Casey Council Meeting.1

Casey Council Considers Hotel Feasibility Study to Attract Development

Casey may commission a $15,000 hotel market feasibility study as the city explores bringing new lodging options to the community.

Economic Development Director Tom Daughhetee presented the proposal to the council Monday, explaining that developers require such studies before considering hotel projects in smaller markets.

“No developers will come here unless we have one of those,” Daughhetee said. The study would be conducted by a firm recommended by James Art, who has been working on economic development initiatives in the region.

The feasibility process takes approximately 30 days, with a halfway point evaluation at two weeks. If the study determines Casey cannot support hotel development, the city would pay only half the cost – $7,500. The full amount is due only if the complete study shows the market can support a hotel.

“You’re definitely spending $7,500 and you’re hoping to spend the next $7,500,” Daughhetee explained to council members.

The completed study would provide financial projections and proformas that could be presented to potential developers. However, funding for the study remains uncertain as the city works through its annual appropriations process.

Mayor Mike Nichols said the finance committee needs to complete budget allocations before determining where funding for the study might come from. The appropriations must be finalized by the end of July.

“We got to have the money before you raise the budget is my point,” Nichols said, noting that the study would likely fall under economic development funding, which has already been allocated for other projects.

The council did not take formal action on the proposal Monday but expressed general support for gathering more information about the city’s hotel development potential.

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