4. RFP PROCESS - EXPOSITION HALL FACILITY
PROCESSUS DE DP - ESPACE D’EXPOSITION
COMMITTEE RECOMMENDATIONS AS AMENDED
That Council:
1. Approve the Request for Proposal (RFP) process for the design, construction, operation, and financing of an Exposition Hall facility in Ottawa as outlined in this report;
2. Approve the outline specifications for the Exposition Hall facility as set out in Document 1 attached to this report;
3. Approve the evaluation criteria for the RFP for the Exposition Hall facility as outlined in Document 2 attached to this report;
4. Approve the evaluation matrix for the RFP for the Exposition Hall facility as outlined in Document 3 attached to this report; and
5. Approve the composition of the evaluation team for the RFP for the Exposition Hall facility as outlined in this report.
6. Direct staff to seek upper tier funding for the development of future Trade Show Space in Ottawa.
RecommandationS MODIFIÉES DU Comité
Que le Conseil :
1. Approuve le processus de Demande de proposition (DP) en vue du dessin, de la construction, de l’exploitation et du financement d’un espace d’exposition à Ottawa, comme il est exposé dans le présent rapport;
2. Approuve le devis préliminaire de l’espace d’exposition, comme il est exposé dans le Document 1 joint au présent rapport;
3. Approuve les critères d’évaluation de la DP en vue de l’espace d’exposition, comme il est exposé dans le Document 2 joint au présent rapport;
4. Approuve la matrice d’évaluation de la DP en vue de l’espace d’exposition, comme il est exposé dans le Document 3 joint au présent rapport;
5. Approuve la composition de l’équipe d’évaluation de la DP en vue de l’espace d’exposition, comme il est exposé dans le présent rapport.
6. Demande au personnel de trouver du financement auprès des instances supérieures pour la construction d’un espace d’exposition.
Documentation
1. City Manager’s report dated 1 February 2010 (ACS2010-CMR-REP-0009).
2. Extract of Draft Minutes, 2 February 2010 to be distributed prior to Council.
Corporate Services and Economic Development Committee
Comité des services organisationnels et du développement économique
and Council / et au Conseil
1 February 2010 / le 1 février 2010
Submitted by/Soumis par: Kent Kirkpatrick, City Manager / Directeur municipal
Contact Person/Personne ressource : Gordon MacNair, Director, Real Estate Partnerships and Development Office/Directeur, Partenariats et Développement en immobilier
(613) 580-2424 x 21217, Gordon.MacNair@Ottawa.ca
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Ref N°: ACS2010-CMR-REP-0009 |
SUBJECT: |
RFP PROCESS - EXPOSITION HALL FACILITY |
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OBJET : |
PROCESSUS DE DP - ESPACE D’EXPOSITION |
REPORT RECOMMENDATIONS
That the Corporate Services and Economic Development Committee recommend that Council:
1. Approve the Request for Proposal (RFP) process for the design, construction, operation, and financing of an Exposition Hall facility in Ottawa as outlined in this report;
2. Approve the outline specifications for the Exposition Hall facility as set out in Document 1 attached to this report;
3. Approve the evaluation criteria for the RFP for the Exposition Hall facility as outlined in Document 2 attached to this report;
4. Approve the evaluation matrix for the RFP for the Exposition Hall facility as outlined in Document 3 attached to this report; and
5. Approve the composition of the evaluation team for the RFP for the Exposition Hall facility as outlined in this report.
RECOMMANDATIONS DU RAPPORT
Que le Comité des services organisationnels et du développement économique recommande au Conseil :
1. D’approuver le processus de Demande de proposition (DP) en vue du dessin, de la construction, de l’exploitation et du financement d’un espace d’exposition à Ottawa, comme il est exposé dans le présent rapport;
2. D’approuver le devis préliminaire de l’espace d’exposition, comme il est exposé dans le Document 1 joint au présent rapport;
3. D’approuver les critères d’évaluation de la DP en vue de l’espace d’exposition, comme il est exposé dans le Document 2 joint au présent rapport;
4. D’approuver la matrice d’évaluation de la DP en vue de l’espace d’exposition, comme il est exposé dans le Document 3 joint au présent rapport;
5. D’approuver la composition de l’équipe d’évaluation de la DP en vue de l’espace d’exposition, comme il est exposé dans le présent rapport.
At a special meeting of City Council held on 12, 13, and 16 November 2009, Council considered a report from the City Manager, dated 12 November 2009 (Report Ref. # ACS2009-CMR-OCM-0009), regarding Implementation of the Lansdowne Partnership Plan (LPP) that had been tabled at the Council meeting of 2 September 2009.
Recommendation 2 a) iv) of the LPP Implementation Report) was put forward as follows:
“That Shenkman Corporation be directed to submit a formal proposal to the City for the construction and operation of a Trade and Consumer Show facility at the Ottawa Airport prior to 15 February 2010, with the understanding that the City, following receipt of the proposal, will immediately issue a public Request for Expressions of Interest to determine whether there is the potential for competing qualified proposals.”
The information provided, in November 2009, to Council in support of the above recommendation is more fully detailed in Document 8 attached to this report.
On 16 November 2009, in considering the above information and staff Recommendation 2 a) iv) with respect to a procurement strategy for a new Trade and Consumer Show facility, Council approved Motion No. 77/21 as follows:
“That staff be directed to commence the Request for Expressions of Interest to the Proposal process for the construction, operation and finance of a Trade and Consumer Show facility in Ottawa as soon as possible and that any proposal from the Shenkman Corporation be received through the RFEOI process and that a Request for Proposals process be immediately commenced upon the successful completion of the RFEOI process, to be completed prior to Council’s June 2010 consideration; and that Recommendation 2 a) iv) of the LPP Implementation Report be modified to reflect this revision; and that Council direct staff to commission a study to assess the following:
1) Social value to community residents of a new trade and consumer show facility;
2) Indirect economic benefits and value to local business to promote and grow their business;
3) Direct economic benefits to the community and broader region from visitor spending by (new money to the community, jobs/employment);
4) Development spin-off potential (e.g. hotels and other facilities, improved airport services);
5) Review municipal investments practices in Trade and Consumer Show facilities;
6) Other Benefits.
On 16 November 2009, prior to approving motion 77/21, Council approved Motion 77/14 as follows:
“That City Council delegate the authority to a joint Transit and Transportation Committee to approve the Terms of Reference for the transportation studies including an associated demand management plan for the LPP and for the additional Terms of Reference for the Traffic Impact Study for the relocation of the trade show space to the airport as referenced in Recommendation 2 a) ii)”.
This report responds to the Motions 77/21 & 77/14 with respect to the provision of a new Exposition Hall facility to accommodate trade and consumer shows and other community and charitable events.
1. Lansdowne Park - Exposition Facilities
In a document titled “The Exposition Industry at Lansdowne Park - An Overview -23 June 2009”, the Ottawa Association of Exposition Managers (OAEM) has indicated to the City that the OAEM considers that “the effective exhibition space at Lansdowne Park is approximately the 96,395 sq. ft.” being the space provided by the Coliseum, the Aberdeen Pavilion and the Civic Centre’s Salons. The OAEM document also pointed out that “one of the great shortcomings of the existing facilities at Lansdowne Park is their physical separation from one another (also referred to as a lack of contiguous space).”
In their document, the OAEM recommended that the “enhancement” of exhibit space facilities at Lansdowne Park be considered as being “the addition of a minimum 50,000 sq. ft. of contiguous exhibit space in any planned redevelopment of Lansdowne Park” and they also recommended that the City “require and maintain at least 2,000 parking spots under any redevelopment agreement for Lansdowne Park.”
The June 2009 OAEM document, while initiated to support an OAEM position that the current exposition facilities at Lansdowne Park be maintained and enhanced, also recommended that “the potential reduction or elimination of any Consumer or Trade Show and community event space at Lansdowne Park may only be concurrent with the establishment of new city owned facilities elsewhere.”
In recent discussions with staff, the OAEM has emphasized that it is the lack of contiguous exposition hall space that has significantly limited the ability of the trade and consumer show industry to grow in Ottawa and that a single large facility, that can be subdivided, would provide the necessary “engine” to drive this growth. They are supportive of the City’s current initiative to develop a facility with 150,000 sq. ft. of exhibit space.
Staff has reviewed the trade and consumer show activity at Lansdowne Park for 2009 and has determined, as set out in Document 4 attached to this report, that a new facility must provide space that accommodates the space requirements of the largest shows currently held at Lansdowne (146,000 sq. ft.).
This is not inconsistent with the OAEM recommendation to add approximately 50,000 sq. ft. of exhibit space as a necessary “enhancement” to the 96,400 sq. ft. of “effective exhibit space” that already exists at Lansdowne Park.
2. New Exposition Facility Requirements
2.1 Facility Specifications
The outline specifications for a new Exposition Hall facility, as set out in Document 1 attached to this report, were largely based on input from the OAEM provided during the consultation process over the summer of 2009 between Shenkman Corporation and the OAEM.
Simply described, the OAEM would like any new Exposition Hall facility to be functional and cost effective with the facility being essentially an industrial warehouse type building with upgraded plumbing/washroom systems, a warm and cool air (zoned) heating and ventilating system and upgraded communication/electrical systems suitable for trade and consumer show use.
City staff has recently confirmed with the OAEM that their main requirements are:
· 150,000 sq. ft main exhibit hall with an approximately 24 ft. ceiling height and “room dividers” to provide at least 4 inter-connecting halls (50,000/30,000/30,000/40,000 sq. ft. in size) for smaller events;
· Exhibit Hall areas should be column free or have minimum columns with spacing related to a 30 ft. x 30 ft. grid;
· Large drive-in door for each of the inter-connected hall areas;
· Minimum of 2 loading docks for each of the inter-connected hall areas;
· Show office space for each of the inter-connected hall areas;
· Meeting rooms related to each of the inter-connected hall areas;
· Ample ticketing, coat check, crush areas, washroom facilities, facility and supplier offices and storage area to support the exhibit hall spaces and possibly a commercial kitchen facility; and
· Parking capacity similar to that provided at Lansdowne Park.
The outline specifications for a new Exposition Hall facility, as set out in Document 1 attached to this report, therefore, provides for an Exposition Hall facility with a gross building area of 220,000 sq. ft., including a 150,000 sq. ft. exhibit hall and associated support facilities of 70,000 sq. ft. which appear to meet the OAEM’s requirements. In fact, a single purpose built 220,000 sq. ft. facility with an exhibit space area of 150,000 sq. ft. will, because of the more efficient use of exhibit space; provide significant opportunity for existing shows to grow and to attract new shows including more trade show business.
Zoning By-law 2008-250 permits the trade show facility under the term "place of assembly" and the parking requirement for a place of assembly is applied the same way to Areas B, C and D of Schedule 1 of the Zoning By-law at the rate of 10 per 100m2 of gross floor area of assembly area. Therefore, a 220,000 sq. ft. Exposition Hall facility would need to have approximately 2,000 parking spaces to meet the Zoning By-law requirement which is compatible with the OAEM’s June 2009 recommendation.
2.2 Facility Location & Site Requirements
A 220,000 sq. ft. facility with approximately 2,000 parking spaces will require a site of at least 25 acres and more likely 30 plus acres in order to account for the configuration of the specific site, landscaped areas and expansion potential and the site has to be currently zoned to allow a “place of assembly” in order to meet the overall timeframes for completing a new Exposition Hall facility.
As a particular site might have a zoning designation that permits a “place of assembly” only in conjunction with another use, it is important that the City receive a preliminary planning approvals analysis report as part of any proposal submission.
Since there are a limited number of 25 to 30 acres parcel of land within the City’s limits that are zoned for a place of assembly and are either currently serviced or can be serviced in a timely and cost effective manner, it would appear that the City should not necessarily restrict the geographical location of the site but rather assess each site based on its relative distance to Lansdowne Park and transportation system access.
The site will need to be located adjacent to a non-residential collector or arterial road and have convenient access to the City’s transit system and the arterial road network and a 400 series highway. In addition to a relatively central location that provides for good vehicular access, the OAEM has also indicated that convenient access to public transit is also required.
Motion 77/14 as set out in the Background Section of this report was put forward on the basis of the City receiving a proposal from Shenkman Corporation by 15 February 2010 and the proposed site being located in the northwest corner of the airport property in the vicinity of Hunt Club Road. It is understood that the Airport Authority has more recently identified, and is negotiating the terms of a ground lease, for an approximately 13.7 ha. (33 acres) portion of the airport property, located between the Airport Parkway and Uplands Drive in the vicinity of Alert Road, as the site for an Exposition Hall facility should Shenkman Corporation be the successful proponent in the City’s proposed RFP process.
As Motion 77/21 directs staff to move forward with a two stage RFP process for a new Exposition Hall facility and that Shenkman’s Corporation proposal be received as part of this process, the preferred proposal might not provide for a facility to be located on an airport site in the vicinity of Hunt Club Road. As result, it is considered appropriate to have the Traffic Impact Study provided as part of the site plan application materials as is the norm.
However, as transportation access is a significant consideration, it is important that the City receive a preliminary transportation analysis and impact assessment report as part of any proposal submission to allow the City not only an opportunity to assess the potential impacts when evaluating proposals but also to identify specific issues which will need to be addressed more formally in the Traffic Impact Study associated with site plan requirements.
The site will also need to have existing and adequate services/utilities at the limits of the site, or in the alternative, be located within reasonable proximity of required services so that any service extensions can be constructed in a timely and cost effective manner to meet the overall time frames for completing a new Exposition Hall facility. Therefore, the City will also need to receive a preliminary servicing assessment report as part of any proposal submission.
2.3 Timing
The majority of trade and consumer shows at Lansdowne Park have traditionally occurred during the months of March to June (Spring Show Season) and then September to November (Fall Show Season). The OAEM has recently indicated a concern that the redevelopment of Lansdowne Park might interrupt the high seasons for trade and consumer shows and are particularly concerned about the Spring 2011 Season since show events are now starting to occur as early as January with the first large show in February.
The LPP contemplates construction commencing in March 2011 but that arrangements can be made to accommodate all the current trade and consumer shows for the entire 201l season. However, as construction activities under the LPP would intensify in the latter parts of 2011 and into 2012, it will be more difficult to accommodate trade and consumer shows in a convenient manner for all.
As a result, staff created an aggressive schedule for completing a new 220,000 sq. ft. Exposition Hall facility working backwards from a target date of 1 September 2011 for the opening of the facility as follows:
Ø Facility opens – 1 September 2011,
Ø Construction – 1 December 2010 to 31 August 2011,
Ø Detailed design and tender – 30 June to 30 November 2010,
Ø Site Plan process – 30 June to 30 September 2010,
Ø Agreements with proponent - 10 June to 30 August 2010,
Ø Report to Council – 9 June 2010,
Ø Report to CSEDC – 1 June 2010,
Ø Prepare report re: recommended proposal – 7 May to 21 May 2010,
Ø RFP evaluation process – 23 April to 7 May 2010,
Ø Proposals received – 23 April 2010,
Ø RFP issued – 19 February 2010,
Ø RFP process report to Council – 10 February 2010,
Ø RFP process report to CSEDC – 2 February 2010.
The above schedule requires the proponent to take some additional risk to work concurrently on completing agreements with the City, acquiring site plan approval and undertaking and completing the detailed design/tender package. It also requires the City to act earlier on moving forward with the actual RFP process.
In any event, the facility must be ready for occupancy at the latest by 1 March 2012 in order to accommodate most of the events for the 2012 Spring Show Season as the temporary arrangements with OSEG will need to terminate after the 2011 Fall Show Season.
2.4 Financing
As part of its due diligence process in working towards the preparation of an RFP for a 220,000 sq. ft. Exposition Hall Facility, staff has identified that the current $2 Million in revenue achieved at Lansdowne Park in 2009, although based on market rents, is not close to being sufficient to cover the cost of constructing, operating and managing a new 220,000 sq. ft. Exposition Hall facility and eventually providing a modest rate of return on investment. The basis of this assessment is more fully described in Document 5 attached to this report.
Until a private sector proponent can grow trade and consumer show and other exposition hall related business and achieve a stabilized income that supports both operating costs, debt, and a modest rate of return on the investment, the City will most likely need to provide some financial support to the project.
In order to assist a proponent in financing the project, the City could consider making a one-time financial contribution or it could provide annual financial operating grants and/or exempt the Exhibition Hall facility from property taxes depending on the nature of the proposal. However, under Section 106 of the Municipal Act, 2001 the City cannot provide bonuses to third parties unless otherwise authorized elsewhere in the Act or under the Regulations of the Act.
Based on the City’s need to relocate the current public Exposition Hall facilities from Lansdowne Park under the LPP, the importance of this type of public assembly facility to the social and economic fabric of the City, as described in Document 7 of this report, and the potential difficulty in having a new public Exposition Hall facility financed without City support, the City could consider proposals from the private sector that are based on proceeding with a new public Exposition Hall facility under the provisions of a Municipal Capital Facility Agreement.
The conditions under which a Municipal Capital Facility Agreement might be utilized are detailed further in Document 5 attached to this report.
3. Social and Economic Benefits Study
As directed under Motion 77/21, the Economic Development Branch has initiated a study which is being undertaken by HLT Advisory Inc. to assess the following:
1) Social value to community residents of a new trade and consumer show facility;
2) Indirect economic benefits and value to local business to promote and grow their business;
3) Direct economic benefits to the community and broader region from visitor spending by (new money to the community, jobs/employment);
4) Development spin-off potential (e.g. hotels and other facilities, improved airport services);
5) Review municipal investments practices in Trade and Consumer Show facilities;
6) Other Benefits.
This study regarding the social and economic benefits of a new Public Exposition Hall facility with a 150,000 sq. ft. exhibit hall will be completed prior to consideration of proposals for this facility by the Corporate Services and Economic Development and Council in June 2010.
4. Proposed Request for Proposal (RFP) Process
Motion 77/21, approved by Council on 16 November 2009, directed a two stage RFP process with the first stage being a Request for Expression of Interest (RFEOI) and that a proposal from Shenkman Corporation be received through this process.
The Real Estate Partnerships and Development Office (REPDO) was subsequently tasked to move the RFP process forward and the services of PPI Consulting Limited (PPI) have been retained to assist REPDO in defining and carrying out the RFP process for a new Exposition Hall facility.
Given that Shenkman Corporation has been working on a proposal for a new Exposition Hall facility and has already indicated it will be submitting a proposal, REPDO and PPI discussed concerns about the time constraints to utilize a two stage RFP process and that proceeding with a RFEOI would likely benefit Shenkman Corporation by identifying the degree, and nature, of any competition and a one step RFP process might be more competitive.
4.1 RFP Methodology
As the proposed new Exposition Hall facility described in Section 2.1 of this report is not overly complex in design, maintenance or operation and as the City would prefer to minimize its financial contribution to the project subject to a proposal meeting its needs, the following methodology for the RFP process is proposed:
1) Review of compliance with Mandatory Criteria (Process and Technical);
2) Review of proposals according to Rated Criteria;
3) Subject to passing a minimum threshold score of 75% on the Rated Criteria, a review of Financial Proposals;
4) Evaluation of financial proformas based on financial contribution requirements from City and associated net present value cost to the City;
5) Due diligence on proposal with least cost implications to the City; and
6) Award of the project.
The Due Diligence stage (#5) will allow the City to review the proposed business model, zoning, partnership agreements, governance structures, etc. of the proponent having the proposal with the least cost implications to the City, potentially being the proposal with lowest net present value cost to the City. If any elements are identified that could potentially raise the risk exposure to the City, the City would reserve the right to go to the proponent with the next lowest cost to the City.
4.2 RFP Process
As a result, staff recommends that the City proceed directly with a RFP on the basis that:
1) The timing of the process will be based on the milestone schedule set out in Section 2.3 of this report;
2) The outline specifications for the Exposition Hall facility be set out as in Document 1 of this report;
3) The criteria for evaluating proposals including mandatory process/ technical criteria and proponent team/technical criteria subject to point rating be as set out in Document 2 of this report;
4) The technical criteria be evaluated in accordance with the evaluation matrix set out in Document 3; and
5) The financial proposals in the form of a financial proforma, are to be provided in a separate and sealed envelope, and are to identify the type and extent of financial assistance required from the City, for the project including the need, if any, to enter into a Municipal Capital Facility Agreement with the City.
4.3 Evaluation Team
Evaluation of proposals received under the RFP process described in this report will require a team having expertise in real estate development, economic development, development approvals, exposition hall operations management, and finance.
As a result, it is proposed that the evaluation committee for this RFP process consist of:
· Manager, Realty Initiatives and Development;
· Manager, Economic Development;
· Manager, Development Review (Urban);
· Program Manager, Property Management Lansdowne; and
· Manager, Treasury.
There are no environmental implications associated with the recommendations in this report.
Staff has consulted with Ottawa Association of Exposition Managers (OAEM) and at a meeting, held on 28 January 2010, the President, Vice-President, Treasurer, and Director of Facilities indicated that the approach outlined by staff was on the “right track” and a new Exposition Hall Facility provided in accordance with the outline specifications as set out in this report will meet the requirements of the OAEM.
They also emphasized that it is the lack of contiguous exposition hall space that has significantly limited the ability of the trade and consumer show industry to grow in Ottawa and that a single large facility, that can be subdivided as described in this report, would provide the necessary “engine” to drive this growth. In this regard, they believe that this growth will result in pressures to expand the facility in the near future.
The OAEM representatives indicated they were also concerned about a two step RFP process and are supportive of a one step process as recommended in this report.
In order to assist a proponent in financing the project, the City could consider making a one-time financial contribution or it could provide annual financial operating grants and/or exempt the Exhibition Hall facility from property taxes depending on the nature of the proposal. However, under Section 106 of the Municipal Act, 2001 the City cannot provide bonuses to third parties unless otherwise authorized elsewhere in the Act or under the Regulations of the Act.
There are no additional financial implications associated with the recommendations in this report.
Document 2: Proposed RFP Evaluation Criteria
Document 3: Proposed RFP Evaluation Matrix
Document 4: Trade & Consumer Shows - Lansdowne 2009
Document 5: Financing and Municipal Capital Facility Information
Document 6: Fairness Commissioner
Document 7: Tourism and Cultural Importance - Exposition Facilities
Document 8: Background Information
Subject to Committee and Council approval, staff will implement the recommendations as outlined in the report.
DOCUMENT 1
OUTLINE SPECIFCATIONS FOR EXPOSTION HALL FACILITY
Overall Facility Requirements
Main Exhibit Hall
Support Facilities
· An approximately 70,000 sq. ft. building annex to the Main Exhibit Hall to provide ticketing/coat check/ crush areas, washroom facilities, facility/supplier offices and storage areas, mechanical and electrical rooms and possibly a commercial kitchen facility to support the exhibit hall spaces;
· Lobby areas to have upgraded finishes with floors and other surfaces that are easy to clean and maintain;
· Show office space for each of the inter-connected hall areas;
· Mezzanine level for office spaces, meeting rooms and employee washrooms may be provided; and
PROPOSED RFP EVALUATION CRITERIA
· To enhance the public Exposition Hall facilities in Ottawa by replacing the three existing facilities at Lansdowne Park with a single public Exposition Hall facility at another location in the City;
· To ensure the new public Exposition Hall facility meets the use requirements of the trade and consumer show industry, as well as community and charitable organizations, by having an exhibit hall space with a minimum area of 150,000 sq. ft. together with adequate support facilities in a building annex of approximately 70,000 sq. ft., convenient parking and vehicular access, and public transit availability;
· To enter into an agreement with a private sector partner with the necessary capabilities to design, finance, and construct the new public Exposition Hall facility and to operate and maintain it for a period of at least 30 years;
· To minimize the City’s financial contribution in providing a new public Exposition Hall facility; and
· To have the new public Exposition Hall facility open for use by 1 September 2011, if possible, and no later than 1 March 2012.
Submission/Evaluation Requirements
1) An “Overview of the Proposal” that provides a brief summary of the proposal in relation to the proponent’s understanding of the City’s stated objectives;
2) A “Project Partnering and Management Plan” that includes as follows:
a) A Description of the “Proponent’s Project Team” including information that provides as follows:
i) Identification of the Legal Entity that will be entering into the agreement(s) with the City;
ii) Identification of the companies involved in the Project Team under each Functional Area (e.g. Prime/Financial Lead, Design, Construction, and Maintenance/Operations);
iii) Demonstration that the Prime/Financial Lead has undertaken and financed at least (3) projects that are similar in size, type, and complexity, including at least one Exposition Hall facility;
iv) Demonstration that the Design and Construction members of the Project Team have undertaken at least (3) projects that are similar in size, type, and complexity which indicate experience in meeting project timeframes and budgets and working with the public sector (client reference for each project to be included);
v) Demonstration that the Maintenance and Operations members of the Project Team have appropriate experience in facility operations and maintenance and trade and consumer show operational experience by listing and describing projects of similar in size, type, and complexity which have been maintained and operated by the proponent (client reference for each project to be included);
vi) Description of the Core Positions and Duties under each Functional Area and the experience of the individuals, who will be carrying out these duties, on projects of similar scope and complexity (detailed resumes to be included);
vii) Description of the lines of communication and authority in the provision of services by the Project Team; and
viii) Description of how the Project Team will interact with the City.
b) A Project Schedule that meets the timeline requirements of the City and illustrates all milestones, and demonstrates and accounts appropriately for the different activities needed to implement the facility (e.g. required approvals, consultations, design, construction, commissioning, start of operations, etc.);
c) A Business Plan for Trade and Consumer Show Operations that satisfies City requirements and provides appropriate mitigation strategies for potential risks (i.e. well researched; detailed information provided; demonstrates excellent knowledge of trade and consumer show operations; clearly details the services and shows to be offered; credible commitments for shows) and includes a Plan for Service Quality that satisfies City requirements;
d) An Operations and Maintenance Plan for the facility that satisfies City requirements (i.e. all operating and maintenance costs are accounted for and estimates are appropriate, and life cycle event costs identified and provision made for adequate capital reserves);
e) A Financial Plan/Proforma, to be submitted in a separate and sealed envelope, that details all projected revenues and expenditures (both capital and operating) on a cash flow basis over the 30 year term of the proposed agreement with the City and indicates the type and amount of any financial contribution that would be required from the City (one time capital contribution, or ongoing operational grant, or exemption from property taxes, or any combination thereof); and
f) An Agreement Framework that sets out the Proponent’s basis and requirements for, and the main conditions of, necessary Project Agreements with the City including a Municipal Capital Facility Agreement subject to the requirements of Section 110 of the Municipal Act, 2001 and Regulation 603/06 under the Act.
3. A “ Site & Conceptual Building Plan” for the Exposition Hall that includes information that provides as follows:
a) The location and size of, and legal description for, the proposed site;
b) Evidence of ownership or irrevocable control of the site (Registered Owner on title; or Purchaser fully executed and valid Purchase Agreement or Option to Purchase Agreement; or Lessee under fully executed Ground Lease Agreement or Agreement to Lease;
c) A Conceptual Site Plan that describes and shows the location of the proposed Exhibition Hall building and any other buildings on the site, parking and loading facilities, vehicular access, and landscaped and other open spaces;
d) A preliminary Planning Approvals Analysis that:
i) Demonstrates the basis on which a “place of assembly” on the proposed site is a permitted use in the Proponent’s proposed development of the site under the provisions of the City’s Zoning By-law 2008-250;
ii) Sets out the provisions of the City’s Zoning By-law 2008-250 that apply to the proposed site, including parking provisions, and demonstrates the basis on which the Conceptual Site Plan submitted by the Proponent conforms to the provisions of By-law;
iii) Describes the planning approval requirements for the project and sets out the proposed work plan and timelines to obtain the necessary approvals;
iv) Provides a Preliminary Transportation Analysis and Impact Assessment that takes into account:
· The location and convenience of the site relative to a non-residential collector road, arterial road, a 400 series Highway, and public transit routes;
· The performance/capacity of the existing transportation system;
· The impact of neighboring development needs;
· The extent and impact of traffic from the proposed development on the site;
· The availability, convenience and projected use of public transit for the proposed site;
· An assessment of traffic circulation for all modes of travel and associated site design and operational requirements including the requirements to accommodate large service vehicles; and
· Identification of mitigation measures to effectively and practically deal with any identified transportation concerns.
v) Provides a Preliminary Servicing Analysis to demonstrate that there are existing and adequate municipal services/utilities at the limits of the site, or in the alternative, these services/utilities are located within reasonable proximity of the proposed site so that any service extensions can be constructed in a timely and cost effective manner to meet the overall time frames for completing a new Exposition Hall facility.
e) A Conceptual Building Plan/Program that provides information as follows:
i) A description of the proposed building components and associated specifications in relation to the outline specifications set out in Document 1 of this report;
ii) A conceptual building plan for the proposed Exposition Hall facility showing the size and functional layout, including column grid if any, and of the building and its components and which plan provides for an exhibit hall with an area of no less than 150,000 sq. ft; and
iii) A drawing showing the elevation of the main facade of the building and of any other facades visible from a public right-of-way together with a description of the proposed materials to be used on the façade.
PROPOSED RFP EVALUATION MATRIX
1) Proposal documents must be submitted by closing date and time defined in RFP document;
2) Proposal documents must be submitted to RFP Purchasing Officer at correct location;
3) Proposal documents must include a signed Letter of Offer that is irrevocable for a defined period of time as specified in the RFP document;
4) The Proponent must provide a declaration of no conflict of interest; and
5) The Proponent must provide a declaration of no collusion.
B. Mandatory Criteria - Technical
Proposals that have met the Mandatory Process Criteria will then be evaluated to determine if they have met the mandatory technical requirements which include as follows:
1) Evidence of ownership or irrevocable control of the site (Registered Owner on title; or Purchaser fully executed and valid Purchase Agreement or Option to Purchase Agreement; or Lessee under fully executed Ground Lease Agreement or Agreement to Lease;
2) Evidence that the proposed site is currently zoned such that a “place of assembly” on the proposed site is a permitted use in the Proponent’s proposed development of the site under the provisions of the City’s Zoning By-law 2008-250;
3) The proposed Exposition Hall facility includes an exhibit hall space with a minimum of 150,000 sq. ft.; and
4) The Project Schedule provides for the new Exposition Hall facility to be open for use no later than 1 March 2012.
Evaluation Criteria subject to Point Rating (100 points)
Proposals that have met the Mandatory Technical Criteria will then be point rated against evaluation criteria (maximum score 100 points) based on the submission/evaluation requirements as follows:
1. “Overview of the Proposal” - Understanding City’s Objectives - 20 points
2. “Project Partnering and Management Plan” - 50 points
Includes rating of:
a) Proponent’s Project Team
· Legal Entity
· Project Team Composition
· Capability and experience of Prime/Financial Lead Company
· Capability and experience of Design and Construction Team
· Capability and experience of Maintenance and Operations Team
· Core Positions, Duties and Capabilities of individuals on Project Team
· Lines of communication and authority in the Project
· Proposed Interaction between Project Team and the City
b) Project Schedule
c) Business Plan for Trade and Consumer Show Operations
d) Operations and Maintenance Plan
f) ProposedAgreement Framework
3. “ Site & Conceptual Building Plan” - 30 points
Includes rating of:
a) Site size and location
b) Conceptual Site Plan
c) Preliminary Planning Approvals Analysis
d) Preliminary Transportation Analysis and Impact Assessment
e) Preliminary Servicing Analysis
f) Conceptual Building Plan/Program
D. Financial Evaluation
Proposals that have attained a rating score of at least 75 out of the maximum 100 points available will then be analyzed and evaluated on the basis of the related Financial Plans/Proformas and the proposal that has the least cost implications to the City as determined by City staff, potentially being the proposal with lowest net present value cost to the City, will be forwarded to Council for consideration.
DOCUMENT 4
TRADE & CONSUMER SHOWS - LANSDOWNE 2009
Lansdowne Park currently provides a total of 96,400 sq. ft. of “exposition hall” type space, for trade & consumer show, community and charitable events. This space is provided in three separate facilities being: the Aberdeen Pavilion (38,600 sq. ft.), the Coliseum (27,600 sq. ft.) and the Civic Centre Salons (30,200 sq. ft.).
With respect to trade and consumer show use, the Civic Centre’s rink area (17,000 sq. ft.) is sometimes available as is its upper concourse of the arena (33,000 sq. ft.) although this latter space is not really considered to be good space for exhibit uses. As a result, trade and consumer show events, which require up to approximately 146,000 sq. ft. of exhibit space, can be accommodated but only when the Civic Centre arena is not scheduled to be used for other purposes.
A review of trade consumer show activity in 2009 indicates that there were 38 trade and consumer show (5 trades, 33 consumers) events held at Lansdowne Park, with a total attendance of 218,085.
The range of space utilized for the 2009 events can be categorized as follows:
|
Space Requirements (square feet) |
Number of Shows |
|
146,000 |
4 |
|
80,000 - 96,000 |
3 |
|
50,000 - 70,000 |
4 |
|
30,000 - 40,000 |
20 |
|
20,000 - 30,000 |
7 |
The 38 show events in 2009 resulted in total revenue to the City of approximately $2 Million of which $1.2 Million was rental revenue and the other $800 Thousand was associated with parking/security/concession revenue. A recent survey of other Exposition Facilities indicates that the rental rates for shows at Lansdowne Park are representative of market rents in the industry.
The four (4) shows, which used 146,000 sq. ft. of space, were responsible for generating approximately 33 percent of the 2009 total revenue while almost 50 percent of the total revenue can be attributed to the seven (7) shows that used space over 80,000 sq. ft. It is, therefore, important that any new Exposition Hall facility accommodate the range of trade and consumer shows currently taking place at Lansdowne Park.
The above information is, therefore, not inconsistent with the OAEM recommendation to add approximately 50,000 sq. ft. of exhibit space as a necessary “enhancement” to the 96,400 sq. ft. of “effective exhibit space” that already exists at Lansdowne Park.
DOCUMENT 5
FINANCING AND MUNICIPAL CAPITAL FACILITY INFORMATION
As part of its due diligence process in working towards the preparation of an RFP for a 220,000 sq. ft. Exposition Hall Facility, staff obtained independent advice regarding a preliminary estimated cost to build and carry out the site works, including parking facilities, based on the outline specifications set out in Document 1 attached to this report. It was determined that this cost, exclusive of land costs and other project soft costs, would, at a minimum, be in the range of $35 Million or about $160/sq. ft. of building. Therefore, it appears, with land costs and other soft costs included, that the total project costs may be $40 Million or more.
If operated solely as a private sector facility, it is estimated that the annual expenses for operating and managing a 220,000 sq. ft. trade show facility will be in the range of $10-$12 / sq. ft. including property taxes or approximately in the range of $2.2 Million to $2.6 Million annually.
The current $2 Million in revenue achieved at Lansdowne Park, although based on market rents, is not close to being sufficient to cover the cost of constructing, operating and managing a new 220,000 sq. ft. Exposition Hall facility and eventually providing a modest rate of return on investment. Until a private sector proponent can grow trade and consumer show and other exposition hall related business and achieve a stabilized income that supports both operating costs, debt and a modest rate of return on the investment, the City will most likely need to provide some financial support to the project.
The revenue from an Exposition Hall facility does not result from longer term lease agreements with tenants having significant financial covenants but rather from attracting new shows and other events, and also maintaining existing shows and growing these existing shows on an annual basis. As a result, a successful proponent will need to be highly skilled and experienced in developing, managing and operating a 220,000 sq. ft. Exhibition Hall facility in order to be in a position to attract new events and be confident in making revenue projections for an amount of trade and consumer show business and other events that is far greater than that currently in place at Lansdowne Park.
In addition, a successful proponent will need to have the financial ability to make a significant equity contribution to the project in order to obtain appropriate financing which contribution may be in the range of 30 percent to 35 percent of the total project costs. Even with such a large equity contribution, financing for the remaining project costs may be difficult without financial support from the City.
In order to assist a proponent in financing the project, the City could consider making a one time financial contribution or it could provide annual financial operating grants and/or exempt the Exhibition Hall facility from property taxes depending on the nature of the proposal. However, under Section 106 of the Municipal Act, 2001, the City cannot provide bonuses to third parties unless otherwise authorized elsewhere in the Act or under the Regulations of the Act.
Section 110 of the Municipal Act, 2001 permits municipalities to enter into Municipal Capital Facility Agreements (MCFA’s) and provide assistance, property tax and development charge exemptions subject to the provisions of Regulation 603/06.
Sections 2 & 3 of Regulation 603/06 set out the classes of Municipal Capital Facility uses that are eligible for assistance, and exemptions from property tax and development charges and the only class under which the trade show facility would qualify would be "Municipal facilities for cultural, recreational or tourist activities."
The Regulation goes on to provide at Sections 6 that assistance and exemptions from tax and development charges can only be provided to this "recreational-cultural- tourist" class of facility in the following circumstances:
(a) The municipality or another municipality or a public sector entity owns, or agrees to purchase, or will own on reversion of the property, the municipal capital facilities, including the land on which they are situate; and
(b) The council has declared by resolution that the municipal capital facilities are "for the purposes of the municipality and are for public use."
Public sector entities are defined as “The Crown”, Local Board, University in Ontario, College in Ontario.
Based on the City’s need to relocate the current public Exposition Hall facilities from Lansdowne Park under the LPP, the importance of this type of public assembly facility to the social and economic fabric of the City, as described in Document 7 of this report, and the potential difficulty in having a new public Exposition Hall facility financed without City support, the City could consider proposals from the private sector that are based on proceeding with a new public Exposition Hall facility under the provisions of a MCFA depending on the nature of the proposal.
Proponents who wish to enter into a MCFA for this project should be aware of the property reversion requirements applying to this class of Municipal Capital Facility. In the case of a proposal where the facility is to be provided on leased land, a MCFA will only be possible if the owner of the property is “The Crown”, or a Local Board, or a University, or a College.
DOCUMENT 6
FAIRNESS COMMISSIONER
In order to ensure that all activities associated with the RFP process are carried out with fairness, openness, transparency, and compliance, REPDO has retained the services of Peter Woods, Public Sector Company Limited to act as the Fairness Commissioner for this project.
The Fairness Commissioner’s activities include:
· Review and provide any necessary fairness related comment on all pertinent documentation including draft and final RFP solicitation documents, with a particular focus on the evaluation criteria and contractor selection method;
· Monitor all key activities including the planning and development of the bid solicitation documentation, communications and meetings with suppliers, the evaluation of the bidders’ responses, the resolution of fairness issues and bidder debriefings;
· Observe, and participate in, the training of the evaluators;
· Identify all potential fairness issues including perceived conflicts of interest as they become evident, so that project officials can deal with them promptly;
· Prepare regular status reports, e.g. monthly and milestone as required;
· Prepare a report on the RFP, proposal evaluation process and selection of preferred proponent;
· Observe the debriefings of unsuccessful proponents; and
· Prepare a Final Report attesting as to the fairness of the procurement process.
DOCUMENT 7
TOURISM AND CULTURAL IMPORTANCE - EXPOSITION FACILITIES
The City of Ottawa has historically provided public Exposition Hall facilities at Lansdowne Park for trade & consumer shows, community, and charitable events and these events have benefitted by the facilities being exempt from property taxes.
The significance of these facilities from a tourism and cultural standpoint is illustrated below.
In a report titled “Economic Impacts of Lansdowne Park – 10 September 2007” prepared by the Corporate Research Group in cooperation with the Conference Board of Canada and based on data from 2006, information is provided that indicates that, in 2006 , approximately 158,000 people attended trade and consumer show events at Lansdowne Park and approximately 21,000 of these (13.3%) were estimated to be out of town visitors that spent approximately $2.1 Million in other parts of Ottawa during their stay.
In 2009, the overall attendance for trade and consumer shows attendance was 218,085 which, on a pro rata basis relative to 2006 data, indicates that approximately 29,000 out of town visitors, who spent approximately $2.9 Million, were attracted to Ottawa as a result of these shows.
In addition, the following excerpts are taken from Public Assembly Facility Management: Principles and Practices by Peter J. Graham, Ed.D., published by the International Association of Assembly Managers (IAAM), 2004.
"Public assembly facilities such as arenas, stadiums, convention centres and theatres evolved out of the need by social communities to build permanent structures for public assembly - for political and commercial activities, religion, sports, spectacles, artistic expression and for commercial and educational assemblies."
"More and more these modern "cathedrals" define a city's image and provide the necessary means to compete for the highly desirable big business of sports and entertainment, conventions and tourism."
"Public assembly facilities by their very nature meet a number of important needs that justify the investment of public funds. Simplistically, they provide both social and economic stimulus for a community. The social stimulus is normally a "quality of life" benefit provided to the community, while the economic stimulus is realized through the new spending and resulting "multiplier" of economic activity."
"Each of these public assembly facilities is a partner in the larger industries of:
"And though there may exist a dramatic variation in size, function, and mission for each venue, their primary purpose remains constant: providing service to the public."
DOCUMENT 8
At a special meeting of City Council held on 12, 13, and 16 November 2009, Council considered a report from the City Manager, dated 12 November 2009 (Report Ref. # ACS2009-CMR-OCM-0009), regarding the Lansdowne Partnership Plan (LPP) Implementation that had been tabled at the Council meeting of 2 September 2009.
This staff report responded to Council direction provided on 22 April 2009 to negotiate a partnership agreement with the Ottawa Sports and Entertainment Group (OSEG) for the redevelopment and revitalization of Lansdowne Park, and to subsequent directions to staff from Council on 2 September 2009, from the Corporate Services and Economic Development Committee on 6 October 2009 and from the Joint Transportation Committee and Transit Committee on 8 October 2009.
The report recommended that Council approve the Lansdowne Partnership Plan (LPP) tabled at the Council meeting of 2 September 2009 and that staff be directed to negotiate a comprehensive project agreement framework with the Ottawa Sports and Entertainment Group (OSEG) for subsequent consideration by Council, subject to a number of conditions.
One of the conditions of the LPP Implementation Report, set out as Recommendation 2 a) iv), was as follows:
“That Shenkman Corporation be directed to submit a formal proposal to the City for the construction and operation of a Trade and Consumer Show facility at the Ottawa Airport prior to 15 February 2010, with the understanding that the City, following receipt of the proposal, will immediately issue a public Request for Expressions of Interest to determine whether there is the potential for competing qualified proposals.”
In support of the above recommendation the staff report in November 2009 noted that the Council motion with respect to the LPP, approved on 22 April 2009, called for the enhancement of the facilities available to support Trade and Consumer Show use and that staff had, therefore, investigated the potential to provide additional, better quality, and contiguous Trade and Consumer Show space at Lansdowne Park than currently provided by the total 113,400 sq. ft. space in the existing three separate facilities being: the Aberdeen Pavilion (38,600 sq. ft.), the Coliseum (27,600 sq. ft.) and the Civic Centre (47,200 sq. ft. - 30,200 sq. ft. in the Salons and 17,000 sq. ft. in the arena).
In order to meet the minimum requirements of the Trade and Consumer Show Industry in Ottawa over the long term and avoid significant conflicts with respect to achieving the other goals set out by Council for Lansdowne including the greening of the front lawn, the November 2009 staff report concluded that enhanced facilities would be best provided by a new purpose built trade and consumer show facility at a location outside of the central area of the City.
In that regard, the report noted that purpose built trade and consumer show facilities in most cities are usually located outside the central areas of those cities and in many cases are located at, or adjacent to, the local major airport.
As a result, the potential for a new facility was discussed with the Ottawa Airport Authority (Airport Authority) and, during September/October 2009 the Shenkman Corporation (Shenkman) and the Airport Authority negotiated and entered into an agreement whereby Shenkman obtained a one-year period to enter into a lease agreement with the Airport Authority to construct and operate a new facility.
During the same time period, Shenkman had consultants meet with representatives of the local Trade and Consumer Show industry to gain an understanding of their needs. Shenkman also worked on development of a business case that would allow them to decide to move forward and enter into an agreement with the Airport Authority. Unfortunately, at the time of the November 2009 staff report, Shenkman had not yet completed their work. They did, however, determine that a level of municipal funding will be necessary to make the business case viable.
Therefore, in considering the LPP Implementation report in November 2009, Council was not in a position of certainty regarding the existence of a proposal for a new facility and to what extent there would be a requirement for City funding.
Consequently, the November 2009 staff report recommended a process, to assure Council of the existence of a known plan for a new Trade and Consumer Show facility prior to making a final decision on the LPP in May 2010 and to provide a competitive element to the process should interest in the marketplace exist, as follows:
The November 2009 staff report also indicated that a new facility, to accommodate Trade and Consumer Show use for the long-term, could be constructed by the end of 2011 and opened for use in 2012, if a proposal is approved by Council as a result of the process described above. Based on an understanding reached with OSEG, the report also noted that all shows currently using the existing facilities at Lansdowne Park could also be accommodated, in the short-term, until the new Trade and Consumer Show facility is opened, by the continued use of the Aberdeen Pavilion and the Civic Centre facilities and by the provision of a temporary structure with approximately 28,000 sq. ft. of floor space.
Although Shenkman and the Airport Authority had not completed the specific arrangements for a ground lease with respect to the site for a new Trade and Consumer Show facility when the LPP was tabled at Council on 2 September 2009, it was understood that the potential location might be on a portion of the airport property in the vicinity of Hunt Club Road.
In that regard, Council approved Motion 71/32 on 2 September 2009 that the implementation report includes a traffic study for the lands for the Central Canada Exhibition’s relocation and the potential new trade show site. As a result, the November 2009 staff report indicated that a traffic study would be conducted to determine the impacts of having the Trade and Consumer Show facility located at the Airport given the current traffic conditions along Hunt Club Road and that the traffic study would be completed prior to 15 February 2010, so that Council would have the benefit of that information prior to receiving the Shenkman proposal.
On 16 November 2009, in considering the above information and staff Recommendation 2 a) iv) with respect to a procurement strategy for a new Trade and Consumer Show facility, Council approved Motion No. 77/21 as follows:
“That staff be directed to commence the Request for Expressions of Interest to the Proposal process for the construction, operation and finance of a Trade and Consumer Show facility in Ottawa as soon as possible and that any proposal from the Shenkman Corporation be received through the RFEOI process and that a Request for Proposals process be immediately commenced upon the successful completion of the RFEOI process, to be completed prior to Council’s June 2010 consideration; and that Recommendation 2 a) iv) of the LPP Implementation Report be modified to reflect this revision; and that Council direct staff to commission a study to assess the following:
1) Social value to community residents of a new trade and consumer show facility;
2) Indirect economic benefits and value to local business to promote and grow their business;
3) Direct economic benefits to the community and broader region from visitor spending by (new money to the community, jobs/employment);
4) Development spin-off potential (e.g. hotels and other facilities, improved airport services);
5) Review municipal investments practices in Trade and Consumer Show facilities;
6) Other Benefits.
On 16 November 2009, prior to approving motion 77/21, Council approved Motion 77/14 as follows:
“That City Council delegate the authority to a joint Transit and Transportation Committee to approve the Terms of Reference for the transportation studies including and associated demand management plan for the LPP and for the additional Terms of Reference for the Traffic Impact Study for the relocation of the trade show space to the airport as referenced in Recommendation 2 a) ii)”
Draft terms of reference for a Traffic Impact Study were prepared and available as part of the November 2009 staff report but were based on the staff recommendation with respect to receiving a proposal from Shenkman by 15 February 2010 based on a site in the northwest corner of the airport property in the vicinity of Hunt Club Road.