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THE BIG  QUESTION

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What is the best use of the City's assets to enhance vitality of St. Helena while addressing our long-term fiscal viability?

 

City should develop an overall strategic vision for all its properties, not sell one or two off in the absence of a comprehensive plan. A short-term remedy could foreclose a long-term vision that could recapture St. Helena as the cultural heart of the Napa Valley.

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SUMMARY FINDINGS

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1. St. Helena needs a Cultural Center to enhance the quality of life for the Community and offer its Citizens unlimited cultural experiences in a historic park setting. The original vision for a Cultural Center on Adams in 2009 was not financially feasible as the only funds available would come from the sale of the property in the same location.​

 

Fortunately, the Adams vision was not realized as it would have been out of scale, a major financial burden, disconnected from the Downtown and in a remote location not visible to essential visitors. Location of a Cultural Center is critical for success and sustainability.

 

The most highly visible location, with optimum pedestrian connectivity with the Downtown, is on Main Street at Lyman Park. There is no better location that is both free and available in any other place in town. If you don't build in this location there most likely will never be a viable Cultural Center for future generations!

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2. The City needs ever increasing, substantial revenue in perpetuity but should not always rely on increasing taxes and utility rates. The sell of the Adams parcel can both facilitate the development of a Cultural Center and keep St. Helena solvent . . . with enough long term hotel tax revenue to finally fix its infrastructure and meets its other liabilities. 

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3. The Downtown needs solutions to insure long term viability and not be overly dependent on the changing wine industry and passive retail traffic. ​A Cultural Center, offering desirable events and amenities, would draw more locals and essential visitors as the anchor tenant on Main Street. It's the perfect synergistic mix. 

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OPTIMUM HOTEL MIX, LOCATIONS​ & COMMUNITY ACCEPTANCE

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Another 4 star hotel on Main Street would diminish Lyman Park, eliminate any future Cultural Center and would not bring enough substantial revenue to validate its entitled location.

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It would result in a zero sum TOT (tax revenue) predicament as it would cannibalize revenue from other City hotel partners in same class. It's best to avoid unnecessary internal market competition and stratify hotel classes for optimum tax revenue. Thus, any new hotel should compete only with luxury 5 star hotels, not found within the City but outside in the County.

 

Our current 3 & 4 star hotels also don't have premium suites at high rates which limits potential revenue. A 5+ star luxury resort on Adams with high rack rates and expensive suites would provide substantial taxes and be the only real solution to secure the future of the City's treasury.

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Since there are limited and competing resources of labor available for any new hotel, it would be most logical to allocate such labor to a larger luxury hotel that generates greater tax revenue for the City.  

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The Community of St. Helena would be very exited to have a stunning, landmark Cultural Center on Main Street and perhaps concede the sale of Adams as an acceptable trade and a replacement of one assets for another.

 

However, it would be highly unlikely that there would be community tolerance to sell to hotel developers, the Main Street parcel first and then Adams parcel later. If a hotel goes on Main Street, then the community would put pressure to realize the equivalent Cultural Center back on Adams . . . which was proven financially and logistically impractical.

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Thus, what is the best use of the City's assets to enhance vitality of St, Helena while addressing our long-term fiscal viability?​  ANSWER: A Cultural Center on Main Street financed by the sale of Adams to a luxury resort! It's the ultimate alignment of interest between the Community, the Downtown, the City's treasury and essential Visitors!