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Performing Arts Center Business Plan by axb55427


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									         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

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

            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

      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?

      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.

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

      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

   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.

                                    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
Phase I: Needs Assessment
    Local Organization Needs Assessment
    Market Assessment Process
    Physical Space and Capacity Analysis
    Local Team Building Process
    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.
    Phase II Cost Estimate
All Complete (Yes/No)
             Number of Passing Sections (Possible

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

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.

  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
                  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.

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:



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