Hotel Development Opportunity for Prequalified Development Teams

Transcription

1 Hotel Development Opportunity for Prequalified Development Teams Request for Proposal September 15, Pleasanton Avenue Pleasanton, California 94566

2 CONTENTS Hotel Development Opportunity 3 Historical Overview and Background 3 Economic Contribution 4 Mission Statement 4 Development Site Information 4 Figure 1. Regional Street Map 6 Figure 2. Alameda County Fairgrounds Aerial View 6 Figure 3. Proposed Hotel Development Site Aerial View 7 Figure 4. Site View Looking North 8 Figure 5. Site View Looking Northwest 8 Figure 6. Site View Looking West 8 Figure 7. Site View Looking Southeast 8 Entitlement Process 8 Business Terms 9 Proposal Requirements 10 Voluntary Pre-Proposal Meeting 13 Selection Criteria 14 Evaluation Process 15 Estimated Schedule 15 Inquiries 16 Submittal Requirements 16 2 P a g e

3 HOTEL DEVELOPMENT OPPORTUNITY Congratulations! Upon completion of the RFQ screening process that began in July, your team is now among the short list of prequalified developers approved to receive the Request for Proposal (RFP) for the development & operation of a hotel at the Alameda County Fairgrounds. As previously noted, the (Association,) as agent for the County of Alameda (County,) is seeking a developer to design, build and operate an Upper-Upscale branded hotel on a five to seven acre parcel of land inside the property. The Association expects that the selected Developer will be responsible for all aspects of the project including pre-development design, financing, entitlement, construction, operation and maintenance. The RFP is the second step of the three-phased process outlined below: 1. The Association has evaluated the responses to the RFQ and has selected a short list of no more than five development teams. The selection was based on the team s financial qualifications and operational experience. 2. The short-listed development teams are now being asked to respond to this RFP. Development teams are required to identify a hotel operator and flag, submit preliminary design drawings, provide pro-forma analysis, and describe the proposed ground-lease terms. 3. At the completion of the RFP evaluation process, the Association will enter into an Exclusive Negotiating Agreement (ENA) with the selected development team for the purpose of negotiating the terms of a long-term ground lease. HISTORICAL OVERVIEW AND BACKGROUND In 1859, Don Bernal built a one-mile horse racetrack at his Rancho del Valle de San Jose, a 52,000-acre land grant from the Spanish government. The track was the site of the first Pleasanton Fair and Races in 1904, followed by the formation of the Alameda County Fair Association and first County Fair in By 1939, the Fair Association had grown to 82 Board Members, each of whom posted promissory notes ranging from $1,000 to $100,000 for the annual Fair and Race Meet. Any losses from the venture were assessed against Board Members proportionately and profits were used to initiate the next Fair. In 1941, the Fair Association purchased the racetrack and surrounding 100 acres for $40,410, then deeded the property to the County of Alameda to forever protect it as a Fairground. From the 1940s through the1960s, the Fair Association operated the annual Fair & Race Meet with oversight by the County Board of Supervisors. During this time the Fair Association continued to expand the Fairgrounds to nearly 300 acres, all of which was deeded to the County. Later on, as land was needed for public roads and related improvements, the Fairground was eventually reconfigured to its current size of 268 acres. 3 P a g e

4 The Alameda County Fair Agricultural Association is a private, non-profit 501c3 Corporation governed by a 21 person volunteer Board of Directors and a professional staff of approximately 100 full-time employees. The Association is contracted as an agent of the County of Alameda to operate and maintain the Fairgrounds, produce the annual summer Fair & horse racing meet, and other year-round events. It also maintains several other related businesses on the property such as an off-track betting facility, RV storage, RV campgrounds, nine-hole golf course & driving range and racehorse training facility. In 2014, the Association adopted a Strategic Plan Project. The purpose of the project was to evaluate the facilities, revenue streams & economic impact of the Fairgrounds and to identify potential areas for growth and development. The study concluded that the facilities would need to be modernized in order for the Association to continue to fulfill its mission and effectively serve the community. It also identified ten potential planning area concepts for consideration as part of the Association s long-term goals. One of the proposed concepts suggests a new development zone for uses compatible with existing and planned interim/annual Fair events. These uses included the potential addition of a hotel complex and subsequent repurposing of the Off Track Betting facility. (See attachment 1, Alameda County Fair Board, Strategic Plan Project, October 7, 2014) ECONOMIC CONTRIBUTIONS Today, the Fair Association provides a local economic benefit in excess of $300 million annually, based upon an Economic Impact Study completed by KPMG in The Association s Annual Operating Budget is roughly $25 million. More than 260 events take place at the Fairgrounds each year, with combined attendance in excess of 3 million patrons. Annual wagering on horse racing surpasses the $24 million mark each year. The large RV and boat shows report annual sales at the Fairgrounds of roughly $80 million. Each year, thousands of room nights are booked in local hotels as a result of events at the Fairgrounds. For more information related to the annual summer Fair, concerts and event activity, view the web site at alamedacountyfair.com. The Fair Association receives no financial support from the County of Alameda or the City of Pleasanton. All revenues in excess of expenditures are reinvested into the Fairgrounds. MISSION STATEMENT The mission of the is to ensure the long-term viability of the Alameda County Fairgrounds, present an exceptional annual Fair which celebrates the heritage and diversity of Alameda County and provide year-round opportunities for facility usage. DEVELOPMENT SITE INFORMATION The Fairgrounds is located in Pleasanton, California and conveniently situated near the intersection of Interstates 580 & 680. The development site is approximately five to seven acres, depending on the needs 4 P a g e

5 of the Developer, and is bound by Valley Avenue to the west, Gate 8 entry road to the south, the Off Track Betting facility to the north and an open parking lot to the east. The proposed site is considered ideal for development as it is located on the west edge of the Fairgrounds (near I-680 via Bernal Avenue) and offers easy street access, away from the main event zone of the property. The site is also located directly across from the Koll Center Business Park to the west, Bernal Sports Park to the south, Pleasanton Gateway shopping center to the southwest and is within walking distance to shops & restaurants in historic downtown Pleasanton. Directly to the north of the site is the 25,000-square-foot Off Track Betting facility, built in the 1980s. The building currently operates as a satellite horse racing wagering facility and also hosts Winners Bingo at night. The use and refurbishment of part or all of the building could be included in the development as meeting and/or event space in conjunction to a hotel, if desired. Although there is parking located adjacent to the proposed site, all required parking for the hotel must be provided by the Developer within the project development boundaries. There is a stand of elm trees to the south of the site along the Gate 8 roadway that must be maintained and cannot be adversely affected by the development. In November 2016 the Association commissioned ALH Urban & Regional Economics to conduct a Hotel Market Study. The study concluded that the site is suitable for an Upper-Upscale hotel with approximately 150 plus rooms and up to 4,700 square feet of meeting space. (See attachment 2, Alameda County Fair Hotel Market Study, March 2018) The land is controlled by the who operates the Fairgrounds under agreement as agent of the County of Alameda. The land is vacant and currently only used for overflow parking and outdoor events. The Association intends to grant a long-term ground lease of the property. Said lease will require County s approval before execution. 5 P a g e

6 Alameda County Fairgrounds Figure 1. Regional Street Map Subject Site on the Alameda County Fairgrounds Figure 2. Property Map 6 P a g e

7 Subject Site on the Alameda County Fairgrounds Figure 3. Alameda County Fairgrounds Aerial View Approximate 5 Acre Site Figure 4. Proposed Hotel Development Site Aerial View 7 P a g e

8 Figure 4. Site view looking north Figure 5. Site view looking northwest Figure 6. Site View looking west Figure 7. Site vew looking southeast ENTITLEMENT PROCESS A hotel project will follow the development procedures, processes and requirements of the City of Pleasanton, including its General Plan and zoning & related ordinances. The Fairgrounds site is designated by the City of Pleasanton General Plan to be for Public and Institutional Uses. Since hotels are not consistent with this land use designation, the General Plan will need to be amended to a different designation (such as Commercial) then rezoned from the current Public zoning district, likely to a Planned Unit Development (PUD), a flexible district that would accommodate a unique proposal for the Fairgrounds, as certain development standards can be tailored to an individual project when appropriate. Review of development in the PUD district requires approval of a PUD development plan, which includes design review (architecture, landscaping & site plan.) The General Plan amendment, rezoning, and PUD development plan application would all require review and a recommendation by the Planning Commission, first at a workshop, then a formal public hearing and a final review by the City Council. In considering an application for a PUD, the City will evaluate the plan on the following criteria: 8 P a g e

9 Must be in the best interest of the public health, safety & general welfare and consistent with the City s General Plan Must be compatible with surrounding development and the natural and topographic features of the site Must be compatible with the natural terrain and landscape Must minimize grading impacts on environmental characteristics of the site Must meet expectations regarding public safety Must be in compliance with the purposes of the Planned Unit Development District City staff will also consider the specific siting and architectural design of the hotel to be important issues. The text of the Planned Unit Development District requirements is provided. (See attachment 3, Pleasanton Municipal Code, 11/30/2017). The City is designated as the CEQA (California Environmental Quality Act) lead agency. CEQA review will be managed by the City of Pleasanton. As part of the application process, the City will issue a Request for Proposal (RFP) and select a preferred consultant. The applicant/developer will enter into a reimbursement agreement to fund the CEQA contract with the City. We anticipate that the CEQA document will cover traffic, drainage and water quality impacts, and visual impacts as its primary focus. The City anticipates that the review process will take 4-6 months after submittal of a complete application, including an acceptable CEQA document. BUSINESS TERMS Respondents to the RFP are required to affirmatively agree to the following: 1. The Association and the City have a preference for an Upper Upscale hotel. Provision of a restaurant and bar/lounge space, room service, small meeting components, fitness room are also desired. 2. The Association will agree to an initial long-term ground lease. Length of term and extension options will be the subject of negotiation during the ENA period. 3. The County s fee interest in the site represents the senior lien on the property. The County will not subordinate its fee interest in the site. 4. Ground Rent Payments: a. The Association is seeking a guaranteed base rent that will be subject to annual escalation. b. The Association is also seeking rent as a percentage of Gross Revenue produced by room sales, food and beverage sales, and other revenue streams generated by the hotel. c. The Association will have reasonable right to approve any assignment of the ground lease, as well as and changes in the hotel flag or operator. d. The project will be subject to possessory interest tax obligation. e. The Association will not pay commissions to real estate brokers PROPOSAL REQUIREMENTS 9 P a g e

10 Written proposals must clearly define the proposed hotel development and operation, service offerings, financial terms and other elements requested below. Format, organization and content are all important in order for the Association to conduct a complete review of the proposals. Be sure to include all information requested in the RFP. Include any other information to clarify any unique differences of your proposal. The RFP evaluation process will include a specific, focused review of each proposal. Each proposal will be evaluated against all other proposals received. Please prepare your written proposal in the order requested. The following section describes the minimum required information that must be submitted with each proposal. Incomplete proposals may be rejected. The proposal requirements in this section are not meant to limit creativity in the presentation of a proposal, rather to list the minimum elements that must be included in the proposal. It is the proposer s responsibility to incorporate all pertinent information to effectively present a proposal for the development and operation of a hotel on the Fairgrounds. 1. Cover Letter The cover letter shall identify the Development Team and state other general information which the proposer desires to include regarding the proposer s business organization. Please include the point of contact and contact information (including address) on the cover letter. 2. Development Team Resumes Please include resumes of the actual development team you have selected to work on the proposed project. This should include but not limited to, Principals, Architects, Engineers, Project Managers, Operations Managers, Finance Team and any other significant team members that the Association and City will interact with through the process and management of the project. 3. Hotel Development Plan/Financing Proposals must include the following: a. Development Schedule Include a detailed schedule/timeline depicting commencement and completion of the development of the hotel facility, opening activities and ongoing operation of the hotel. Highlight major construction milestones and activities. b. Proposed Facility Build-Out At minimum, describe the below amenities being proposed: 1. Hotel brand and classification 2. Number of proposed rooms and square feet 3. Number of meeting spaces and square feet 10 P a g e

11 c. Financial Capability 4. Square feet of fitness center, pool or spa 5. Square feet of restaurant and other hospitality 6. Square feet or acreage of overall development (curb to curb) 7. Square feet of building structures 8. Number of floors and height of the building 9. Square feet and number of parking paces 10. Other outdoor amenities 11. Availability of room service 12. Detail the full facility build-out financial investment in real property improvements. This amount should be represented as a total of overall investment and as an amount per room to be developed ($/room) for the hotel site proposed. Describe the proposed ownership structure of the development. List information detailing the developer s plan to fund the construction and operations of the hotel. Discuss banking and financial relationships that will be required to fund the project. Detail the approval processes and time frames necessary to receive said funding. Provide documentation of project funding or preliminary commitments or statements of interest from lenders and/or equity partners. 4. Facility Design and Quality of Improvements Proposers shall submit the following preliminary plans in sufficient detail to facilitate evaluation of the quality and design of the proposed hotel site. a. A preliminary architectural rendering of the proposed hotel project, including but not limited to: 1. The overall design, style and layout of the hotel facility on the site recommend traditional architectural style with a high level of building detail 2. Landscape and parking plan using the City of Pleasanton s design standards for parking area and water efficient landscaping 3. A typical guest room 4. Lobby area(s) 5. Meeting areas 6. Restaurants and other hospitality areas 7. Outdoor amenities 8. Parking layout with site ingress, egress and circulation 9. The general color scheme, fixtures, casework, furniture and decor, the branded sign and graphic element, and any other signage. 5. Hotel Operating Plan a. Assignment 11 P a g e

12 Proposer must disclose if it intends to assign the Hotel Operating rights to another entity following date of Certificate of Occupancy. Assignment of the Agreement to another entity following date of Certificate of Occupancy is subject to approval by the Association. b. Operations Plan Proposer shall submit a detailed business plan to operate, maintain, staff and market the hotel. As a component of the operating plan, Proposer must detail the proposed management structure including local management and staffing. Include any proposed additional services/amenities that will enhance the customer experience. 6. Financial Projections a. Pro-forma Operating Statement The Proposer shall provide a Pro-forma Operating Statement for the hotel project. The Pro-forma shall include the Proposer's projected gross revenues and expenses during the first fifteen years of the hotel operation term. The pro-forma will be evaluated by the Association in terms of reasonableness; demonstrated understanding of the hotel industry; viability of the proposed hotel; and ability to fund continuing operations from cash flow generated by the business. b. Rates Include proposed rental rates and occupancy rates and show cash flow from room rents and other revenue sources. c. Assumptions Please submit any underlying assumptions and any additional documentation supporting revenue and expense projections for the hotel. 7. Detailed Business Terms The Association is requesting a detailed business offer including at a minimum: a. Desired term of lease and requirements for extensions. b. Any and all ground lease base (minimum) rent payments from execution of ground lease through predevelopment, construction, and years of operations. c. Any and all proposed deferrals or discounts to base rent throughout the life of the lease. d. Any and all percentage rent on operating revenues e. Any participation in excess gross revenues and/or capital events (such as sale or refinancing). 12 P a g e

13 VOLUNTARY PRE-PROPOSAL MEETING Teams are requested to submit any questions or requests for clarification in advance of the voluntary preproposal meeting. All questions and requests for clarification shall be submitted to Jerome Hoban, Development teams are welcome to attend a pre-proposal meeting with the Association s CEO to tour the property and discuss potential options and directions a development team may want to consider in a proposal. The meeting will be held Thursday, September 25, 2018 at 1:00 pm. Any clarifications or changes in the RFP requirements as a result of the pre-proposal meetings will be made by written addendum to this RFP. Any addendums will be provided to all development teams at least two weeks in advance of the RFP submittal deadline. The Association is not responsible for any explanation, clarification, interpretation or approval made or given in any manner except by written addendum. Any addenda so issued are to be considered a part of this RFP document. 13 P a g e

14 SELECTION CRITERIA The Review Committee will meet and collectively rank all submittals to determine the highest ranking submissions. Interviews with the development teams may be required following the initial review of the proposal to help determine final ranking. The criteria, as indicated below, will be used to evaluate the responses to the RFP. The Review Committee member s scores will not be made available for review. The Following criteria will be used to evaluate the responses to the RFP submittals: Scoring Criteria: Development Team Resumes Principals, Architects, Engineers, Project Managers, Operations Managers, Finance Team and any other significant team members that the Association and City will interact with through the process and management of the project. Development Schedule: Detailed schedule/timeline depicting commencement and completion of the development of the hotel facility, opening activities and ongoing operation of the hotel. Highlight major construction milestones and activities. Proposed Facility Build-Out: Proposed brand of the hotel and the number of proposed rooms, square feet of rooms, meeting space, hospitality areas and parking stalls and outdoor amenities. Financial investment in real property improvements. Financial Capacity: Ownership structure and team s ability and timeline to fund project. Facility Design and Quality of Improvements: Preliminary architectural rendering of the proposed hotel project, quality, design and layout of site. Hotel Operating Plan: Assignments, detailed business plan to operate, maintain, staff and market the hotel, proposed management. Financial Projections: Pro-forma Operating Statement for fifteen years of the hotel operation, rate structure, occupancy and cash flows for room rent and other assumptions. Detailed Business Terms: Desired term of lease and requirements for extensions, all ground lease base rent payments from execution of ground lease through predevelopment, construction, and years of operations. All proposed deferrals or discounts to base rent throughout the life of the lease. All percentage rent on operating revenues. Participation in excess gross revenues and/or capital events. Maximum Points Total Points Possible P a g e

15 EVALUATION PROCESS The Association reserves the right to reject any or all submittals at its sole and absolute discretion. The Association will designate a Review Committee ( Committee ) to evaluate all submittals received in response to this RFP. The Committee will assess proposals based on the evaluation criteria. Committee members will score each proposal in their own preferred order. The scores assigned by each Committee member will be based on the individual member s reasonable judgment as to the degree to which the proposal complies with the criteria and intent of the RFP process. Members of the Committee and other Association staff may contact references and industry sources, investigate previous projects, current commitments, etc. as part of the evaluation process. The Association reserves the right to reject any or all responses to this RFP, to re-solicit or not, and/or to waive informalities as deemed in the best interest of the Association. ESTIMATED SCHEDULE Release of RFP by Association to Pre-qualified September 15, 2018 Development Teams Voluntary Pre-Proposal Meeting September 25, 2018 Deadline for Submission of Responses to the RFP October 20, 2018 Evaluation of Submissions October 20- November 15, 2018 Development Team Presentations (As needed) October 30- November 15, 2018 Association enters into an Exclusive Negotiating November 15, 2018 Agreement (ENA) with highest scoring Development Team 15 P a g e

16 INQUIRIES Questions related to this RFP will only be accepted from the respondent s prime contact in writing or by to Jerome Hoban, CEO at jhoban@alamedacountyfair.com. The Association will determine what questions or inquiries warrant a response to all participating respondents. SUBMITTAL REQUIREMENTS Responses should be organized in a similar format and order as listed in the Submittal Requirements section. Late submissions may be disqualified at the discretion of the Association. Submissions must be provided in a sealed package labeled Hotel Development RFP and with the prime contact and address clearly noted on the front of the package. Please submit seven (7) complete, bound hard copies and one complete digital copy on a flash drive. PDF digital file format is preferred. All costs related to preparing the submission to the RFP shall be borne by the responding Development Teams and will not be reimbursed by the Association. Responses to the RFP: Responses to the RFP shall be submitted by 4:00 pm, October 20, 2018 to the attention of: Hotel Development RFP Attn: Jerome Hoban, CEO 4501 Pleasanton Ave. Pleasanton, CA P a g e