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HomeMy WebLinkAbout[06a] Hotel Study RFP . CITY OF ST. JOS�PH w�-w.ci ryo(stjoseph.com Administrator Date: August 21, 2013 Judy Weyrens Memo To: Members of the EDA Mayor City Administrator Weyrens Rick Schultz Memo From: Cynthia Smith-Strack-MDG, Inc. Councilors RE: Hospitality Feasibility Report RFP Solicitation Steve Frank Bob Loso Renee Symanietz gackground: Dale wick At the previous meeting the EDA requested MDG prepare and distribute a request for proposals EDA (RFP)to selected hospitality research firms. An RFP has been prepared and distributed to three firms in the Twin Cities: Hospitality Consulting Services, LHR Hospitality Management, and Doug Danielson Leines Hotel Advisors. A copy of the RFP solicitation is attached. Please note the RFP includes Steve Frank a disclaimer allowing the City/EDA to accept or reject any/all proposals. Larry Hosch Gary Osberg The RFP reflects a submission deadline of September 27th. It also provides for the formation of Dale wiok a selection subcommittee or review by complete EDA. In addition the RFP provides for the potential to interview candidates or not to interview candidates. In addition I contacted Jim McComb from McComb Group LTD regarding scope of information gathered in the market research study. McComb noted hospitality and lodging were not parameters included in the study. Action: Input on the next step—consideration of proposals—is kindly requested. Specifically whether or not the full EDA wishes to review the responses, appoint a sub-committee, discuss at a later date, or proceed differently. �� THIS PAGE INTENTIONALLY LEFT BLANK �v . + ST.JOSEPH EDA PO BOX 668 ST.JOSEPH, MINNESOTA 56374 Phone (320)363-7201 Fax(320)363-0342 Request For Proposais: Hotel Feasibility Report St. Joseph Minnesota DUE DATE/TIME: September 27, 2013 — 4:30 p.m. All proposals shall be organized in the format specified and submitted electronically in portable document format (PDF)to:cstrackCa�municiqaldevelo�ment4rouo com Receipt of electronic submittals shall be confirmed via email. If you do not receive an email confirming receipt of the RFP,you must contact Cynthia at the number/address which fOIIOWS. SUBMITTALS SHALL NOT EXCEED TEN(10�PAGES IN LENGTH. In addition to the required electronic submittal, supplemental printed copies may be submitted to the City of St. Joseph by the above stated due date and time. POINT OF RECEIPT: Electronic Submittal(REQUIRED)• cstrack a(�municipaldevelo�mentqrou�com Mailin4 Address: Cynthia Smith Strack, EDA Director City of St.Joseph P.O. Box 668 St. Joseph, Minnesota 56374-0668 Phvsical Address• Cynthia Smith Strack, EDA Director City of St. Joseph 25 College Avenue North St. Joseph, Minnesota 56374-0668 Requests for information regarding this RFP shall be directed in writing to Cynthia Smith Strack at cstrack anmunicipaldevelo�mentaroun com or by phone at(612)232-7399. Written requests are preferred. Page 1 of 18 a � Request For Proposals: Hotel Feasibility Report St. Joseph Minnesota OVERVIEW The City of St. Joseph Economic Development Authority (EDA) wishes to advance the development of a hotel facility near the full access intersection of Interstate 94 and CSAH 2 in St.Joseph.The specific site is represented in Appendix A attached hereto. The goal of the St. Joseph(EDA)is to determine if a hotel is feasible by the private sector at the proposed site. If a hotel is not fully feasible by the private sector, it is the City's desire to determine what financial gap might exist that could be filled by public incentives. The EDA intends to provide the resulting feasibility report to potential hotel developers, management companies, and brands who may be interested in participating in a hotel project. The successful bidder shall produce a hotel feasibility report which: 1. Assesses historic, present, and future demand and supply of hotel accommodation; 2. Considers the demand for other hotel facilities, such as meeting areas, restaurants, bars, and recreational facilities and recommends the optimal development strategy; 3. Reviews and suggests the appropriate brand strategy for the subject site; 4. Includes an Internal Rate of Retum calculation and supporting written discussion which concludes whether or not a project is financially feasible at the proposed location(with and/or without public incentive); 5. Includes an analysis of what financial gap may exist that could be filled by public incentives;and, 6. Estimates operating income and expenses for ten years following the opening of the hotel if the study concludes a hotel is financially feasible at the proposed location. If at any point the successful bidder determines a hotel is not feasible at the proposed site, even with public incentives,the bidder shall immediately notify the St.Joseph EDA and halt further analysis. The successful bidder must proceed in a cost effective and efficient manner as the budget for this project is$10,000. For background information a community profile is attached to this RFP as Appendix B. Page 2 of 18 �O� PROPOSAL REQUIREMENTS One electronic response must be submitted to St.Joseph EDA Director Cynthia Smith Strack no laterthan 4:30 p.m. on Friday, September 27, 2013.Any response, modification, or amendment received after the due date and time is late. No late response, modification, or amendment will be accepted. Supplemental printed copies of the response may be submitted to the City of St.Joseph EDA. Proposals are limited to ten(10)pages in length. The response should be clear, concise,and simple. Proposals must include the eight(8)elements as identified in the"Organization of RFP"section which follows. Proposals must include the release as contained in Appendix C and executed by an authorized representative of the responding firm. SELECTION OF PROPOSER All proposals received will be reviewed by the City of St.Joseph EDA and/or a sub-committee thereof. Responses will be evaluated based on the following rating: 25%Qualifications 45% Suitability of Approach and Process 3�%C� 100%Total Discussions may be conducted with Proposers determined by the City and/or EDA to be reasonably likely to be selected for the project. In addition, one or more Proposers may be invited to interview. However, the City and/or EDA may accept a Proposal without discussion or interview. SELECTION TIMELINE Proposals are due on: Friday, September 27�h by 4:30 p.m. The St.Joseph EDA and/or a sub-committee thereof will review the proposals. Proposers may be interviewed at the October 23, 2013 EDA meeting. On October 23,2013 the EDA will make a recommendation to the City Council to(a)approve a selected Proposer or (b)reject any/all proposals.Alternately,the EDA may request more information or postpone action on a Proposal or Proposals. If a recommendation is forwarded to the City Council, the Council would take action on the recommendation at its next Regular Meeting. Following contract execution the hotel feasibility study is anticipated to begin by January of 2014. Page 3 of 18 a3 ORGANIZATION OF RFP The following eight(8)elements must be included in the RFP response in this order. For convenience in review, please organize your proposal in a manner which includes the corresponding reference number, letter, and/or Roman numeral. 1. A brief description of the presenting firm or department. 2. Names, contact numbers, and email addresses of professionals who will be involved in the project. 3. History of the presenting organization including number of similar projects completed in the previous five(5) years and simple aggregate percentage of your firms' total receivables similar projects have comprised over the previous five(5)years. 4. Abbreviated qualifications and experience of all involved in the project. 5. A detailed description of the approach or process that your firm will undertake to specifically accomplish the following in a concise, clear,and simple manner: A. Assess historic, present, and future demand and supply of hotel accommodations. ' i. The hotel feasibility study must evaluate the local markeUtrade area and conclude whether the proposed site is suitable for hotel development. ii. The hotel feasibility study shall examine the local competitive market with regard to existing and proposed demand for hotel accommodation. iii. The hotel feasibility study shall determine which market segments are likely to experience growth. iv. The hotel feasibility study shall provide an opinion on whether there is likely to be favorable or unfavorable changes in the local hotel market. B. Discuss the demand for other hotel facilities, such as meeting areas, restaurants, bars, and recreational facilities and recommend the optimal development strategy. i. The feasibility study shall recommend appropriate facilities, highlighting the number of guestrooms that the market can sustain with an indication of the number of food and beverage outlets, meeting space, recreational facilities, and parking facilities that should be developed. ii. While the feasibility study may highlight existing facilities in comparable hotels within the local market, the feasibiliry study shall comment upon the facilities that are not available and are required by the current market and what may be required in the future. iii. The feasibility study shall address the competitive positioning of the subject hotel in relation to the market. C. Review and suggest the appropriate brand strategy for the subject site. D. Produce an Internal Rate of Return calculation and supporting written discussion which concludes whether or not a project is financially feasible at the proposed location with and/or without public incentive. If public incentive needed to fill a gap, identification of the extent of gap likely. Page 4 of 18 � y E. Estimate operating income and expenses for ten years following the opening of the hotel if the study concludes a hotel is financially feasible at the proposed location. 6. An itemized table illustrating proposed fee(s)and a timeline corresponding to individual elements as required by#5 above(approach/process). In addition the proposal shall include a statement specifying a "not to exceed"cap on the project, including all associated expenses. 7. A summary of three(3)similar projects conducted for municipalities within the previous five(5)years. 8. Brief references(contact name, phone number, and email address)from municipal clients for whom your organization has completed similar projects. PROJECT DELI VERABLES The successful bidder shall issue one (1) completed study. The successful bidder shall provide two (2) printed copies of the completed study,one non-bound reproducible printed copy of the study,and one electronic copy of the study. MISCELLANEO US INFORMA TION Without liability on the part of the St.Joseph EDA and/or the City of St.Joseph,the City/EDA reserves the right to(a) accept or reject any or all proposals in any order of combination, (b) accept or reject portions of the proposal, (c) make modifications to the work after submission of proposals, and/or(d)waive any formalities in proposals, based solely on the Ciry/EDA's analysis of the proposals received including the cost thereof if it is deemed in the best interest of the City of St. Joseph/St. Joseph EDA to do so. The City of St.Joseph and the St.Joseph EDA shall not pay any costs incurred by any proposing company for time and/or materials used to prepare the response or make the presentation(s)related to this RFP. The successful bidder shall be required to enter into a written service contract with the St. Joseph EDA. Any submitted proposals become the property of the City of St.Joseph EDA. Page 5 of 18 ZS \.s. . ._ . .. t� . _.. . ... 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"' ��;= -��"�� ;:;� ��. .1 ''�`.�-.�:.:..:= 25 Coliege Avenue North ' , � w, ,.� ,�R , °'�"� °�. � � � ��� � , �� wg� ���„� � � ' � ��; St. Joseph MN 56374 ":_.':� "� '�'� � l .'.fi°`�;� '� .%'''' 320 363-7201 . �""�� C 80 C ' � � ` �' r ' ; ( y , �. � � �. � _ . � - �..:.. - :..�. .,..,�..... ....�� �- �.., _ ___ ' �°'��"' y•� ° � " www.cityofstjoseph.com :�� r��!`� .�: ,�;..,.._ Financial and Technical � ��:_ � � Assistance Available ��-� _ . r � --..._....-..� x-� �.:. , , t, � _ ,:tr 41�_ �i� • �* r: " � ' ' �j •' � i � ` ', � ' '� � Population 6,581 �, ; �, � � � z,;�� ��*, � .,.�. � �'�' � Labor Force 4,038 _ , ��,. �..._,.�- .; . � , ., . _ a� :�� �":'r; . '�r i Job Growth Rate 24.8496 w' ,� .� v. �� �, �.� ,t :�....w, UnemploymeM Rate 5.8096 _ � �.... , - Median Age 23.57 �. . ��� ,:,. ,. __ � ' '„/ ,� . +'� � . � � Bachelors Degree or Higher 32.3946 `�. "�= --— -- —- �-- - Nigh School Degree or Higher 91.74 t' White Collar Workers 57° 4 �` —_ - _ Blue Collar Workers 42% � ��; :'s_ �,�m - � Universities in Community 1 " ���w ' '""' -- _ "'�...w�;��� Universities within SO Miles 5 .., - `,,, ��.. .. �, � Household Ezpenditures(Average� $ 49,873 Househo�Income�Median� $ 55,940 �� ��� � � � Commute Travel Time�Minutesj i6 tirpwts in Community none Airports within SO Miles 1 Distance to Interstate(Miles� In Community Distance to RAail(Miles� In Community latitude 4S56S255153 longitude •9431105 Demographic Indicators MFI near$60K.Average age 23.57 years. Two-thirds have post-secondary education experience. Unemployment at 5.8%. Largest occupational classes for residents: administrative/support, education, executive/management, production, � i ' ' � and sales. Residents contribute nea�ly$3.5M to tax deductible causes annually. Residents spend nearly$2.5M annually on gift giving. 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CJ 40 N N co �: �n N p N i V � . � ` : m � ` o � � +o � a � c r ' « � � E � ',r° ofO,o c t0 t •- • � V �Ri � � r°- x° �i � � x° F°- � a` � a°1co � F°- m i Q =° H � �ii� 3� APPENDIX"C" CERTIFICATION The undersigned Proposer certifies that it has not: 1. Provided an illegal gift or payoff to a Ciry officer or employee or former City officer or employee or his or her relative or business entity; 2. Retained any person to solicit or secure this contract upon an agreement or understanding for commission, percentage, brokerage, or contingent fee, other than bona fide employees or bona fide commercial selling agencies for the purpose of securing business; or 3. Knowingly influenced and hereby promised that it will not knowingly influence any City o�cer or an employee or former City officer or employee to break any applicable ethical standard or rules. The undersigned Proposer certifies that: 1. The Proposal is made in good faith. 2. The Proposal is made in conformity with the specifications and qualifications contained in the Request. Name of Proposer: Name of Authorized Representative: Signature of Authorized Representative: Address: City/State/Zip: Telephone Number: Fax Number: Web Site Address: Email Address: Date Signed: Page 18 of 18 3$