Proposal for Hotel on Long Lease - PDF

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					   CITY OF PASADENA




R E QU E S T F O R
  P RO P O S A L S
CONVENTION CENTER
HOTEL OPPORTUNITY
                                REQUEST FOR PROPOSALS
                         CONVENTION CENTER HOTEL OPPORTUNITY

                                                       TABLE OF CONTENTS
OVERVIEW ..........................................................................................................................................................3

             SUMMARY OF REQUEST .........................................................................................................................3

             PROPERTY ................................................................................................................................................3

             DEVELOPMENT OPPORTUNITY ............................................................................................................3

             PROJECT GOALS AND OBJECTIVES ......................................................................................................3

             SELECTION ..............................................................................................................................................4

BACKGROUND.................................................................................................................................................5

SPECIFIC PROJECT INFORMATION ...........................................................................................................6

             DEVELOPMENT SITE INFORMATION .....................................................................................................6

             DEVELOPMENT PARAMETERS ................................................................................................................7

             DUE DILIGENCE INFORMATION ...........................................................................................................8

             PROJECT REQUIREMENTS/CONSIDERATIONS .....................................................................................9

SUBMITTAL REQUIREMENTS......................................................................................................................10

EVALUATION ...................................................................................................................................................12

             EVALUATION PROCESS ........................................................................................................................12

             EVALUATION CRITERIA .......................................................................................................................12

PROPOSED SELECTION SCHEDULE ........................................................................................................13

INQUIRIES..........................................................................................................................................................13

SPECIAL TERMS AND CONDITIONS.......................................................................................................14

Attachment A: Project Site Boundary Map.................................................................................................16

Attachment B: Assessor parcel map.............................................................................................................17

Attachment C: Civic Center/MidTown Design Guidelines.....................................................................19




                                                                                  2
                                       OVERVIEW

       Thank you for your interest in the Pasadena Convention Center hotel opportunity.
    Based on your response to the City’s Request for Qualifications (“RFQ”), you have been
     selected to receive this Request for Proposals (“RFP”) for development of a full-service
                   hotel in the heart of the Pasadena Convention Center block.

                                 S UMMARY      OF   R EQUEST
This RFP is a request for detailed proposals from the four teams qualified during the
RFQ stage. The level of design, furnishing and operation of the Project must be
commensurate with a high quality convention center hotel. The operator must be
directly connected to a prominent national sales office network and sales force
positioned to primarily pursue convention and group meeting demand, and have a series
of convention center hotels in its portfolio in other U.S. convention destinations.

                                         P ROPERTY
Located in the Central District and immediately adjacent to the Pasadena Convention
Center and historic Civic Auditorium, the site is within walking distance of major
cultural attractions, business services, shopping, and public transit. The site is owned by
the Pasadena Community Development Commission (City redevelopment agency) and
currently managed by the Pasadena Center Operating Company (a not for profit entity
appointed by the City of Pasadena).

                             D EVELOPMENT O PPORTUNITY
Design and build a full service hotel that will help the convention center continue to
attract high quality events and help the city maintain a strong visitor industry. The
project must be consistent with all Pasadena plans that relate to its historic Civic Center
and dynamic Central District.

                           P ROJECT G OALS AND O BJECTIVES
•   Develop an internationally recognized, high quality convention center hotel
•   Establish a long-term, market rate ground lease
•   Enhance the dynamic environment of the Central District with a hotel that
    complements the area’s existing retail, entertainment, and meeting venues
•   Serve as an added catalyst for continued economic growth and provide a direct
    economic benefit to the City
•   Maximize the site’s potential in a creative and complementary manner
•   Reflect and respect the architectural and spatial context of the site




                                               3
                                   S ELECTION
Through this RFP process, the highest qualified team will be selected by an Advisory
Review Panel. Formal negotiations for a development and lease agreement are
expected at the end of this process.




                                         4
                                 BACKGROUND

Located at the base of the San Gabriel Mountains, Pasadena is just 15 minutes north of
downtown Los Angeles in sunny Southern California and offers both the business and
recreational traveler a surprising combination of sophistication and fun. Although best
known for the Rose Bowl and Tournament of Roses Parade, Pasadena has a history of
impressive corporate and academic pursuits. NASA’s Jet Propulsion Laboratory, the
California Institute of Technology, and Art Center College of Design are among the
institutions that create a conducive environment for various engineering, investment,
high-tech and creative endeavors. Other major employers include Parsons Engineering,
Avery Dennison, Kaiser Permanente, and Western Asset Management.

Pasadena currently offers residents
and visitors a rich mix of cultural,
entertainment       and     shopping
attractions on a pedestrian scale. In
the central area, there are several
mixed-use projects, distinct retail
districts and cultural venues that
make Pasadena stand out in the
Southern California marketplace.
Pasadena enjoys what other cities
are striving for – the social and
lifestyle benefits that accompany a
heightened interest in urban living.
Downtown revitalization activities
have advanced significantly in the last seven years. This is attributable to the strong
private sector investment and a City government highly regarded for its management
and vision.

                                     Located near the heart of Pasadena’s central
                                     business district, the Pasadena Convention Center
                                     has embarked on a $121.6 million expansion.
                                     When completed in April 2009, the state-of-the-
                                     art Complex will feature 60,000 square feet of
                                     exhibit space, 28 renovated breakout rooms, a
                                     new 25,000 square foot ballroom, and a 17,000
                                     square foot restored, historic ballroom. Included
                                     in the complex is the treasured Pasadena Civic
                                     Auditorium, a performing arts venue of
                                     approximately 3,000 seats.




                                           5
                    SPECIFIC PROJECT INFORMATION

                         D EVELOPMENT S ITE I NFORMATION

The proposed hotel site is located on the eastern side of the Convention Center block.
A large temporary event tent is currently assembled on this site. Details related to the
size, zoning, and development capacity of the site area are summarized in Attachment A.

The proposed building footprint is approximately 200 x 250 feet and includes the below
grade space currently improved with two levels of structured parking containing 318
spaces. The respondents should assume that the existing below grade space is not
structurally sound to support the construction of a new hotel. Therefore, respondents
must include in their proposal a parking plan that includes the demolition of the existing
below grade parking structure, replacement of the 318 existing spaces and the addition
of 150 new spaces. Access to the Conference Center Building and the adjacent
Sheraton Hotel must be maintained throughout.




                                          Sheraton Hotel




Proposals involving any contribution from the City's General Fund will not be
considered. Preference will be given to those developers/operators that have
experience in public/private projects utilizing private sector financing.




                                            6
                              D EVELOPMENT PARAMETERS

•   H EIGHT L IMIT
    The maximum height allowed for the development site is 60 ft. Height
    averaging is also allowed for this site, allowing for up to 30% of the new
    building to reach a height of 75 ft, provided, however, that the average height
    of the entire building does not exceed 60 ft. Use of height averaging
    requires Design Commission approval. The maximum height of the proposed
    hotel shall be measured from the sidewalk, not the deck above the existing
    subterranean parking garage. (See Pasadena Zoning Code, Section 17.30.040,
    Figure 3-8)

•   FAR
    The maximum permitted floor area ratio (“FAR”) for the Convention Center
    block is 2.25. No specific FAR calculation is applicable to the proposed hotel
    because it shares the Convention Center parcel (see Assessor’s Parcel Map
    in Attachment B). There is, however, sufficient remaining capacity below the
    maximum FAR for the site to accommodate a hotel. Accordingly, the
    development envelope for the hotel proposal is to be dictated by the
    required setbacks and height limits. (See Pasadena Zoning Code, Section
    17.30.040, Figure 3-9)

•   PARKING AND E ASEMENT R EQUIREMENTS
    - Replace existing 318 parking spaces and provide an additional 150 spaces
    -   Maintain 300 parking spaces for the existing Sheraton Hotel
    -   The City is interested in adding more spaces, but will consider shared parking
        proposals utilizing adjacent parking resources
    -   Comply with all recorded easements as specified in an Agreement between the
        City of Pasadena and the Pasadena Center Operating Company, the full text of
        which is available Online at:
        http://www.ci.pasadena.ca.us/planninganddevelopment/business/hotelrfp.asp
        A summary of the easements includes:
                   •   Horizontal and Vertical Support
                   •   Additional Vertical Support
                   •   Utilities
                   •   Parking Spaces
                   •   Elevators
                   •   Loading Dock
                   •   Lobby
                   •   Service Facilities
                   •   Driveways
                   •   Landscaping and Pedestrian and Vehicular Ingress and Egress
                   •   Vertical and Lateral Displacement
                   •   Automatic Fire Extinguishing Systems

                                              7
                             D UE D ILIGENCE I NFORMATION

•   T ITLE
    The City of Pasadena has had a Title Report prepared for the Conference Center
    Site, which is available by contacting the Planning and Development Department.

•   Z ONING
    The site is zoned CD-2 (Central District Specific Plan; Civic Center-Midtown
    Subdistrict).

•   ENVIRONMENTAL CLEARANCE
    A Final Environmental Impact Report (FEIR) was certified for the Pasadena
    Conference Center Expansion Project on December 13, 2004. That analysis did not
    contemplate an additional hotel being constructed on the site. Therefore, additional
    environmental analysis would need to be conducted prior to approving the proposed
    hotel development.

                          DESIGN CONCEPTS AND GUIDELINES
Design guidelines for the Civic Center/Midtown area, of which the Convention Center
block is a part, are provided in the Central District Specific Plan. The guiding design
principles for this area are as follows:

Sub-District Character:        Respect Civic Landmarks
                               Protect Views of Monumental Civic Buildings
                               Create Dignified Public Spaces

Street Environment:            Promote High Standards of Street Design
                               Reinforce the Bennett Plan
                               Maintain and Extend Historic Streetscape Elements

Site Planning:                 Provide a Gracious Landscape Setting
                               Embellish Outdoor Spaces
                               Penetrate Blocks for Visual Connections

Building Design:               Achieve Design Coherence
                               Communicate Building Function
                               Build to the Highest Standards

Further details of the aforementioned design guidelines are provided as Attachment C to this RFP.




                                              8
                   P ROJECT R EQUIREMENTS /C ONSIDERATIONS
•   F IRST S OURCE L OCAL H IRING O RDINANCE (O RD. 6995 § 2 ( PART ), 2004)
    Market rate construction projects are strongly encouraged, though not
    required, to participate in the City’s First Source Local Hiring Program. By
    doing so, developers may benefit from a construction tax rebate by
    employing local residents in the construction of the project.

    Construction projects that receive financial assistance from the City are
    required to comply with the First Source Local Hiring Ordinance. While it is
    possible that a portion of the proposed hotel project may be considered
    eligible for financial assistance from the City, it is strongly preferred that the
    project be a long term, market rate lease.

    Further details about the First Source Local Hiring Program are provided Online at
            http://www.ci.pasadena.ca.us/citymanager/first_source_hiring/default.asp

•   G REEN B UILDING P RACTICES O RDINANCE (O RD. 7031 § 2 ( PART ), 2006)
    Nonresidential buildings of 25,000 square feet or more of new gross floor
    area are subject to the City’s Green Building Practices Ordinance.
    Accordingly, the project is required to retain the services of a Leadership in
    Energy and Environmental Design (“LEED TM “) accredited professional and
                    TM
    complete LEED project registration prior to issuance of a building permit.
    The developer shall also submit a LEED TM checklist and supporting
    documentation indicating points meeting at a minimum LEED TM “Silver” level
    incorporated into documentation for a building permit.

    Further details about the Green Building Practices Ordinance are provided Online
    at http://www.ci.pasadena.ca.us/permitcenter/greencity/Documents/GBbrochure0707.pdf

•   L ABOR P EACE LANGUAGE
    As part of this RFP, the City anticipates that ‘labor peace’ language may become part
    of an agreement between the City and the selected Development Team. The
    purpose is to establish ground rules regarding any organizing effort and to avoid
    picketing and/or other action(s) that may have an adverse impact on the Convention
    Center and the new hotel’s economic performance.




                                             9
                        SUBMITTAL REQUIREMENTS

Please provide identification of the proposed team members (i.e. the developer, hotel
operator). Include a single contact person for all correspondence and notifications.

Submissions must incorporate the following elements to be eligible for review:

   1. Development Entity/Capacity
       •   Description of development entity, including full legal name, type, ownership
           equity/financing structure, and primary contact regarding submittal
       •   Teams are required to identify a hotel brand and/or franchise and hotel
           management company that will manage the operations
       •   List of references from public agencies

   2. Development Plan
       •   Detailed project description in relation to the goals and objectives stated on
           page 3 of this RFP
       •   Conceptual site plan and elevations
       •   Chart detailing proposed building uses and square footage
       •   Preliminary development schedule/timeline and anticipated phasing

   3. Economic Plan/Proforma
       •   Project Proforma:
                  o Estimated construction costs including               detailed   direct,
                    indirect/soft costs and financing costs
                  o Estimated net operating income including detailed revenue
                    projections and operating costs
       •   Description of the project’s potential to serve as an economic stimulus to
           the area and projected economic impact:
                  o Transient Occupancy Tax
                  o Property Tax
                  o Sales Tax
       •   Identification of additional project benefits to the City, such as jobs created,
           services provided and needs met

   4. Transaction Terms and Conditions
       •   Term sheet that includes the following:
                  o Proposed Lease Amount
                  o Proposed Lease Term


                                            10
Teams are encouraged to provide any relevant information that will assist the City in
the evaluation of their submission. However, bulky promotional materials not directly
related to a hotel project are discouraged.

Submissions must be in the actual possession of the City in City Hall, 100 N. Garfield
Avenue, Room S116, on or prior to October 27, 2008 at 5:00pm. Late submissions will
not be considered. Submissions must be provided in a sealed package with the
statement “Pasadena Convention Center Hotel Proposal” and the prime contact name
and address clearly labeled on the front. Please submit twelve (12) complete copies
(8½ x 11 format preferred).




                                          11
                                   EVALUATION

                                E VALUATION P ROCESS

The City will designate an Advisory Review Panel to evaluate all proposals received in
response to this RFP. The Panel will assess the responses based on the factors
described below. Panel members will score each response in their own preferred
order. The scores assigned by each Panel member will be based on the individual
member’s reasonable judgment as to the degree to which the proposal complies with
the criteria and intent of the RFP process.

Members of the Advisory Review Panel and other City staff may contact references and
industry sources, investigate previous projects and current commitments, and interview
some or all of the development team. The City reserves the right to reject any or all
submittals at its sole and absolute discretion.

                                E VALUATION C RITERIA

The following is an outline of the criteria that will be utilized in determining those
submittals deemed most advantageous to the City of Pasadena and most responsive to
stated goals of this project.

   1. Development Entity/Capacity
       •   Demonstrated experience in successful financing, development, operation
           and economic performance of comparable projects
   2. Development Plan
       •   Extent to which the submittal meets the project goals and objectives
           described on page 3
       •   Ability to effectively design the project within the development parameters
           set forth on page 7
   3. Economic Plan (Proforma)
       •   Projected economic benefit to the City of Pasadena
       •   Feasibility of development proposal
   4. Transaction Terms
       •   Proposed development schedule and phasing required to complete the
           project
       •   Quality and feasibility of proposed business offer
       •   Ability to complete the transaction in a timely fashion




                                            12
                  PROPOSED SELECTION SCHEDULE

The City intends to proceed in accordance with the schedule noted below. The City
reserves the right to alter the schedule at any point in the process, but agrees to
provide adequate notice to respondents should the schedule be amended.

                                    S CHEDULE :

                          RFP Release: September 2, 2008
                Due Date for written questions: September 16, 2008
          RFP Response Deadline: October 27, 2008 (no later than 5:00pm)


                                  INQUIRIES

                         All questions shall be directed to:

                       David Klug, Redevelopment Manager
                       Planning & Development Department
                                  City of Pasadena
                                  (626) 744-4660
                             dklug@cityofpasadena.net




                                         13
                   SPECIAL TERMS AND CONDITIONS

                          R ESPONDENT R ESPONSIBILITIES
All facts and opinions stated herein and in any additional information, whether written
or oral, provided by the City of Pasadena and/or its representatives, are based on
available information and are believed to be accurate. However, no representation or
warranty is made with respect thereto. The information in this document is intended to
help prospective respondents create viable responses. However, it is the sole and
absolute responsibility of those responding to this request to complete their own due
diligence with regard to the information contained herein, including, without limitation,
any development restrictions, whether contractual, governmental, physical, or
otherwise, which may restrict or affect development of the site. Development is subject
to all applicable development standards and restrictions.

                 R ESERVATION    OF   R IGHTS    BY   C ITY   OF   PASADENA
The issuance of this RFP and the acceptance of submittal do not constitute an
agreement by the City of Pasadena that any contract will actually be entered into by the
City of Pasadena. Any costs incurred by respondents in preparation of a response to
this RFP or future RFP are completely the responsibility of the respondents. Any or all
disputes arising under this RFP and any contract negotiated as a result of this RFP shall
be governed by the laws of the State of California.

The City reserves the right to issue written notice of any changes in the submittal
process should the City determine, in its sole and absolute discretion, that such changes
are necessary or desirable.

                   N O PARTNERSHIP /BUSINESS O RGANIZATION
Nothing in this RFP or in any subsequent development agreement, lease, or any other
contract entered into as a result of this RFP shall constitute, create, give rise to or
otherwise be recognized as a partnership or formal business organization of any kind
between or among the City of Pasadena or the team.

                   E MPLOYMENT R ESTRICTION AND I NDEMNITY
No person who is an officer, employee, contractor or consultant of a team shall be an
officer or employee of the City of Pasadena. No rights of the City of Pasadena’s civil
service, retirement or personnel rules accrue to team, its officers, employees,
contractors, or consultants. The successful team shall have the total responsibility of all
salaries, wages, bonuses, retirement, withholdings, worker’s compensation and
occupational disease compensation, insurance, unemployment compensation other
benefits and taxes and premiums appurtenant thereto concerning its officers,
employees, contractors, and consultants. Team shall save and hold the City of Pasadena
harmless with respect to any and all claims for payment, compensation, salary, wages,
bonuses, retirement, withholdings, worker’s compensation and occupational disease
compensation, insurance, unemployment compensation other benefits and taxes and
premiums in any way related to Team’s officers, employees, contractors and
consultants.
                                            14
                              C IVIL R IGHTS R ESERVED
Notwithstanding any other provision of the Request for Proposals, the City reserves the
right to:
          ‐ Waive any immaterial defect or informality;
           ‐   Extend or otherwise revise the submittal date;
           ‐   Reject any or all submissions or portions thereof;
           ‐   Reissue a new or revised Request for Proposals; and
           ‐   Request one or more teams to submit a more detailed submittal

This RFP does not commit the City of Pasadena to enter into a contract or
development agreement, to pay any cost incurred in the preparation of a submittal in
response to this request or in subsequent exclusive negotiations. Further, this RFP does
not convey to any team any contract property rights.

               P ROPERTY R IGHTS /D ISCLOSURE        OF I NFORMATION

All materials submitted in response to this RFP and submittals subsequent thereto, shall
become the property of the City of Pasadena upon delivery. By tendering a response to
this RFP, teams agree that the content of every other submittal is confidential and
proprietary and waives any right of access to those submittals during the review period.
The foregoing waiver shall not apply to the submittal selected under this RFP, if any, or
to the submittal of any developer contesting, protesting or otherwise challenging an
award or recommendation, once made. Any developer tendering a submittal in
response to this RFP further acknowledges and understands that the City of Pasadena is
a public entity required to abide by public record laws and shall not be liable for
disclosures required by law.

                  S UBMITTAL R EJECTION /R IGHT TO D ISQUALIFY
Submittal of terms, condition and/or agreements may result in rejection if such terms,
conditions, or agreements are deemed unacceptable by the City in its sole discretion.
The City of Pasadena reserves the right to disqualify any team who fails to provide
information or data specifically requested herein or who provides materially inaccurate
or misleading information or data or who attempts to influence the selection process
outside the procedures established herein. The City of Pasadena reserves the right to
disqualify any team on the basis of any real or apparent conflict of interest. This
disqualification is at the sole discretion of the City of Pasadena.




                                           15
                       ATTACHMENT A:
                 PROJECT SITE BOUNDARY MAP




                              Paseo Colorado




Conference Center Parcel Boundaries        Zoning:         CD-2

Proposed Hotel Site                        Height Limit:   60ft (75ft w/ height averaging)

                                           Footprint:      Approximately 200x250



                                      16
   ATTACHMENT B:
ASSESSOR PARCEL MAP




        17
18
             ATTACHMENT C:
CIVIC CENTER/MIDTOWN DESIGN GUIDELINES




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