"Performing Arts Center Business Plan"
Request for Proposals Performing Arts Center Needs Assessment and Business Plan City of Lansing, Michigan July 25, 2008 Request for Proposals Performing Arts Center Needs Assessment and Business Plan July 25, 2008 1.0 Introduction The Capital City of Michigan, Lansing, and its regional partners believe that Lansing must invest in its downtown to foster more cultural, educational and entertainment options to enlighten, educate and entertain our residents and visitors. Mayor Virg Bernero and the Lansing Economic Development Corporation (LEDC) seek a consultant to assist the City in making Lansing one of the premier Midwestern Capitol Cities. With tax dollars at a premium and tax payers closely watching their use, decisions to invest in publicly supported facilities need to make good business sense. Any discussion of new public facilities must consider the long-term consequences of such investment. In a perfect world, such investments by Cities would not require assuming long-term debt or perpetual operational subsidies. However experience has shown that few if any publicly owned cultural, educational or entertainment facilities are built debt free or operate in the black on an annual basis. Despite the fiscal realities, Cities continue to make such investments because these facilities generate returns to citizens, businesses and taxpayers in ways that are challenging to measure but real and beneficial. For example, the monies spent by people before, during and after visiting a facility have a significant economic impact on the local economy. Such facilities also can uplift community pride, providing a sense of identity and a positive image within the City. Thus the City and LEDC feel that prior to making any investments in cultural, educational or entertainment facilities we need a sound business plan to ensure success. 2.0 General Overview 2.1 Intent and Scope The City and LEDC invites proposals from qualified firms and/or consultants to develop a needs assessment and business plan for a Performing Arts Center (PAC) in downtown Lansing, Michigan. The concept of a PAC as we envision it includes a flexibility to host a wide variety of cultural, educational and entertainment offerings for citizens, students, visitors and others. 2.2 Demographics The Lansing metro area has a population of approximately 500,000 and is located in the south central lower peninsula of Michigan approximately one hour from and surrounded 1 by four other metro areas: Detroit/Ann Arbor, Flint, Grand Rapids and Kalamazoo/Battle Creek. Lansing’s City population is approximately 120,000 and the adjacent City of East Lansing is around 50,000. Michigan State University (MSU) is located 3 miles east of downtown Lansing with over 40,000 students and 15,000 faculty and staff. Cooley Law School, the country’s largest law school is located in downtown Lansing with approximately 3000 students. Lansing Community College with over 20,000 students is also in downtown Lansing. The downtown entertainment district includes museums, a convention center, exhibition hall and a minor league baseball stadium the seats over 10,000 people. 2.3 Existing and Planned Facilities Each of the other Michigan metro areas offer cultural, educational and entertainment attractions. Also, the Wharton Center an existing performing arts facility on the campus of MSU will soon undergo a major renovation and is expected to continue to host traveling Broadway Shows and other entertainment events. Additionally, the City of East Lansing plans to build a 400 seat black box type facility. Finally, MSU has received a major donation and will use it in part to build a new art museum on the MSU campus. 2.4 Opportunities in Lansing Downtown Lansing has great potential for cultural, educational and entertainment investment because: a) Downtown Lansing is a walkable economic environment that provides before-show dinner options, hotels and after glow selections all within a walkable distance. b) Downtown Lansing is the capitol city and has an obligation, as the gateway to state government and all its related firms and organizations, to provide its daily guests from around the region, state, country and world a world-class environment that readily and visibly displays the state’s greatness. c) Downtown Lansing is home to the region’s convention center business. Again, it is imperative, from a regional standpoint, that these daily visitors (and potential overnight stays and potential new convention business clients) see and feel, within a walkable distance, a new entertainment reason to select Lansing as its convention business home. d) The Lansing Tax Increment Finance Authority (TIFA) has the financial capacity to fund public investments in downtown Lansing. Also, we continue to seek an opportunity to work with the future needs of Lansing Community College, located downtown that may afford additional financing options especially through State of Michigan capital outlays. e) Downtown Lansing is experiencing a surge in the growth from corporate headquarters, high tech firms higher education and new residential development. The 2 insurance company Accident Fund of America is investing $180 million to build an new world headquarters in downtown. The Stadium District, a $12 million mixed use development across from Oldsmobile Stadium is complete and a great success. Other pending developments in the downtown include a 19 story condo project, a $60 million new green office building, a new City Market and other projects. f) Downtown Lansing, simply put, with its tall buildings, corporations, riverfront, Oldsmobile Stadium, convention center, capitol dome and population center, will be enhanced and improved, though the location of the cultural, educational and entertainment assets. 3.0 Scope of Services The City of Lansing is considering the need for new downtown cultural facilities to support local arts groups and drive downtown revitalization. There are a number of local arts organizations needing more and better space, and there is an opportunity to partner with local universities and colleges on the development and operation of new facilities. There is also a strong desire to develop facilities that support programs that attract younger audiences to the downtown area. We seek a consultant or firm to conduct a two-phase PAC planning project to be completed over a nine-month period. The first phase of work, the needs assessment, is intended to determine what facilities should be developed in terms of audience demand, user demand, relationship to existing facilities and the potential benefits and impacts of the project on the City of Lansing. The second phase is the development of a preliminary business plan that proposes how recommended facilities should be operated plus projections of financial performance and economic impacts on downtown Lansing and the region. 3.1 Phase I: Needs Assessment The winning consultant will first work with the City and LEDC to conduct a Needs Assessment which at a minimum will answer the following questions: a) Given the broad range of local performing organization needs: the Lansing Symphony, Boarshead Theater, Lansing Entertainment & Public Facilities Authority, Lansing Community College, etc., what features must a PAC have to meet their needs? b) In addition to our existing organizations, what other types of cultural, educational and entertainment offerings could and should we provide with a new PAC? c) Given the needs of our existing organizations and our desire to offer new types of arts and entertainment offerings downtown, what general features and capacities should our PAC have? 3 d) What potential PAC sites in the downtown area offer synergies, partnership, co- funding and multiple use opportunities? 3.2 Phase II: Business Plan At this point in the project, the Consultant will be expected to be making the transition from the feasibility stage to the business plan stage. Components of the plan are expected to include but not be limited to the following: a) A statement of goals, objectives and measures of success including a mission statement based upon the Needs Assessment. b) A description of the major partners, users and stakeholders, and their necessary roles, responsibilities and commitments. c) Physical descriptions, plans or renderings of the new and/or improved facility(ies). d) Identification of preferred location. e) Cost estimates for initial capital investments. f) An operational plan identifying ownership, management, operations, maintenance, marketing, sales and booking responsibilities including costs and revenues breakouts. g) A finance plan for the initial public and partner(s) investment. h) A fundraising plan to raise additional funds from other sources including the private sector or individual donors. i) A long-term sustainable funding or endowment plan to meet the future annual financial needs. j) Promotional materials necessary to secure financing, generate excitement, raise funds and build momentum for the project. 4.0 Bidding Information 4.1 Sealed Proposal Receipt Sealed proposals must be received and time-stamped at the Lansing Economic Development Corporation (LEDC) on or before 2 p.m. September 12, 2008. Proposals received after the specified due date and time will not be considered. Each respondent is responsible for timely delivery of their proposal. 4 Each respondent is responsible for assuring that the following identifying information appears on the outside of the envelope: a) “SEALED Proposal” notation b) Company or organization c) Date due, and time due (2:00 PM, September 12, 2008 at the LEDC) If a delivery service is used which prohibits such markings on their envelope or package, this information must be placed on the outside of an interior envelope or package. The address for proposals submitted by contract carrier, courier delivery, personal delivery or U.S. Postal Service is: Lansing Economic Development Corporation Attn: Robert Trezise, Jr., President and CEO 401 S. Washington Square, Suite 100 Lansing, MI 48933 4.2 Submission Requirements Submit one (1) electronic version and five (5) paper copies of your full proposal including all exhibits. The proposal should include a table of contents and be tabbed to identify each document. Proposals must be signed by the entity’s authorized officer. 4.3 Independent Price Determination Each responding consultant submitting a proposal must warrant and represent that it has made an independent price determination, and has not relied on any oral or written statements by the Public Entities, except those set forth in this RFP, or in response to written questions. 4.4 Responder’s Authorized Agent Each responding consultant’s proposal must identify its authorized agent who has unqualified authority to bind the developer with regard to all matters arising from or related to this RFP process. 4.5 Anticipated Sequence of Events a) Advertisements and distribution of RFP (July 25, 2008) b) Closing date of the RFP process (2:00 PM September 12, 2008) c) Proposals that warrant further examination by the Public Entities will be contacted within 30 days of September 12, 2008 5 d). Further engagement of developers will take place during a 90 day period of time following the September 12, 2008 deadline for proposals e) Negotiation with a Selected Developer Candidate will take place beginning at the end of the 90 day period of time from September 12, 2008 f) Final Negotiation and execution of development agreement for a nine month agreement period of time (anticipated, December 2008) g) Project commences in 2009 5.0 Selection Criteria Notwithstanding any other statement in this RFP, the City of Lansing and LEDC reserve the right to: a) Reject any and all proposals b) Waive any errors or irregularities in the solicitation process or in any proposal c) Re-solicit proposals for the project d) Negotiate with any responder for a reduced price, or for an increased price to include any alternates that any developer may propose e) Reduce or revise the scope of the project, and re-solicit or negotiate with any responder regarding the revised project f) Defer or abandon the project 5.1 Completeness Each response will be reviewed prior to the selection process for completeness and adherence to format. A response will be considered complete if all requested sections are included in the proper order. 5.2 Format of Proposal Each proposal shall follow the following format: a) Cover Letter b) Title Page c) Independent Price Determination d) Responder’s Authorized Agent e) Table of Contents f) Executive Summary g) Contractor Qualifications i. Firm Profile ii. Project Team iii. Similar Projects iv. References h) Phase I: Needs Assessment i. Local Organization Needs Assessment 6 ii. Market Assessment Process iii. Physical Space and Capacity Analysis iv. Local Team Building Process v. Other vi. Description of Deliverables vii. Estimated Cost for Phase I i) Phase II: Business Plan i. Identification of Goals and Objectives ii. Measuring Success iii. Partnership Development Process iv. Site Location and Preliminary Design Work v. Construction Cost Estimation Method vi. Construction Finance Plan Development vii. Operational Plan Development viii. Long-Term Sustainable Plan Development ix. Other x. Expected Deliverables xi. Estimated Cost for Phase II 5.3 Shortlisting Each complete response will be reviewed for the shortlist selection. Selected firms will be placed on the shortlist according to their quality and responsiveness. Responses which are not placed on the shortlist will receive no further consideration. The Lansing Economic Development Corporation reserves the right to shortlist any number of firms based on merit. 7 Shortlisting Evaluation Form Name of Respondent Complete Pass Fail Section Name (Yes/No) (Indicated by X) (Indicated by X) Cover Letter Title Page Independent Price Determination Responder’s Authorized Agent Table of Contents Executive Summary Contractor Qualifications Data Firm Profile Project Team Similar Projects References Phase I: Needs Assessment Local Organization Needs Assessment Market Assessment Process Physical Space and Capacity Analysis Local Team Building Process Other Deliverables Phase I Cost Estimate Phase II: Business Plan Identification of Goals and Objectives Measuring Success Partnership Development Process Site Location and Prelim. Design Process Construction Cost Estimation Method Construction Finance Plan Development Operational Plan Development Long-term Sustainability Plan Dev. Other Deliverables Phase II Cost Estimate All Complete (Yes/No) Number of Passing Sections (Possible 8 a) Grading System The executive summary of each response will be read to give an overview. Then, each section will be graded on a pass/fail basis. A passing grade shall be given if the section: (a) provides the requested information and (b) demonstrates that the respondent has an adequate capability or experience as evidenced by its command of the subject matter. The shortlisting evaluation form will be used for this purpose. b) Ranking Proposals will be ranked according to the total number of sections which receive passing grades. The shortlisting summary form will be used for this purpose. c) Shortlist Selection Based on the number and quality of the submitted responses to the Request for Proposals, the shortlist will be selected. Lansing EDC reserves the right to shortlist any number based solely on their merit. The final shortlist will be indicated on the summary form. Responses not shortlisted will receive no further consideration d) Notification After the shortlist is selected Lansing EDC will mail each respondent a copy of their shortlisting evaluation form and the shortlisting summary form. Firms which make the shortlist will receive additional instructions about the schedule and format for oral interviews. 5.4 Evaluation of Shortlisted Statements of Qualifications a) Evaluation Process Lansing EDC will appoint a selection committee to formally evaluate each shortlisted response. The evaluation process will grade the responses on merit and responsiveness. The evaluation process will include verification of references and project team members, confirmation of financial information and may include other information as directed by the Lansing EDC. b) Grading Format Each section or subsection of the response will be considered a separate selection criterion and will be graded individually. All scores will be summed to give the grand total score. The maximum possible total score for the response is 100 points. Scoring will be summarized on the Formal Evaluation Form. 9 c) Point Values Score Evaluation Form Criterion Point Value Grade Score Contractor Qualifications Data 20 Firm Profile 5 Project Team 5 Similar Projects 5 References 5 Phase I: Needs Assessment 30 Local Organization Needs Assessment 10 Market Assessment Process 5 Physical Space and Capacity Analysis 5 Local Team Building Process 5 Deliverables 5 Phase II: Business Plan 50 Identification of Goals and Objectives 5 Measuring Success 5 Partnership Development Process 5 Site Location and Prelim. Design Process 10 Construction Cost Estimation Method 5 Construction Finance Plan Development 5 Operational Plan Development 5 Long-term Sustainability Plan Dev. 5 Deliverables 5 Total Score 100 d) Percentage Grades Grade Description 0% Criterion was not addressed or the material presented was totally without merit. 20% Criterion was addressed minimally, indicated little capability, experience, or understanding of topic. 40% Criterion was addressed minimally, but shows some capability, experience, or understanding of topic. 60% Criterion was addressed adequately. Overall, a basic capability, experience, or understanding of topic. 80% Criterion was addressed well. Indicates some superior features. 100% Criterion was addressed in superior fashion, indicating excellent or outstanding capability. 10 e) Example If a response addresses the topic well (the definition of the 80% grade), the 10 point value for the criterion would be multiplied by 80%, resulting in a score of 8.0. Point Value Grade Score 10 80% 8.0 5.5 Oral Interview After the formal evaluations, the oral interview will allow the LEDC to address specific issues with the shortlisted respondents. The respondent's answers will be graded using the same format as the formal evaluation of the Request for Qualifications. The maximum possible score for the oral interview will equal 100 points. 5.6 Final Selection The grand total scores of the Statement of Qualifications and the oral interview will be added together. The maximum summed score equals 200 points. The respondent with the highest score shall be selected. 5.7 Notification Lansing EDC will mail copies of the scoring forms for the Statement of Qualifications and the oral interview to the applicable respondent. Also, a summary sheet of the total scores for all shortlisted firms will be mailed to each shortlisted respondent. 5.8 For more information e-mail Karl Dorshimer, Vice President of the LEDC at: email@example.com 11