City considers comprehensive hotel feasibility study

NEW LONDON – The city of New London is moving towards spending $7,000 to have a comprehensive hotel feasibility study completed by Core Distinction Group.
At its July 28 meeting, the New London Economic Development Committee approved recommending that the New London Common Council approve an agreement with Core Distinction Group for the completion of a comprehensive hotel feasibility study at a cost of $15,000. Half of that amount would be covered by a grant that the city received, and there would be a $500 reduction in the total cost if the city of Waupaca completes the same study at the same time. This would have the city paying $7,000 for the study.
The New London Common Council was scheduled to discuss the matter at its scheduled Aug. 18 meeting.
Committee meeting
At the Economic Development Committee meeting, New London City Administrator Chad Hoerth said he has been in communication with some hotel groups about potential interest in building a hotel in New London.

“There’s definitely interest, but to move forward they need a hotel feasibility study,” Hoerth said.
There is a grant available that would help finance a hotel feasibility study, Hoerth said.
The committee was presented an agreement with Core Distinction Group for a comprehensive hotel feasibility study. Hoerth told the committee that the cost of the study would be $15,000.
Hoerth added that through the Waupaca County Economic Development Corporation, there are tourism grant funding available. Hotel feasibility studies are eligible for those grant funds. Hoerth said he did apply for that grant and was awarded a grant that would cover 50% of the cost of the feasibility study.
“So, we do have a $7,500 grant that we can use towards this,” Hoerth said.
The city of Waupaca is also interested in having a hotel feasibility study completed, Hoerth said. He added that if New London and Waupaca can work on the feasibility studies at the same time there would be a cost savings available. This would represent a $500 discount on the feasibility study cost.
With the grant and the cost savings, Hoerth said the cost of the comprehensive hotel feasibility study would be around $7,000.
Ald. Tim Roberts asked if the city had $7,000 in its budget to cover the cost of a hotel feasibility study.
Hoerth said the funds are in the city’s budget in the Economic Development Reserve account.