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John Risio, USA Niagara
(716) 284-2556
Katie Krawczyk
Empire State Development
(716) 846-8247
12/9/2009
USA NIAGARA BOARD AUTHORIZES GRANT, NEW CONFERENCE AMBASSADOR PROGRAM
Red Coach Restaurant, Inc. to embark on a Hotel Expansion Project with the aid of the USAN Grant Program
The Board of Directors of the USA Niagara Development Corporation (USAN) met today in Niagara Falls and authorized the Niagara County Development Corporation (NCDC) to award a $100,000 grant to the Red Coach Restaurant, Inc. Hotel Expansion Project, through the USAN Grant Program. The Board also authorized USAN to enter into a Funding Agreement with Niagara University, Global Spectrum and the Niagara Tourism Convention Corporation (NTCC) for a new Conference Ambassador Program Initiative.
The Red Coach Restaurant, Inc. operates a full service restaurant and 19 luxury suites and guest rooms and 12 former offices at its location just 1,500 feet from the American Falls. Over the past few years, demand for room accommodations at the Red Coach has grown beyond the current building capacity. The company is embarking on an estimated $900,000 expansion project to capitalize on this growing demand by converting the 12 former office spaces into new guest rooms for overnight visitors. Also included in this expansion is a guest reception area, laundry area, new HVAC, electrical, plumbing, furniture and façade enhancement.
“The USAN Grant Program provides financial assistance to projects that facilitate economic development, create or retain jobs and result in the creation of tourism related development,” said USAN Chairman Dennis M. Mullen. “The USAN Board is pleased to support the Red Coach hotel expansion project, as it not only meets each of the aforementioned criteria of the Grant Program, but it also enhances one of Niagara Falls’ most distinctive and historic structures, while providing additional first-rate hotel accommodations to the City’s growing tourism base.”
This expansion effort will also add an additional four to six full-time positions to the Red Coach’s current staff of 20 full-time and 45 part-time employees. The proposed $100,000 grant will be used as reimbursement upon project completion to help offset a portion of the fixed capital improvements costs. The City of Niagara Falls is also contributing a $50,000 NFC Development Corporation Grant towards the project. Work is currently underway, with an estimated completion timeframe of early 2010.
Red Coach Owner Thomas Reese said, “I would like to thank the USA Niagara Board of Directors for their support of this hotel renovation project. USA Niagara’s grant is a key factor in making this project possible and I look forward to opening the additional rooms for our visitors to the downtown area.”
The USAN Grant Program was established in 2003 between USAN and the Niagara Economic Development Fund (NEDF), with NEDF reserving $2 million for the program. USAN’s role is to recommend specific projects for approval to be funded by the NCDC, as trustees of the NEDF.
The Conference Ambassador Program is a new initiative undertaken by USAN, Niagara University, Global Spectrum and NTCC to raise the profile, revenue and utilization of the Conference Center Niagara Falls (CCNF). An Ambassador Program would foster leads for prospective events at the CCNF from within the university community by seeking out members of organizations and associations who are in a position to issue an invitation on behalf of their city to host a future meeting.
“USAN is very pleased to be a partner in this Ambassador Program initiative, an important new component in furthering our marketing efforts for the Conference Center and the City of Niagara Falls,” said USAN President Christopher Schoepflin. “Niagara Falls is a highly recognized international destination, drawing millions of tourists annually. It is critical that we make the most of this distinction and showcase the City as a great place to host events and conduct business.”
The budget for the Ambassador Program will be $60,000 annually for three years, supporting program management, database development and administrative support. Under the Funding Agreement, USAN, Global and the NTCC will each fund an amount of $20,000 annually for three years to Niagara University. The program’s projected revenue is $295,000 in year one; $845,000 in year two; and $1.67 million in year three for a projected total revenue over three years at $2.81 million for an expenditure of $180,000.
As an administrative action, the Directors authorized USAN to amend the contract with Mark Cerrone, Inc. for costs related to the Wintergarden demolition project at 304 Rainbow Boulevard. An additional amount of $39,763 was requested to cover a number of unforeseen conditions were encountered in the field that required additional work.
Finally, representatives from Global Spectrum briefed the Directors on their first year of management of the Conference Center Niagara Falls, as well as outlining their 2010 operating strategy for Old Falls Street, including plans for events and marketing.
USAN, a subsidiary of Empire State Development Corporation, is solely dedicated to the support and promotion of economic development initiatives in Niagara Falls by leveraging private investment and encouraging growth and renewal of the tourism industry in the City of Niagara Falls. For more information, visit www.usaniagara.com.
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