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2011-27738 Reso RESOLUTION NO. 2011 -27738 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 RANKING OF PROPOSALS PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO 33- 10/11, FOR CONSULTING SERVICES RELATIVE TO THE EXPANSION AND ENHANCEMENT OF THE MIAMI BEACH CONVENTION CENTER (MBCC) CAMPUS /DISTRICT; AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE TOP - RANKED PROPOSER, STRATEGIC ADVISORY GROUP; AND SHOULD THE ADMINISTRATION NOT BE SUCCESSFUL IN NEGOTIATING AN AGREEMENT WITH THE TOP - RANKED PROPOSER, AUTHORIZING THE ADMINISTRATION TO NEGOTIATE WITH THE SECOND - RANKED PROPOSER, HVS CONVENTION, SPORTS & ENTERTAINMENT CONSULTING; AND SHOULD THE ADMINISTRATION NOT BE SUCCESSFUL IN NEGOTIATING AN AGREEMENT WITH THE SECOND - RANKED PROPOSER, AUTHORIZING THE ADMINISTRATION TO NEGOTIATE WITH THE THIRD - RANKED PROPOSER, HR & A ADVISORS, INC. WHEREAS, on March 9, 2011, the Mayor and City Commission adopted Resolution No. 2011- 27620, which endorsed and supported, in concept, a project to renovate and expand the Miami Beach Convention Center, including an adjacent Convention Center hotel (the Project); and WHEREAS, the City Commission also authorized the City Manager to pursue private sector interest in the Project, including potential joint development alternatives, without being constrained by current zoning limitations for the site or by the current conceptual design; and WHEREAS, at its March 9, 2011 meeting, the Mayor and City Commission authorized the Administration to issue a Request for Proposals (RFP) for Consulting Services Relative to the Expansion and Enhancement of the Miami Beach Convention Center (MBCC) Campus /District; and WHEREAS, RFP No. 33 -10/11 was issued on May 24, 2011, and notices sent to over 67 firms, including a list of 21 firms provided by the Tourism and Cultural Arts and Development Department, and more than 30 firms that are members of the International Economic Development Council; and WHEREAS, the result of the aforementioned outreach was the receipt of seven (7) proposals from the following firms: • C.H. Johnson Consulting, Inc.; • Convention Center Hotel Advisors, LLC; • Conventional Wisdom; • HR & A Advisors, Inc.; • HVS Convention, Sports, & Entertainment Facilities Consulting; • Jones Lang LaSalle Americas, Inc.; and , • Strategic Advisory Group; and WHEREAS, on June 17, 2011, the City Manager, via Letter to Commission (LTC) No. 152 -2011, appointed the following individuals to serve as Evaluation Committee members (the Committee): • Raul Aguila, Chief Deputy City Attorney; • Stuart Blumberg, Chairperson, Convention Center Advisory Board; • Jorge Gomez, Assistant City Manager; • Jay Levy, Resident, Palm View Neighborhood; • Jacqueline Menendez, Vice President, University Communications, University of Miami; • Miguel Southwell, Deputy Aviation Director, Business Development & Retention, Miami International Airport; • Patricia Walker, Chief Financial Officer; and WHEREAS, on July 1, 2011, the Committee convened and was informed of the City's Cone of Silence and Government in the Sunshine Law requirements, and was given a Project overview; and WHEREAS, on July 5, 2011, the Committee convened and listened to presentations and conducted question and answer sessions with the following firms: • C.H. Johnson Consulting; • Jones Lang LaSalle; • Convention Center Hotel Advisors; and WHEREAS, on July 11, 2011, the Committee convened and listened to presentations from the following firms: • Conventional Wisdom; • HVS Convention, Sports, & Entertainment Facilities Consulting (HVS); • Strategic Advisory Group; • HR & A Advisors, Inc.(HR & A); and WHEREAS, following the aforestated presentations, the Committee ranked the proposing firms as follows: HVS as the top- ranked firm; HR & A as the second - ranked firm; and Strategic Advisory Group as the third - ranked firm; and WHEREAS, after considering the review and recommendation of the Committee, and in light of the importance and scope of the Project, the City Manager exercised his own due diligence by reviewing all the proposals and supporting documentation, and conducting question and answer sessions with the top three (3) ranked firms' key personnel; and WHEREAS, although, in the Manger's opinion, all three (3) firms demonstrated excellent experience and qualifications, he deemed Strategic Advisory Group (SAG) as the most qualified firm based, on its experience with similar projects in Florida and throughout the Country in convention center and convention center hotel development, public private partnerships, capital structuring, tax - exempt asset financing, tax revenue projection, and bond offering due diligence. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby accept the recommendation of the City Manager pertaining to the ranking of proposals pursuant to Request for Proposals (RFP) No. 33- 10/11, for Consulting Services Relative to the Expansion and Enhancement of the Miami Beach Convention Center (MBCC) Campus /District; authorize the Administration to enter into negotiations with the top- ranked proposer, Strategic Advisory Group; and should the Administration not be successful in negotiating an agreement with the top- ranked proposer, authorize the Administration to negotiate with the second - ranked proposer, HVS Convention, Sports & Entertainment Consulting; and should the Administration not be successful in negotiating an agreement with the second - ranked proposer, authorize the Administration to negotiate with the third- ranked proposer, HR & A Advisors, Inc. PASSED AND ADOPTED THIS l 4 1 DAY OF 41016/2011. ATTEST: • .„ :Po 6.,..a pasu,k,„ mss' .4. „it /. , ' :�r�...�� CITY CLERK if Q � , •. '4 0 ' % ' A 'J R .1. ,-- .. 1* * INCORP ORATED • : i 4„/4... 2�••. - C7J�.E NI H26.. APPROVED AS TO FORM & LANGUAGE T:\ AGENDA\ 2011\ 9 -14 -11 \ConsultantConvenionCenterRESO .docx & FOR CUTION ik 22 t s � 1 i Date i U t , COMMISSION ITEM SUMMARY Condensed Title: A Resolution Accepting The Recommendation Of The City Manager Pertaining To The Ranking Of Proposals For Consulting Services Relative To The Expansion And Enhancement Of The Miami Beach Convention Center (MBCC) Campus /District; Authorizing The Administration To Enter Into Negotiations With The Top- Ranked Proposer, Strategic Advisory Group (SAG) And Should The Administration Not Be Successful In Negotiating An Agreement With The Top- Ranked Proposer, Authorize The Administration To Negotiate With The Second - Ranked Proposer, HVS; And Should The Administration Not Be Successful In Negotiating An Agreement With The Second - Ranked Proposer, Authorize The Administration To Negotiate With The Third - Ranked Proposer, HR & A. Key Intended Outcome Supported: Improve the Convention Center Facility Supporting Data (Surveys, Environmental Scan, etc.): The 2009 Community Satisfaction Survey indicated that residents attended events at the convention center 2.7 times per year. Issue: 1 Shall the Mayor and City Commission adopt the Resolution? 1 Item Summary /Recommendation: On June 17, 2011, the City Manager via Letter to Commission (LTC) No. 152 -2011, appointed the Evaluation Committee members. On July 5, 2011, the Committee convened and listened to presentations and conducted question and answer sessions with the following three (3) firms: C.H. Johnson Consulting; Jones Lang LaSalle; and Convention Center Hotel Advisors. Two (2) other firms (HR & A Advisors, and HVS) had been scheduled for teleconference interviews. However, the Committee agreed that it would be in the City's best interest to afford all seven (7) firms the opportunity for "in- person" presentations and interviews. Therefore, the remaining four (4) firms were scheduled to present on July 11, 2011. On July 11, 2011, the Committee convened and listened to presentations from the following firms: Conventional Wisdom; HVS Convention, Sports, & Entertainment Facilities Consulting; Strategic Advisory Group; and HR & A Advisors, Inc. Since none of the firms had a majority of the Committee's first place votes (i.e., 4 first place votes), the Committee agreed to recommend the top three (3) ranked firms based on the total low aggregate score. For example, a first place vote would be worth 1 point; a second place vote would be worth 2 points; etc. The lowest aggregate scores would determine the order of ranking. After considering the review and recommendation of the Evaluation Committee, the City Manager exercised his due diligence by reviewing all the proposals and supporting documentation, and conducted question and answer sessions with the top three (3) firms' key personnel. Although all three (3) firms demonstrated excellent experience and qualifications, Strategic Advisory Group (SAG) was deemed the most qualified firm based on the vast experience as detailed in the attached Commission Memorandum. ADOPT THE RESOLUTION. Advisory Board Recommendation: Financial Information: Source of Funds: Amount Account Approved 1 ()BPI Total Financial Impact Summary: City Clerk's Office Legislative Tracking: Gus Lopez, ext. 6641 Sign -Offs: Department Director � stant Cit nager City Manager 1i', GL MS HF JMG T: AGENDA\201119 - 14- 111ConsultantM = CSumma !R AGENDA ITEM R 7 & - M IAM I B AC q— � GATE � � `i, 11 1 -6 MIAMI BEACH 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: September 14, 2011 SUBJECT: 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 RANKING OF PROPOSALS PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO 33- 10/11, FOR CONSULTING SERVICES RELATIVE TO THE EXPANSION AND ENHANCEMENT OF THE MIAMI BEACH CONVENTION CENTER (MBCC) CAMPUS /DISTRICT; AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE TOP - RANKED PROPOSER, STRATEGIC ADVISORY GROUP, AND SHOULD THE ADMINISTRATION NOT BE SUCCESSFUL IN NEGOTIATING AN AGREEMENT WITH THE TOP - RANKED PROPOSER, AUTHORIZE THE ADMINISTRATION TO NEGOTIATE WITH THE SECOND - RANKED PROPOSER, HVS CONVENTION, SPORTS & ENTERTAINMENT CONSULTING; AND SHOULD THE ADMINISTRATION NOT BE SUCCESSFUL IN NEGOTIATING AN AGREEMENT WITH THE SECOND - RANKED PROPOSER, AUTHORIZE THE ADMINISTRATION TO NEGOTIATE WITH THE THIRD - RANKED PROPOSER, HR & A ADVISORS, INC. ADMINISTRATION RECOMMENDATION Adopt the Resolution. BACKGROUND Discussions regarding enhancements to the Miami Beach Convention Center (MBCC or the Convention Center) have been ongoing for almost ten years, dating back to an October 2001 report from Convention Sports & Leisure (CSL) commissioned by the Greater Miami Convention and Visitors Bureau (GMCVB), in partnership with the City, which analyzed the status of convention and meeting facilities in Miami -Dade County, as well the competitive standing of these facilities. The CSL report concluded that, given the MBCC's geographic draw, no new facility should be planned elsewhere in Miami -Dade County but, instead, improvements to MBCC (including a multi - purpose general assembly /banquet hall) should be made to increase the marketability of the Convention Center and of the region. In 2004, the Building Better Communities General Obligation Bonds Program was approved Countywide, and included a total of $55 million for Convention Center enhancement and expansion. The availability of this funding prompted further discussion among interested stakeholders (e.g. representatives of the Convention Center Advisory Board, the Miami Beach Visitors and Convention Authority, the GMCVB, the Greater Miami and the Beaches Hotel Association, Miami -Dade County, the Convention Center managers [SMG and now Global Spectrum] and City staff) and subsequent updates to the CSL report. As a result, at the April 11, 2007 City Commission Meeting, the City Commission passed a motion supporting a proposed MBCC expansion (to include a ballroom, retrofit of space to accommodate new meeting rooms, and renovations to the northwest ballroom to create a "junior ballroom "), subject to the County funding all costs associated with the project, and the County managing the renovations /construction process. i Consultant Services Re Expansion and Enhancement of MBCC Campus /District September 14, 2011 Page 2of Following several attempts to meet with the County to discuss funding availability and the scope of the project, at a meeting between the City and County Mayors and Managers in April 2008, a new plan of action was agreed upon that would have the City and County, in conjunction with interested stakeholders, develop a Tong -term vision and Master Plan for this regional convention center. This Master Plan was intended to look "outside of the box" at possibilities to make MBCC competitive in today's convention and meeting business climate. This would involve looking at existing and potential site amenities, physical renovations to the interior and exterior, expansion of exhibit space (to include necessary multi - purpose /ballroom space), technology upgrades, parking, etc. MASTER PLAN PROCESS Needs Assessment As part of the Master Plan development process, the GMCVB contracted with CSL to conduct a new study focused on, among other things: identifying current industry trends; competitive /comparable facility analysis; existing and projected utilization at the Convention Center; and a market demand analysis. CSL would also work jointly with a selected architectural firm, and with the stakeholders, in developing a proposed Master Plan that would incorporate research - driven improvements focused on making the Convention Center competitive and marketable. The CSL report identified the following needs: Multi - Purpose /Ballroom Space; Meeting Space; Unique Features (e.g. outdoor terrace); Destination Planning and Development of a Convention Center District; and Convention Center Headquarters Hotel. Master Plan Development A competitive process was issued for the selection of the Master Plan architect to create a vision for the implementation of those needs, and others that might be identified. Arquitectonica was competitively selected as the Master Plan architect. Additionally, in January 2010, in an effort to ensure that the process was guided with additional feedback beyond the CSL report, I convened a Miami Beach Convention Center and Conference Facility Expansion Steering Committee to provide input to the City and Arquitectonica relating to the proposed MBCC expansion. This group (expanded beyond the group of original stakeholders that had been providing input on the Convention Center's needs) included representation from PricewaterhouseCoopers's Hospitality Division, Lincoln Road Merchants Association and the resident/business community, as well as users of the facility, such as the Jewelry International Showcase, Reed Exhibitions, Latin America, and National Marine Manufacturers Association. They, and four subcommittees, met numerous times throughout 2010. The Steering Committee established nine (9) goals for the Master Plan process. Master Plan Recommendations Using the information from the CSL report and input from the Steering Committee, Arquitectonica developed a preliminary Master Plan that recommended several specific enhancements for the facility, including: • Re- orient the entrance of the Convention Center to create a new facade with a main entrance facing south towards Lincoln Road, to address existing operational challenges and connect the facility with nearby amenities (e.g. Lincoln Road, NWS, etc); • Establish a new lobby and a new covered drop -off street running east -west along 18 Street, between The Filimore and City Hall; • Add approximately 213,000 square feet of additional exhibit space (for a total of 715,000 square feet); a 60,000 square foot multi - purpose ballroom; a 21,600 square foot junior ballroom; an additional 82,000 square feet of meeting rooms; and an approximately 1,500 space parking garage structure. This area would take up the current location of the Convention Center Preferred Parking Lot and Convention Center Drive; • Add a 100,000- square -foot plaza and add outdoor meeting space (terraces) to take advantage of the local climate; Consultant Services Re Expansion and Enhancement of MBCC Campus /District September 14, 2011 Page 3 of 8 • Incorporate into the new facility (and update the existing facility with) the latest technologies; • Address "massing" issues with architectural designs that terrace the facility away from the Holocaust Memorial, Botanical Garden, and Meridian Avenue; • Add "green" components to the new and existing space (to achieve LEED certification); and • Identify potential locations for an adjacent Convention Center hotel. As importantly, based on City Commission direction, Arquitectonica was to work within existing zoning restrictions for the expansion area. The result was a design that addressed the issues and needs identified by CSL and the Stakeholders, but did so with a design that compensated for the height limitations with a building expansion that has sizeable massing. Consequently, this massing not only provides limited green space, but also raised concerns about the impact of this massing on the neighborhood and neighbors. These limitations also narrowed the potential locations for the placement of a highly- recommended Convention Center headquarters hotel. The Master Plan process also involved community input (including a Community Design Workshop) to minimize the potential impact of this project on neighbors, as well as solicit feedback on the proposed project. MASTER PLAN REPORT The Master Plan and Final Report was presented to the Steering Committee for its review and consideration at its February 4, 2011 meeting; the Steering Committee reviewed and endorsed the Master Plan and the Report. As is customary, the document includes project history and analysis (including civil, traffic, functional planning, food service, life- safety, MEP, structural, sustainability); site and district analysis; proposed site and building design; functional design; neighborhood impacts; phasing considerations; potential Convention Center hotel sites; long term options; and a projected cost analysis. The Report also addressed potential project phasing, acknowledging, among other things, the need to maintain the current facility operational. On February 24, 2011, the Finance and Citywide Projects Committee (the Finance Committee) met to consider the Master Plan Report (including the option of a Convention Center hotel). The City Manager, Arquitectonica, CSL and the Washington Economic Group (WEG) presented the Master Plan; research from CSL's 2009 strategic facilities analysis, as well as the result of economic impact findings from CSL and WEG. The Finance Committee recommended to conceptually endorse and in concept support the renovation and expansion of the Miami Beach Convention Center to address the needs identified (multi- use /ballroom space, more meeting rooms, upgrades to technology, outdoor venue, etc), including the development of an adjacent Convention Center Hotel. One of the reasons of the Finance Committee's support of the Plan "in concept" was to ensure that the City still had the flexibility and discretion to evaluate the project and explore options including, in particular, revisiting the massing and the design of the project without the constraint of current zoning restrictions in the project area. The Committee also supported the securing of a consultant to assist the City in moving forward on the overall project concept. This consultant is to conceptualize and recommend ideas and options to maximize the City's resources /assets and attract private investments to address identified needs, including but not limited to, the expansion and enhancement of the Convention Center, and the potential development of an adjacent Convention Center Hotel. The consultant would also assist in identifying potential redevelopment options for public assets in the area surrounding the Convention Center campus to support the Convention Center project. These options may include commercial, retail, and other mixed -use opportunities intended to maximize private investment and development, as well as creating potential public /private partnership opportunities. The consultant will also identify and recommend potential financing options for the development of the project(s) and other development concepts, Consultant Services Re Expansion and Enhancement of MBCC Campus /District September 14, 2011 Page 4 of 8 including but not limited to Public /Private Partnerships (PPP). They are to recommend to the City development approaches and construction management and operation methodologies for this project, and assist the City in the development of any competitive processes required, as well as assisting in the evaluation and selection of potential partner(s), and in negotiating terms with any selected project team(s). The consultant may be asked to assist in the implementation of the project(s). The Consultant is expected to provide transactional review, including sources of debt and equity, and is expected to identify creative development and financing structures. Any recommended financial plan developed by the consultant is to detail the assumptions used in the recommended development, and include operating projections that are supported by market research, a financing plan and project schedule. The consultant will also recommend development approaches and construction management and operation methodologies for the project(s) based on best practices. Finally, the Finance Committee recommended authorizing the City Manager to pursue legislative action, both locally, and at the State and federal levels, to help fund the estimated $640 million project. COMMISSION ACTION On March 9, 2011, the Mayor and City Commission passed and adopted Resolution No. 2011- 27620, which endorsed and supported in concept the project to renovate and expand the Miami Beach Convention Center, including an adjacent Convention Center hotel, but did not approve the proposed master plan concept design. Consistent with the Finance Committee's comments, this was in response to the massing that resulted from the limitations imposed on Arquitectonica relating to current zoning (height restrictions in particular). The Commission believed that a more favorable expansion (massing) scheme could be developed without these limitations. As such, they endorsed the identified needs delineated in the master plan, but not the proposed concept plan produced through this process. The Commission also authorized the City Manager to pursue private sector interest in the project, including potential joint development alternatives, without being constrained by current zoning limitations for the site or by the current conceptual design. As noted at the Finance Committee meeting (referenced above), based on potential development opportunities in the City Hall/ Convention Center area (including mixed -use development), it is believed that private- sector involvement is likely, and that this could result in greater private- sector investment into this public project, saving public dollars. In light of the economic impact of the project, the City Commission also directed the Administration to explore a broader economic development initiative for the area utilizing the City's assets to generate the greatest private investment, and maximize economic development opportunities in the Convention Center area (e.g. commercial, retail, and other mixed -use opportunities) project. Lastly, the Commission, at its March 9, 2011 meeting, ratified the Finance Committee's recommendation and authorized the City Manager to issue a competitive process to secure any consulting expertise required to assist with the project. During the May 20 -21, 2011, City Commission Retreat, information was provided to the Commission regarding the City's assets in the Convention Center area (Convention Center and Government Use District). The Commission agreed to look at broader development opportunities in this area beyond the Convention Center concept plan. The Commission expressed a desire to find ways to address the impact on traffic, mobility and to the surrounding neighborhoods. There was also a desire to maintain sensitivity for the historic district while maximizing green space. Based on the potential development opportunities (e.g. approximately 6.1 million s.f. of FAR), and the potential expansion project cost, it was determined that assistance from a consultant with experience and expertise in similar projects (including similar PPP) would be beneficial in developing the most effective strategy to solicit the right mixed -use development team for the project, with a goal of ensuring the highest level of private- sector participation, and the best proposed design for the expansion project to address our Convention Center needs. Consultant Services Re Expansion and Enhancement of MBCC Campus /District September 14, 2011 Page 5 of 8 ANALYSIS At its March 9, 2011 meeting, the Mayor and City Commission authorized the Administration to issue a Request for Proposals (RFP) for Consulting Services Relative to the Expansion and Enhancement of the Miami Beach Convention Center (MBCC) Campus /District. Request for Proposals (RFP) No. 33 -10/11 was issued on May 24, 2011, and notices sent to over 67 firms, including a list of 21 firms provided by the Tourism and Cultural Arts and Development Department, and more than 30 firms that are members of the International Economic Development Council. The result of the aforementioned outreach was the receipt of seven (7) proposals from the following firms: • C.H. Johnson Consulting, Inc.; • Convention Center Hotel Advisors, LLC; • Conventional Wisdom; • HR & A Advisors, Inc.; • HVS Convention, Sports, & Entertainment Facilities Consulting; • Jones Lang LaSalle Americas, Inc.; and • Strategic Advisory Group On June 17, 2011, the City Manager, via Letter to Commission (LTC) No. 152 -2011, appointed the following individuals to serve as Evaluation Committee members (the Committee): • Raul Aguila, Chief Deputy City Attorney; • Stuart Blumberg, Chairperson, Convention Center Advisory Board; • Jorge Gomez, Assistant City Manager; • Jay Levy, Resident, Palm View Neighborhood; • Jacqueline Menendez, Vice President, University Communications, University of Miami; • Miguel Southwell, Deputy Aviation Director, Business Development & Retention, Miami International Airport; and • Patricia Walker, Chief Financial Officer. On July 1, 2011, the Committee convened and was informed of the City's Cone of Silence requirements; Government in the Sunshine Law relative to two (2) or more members not having any discussion on the particulars of the project outside a duly noticed public meeting; and the project overview. Committee member Raul Aguila moved that all seven (7) firms should be invited for a presentation on July 5, 2011. Motion seconded by Miguel Southwell; Motion passed unanimously: 7 -0. On July 5, 2011, the Committee convened and listened to presentations and conducted question and answer sessions with the following three (3) firms: • C.H. Johnson Consulting; • Jones Lang LaSalle; and • Convention Center Hotel Advisors. Two (2) other firms (HR & A Advisors, and HVS) had been scheduled for teleconference interviews. However, the Committee agreed that it would be in the City's best interest to afford all seven (7) firms the opportunity for "in- person" presentations and interviews. Therefore, the remaining four (4) firms were scheduled to present on July 11, 2011. On July 11, 2011, the Committee convened and listened to presentations from the following firms: • Conventional Wisdom; • HVS Convention, Sports, & Entertainment Facilities Consulting; • Strategic Advisory Group; and • HR & A Advisors, Inc. Consultant Services Re Expansion and Enhancement of MBCC Campus /District September 14, 2011 Page 6 of 8 After listening to all the presentations and concluding with all the question and answer sessions, the Committee proceeded to rank and score all proposers based on the following weighted evaluation criteria: Evaluation Criteria Weight Project Methodology and Approach 20 points Experience and Qualifications of the Business Entity including Past Experience in Developing, Coordinating, Managing or Facilitating Comparable Projects including Public Private Partnerships (i.e.- Convention Centers, Convention Center Hotels and Mixed Use Projects) 40 points Experience and Qualifications of Management Team and Key Personnel 20 points Proposed Cost 20 points Total 100 points The Committee proceeded to score and rank the firms as follows: COMMITTEE RANKING Low Stuart Jorge Jacqueline Miguel Patricia Aggregate PROPOSERS Raul Aguila Blumberg Gomez Jay Levy Menendez Southwell Walker Score C.H. Johnson Consulting, Inc. 5 (65) 6 (80) 2 (75) 3 (91) 6 (80) 3 (84) 5 (91) 30 Convention Center Hotel Advisors, LLC 3 (92) 4 (86) 6 (59) 5 (73) 5 (85) 4 (75) 6(90) 33 Conventional Wisdom 6 (50) 1 (96) 5 (68) 4 (85) 4 (87) 1 (98) 7 (89) 28 HR & A Advisors, Inc. 4 (90) 3 (90) 3 (74) 1 (100) 2 (95) 7 (68) 2 (95) 22 HVS Convention, Sports, & Entertainment Consulting 7 (42) 7 (70) 1 (76) 2 (93) 1 (100) 2 (85) 1 (96) 21 Jones Lang LaSalle Americas, Inc. 2 (95) 5 (85) 7 (45) 7 (67) 7 (65) 5 (74) 3 (93) 36 Strategic Advisory Group. 1 (98) 2 (95) 4 (70) 6 (70) 3 (90) 6 (73) 4 (92) 26 Since none of the firms had a majority of the Committee's first place votes (i.e., 4 first place votes), the Committee agreed to recommend the top three (3) ranked firms based on the total low aggregate score. For example, a first place vote would be worth 1 point; a second place vote would be worth 2 points; etc. The lowest aggregate scores would determine the order of ranking. Based on the ranking and total low aggregate scores, Jacqueline Menendez moved to ranked HVS as the top- ranked; HR & A as the second - ranked; and Strategic Advisory Group as the third - ranked firm. Motion was seconded by Raul Aguila. Motion passed 7 -0. . Consultant Services Re Expansion and Enhancement of MBCC Campus /District September 14, 2011 Page 7 of 8 CITY MANAGER'S DUE DILLIGENCE After considering the review and recommendation of the Evaluation Committee, and in Tight of the importance and scope of the project, the City Manager exercised his due diligence by reviewing all the proposals and supporting documentation, and conducting question and answer sessions with the top three (3) firms' key personnel. The three firms provided a brief presentation regarding their firm's experience and capacity to provide the scope of services requested in the RFP, including — among other things — elaborating on their experience on PPP's; mixed -used development, as well as convention center /convention center hotel development; developing financing mechanisms, including for public entities; and experience in managing the identification of (and negotiating with) the project development team and their experience in mixed use redevelopment projects similar to what is being contemplated. Although all three (3) firms demonstrated excellent experience and qualifications, Strategic Advisory Group (SAG) was deemed the most qualified firm based on their experience with similar projects in Florida and throughout the Country in Convention Center and Convention Center Hotel Development, public private partnerships, capital structuring, tax - exempt asset financing, tax revenue projection and bond offering due diligence. SAG's has a broad range of experience in overall transaction management with private sector investment, identifying potential private partners, negotiating partnerships, executing transactions, monitoring private partner progress, and communicating the project's costs and benefits (economic impact, jobs, taxes, etc.). SAG was founded in 1998 by a senior management team executive of Ernst & Young's Consulting Practice and is comprised of professionals with experience ranging from 15 years to over 25 years. This team of experienced industry veterans have come together to help clients realize their potential while maximizing return on investment and enhancing their competitive advantage. Firm professionals held senior management positions with Ernst & Young, KPMG, Arthur Andersen, Trammell Crow, Opus South, Marriott International and Starwood Capital. Jeff Sachs and Tom Reifert will both be key personnel from SAG assigned to this project. Mr. Sachs is a founding partner of SAG with over 20 years of consultancy experience. Prior to forming SAG, Mr. Sachs held management and practice leadership positions with Ernst & Young and KPMG Peat Marwick. Mr. Sachs received his Master's and Bachelor's Degrees from The University of Iowa. Mr. Reifert's career includes over 18 years of consultancy experience and hotel management experience. Prior to joining SAG, Mr. Reifert held management positions for Marriott International. Mr. Reifert received his Bachelor's degree from Iowa State University. SAG has also provided advisory and development fee services for single asset and mixed -use projects representing nearly $10 billion in value and 30 million square feet. There partners have experience fully integrated retail and mixed -use development projects, with expertise in the total commercial development process, ranging from concept creation to closeout and asset management. They have worked as the master developer on a project or in conjunction with a property owner that is in need of specific expertise. Attached is an excerpt from SAG's bid package of their relevant experience and information on their team assigned to this project (Attachment A). At this juncture in the process, the City needs to secure outside expertise to assist in identifying and recommending potential private sector development partners for both the Convention Center (and ancillary needs) as well as potential mixed -use development, as well as assist in identifying public and private financing options for the development of the project. SAG will serve as an adjunct to City staff and advise on how to best maximize the City's assets, generate the greatest private investment, and maximize economic development opportunities in the Convention Center area, while ensuring that the proposed design for the Convention Center expansion meets the identified needs. COST INFORMATION SAG proposed the following range of professional fees that SAG believes would be representative of the Consultant Services Re Expansion and Enhancement of MBCC Campus /District September 14, 2011 Page 8 of 8 cost associated for the scope of services: Low High Phase I $ 30,000 $ 45,000 Phase II $ 55,000 $ 75,000 Phase II $ 70,000 $145,000 Given the variable nature of the scope of work, SAG found it difficult to provide a not -to- exceed fee proposal to complete the services. Travel and other out of pocket expenses will be billed at actual cost and will be in addition to professional fees. All fees and scope of work will now be negotiated to ensure the most cost effective fee structure for the City. CONCLUSION The Administration recommends that the Mayor and City Commission adopt the attached Resolution which accepts the recommendation of the City Manager pertaining to the ranking of proposals pursuant to Request for Proposals (RFP) No 33- 10/11, for Consulting Services Relative to the Expansion and Enhancement of the Miami Beach Convention Center (MBCC) Campus /District; authorize the Administration to enter into negotiations with the top- ranked proposer, Strategic Advisory Group, and should the Administration not be successful in negotiating an agreement with the top- ranked proposer; authorize negotiations with the second - ranked proposer, HVS Convention, Sports & Entertainment Facilities Consulting, and should the Administration not be successful in negotiating an agreement with the second - ranked proposer, authorize the Administration to negotiate with the third - ranked proposer HR & A Advisors, Inc.; and further authorize the Mayor and City Clerk to execute a professional services agreement. T: IAGENDAl201119- 14- 111ConsultantMBCC.docx ATTACHMENT A Florida Experience SAG managed the pre - development stage of the Dr. P. Phillips Performing Arts Center in Orlando, FL. The project includes a 2,800 -seat amplified theater, 1,800 -seat acoustic theater, and 300 -seat theater. The site is also planned to include a 200 -room hotel, two 400,000 square foot office V ._ ° buildings, and 500 residential condominium units. .s SAG assisted with all aspects of the development of the PAC, including project conception, finance plan development, obtaining funding J � undin approvals, p p p g g pp ' Orlando master planning, design review, operating plan development, team Performing assembly, developer solicitation, and project financing. In addition to Arts Center creating the overall finance plan, SAG led the effort to secure an $80 million line of credit to provide for upfront project costs that will be repaid by pledged donation collections over the construction period. SAG was the financial advisor to the Universal Boulevard Property Owners Association and Orange County regarding the public and private development of the area surrounding the 10 million square foot convention center, the second largest center in the U.S. Assets to be developed included 5,000 convention hotel rooms; 500,000 square feet of retail, #� restaurants and entertainment; 10,000 parking spaces; a 3 -mile elevated = transit system; and seven pedestrian bridges. Universal SAG focused on both public and private investments. From the public Boulevard perspective, SAG worked with existing and potential new investors to create District a Community Development District (CDD) that would be empowered to self assess to fund infrastructure and to implement an additional 1% sales tax to fund the transit system. From the private investment perspective, SAG worked with the client team to solicit private investment for the hotel and retail components. Investors were identified for Phase I of the retail (250,000 sf) and for the first 1,500 -room hotel. SAG team members began their relationship with the convention center in 1997 helping them prepare a 30 -year strategic plan. The effort resulted in the development of the $750 million Phase V expansion of the convention center. The center is the second largest in the country offering nearly 3 .. x million square feet of function space. SAG has maintained on ongoing relationship with the center assisting them with a number of projects Orlando /Orange including project management for Phase V, exhibitor service order internet County strategy, enterprise -wide technology infrastructure plan, security services Convention solutions, headquarter hotel study, senior management retreat facilitation, Center Convention and Visitors Bureau 3 -year strategic plan, and convention district master planning. 4, SAG assisted Hines and the Tampa Bay Devil Rays with financial modeling a-- q and analysis related to the redevelopment of the existing Tropicana Field Hines/Tampa site encompassing approximately 87acres. The mixed -use project included Bay Rays a 250 -room hotel, 200,000 square feet of office space, 230,000 square feet Tropicana Field of retail space, 800 condominium units, and 300 residential apartments. Site Redevelopment SAG team members prepared a feasibility study for renovating an existing community center in Miami Beach, FL into a first -class conference center. <.`� . The scope of services included interviews with facility staff, convention ' - bureau staff, and the Miami Beach Resort Hotel Association management; market analysis; meeting planner surveys; utilization estimates; cash flow Miami Beach projections; facility programming; conversion cost estimates; funding and Conference financing recommendations; and economic impact projections. Center SAG prepared a market and financial feasibility study for expanding the Prime F. Osborn Convention Center in Jacksonville, FL. SAG conducted a III market analysis that included a competitive positioning analysis and interviews and focus groups with meeting planners. The research indicated the center's location and the lack of a large convention hotel were detriments to its success and its potential to expand. The City was faced with the decision of building a new convention center in the heart of Prime F. Osborn downtown or subsidizing the development of a convention hotel in a Convention relatively undesirable location. The City has not taken any action to date on Center either expanding the convention center or subsidizing a convention hotel. SAG prepared a feasibility study for the proposed Osceola Convention Center located within Reunion Resort in Reunion, FL. The Reunion Resort is master planned for three golf courses; a water park; 6,000 single family T 1 V7 homes, condominium, town home, and hotel units; 474,000 square feet of retail space; and 140,000 square feet of office space. In the continuing master planning process, Ginn Development Company began assessing the ,' potential of developing the Osceola Convention Center as part of the resort. - '-' ,. The scope of SAG's work included primary market research, surveys of Osceola County meeting planners, comparable destinations research, facility programming, Convention utilization projections, operating cash flow projections, funding analysis, and Center economic impact analysis. The study concluded that there was substantial market support for a facility located on the resort, supported by 1,200 attached /adjacent condo -hotel units and a 200 -room limited service hotel. In 2003, Orange County was about to open its North /South Convention Center that offered an additional 1 million square feet of exhibition space. The 1998 Master Plan prepared by SAG noted that three to four 1,000+ - room convention hotels needed to be developed to support the expansion. Just prior to the convention center s opening, there were six hotel projects ." . totaling to 5 000 rooms that were in various stages of planning and �. s es o a n a d f�nancin 9 9 p 9 9 Multiple Hotels hindered by the recession. The County engaged SAG to study the Surrounding the marketplace, meet with each development team to understand their Orange County challenges, and make recommendations on how to accelerate the projects. Convention By 2008, the 1,500 -room Rosen Shingle Creek was opened, the new 1,400 - Center room Hilton was completed and the 750 -room expansion to the Peabody was completed. SAG team members prepared a market and financial feasibility study for a proposed headquarter hotel attached to the Tampa Convention Center. The study included market supply and demand projections projections of occupancy, average daily rates and operating cash flows and calculations of warranted private investment. The results indicated that a substantial 717 -room funding gap existed between the project development cost and the Marriott Hotel warranted private investment and that some form of public subsidy would be attached to the required. The remainder of the study focused on creative solutions to fund Tampa the gap. The hotel was eventually developed and is managed by Marriott. Convention Center SAG evaluated elements of a submitted development plan in order to make a recommendation regarding the amount in nature of the County's investment in the 500 -room convention hotel project. SAG evaluated development costs, the management contract, the branding strategy, room block commitments and financial structure. Based on SAG's conclusions 500 -Room Hotel and recommendations, the County made an offer to the developer, which adjacent to the the developer accepted. Ultimately, the developer failed to secure the Broward County equity required by its lender and the County terminated the development Convention agreement. Center SAG professionals served as advisor for the acquisition and financial I tor , structuring of this 1,500 -acre large -scale golf resort in Central Florida, -- including the potential for conversion and selling of vacation villas as timeshare or vacation condominium facilities. Grand Cypress Resort Orlando Commercial Real Estate Experience SAG managed the pre - development stage of the Dr. P. Phillips Performing Arts Center in Orlando, FL. The project includes a 2,800 -seat amplified theater, 1,800 -seat acoustic theater, and 300 -seat theater. The site is also planned to include a 200 -room hotel, two 400,000 sf office buildings, and 500 residential condominium units. SAG assisted with all aspects of the development of the PAC, including project conception, finance plan development, obtaining funding approvals, Dr. P. Phillips master planning, design review, operating plan development, team Performing assembly, developer solicitation, and project financing. In addition to Arts Center creating the overall finance plan, SAG led the effort to secure an $80 million line of credit to provide for upfront project costs that will be repaid by pledged donation collections over the construction period. SAG was the financial advisor to the Universal Boulevard Property Owners Association and Orange County regarding the public and private development of the area surrounding the 10 million square foot convention center, the second largest center in the U.S. Assets to be developed included 5,000 convention hotel rooms; 500,000 square feet of retail, SI, restaurants and entertainment; 10,000 parking spaces; a 3 -mile elevated transit system; and seven pedestrian bridges. S SAG focused on both ublic and private investments. From the p p public Orlando perspective, SAG worked with existing and potential new investors to create Universal a Community Development District (CDD) that would be empowered to self Boulevard assess to fund infrastructure and to implement an additional 1% sales tax to District fund the transit system. From the private investment perspective, SAG worked with the client team to solicit private investment for the hotel and retail components. Investors were identified for Phase I of the retail (250,000 sf) and for the first 1,500 -room hotel. SAG is currently the Development Manager to the Department of Economic Development and Commerce, the Puerto Rico Tourism Company, and the Puerto Rico Convention Center District Authority regarding the public and private development of the San Juan Waterfront area in Old San Juan, Puerto Rico. This 100 -acre waterfront parcel is slated for $1.5 billion of future investment, which will include multifamily, office, retail, hotels and civic uses. Assets to be developed include 3,500 residential units, 177,000 San Juan square feet of retail, 110,000 square foot fitness center, 320,000 square feet Waterfront of office, 660 hotel rooms, and 4,200 parking spaces. SAG prepared a feasibility study for the proposed Osceola Convention Center located within Reunion Resort in Reunion, FL. The Reunion Resort is master planned for three golf courses; a water park; 6,000 single family homes, condominium, town home, and hotel units; 474,000 square feet of retail space; and 140,000 square feet of office space. In the continuing master planning process, Ginn Development Company began assessing the = potential of developing the Osceola Convention Center as part of the resort. * t The scope of SAG 's work included primary market research, surveys of meeting planners, comparable destinations research, facility programming, Reunion Resort utilization projections, operating cash flow projections, funding analysis, and economic impact analysis. The study concluded that there was substantial market support for a facility located on the resort, supported by 1,200 attached /adjacent condo -hotel units and a 200 -room limited service hotel. { a SAG was an advisor to the Corporation charged with redeveloping the area surrounding Nationals Park in the District of Columbia. The redevelopment Anacostia includes one million square feet of residential, office, retail and hotel Waterfront development, along with significant infrastructure improvements. Corporation SAG assisted Forest City Washington with assessing the tax increment financing potential of a 150 -acre site that was previously a federal reserve into a waterfront- oriented mixed use development. The 15 -year master plan included 2,700 condominiums, 200 town homes, 900 apartments, 775,000 .4 . . 1 440‘ square feet of retail, 1.8 million square feet of office space, 600 hotel rooms "1 and 6,000 parking spaces. In total, the project encompassed 8.8 million square feet. Forest City Washington SAG assisted with programming, phasing, and all financial modeling Poplar Point including development cost estimates, financing, operating cash flow District projections, project capitalization, and tax increment financing potential. The tax increment was to support $250 million in infrastructure costs. SAG assisted Forest City Washington with financial modeling and analysis related to proposed residential and commercial development near Nationals Park. The mixed -use project included 475 residential units, 170,000 square - =' feet of retail space and 700 parking spaces. Forest City Washington Baseball District SAG assisted Forest City Washington with due diligence associated with the «. acquisition of a mixed -use development project in Woodbridge, VA. The - h .h 4� �' ` . due diligence assessed the development of 110,000 square feet of office Forest City space, 600,000 square feet of retail space and 3,000 parking spaces. The Washington analysis included due diligence on all aspect of the development including Potomac Town development costs, operating cash flows and capital structures. Center SAG managed a multi- faceted team that successfully assisted the District of Columbia with relocating the MLB -owned Montreal Expos to Washington, DC and developing a new ballpark. Our team addressed every issue associated with developing the ballpark ranging from development budget creation, finance plan development, parking finance plan development, t ballpark attendance projections, funding stream tax projections, ballpark tax impact projections, comparable ballpark finance structure data gathering, Nationals competitive market ballpark revenue due diligence, and assisted with lease Ballpark and ballpark development agreement negotiations. Nationals Park opened in March 2008. SAG assessed the tax increment financing potential of Grand River, a 6,500 acre tract of land in Leeds, AL, a Birmingham suburb. Grand River is a mixed -use, master - planned community which upon completion is to include: 6,000 single family homes; 1,500 multi - family homes; 1.2 million SF of retail; 1.0 million SF office /commercial; Bass Pro Shops Outdoor World; two elementary schools; Barber Motorsports Park & Museum; and a nature , - park. The project developer was United States Steel Real Estate and >. . ,:� Daniel Corporation. Grand River The tax increment related to Phase I of the project funded $35 million in infrastructure improvements focused on roads and utilities. Property taxes generated in the City of Leeds and Jefferson County and sales taxes generated in the City of Leeds supported the tax increment financing. SAG is helping the City of San Jose redevelop its cultural facilities district. 7- Our services have included formulating a development strategy, analyzing master plan site issues, developing a conceptual design, estimating development costs, developing an organizational and management plan and preparing a funding and financing plan. We are currently in the process San Jose of establishing a self- taxing Mello -Roos District to fund public Cultural District improvements. Real Estate Development Experience SAG is currently the Development Manager for the Franklin County Convention Facilities Authority for the 532 -room Hilton Columbus Downtown in Columbus, Ohio. Our services have included underwriter, architect, construction management and hotel manager /brand procurement, contract negotiations, finance plan development, design evaluation, development 532 -room Hotel budget review, legal structuring, numerous stake holder and City and adjacent to the County presentations, and a number of other tasks required in our role of Greater representing the FCCFA in the transaction. The hotel will be located Columbus adjacent to the Greater Columbus Convention Center. The hotel is currently Convention under construction and scheduled to open in late 2012. Center SAG provided pre - development management services for the development of the 1,203 -room Hilton Americas - Houston convention center headquarter hotel adjacent to the George R. Brown Convention Center in Houston, TX. SAG led a multi- faceted team assisting the City with creating the ' development and financing strategy, establishing a non - profit corporation to facilitate financing and operations, preparing the financial models, selecting the most appropriate project delivery method, writing RFQ /RFP's for other team members (architect, developer, operator) and basically playing the Hilton Americas quarterback role until the developer was hired. SAG's role continued as Hotel owner's representative throughout the construction process. The hotel opened in 2003 and is managed by Hilton. SAG provided pre - development project management services for the City of Charlotte for the development of The Westin Charlotte, a 700 -room convention hotel adjacent to the Charlotte Convention Center. The hotel was privately financed, with the City making the project financially feasibly i by building the hotel's meeting space and parking. The City also participated in conduit financing. SAG led a multi- faceted team assisting the City with evaluating developer proposals, assessing private developer µ incentive requests, outlining public- private partnership options, contract negotiations, creating an industry leading hotel room block agreement, and Westin Charlotte managing the City Council communication process. Over a period of eight months, SAG took the project from concept to reality, significantly reducing the public sector involvement. The hotel opened in 2003. SAG structured the public - private partnership for the development of the 400 -room Raleigh Marriott City Center Hotel adjacent to the new Raleigh Convention Center. The hotel opened in 2008 and was financed privately, �..f with the City providing an upfront grant and a below- market parking arrangement to make the project financially feasible. Our role involved soliciting potential private developer partners, interviewing and short listing candidates, assessing the public versus private finance approaches, negotiating with the top two candidates, negotiating detailed term sheets Raleigh Marriott and contracts with the selected partner, negotiating a room block City Center agreement, and various other activities to create a successful public - private partnership. SAG team members assisted with creating and implementing the strategy for developing Centennial Olympic Park to be used during the Olympics as a gathering place, and as a state park after the Olympics. We worked with the State on the due diligence efforts that entailed the coordination of appraisal teams, environmental teams, finance specialists, and cost estimators, and was responsible for preparing the briefing to get the project approved by the Governor and State. s ` Once the park was approved, we coordinated the redevelopment of the 100 - acres surrounding Centennial Olympic Park through a public - private partnership for Central Atlanta Progress, the City of Atlanta and the Centennial p , 9 Y business community. The 18 -month initiative included hosting Park Y g an Urban Area Land Institute panel, coordinating the architecture master planning team, Redevelopment fund raising, assembling landowners, soliciting developers, working with financial institutions, and establishing an ongoing organization to see the project through to completion. Ten years later, the area is now home to an Embassy Suites hotel, new Phillips Arena, residential condominiums, World of Coca -Cola museum, and the new Georgia Aquarium — the world's largest saltwater aquarium. SAG managed the renovation and expansion of the San Jose Convention Center, representing the facility manager, convention and visitor's bureau, and hotel community. The existing center offers 142,000 square feet of exhibit space and 50,000 square feet of ballroom and meeting space. The convention center had not undergone any material renovation since its opening in the 1980s. Back of house services such as the central plant, roof and life safety were in dire need of replacement. Client areas were dated and space configurations limited the booking potential of the facility. San Jose SAG began its role by researching the market and creating a customer - McEnery focused renovation and expansion program. Services continued with Convention formulating a development strategy, analyzing master plan site issues, Center developing a conceptual design, estimating development costs, developing Renovation & an organizational and management plan, and preparing a funding and Expansion financing plan. Following the creation of the strategies, SAG continued its management role, representing the client group in project design, development and financing. Public- Private Partnership Experience SAG was the financial advisor to the Universal Boulevard Property Owners Association and Orange County regarding the public and private development of the area surrounding the 10 million square foot convention center, the second largest center in the U.S. Assets to be developed included 5,000 convention hotel rooms; 500,000 square feet of retail, restaurants and entertainment; 10,000 parking spaces; a 3 -mile elevated 4 transit system; and seven pedestrian bridges. g focused on both public and private investments. From the public Universal perspective, SAG worked with existing and potential new investors to create Boulevard a Community Development District (CDD) that would be empowered to self assess to fund infrastructure and to implement ° o ement an additional add tional 1 /sales District p o tax to fund the transit system. From the private investment perspective, SAG worked with the client team to solicit private investment for the hotel and retail components. Investors were identified for Phase I of the retail (250,000 sf) and for the first 1,500 -room hotel. SAG managed the pre - development stage of the Dr. P. Phillips Performing Arts Center in Orlando, FL. The project includes a 2,800 -seat amplified theater, 1,800 -seat acoustic theater, and 300 -seat theater. The site is also planned to include a 200 -room hotel, two 400,000 square foot office buildings, and 500 residential condominium units. SAG assisted with all aspects of the development of the PAC, including project conception, finance plan development, obtaining funding approvals, Orlando master planning, design review, operating plan development, team Performing assembly, developer solicitation, and project financing. In addition to Arts Center creating the overall finance plan, SAG led the effort to secure an $80 million line of credit to provide for upfront project costs that will be repaid by pledged donation collections over the construction period. 144 SAG prepared a feasibility study and structured a public - private private partnership for the development of the Richardson Renaissance Hotel and Conference Center in the Galatyn Park area. The multifaceted partnership Richardson entailed a privately financed hotel, a city land donation, public conduit Renaissance financing of the conference center (public debt paid by hotel operating cash Hotel & flows), and a 20 -year nominal lease of parking spaces. The project was Conference developed by J.Q. Hammons Hotels and opened in 2001. Center SAG represented the City of Norfolk, the Norfolk Redevelopment and Housing Authority, and the Norfolk Convention and Visitors Bureau in their renegotiation of the Norfolk Waterside Convention Center management contract as part of the sale of the hotel between private parties. The convention center and 405 -room Marriott was originally developed as a single asset under a public - private partnership with the private sector investing in the hotel and the public sector investing in the convention center. The hotel management company managed both the hotel and convention center. SAG's advisory services encompassed a variety of va related agreements, including the Operating Agreement, Catering Agreement, Hotel Room Block Agreement, and other transaction related Norfolk documents, and addresses issues such as general terms and conditions, Waterside allocation of profits /deficits, capital reserve funding, operational control, Convention room block parameters, service standards, insurance, budget process, Center financial reporting, termination, non - compete provisions and others. The original management contract required the City to fund operating shortfalls and a reserve fund for capital replacements. SAG was able to renegotiate the management contract with the new hotel management company limiting the City's exposure to capital replacement funding only. The private sector assumed responsibility for all operating shortfalls. Convention Center Experience Akron Convention Center Meydenbauer Center Alabama Gulf Coast Convention Center Miami Beach Conference Center Albany Convention Center Miami Beach Convention Center Albert B. Sabin Convention Center Montgomery Conference Center Alpharetta Convention Center Myriad Convention Center Alton Conference Center Myrtle Beach Convention Center Amarillo Civic Center Navy Pier Asheville Civic Center Norfolk Convention Center Augusta Conference Center North Charleston Convention Center Aurora Conference Center Northwest Georgia Trade & Convention Baltimore Convention Center Center Banks County Conference Center Orlando Downtown Convention Center Birmingham Conference Center Orlando/Orange County Convention Center g 9 Y Burlington Convention Center Osceola County Convention Center at Carteret County Convention Center Reunion Resort Charlotte Convention Center Overland Park Convention Center Classic Center, The Palm Beach County Convention Center Cobb Galleria Centre Palmetto Expo Center COBO Conference & Exhibition Center Portman Conference Center Colorado Springs Convention Center Prime F. Osborn Convention Center Columbia Metropolitan Convention Center Queen Sirikit Convention Center (Bangkok) Columbus Iron Works Convention & Trade Raleigh Convention /Civic Center Center Richardson Galatyn Park Conference Crown Coliseum Complex (Rose Agri -Expo Center Center) Richmond Center for Conventions and Expoland Malaysia Exhibitions Frank Mayborn Convention Center Riyadh Trade Mart and Convention Center Garland Conference Center San Jose McEnery Convention Center Gary Convention Center San Juan Convention Center Greenville /Pitt County Convention Center Sarasota Convention Center Indiana Convention Center Schaumburg Convention Center Irving Convention Center at Las Colinas Schenectady Convention Center Jackson Township Conference Center Seaside Convention Center Jacob K. Javits Convention Center Shreveport Convention Center John B. Hynes Veterans Memorial St. Louis Cervantes Convention Convention Center Center /Stadium Johnston County Conference Center Toronto Exhibition Place Trademart and Kalahari Resort & Convention Center Exhibit Hall Lancaster Convention Center Trenton Conference Center Liberty Conference Center Tuscaloosa Convention Center M.C. Benton, Jr. Convention and Civic Vancouver Convention & Exhibition Centre Center Washington Convention Center (District of Manhattan Conference Center Columbia) McCormick Place Wausau Convention Center Wildwood Convention Center Williamsburg Convention Center Wilmington Convention Center ATTACHMENT B In summary, the RFP, via Addendum No. 1, informed all firms of the following phasing of the scope of services: PHASE 1 — TASKS TO BE COMPLETED WITHIN THE FIRST THREE (3) MONTHS 1. Serve as the City's primary advisor /consultant on how to best maximize the City's assets, generate the greatest private investment, and maximize economic development opportunities in the Convention Center area. 2. Conceptualize and recommend ideas and options to the City to address the identified needs of the Convention Center (expansion /enhancement; potential adjacent/on -site hotel), as well as to identify potential redevelopment options for the area surrounding the Convention Center campus to support the Convention Center project. These options may include commercial, retail, and other opportunities intended to maximize private investment and development, as well as creating potential public /private partnership opportunities. 3. Assist City in developing a critical path and timeframe. Deliverable: Consultant shall complete and submit a plan of action that covers all tasks listed in Phase 1 above, subject to the City's review and approval. PHASE 2 — TASKS TO BE COMPLETED WITHIN THE FIRST SIX (6) MONTHS 1. Identify and recommend potential public and private financing options for the development of the project(s), including but not limited to Public /Private Partnerships (PPP), to minimize the level of public financial participation in the project(s) and to attain the most distinctive, highest - quality and marketable project(s) possible. Consultant will be expected to provide transactional review, including sources of debt and equity, and are strongly urged to consider creative development and financing structures that will accomplish these ends. Any recommended financial plan developed by the consultant must detail the assumptions used in the recommended development. The assumptions should include operating projections that are supported by market research, a financing plan and project schedule. The consultant shall also recommend development approaches and construction management and operation methodologies for the project(s). 2. Identify companies and teams interested. Deliverable: Consultant shall complete all tasks listed in Phase 2 above, subject to the City's review and approval. PHASE 3 — TASKS TO BE COMPLETED WITHIN THE FIRST NINE (9) TO TWELVE (12) MONTHS 1. Assist the City in the development of any competitive process or best determined process to attract key participants to the project(s). 2. Assist in the evaluation and selection of potential partner(s). 3. Participate in negotiating terms with any selected project team(s). 4. Facilitate and provide the professional and technical expertise to lead key discussions regarding the project, including, but not limited to community outreach, coordination of key participants, financing and contract negotiations (e.g. identify constituent groups for project discussion; conduct constituent group discussion and solicit feedback /input). Deliverable: Consultant shall complete all tasks listed in Phase 3 above, subject to the City's review and approval. ON -GOING TASKS THROUGHOUT THE ENGAGEMENT 1. Provide periodic reports as requested 2. Assist in any other duties as requested by the City. It is expected that the term of the agreement with the selected consultant shall commence upon execution of the agreement by all parties, and shall terminate when all services outlined in the scope of services of the RFP, and deliverables as negotiated and outlined in the executed professional services agreement is accepted by the City.