CITY OF MUNCIE, INDIANA CONVENTION CENTER HOTEL DEVELOPMENT REQUEST FOR QUALIFICATIONS

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1 CITY OF MUNCIE, INDIANA CONVENTION CENTER HOTEL DEVELOPMENT REQUEST FOR QUALIFICATIONS I. Executive Summary The City of Muncie, Indiana ( Muncie ) is seeking a qualified developer to invest in the construction and operation of a new hotel property attached or adjacent to the existing Horizon Convention Center in downtown Muncie, Indiana. Local government will partner with economic development and convention center officials to present an incentive package that may include land, tax abatement, tax increment financing, fast-tracking construction, including waiver of permitting fees and coordinated meetings with City officials, as well as ongoing sales, marketing and operational assistance from the Horizon Convention Center staff. The Horizon Convention Center, opened for operation in 1988, was initially developed in an historic building in downtown Muncie. In 1996 the Convention Center expanded allowing for the facility to function as a true fully-functioning convention center. The adjacent historic Hotel Roberts closed in November of 2006 forcing the Convention Center to transport guests to outlying hotels approximately 3 to 4 miles from downtown Muncie. The ability to attract convention business has been substantially hindered by the absence of an attached or adjacent hotel, however, the convention center has still been able to generate revenue by changing their target markets to include more social events. The Horizon Convention Center staff is confident that the development of a new hotel property will significantly increase business. Although the Roberts has remained vacant since 2006, it is anticipated that the building will be rehabilitated into residential condominiums or some other use and will not return as a hotel option for Muncie. The purpose of this RFQ is to identify a long-term partner for the City of Muncie and the Horizon Convention Center. Muncie is willing to be extremely flexible in identifying a plan for hotel development and operation that will immediately complement the Horizon Convention Center and achieve long-term sustainability. Muncie is willing to consider a developer with a variety of ideas, including a partnership for the operation of the Horizon Convention Center. 1

2 II. Community Overview The City of Muncie is located in Delaware County and is approximately 58 miles northeast of Indianapolis. The population of the City of Muncie is approximately 70,085, which comprises 60% of the Delaware County population of 117,671. Described in several national studies as a typical American community, Muncie offers the advantages of larger cities without the burdens and costs associated with living in a major metropolitan area. Muncie has many unique attractions. Minnetrista features 40 acres of beautifully landscaped grounds surrounding a modern museum facility. The International headquarters for the more than 140,000 members of the Academy of Model Aeronautics is located in Muncie and includes its National Flying Site and National Model Aviation Museum home to the largest collection of model aircraft in the country. The Muncie Symphony offers first-class programs that feature nationally known artists, and the Muncie Civic Theater features live stage performances to suit all tastes. The Cardinal Greenway offers a scenic twenty-seven mile walking, biking, cross-country skiing and horseback riding trail. The Muncie Sportsplex boasts five baseball diamonds and 11 soccer fields that host a variety of tournaments from April to October of each year. Muncie is also the location of Ball State University, a NCAA Division I university with a student population of 22,000 and a large number of athletic programs. Ball State is located approximately two miles from downtown and generates a substantial demand for hotel stays. In addition to its large student population and athletic programs, Emen s Auditorium and the Sursa Performance Hall provide locations for regional, national and international talents to perform. Finally, Worthen Arena, with a seating capacity of 11,500, hosts numerous Ball State sporting events as well as occasional concerts and other events. Muncie also has a variety of businesses that require overnight hotel stays on a weekly basis. The international headquarters for Verallia containers is located near downtown Muncie. IU Health Ball Memorial Hospital, a Clarian Health Partner, is located next to the Ball State campus. Other key corporate offices in Muncie-Delaware County include, First Merchants Corporate Headquarters, Lifetouch, Sallie Mae, Keihin Aircon, Magna Steyr, Brevini Wind USA, VAT Group USA and Progress Rail. 2

3 Downtown Muncie has recently experienced substantial redevelopment and revitalization. Ivy Tech Community College has relocated a portion of its Muncie campus to downtown which has boosted the downtown economy. The major downtown attractions include the Horizon Convention Center, Muncie Children s Museum, Cornerstone Center for the Arts, and the Muncie Civic Theater. Downtown Muncie is also the location of several restaurants and shops and numerous business offices. Finally, Muncie hosts various special events that attract a large population of guests. These events include: Acquire the Fire (March) Indiana Field Archery Association (March/April) Ball State Graduation (May, July and December) Munciana Classic Volleyball Tournament (May) Ball State Freshman Orientation (June through July) Ironman 70.3 (formerly the Muncie Endurathon) (July) Academy of Model Aeronautics National Championships (July) Ball State Parents Weekend (October) Ball State Homecoming (October) III. Horizon Convention Center The Horizon Convention Center is an innovative mix of historic beauty and modern design. Formerly Muncie s Federal Building, the center s beauty is evident in the glass-enclosed pavilion, outdoor terrace and the classical splendor of the lobby s original interior. A 1996 expansion increased the facility s meeting space to 47,000 square feet. The convention center also boasts the second largest children s museum in the State of Indiana. The in-house catering service rounds out the team of special event coordinators. Eliminating the hassles of planning, the center provides a creative, experienced catering staff to provide inspired food creations. AMS Audio-Visual is also on-site to handle the technical aspects of any meeting. It has everything from basic audio visual needs to entertainment options such as DJs and video games to team building exercises. The Horizon Convention Center has produced over $6 million of economic impact for Muncie and Delaware County each year for the last five years. The convention center has been responsible for between 5,000 and 6,000 hotel room nights each year. In 3

4 IV. 2011, the center has hosted or is scheduled to host a total of 350 conferences, conventions, weddings and other events. Project Description The City of Muncie and its local economic development officials have developed certain elements which they envision a downtown hotel containing. However, the inclusion of these elements is not designed to limit development options or discourage a respondent from submitting a package. Rather, the City hopes to identify an experienced respondent that will develop a hotel operation that will achieve long-term sustainability. Basic Elements: 150 overnight rooms. 3,500 square feet of function space. Branded with nationally recognized brand. Desired Elements: Full service 2 or 3 meal restaurant with bar/lounge Ability to offer room service if requested by a specific group. Fitness facility with cardio equipment. V. Desired Qualifications The City of Muncie is looking for a respondent with significant relevant experience in developing hotel projects that service local convention centers. A quality candidate should be able to demonstrate the financial capacity and stability to develop the project and a successful track record of experience in the ownership and development of hotel properties. VI. Site Information The Horizon Convention Center is located in the heart of downtown Muncie. Adjacent to the Convention Center are various parcels of property currently under the ownership and control of the Muncie EDIT Building Corporation the ownership entity of the Convention Center that are available for the construction of a hotel. As such, the City and the Convention Center are able to offer a great deal of flexibility on the location and configuration of a hotel development. These parcels are just blocks from popular downtown eateries, pubs and shops. Further, the construction of a new urban park Canan Commons containing an outdoor performance stage will be completed by the end of September, 2011 just a half-block from the Convention 4

5 Center. Attached are aerial maps of the proposed location with approximate dimensions of the available construction sites. VII. Economic Incentives The Convention Center and the envisioned site of the hotel development are located within the Muncie-Central City Redevelopment District. As such, Tax Increment Finance (TIF) district revenues controlled by the Muncie Redevelopment Commission may be available to a potential hotel developer to assist in the financing of the project or improved public infrastructure in and around the proposed area. Likewise, the City of Muncie has a strong track-record of approving tax abatements for improvements. Moreover, the EDIT Building Corporation may consider donating the underlying real estate for the construction as an added incentive to a potential developer. Finally, the Muncie-Delaware County Economic Development Alliance and its related entities have a great deal of experience and considerable marketing and networking resources at its disposal to assist in the promotion and operation of a downtown hotel development. The City is willing to be extremely flexible in considering any incentive option that would assist in the sustained success of a downtown hotel operation. VIII. Submission Requirements: The Request for Qualification Response must follow the format outlined below and contain all requested information. a. Cover Letter: A minimum two (2) page cover letter describing the key qualifications and experience of the respondent, the specific interest in the City of Muncie Downtown Hotel Project and a summary of why the respondent should be chosen to proceed to the next step in the selection process, which is the submittal of a Request for Proposal. Further, the cover letter should include a statement on the availability and commitment of the respondent to undertake the project in the near future. b. Background Information: The response should include the following background information: i. Legal name of the respondent entity; ii. Address of the of principal office of the entity; iii. Number of years in operation; iv. Legal form of operation (individual, partnership, corporation, joint venture, etc.) v. Number of employees; 5

6 vi. Whether the entity is for sale or involved in any transaction to expand or to become acquired by another entity; vii. A summary of all past or pending litigation or claims filed against the respondent entity related to the development of a hotel or the development application process; and viii. Whether the entity is currently in default on any loan agreement for financing agreement with any bank, financial institution or other entity. c. Relevant Experience: A detailed description of relevant experience and similar projects must be provided. A list of similar projects completed by the respondent which clearly demonstrates the requisite expertise in developing and operating a hotel in or around a convention center should be included. Relevant experience should also include, but not be limited to, prior experience or projects involving the process of using public sector and/or government owned or controlled real property. d. Financial Qualifications and History: A description of the respondent s financial capabilities to develop a hotel in the City of Muncie. The financial information submitted will be held in the strictest confidence and will not be available for public review or inspection. Relevant financial qualifications should also include a history of past development projects and the financing involved. e. Financial Assistance Requested: If the respondent will be requiring or requesting financial assistance from the City of Muncie, in any form, please provide a detailed description of what type of assistance is required or requested. f. Submission Deadline and Instructions: Five (5) bound copies of the Request for Qualifications Response shall be received no later than September 15, Response packages shall be mailed or otherwise delivered to: Bruce Baldwin City of Muncie Redevelopment Commission 401 S. High Street Muncie, Indiana Incomplete Responses or Responses received after the deadline will not be considered. g. Terms and Conditions: i. Right to Reject: The City of Muncie reserves the right to reject all responses to this Request for Qualifications that are submitted. 6

7 ii. No Contractual Relationship: By submitting a response, the respondent acknowledges and agrees as follows: 1. The Request for Qualifications is a solicitation and is not a contract or an offer to contract. 2. The submission of a response will not create a contract between the Respondent and the City of Muncie or any other entity. 3. The City of Muncie has made no representation or warranty, written or oral, that one or more contracts will be awarded under this Request for Qualifications. 4. Respondent shall be solely responsible for any cost associated with the preparation of its response. iii. Representations and Warranties: By submitting a response, the respondent represents and warrants as follows: 1. Respondent is a reputable entity regularly engaged in the development and/or operation of hotels. 2. Respondent has the necessary experience, abilities, skills and financial resources to perform the terms, conditions and requirement of this Request for Qualifications. IX. Evaluation & Selection Process a. Evaluation: The evaluation of the submitted RFQ response packages will be based upon the following: i. Relevant Experience: The respondent s demonstrable and documented experience with respect to similar development, operations and/or uses, past record of performance in similar projects related to control of costs, quality of work and meeting deadlines. ii. Organization & Structure: A primary desired quality of the respondent includes the commitment of an experienced and professional management team throughout the development of the project. Reference checks will be made to evaluate the consistency, level of professionalism and responsiveness. 7

8 iii. Financial Resources: Evidence of financial resources to plan, develop and/or operate upon the property in addition to demonstrating a history of maintaining significant equity/cash positions in such projects and providing long-term investments to enhance the quality and success of projects. Financial information should be under separate cover and if requested, will be held in strict confidence and not available for public review. b. Selection Process: i. Initial Review: The City of Muncie will appoint a panel of 5 persons that will conduct an initial review of all responses received. Any response that is incomplete or fails to meet the basic qualifications will be eliminated. The panel will include the following persons: 1. Sharon McShurley, Mayor, City of Muncie 2. Jay Julian, President/CEO, Chamber of Commerce 3. Joann McKinney, President/CEO, Horizon Convention Center 4. Bruce Baldwin, Director, Muncie Redevelopment Commission 5. Michael Hicks, Director, Ball State University Center for Business and Economic Research ii. Panel Review: The panel will review the remaining responses. The panel reserves the right to request additional information and may elect to visit completed projects that are referenced. iii. Interviews: The panel may interview select respondents at a date and time to be determined. iv. Selection: Following the interviews, the panel will choose a respondent or respondents who will be asked to respond to a detailed Request for Proposals. Thereafter, the City intends to select a single developer to engage in negotiations for the execution of a Development Agreement. 8

9 X. Additional Information: The City of Muncie and its local economic development officials have additional information regarding the City of Muncie, Horizon Convention Center and the proposed location of a hotel development. If you would like any additional information or have any questions please contact: Jay Julian Muncie-Delaware County Economic Development Alliance 401 S. High Street Muncie, Indiana (765) OR Sharon McShurley Mayor, City of Muncie 300 N. High Street Muncie, Indiana (765)