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City staff consider hotel feasibility study; chamber reports new and renovated businesses
Summary
City staff outlined the scope and cost of a proposed hotel feasibility study (estimated $10,000–$20,000) to determine whether New London can support a branded, franchise hotel; the chamber reported several new leases and renovations including a new grocery and a planned $700,000 Taco Bell renovation.
City staff described preliminary work on a proposed hotel feasibility study and outlined how the study would be used to attract local franchise investors to develop a brand‑name hotel in New London.
City Administrator Chad said consultants such as Core Distinction Group typically perform municipality‑led hotel feasibility studies and that such studies commonly cost between $10,000 and $20,000. He said the consultant advised that a community typically needs demand to support roughly 50 rooms as a “magic number” for a viable project; if a study suggests fewer rooms, consultants typically revisit the analysis in two to three years.
The nut graf: The committee discussed whether a study would identify unmet demand or simply lead to market saturation; committee members stressed any study should examine weekday business demand and not just weekend tourism.
Chad said the feasibility study is usually used by local franchisees and private investors (banks, private investors) to assemble financing; the city must initiate the independent study for credibility. Chad also noted the study’s shelf life: if a study shows under‑threshold demand (for example, 40 rooms), the consultants would typically re‑assess in about 2½–3 years.
April, representing the chamber, provided business updates: Nikamax Grocery will open March 1 at 1200 North Shawano Street, Suite 5; Taqueria Luciano is renovating and aims to reopen by Irish Fest weekend; Taco Bell owners have signed a long‑term lease and plan renovations totaling roughly $700,000 in 2025; and Ameriprise Financial closed one local office in December 2024, leaving a downtown vacancy. April said the chamber lists commercial vacancies on its website regardless of chamber membership.
Clarifying details: Chad reported that Core Distinction Group indicated the typical study cost range and the 50‑room benchmark; he said some or all of the study cost might be eligible for reimbursement under certain programs but made no commitments. A committee member reported that one local hotel has 49 rooms and another has 38 rooms (as cited in the meeting); the consultant’s 50‑room benchmark informed the committee’s consideration.
No formal action was taken on the hotel feasibility study during the meeting; staff will gather proposals and report back as a future agenda item.
