August 16, 2001




Mr. James O. Pickard, Chairman

Lancaster County Convention Center Authority

50 North Duke Street

Lancaster PA 17604


Dear Chairman Pickard:


A number of our members attended the Lancaster County Convention Authority meeting on Wednesday, August 8th. Thank you and your fellow board members for a most informative discussion. We are encouraged that with your continued strong leadership the best possible Convention Center will be developed for the good of all Lancaster County.


We experienced SMG’s proposal first hand and found their presentation compelling. We left the meeting optimistic that SMG’s expertise in operating similar Convention Centers coupled with Interstate’s proven track record in successful hotel management will provide the Penn Square Project the best management team possible.


As the Authority continues it’s important work we urge you to consider these points, which we believe, are crucial to the success of the project.


1.      Select a separate and distinct management company for the Convention Center to prohibit a conflict of interest with the proposed hotel.


2.      Select the most qualified company to operate the Convention Center, in our opinion, SMG because of their current track record of managing 95% of all publicly owned convention centers and their reputation of having never lost a management contract.


3.      Insure that the adjacent hotel is a four star full service hotel with a minimum of 15,000 square feet of banquet and meeting space. This space must be within the hotel and entirely separate from the Convention Center.


4.      Remain focused on the purpose of the Convention Center which is to maximize economic impact for the County and city by attracting new conventions and visitors to Lancaster.




Page 2

Mr. James O. Pickard, Chairman

August 16, 2001



5.      Utilize the vast experience of SMG to consider hotel flags other than Marriott, if necessary. Companies such as Hilton, Westin, Omni, Sheraton and Hyatt all have strong market presence in the Hotel Convention business.


6.      Utilize SMG’s current database of conventioneers and their marketing experience to attract new future prospects that all could consider Lancaster as a destination.


7.      Appoint an Executive Director of the Authority that is highly qualified in Convention Center management and marketing.  


We would welcome the opportunity to provide additional input to the Authority or to meet and discuss the items we have outlined today. Thank you for your continued diligence.






Steven Bretherick, President, GLHMA                     Sue Whittaker, Secretary, GLHMA

Horst Property Management                                       Mill Stream Country Inn

P.O. Box 3330                                                                        170 East Brook Road

Lancaster PA 17604                                                  Smoketown, PA 17576

717 581-9871                                                              717 299-0931




Barry Kidd, Vice President, GLHMA                       Trudy Carrington, Treasurer, GLHMA

Country Inn of Lancaster                                           Country Inn & Suites Lancaster

2133 Lincoln Highway East                                       2101 Oregon Pike

Lancaster PA 17601                                                  Lancaster PA 17601

717 393-3413                                                              717 299-6440




Page 3

Mr. James O. Pickard, Chairman

August 16, 2001

Cc: Willie Borden

        E. Bradley Clark

        Camilla L. Collova

        Christina L. Hausner

        W. Garth Sprecher

        Paul E. Wright

        Bon Butera

        Fritz Smith         

        Pete Shaub

        Paul Thibault

        John Barley

        Ron Ford

        Gib Armstrong

        Nevin Cooley