A COUPLE MORE SLIDES AS WELL. THANK YOU. GOOD EVENING, AND THANK YOU FOR THE OPPORTUNITY TO REVISIT THIS PROJECT. MY NAME IS WHITNEY KNIGHT. I'M HERE WITH HILTON'S GLOBAL BRAND LEADERSHIP TEAM ON BEHALF OF HOMEWOOD SUITES. WE ARE SO EXCITED ABOUT THE OPPORTUNITY TO BRING BOTH OF THESE BRANDS, HILTON GARDEN INN AND HOMEWOOD SUITES, TO PROSPER. TODAY. ACTUALLY, THE DEMAND AND PROSPER SERVICE BY OUR PRODUCTS IN FRISCO. SO WE KNOW THAT THERE IS A REAL NEED FOR THIS LEVEL OF HOSPITALITY IN THIS COMMUNITY. A LITTLE BIT ABOUT HOMEWOOD IN 2021, THE BRAND WENT THROUGH A LARGE REFRESH PROCESS, DEVELOPED A COMPLETELY NEW DESIGN AND PROTOTYPE. SO THOSE ARE THE ROOMS THAT YOU WILL SEE REPRESENTED HERE TONIGHT, STARTING WITH OUR KING EFFICIENCY SUITE. THIS IS 358FT■!S. YOU WILL NOTICE AS WE LOOK AT THESE ROOM TYPES, ALL OF THE ROOMS ARE SUITES AND ALL OF THEM HAVE A FULLY EQUIPPED FULLY STOCKED KITCHEN. SO THAT IS REALLY ONE OF THE THINGS THAT SETS THIS BRAND APART AND IS CONSISTENTLY A WOW FACTOR FOR OUR GUESTS. STUDIO SUITES IS A LITTLE BIT MORE OF A TRADITIONAL LAYOUT, ALSO INCLUDES A SLEEPER SOFA. SO AGAIN, VERY POPULAR WITH FAMILIES WHO ARE TRAVELING WITH YOUNG CHILDREN, GIVES YOU A LOT OF EXTRA SPACE AND A LOT OF EXTRA OPTIONS. AND THEN FOR OUR INSURANCE BUSINESS, WHICH OUR SINGLE LARGEST SOURCE OF BUSINESS FOR HOMEWOOD SUITES, OUR ONE BEDROOM KING SUITES, AND IN OUR NEWEST PROTOTYPE DESIGN, YOU'LL SEE THAT WE'VE ELEVATED NOT JUST THE DESIGN AND THE PRODUCT, BUT ALSO THE AMENITIES WE NOW OFFER IN SUITE LAUNDRY. SO THIS IS REALLY LIKE A HIGH END CONDO. THE RATES FOR THIS ROOM TYPE ARE SIGNIFICANTLY HIGHER THAN WHAT YOU WOULD SEE IN OTHER PRODUCTS. SO THIS IS AGAIN, REALLY
[00:20:03]
DESIGNED TO SERVICE RE CORPORATE RELOCATIONS AND INSURANCE BUSINESS. YOU COULD AFFORD A VERY, VERY NICE MORTGAGE. INSTEAD OF SPENDING A FULL MONTH HERE ON YOUR OWN DIME. QUICK PEEK OF WHAT OUR LOBBY AREA LOOKS LIKE. AND THEN THE FRONT DESK, VERY OPEN, VERY ELEVATED, BEAUTIFUL RETAIL POSITIONING AND A LITTLE BIT MORE ABOUT HOMEWOOD. WE ARE PART, OF COURSE, OF HILTON'S GLOBAL PORTFOLIO THAT MAKES UP MORE THAN 25 BRANDS TODAY.AGAIN, THE BRAND WAS FULLY REFRESHED IN 2021. SO IF YOU HAVEN'T STAYED WITH US IN A WHILE, YOU SHOULD CHECK US OUT. DALLAS, OF COURSE, IS ONE OF THE FASTEST GROWING MARKETS FOR US IN THE COUNTRY, AND HOMEWOOD SUITES IS ACTUALLY ONE OF HILTON'S FASTEST GROWING BRANDS.
SO AGAIN, A VERY POWERFUL COMBINATION. WE ARE WHAT WE CONSIDER ALL SUITES OR UPSCALE EXTENDED STAY. TODAY. THE EXTENDED STAY SEGMENT INCLUDES A WIDE VARIETY OF CONCEPTS AND BRANDS RANGING FROM THINGS LIKE EXTENDED STAY AMERICA IN WOOD SPRINGS THAT MANY PEOPLE MAY BE FAMILIAR WITH, ALL THE WAY UP TO THE UPSCALE ALL SUITES PRODUCTS LIKE HOMEWOOD SUITES OR OUR DIRECT COMPETITION RESIDENCE INN BY MARRIOTT. THERE WERE A COUPLE OF THINGS THAT ARE VERY DISTINCT IN IN KIND OF ESTABLISHING THOSE DIFFERENT ENDS OF THAT EXTENDED STAY SPECTRUM. SO OF COURSE, THE AVERAGE DAILY RATE THAT GUESTS PAY IS ONE OF THE BIGGEST ONES. RATES FOR HOMEWOOD SUITES CAN RANGE UP TO 200, 300, $400 A NIGHT. SO A SIGNIFICANT INVESTMENT. THERE'S ALSO THE QUALITY OF PRODUCT AND THE ACTUAL LEVEL OF INVESTMENT IN THAT PRODUCT. SO IN THE ECONOMY SPACE, THOSE PRODUCTS TYPICALLY ENTAIL AN INVESTMENT OF 11 TO $15 MILLION. THIS PROJECT IS COMING IN CLOSE TO $50 MILLION. SO A SIGNIFICANT DIFFERENCE IN TERMS OF THE QUALITY THAT WE BRING TO MARKET. AND THEN THE LAST DIFFERENCE IS THE LENGTH OF STAY AS YOU GO DOWN IN RATE. OF COURSE, THAT LENGTH OF STAY FOR THE GUESTS TENDS TO GO UP. WHILE WE DO PLAY IN THE EXTENDED STAY SPACE, WE TEND TO THINK OF THAT AS KIND OF THAT FIVE PLUS NIGHTS RATHER THAN A MULTIPLE MONTH STAY. OF COURSE, I SET SHARED HOMEWOOD SUITES. WE TURNED 37 THIS YEAR AND I THINK WE LOOK PRETTY GOOD FOR OUR AGE. WE ARE A HIGHLY TRUSTED BRAND. WE ARE REGULARLY RECOGNIZED BY THE INDUSTRY AS BEING ONE OF THE BEST UPSCALE PRODUCTS. SO WHAT MAKES HOMEWOOD SUITES AN UPSCALE ALL SUITES BRAND? I TOUCHED ON THIS A LITTLE BIT, BUT ABOUT 38% OF OUR AVAILABLE ROOMS ON ANY GIVEN NIGHT ARE COMING FROM THAT FIVE PLUS BUSINESS, AND THAT BUSINESS AVERAGES US AROUND $150 ACROSS THE BOARD IN A MARKET LIKE PROSPER WITH A NEW PRODUCT, OF COURSE, THAT RATE WOULD BE MUCH HIGHER. AND THEN MOST IMPORTANTLY AGAIN, THOSE ADDITIONAL AMENITIES THAT WE OFFER TO GUESTS THAT FULLY STOCKED KITCHEN, AMPLE LIVING SPACE, OUTDOOR SPACE, AND OF COURSE, GUEST LAUNDRY FACILITIES, BOTH PUBLIC ONES IN THE HOTEL AS WELL AS IN THOSE ONE BEDROOM SUITES. YOU'VE GOT YOUR ENSUITE LAUNDRY FOR A MORE RESIDENTIAL EXPERIENCE. SO WHO ARE OUR GUESTS? OVER 60% OF HOMEWOOD SUITES GUESTS TODAY ARE ACTUALLY BUSINESS TRAVELERS, SO THAT INCLUDES GOVERNMENT, BUSINESS, PROJECT TRAVEL, OF COURSE, CORPORATE RELOCATION.
AND AGAIN, MOST IMPORTANTLY OUR INSURANCE BUSINESS. THAT BUSINESS IS ACTUALLY SERVED 24 OVER SEVEN BY A TEAM HERE IN ADDISON, TEXAS. SO WHEN STATE FARM CALLS THEM, THEY PLACE THAT FAMILY IN A HOTEL WITHIN 15 MINUTES. AND THAT'S SOMETHING WE'RE REALLY, REALLY PROUD OF. OVER 400 MILLION AMERICANS WILL HAVE A HOMEOWNER, A HOME INSURANCE CLAIM IN ANY GIVEN YEAR. AND OVER 40 MILLION AMERICANS RELOCATE EACH YEAR. OVER 80% OF OUR GUESTS AT HOMEWOOD SUITES ARE HILTON HONORS MEMBERS, WHICH IS ACTUALLY THE HIGHEST RATE IN THE ENTIRE HILTON ENTERPRISE. SO REALLY REPRESENTING SOME OF OUR MOST VALUABLE GUESTS WITHIN THE HILTON PORTFOLIO. AND THEN IN ADDITION TO OUR BUSINESS TRAVEL, OF COURSE, WE ARE ALWAYS A POPULAR CHOICE FOR FAMILIES. THAT COMBINATION OF THE ADDITIONAL SPACE, OUR SIGNATURE COMPLIMENTARY BREAKFAST, OUTDOOR SPACE, IT REALLY, REALLY CREATES A GREAT VALUE FOR FAMILIES, PARTICULARLY IN A DESTINATION LIKE PROSPER, WHERE YOU'LL HAVE PEOPLE COMING IN TO ENJOY UNIVERSAL AND SOME OF THE OTHER GREAT THINGS IN THE AREA. THIS IS ALWAYS VERY IMPORTANT TO US AT HILTON AS WE PARTNER WITH OWNERS AND INVESTORS, WE WANT TO MAKE SURE THAT WE ARE PROTECTING THE ASSET THAT WE ARE BRINGING INTO THE MARKET, AS WELL AS OUR OWN BRAND INTEGRITY. THIS IS VERY UNIQUE TO HILTON. WE CONDUCT ANNUAL QUALITY ASSURANCE INSPECTIONS OF EVERY PROPERTY IN OUR SYSTEM. THOSE ARE IN PERSON AND THEY ARE DONE BY HILTON EMPLOYEE. THERE ARE A LOT OF OTHER HOSPITALITY COMPANIES THAT OUTSOURCE THAT PROCESS. WE TAKE IT VERY SERIOUSLY. WE ALSO REQUIRE REINVESTMENT IN OUR HOTELS THROUGH RENOVATIONS AND THROUGH CAPITAL CONDITIONS. AND THAT TYPICALLY TAKES PLACE
[00:25:02]
EVERY 7 TO 10 YEARS. THE PROJECT HERE HAS BEEN LICENSED AS A DUAL LICENSE HILTON GARDEN INN AND HOMEWOOD SUITES FOR APPROXIMATELY 20 YEARS. SO IT WOULD GO THROUGH TWO MAJOR RENOVATIONS IN THAT TIME PERIOD. AND THEN LASTLY, WHAT DO WE MEAN FOR YOUR COMMUNITY? WE ARE REALLY PROUD AT HILTON TO BE THE BEST HOSPITALITY COMPANY IN THE WORLD TO WORK FOR IN THE NUMBER TWO, BEST PLACE TO WORK IN THE WORLD. HOSPITALITY CAREERS ARE STILL AN INCREDIBLE PLACE FOR PEOPLE TO GROW THEIR PROFESSION, WHETHER IT'S THROUGH OPERATIONS OR SALES. SO WE ARE ALWAYS EXCITED WHEN WE GET TO SEE OUR TEAM MEMBERS GROW AND DEVELOP WITH US. AND THEN AGAIN, WE'VE MENTIONED THIS IS A DUAL PROPERTY. SO WHAT DOES THAT MEAN? IF YOU'RE HILTON GARDEN INN AND HOMEWOOD SUITES, THESE ARE SOME EXAMPLES OF WHAT THAT LOOKS LIKE IN A MARKET. IT'S VERY COMMON IN THAT INDUSTRY TODAY BECAUSE IT REALLY HELPS US MAXIMIZE REAL ESTATE VALUE, PARTICULARLY GIVEN THE INTEREST RATE ENVIRONMENT WHERE ALL WE HAVE BEEN ENJOYING FOR THE LAST FIVE YEARS. THIS IS AN EXAMPLE OF OUR HILTON GARDEN INN HOMEWOOD IN DOWNTOWN SAN DIEGO, AS WELL AS OUR HAMPTON INN AND HOMEWOOD SUITES IN BOSTON SEAPORT. OUR DUAL BRANDED PROPERTIES ARE IMPORTANT FOR A COUPLE OF REASONS. OUTSIDE OF THAT REAL ESTATE ELEMENT, THEY ALSO HELP US DELIVER A BETTER GUEST EXPERIENCE. OUR DUAL PROPERTIES CONSISTENTLY HAVE HIGHER GUEST STAY SCORES AND EXPERIENCE SCORES THAN OUR STANDALONE PROPERTIES, AND THAT'S BECAUSE IT'S ALLOWING GUESTS TO HAVE GREATER, GET GREATER CHOICE AND CONTROL, AND TO REALLY GET THE BEST OF BOTH WORLDS, AS WELL AS AN EXCEPTIONALLY ELEVATED AMENITY PACKAGE. I KNOW WES MENTIONED THIS, OUR DUAL BRAND IN GRAND PRAIRIE IS ANOTHER ONE WE'RE VERY PROUD OF HERE. SO SIMILAR COMBINATION HERE OF THAT HILTON GARDEN INN AND HOMEWOOD, ANCHORED BY A LOT OF GREAT MEETING SPACE AND SOME REALLY BEAUTIFUL OUTDOOR ACTIVATIONS AS WELL. WELL PLACED IN EPIC CENTRAL. THIS IS A PEEK OF WHAT THOSE HOMEWOOD SUITES ROOMS LOOK LIKE, AS WELL AS THE BAR AND POOL AREA AND THE MEETING SPACE AND RESTAURANT. SO THAT IS EVERYTHING THAT WE HAVE FORMALLY PREPARED TONIGHT. BUT AGAIN, THANK YOU SO MUCH FOR THE OPPORTUNITY TO REVISIT THIS PROJECT. WE ARE REALLY EXCITED ABOUT OUR FUTURE HERE IN PROSPER. OKAY. THANK YOU. THANK YOU VERY MUCH FOR YOUR PRESENTATION. COMMISSIONERS. ARE THERE ANY QUESTIONS FOR THE APPLICANT AT THIS TIME? WELL, I, I HAVE SEVERAL QUESTIONS, SO LET ME I'LL JUST I'LL START AND IT MAY ENGENDER MORE QUESTIONS AND EVERYTHING. FIRST OF ALL, THE ONE OF THE REQUIREMENTS IS FOR A RESTAURANT AND EVERYTHING.I DON'T SEE ON THE PLANS THAT ARE DRAWN, THE DRAWN PLANS. I DON'T SEE ANYTHING LABELED RESTAURANT. WHERE IS THE RESTAURANT IN HERE. IS IT THE CONFERENCE? IS THAT THE CONFERENCE AREA OR. THAT WOULD BE ONE MOMENT. LET ME GET BACK TO THAT. THAT'S GOING TO BE BECAUSE YOU CAN SEE THE OUTDOOR AREA OVER THERE. IT'S IT'S TECHNICALLY IT'S GOING TO BE RIGHT IN THAT DIVIDING LINE IS, IS KIND OF WHERE THAT WOULD BE, WHERE THE RESTAURANT WOULD BE.
CORRECT ME IF I'M WRONG ON THAT. IS THAT CORRECT? YEAH. NEIL, I'M BRINGING THAT UP. OKAY. HE DESIGNED THE PLANS. HE CAN GIVE ME A BETTER ANSWER. BUT. THIS RESTAURANT IS RIGHT THERE AT THE CENTER. IF YOU SEE THAT LINE THAT'S DIVIDING HILTON GARDEN INN AND HOMEWOOD SUITES.
OKAY, IT'S RIGHT ABOVE THAT. THAT'S THE FULL SERVICE RESTAURANT. FULL SERVICE. HOW MANY SEATS IS THAT? HOW LARGE IS THAT? SORRY. HOW MANY PEOPLE? YEAH. HOW LARGE IS THAT RESTAURANT? THAT RESTAURANT IS ABOUT 1500FT■!S. WE HAVE TWO RESTAURANTS. WE HAVE THE RESTAURANT ON THE HOMEWOOD SIDE ALSO. AND WHERE IS THAT? OKAY, I DIDN'T IS THAT. YEAH. WHERE IS THAT? IT'S. IT'S WE WE SEE THE GAME ROOM. IT'S RIGHT IN FRONT OF THAT. OKAY. IN FRONT OF THAT. OKAY. NOW THAT'S JUST A BREAKFAST AREA. YES. BREAKFAST. SO IT'S NOT, IT'S NOT, IT'S NOT A I MEAN, IT'S THE NORMAL BREAKFAST FOR LIKE A HAMPTON INN'S BREAKFAST KIND OF AREA. IS THAT WHAT THAT WOULD BE? THE FULL SERVICE RESTAURANT IS ON THE HILTON SIDE. YES.
YEAH. THAT WOULD BE THE BREAKFAST SERVING AREA FOR HOMEWOOD, WHICH THAT'S WHY WE'RE NOT CLASSIFIED AS THE FULL SERVICE. OKAY. AND SO OUR HOMEWOOD SUITES GUESTS ABLE TO UTILIZE THE RESTAURANT ON THE HILTON GARDEN INSIDE. YES. THAT'S RIGHT. RIGHT. THEY HAVE ACCESS TO THAT AS WELL. YEAH. ALL THE AMENITIES ARE SHARED. AND THAT'S A THREE THAT'S THREE MEALS A DAY AT THAT FOR SERVICE. AND RIGHT NEXT TO THE RESTAURANT BEHIND THAT RESTAURANT IS A KITCHEN, FULL SERVICE KITCHEN FOR THE CATERING FOR THE CONVENTION CENTER, THE MEETING SPACE, THE CONFERENCE CONFERENCE AREA IS THAT IS THAT RESTAURANT OPEN TO
[00:30:06]
JUST THE GENERAL PUBLIC OR IS IT ONLY FOR GUESTS? IF YOU WANTED TO GO, YOU ABSOLUTELY COULD GO. OKAY. YEAH. IT'S NOT LIKE TIED TO THE ROOM FEES. YOU CAN PAY WITH CARD OR CASH OR ANYTHING LIKE THAT. OKAY. ALL RIGHT. GREAT. AND THEN IF I'M LOOKING AT THIS CORRECTLY, THERE'S ONLY ONE MAIN ENTRANCE INTO THIS FACILITY, RIGHT? THERE'S NO GARDEN IN THE HOMEWOOD SUITES ENTRANCE. ALSO ON THE. NORTH SIDE. IN THE EAST SIDE. WELL, I GUESS A MAIN ENTRANCE WITH A. ONCE YOU CHECKED IN, THEN YOU CAN. THOSE ARE KEY KEY ENTRANCES THAT YOU.OKAY. RIGHT. I CAN SHOW YOU RIGHT HERE. SO THIS WOULD BE THAT THAT IS THE CHECK IN STATION FOR BOTH FOR ONE CHECK IN STATION, CORRECT? YES. YOU JUST SAY WHICH ONE YOU'RE STAYING IN AND THEY CAN DIRECT YOU TO THE RIGHT OR TO THE LEFT, WHICHEVER HOTEL. OKAY. AND SO THERE'S, THERE'S ONE MAIN. I KNOW THERE'S MULTIPLE ENTRANCES, BUT THERE'S ONE MAIN ENTRANCE, ONE CHECK IN PLACE THAT SERVES BOTH, BOTH SIDES, BOTH, BOTH BRANDS. OKAY. HOW, HOW EXPLAIN TO ME THOUGH, IN THIS DUAL PROJECT, HOW THE, HOW THE FULL SERVICE COMPONENTS AND THE EXTENDED STAY COMPONENTS, HOW DO THEY OPERATE TOGETHER ON A DAY TO DAY BASIS? WHAT LIKE, HOW ARE HOW ARE THEY INTEGRATED? HOW ARE THE FULL SERVICE COMPONENTS INTEGRATED INTO THE EXTENDED STAY OPERATIONS? YEAH. SO WITHIN HILTON FOR DUAL BRANDED PROPERTY LIKE THIS, WE ACTUALLY HAVE A SINGLE GENERAL MANAGER RUNNING THE ENTIRE HOTEL. SO SAME HOUSEKEEPING TEAM, SAME FRONT OFFICE TEAM, SAME SALES TEAM, SAME CATERING AND FOOD AND BEVERAGE TEAMS. AND THEY ARE SHARING ALL OF THAT. THE ONLY LIKE DIFFERENCES THAT REALLY KIND OF HAPPEN OPERATIONALLY WOULD BE LIKE THE BACK END THINGS THAT WE DO IN TERMS OF ACCOUNTING AND SOME OF THE PROPERTY MANAGEMENT AND RESERVATION SYSTEMS THAT ALLOW US TO MAKE SURE WE'RE PLACING A GUEST IN THE APPROPRIATE ROOM. SO THAT'S PROBABLY REALLY THE BIGGEST THING FOR GUESTS.
THAT'S JUST A VERY COHESIVE EXPERIENCE, PARTICULARLY, LET'S SAY YOU WERE HOSTING A WEDDING ON PROPERTY. YOU COULD DO A BLOCK OF ROOMS AT THE HILTON GARDEN INN AND A BLOCK OF ROOMS AT THE HOMEWOOD, AND GIVE YOUR GUESTS KIND OF THAT THOSE OPTIONS RATHER THAN CONTRACTING WITH TWO DIFFERENT HOTELS. ALL RIGHT. SO FOR A GUEST, THEN THEY REALLY THE EXPERIENCE THERE IS AS THOUGH IT'S ONE HOTEL. YES. CORRECT. I WOULD SAY ACTUALLY THE BIGGEST DIFFERENCE IS OUR HILTON GARDEN INN GUEST, BECAUSE THAT IS MORE OF A FULL SERVICE STYLE OF A HOTEL. YOU DO PAY FOR BREAKFAST, WHEREAS HOMEWOOD, WE OFFER FULL COMPLIMENTARY BREAKFAST.
TYPICALLY WHEN WE DO A PROJECT LIKE THAT, WE HAVE LIKE THAT DEDICATED HOMEWOOD FOOD AND BEVERAGE AREA YOU SAW, AND THAT'S USUALLY KEY CARD ACCESS FOR HOMEWOOD GUESTS. SO THERE'S A LITTLE BIT OF A DYNAMIC THERE IN TERMS OF THE BREAKFAST SERVICE, BUT THE OUTDOOR POOL AND THE SPORTS COURTS AND ALL THOSE THINGS ARE AVAILABLE TO ALL GUESTS. BOTH, BOTH. THAT'S CORRECT. OKAY. ALL RIGHT. AND HOW ARE THE RATES? I THINK YOU MENTIONED THIS, BUT I WASN'T I DIDN'T QUITE UNDERSTAND IT. FOR THE EXTENDED STAY SITE. HOW ARE THE RATES DETERMINED? ARE THEY A NIGHTLY OR WEEKLY. THEY'RE NIGHTLY AND ACROSS THE BOARD. HILTON PRICE IS BASED ON VOLUME OF THE ACCOUNT RATHER THAN LENGTH OF STAY TYPICALLY. SO WEST SHARED SOME OF THOSE LARGE ACCOUNTS WITH YOU. IF WE WERE TO TAKE AMAZON, FOR EXAMPLE, RIGHT, WE WOULD PRICE BASED OFF OF THE VOLUME OF BUSINESS WE RECEIVE FROM AMAZON RATHER THAN THE LENGTH OF STAY, IF THAT MAKES SENSE. SO WE'RE LOOKING ACROSS THAT ENTIRE HILTON ECOSYSTEM AT KIND OF GLOBALLY, THE BUSINESS THAT'S COMING INTO THE HOTELS AND THE SIZE OF THAT CUSTOMER. THEN ON THE OTHER HAND, EVERY HOMEWOOD SUITES AND HILTON GARDEN INN ALSO HAS A DEDICATED ON PROPERTY SALES TEAM THAT'S LOCAL IN THE MARKET, AND THEY'RE RESPONSIBLE FOR MANAGING THE LOCAL NEGOTIATED RATES FOR THINGS, AGAIN, LIKE WEDDINGS OR LIKE THE LOCAL HOSPITAL ACCOUNT. OKAY. SO SO YOU DON'T ADVERTISE HOMEWOOD SUITES RATES ON A WEEKLY BASIS. THEY'RE ADVERTISED AS A NIGHTLY BASIS. OKAY. OKAY, GREAT. NOW I WASN'T, I WAS A LITTLE CONFUSED ON THE STANDARD ROOM PRICING THAT YOU SAID FOR, AND I'M MOSTLY INTERESTED IN THE HOMEWOOD SUITES SIDE BECAUSE YOUR HANDOUT, YOUR, YOUR PRESENTATION SAID 2 TO $300 A NIGHT SOMEWHERE ELSE. IT SAID THE AVERAGE DAILY RATE IS $158.47. AND THEN SOMEWHERE ELSE, IT SAID IT WAS $148.12.
SO HELP ME UNDERSTAND WHAT WHAT IS WHAT DO YOU EXPECT AT HOMEWOOD SUITES HERE TO BE THE AVERAGE RATE. SO IN PROSPER, WITH THE NEW PRODUCT OF THIS MAGNITUDE, WE'D BE LOOKING AT RATES IN EXCESS OF $200 A NIGHT. THOSE OTHER FIGURES ARE WHAT WE DO GLOBALLY ON THE BRAND ACROSS THE BRAND AVERAGE. SO THAT INCLUDES, YOU KNOW, SMALL MARKETS, SMALLER HOTELS THAT ARE MAYBE 75 KEYS VERSUS THIS ONE. THAT'S ALMOST 200 KEYS. SO VERY DIFFERENT MARKET DYNAMICS.
[00:35:05]
OKAY, GREAT. AND THEN WITH REGARD TO LET ME GO BACK TO YOUR BRAND STANDARDS AND, AND SO FORTH, THE FIRST OF ALL, IS, IS YOUR PROPERTY, IS IT MANAGED CORPORATELY OR ARE YOU FRANCHISE IT IS IT THIRD PARTY OPERATED, FRANCHISED. SO THERE'S A LICENSE HAS ALREADY BEEN SIGNED AND GRANTED FOR BOTH OF THESE HOTELS, LOCALLY SEPARATE FRANCHISES FOR EACH.YES. OKAY. AND YOU MENTIONED THAT YOU HAVE ANNUAL INSPECTIONS OF EACH ONE TO ENSURE BRAND COMPLIANCE. THAT'S CORRECT. IN TERMS OF FACILITY APPEARANCE AS WELL AS OPERATIONS OR OPERATIONS, THE CONDITION OF THE HOTEL AND THE OVERALL PERFORMANCE. SO THAT AUDITOR WILL AUDIT THIS ENTIRE COMPLEX. EACH PART OF THE COMPLEX WILL RECEIVE ITS OWN SCORE, BUT THE AUDITOR WILL BE LOOKING AT IT AS A SINGLE PIECE OF PROPERTY AS WELL. WE DIVIDE THAT INTO THREE KIND OF MAIN SECTIONS. SO FIRST OF ALL, WE WANT TO UNDERSTAND FROM A CONDITION PERSPECTIVE HOW IS THE HOTEL RIGHT. ARE THERE ANY CAPITAL EXPENDITURES THAT NEED TO BE MADE OR ALL FIRE LIFE SAFETY ISSUES ADDRESSED? THOSE ARE KIND OF CORE TENANTS FOR US.
WE ALSO WANT TO MAKE SURE FROM A GUEST SATISFACTION LEVEL, RIGHT? WHAT ARE OUR GUESTS TELLING US ABOUT THIS HOTEL? HOW ARE THEY RATING THE HOTEL? IS IT MEETING OUR GUESTS EXPECTATIONS? AND THEN THE THIRD COMPONENT IS WHAT WE CALL BRAND STANDARDS. SO THAT CAN BE EVERYTHING FROM KIND OF OPERATIONALLY. DO YOU HAVE THE APPROPRIATE SIGNAGE OR SOME OF THE APPROPRIATE SAFETY MEASURES IN PLACE TO MORE THINGS THAT ARE MAYBE A LITTLE BIT MORE MARKETING OR DESIGN IN NATURE? OKAY. THAT'S GREAT. NOW, YOU MENTIONED TWO THAT YOU YOU REQUIRE SOME RENOVATIONS OR CAPITAL IMPROVEMENTS EVERY SEVEN YEARS. THAT'S CORRECT. AS A MINIMUM SEVEN YEARS, I GUESS. SO. AND WHAT DO YOU WHAT DO YOU MEAN BY THAT? WHAT WHAT LEVEL OF CAPITAL EXPENDITURE ARE YOU TALKING ABOUT HERE? SO OVER THE COURSE OF A 20 YEAR HOTEL LICENSE IT'S ON THE REPORT ON THE BOTTOM. SORRY. OH YEAH. THE SO YEAH, YOU'LL SEE IF YOU GO THROUGH THE FEASIBILITY ANALYSIS, THERE IS AN FADH RESERVE THAT ACCRUES EVERY YEAR.
AND THAT IS SO THAT OWNERSHIP CAN START TO GO AHEAD AND HAVE THE THOSE RESERVES IN PLACE WHEN THE RENOVATION COMES DUE. AGAIN, TYPICALLY EVERY SEVEN YEARS, AN ASSET ON A 20 YEAR LIFE CYCLE LIKE THIS WILL TYPICALLY SEE TWO MAJOR RENOVATIONS. THE FIRST IS GOING TO BE FOCUSED ON REPLACING THINGS LIKE CARPET WALL VINYL, AS WELL AS SOME OF THE OTHER SOFT GOODS AND UPHOLSTERED PIECES. THEN THE SECOND THAT WILL COME IN AN ADDITIONAL SEVEN YEARS IS A MORE HOLISTIC RENOVATION. WE REALLY GO AHEAD AND REPLACE EVERYTHING. SO YOU'LL WALK INTO SOME HOMEWOOD SUITES THAT MAY HAVE OPENED IN 2002, AND THEY LOOK EXACTLY LIKE THIS TODAY BECAUSE THEY'VE GONE THROUGH A MAJOR RENOVATION IN ORDER TO RELICENSE BEYOND THAT 20 YEAR POINT. SO THAT IS ONE OF THE OTHER WAYS THAT HILTON IS ABLE TO MAINTAIN ASSET QUALITY BEYOND THAT INITIAL 20 YEAR LICENSE. WHEN WE GET TO THAT POINT, WE'RE ABLE TO SAY, IF WE'D LIKE TO EXTEND THIS PRODUCT, WE'RE GOING TO GO AHEAD AND ELEVATE IT INTO THE NEWEST DESIGN AND PROTOTYPE FEATURES TO MAKE SURE THAT THE INTEGRITY IS THERE FOR THE NEXT 15 TO 20 YEARS. SO YOUR YOUR FRANCHISE LICENSE IS 20 YEARS. YES, THAT'S TYPICALLY WHAT WE'VE OFFERED. AND THAT IS ALSO WHAT'S HOW THIS PROJECT IS STRUCTURED. OKAY. HAVE YOU HAD ANY EXPERIENCES WHERE IT DIDN'T RENEW AFTER THE 20 YEARS AND YOU'RE THE BRAND WASN'T RENEWED? THAT IS RARE BECAUSE OWNERS TYPICALLY WOULD PREFER TO KEEP THE FLAG AND MAKE THE INVESTMENT. SO WE HAVE HOTELS THAT ARE CERTAINLY 30, 40 YEARS OLD. OUT OF 570 HOTELS.
TYPICALLY I WILL REMOVE 2 TO 3 HOTELS A YEAR. SO IT'S A PRETTY SMALL PERCENTAGE OF THE BRAND.
AND THAT'S USUALLY BASED ON A NUMBER OF FACTORS. IT COULD BE THAT THE OVERALL MARKET IS IN DECLINE. IT COULD BE THAT THE ASSET IS JUST GONE. WE HAD WHEN THE BRAND STARTED, WE HAD ASSETS, WE HAD HOTELS THAT HAD EXTERIOR CORRIDORS. WE NO LONGER ALLOW THAT. SO THAT IS ALWAYS A HARD NO FOR US. AND THIS PROPERTY, BECAUSE IT'S A NEW CONSTRUCTION DOESN'T HAVE THAT ISSUE. IT'S ALL INTERIOR CORRIDORS. OKAY. ALL RIGHT. AND I HAVE ONE MORE QUESTION. I'LL GIVE COMMISSIONERS ANOTHER CHANCE HERE. SORRY. YOU MENTIONED MISS KNIGHT SOMETHING IN YOUR PRESENTATION. I MISSED IT AGAIN. I GUESS SOMETHING ABOUT THAT. THERE HAD BEEN TWO MAJOR RENOVATIONS. ARE YOU REQUIRED TWO MAJOR RENOVATIONS IN SOME TIME PERIOD. COULD YOU REPEAT WHAT THAT WAS AND TELL ME AGAIN WHAT THAT WAS? SURE. IT IS SEVEN AND 14 YEARS.
TYPICALLY A LITTLE BIT OF FLEX THERE DEPENDING ON WHAT'S GOING ON ON THE PROPERTY, RIGHT? LIKE
[00:40:01]
FOR EXAMPLE, THIS IS A WORLD CUP YEAR. WE'RE NOT MAKING PEOPLE DO A MAJOR RENOVATION.IF YOU'RE HOSTING THE WORLD CUP, THAT'S, THAT'S NOT GOOD FOR BUSINESS. SO TYPICALLY EVERY SEVEN YEARS, THAT FIRST RENOVATION IS WHAT WE CALL A SOFT RENOVATION. AND THAT INCLUDES REPLACING THINGS LIKE CARPET AND WALL VINYL AND SOME OF THE UPHOLSTERED PIECES. WE CALL IT A SOFT RENOVATION. BUT IF YOU'VE EVER WALKED INTO ONE, YOU KNOW, IT'S PRETTY SIGNIFICANT. AND THEN THE SECOND RENOVATION THAT OCCURS AROUND THAT 14 YEAR MARK IS WHAT WE CALL A FULL OR COMPLETE RENOVATION. AND SO THAT IS ESSENTIALLY A COMPLETE REFRESH OF THE INTERIOR HOTEL. THEN WHEN WE GET BEYOND THAT POINT IN THE HOTEL, IS AT THE END OF ITS TERM WITH US, AND WE'RE TALKING ABOUT RELICENSING, WHAT WE WOULD CALL A PIP, A PRODUCT IMPROVEMENT PLAN. THAT IS WHEN WE ALSO START TO TALK ABOUT THE EXTERIOR, RIGHT? WE'RE ALWAYS LOOKING AT THE EXTERIOR IN TERMS OF CONDITION AND TO MAKE SURE IT LOOKS GOOD. BUT THAT'S WHEN WE START TALKING ABOUT THE EXTERIOR FROM A DESIGN PERSPECTIVE, RIGHT? WE'VE HAD THIS ASSET FOR 20 YEARS. DO WE NEED TO LOOK AT THE EXTERIOR AND MAKE SOME CHANGES THERE RATHER THAN JUST ALSO MAINTAINING IT? OKAY. THANK YOU. THANK YOU. COMMISSIONERS, ANY I HAVE A QUESTION BEFORE YOU GO ON THE BRANDING. SO THIS IS A DUAL BRANDED PROPERTY, BUT PROJECTS THAT ARE COMING ONLINE, IT'S NOT 100% REQUIREMENT NOWADAYS THAT ALL PROPERTIES BE DUAL BRANDED. THIS COULD COULD HAVE COME IN AS A FULL SERVICE PROJECT BY HILTON. CORRECT. I DON'T THINK THAT THAT'S. SO. WHAT WE WOULD CONSIDER FULL SERVICE WOULD BE A HILTON OR DOUBLETREE. AND I DON'T THINK THAT WHILE THERE'S DEMAND IN THE PROSPER MARKET, IT'S NOT DEMAND THAT WOULD NECESSITATE ONE OF THOSE PRODUCTS AT THIS POINT. SO THAT'S WHY WE REALLY GET EXCITED WHEN WE'RE ABLE TO DO SOMETHING LIKE THIS AND COMBINE A HILTON, GARDEN INN AND HOMEWOOD AND REPLICATE SOME OF THAT FULL SERVICE EXPERIENCE. BUT IN A WAY THAT'S GOING TO ECONOMICALLY MAKE SENSE FOR A CITY THE SIZE OF PROSPER. NOW, WHEN YOU SAY A CITY THE SIZE OF PROSPER, OBVIOUSLY WE'RE IN THE MIDDLE OF A VERY LARGE METROPOLITAN AREA. SO, I MEAN, YOUR CALCULATION IS NOT GOING TO BE BASED SOLELY. I MEAN, YOU'VE GOT ALL THE ACTIVITIES IN FRISCO AROUND AND SALINA AND ALL THAT STUFF. SO I ASSUME YOUR STATEMENT WOULD GO BEYOND JUST PROSPER, RIGHT? THAT. WELL, YES. I MEAN, SIMILAR TO THE WAY THAT RIGHT NOW FRISCO IS MANAGING ALL OF THE DEMAND FROM PROSPER. CERTAINLY YOU WOULD BE TAKING DEMAND FROM OTHER PARTS OF THE DALLAS AREA. I GUESS I DON'T REALLY YEAH, I KIND OF DON'T UNDERSTAND THAT COMMENT ABOUT LIKE, YOU WOULDN'T BRAND A SINGLE FULL SERVICE HOTEL BECAUSE THE CLIENT OR THE AREA IS NOT WARRANTED. BUT YET THE THINGS YOU'RE REFERENCING THAT ARE GOING TO DRIVE THE BUSINESS IS THINGS THAT ARE IN NOT JUST PROSPER, BUT ALL THE THINGS GOING ON IN, IN FRISCO AND, AND PROSPER. THAT'S WHAT WE'RE TRYING TO ATTRACT. AND SO IF WE DON'T BUILD IT, WE'RE NOT GOING TO ATTRACT IT. SO SOME OF THOSE PROJECTS ARE NOT ON THE GROUND RIGHT NOW, JUST SOUTH OF US.
BUT THEY WILL BE IF WE DON'T ALSO CAPITALIZE ON IT. SO. YES. THANK YOU. MR. MR. I HAVE TWO I HAVE TWO QUESTIONS. SO THIS THIS PRODUCT IS OBVIOUSLY VERY SIMILAR TO THE ONE IN GRAND PRAIRIE IS THE ONE IN GRAND PRAIRIE. DO YOU. I DON'T YOU MIGHT NOT HAVE THESE STATS ON YOU, BUT DO YOU HAPPEN TO KNOW WHAT THE AVERAGE STAY AND WHAT THE RATE IS IN THE ONE IN GRAND PRAIRIE AND HOW THAT COMPARES TO THE ONE I WILL GO BACK. WE ACTUALLY HAD THE REVENUE FOR THE MONTH OF MARCH, SO YOU'LL SEE THAT WAS OVER $1 MILLION A MONTH. AND THAT IS NOT UNUSUAL FOR THAT PROPERTY. I CAN'T SPEAK TO THE AVERAGE DAILY RATE OFF THE TOP OF MY HEAD. BUT AGAIN, TYPICALLY FOR THE GI, WE WOULD SEE SOMETHING PROBABLY JUST UNDER $200 A NIGHT, MAYBE AROUND 175 HOMEWOOD, USUALLY A LITTLE BIT HIGHER THAN HILTON GARDEN INN BECAUSE YOU ARE PAYING FOR THAT ADDITIONAL SPACE. SO PROBABLY CLOSER TO $200 A NIGHT. OKAY. AND BUT YOU DON'T THESE PROPERTIES DON'T HAVE PEOPLE STAYING IN THEM FOR MONTHS AT A TIME. IT'S TOO EXPENSIVE TO. YES, THAT'S AN UNUSUAL DYNAMIC. NOW, I WILL SAY, LIKE WITH ANY GIVEN HOTEL, YOU CAN OPEN A HAMPTON INN, YOU CAN OPEN A WALDORF ASTORIA. PEOPLE WILL STAY AS LONG AS THEY STAY. WE MAY CHECK THEM OUT AND CHECK THEM BACK IN. THAT IS THE NATURE OF HOSPITALITY, RIGHT? BUT WE ARE NOT DESIGNED FOR THAT. SURE. OKAY. AND I HAVE ONE MORE QUESTION ON THE FFE RESERVES THAT YOU WERE TALKING ABOUT EARLIER THIS, AND THIS MIGHT BE A DUMB QUESTION, BUT WHO ACTUALLY HOLDS THOSE RESERVES? DOES HILTON HOLD THOSE RESERVES OR IS IT JUST AN ACCOUNTING OWNERSHIP HOLDS THE RESERVES. AND AROUND THAT SEVEN YEAR MARK,
[00:45:06]
AS WE GET INTO KIND OF SIX YEARS, OUR ARCHITECTURAL TEAMS AND OUR TEAMS START TO REACH OUT TO THE OWNER. IF THE OWNER DOES NOT MAKE SIGNIFICANT PROGRESS ON THEIR RENOVATION PLAN, THEY ARE AT RISK OF FINANCIAL PENALTIES WITH HILTON AND ULTIMATELY LOSING THEIR LICENSE, AND ALSO POTENTIALLY REPERCUSSIONS FROM THEIR LENDER AND SALE OF THAT LICENSE TO AN ALTERNATIVE OWNER OR INVESTOR. OKAY. AND SO IS HILTON VERIFYING THOSE RESERVES LIKE ON AN ANNUAL BASIS AS WE DO? YOU DON'T. OKAY, THANKS, COMMISSIONER. THANK YOU, MR. CHAIRMAN. I'VE GOT A LITTLE BIT OF A HODGEPODGE OF QUESTIONS HERE, AND I MAY STOP AS THEY BECOME LESS RELEVANT. SO HELP ME UNDERSTAND THE LOBBY HERE. I'M TRYING TO REMEMBER THE LAST TIME I WAS IN ONE OF THESE DUAL BRANDED HOTELS. SO WHEN YOU WALK UP TO THE DESK, IT'S A SHARED DESK. THEN DO YOU GO THROUGH ANOTHER DOOR TO GET TO THE ACTUAL HOTEL YOU'RE STAYING AT, OR IS IT JUST TWO DIFFERENT ELEVATOR BANKS? LIKE HOW, HOW OPEN DOES IT FEEL? OR DOES IT ACTUALLY FEEL CLOSED OFF? IT'S TYPICALLY TWO SEPARATE ELEVATOR BANKS. AND FOR DUAL BRANDED HOTEL, DEPENDING ON THE PROPERTY, WE EITHER SEGREGATE ROOMS HORIZONTALLY OR SOMETIMES VERTICALLY. SO SOMETIMES IT IS LITERALLY A STACKED HILTON GARDEN INN HOMEWOOD SUITES SIDE BY SIDE. OTHER TIMES IT'S DESIGNATED FLOORS. SO IT KIND OF DEPENDS A LITTLE BIT ON THE SITE IN THE MARKET. GOT IT. AND THIS IS PROBABLY A SILLY QUESTION, BUT ON THIS DIAGRAM HERE, WHERE THERE IS THAT LINE IN BETWEEN THE TWO, THERE IS NOTHING THERE. CORRECT. THAT IS JUST FOR. THAT'S CORRECT. YEAH. OKAY. SO IF I STOOD ON LIKE THE FAR RIGHT SIDE OF THIS DIAGRAM IN THE HOMEWOOD SUITES, AND I LOOKED ACROSS WHAT I EFFECTIVELY SEE ALL THE WAY TO THE CONFERENCE CENTER FOR THE HILTON GARDEN INN. YES. SO YOU HAVE ONE VERY OPEN LOBBY SPACE THAT'S GOING TO BE VERY LARGE AND AGAIN, REPLICATES THAT FULL SERVICE EXPERIENCE. JUST THE ECONOMICS BEHIND IT ARE A LITTLE BIT DIFFERENT. GOT IT. A CLARIFICATION QUESTION THAT COMMISSIONER BLANSET ASKED. SO THIS IS THIRD PARTY MANAGED CORRECT UNDER LICENSE AGREEMENT.THAT'S CORRECT. OKAY. GOT IT. I'M CURIOUS. YOU KNOW, THIS DID NOT PASS THE FIRST TIME IT CAME TO PLANNING AND ZONING AND THEN GOT SENT BACK. WHAT WHAT IS THE ALTERNATIVE HERE? AND THIS IS MORE OF A QUESTION FOR THE OWNERSHIP, I SUPPOSE. I'M JUST CURIOUS WHAT WHAT WOULD BE THE ALTERNATIVE? I KNOW COMMISSIONER HAMILTON WAS. OPINING ABOUT THE POSSIBILITY OF JUST ONE HILTON GARDEN INN, A LARGER HILTON GARDEN INN. JUST I'M CURIOUS IF THERE ARE THOUGHTS ON THAT. WELL, I CAN'T SPEAK TO THE REAL ESTATE POTENTIAL HERE. WHAT I CAN SAY IS, FROM A HILTON PERSPECTIVE, ONCE WE HAVE SIGNED A LICENSE AGREEMENT, WE CANNOT WE CANNOT CHANGE THAT WITHOUT SOME PRETTY SEVERE LEGAL REPERCUSSIONS. SO FOR US TO SAY, OH, WE'RE JUST GOING TO MAKE THIS ALL HILTON GARDEN OR WE'RE GOING TO MAKE THIS A CANOPY OR SOMETHING ENTIRELY DIFFERENT, WE CAN'T DO THAT. ONCE THE LICENSES HAVE BEEN GRANTED. FROM A LEGAL PERSPECTIVE, IS IT TYPICAL FOR A LICENSE AGREEMENT TO BE EXECUTED AHEAD OF THE ZONING APPROVAL? I CAN'T SPEAK TO THAT. I THINK I THINK PART OF THAT WAS WE DIDN'T UNDERSTAND PRIMARILY THAT WE NEEDED THIS SEP. SO I THINK THAT'S TYPICALLY WHY, BECAUSE I THINK THE THE PLANS WERE BEING DONE, YOU KNOW, A LONG TIME AGO, WE WERE WORKING THROUGH THAT PROCESS. AND THEN WE REALIZED AFTER CONVERSING WITH STAFF THAT WE DID IN FACT, NEED AN S P. SO I BELIEVE YOU WERE LIKELY CORRECT WHEN USUALLY ALL THE APPROVALS ARE DONE. WE DID NOT UNDERSTAND THAT EARLY ON IN THE PROCESS. AND THEN THAT IS WHY WE'RE HERE TONIGHT. GOT IT.
THANK YOU. AND JUST A COUPLE OF QUICK QUESTIONS ON THESE PROJECTIONS SINCE THEY WERE PROVIDED. MR. HOBLIT, WERE YOU DID YOU DO THE PROJECTIONS? WE DID NOT. THAT WAS A VERY QUICK TURNAROUND. OBVIOUSLY, WE HAD COUNSEL LAST TUESDAY, AND USUALLY THOSE THE THE WHOLE REPORT IS ABOUT 100 PAGES AND IT'S QUITE LARGE. AND I DIDN'T WANT TO OVERBURDEN YOU WITH THAT INFORMATION. IT'S A LOT OF TECHNICAL DETAILS, BUT WE GOT THAT DONE IN ONE WEEK AT THE REQUEST OF COUNSEL. THEY WANT US TO GIVE THOSE DETAILS. SO I CAN'T I YOU KNOW, HAPPY TO ANSWER QUESTIONS ON THAT. BUT USUALLY THAT'S JUST THE NUMBERS PAGE, WHICH LOOK THE MOST UNDER REASONABLE TO UNDERSTAND, I GUESS, COMPARED TO SOME OF THE OTHER THINGS THAT ARE PART OF THAT REPORT. OKAY, I'LL REDUCE MY QUESTIONS ON THE ON THE FINANCIALS TO JUST ONE. SO, MISS KNIGHT, YOU HAD SAID YOU BELIEVED THAT THIS PRODUCT WAS IN THE $200 ADR RANGE. CORRECT? THAT DOESN'T SHOW ON THE PROJECTIONS UNTIL YEAR SEVEN FOR EITHER OF THE BRANDS. I'M JUST I'M JUST CURIOUS WHAT THE THOUGHT PROCESS WAS ON THE PROJECTIONS, WHETHER THEY'RE JUST CONSERVATIVE BY NATURE OR TYPICALLY A FEASIBILITY ANALYSIS IS CONDUCTED KIND OF LOOKING AT A MYRIAD OF HOSPITALITY CONCEPTS AND HOW THEY'RE PERFORMING. AGAIN, HOMEWOOD SUITES AND HILTON GARDEN, OR WHAT WE CALL CATEGORY KILLERS IN THE HOSPITALITY BUSINESS, BECAUSE THESE BRANDS PRODUCE, THE REASON THAT AN OWNER WANTS TO HOLD THIS LICENSE IS BECAUSE THEY DO PRODUCE A MUCH HIGHER RATE THAN COMPARABLE PRODUCTS WOULD WITH OTHER HOSPITALITY BRANDS. SO I WOULD SAY YES, KIND OF REGARDLESS OF FLAG OR
[00:50:04]
BRAND, THIS PROPERTY WOULD PROBABLY DRIVE THOSE RATES. AND WHEN YOU ADD THESE BRANDS TO IT, THAT IS WHAT IS POTENTIALLY ELEVATING THE PERFORMANCE TO $200 A NIGHT OR MORE. IN SOME CASES. I WILL SAY THAT THE GOP IN THE FEASIBILITY ANALYSIS, THE GROSS OPERATING PROFIT MARGIN IS VERY MUCH WITHIN THE PRO FORMAS THAT WE HAVE AT HILTON FOR THESE BRANDS. SO THAT IS RIGHT ON TARGET. AWESOME. THANK YOU, I APPRECIATE IT. THANK YOU.COMMISSIONER DANIEL, DID YOU I DON'T HAVE ANY QUESTIONS. I DO THANK YOU, THOUGH, FOR ALL THE INFORMATION THAT YOU SHARED. I MYSELF HAVE STAYED MANY TIMES AT HOME WITH SWEET AND ABSOLUTELY LOVED IT. SO I AM REALLY AND I LIKE THE CHANGES THAT YOU'VE MADE BECAUSE THE YEARS THAT I'VE STAYED, YOU WEREN'T AS NICE AS I'M SEEING HERE NOW. SO THIS IS HUGE. THIS IS A REALLY GOOD IMPROVEMENT, ESPECIALLY THE LAUNDRY PIECE. SO WELL THANK YOU. WE LOOK FORWARD TO HAVING YOU AGAIN. ONE FOLLOW UP QUESTION TO SOMETHING THAT COMMISSIONER FURY ASKED IN TERMS OF STANDING ON ONE END AND LOOKING DOWN THE OTHER. SO IN THAT LARGE LOBBY AREA, IS THERE LIKE A DISTINCT DIFFERENCE? LIKE, DOES THE CARPET COLOR CHANGE? I MEAN, OR AGAIN, IF I'M STANDING IN THE MIDDLE, DO I DOES IT LOOK DIFFERENT? NO, IT'S ONE COHESIVE DESIGN. AGAIN, BOTH OF THESE BRANDS ARE WHAT WE CONSIDER UPSCALE BRANDS WITHIN HILTON. SO THAT MAKES IT VERY EASY FOR US TO PAIR THEM TOGETHER FROM FROM A DESIGN ESTHETIC. AND THIS IS WHY IT'S SUCH A POPULAR COMBINATION. WE'RE SOMETIMES YOU SEE THAT DIFFERENCE IS AS YOU MOVE UP INTO THE GUEST ROOMS AND THE CORRIDORS, IF WE SPLIT THIS STACK VERTICALLY, FOR EXAMPLE, THEN THERE WILL BE A DOOR LITERALLY DIVIDING THAT CORRIDOR. IT WILL SAY SOMETHING USUALLY LIKE STAFF ONLY OR SOMETHING. ONE SIDE WILL HAVE HILTON GARDEN INN CARPET, ONE SIDE WILL HAVE HOMEWOOD CARPET AND DESIGN. IF YOU'RE ON WHATEVER SIDE YOU'RE ON, YOU HAVE NO IDEA WHAT'S GOING ON. ON THE OTHER SIDE OF THAT CORRIDOR, YOU'RE IN YOUR HILTON GARDEN AND HALLWAY GOING INTO YOUR HILTON GARDEN INN ROOM, OR YOU'RE IN YOUR HOMEWOOD SUITES HALLWAY GOING INTO YOUR HOMEWOOD SUITES SUITE. OKAY, GREAT. THANK YOU. CAN I ASK ONE MORE QUESTION SO I KNOW THERE'S NO WALL THERE IN THE LOBBY AS YOU GO ON TO FLOORS TWO THROUGH FIVE, IS THERE A WALL SEPARATING THE TWO? I'LL LET Y'ALL. DO YOU WANT TO SPEAK TO THAT? BECAUSE I'M NOT SURE IF THEY'VE SEPARATED THE STACK VERTICALLY OR HORIZONTALLY FOR THIS PROJECT, SO I'LL LET HIM. TAKE A QUESTION AGAIN. SO I BELIEVE THE NOTE SUGGESTS THAT IT IS STACKED VERTICALLY. BUT THE QUESTION IS. SO THERE IS NO WALL SEPARATING THE TWO BRANDS IN THE LOBBY. RIGHT. SO ON FLOORS TWO, THREE, FOUR, FIVE, ARE THEY SEPARATED OR DO YOU WALK RIGHT DOWN THE SAME CORRIDOR FOR THE HOMEWOOD SUITES, RIGHT THROUGH THE SAME CORRIDOR? IT'S JUST THE ROOMS THAT ARE DIFFERENT. THERE'S SIGNS THAT WILL DIFFERENTIATE HILTON GARDEN INN AND SUITES. SO EXCEPT FOR THE BREAKFAST BUFFET AT THE HOMEWOOD SUITES, THIS IS EFFECTIVELY ONE HOTEL. IS THAT REALLY IT? ALL RIGHT.
THANK YOU. ANY FURTHER QUESTIONS? COMMISSIONERS OF THE APPLICANTS. OKAY. THIS IS A PUBLIC HEARING. THANK YOU, BY THE WAY. THANK YOU. AT THIS TIME, WE MAY HAVE MORE LATER, BUT WE'LL WE'LL MENTION THAT TO YOU. THIS IS A PUBLIC HEARING. SO IF THERE IS ANY ONE IN THE AUDIENCE THAT WOULD LIKE TO COME UP TO SPEAK ON THIS MATTER, YOU'RE CERTAINLY INVITED TO DO SO AT THIS TIME. ALL RIGHT. SEEING NO ONE. COMMISSIONERS, I'LL TAKE IT BACK TO YOU FOR ANY FURTHER DISCUSSION. OKAY. THERE'S NO DISCUSSION. I'LL ENTERTAIN A MOTION WITH REGARD TO THIS ITEM. COMMISSIONER FIORE. SO I'LL I'LL OFFER SOME THOUGHTS. YOU KNOW, I THINK THE THE APPLICANT HERE HAS DONE A GOOD JOB MAKING THE CASE. I WALKED IN HERE REALLY AS A PRETTY SOLID. NO, BECAUSE I DIDN'T REALLY FEEL LIKE THERE WAS ANY NEW INFORMATION. BUT THE. YOU ALL DID A REALLY NICE JOB AND I APPRECIATE THE INFORMATION. I THINK THE CASE FOR THIS, EVEN THOUGH IT'S EXTENDED STAY, WOULD BE THIS CONCEPT OF THIS IS REALLY JUST ONE HOTEL WITH A COUPLE OF DIFFERENT ROOM TYPES. YOU KNOW, IT CERTAINLY WILL BE UPSCALE. I THINK IT'S REGRETTABLE THAT IN SOME WAYS WE'RE FIGURATIVELY UNDER THE GUN WITH, YOU KNOW, A LICENSE AGREEMENT THAT'S ALREADY BEEN SIGNED AND KIND OF HAVING TO THINK ABOUT IT THIS WAY. BUT, I MEAN, THAT'S NOT REALLY A CONSIDERATION FOR US. IT'S JUST A REGRETTABLE SITUATION. I REALLY I COULD GO EITHER WAY ON THIS. I THINK I AM ULTIMATELY SUPPORTIVE OF IT
[00:55:12]
BECAUSE OF WHERE THIS IS, COMMISSIONER BLAND SAID IN THE WORK SESSION MADE THE POINT THAT THERE'S THE REHAB FACILITY RIGHT THERE. THERE'S THE OTHER HOSPITAL THERE, THAT THIS PROVIDES A PRODUCT TYPE IN AN AREA THAT IT WOULD LIKELY BE NEEDED. BUT ULTIMATELY, I GO BACK TO THIS IDEA OF REALLY ONE HOTEL, ONE SET OF AMENITIES, JUST A DIFFERENT TYPE OF ROOM WITHIN THAT HOTEL. AND FOR THAT REASON, I, I HAVE LARGELY SWITCHED FROM WHERE I WAS ABOUT AN HOUR AGO TO BEING SUPPORTIVE. OKAY. THANK YOU, COMMISSIONER FIORE. COMMISSIONER BUTLER, DO YOU HAVE ANYTHING YOU WANT TO SAY ON THIS? YEAH, I'LL JUST ADD, YOU KNOW, I THINK THE CHALLENGE FOR US FROM THE BEGINNING HAS BEEN THE EXTENDED STAY PART OF THIS. I THINK THERE'S EVERYBODY'S AWARE OF THAT. AND THE CHALLENGE FOR US IS NOT THAT IT'S A HILTON. A HILTON IS A GREAT BRAND, AND WE WOULD LOVE TO HAVE HILTON IN PROSPER. I THINK THE CHALLENGE HAS BEEN, DO WE, WITH EVERY EXTENDED STAY UNIT THAT WE ALLOW AND PROSPER, DOES THAT TAKE AWAY FROM THE ABILITY TO PUT FULL SERVICE UNITS DOWN THE ROAD? BECAUSE HOTEL BRANDS, THERE'S ALREADY MORE UNITS ON THE GROUND THAT ARE EXTENDED STAY. AND SO I THINK THAT'S THE CHALLENGE. I, I LIKE THE CONCEPT. I THINK IT'S A GOOD CONCEPT. YOU KNOW, I THINK COMMISSIONER FUREY DID A GOOD JOB OF KIND OF BREAKING DOWN THAT IT'S, YOU KNOW, A FULL IT REALLY CAN BE LOOKED AT AS ONE HOTEL WITH DIFFERENT ROOM TYPES, BUT I I'M IN FAVOR OF, OF IT, OF GRANTING THE THE SUV COMMISSIONER HAMPTON. I REALLY DON'T HAVE ANY ADDITIONAL COMMENTS. THE FACT THAT THE EXTENDED STAY WILL HAVE AN IMPACT ON THE NUMBER OF FULL SERVICE ROOMS. WE WILL END UP WITH. DOES MATTER, AND WE DO WANT ELEVATED FULL SERVICE HOTEL AND PROSPER IS A SMALL TOWN, BUT WE WILL BE SERVICED IN THIS CORRIDOR. WE WILL BE SERVICING PEOPLE FROM FRISCO AND SURROUNDING AREAS, SO I STILL WOULD LIKE TO SEE A FULL SERVICE, COMPLETE, FULL SERVICE HOTEL IN THIS SPOT. WE DO ALREADY HAVE SEVERAL OTHER EXTENDED STAYS ALREADY APPROVED, AND SO THAT PART OF IT HASN'T REALLY CHANGED FROM MY ORIGINAL STANCE FROM WHEN WE SAW THIS THE FIRST TIME. THANK YOU, COMMISSIONER. COMMISSIONER DANIEL, I THINK, I MEAN, I'M IN FAVOR OF THIS. I THINK EVEN THOUGH IT'S WE HAVE THAT BREAK WITH FULL SERVICE AND EXTENDED STAY, I BELIEVE THE HOMEWOOD HOMEWOOD SUITES ARE A HIGH LEVEL OF EXTENDED STAY. I'VE STAYED AT THEM MYSELF MANY OCCASIONS. SO I FEEL COMFORTABLE IN SAYING I WOULD GO ALONG WITH IT. YEAH, OKAY. ALL RIGHT. THANK YOU. WELL, OBVIOUSLY WHAT'S BEFORE US IS A SPECIAL USE PERMIT. WE HAVE TO ANALYZE WHETHER THIS FITS THE REQUIREMENTS FOR A SPECIAL USE PERMIT. I REALIZE WHAT COMMISSIONER FIORE SAID THE THE UNDER THE GUN KIND CONCEPT. I'M NOT SURE I FEEL UNDER THE GUN. THAT'S NOT OUR OUR OUR PROBLEM NECESSARILY THAT YOU MAY HAVE CONTRACTED BEFORE YOU FINISHED ALL THE WORK. BUT, YOU KNOW, I DO THINK THAT THIS IS A GOOD PRODUCT. I DO THINK IT'S ALSO A GOOD LOCATION FOR, FOR SUCH A PRODUCT. AND IN LIGHT OF IT BEING RIGHT THERE BY THE HOTEL OR THE HOSPITALS AND, AND CLOSE TO OTHER AMENITIES AROUND THE AREA. SO I THINK IT'S, IT MAKES A LOT OF SENSE IN THIS PARTICULAR LOCATION. I ALSO THINK THE FACT THAT IT IS, IT IS ESSENTIALLY OPERATED AND RUN AND LOOKS LIKE A. A SINGLE HOTEL ALSO HELPS AVOID THAT LOOK OF, OF WHAT WE ENVISION AS AN EXTENDED STAY. SO I THINK THIS IS THIS IS AN APPROPRIATE USE AND NO EXTERIOR CORRIDORS AND NO EXTERIOR CORRIDORS. YEAH. WELL OF COURSE. YES. YOU DON'T WANT THAT. ALL RIGHT.COMMISSIONERS AT THIS TIME I IF NOT ANY FURTHER DISCUSSION, I'D ENTERTAIN A MOTION. AND IF YOU WOULD PLEASE INCLUDE IT IN YOUR MOTION TO CLOSE THE PUBLIC HEARING AND AND WITH WHATEVER ELSE YOU WANT TO SAY ON THIS MATTER. THE MOTION ITSELF WILL CLOSE THE PUBLIC HEARING. YES,
[01:00:05]
YES. OKAY. I WILL MOVE TO APPROVE AGENDA ITEM NUMBER FIVE, SUBJECT TO TOWN STAFF RECOMMENDATIONS, AND CLOSE THE PUBLIC HEARING ASSOCIATED THEREWITH. ALL RIGHT. MOTION HAS BEEN MADE BY COMMISSIONER FUREY AND SECONDED BY COMMISSIONER DANIEL TO CLOSE THE PUBLIC HEARING AND APPROVE ITEM NUMBER FIVE, SUBJECT TO STAFF CONDITIONS. ANY FURTHER DISCUSSION ON THAT MOTION? ALL RIGHT. ALL IN FAVOR OF THE MOTION, PLEASE RAISE YOUR HAND.ALL OPPOSED? ALL RIGHT. COMMISSIONER HAMILTON OPPOSED. THE MOTION DOES PASS 4 TO 1, AS I UNDERSTAND THAT WILL GO TO TOWN COUNCIL AT WHAT MEET WHAT DATE? MAY 19TH. MAY 19TH. SO WE DO THANK THE HILTON PEOPLE FOR COMING AND AND MAKING THAT PRESENTATION. I WOULD HAVE LOVED TO HAVE HAD THAT PRESENTATION THE FIRST TIME. I THINK. SO MIGHT BE A GOOD LESSON TO BE LEARNED, BUT AT LEAST THIS WAY YOU GOT TO STAY IN YOUR OWN HOTELS A COUPLE MORE NIGHTS. SO, SO. AND IF WE HAD THIS ONE ON THE GROUND NOW, YOU'D BE GIVING US THE THE SALES TAX MONEY THERE SO WE GET THE MONEY. SO THANK YOU VERY MUCH. THANK YOU. THANK YOU SO MUCH. WE LOVE TO HAVE YOU. HERE. I'M GLAD THAT I WAS GOING TO TELL YOU THAT WE DO BELIEVE WHAT WE MAKE IS. GOOD. THIS WILL BE A GREAT ASSET FOR THE CITY. THANK YOU. THANK YOU VERY
[6. Review actions taken by the Town Council and possibly direct Town Staff to schedule topic(s) for discussion at a future meeting.]
MUCH, SIR. THANK YOU. ALL RIGHT, MR. HILL. OKAY. ITEM NUMBER SIX. WE'RE GOING TO REVIEW AS ACTIONS TAKEN BY THE TOWN COUNCIL. IS THAT RIGHT? THAT'S CORRECT. DIRECT TOWN STAFF TO SCHEDULE TOPICS FOR DISCUSSION AT A FUTURE MEETING. OKAY. AT THE PREVIOUS TOWN COUNCIL MEETING, HAD A FEW ITEMS ON THE AGENDA ON THE 28TH. SO THE CONCEPTUAL DEVELOPMENT PLAN THAT YOU GUYS SAW AT YOUR PREVIOUS MEETING WAS APPROVED UNANIMOUSLY. THE DENTON WAY OFFICE PARK ORDINANCE AND DEVELOPMENT AGREEMENT WERE APPROVED UNANIMOUSLY. THE UNIFIED DEVELOPMENT CODE ORDINANCE WAS APPROVED UNANIMOUSLY AS WELL AS THE NOTICE OF APPEALS. THE SPECIFIC USE PERMIT THAT YOU JUST HEARD WAS REMANDED BACK TO YOU GUYS.AND THEN THE PLAN DEVELOPMENT FOR THE INDOOR GOLF SIMULATOR FACILITY WAS ALSO APPROVED UNANIMOUSLY. SO FOR THE FUTURE TOWN COUNCIL MEETING ON THE 12TH, JUST HAVE NOTICE OF APPEALS ON THE CONSENT AGENDA. AND THEN FOR YOU GUYS ON THE 26TH, STILL WORKING ON THE CONSENT AGENDA. AND THEN WE'VE GOT THE FRONTIER GATEWAY PSP THAT WAS TABLED TO THAT DATE.
AND THEN POTENTIALLY FOR ZONING CASE, WE'VE GOT SADDLE CREEK COMMERCIAL ON THE NORTHWEST CORNER OF PRESTON ROAD AND PROSPER TRAIL, AND THAT WILL BE A PLANNED DEVELOPMENT. THANK YOU. ANY QUESTIONS STAFF OR COMMISSIONERS OF STAFF. ALL RIGHT. THANK YOU VERY MUCH.
LET'S SEE. NEXT THING ON THE ON THE AGENDA IS TO ADJOURN. I'LL ENTERTAIN A MOTION TO ADJOURN.
MOVE TO ADJOURN. SECOND. S
* This transcript was compiled from uncorrected Closed Captioning.