MN - Plymouth: SPECIAL COUNCIL MEETING

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SPECIAL COUNCIL MEETING

Special Council Meeting 1 of 1 December 12, 2017

CITY OF PLYMOUTH

AGENDA SPECIAL COUNCIL MEETING

DECEMBER 12, 2017, 5:00 p.m. MEDICINE LAKE CONFERENCE ROOM

1. CALL TO ORDER

2. TOPICS

A. Hotel licensing

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B. Set future Study Sessions

3. ADJOURN

SPECIAL COUNCIL MEETING

December 12, 2017

Agenda Number: 2A

To: Dave Callister, City Manager

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Prepared by: Mike Goldstein, Public Safety Director

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Reviewed by: Dave Callister, City Manager

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Item: Discuss the Amendment of Chapter 4 of the City Code to Add Section 435 Requiring Business Licenses for Transient Accommodations

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1. ACTION REQUESTED: Discuss the amendment of Chapter 4 of the City Code to add section 435 requiring business licenses for transient accommodations.

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2. BACKGROUND: City staff is seeking input from the City Council regarding a proposed amendment to Chapter 4 of the City Code, which would enable the

City to require a business license from those businesses operating transient accommodations i.e. hotels and motels.
Tagged Passions:hotel, business license, license, council, and business

Over the last several years, the City has expended a considerable amount of time and resources responding to a variety of public safety and public

health-related concerns at the various hotels and motels within the community. While a number of tactics have been established and acted upon by personnel from both the Public Safety and Community Development Departments to better engage with these businesses, the calls for service have not diminished and in fact, in certain locations, have increased.
Tagged Passions:development, hotel, health, community development, personnel, business, Development, and public safety

Therefore, staff has researched additional measures, including the proposed ordinance language, which would yield enhanced accountability from these

businesses and the better management of their properties resulting in a safer environment. The proposed ordinance is predicated upon a similar ordinance that the City of Brooklyn Center enacted last year.
Tagged Passions:accountability, Conservation, ordinance, environment, and business

The proposed ordinance establishes a required business license to operate a transient accommodation site in the City of Plymouth. The purpose is to

ensure that hotels and motels are implementing measures to improve the safety of their properties and to discourage criminal activity within their facilities. Further, a tiered system would be employed whereby those businesses that are compliant with the established standards within the ordinance, and fall within a certain range of calls for service, would not result in additional conditions imposed upon the business. However, for those businesses that are not compliant with the stipulated standards and/or fall outside of the range for calls for service, then additional conditions and fees will be imposed onto the business.
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The standards are defined in the proposed ordinance and are in conjunction with the industry s best practices established by the Center for

Problem-Oriented Policing. The range for calls for service is measured upon a per-lodging unit calculation to avoid larger properties from being disproportionately
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represented. A defined property inspections process is also outlined in the proposed ordinance as is a validation procedure to properly vet and

account for qualified calls for service. The ordinance provides for both penalties and an appeals process as well.
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Finally, staff has not initiated any discussions regarding this proposed ordinance with the hotels and motels. Staff wanted to hear from the City

Council first to learn whether there is a desire to move this concept forward. If the direction is to study this notion further, then staff will meet with all of the hotel and motel managers to share the proposed ordinance with them and to seek their input, which would be reported back to the City Council at a later date.
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3. BUDGET IMPACT: Staff is seeking direction from the City Council to determine the appropriate licensing fees. For example, in the City of Brooklyn

Center, the fees are as follows: 150 for Level 1, 200 for Level 2 and 300 for Level 3. Staff believes that the license fees for Level 2 and 3 businesses should be higher as the fees would assist in off-setting the required staff time to manage this program and the more problematic properties.
Tagged Passions:license, council, program, business, and budget

4. ATTACHMENTS: Proposed Ordinance Amendment Report on Plymouth Hotels Hotel Incident Activity Report, 5-Year Analysis

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CITY OF PLYMOUTH

HENNEPIN COUNTY, MINNESOTA

ORDINANCE NO. 2017-XX

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ORDINANCE AMENDING CHAPTER 4 (BUILDING, HOUSING AND CONSTRUCTION REGULATIONS) OF THE CITY CODE TO ADD SECTION 435 REQUIRING BUSINESS LICENSES

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FOR TRANSIENT ACCOMMODATIONS

THE CITY OF PLYMOUTH ORDAIN:

Section 1. Amendment of City Code. Chapter 4 of the city code of the City of Plymouth, Minnesota, is hereby amended by adding the following:

435.00. Findings and Intent.

Subd. 1 The City of Plymouth (City) desires that hotel and motel owners provide safe Transient Accommodations.

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Subd. 2 The City Council determines it is in the best interests of the City to take a proactive approach to deterring and minimizing criminal

activity and minimizing safety concerns at the City's hotels and motels.
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Subd. 3 The City Council desires to encourage and foster cooperation between hotel and motel operations and the City, so calls for service initiated

by the hotel or motel operator should not be included in the calls for service calculations for the purposes of these regulations.
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Subd. 4 The level of criminal activity occurring at hotels and motels in the City is a real and compelling concern to the City Council, residents,

visitors, and the hotel and motel industry itself.
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Subd. 5 A review of the police service calls regarding criminal activity demonstrates that some hotels and motels in the City are responsible for a

disproportionate number of those calls.
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Subd. 6 It is reasonable to require hotels and motels with a higher number of police calls for service to employ certain measures that have been

shown to be effective in deterring crime.
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Subd. 7 To account for differences in the number of lodging units among the hotels and motels, and to avoid larger properties being

disproportionately represented, it is appropriate to consider the number of calls for service based on a per-lodging unit calculation for the purposes of determining the level of business license required.
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Subd. 8 The license required by this ordinance is a business license issued under the City's general police powers and is not intended to regulate

items addressed in a Minnesota Department of Health required of hotels and motels under Minnesota law.
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435.05. Purpose. It is the purpose of this Section 435 to ensure that hotels and motels (referred to in this Section as Transient Accommodations) are

taking steps and implementing measures as may be needed to improve safety and discourage the use of their facilities for criminal activities in order to protect the safety of their guests and the public. Those owning and operating transient accommodations that are safe, secure, free from unreasonable noise, nuisances and threats to their safety and security.
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435.10. Business License Required. It is unlawful for any person, firm or corporation to operate a Transient Accommodation in the City without a

Transient Accommodation business license issued pursuant to this Section. A separate business license is required for each Transient Accommodation Property.
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435.15. Definitions.

Subd. 1. Annual Calls for Service. The aggregate total of all calls for service to a Transient Accommodation property in a calendar year divided by

the total number of Lodging Units in the Transient Accommodation as determined by the City.
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Subd. 2. Call for Service.

A. Any report of criminal activity made to the City from or concerning a Transient Accommodation in connection with an incident occurring at that

transient accommodation property, except calls originating from the owner, manager or other agent of the owner of the Transient Accommodation Property unless they knew or reasonably should have known that such an incident would occur based upon prior experience with the person or group and with that knowledge they nevertheless allowed the person or group to return to the Transient Accommodation; or
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B. Any incident observed by the City concerning a Transient Accommodation Property and is responded to by the City.

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C. Only a call for service that is verified by the responding City personnel as being a valid call for service regarding criminal activity by a guest

or employee of the Transient Accommodation or violations of City Code shall be included in the annual calls for service calculation for the purposes of this Section. Criminal activity means conduct which is prohibited by statute or City ordinance and for which the actor may be sentenced to imprisonment.
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D. Level I Transient Accommodation. Any Transient Accommodation who when checked, has no more than three violations of the Minimum Transient

Accommodation Standards (Section 435.50) in any business license period or whose annual calls for service are less than .50 calls per Lodging Unit.
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E. Level II Transient Accommodation. Any Transient Accommodation who when checked, does not comply with the Minimum Transient Accommodation Standards

(Section 435.50) four times in any business license period or whose annual calls for service are at least .50 calls per Lodging Unit, but less than .75 calls per Lodging Unit.
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F. Level III Transient Accommodation. Any Transient Accommodation who when checked, does not comply with the Minimum Transient Accommodation

Standards (Section 435.50) five times in any business license period or whose annual calls for service are at least .75 calls per Lodging Unit or greater.
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G. Lodging Unit. One self-contained unit within a Transient Accommodation designated by number, letter, or some other method of identification that

is designed or used for overnight accommodations. A Lodging Unit shall not include areas or rooms not utilized for overnight accommodations such as banquet rooms, meeting rooms, business centers, pool areas, and workout rooms.
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H. Transient Accommodations. Any facility such as a hotel, motel, resort, or any other facility or place offering six or more lodging units to

guests, but not including jails, hospitals, care facilities, senior living centers, residential treatment facilities, prisons, detention homes, and similar facilities.
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I. Transient Accommodation Property. Any land containing a facility for transient accommodation including any associated parking areas, recreation

areas, loading areas, or other amenities, located on the same parcel of property.
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435.20. Restrictions on Issuing Business Licenses. A Transient Accommodation business license shall not be issued or renewed in any of the following

circumstances exists:
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Subd. 1. The application submits an incomplete business license application or fails to submit the required application fee;

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Subd. 2. The applicant was not truthful in any of the information provided to the City as part of its request for a business license;

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Subd. 3. The Transient Accommodation is not in compliance with the requirements of this Section, with any condition placed on its current Transient

Accommodation business license, or with any applicable federal, state, or local law, rule, regulation, ordinance;
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Subd. 4. The Transient Accommodation Property is not in compliance with any applicable federal, state, or local law, rule, regulation, or ordinance

(including but not limited to, health, fire and elevator);
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Subd. 5. Business licenses shall be issued only to persons free of convictions of prostitution or offenses which involve moral turpitude; or

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Subd. 6. Has an employee that is required by this ordinance to complete a background check that does not comply with the above stipulations and this

Section.
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435.25. Business Licensing Process and Renewal.

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Subd. 1. A new Transient Accommodation shall obtain a Transient Accommodation business license prior to opening for business. A new Transient

Accommodation that had not previously operated within the City shall initially qualify for a Level I Transient Accommodation business license. The City may charge a reduced business license fee for a new Transient Accommodation business license based on the number of months remaining in the particular business licensing period.
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Subd. 2. On or before February 1st, of each year the City will notify each existing Transient Accommodation in writing of their annual calls for

service for the previous year and the level of Transient Accommodation business license for which they must apply. Applications for a business license renewal shall be submitted to the City at least 30 days prior to the business license expiration date.
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Subd. 3. The Transient Accommodations must obtain the required level of Transient Accommodation business license from the City by no later than May

1st each year. All requirements applicable to the particular level of business license and any additional conditions placed on the business license must be completed and fully implemented by the business licensee by August 1st. Failure to comply with the requirements applicable to the business license level, or any additional conditions issued by the City Council, shall constitute sufficient grounds for revocation, suspension, or non-renewal of the Transient Accommodation business license.
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435.30. Property Safety Inspection. Pursuant to this Section, the City shall make safety inspections to determine the condition of Transient

Accommodations for the purpose of enforcing the property maintenance code and the standards stipulated in this Section. The City may enter, examine and survey at all reasonable times all Transient Accommodation lodging
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units, common areas, and operational areas. Safety inspections of the Lodging Units will occur after obtaining consent from the occupants of the

Lodging Units. In the event that an occupant does not consent to entry by the City, and if there is probable cause to believe that an inspection is warranted, then application may be made to the court for an administrative or other search warrant for the purpose of inspecting the Lodging Unit and premises.
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Subd. 1. A minimum of 15 of all Lodging Units shall be inspected during an annual inspection. The determination of which lodging units to be

inspection will be made by the City to ensure that all Lodging Units will be inspection periodically.

Subd. 2. All Transient Accommodation common areas and operational areas shall be include in every safety inspection.

Subd. 3. The property safety inspection shall be performed annually and is required prior to the issuance of a new Transient Accommodation business

license or the renewal of an existing Transient Accommodation business license.
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Subd. 4. All corrective action stipulated as part of the property safety inspection shall be completed in the timeframe stipulated in the notice

provided by the City. The corrective action shall occur and be approved by the City prior to issuance or renewal of a Transient Accommodation business license.
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Subd. 5. During the annual Property Safety Inspection, City staff will inspect the following:

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A. Provisions in the property maintenance code. B. Landscaping (trees, ground cover plants, cleanliness and maintenance, around

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stairways) a. Ground cover plants will not exceed three feet in height b. Plants under windows must be maintained at a height that is below the

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windowsill c. Trees must be trimmed so the lower branches are at least give fee off the ground. d. Landscaping cannot interfere with lighting

distribution.
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C. Units (each unit). a. Door locks /dead bolts. b. Window locks on all windows. c. Number clearing identified at each unit. d. Key control e. Eye

views in each door f. Striker plate screws.
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D. Common Areas a. Landscaping b. Surveillance (if required by this ordinance or provided by the property owner) c. Trespass signs at all entrances

and/or placed in locations that can be clearly seen
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by all guests and visitors of guests.

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E. Perimeter a. Landscaping b. Surveillance (if required by this ordinance or provided by the property owner)

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F. Lighting a. Common areas b. Building (s) c. Trash enclosures d. Entry and Exit points e. Exterior of units f. Parking lots g. Laundry room

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435.35. Business Licensee Fee. The fee for a Transient Accommodations business license shall be as set forth by City Council resolution. The City

Council may establish a separate fee for each business license level.
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435.40. Business License Period. All Transient Accommodations business licenses shall expire on April 30th of each year.

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435.45. Transfer of Business License. A Transient Accommodation business license cannot be transferred to a new owner.

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435.50. Minimum Transient Accommodation Standards. The following minimum standards shall be maintained by each Transient Accommodation business

license holder:
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Subd. 1. Implement clear check-in policies (that must include, at a minimum, the following:

A. Require all guests and all visitors, over the age of 17, to provide a photo ID, provide home address and provide make, model and license plate

number of the automobile that will be parked in the lot. This information shall be maintained for 365 days.
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B. Rent rooms only to people 21 years old or older. C. Guests shall guarantee payment with a credit card to reserve a room as stipulated in

Section 1180 of City Code.

Subd. 2. Provide training, at least annually, to all staff members in cooperation with the City of Plymouth.

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Subd. 4. Provide name, address, e-mail and telephone information of all owners and those with financial interest of the Transient Accommodation.

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Subd. 5. Provide name, address, e-mail and telephone information of all managers and other responsible employee of the Transient Accommodation.

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Subd. 6. Require a manager or other responsible employee to be on premises at all times.

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Subd. 7. Inspect rooms of guests who refuse maid service or behave suspiciously.

435.55. Level I Transient Accommodation. A Level I Transient Accommodation is eligible for a Transient Accommodation business license without needing

to comply with any special requirements beyond complying with any conditions the City Council may impose on the business license. The business license shall be issued upon application, payment of applicable fees, safety inspection, current certificates for fire and elevator inspections, and proper licensing with all applicable government agencies, including the Minnesota Department of Health.
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435.60. Level II Transient Accommodation. A Level II Transient Accommodation is required to meet the following special requirements, designed to

deter crime, in order to be eligible for a Transient Accommodation business license, and shall comply with any conditions the City Council may impose on the business license.
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Subd. 1. Submit a management plan to the City detailing steps the establishment intends to take to reduce criminal activity.

Subd. 2. Consult with the City to obtain such inspection services and advice regarding crime prevention as may be needed to address the types and

calls for service made to the Transient Accommodation Property.
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Subd. 3. Keep City apprised of activity occurring on the transient accommodation property.

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Subd. 4. Install and operate a surveillance camera, with a recorder, in the lobby at all times.

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Subd. 5. Undergo a City crime prevention assessment of the Transient Accommodation property.

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435.65. Level III Transient Accommodations are required to meet the following special requirements, designed to deter crime, to be eligible for a

Transient Accommodations business license, and shall comply with any conditions the City Council may impose on the business license.
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Subd. 1. Conform to the special requirements set forth in 435.60 for a Level II Transient Accommodation.

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Subd. 2. Conduct background checks on all owners, managers, and employees of the Transient Accommodation.

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Subd. 3. Hold semi-annual training sessions assisted by the City for all employees.

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Subd. 4. Provide 24-hour front desk personnel that is either a manager, an employee that has the ability to contact a manager at any time necessary,

and/or has access to the surveillance system and information stipulated in this ordinance.
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Subd. 5. Enforce the following guest rules:

A. Lodging units cannot be rented for less than a six-hour period;

B. Prohibit guests from producing loud noises that unreasonably disturb the tranquility of the other guests or those adjacent to the Transient

Accommodation Property; and
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C. Alcohol may not be consumed in Transient Accommodation common areas except for designated banquet or reception rooms or areas.

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Subd. 6. Issue parking passes to all vehicles allowed to park on the Transient Accommodation Property, with each pass marked with an issue date and

expiration date.
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Subd. 7. Remove all graffiti and repair all vandalism within seven (7) days of occurrence.

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Subd. 8. Install lighting in all common areas with minimum maintained lighting of 1.5 foot-candles at ground level.

Subd. 9. Install and operate video monitoring equipment in all parking lots on the Transient Accommodation Property that are monitored and recorded

at the front desk at all times.
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Subd. 10. Have a security guard on the premises every day from 6:00 pm until 6:00 am.

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Subd. 11. Submit to scheduled semi-annual audits by the City to verify compliance with the above-referenced requirements.

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435.70. Background Checks.

Subd. 1. To the extent a Transient Accommodation is required by this Section to conduct background checks on its owners, managers, and employees,

such background checks must comply with and include the following:
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A. A Minnesota statewide criminal history check covering at least the last three years, which must be conducted by a company providing criminal

history check services utilizing the most recent update of Minnesota criminal history files;
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B. A statewide history check from the person's previous states of resident covering the last three years if the person has not resided in Minnesota

for at least the three years preceding the history check; and
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C. A criminal history check conducted in all seven counties in the Twin Cities metropolitan area (counties of Anoka, Carver, Dakota, Hennepin,

Ramsey, Scott and Washington) covering at least the last three years, including all misdemeanor, gross misdemeanor, and felony convictions.
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Subd. 2. The Transient Accommodations shall retain the criminal history check information for the duration of the person's employment, but in no case

less than two years, and shall make the information available for inspection upon request by the City Manager or the City Manager's designee.
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435.75. Revocation and Suspension of Business License. A Transient Accommodation business license may be revoked, suspended, or not renewed by the

City Council, upon recommendation of the City Manager, in accordance with this Section.
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Subd. 1. The City Council may revoke, suspend, or not renew a Transient Accommodation business license upon any of the following grounds:

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A. A false statement, misrepresentation, or fraudulent statement on any application or other information or report required by this Section;

B. Failure to pay the application fee, fine, penalty, reinstatement fee, special assessment, real estate taxes, or other financial claim due to the

City under this Code;
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C. Failure to comply with any of the special requirements imposed in this Section applicable to the particular business license level;

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D. Failure to comply with any of the conditions placed on the business license by the City Council;

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E. Failure to implement the management plan, if one is required, for the Transient Accommodation.

F. Failure to continuously comply with any zoning, health, building, nuisance, or other City Codes, including failing to comply with any corrective

orders issued within the time specified in the order;
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G. Failure to obtain or maintain any licenses required for the Transient Accommodation; or

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H. Failure to comply with any other applicable federal, state, or local law, rule, regulation, or ordinance.

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Subd. 2. A decision to revoke, suspend, or not renew a Transient Accommodation business license shall be preceded by written notice to the applicant

or business licensee of the alleged grounds therefore and the applicant or business licensee will be given an opportunity to request a hearing before the City Council before final action is taken to revoke, suspend, or not renew the business license. An applicant or business licensee waives its right to a hearing by failing to submit a written request for a hearing to the City within ten (10) days of the issuance of the written notice. If a timely request for a hearing is received, the City Council shall conduct a hearing at the next regularly scheduled City Council meeting and provide the applicant or business licensee an opportunity to be hear.
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Subd. 3. The written decision to revoke, suspend, or not renew a Transient Accommodation business license shall identify the specific grounds for the

decision. Upon issuance of the written decision, no Lodging Unit within the Transient Accommodation may be offered or used for any period of time by guests until a new Transient Accommodation business license is issued.
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435.80. Reapplication After Business License Action. Reapplication for a Transient Accommodations business license after the City Council has

revoked, suspended, or not renewed a business license shall be in accordance with this Section.
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Subd. 1. A Transient Accommodation business license may be suspended for up to ninety (90) days and may, after the period of suspension, be

reinstated subject to compliance with this Section and any conditions imposed by the City Council at the time of suspension.
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Subd. 2. A Transient Accommodation business license revoked or not renewed by the City Council will not be reinstated or issued until the owner has

applied for and secured a new Transient Accommodation business license and complied with all conditions imposed at the time of revocation or non-renewal. In no case shall a Transient Accommodation business license revoked or not renewed be allowed to be reinstated or issued for a period of ninety (90) days. The City Council may impose a period following the revocation or non-renewal of the owner's previous business license during which a new Transient Accommodation business license may be submitted. A decision not to renew a Transient Accommodation business license may take the form of a suspension or revocation.
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Subd. 3. An application for a new Transient Accommodation business license following the revocation, suspension, or non-renewal of the business

license must be accompanied by a reinstatement fee, as specified by City Council resolution, in addition to all other application and related fees.
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Subd. 4. The conditions of approval of any subsequent application for a business license to operate a Transient Accommodation on the same property

following a period of revocation or denial of renewal of a Transient Accommodation business license shall be based upon the Transient Accommodation property's history or annual calls for service prior to the revocation or non-renewal.
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Subd. 5. No subsequent application for a Transient Accommodation business license on the same property following a period of revocation or

non-renewal shall be approved unless the applicant presents a corrective action plan that is approved by the City to help ensure the conditions and causes of the prior revocation or non-renewal are appropriately addressed. Implementation of, and compliance with, the corrective action plan shall be a condition of the license.
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435.85. Violations

Subd. 1. Any person, firm, or corporation who violates any provision of this Section is, upon conviction, guilty of a misdemeanor. The penalty that

may be imposed for a misdemeanor is a sentence or not more than ninety (90) days or a fine of not more than 1,000, or both. Each day upon which a violation or this Section occurs constitutes a separate offense.
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Subd. 2. Nothing in this Section shall be construed as a waiver of any applicable state license requirement or from compliance with any applicable

civil and criminal laws.
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435.90. Initial Business Licenses. Persons, firms, and corporations currently operating a transient accommodation within the City of Plymouth shall

obtain a Transient Accommodation business license from the City within forty-five (45) days from the effective date of this ordinance. The level of Transient Accommodation business license will be calculated based on the annual calls for service from the previous year. Business licenses for subsequent years must be obtained in accordance with the timelines established in this Section.
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Section 2. Effective Date. This amendment shall take effect immediately upon its passage.

APPROVED by the Plymouth City Council this XXXX day of XXX, 2017.

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__________________________________

Kelli Slavik, Mayor

ATTEST:

_______________________________

Sandra R. Engdahl, City Clerk

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Plymouth has a significant hotel presence that includes seven hotels, 986 rooms and a total property valuation of over 43 million. The hotel market

represents one of the main places visitors, either for work, recreation or pleasure, experience Plymouth. It is essential that the city s hotels provide a safe experience to the traveling public, both for the sake of the visitors and for the community s reputation and quality of life. Unfortunately, there have been a number of well documented incidents that merit a deeper review of the city s hotel market. This report provides city officials trend information that will be useful in further consideration or development of new policies regulating the market, all with the intent of protecting public safety and other community interests.
Tagged Passions:development, hotel, travel, market, property, Development, recreation, and public safety

The first step in this process was to analyze data from the Police Department regarding police incidents to each of Plymouth s seven hotels. In

October, at my request, Jared Gilbert, Public Safety Analyst, began gathering historical data on all reported police incidents at Plymouth hotels. This data breaks down in detail the types of incidents at each hotel from 2011 through 2015. The Plymouth Hotels Incident History Report as prepared by Plymouth Public Safety is included as a supplement to this report.
Tagged Passions:hotel, historical, history, and public safety

This report s objective is to not only look at police calls for service, but to take a much broader look and to answer several basic questions:

Tagged Passions:public safety

1. How many rooms does each hotel have? 2. What is the market value of each hotel? 3. What is the market value of each hotel room? 4. What amount

does each hotel pay to the city in annual property taxes? 5. What is the police call distribution per hotel? 6. Do the city property taxes collected from each hotel cover the cost of providing annual police services? 7. Is there a correlation between hotel room rates and the number of police calls? 8. Have the hotel owners reinvested in their buildings and if so, how much has been reinvested?
Tagged Passions:Taxes, hotel, rates, property tax, services, market, property, taxes, and public safety

This report gathers data regarding property valuation, tax impacts, service demand, and room counts to provide a broader perspective. While much of

the information draws correlations, there are questions of causation which are not directly addressed here. While no single measure should be used to infer action be taken, the data, in its totality, begins to demonstrate trends that may merit further consideration and action.
Tagged Passions:Taxes, property, and taxes

For clarification purposes, please note that the Ramada has been rebranded twice over the last several years from the Kelly Inn to the Best Western

Inn to the Ramada.
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Memorandum

To: Mayor and City Council

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From: Dave Callister, City Manager

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Date: November 23, 2016

Item: Report on Plymouth Hotels

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How many rooms does each hotel have? The City of Plymouth currently has seven hotels with 986 rooms that were constructed between 1973 and 2007 and

allocated as follows:
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What is the market value of each hotel? Per the Hennepin County Assessor, the total market value for 2016 for all seven hotels is just over 43

million, an average of 6.1 million per hotel, with a high of 13 million for the Crowne Plaza and a low of 2 million for the Red Roof Inn. The market values for Plymouth hotels have been stable since 2010. Exceptions to this include the Country Inn Suites which has average annual market value increases of 4.4 and the Comfort Inn with average annual value increases of 3.1 .
Tagged Passions:hotel and market

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What is the market value of each hotel room? The 2016 market values are broken down per hotel room which illustrates that the city has a wide range

of product in its hotel room inventory. The market value per room ranges from a low of 16,931 for the Red Roof Inn to a high of 87,714 for the Residence Inn. The age and type of construction for each hotel has some correlation with market value as does the amount of reinvestment or lack of reinvestment (maintenance/upgrades) in each property.
Tagged Passions:hotel, construction, market, and property

What amount does each hotel pay to the city in annual property taxes? The amount of city property taxes per hotel was calculated and divided by the

number of rooms, resulting in a total city property tax per hotel room. Each room in the Red Roof Inn paid 57 in city property taxes in 2016. Each room in the Days Inn paid 69 in city property taxes in 2016. The highest city property taxes paid per hotel room was the Residence Inn at 303.
Tagged Passions:Taxes, hotel, property tax, property, and taxes

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The total annual city property taxes collected from each hotel follows a similar pattern with a high of 45,569 for the Residence Inn and a low of

6,633 for the Red Roof Inn. The average is 21,213.
Tagged Passions:Taxes, hotel, property tax, property, and taxes

What is the police call distribution per hotel? The following charts compare the percentage of the total hotel rooms city-wide versus the percentage

of police calls for each hotel. For example, the Red Roof Inn has 12 of the total hotel rooms in the city while they received 43 of the total police calls to hotel properties. Conversely, the Residence Inn has 12 of the total hotel rooms and received only 5 of the total police calls in 2015.
Tagged Passions:hotel and public safety

Do the city property taxes collected from each hotel cover the cost of providing annual police services? In order to obtain a general idea of the

cost of each police call, we created a simple formula to calculate the cost of each police call in Plymouth. This was done by taking an average of the total annual police budgets from 2011 to 2015 and dividing by the average annual city-wide police calls from 2011 to 2015. This calculation results in a cost of 247 per police call which was then multiplied by each hotel s average annual police calls from 2011 to 2015. The estimated cost for annual police calls varies from a low of 3,832 at the County Inn Suites to a high of 45,460 at the Red Roof Inn. There are many variables that are not accounted for in this methodology, but this ratio illustrates a simple means of relative cost allocation.
Tagged Passions:Taxes, hotel, property tax, services, property, taxes, public safety, and budget

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The next step calculated the five year average of city property taxes collected from each hotel to determine whether or not the cost of providing

police services exceeds the amount of city property taxes collected. The result of this exercise is that two hotels greatly exceed what is collected in property taxes versus police services received (calls). The Red Roof Inn has a negative variance of 43,404 and the Days Inn a negative variance of 19,041. For example, the Red Roof Inn received 22 times more in police services than what they paid towards police property taxes. Similarly, the Days Inn received nine times more in police services than what they received. Two hotels (Ramada, Comfort Inn) also had small negative variances while the Residence Inn, Country Inn Suites and Crowne Plaza had annual positive balances, meaning the cost of providing police services was less than what the city received in property taxes for this purpose.
Tagged Passions:Taxes, hotel, property tax, services, property, taxes, and public safety

It is important to keep in mind that in addition to police services, city property taxes cover a broad range of services including streets and public

works, parks and recreation, fire, community development and general services.
Tagged Passions:Taxes, Public Works, development, property tax, community development, public works, services, streets, parks, property, taxes, Development, recreation, and public safety

Is there a correlation between hotel room rates and the number of police calls? When reviewing police calls and hotel room rates, there appears to be

similar trends as illustrated in earlier questions. Based on daily room rates, the graph below shows a direct correlation between lower priced hotels and higher volumes of police calls. Conversely, there is also a direct correlation between higher priced hotels and lower police calls.
Tagged Passions:hotel, rates, and public safety

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Have the hotel owners reinvested in their buildings and if so, how much has been reinvested? Building permit data from 2006 through 2016 was reviewed

to determine the amount of reinvestment in each hotel over this time span. For comparison purposes, we have excluded the Residence Inn because almost all of the permits issued were for new construction in 2007 ( 10.8 million). One hotel, the Comfort Inn has spent 957,000 on improvements to its adjoining restaurant (Axel s and Lucky s 13 Pub). We have excluded restaurant related permit values to obtain a better idea of reinvestment amounts spent strictly on hotel rooms and common areas.
Tagged Passions:hotel, restaurants, and construction

Each hotel has reinvested at different rates over the last 10 years. Certainly, the age of the building as well as how well it has been maintained

are both factors that have some correlation to how much or how little is reinvested. The Comfort Inn has reinvested 948,793 ( 8,179 per room) since 2006 while the Days Inn has reinvested only 148,562 ( 1,338 per room) during this same period. Of the 148,562 in total permit value for the Days Inn since 2006, 77,200 or 52 , has been issued in 2015 and 2016 for repairing water damage and mold, permits for what most would consider emergency repairs, not reinvestment in the property.
Tagged Passions:Utility, hotel, rates, emergency, property, utility, and water

At this time, the data presented is for informational purposes only and includes data for all Plymouth hotels. The council may wish to review

additional information, discuss this matter further or consider amending the nuisance ordinance to include a system based on tracking and penalizing the number of violations. There may be other ideas to explore that would address hotel management behavior and encourage reinvestment with the ultimate goal of making our hotels and community safer. Please let me know if you are interested in scheduling a future study session on this topic.
Tagged Passions:hotel, council, ordinance, and behavior

For more specific data on police calls, please review the attached Hotel Incident Activity, 5-Year Analysis.

Tagged Passions:hotel and public safety

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Information Request Report

Plymouth Public Safety Department

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Jared Gilbert, Public Safety Analyst jgilbert@plymouthmn.gov 763.509.5673

Tagged Passions:public safety

11/20/2017 Page 1 of 4

Hotel Incident Activity

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5-Year Analysis

November 20, 2017

Contents Request

......................................................................................................................................................... 2

Results

........................................................................................................................................................... 2

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Information Request Report

Plymouth Public Safety Department

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Jared Gilbert, Public Safety Analyst jgilbert@plymouthmn.gov 763.509.5673

Tagged Passions:public safety

11/20/2017 Page 2 of 4

Request

This report was prepared in response to a request for summary and trend information on police activity

Tagged Passions:public safety

at local hotels. The analysis covers the last five full years of data for each hotel: 2011 through 2015 for

Tagged Passions:hotel

Days Inn and 2012 through 2016 for all other hotels. Additional annual incident activity volumes are

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reported here but not included in the calculations. A breakdown of call types is included across all

hotels, ranked by frequency of occurrence.

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Results

The most recent and complete five years of data for each hotel are highlighted green in this table. Days

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Inn was only operating at partial capacity for 2016 and closed for 2017. These years (highlighted

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orange) were not used in the five year average calculation for Days Inn. The grey colored cells are

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additional annual rate data and not used in the five year calculation.

2011 2012 2013 2014 2015 2016 2017 5 Year Average

Annual Rate

Red Roof Inn 1.13 1.47 1.41 2.11 2.06 1.47 1.28 1.70

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Days Inn 0.61 0.73 0.78 0.79 0.94 0.82 0.02 0.77

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Ramada Inn 0.30 0.33 0.38 0.37 0.47 0.52 0.61 0.41

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Comfort Inn 0.24 0.34 0.41 0.39 0.41 0.33 0.27 0.38

Tagged Passions:hotel

Crowne Plaza 0.14 0.16 0.29 0.27 0.21 0.19 0.30 0.22

Residence Inn 0.16 0.15 0.16 0.28 0.25 0.15 0.26 0.20

Tagged Passions:hotel

Country Inn Suites 0.08 0.09 0.08 0.05 0.18 0.13 0.19 0.11

Tagged Passions:hotel

0.0

0.5

1.0


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