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2009-27049 ResoRESOLUTION NO. 2009-27049 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PERTAINING TO THE REJECTION OF ALL PROPOSALS PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 39-07/08, FOR THE MANAGEMENT AND/OR DEVELOPMENT OF THE BYRON CARLYLE THEATER COMPLEX. WHEREAS, Request for Proposal, (RFP) No. 39-07/08 for the Management and/or Development of the Byron Carlyle Theater Complex, was issued on July 22, 2008 with an opening date of September 30, 2008; and WHEREAS, apre-proposal conference to provide information to the proposers submitting a response was held on August 21, 2008; and WHEREAS, BidNet issued bid notices to 71 prospective proposers, BidSync (Formerly known as RFP Depot) issued bid notices to 33 prospective proposers, and 87 proposers were notified via mail, a-mail, and fax circulation, which resulted in the receipt of two (2) proposals from Kijik Multimedia and Miami Hispanic Ballet; and WHEREAS, the City Manager via Letter to Commission (LTC) No. 278-2008, appointed an Evaluation Committee ("the Committee") consisting of the following individuals: • Ada Llerandi, Resident and former Chair of the Cultural Arts Council; • Alan Randolph, North Beach Resident; ~, • David Phillips, CFO of the New World Symphony; • Eric Lawrence, North Beach Resident; • Joyce Meyers, Principal Planner, Planning Department; • Daniel Veitia, North Beach Resident • Sol Genet, Vice-President of the Cultural Arts Council; and WHEREAS, the Committee convened on November 11, 2008; and WHEREAS, Max Sklar, Director of the Tourism and Cultural Development Department, addressed the Committee and provided general information on the scope of services; The Committee members were also provided with Performance Evaluation Surveys and a presentation from both proposers; and WHEREAS, the Committee discussed its individual perceptions of the proposers' qualifications, experience, price and competence, and ranked the proposers being evaluated accordingly; and WHEREAS, the Committee unanimously recommended to reject both proposals received and further recommend that the City issue a new RFP; and WHEREAS, the Finance and Citywide Projects Committee considered this matter at it meeting on March 10, 2009, and recommended that the City reject all proposals and issue a new RFP. WHEREAS, at its regular meeting on April 22, 2009, the City Commission accepted the City Manager's (and the Finance and Citywide Projects Committee's) recommendation as to rejection of all proposals, but further determined not to issue a new RFP. 2009-27049 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, the Mayor and City Commission of the City of Miami Beach, Florida, accept the recommendation of the City Manager pertaining to the rejection of all proposals pursuant to Request for Proposals (RFP) No. 39-07/08, for the Management and/or Development of the Byron Carlyle Theater Complex. APPROVED AS TO FORM & LANGUAGE PASSED AND ADOPTED THIS 22nd DAY OF April 2009. ATT ST: ~~ CITY CLERK IGIAY~OR - ` Robert Parcher Matti Herrera Bower T:\AGENDA12009Wpril 22\Consent\RFP-39-07-08 Byron Carlyle - Resolution.doc FOR EXEC TION .-' /" t /°~ ~" ~ ~ ~__ ~ e Date ,. COMMISSION ITEM SUMMARY Condensed Title: Accept the City Manager's Recommendation Pertaining To The Rejection of All Proposals Pursuant to Request For Proposals (RFP) No. 39-07-08, For The Management And/Or Development of The Byron Carlyle Theater Complex Authorizing The Administration To Re-Issue The RFP. Ke Intended Outcome Su orted: Increase communi ratin of cultural activities. Supporting Data (Surveys, Environmental Scan, etc.): 60% of businesses and 66% of residents now say there is the right number of cultural activities. However the North Beach community is not as satisfied with the amount. Issue: Shall the City Commission approve the City Manager's recommendation? Item Summa /Kecommenaation: On July 16, 2008, the Mayor and City Commission approved the issuance of Request for Proposals (RFP) No. 39-07/08 for The Management And/Or Development of The Byron Carlyle Theater Complex. The goal of that RFP was the selection of anorganization/consortium to develop and implement arts, entertainment, cultural-themed uses and / or other potential uses for all or part of the Byron Carlyle theater complex, while managing and operating all or a portion of the complex in a first class, high quality, state-of-the-art manner that meets the needs of the residents, visitors, tourists, City businesses, and the general public. RFP No. 39-07/08 was issued on July 22, 2008 with an opening date of September 30, 2008. Apre- proposalconference to provide information to the proposers submitting a response was held on August 21, 2008. BidNet issued bid notices to 71 prospective proposers, BidSync (Formerly known as RFP Depot) issued bid notices to 33 prospective proposers, and 87 proposers were notified via mail, a-mail, and fax circulation. These notices included all cultural groups who have applied for a grant with the City. Additionally, Miami-Dade County Department of Cultural Affairs also sent a-mails to their user group regarding the City's RFP. This resulted in the receipt of two (2) proposals The City Manager, via Letter to Commission (LTC) No. 278-2008, appointed an Evaluation Committee ("the Committee"), which convened on November 11, 2008. The Committee unanimously recommended to reject both proposals received and request the re-issuance of the RFP for the Management and/or Development of the Byron Carlyle Theater Complex. The Finance and Citywide Projects Committee considered this matter at their meeting on March 10, 2009. The Finance and Citywide Projects Committee also recommended that the City reject all proposals and re- issue anew RFP. It was recommended that the new RFP should encourage potentially different uses for the facility and should request superior evidence of financial capacity of the proposers, as well as demonstrated capacity to sustain the proposed programming at the time of submission of their proposal. ACCEPT THE CITY MANAGER'S RECOMMENDATION. Advisory Board Recommendation: The Finance and Citywide Projects Committee considered this matter at their meeting on March 10, 2009. The Committee recommended that the City reject all proposals and re-issue a new RFP. Financial Information: Source of Amount Account Approved Funds: ~ 0 2 OBPI Total Financial Im act Summa : N/A City Clerk's Office Legislative Tracking: Sign-Offs: ~ / "~ r, De ment e t t Ci M i Mana er GL MS PDW JMG v ~ v •- T:\AGENDA 091April 22\Cons FP-39- 7-09 Byron Carlyl - Summary.doc AGENDA ITEM G7J ~ MIAMI ~EA+C~ '~~ DATE ~~a~a'O m MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM To: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: April 22, 2009 SUBJECT: A RESOLUTION OF THE MAYOR AND COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PERTAINING TO THE REJECTION OF ALL PROPOSALS PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 39-07/08, FOR THE MANAGEMENT AND/OR DEVELOPMENT OF THE BYRON CARLYLE THEATER COMPLEX; AUTHORIZING THE ADMINISTRATION TO RE-ISSUE THE RFP. ADMINISTRATION RECOMMENDATION Adopt the Resolution. KEY INTENDED OUTCOME SUPPORTED Increase community rating of cultural activities. ANALYSIS The Byron Carlyle Theater Complex (the "Theater"), located at 500 71St Street, between Byron Avenue and Carlyle Avenue, originally opened in December 1968 as twin cinemas hosting first-run movies in the heart of North Beach. A total of 994 seats were originally built, with the large auditorium having a capacity of 590 seats. In the mid-1970s, the Theater was re- developed into a multiplex cinema; the larger auditorium to the west was subdivided into five (5) smaller theaters. The Theater continued to operate until it was sold by its owner, Wometco Enterprises, when the City of Miami Beach purchased it in 2001, for $1.7 million. Phase I of the renovation of the Theater ($1.7 million) was completed by the City's Property Management Division during approximately 16 months of design and construction for the Theater on the eastern portion of the complex. The total seating capacity for the renovated Theater is 304, with 158 seats in the orchestra level, and 138 seats in the mezzanine level, in addition to 8 ADA seats. The western portion of the complex and certain back stage needs of the Theater were not incorporated into the renovation due to space limitations and the need to not exceed 50% of the value of the structure in renovation costs that would have required the whole structure to be brought up to current code standards. These standards include the need to elevate the floor to meet FEMA Flood Elevation requirements. Any new improvements done to the western portion of the complex would also require the structure to comply with the current Florida Building Code. Although it was initially intended to renovate the western portion of the building, as of yet, funding has not been available. That portion of the building remains closed Commission Memorandum - RFP#39-07-08 For Management and/or Development of the Byron Carlyle Theater Complex April 22, 2009 Page 2 and cannot be used per Code. In January 2006, C3TS (consultant) completed a feasibility study for the City's Capital Improvement Projects Department that looked into various adaptive re-use scenarios for the un-renovated western portion of the building. The options presented included a black box theater, dance studio, film and digital media programs, retail and commercial space, as well as other needs to support the existing theater on the eastern portion of the complex. The Byron Carlyle Theater was extremely successful during its first year of operation during the 2004/05 fiscal year, which coincided with the Colony Theater being closed for renovations, exceeding its booking and income projections by 262%. However, bookings significantly declined following the reopening of the more desirable Colony Theatre (the "Colony") in January 2006. The Colony continues to be heavily booked. Although the Byron Carlyle occasionally attracts a group unable to book the Colony, and the management company actively markets the venue, the theater sits empty most of the time. In FY 08, utilization was 29%. Current year utilization is projected at 15%. In July 2007, the City Commission adopted a resolution that gave the Administration more flexibility to negotiate rates and encourage longer run productions, with the hope of increasing usage of the facility and providing additional programming. Two (2) independent Spanish language theater productions took advantage of the flexible rates during the summer and winter of 2007. They enjoyed some success with an extended run production. Unfortunately, very few organizations have availed themselves of this program and bookings in the current fiscal year have declined. The last three fiscal years have yielded operating deficits for the Byron Carlyle, ranging from approximately $195,000 in 2006, to a projected deficit of approximately $170,000 in the current fiscal year. As a result of the aforementioned decline and in an effort to maximize the potential of the Theater Complex, the City Commission directed the City Administration to research and propose alternatives for the privatization of the Byron Carlyle Theater during their retreat on May 2 & 3, 2008. Subsequently, at the July 9, 2008, Finance and Citywide Projects Committee meeting, the Committee directed staff to place this item on the next City Commission agenda. The City has not predetermined a specific use for the theater complex and proposers were encouraged to submit proposals that meet the needs of the community and provide both daytime and nighttime uses. The City was open to proposals that considered the use of the current theater facility on the eastern portion of the complex, the unrenovated western portion of the facility or for the overall complex. Proposers had the ability to submit proposals for the use or development of the entire complex or only for one portion of the complex. Moreover, proposers were free to recommend alternative (non-theatrical) uses for each portion or the entire complex. The proposer would be responsible for any renovation or alterations to the current facility; the maintenance of the building and equipment; the marketing of the facility; coordination of facility's utilization and scheduling; and any and all other responsibilities as may be required for their proposed use. Commission Memorandum - RFP#39-07-08 For Management and/or Development of the Byron Carlyle Theater Complex April 22, 2009 Page 3 RFP No. 39-07/08 was issued on July 22, 2008 with an opening date of September 30, 2008. A pre-proposal conference to provide information to the proposers submitting a response was held on August 21, 2008. BidNet issued bid notices to 71 prospective proposers, BidSync (Formerly known as RFP Depot) issued bid notices to 33 prospective proposers, and 87 proposers were notified via mail, a-mail, and fax circulation. These notices included all cultural groups who have applied for a grant with the City. Additionally, Miami-Dade County Department of Cultural Affairs also sent a-mails to their user group regarding the City's RFP. This resulted in the receipt of following two (2) proposals: 1. KIJIK MULTIMEDIA 2. MIAMI HISPANIC BALLET Kiiik Multimedia Kijik Multimedia (Kijik) proposed to create the Byron Carlyle Multimedia Center, providing innovative theater performances, theater programs, film workshops, seminars, panels, concerts and film screenings. The proposal called for a renovation to the western portion, or un-renovated, portion of the facility to add soundstages, editing and computer graphics suites and ultimately live/work space. The proposal also included creating multimedia training, workshops and seminars, after school and summer programs at the facility. Kijik Multimedia also contemplated a food and beverage operation. The redevelopment of the facility would occur in three (3) phases as follows: Phase 1: Improvements to current theater space to include small scene shop/storage space, lighting and electrical storage, prop room, equipment and costume storage, trash room, utilities room and rehearsal space (optional). Phase 2: Development of the western portion of the facility to include computer graphic and animation suites, a black box theater, office and/or live work space, and retail. Phase 3: Six story addition to the western portion of the facility with additional office and/or live work units. This would occur within the first six years of operation. The proposal estimates that it would cost Kijik approximately $3.1 million to complete Phase 1 and 2 of their proposal. They partnered with North Shore Holdings, LLC to manage the redevelopment and financing of this project. During their presentation Kijik advised the Committee they would obtain financing and grants to fund the redevelopment of the theater. Their proforma shows gross revenue in the first year of operation after renovations of approximately $1.1 million, with a 5% return to the City of $57,709. Miami Hispanic Ballet Miami Hispanic Ballet proposed to create a Hispanic Cultural Art Center by consolidating three cultural organizations: Miami Hispanic Ballet, Creation Art Center, and Cuban Classical Ballet of Miami. The three organizations would establish an educational dance space, dance performances, Spanish speaking theater productions and workshops, and other cultural program. Commission Memorandum - RFP#39-07-08 For Management and/or Development of the Byron Carlyle Theater Complex April 22, 2009 Page 4 The eastern portion would continue to house the current the 304 seat theater, dressing rooms, administrative offices, as well as lounge and loading dock space. The western portion would be renovated to provide two dance studios for rehearsals and classes, a lounge, office spaces and dressing rooms. The original proposal submitted estimated the cost of the improvements to be $500,000, to be funded by a grant awarded to the Miami Hispanic Ballet from Miami- Dade County Building Better Communities Bond Program. The proforma estimated gross revenue to be $880,000 in their first full year of operation and did not include any return to the City. At the time of the presentation, they revised their proposal to include a return to the City of 0% in year 1, 2% commission of theater box office revenue in years 2 and 3, and 5% commission of theater box office revenue beginning in year 4. Please note the Evaluation Committee was precluded from considering this information as it was submitted subsequent to the original proposal. On December 11, 2008, Miami Hispanic Ballet submitted an unsolicited addendum to their proposal. Please note the Evaluation Committee met and made a recommendation on November 11, 2008. The addendum included a revised capital investment of $1 million required to improve the facility. This would be funded by the aforementioned $500,000 grant from Miami-Dade County and an additional $500,000 from the Miami-Dade County Department of Cultural Affairs. Additionally, they revised their revenue proposal to the City and offered 40% of 3`d party theater rental revenue, plus 2% commission on box office revenue. They estimated this to be $20,000 to the City in the first year of operation. Finally, the addendum included a revised budget for the first year of operation, which reflected revenues to be just over $1 million (did not clarify whether gross or not). Evaluation Committee The City Manager, via Letter to Commission (LTC) No. 278-2008, appointed an Evaluation Committee ("the Committee") consisting of the following individuals: • Ada Llerandi, Resident and former Chair of the Cultural Arts Council • Alan Randolph, North Beach Resident • David Phillips, CFO of the New World Symphony • Eric Lawrence, North Beach Resident • Joyce Meyers, Principal Planner, Planning Department • Daniel Veitia, North Beach Resident • Sol Genet, Vice-President of the Cultural Arts Council On November 11, 2008, the Committee convened and a quorum was attained. The Committee unanimously nominated Mr. Sol Genet as Chair of the Committee. Max Sklar, Director of the Tourism and Cultural Development Department, addressed the Committee and provided general information on the scope of services. The Committee members were also provided with Performance Evaluation Surveys and a presentation from both proposers. The Committee discussed their individual perceptions of the proposer's qualifications, experience, and competence, and ranked the proposals accordingly. The Committee unanimously recommended to reject both proposals received and request the re-issuance of Commission Memorandum -RFP#39-07-08 For Management and/or Development of the Byron Carlyle Theater Complex April 22, 2009 Page 5 the RFP for the Management and/or Development of the Byron Carlyle Theater Complex. The Committee recommended that the new RFP should have more specific goals and establish a greater emphasis on the financial viability of the proposals. Additionally, they recommended that the City create a true partnership with the successful proposer selected through any subsequent RFP. The following are comments provided by the evaluation committee members relative to each the proposers: Kiiik Multimedia • Phase I looks good but financial viability is a concern. I love the Cinema Draft House but they don't have much experience. • Aggressive and ambitious opportunity. They will need to find a funding partner. Exciting idea but I question the demand. • Solid estimate of capital and operating costs but revenue assumptions are not supported. • Financial documentation needs to be further explored. • Presenter underestimated cost to operate was the ongoing concern of concept of phase one completion. There was no assurance of how presenter will be able to financially complete phase III of project and sources of how they will complete phase I. I seriously doubt the organization's ability to develop this project based on their lacking development experience. • Staff also identified that the proforma does not include any debt service costs likely required if financing is obtained for the redevelopment. Miami Hispanic Ballet • The objective is terrific and the city of Miami Beach would be hugely benefited by this project. However, serious concerns as to financial preparation for this proposal; financial viability is a concern. • Unique idea, a need for the Miami-Dade Community. Appears risky financially for the City of Miami Beach. No future revenues for the City proposed. • No term sheet was provided. Significantly underestimated capital and operating costs. • Excellent cultural organization but not sufficient experience, in capital cost and operational cost of a building. • No revenue was proposed to the City. It is also very low and based only on box office. • Culturally, this presenter would be absolutely wonderful for the community but I have very little confidence in the organization's ability to develop facility to code or ability to sustain their funding levels from private/public sources. They have very little financial acumen (at least as evidenced by their presentation) The highest score given to either proposer was 70. Each proposer was potentially able to receive a total of 700 points. Kijik received the most with 390 or 55% of all available points and Miami Hispanic Ballet received 371 or 53% of all available points. Kijik received 4 first place votes and 3 second place votes, and Miami Hispanic Ballet received 3 first place votes and 4 second place votes. A copy of the scores is attached for your reference. Commission Memorandum -RFP#39-07-08 For Management and/or Development of the Byron Carlyle Theater Complex April 22, 2009 Page 6 The Finance and Citywide Projects Committee considered this matter at their meeting on March 10, 2009. The Committee recommended that the City reject all proposals and re-issue a new RFP. It was recommended that the new RFP should encourage potentially different uses for the facility, and should request superior evidence of financial capacity of the proposers and demonstrated capacity to sustain the proposed programming at the time of submission of their proposal. The Administration considered the comments made by the evaluation committee and the Finance and Citywide Project Committee and have drafted a new RFP. The following outlines the Scope of Work, Goals and Objectives, Minimum Requirements, Proposal Format and Evaluation Criteria: SCOPE OF WORK/SPECIFICATIONS The City has not predetermined a specific use for all or some of the portions of the complex. Proposers are encouraged to submit proposals that will address the needs of the community and provide both daytime and nighttime uses. The City is open to proposals that consider the use of the current theater facility on the eastern portion of the complex, the unrenovated western portion of the facility or for the overall complex. Proposers have the ability to submit proposals for the use or development of the entire complex or only for one of the two portions of the complex. Moreover, proposers are free to recommend alternative (non-theatrical) uses for each portion or the entire complex. The proposer will be responsible for any renovation or alteration to the portions of the facility requested via this RFP including funding for any renovation or alteration; maintenance and equipment; marketing; coordination of utilization; and any and all other responsibilities as may be required for the proposed use. It is anticipated that the successful proposer will negotiate with the City for along-term contract with an initial term of five (5) years, with an option to renew for an additional five (5) year term, at the City's sole discretion. The successful proposer would work closely with the following: 1) The Mayor and City Commission. 2) The Tourism and Cultural Development Department. 3) The Miami Beach Cultural Arts Council. This City board acts in an advisory capacity to the City Commission on matters regarding cultural affairs. 4) The City's Economic Development Division. GOALS AND OBJECTIVES: The goal of this RFP is the selection of a public or private (not-for-profit or for-profit) entity to develop and implement active uses for all or part of the complex, while managing and operating all or a portion of the complex in a first class, high quality, state-of-the-art manner that meets the needs of the residents, visitors, tourists, City businesses, and the general public. To that end, proposals should present a comprehensive, well-articulated program for use and/or development of a portion or all of the complex, complete with supporting Commission Memorandum -RFP#39-07-08 For Management and/or Development of the Byron Carlyle Theater Complex April 22, 2009 Page 7 documentation, including design sketches, if necessary, that will demonstrate how the proposed project will enhance the vitality of the 71st Street corridor and neighboring business district (refer to the North Beach Town Center Plan provided with the RFP). A specific use for the facility has not yet been determined. Therefore, proposers are encouraged to submit proposals that provide daytime and nighttime uses. The City will accept proposals for the use and development of the entire complex or only for one portion of the complex. Moreover, proposers are free to recommend alternative uses and are not required to maintain the current (theater) programming. Proposers must present their experience, reputation and financial and managerial capability appropriate for the successful development and operation of a project of the type they are proposing, and they must present uses for some or the entire site. If renovations are anticipated, the proposers must demonstrate their experience in previously overseeing a similar renovation project. Furthermore, the City has multiple objectives which proposers must successfully address in their response to this RFP: • How they will efficiently operate the facility, while eliminating or minimizing direct costs to the City; • How they will properly maintain and safeguard the City's capital investment in the facility through the exercise of the highest standards of maintenance and preservation and, as the need arises, make or recommend capital improvements; • How they will manage day-to-day operations of all or the portion of the facility for which the proposer is submitting a proposal; • How they will oversee and provide superior services to users of the facility and patrons and visitors attending the facility, thereby maximizing customer satisfaction as exhibited by an industry-wide positive image; • How they will achieve the greatest possible profit by developing and implementing innovative ways to generate revenue and penetrate new markets, attract new events and promote the facility to maximize usage, during daytime and evening hours; • How they will actively solicit, promote or co-promote the facility and any proposed program(s)/services; • How they will create a comprehensive strategic plan for the future of all or a portion of the facility; • How they will achieve all objectives with the least possible disruption to the City and its citizens; • How they will achieve all objectives in a professional manner, consistent with best industry practices and all applicable laws and ordinances; • How they will respond to the ever-changing needs of the community and users of the facility with recommendations for expansions, renovations and upgrades of services; MINIMUM REQUIREMENTS /QUALIFICATIONS Proposers must provide the following information: 1) Contact Information: Present the proposer's current name, former names (if applicable), Commission Memorandum -RFP#39-07-08 For Management and/or Development of the Byron Carlyle Theater Complex April 22, 2009 Page 8 business address, telephone number, and primary contact, including the business resumes of all senior officers and partners. 2) Organizational Form: Provide a narrative summary of the nature and structure of the proposer's organization (e.g. corporation, partnership, sole proprieties, joint venture, or other) and how the proposal addresses each of the goals as indicated in the RFP. 3) Experience and Qualifications: Provide a narrative describing the entities that will be involved, a description of the roles they will play (e.g., partner, management group, property manager, building lessee, event programmer/presenter), the contractual relationships within the team, the financial responsibilities and percentage of ownership (if applicable) of each team entity, a description and evidence of the nature of each entity's commitment to the project, and a summary of the team's past experience in working together on a similar project. A description of each of the entities' experience in developing and managing similar projects and roles must be included, including location, type of facility, beginning and ending dates of involvement, and information about any continued financial or operating interest in each. Include specific previous relevant experience with public entities, including reference contact information. The City may ask for supporting documentation substantiating claims of previous experience. Identify the principal person who will speak for the responding entity and any other key participants who will be involved in negotiating the contract terms. Specify whether the respondent entity is or intends to form a corporation, a general or limited partnership, a joint venture, a 501(c)(3) corporation, or other type of business association to carry out the proposed activities. The respondent must also provide a minimum of the most current two consecutive years of financial statements for the entity(ies) and/or principal(s) that comprise or will comprise the respondent. The City will treat financial statements submitted under this procedure as either business data or RFP data pursuant to Florida Statutes. However, the City assumes no liability should this data be ruled public data by a court of competent jurisdiction. 4) Organization Philosophy and Approach: Provide a description of the proposer's overall philosophy and approach to the development, use, management and operation of the facility. Describe any proposed initiatives specific to a proposed management approach for the facility, focusing especially on how the proposer plans to accomplish the City's goals and objectives. This should include a description of the type of proposed uses for all or the portion of the facility for which the proposer is submitting a proposal; whether or not the proposal contemplates the use of all or the portion of the facility; the content of any proposed programming (proposers should be aware that any proposed content should be suitable for a municipal venue); any research or analysis (including market research) to support the need or potential success of the proposed use; the hours/days of operation; as well as other pertinent information that will aid the City in making a determination. Reference to all of all or part of the facility specifically refers to the eastern (renovated theater) and western (unrenovated) portions of the facility. Proposers may submit proposals for all or part of the facility. 5) Marketing Plan: Provide a marketing plan for the facility and the proposed use(s). The proposer must submit information which describes its approach to a successful venue. The proposer should describe its marketing and promotional concepts to attract visitors and guests that will take advantage of Miami Beach's unique position. The proposer should also provide a plan which will maximize revenue to the City and how it intends to generate new local business. 6) Subcontractor Information and Qualifications: The successful proposer may elect to subcontract some portions of the services or uses. While specific subcontractors may not be identified until after award of the management or operation agreement, wherever the Commission Memorandum - RFP#39-07-08 For Management and/or Development of the Byron Carlyle Theater Complex April 22, 2009 Page 9 proposer intends to subcontract certain services or uses, the specific services or uses must be identified in this section of the proposal. 7) Scope of Proposal: Proposers must provide information describing the proposed strategies, policies and procedures to be employed in managing/developing/operating the facility. 8) A term sheet that outlines proposed contract terms and conditions. Each submittal must include a specific proposal for the proposed revenues to be shared with the City as compensation to the City for the exclusive use and operation of one or both portions of the facility. It should be noted by the proposer that the City typically receives a minimum guarantee and a percentage of gross revenues. If the proposal contemplates different uses for different portions of the complex, then the term sheet must reflect the proposed terms and conditions for each portion, and whether or not the proposer requesting both portions would consider operating only one portion if the proposer were only selected for one portion or whether the project can only function as a whole. 9) If applicable, a preliminary capital pro forma showing the detailed sources and uses of funds (debt, equity and other) to develop (design and build) the portion(s) of the complex that are proposed, and/or undertake proposed capital equipment purchases and capital improvements during the initial five years of the agreement. Information as to the status of securing those funds should be included, and inclusion of a conditional financing commitment is strongly encouraged. Proposer MUST clearly indicate any public assistance to be requested. 10) A preliminary five-year operating pro forma. Include the assumptions underlying the income and expense projections. Clearly indicate the sources and amounts of revenues and provisions for a capital improvement reserve. Also show the Cash-on-Cash Return and Internal Rate of Return and describe proposed distribution or utilization of net operating income. If the proposal is for the entire complex and/or contemplates different uses for different portions of the complex, a pro forma for each use must be submitted. 11)A staffing plan that includes an organizational chart showing key management personnel and identification of onsite management, including security. 12) Operating Plan: Proposer shall describe the operating policies and procedures to be employed by the operator to manage and/or operate all or a portion of the facility. Describe any proposed initiatives which would improve the management and/or reduce the operational cost of all or portion of the facility. The proposer should also describe its approach to financial management systems, employee management and administrative policies and procedures. 13) A transition plan if applicable, for the assumption of booking and management duties from the current Management Agreement (for eastern portion of facility only). 14) Project timeline (including development) 15) Any other information that would help City staff understand and evaluate the concept. EVALUATION/SELECTION PROCESS The procedure for Proposal evaluation and recommendation will be based on the following factors: 1) Experience and qualifications of the proposer and key staff (including development and/or management of similar uses)- 30 points 2) Organization philosophy and approach for use of all or some portion of the facility, including the demonstrated ability to achieve the goals and objectives of the City, Commission Memorandum - RFP#39-07-08 For Management and/or Development of the Byron Carlyle Theater Complex April 22, 2009 Page 10 including the quality, suitability and sustainability of the program/concept within the community; ability to meet proposed project timelines; and marketing plan - 25 points 3) Term sheet to include proposed revenue to the City -15 points 4) Preliminary five-year pro forma, including capital pro forma (if applicable) -15 points 5) Staffing, operating and transition plan -15 points CONCLUSION The Administration recommend that the Mayor and members of the City Commission adopt the recommendation of the City Manager pertaining to the rejection of all proposals pursuant to Request for Proposals (RFP) No. 39-07/08, for the management and/or development of the Byron Carlyle Theater Complex, and authorize the administration to re-issue the RFP. 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