REQUEST FOR PROPOSALS No. 06-072

CITY OF TEMPE REQUEST FOR PROPOSALS No. 06-072 For Development and Operation of an 18 - acre Indoor Sports Facility located at 1600 W. Rio Salado Parkway ISSUE DATE: WEDNESDAY, SEPTEMBER 28TH, 2005 DUE DATE: FRIDAY, OCTOBER 28TH, 2005, 3:00 P.M. MST ISSUED BY: City of Tempe Procurement Office Request for Proposal City Procurement Office/City of Tempe • PO Box 5002 • 20 East 6th Street • Tempe, AZ 85280 • (480) 350-8324 • www.tempe.gov/purchase Request For Proposals No.: Procurement Description: Proposal Due Date: Street Address: 06-072 Development and Operation of Indoor Sports Facility at 1600 W. Rio Salado Parkway FRIDAY, OCTOBER 28TH, 2005, 3:00 P.M. MST Late Proposals will not be considered 20 East Sixth Street (2nd Floor) Tempe, AZ 85281 Mailing Address: PO Box 5002 Tempe, AZ 85280 The City of Tempe Procurement Office will receive sealed proposals for the development and operation of an indoor sports facility on an 18 acre site located at 1600 W. Rio Salado Parkway at the specified location until the time and date cited above. Proposals received by the correct time and date will be opened and the name of each Offeror will be publicly read. Sealed proposals must be in the actual possession of the City Procurement Office on or prior to the exact time and date indicated above. Late proposals will not be considered. The City of Tempe reserves the right to accept or reject any and all submittals and waive informalities. Proposals must be submitted in a sealed envelope (box) with the Request for Proposals number and the offeror’s name and address clearly indicated on the envelope (box). All proposals must be completed in ink or typewritten and a complete Request for Proposal, Indemnification Form, must be returned along with the Proposal by the time and date cited above. Original offer must be signed in ink. Telegraphic, mailgram, facsimile or electronic transmission proposals will not be considered. Offerors are strongly encouraged to carefully read the entire Request For Proposal. Note: Offeror must submit ten (10) copies and one (1) unbound reproducible original of a signed and completed Proposal Offer. An unsigned or late Proposal Offer will be considered non-responsive and rejected. 09/28/2005 Proposal Issue Date Phone: (480)350-8533 Lisa Goodman Procurement Officer Phone: (480) 350-8227 Cliff Mattice Deputy City Attorney (Reviewed as to form) Primary City Contact Person: Lisa Goodman Phone: (480) 350-8533 -1- Proposal Offer It is MANDATORY that Proposal Offeror COMPLETE, SIGN, and SUBMIT the original of this form to the City Procurement Office with the (your) proposal offer. An unsigned “Proposal Offer” and/or late submittal will be considered non-responsive and rejected. This Proposal is offered by: _____________________________________________ Company Name (typed) To the City of Tempe: By signing this Request for Proposal Submittal, Offeror acknowledges acceptance of all restrictions, requirements, criteria, matters and conditions contained herein. Offeror certifies that the proposal offered was independently developed without consultation with any of the other offerors or potential offerors. For clarification of this Proposal Offer, contact: ___________________________ Proposal Offeror Contact __________________________ Title (_____)_______________ Phone ___________________________________________________________ Name of Company __________________________________________________________________________________________ Company Address (or PO Box) City State Zip This Proposal is offered by: ___________________________ Authorized Proposal Offeror __________________________ Title (_____)_______________ Phone _________________________________________________________ Signature of Authorized Proposal Offeror ___________________ Date of Proposal Offer -2- Indoor Sports Facility Request for Proposals Indemnification Form For and in consideration of the City of Tempe's acceptance of receipt, consideration and evaluation of the materials narratives, photographs, financial statements and specifications, etc. submitted by the undersigned Offeror, in response to the foregoing Request for Proposals for the development and operation of an Indoor sports facility at 1600 W. Rio Salado Parkway, and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, Offeror, for and on behalf of itself, and on behalf of each of its parents, subsidiaries, affiliates, partners, officers, directors, employees, agents, predecessors, successors and assigns, and any others who may claim by, through, under or on behalf of any of them, does hereby agree to indemnify, defend, remise, release and forever discharge the City of Tempe, the City of Tempe Council and each of their respective officials, directors, employees, supervisors, members, commissioners and agents (collectively "Releasees") of and from any and all claims and liability relating to, arising out of or in connection with the Request for Proposals or any actions or decisions taken or made by any Releasee in connection with this offering regarding the development and operation of an Indoor Sports Facility at 1600 W. Rio Salado Parkway as described in the Request for Proposals. IN WITNESS WHEREOF, and intending to be legally bound, the undersigned has caused this Release to be executed this __________ day of ________________, 2005. ________________________________ Authorized Proposal Offeror WITNESSETH: ________________________ Witness ____________________________ Witness -3- Request for Proposal The City of Tempe (“Tempe”) controls approximately 18 acres of land (the “Property”) located at 1600 W. Rio Salado Parkway, Tempe, Arizona. Approximately 8.2 acres lie within a “no-build zone” adjacent to a navigation antenna for Sky Harbor International Airport and an additional adjacent 9.8 acres of land is subject to height restrictions. Tempe herein invites proposals for participation in the development of this combined 18 acre site and the long-term management of the project as a multi-use indoor sports facility which may also include outdoor sports fields. The offered property will be provided by the City on a lease basis and part of a Development and Disposition Agreement. The City expects that the selected developer would be required to assume the design and construction of the facility; and all the costs associated with on-going maintenance and operation of the facility for the duration of the lease (management agreement). The selected developer will also be required to comply with any applicable competitive bidding or procurement requirements. This property is currently subject to use restrictions as described in the U. S. Department of the Interior, Bureau of Land Management Patent Number 02-97-005 (attached as Exhibit A). GENERAL INFORMATION Tempe is located in the demographic core of the Phoenix metropolitan area. The project property is located west of Tempe Town Lake, adjacent to Papago Park with easy access to downtown Tempe, adjacent to the Arizona State University Campus with its 45,000 students and 12,000 faculty and employees, and minutes from Sky Harbor Airport. Located in one of the largest concentrations of major employment centers in the Phoenix metro area, the City of Tempe has a population of approximately 160,000. The project area is located close to the surrounding communities of Phoenix, Mesa and Scottsdale, and is within five miles of a population of 350,000 persons and some 95,000 households. In close proximity to the site is Downtown Tempe, which is in the process of being revitalized. The revitalization efforts of the City of Tempe and its private redevelopment partners have resulted in over 2.5 million square feet of mixed use development, including office space, retail/restaurant space, residential units and hotels. Other redevelopment activities have included rehabilitation of many late 1800’s historic structures for office, retail and restaurant uses. Streetscape beautification (brick sidewalks, decorative lighting, street furniture and landscaping) throughout the Downtown have been developed, as well as, the development of convenient parking to support the pedestrian oriented revitalization. DESCRIPTION OF SITE 1600 W. Rio Salado Parkway – A site totaling approximately 18 Acres The project site is approximately 18 acres of a vacant site at 1600 W. Rio Salado Parkway, Tempe, Arizona (Exhibit B). In 1997 the property was acquired by the City of Tempe from the Bureau of Land Management subject to Patent 02-97-0005 (See Exhibit B). Approximately 8.2 acres of Property is within a “no-build zone” and 9.8 acres are subject to height restrictions identified in Patent 02-97-0005. The property is essentially level and currently zoned General Industrial (GID). The property is nearly at grade with Rio Salado Parkway and adjoining land. The property has approximately 900 feet frontage along the Rio Salado Parkway. -4- The proposal and the intended development and management of the facility, will need to take into consideration building and site planning issues, as well as restrictions in Patent No 02-97-0005 including: a) Limitations on improvements on the subject property in the vicinity of an adjacent Doppler Very High Frequency Omni directional Radio Range/Tactical Air Navigation (DVORTAC) facility used by Phoenix Sky Harbor Airport. b) This site is directly east and within 10,000 feet of the end of active runways at Phoenix Sky Harbor, which introduces noise impacts as well as a required plan approval process through the Federal Aviation Administration (FAA). This plan approval process will consider factors including physical construction and possible introduction of wildlife hazards to aviation. c) Proximity to active runways at Phoenix Harbor introduces noise impacts to be considered in designing the facility d) Current zoning of General Industrial (GID) would require the processing of a Use Permit through the City of Tempe to allow for recreational uses on the site. e) This site is to the east of property which will be developed as a transit maintenance and north of a new office park development. The project should provide for required on-site parking. f) The development shall not interfere with public access to the river channel through the site, and should provide for both public pedestrian and bicycle access throughout the development. g) Trip generation and parking study may be required for the proposed uses. h) This site will have to retain the 100-year storm on site subject to the City’s engineering standards. The development team must obtain separate storm water NPDES permit coverage for the construction of the project. i) The selected development team will also be required to comply with all applicable competitive bidding or Procurement requirements, including, but not limited to, Arizona Revised Statues Title 34, regarding public building and improvements. As can be seen from the above discussion of just some of the varied planning and development challenges, a capable and experienced team is sought for the successful financing, development and operation of the proposed facility. Any patent restrictions or planning, zoning and building issues referred to in this document should be independently verified by the Offeror and Tempe makes no guarantee that the information provided herein is complete or accurate and Tempe makes no warranties, express or implied, as to the patent restrictions or planning, zoning and building issues. PROJECT DESCRIPTION The City of Tempe seeks qualified respondents to propose a multi-use, tournament quality indoor sports facility for this site subject to the land use restrictions referred to in this document. However, compatible outdoor sport field uses may also be included in the project. The City’s primary purpose for the tournament facility is to generate a positive economic impact to the City from visitors to the tournaments. Successful respondents will be responsible for the financing, design and construction of the project, and once completed, shall have sole responsibility for the operation of the facility. The developer/operator may have first right of refusal on any new or expanded sports facilities or fields adjacent to the site, based upon their proven success at this site. Tempe is prepared to offer the lease of approximately 18 acres of City-controlled property for the project. The site is anticipated to accommodate an indoor facility ranging from 70,000 to 90,000 square feet, with enough indoor courts to serve tournament competition, parking for about 240 vehicles, outdoor fields, and 100-year storm event drainage retention. -5- DEVELOPMENT CRITERIA In addition to the development of a design that successfully deals with building, site planning and use restrictions, a successful facility will: 1. Be economically beneficial to the City of Tempe (e.g., attract tourist trade including additional booked room-nights at local hotels, providing long-term fee/income to the City, provide tax benefits through sales, provided services which the City might otherwise have to meet, etc.) as a new regional tournaments at the facility. 2. Provide the type and use of the facility that is considered to be complementary to making Tempe a great place to live, work and play and have no adverse effect on the surrounding area. 3. Assure that all construction activity, restoration, rehabilitation, new construction, and landscaping will complete City of Tempe and FAA review and approval. This review may also include review by various City Boards and Commissions. 4. Allow the City (at their option) access across the site to meet the safety and access needs of the Salt River channel to the north. If needed, the location and use of access will be subject to negotiation. 5. Reflect high standards in physical design which will enhance the site and the image of Rio Salado. METHOD OF SELECTION The interest of the City of Tempe is to select a development team that demonstrates their knowledge of the design and development of a indoor tournament sports facility, has facility maintenance and operation experience, has the financial capacity to undertake the required work, including financial capacity to sustain operating and maintenance, and has a business plan for making use of the facility. After review of the proposals received by the City, a review team will prepare a recommendation to the City Council. The City Council may select the developer team or teams that will have exclusive right to negotiate a Development and Disposition Agreement (which includes a Lease and Management operation agreement) with the City of Tempe. After review of the proposals received by the City, the City Council may select a development team with an exclusive right to negotiate for the development of part or the entire project site. The City Council reserves the right to reject all submittals for any reason. If for any reason no acceptable proposals are received, the City Council reserves the right to reject all proposals and re-advertise the availability of the project. Each team responding to the Request for Proposals must describe and demonstrate that they have the capacity to implement their proposal in a timely manner. Each team submitting a proposal will be notified whether its submittal is to be considered for final selection. -6- CRITERIA FOR DEVELOPMENT TEAM SELECTION The developer proposal shall respond particularly to the following items which represent significant criteria in the developer selection process. The following criteria are stated as indicators to interested developers to give general guidance for the proposals, but are not exclusive of other considerations which may considered in the selection process. A. The development team shall have thorough knowledge and substantial experience in the design, construction, marketing and operation and maintenance of a tournament indoor sports facilities. (Criteria Weight: 15%) B. The development team shall provide a schematic plan for the site, probable construction costs, and critical path schedule for the construction, from mobilization to project acceptance. The schedule should indicate major project milestones. Any phased development plan should clearly identify the plan for total project build-out, including anticipated future expansion periods, interim uses and associated future construction costs. (Criteria Weight 15%) C. The development team shall have the financial capacity to undertake the project of this magnitude for both planning, development and long term operation. The development team shall satisfy the financial capacity with financial statements; lines of credit; identification of lender or joint venture partners; no pending litigation or liens; and proforma sufficient to demonstrate sources of construction financing and fundraising partners, if applicable. (Criteria Weight 35%) D. The operator shall have a demonstrated track record in running this type of facility and shall identify the management organization and proposed use, operation and maintenance of the facility including the operation and maintenance costs; anticipated revenue generation and examples of past experience in marketing and hosting tournaments. (Criteria Weight 35%) CITY COUNCIL ACTION An internal city evaluation committee will review the proposals and make a recommendation to the City Council. Selection of a proposal may be made at any regular meeting of the City Council within thirty (60) days after receipt of said proposal or within such longer period of time as may be deemed reasonable by the City Council. The City reserves the right to reject all proposals for any reason. -7- FINAL AGREEMENT After City Council selection and approval of a developer/operator, the City and the selected team must enter into an agreement, satisfactory to the City within one hundred twenty (120) days or the development site will be withdrawn. If the City and selected team fail to reach agreement within the one hundred twenty (120) day negotiation period, the City shall have the exclusive right to extend the timeframe, cancel further negotiations, or begin negotiations with other respondents of the RFP. FAA approval of the concept will not be required prior to execution of any final agreement by the City. THE PROPOSAL CONTENT A. TEAM KNOWLEDGE AND EXPERIENCE The offeror shall submit a description of the qualifications of the principals, operators, and other professionals who will comprise the development and management team, and a description of their experience with similar facilities. 1. 2. 3. Development and Operations Team – including organization and role of individuals named Prior Development Projects - Photographs or renderings of pervious developments within the past five (5) years, which are relevant to the type of development proposed for this site. Proposal Project Schedule a. Number of days to start project following contract execution. b. Project schedule listing various phases and estimated time required for each phase and project total. Maximum Length: Fifteen (15) pages B. PROPOSAL PLAN The offeror shall provide a schematic plan for the site, including a schematic plan, floor plan and elevations and estimated cost of development and construction. Provide a critical path schedule for the construction of the proposed project, from mobilization to project acceptance. The schedule should indicate major project milestones. Any phased development plan should clearly identify the plan for total project build-out, including anticipated future expansion periods, interim uses and associated future construction costs. 1. Facility Design Offeror is to submit a schematic plans of the site to illustrate development of the site and aesthetic treatment including, but not limited to: a. Site Plan b. Building Elevations c. Floor Plans c. Landscape Concept Plan d. Parking and Circulation Maximum of four (4), 11”x17” Schematic plans. 2. Estimated Cost of Construction Maximum of two (2) pages. -8- C. FINANCIAL CAPACITY The offer shall provide information to substantiate the financial capacity to undertake the project of this magnitude. The information that should be provided, similar to a lender’s package, includes the following: Financial information may be in a separately sealed package within the sealed proposal, noted as Confidential (subject to disclosure through public information requests and/or court order). 1. Financial statements of the offeror and/or funding entity. Statements should cover a period of at least the past five (5) years. Additional consideration will be given to those prepared by a certified financial planner, CPA, or independent financial institution. Data on existing lines of credit. Identification of a proposed lender or joint venture partner(s); or a description of how financing will be arranged for the project. Provide details regarding any past, current or pending litigation, liens or other court proceedings involving members of the responding team, their organizations or employers, if applicable. Preliminary development pro forma, which at a minimum demonstrates the following: a. Construction Financing – this section should include a clear description of the level of assistance requested by the city during project construction. b. Fundraising/Partners – if applicable, include a description of the strategy for pursuing the types and amounts of grants, sponsorships, partners and other outside funding sources that will be pursued for the construction and operation of this project. At least three financial or developmental references, their addresses, telephone numbers and relationship to the developer. 2. 3. 4. 5. 6. Maximum Length Twenty (20) pages. D. FACILITY OPERATION AND MANAGEMENT The operator shall have demonstrated a successful and long-term profitable record in running this type of facility and shall provide a thorough explanation of the management organization and proposed use, operation and maintenance of the facility. This should include a business plan. 1. Operation and Maintenance Costs - This section should include a separate accounting of expected maintenance costs (including capital replacement) from operating expenses. Identify the number of key personnel and associated employment expenses required to operate the facility as planned. Anticipated Revenue Generation - Provide detail on sources of revenue, separating key categories such as tournament fees, memberships, sales of merchandise, rentals, food and beverage, etc. The operator shall provide specific examples of contracts they have with organizations that would bring tournaments and examples of tournaments they have brought to the community, including how many teams, how many participants, and how much economic impact was generated for the host community. Provide details on how the facility will be marketed and promoted. 2. 3. Maximum Length Ten (10) pages. -9- PRICE, CONDITIONS, AND METHOD OF CONVEYANCE Price is subject to negotiations between the City and the selected entity. The conveyance of the property will be through a long-term lease contingent upon the property’s continued use as a sports facility. A Development and Disposition Agreement between the City and the selected entity will be used to outline the conveyance of the property and the roles and responsibilities of the respected parties within the agreement. PROPOSAL SUBMISSION Submit ten (10) individually sealed copies of the proposal and related materials and one (1) unbound sealed reproducible original. All financial information, including references and proforma should be in a single, separately sealed package to insure confidentiality, subject to public information requests and/or court order. For any additional information about this Request for Proposals, please contact Lisa Goodman with the City of Tempe Procurement Office at (480) 350-8533. -10- Exhibit A -11- Exhibit A -12- Exhibit A -13- Exhibit A -14- Exhibit A -15- Exhibit A -16- Exhibit A -17- Exhibit A -18- Exhibit B -19- Exhibit B -20- Exhibit B -21-