Lexington Center Corporation Request for Proposal for Convention Center Naming Rights Request for Proposals

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1 Request for Proposal for Convention Center Naming Rights Request for Proposals Title: Naming Rights for the Lexington Center Corporation, New Convention Center, Lexington Kentucky Issue Date: December 16, 2016 Issued by: Lexington Center Corporation 430 West Vine Lexington, KY I. Introduction, Background and Purpose: The Lexington Center Corporation (LCC) is seeking a Naming Rights Partner to be associated with the existing Convention Center as well as the proposed new Convention Center. This Request for Proposal is made pursuant to the Procurement Policies and Procedures of the LCC officially adopted by its Board of Directors in July, The Lexington Center Corporation ( LCC or the Corporation ) is issuing this Request for Proposal to associate a corporate name with the public assembly facility, the Lexington Convention Center. In addition, other naming rights opportunities may exist in the overall Rupp District Development. This opportunity will forge a partnership between the private and public sectors. Background Located at 430 West Vine Street in downtown Lexington, which is minutes from Bluegrass Airport, the University of Kentucky campus, and Lexington s iconic Thoroughbred horse farms, Lexington Center and Rupp Arena opened in 1976 and are home to the National Champion University of Kentucky men s basketball program. Lexington Convention Center currently has 130,000 square feet of elegant and versatile banquet, exhibition and meeting space of which 66,000 square feet is dedicated exhibition space. The Convention Center and two attached convention hotels occupy a common corner, within easy walking distances to shopping, dining and entertaining destinations. The Proposed Project To support the $250 million project, the Kentucky General Assembly (the Budget Bill ) authorized the issuance of $60 million of State General Fund supported lease appropriation supported obligations for the benefit of the Lexington Center Corporation for a term of up to 30-years. The State s lease payment obligations are to be funded in part by ½% of the 2 ½% total increase in the transient room tax authorized in House Bill 56 of the 2016 Regular Session, while the remaining 2% is available to support the additional obligations of LCC to renovate existing convention center and construct the new facility. Additionally, the Lexington Fayette Urban County

2 Government ( LFUCG ) has preliminarily authorized the issuance of General Obligation Bonds in order to contribute $10 million to the project, bringing the total government support to $70 million. The new plan includes over 100,000+ square foot exhibit hall, larger, enhanced ballrooms and meeting space along W. Main St.; and repurposed retail space at the ground level. The project will be constructed in phases so as to create minimal impact to existing business commitments. Studies dating back to 1986 consistently call for larger exhibit and meeting room space for Lexington to sustain and grow its position as a convention and meeting destination. The existing exhibit hall cannot be expanded due to its orientation to Main St, Rupp Arena and the Mary Todd Lincoln House. The plan calls for a new exhibit hall to be constructed west of and adjacent to Rupp Arena. The proposed convention center plan does not include any additional renovations to Rupp Arena which is already undergoing a $15 million video/audio/tech upgrade. Some parts of the first, second and third levels of the Shops at Lexington Center and existing meeting rooms will be repurposed for retail and other uses. III. Benefits in the Naming Rights Package: Listed below are the benefits that will be made to the successful Respondent. The name of the new Lexington Convention Center which is proposed by the successful Respondent and approved by the Lexington Center Corporation Board will be the exclusive name of the facility in all official facility references during the term of the agreement. It is expected that the title of the Lexington Center or the Lexington Convention Center could become the XYZ Center or the XYZ Convention Center. It should also be understood that the name Rupp Arena will remain, but will be referred to as Rupp Arena at XYZ Center in all official references. Additionally, the successful Respondent will have the right to create and develop a proposed logo for the facility which is subject to approval by the LCC. Name and logo identification in all official facility references made by LCC or LFUCG including, but not limited to, the following: Media correspondence Media placement television, radio, billboards and print Website with links Facility marketing collateral relating to the facility Facility related publications Promotional merchandise Advertising/promotional literature Exterior facility name and signage opportunities: Front of facility at the main entrance Signage on all entry doors Directional signage within facility public vehicular areas Page 2

3 Interior facility name and signage opportunities: Main lobby/pre-function areas Interior directional signage Other locations to be coordinated with Convention Center Architectural Team IV. Selection Criteria Details: Any and all proposals will be considered. However, the Respondent will address, at a minimum, the selection criteria hereinafter listed: A. Financial Proposal: Respondent shall outline its financial proposal including, but not limited to, payment plan and escalation factors in sufficient detail so that a thorough analysis of the proposal may be performed. In valuing naming rights, corporations generally consider the following attributes: Proposed term of contract Number and type of events held at the facility Annual attendance Demographics of the audience Media exposure Comparative analysis with other similar facilities Competition for the opportunity in the market Projected future events/historical performance LCC desires the payment plan to consist of equal annual installments over the term of the agreement. The successful Respondent will be responsible for the cost of naming rights signage on the exterior of the building. B. Term: Respondent shall outline the proposed term of the agreement. A minimum term of ten (10) years is contemplated. Renewal options may be included. C. Exclusivity: Respondent shall define the entities that are within the Respondent s area of business which it desires to preclude from having naming rights for areas within the facility. LCC intends to avoid the granting of naming rights for meeting rooms and other areas within the facility to entities which are in the same area of business of the successful Respondent, but not restrict the sponsoring of events or any other use of the facility. D. Proposed Name of Convention Center: Respondent shall propose alternative names for the facility. These will be discussed more fully during the negotiation process, with LCC having approval authority of the name of the facility and the facility logo. LCC desires to retain Lexington Convention Center as a part of any proposed name; however, will consider all options. The successful Respondent will be required to grant the right to include any trademarks which are included in the facility name and facility logo. E. Marketing Initiatives: Respondent shall outline the manner in which it will enhance the Convention Center profile with marketing support in the form of media, promotions and community projects. Page 3

4 F. Financial Stability: Respondent shall submit with its proposal sufficient evidence of its financial stability. Please provide any additional information that the Respondent feels should be considered when evaluating their proposal. The Respondent may present any creative value added approaches that might be appropriate. The Respondent may also provide supporting documentation that would be pertinent to this RFP. V. Request for Proposal Response Process: The process for selecting the most suitable corporate naming rights partner is designed to attract competitive bids from corporations supportive of increasing Lexington s profile in both the region and the nation. Criteria for Selection: Proposals by respondents will be evaluated on the basis of criteria deemed most appropriate for a successful partnership. These criteria include, but are not limited to, the following: Financial structure of proposal Term of proposal Exclusivity requests Proposed name of facility Marketing initiatives to promote, market and support the facility Financial stability of corporate partner VI. Schedule: The following outlines the proposed timing of responses; however, LCC reserves the right to modify the dates as necessary. Any changes will be issued in addendums to this RFP. December 16, 2016: RFP released on LCC website January 10, 2017, 2:00 p.m.: Non-mandatory pre-bid question and answer conference and tour of site. January 20, 2017: Last day to submit written questions. February 3, 2017, at 2:00 p.m.: Deadline for submission of three (3) hard copies of proposal plus one (1) electronic copy on CD-Rom or other standard storage media in.pdf or Microsoft Word file format. Week of February : Interviews with selected Respondents March 23, 2017: Formal presentation and approval of selected naming rights partner by LCC Board Page 4

5 VII. Respondents Instructions: A. All respondents should direct all written questions to: Mr. Bill Owen Lexington Center Corporation B. Respondents are only to direct questions in writing to contact listed above. No contact is to be had with LCC Board Members. C. By February 3, 2017, at 2:00 p.m. EDT, proposals must be received in a sealed envelope marked the outside, RFP Naming Rights, and addressed to: Mr. Bill Owen, President, CEO Lexington Center Corporation 430 W. Vine Street Lexington, KY ext fax VIII. Disclaimer: LCC reserves the right to reject all proposals, to negotiate individually with the proposers, and to select a vendor based upon the best interests of LCC, which best interests may not be based exclusively upon pricing. LCC reserves the right to withdraw the RFP at any time at its sole discretion. LCC reserves the right to amend the RFP to correct errors or oversights, or to supply additional information as shall become available, at any time prior to the opening of responsive submissions. LCC reserves the right to eliminate any mandatory, non-material specification or requirements that cannot be met by any of the prospective proposers. LCC reserves the right to request and require clarification at any time during the procurement process and/or require correction of mathematical or other apparent errors and/or to determine a proposer's compliance with the requirements of the RFP. Evaluation and Award This RFP does not commit the LEXINGTON CENTER CORPORATION to the award of a contract, nor to pay any cost incurred in the preparation and submission of proposals in anticipation of a contract. LEXINGTON CENTER CORPORATION reserves the right to reject all proposals, portions of proposals or subconsultants/team members, to further modify the scope of work and/or negotiate further with respect to the proposal or to select the firm which in LEXINGTON CENTER CORPORATION S sole judgment provides the best overall proposal with respect to qualifications, experience, financial proposal and staffing abilities END OF RFP Page 5

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