REQUEST FOR QUALIFICATIONS
Arena, Conference, & Convention Management Companies
CITY OF GRAND FORKS ALERUS CENTER 1200 42ND STREET SOUTH GRAND FORKS, ND 58201
DEADLINE FOR SUBMITTAL: Tuesday, March 21st, 2017 2:00 P.M. (CST)
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REQUEST FOR QUALIFICATIONS
DATE ISSUED: Saturday, February 25, 2017
TITLE: Management and Operation of the Alerus Center
DESCRIPTION: The Alerus Center Commission is seeking proposals from experienced organizations or firms interested in managing and operating the Alerus Center on their behalf.
DEADLINE FOR SUBMITTING REQUESTS FOR QUALIFICATIONS (RFQ): Proposals must be received at the address shown below by Tuesday, March 21, 2017 at 2:00 P.M. Central Standard Time
POINT OF CONTACT: Todd Feland, City Administrator City of Grand Forks 701-787-3735 [email protected]
RFQ DELIVERY ADDRESS: By USPS: City of Grand Forks, Finance Department, P.O. Box 5200, Grand Forks, ND 58206-5200
By Courier or Hand Delivery: City of Grand Forks, Finance Department, 255 N 4th St, Grand Forks, ND 58203
OFFEROR’S MEETING REQUEST: Requests for individual Offeror’s appointment to meet with the City of Grand Forks and the Alerus Center officials during the RFQ advertising period should be scheduled with Todd Feland, Grand Forks City Administrator, at 1-701-787-3750.
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1.0 Introduction
The Alerus Center Commission is issuing a Request for Qualifications (“RFQ”) to identify arena, conference, and convention management companies that have proven experience in providing comprehensive management and full operations of facilities in similar markets to the Alerus Center. Services shall include, but not be limited to, general management, scheduling and promotion of events, marketing the venue, ticketing services, food and beverage service, building and equipment maintenance, and capital improvement planning. Accordingly, the Alerus Center Commission is inviting experienced facility management companies with strong track records in the industry to respond to this RFQ.
The Mission of the Alerus Center is to provide premier entertainment and events that stimulates economic impact and improves the quality of life for Grand Forks area citizens.
2.0 2017 City of Grand Forks Regional Overview
Grand Forks is innovative, entrepreneurial and committed to ensuring “All individuals and businesses have the opportunity to grow”, as ascribed by the Grand Forks Promise by making quantifiable and measurable commitments in the five Grand Forks Promise areas of: 1) A Safe Environment; 2) An Affordable and Competitive Place to Live and Do Business; 3) A Commitment to our Youth; 4) Opportunities to be Engaged; and 5) Rich Cultural and Healthy Experiences.
Located on the eastern border of North Dakota in the rich Red River Valley, one of the most fertile agricultural areas in the world, the City of Grand Forks was incorporated in 1881. Grand Forks history shows it to be a popular gathering spot for both Native American and early settler populations engaged in fur trapping and trading. Steamboats on the river and the expansion of the railroad facilitated much trade on the Red River Corridor from southern and eastern areas of the U.S. through Grand Forks to western and northern areas, including Winnipeg, Canada. Besides the trading, the agricultural industry has been a major factor in the City’s continued growth and development of the successful business climate in the region. Presently, the City serves as a regional trade center serving approximately 250,000 people including visitors from Canada.
Grand Forks currently occupies a land area of 26.86 square miles and serves a population of 58,277. Grand Forks is the proud home to the University of North Dakota that has a student body of 14,951 and is the premiere flagship institution of the Northern Plains. Located approximately 15 miles west of Grand Forks is the Grand Forks Air Force Base, which has a population of approximately four thousand. Grand Forks
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International Airport, located 5 miles west of the City, is served by the commercial air carriers Delta and Allegiant Airlines with non-stop service to Minneapolis, MN, Las Vegas, NV, Orlando, FL, and Phoenix, AZ. The City also continues to have both passenger and freight rail services with Amtrak’s “Empire Builder” and BNSF. Two bus lines serve the area and a number of trucking firms provide daily service.
Grand Forks adopted its Home Rule Charter in 1970 and operates under a strong mayor- council form of government. Policymaking and legislative authority vests with the City Council, which is made up of seven Council Members, one from each ward of the City, and the Mayor. Under the direction of the Mayor, the City Administrator carries out the policies of the City Council and oversees the day-to-day operations of city government.
Grand Forks continues to play a vital role as a “Destination City” for the region with its prime location and robust social and physical infrastructure. It is the health and education center, as well as the retail shopping and entertainment center. The City- owned Alerus Event Center and the attached privately-owned Canad Inn Hotel; with its 40,000 square foot indoor water park is a continued draw to the community for conventions, concerts, and other private events. Other city amenities include the world renowned Ralph Engelstad Arena, home of the University of North Dakota Hockey (located on the University of North Dakota campus); the public owned King’s Walk Arnold Palmer designed golf course, and the nationally designated Greenway Trail system that winds through both Grand Forks and East Grand Forks. These attractions augment the strong retail sector of the community and aid in making Grand Forks a multi-dimensional “Destination City”.
Grand Forks’ economy continues to remain strong and growing, coupling retail and building economy with a strong state and regional economy, particularly in the energy, agriculture and tourism sectors. Grand Forks has seen growth in the Agri- Business and Value-added Ag sectors including: Philadelphia Macaroni Co. which recently completed 20,000 square foot expansion to its pasta manufacturing plant, the ND Mill and Elevator that completed a $30M expansion that will increase production 30%, a new $3.5M Ag Country Farm Credit Services Office Complex, JR Simplot Facility renewal and expansion, and the proposed Northern Plains Nitrogen facility which is a $2 Billion plus project and will bring 2,000 workers in for construction and coming online operationally in 2020.
The University of North Dakota, led by the new President Mark Kennedy plays a key role in the local, regional, and state economy, with emphasis in the areas of aerospace, energy and the environment, and medicine. Investment in upgrading and expanding facilities on campus continues including a new $125M Medical and Allied Health Sciences School, a $12M renovation and addition to the Law School, a $15M Engineering School Collaborative Energy Center and a $23M Aerospace School and Foundation Unmanned Aerial Systems (UAS) Center.UND also completed construction
Page | 4 of a $20M Athletics High-Performance Center, which will provide an indoor training and competition center for UND Athletics.
The Grand Forks Region Economic Development Corporation and the Grand Forks/East Grand Forks Chamber of Commerce have helped lead business development and growth through sound investment and planning strategies and continue to be an asset for the region’s economic engine. Examples of growth within the community are a $4M plant expansion at LM Windpower that enables production of larger blades to increase their competiveness in the market place, and a $60M new corporate warehouse/office equipment building development for Minnkota Power Cooperative.
The City continues to plan for long-term infrastructure needs and focuses on a proactive development approach. Recent $12M infrastructure investments were made in the Business Park that have incentivized investment by several logistic businesses including Federal Express and Acme Tools, that also completed construction of new Acme Tools corporate offices on the North end of the City.
Grand Forks has identified three (3) Strategic Infrastructure Growth areas to focus on that will leverage an innovative $15M loan from the State of ND for infrastructure installation to encourage growth of both new industrial and commercial opportunities. These areas include I-29 South, which will expand on the southwest quadrant of the City and two areas along the Hwy 2 corridor of the City. The City conducted an analysis of several other areas where infrastructure installation could be utilized to spur development. Those will be monitored on the horizon for future inclusion in CIP planning as the City continues to grow.
Grand Forks continues to work with community partners to support and benefit from the growth opportunities in the North Dakota energy sector.
In addition, we have seen strong growth in the professional services area, with expansions occurring for many local accounting, banking, and engineering and consulting services firms.
The Grand Forks Air Force Base is producing new missions to support the country’s defense strategies and capabilities including the Remotely Piloted Aircraft (RPA) or Unmanned Aerial systems (UAS). The Air Force is utilizing the base as an operating location for Predator (MQ-1) and Global Hawk (RQ-4) UAV’s. This mission forges even stronger ties with the John D Odegaard School for Aviation and Aerospace Sciences and UND and many other private companies ranging from local start-up to national aviation giants.
Grand Forks County received approval from the US Air Force to move forward with the development of Grand Sky, the nation’s first Unmanned Aerial Systems Business and
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Development Park at the Grand Forks Air Force Base through an enhanced use lease. Giants in the industry, Northrup Grumman and General Atomics, have already established footprint in Grand Sky and others in the industry are expected to follow. Grand Sky has benefitted from strong support from North Dakota’s Congressional Delegation and state leaders, including the Northern Plains test site being named one of six FAA UAS test sites. The expanding UAS opportunities, as well as related industries including data management and analysis, are another example of the growth potential in the region.
The City provides its residents and businesses with a full range of services including Police and Fire protection, Highways and Streets, Sanitation, Health, Culture and Recreation, Public Improvements, Planning and Zoning, Water, Sewer, Public Transportation, and General Administrative Services.
The Grand Forks Police Department is CALEA accredited one of 3 agencies to boast this distinction in the State of North Dakota. The City also opened a new fire station to serve the growing development in southeast quadrant of the City, and is making technology improvements that will help enhance the performance of our first responders and public safety answering point personnel.
Other examples of maintaining the Grand Forks Promise are the city’s focus on young people and on healthy and recreational experiences. In addition to the Grand Forks Youth Commission that provides youth leadership opportunities, the Grand Forks’ County-wide Safer Tomorrows project to “end or mitigate childhood exposure to violence” continues to marshal more than 40 partner organizations to address issues such as healthy relationships, bullying and domestic assault.
Grand Forks’ 2200 acre Greenway and complementing multi-use trail system provide many health-based partners like Grand Forks Public Health, the Grand Forks Park District and Altru Health Systems programming opportunities to ensure all ages have access to healthy and recreational experiences.
Under the Mayor’s leadership, community partners have also recently undertaken strategic efforts to increase the Vibrancy of the community with the goal of talent retention and attraction and overall high quality of life. Vibrancy efforts include focusing on a robust Downtown, strong University/Community connections, an exciting Arts and Culture, and intentionally learning from the success of other communities. The optimal use of budgeted resources and public-private sector developed strategies like an Arts & Culture Master Plan and vibrant district development programs will pave the way to ensuring a vibrant community where businesses and workers want to call home.
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3.0 Alerus Center Background
The Alerus Center is governed by the Event Center Commission (also known as Alerus Center Commission), which is a board of community members and local government leaders appointed by the Mayor of Grand Forks and confirmed by the Grand Forks City Council. The mission of the Events Center Commission is to provide leadership that enables The Alerus Center to be beneficial to the regional economy, responsive to patrons, and accountable to Grand Forks taxpayers.
The Alerus Center is a state-of-the-art facility, home of the University of North Dakota Football, and host to various conventions, exhibitions, meetings and banquets. Since its Grand Opening in February 2001, it has hosted such acts as George Strait, Aerosmith, Cher, Jason Aldean, and the Backstreet Boys. It also houses a regulation NCAA football and soccer field with a convertible turf installed in four (4) hours. Over the past four (4) years, the Alerus Center has had an annual average of 461 events with 195,037 average annual number of attendees.
Available on the Alerus Center website: Production/Promoter’s Guide, Food and Beverage Guide, and Conference Center Guide – provides specific information about services available, facilities, parking, technology, etc.
A. Arena 1) 13,400 seats for football or soccer and 22,000 for entertainment events 2) Suite level containing 14 suites with 16 seats in each and a club lounge capable of a minimum of 40 seats 3) North and South overhead doors capable of bringing in large farm equipment and 18 wheelers for east of load in/out for concerts and vendor shows 4) Capacity of the rigging system is 120k lbs. 5) 21,000 permanent and temporary seating combined capacity for concert events 6) 8 concession areas, 2 vending sites, 14 ticket windows and 4 merchandise stands 7) 15 Public Access Restrooms 8) 2 Public Access Elevators and 1 Freight Elevator 9) 2 Locker Rooms with 95 Lockers in each that double as Dressing Rooms and each locker room is divisible into 4 smaller rooms 10) 1 Sports Medicine Room on Concourse Level
B. Convention Center 1) 160,000 square feet convention and trade show space 2) 30,000 square feet grand ballroom with 22 feet ceilings divisible into 5 individual rooms and 12 meeting rooms ranging in size from 620 to 1330 square feet 3) 20,000 square feet pre-function hallway
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4) Multimedia and audio enhanced features 5) Full banquet setup & service
C. Employees The Alerus Center has approximately 25 full-time employees and 590 part-time employees that are contracted City employees. The City of Grand Forks wants to ensure, as part of any organizational transition, that the Alerus Center employees are reasonably and flexibly considered in any potential agreement.
D. Funding 1) Liquor license and Ticketmaster contract held by an outside firm with one employee onsite as part of liquor license contract 2) Average operating revenues annually for the past 4 years are $6.3M, of which $3M is food and beverage revenue, including the ¼ percent entertainment tax 3) Average operating expenses annually for the past 4 years are $5.9M
The City of Grand Forks passed a ¾ percent Sales Tax in 1996, of which the proceeds were used to finance the acquisition and construction of the Alerus Center, along with related capital. This sales tax is due to sunset in December of 2029.
The City of Grand Forks is also authorized to collect a ¼ percent entertainment tax. This is a sales tax on prepared food and beverage, as well as hotel/motel lodgings that is dedicated to the operations of the Alerus Center. There is no sunset on this tax. This tax brings in approximately $500,00 annually.
E. Greater Grand Forks Convention & Visitors Bureau Partnership The Greater Grand Forks Convention & Visitors Bureau (CVB), a non-profit destination marketing organization funded through hotel/motel lodging tax, enjoy a strong partnership with the Alerus Center. With similar missions of creating economic impact for Greater Grand Forks, the CVB works diligently to attract conventions, events and tournaments to the Alerus Center while also providing a variety of unique complimentary services in an effort to retain customers. The CVB also aggressively promotes Alerus Center concerts and events through advertising, social media, visitgrandforks.com, the Grand Forks App and electronic marketing.
4.0 Objective
The objective of this RFQ is to collect information to assist in determining which arena, convention, and conference facility management company best fits the needs of the City and the Alerus Center, and can maximize the Alerus Center operating and programming potential to benefit its residents and provide the greatest service level and economic impact.
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5.0 Submittal Requirements and Submission Instructions
A. Due Date. Submittals are due March 21, 2017, at 2:00 P.M. Central Standard Time
By USPS submit to: City of Grand Forks, Finance Department, P.O. Box 5200, Grand Forks, ND 58206-5200
By Courier or Hand Delivery submit to: City of Grand Forks, Finance Department, 255 N 4th St, Grand Forks, ND 58203
B. Number of Copies. Submit five (5) copies, and one (1) digital copy of the proposal in a sealed envelope or container.
C. No proposal may be withdrawn for ninety (90) days after submittal.
6.0 RFQ Submittal and Requested Information
This section lists the specific areas that will identify the ability of the management companies to provide the necessary management services to the City and the Alerus Center. Please respond, to the following:
A. Provide a letter of introduction that includes a brief description of your understanding of the project contemplated in the RFQ.
B. Provide a profile of your company and describe the following:
1) Organizational structure and resources 2) Experience with arena and convention/conference properties and in-house or third-party food and beverage service 3) The number and types of facilities operated by your company 4) Financial strength of the company over the last ten (10) years
C. Provide an overview of your company’s philosophy. Please include a brief description of the following items with an emphasis on the overall approach that would be used to manage the Alerus Center:
1) Events booking 2) Customer service 3) Facility and event marketing and media relations 4) Co-promotion and self-promotion of events 5) Facility/equipment maintenance and repair 6) Capital improvement planning 7) Budget Management
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8) Financial performance to include sample financial reports or financial reporting mechanisms 9) Commercial rights (advertising and sponsorship) 10) Recommended subsidy, if any
D. Provide a general assessment of the Grand Forks regional market, the Alerus Center facility, and a strategy for booking, promotions and operations under the Offeror’s leadership.
1) Describe your philosophy and strategy for collaborating with other Grand Forks attractions and entities to provide services and enhance engagement in activities and events while avoiding scheduling conflicts.
E. Provide information on three (3) comparable venues under Offeror’s management, which shall include the following:
1) Location and demographics 2) Venue description and age 3) Prime tenant list 4) Organizational chart including number of employees 5) Number of full-time and part-time employees and payroll costs 6) Event bookings for last completed fiscal year 7) Revenue structure 8) Budget Management 9) Risk arrangement for promotion and co-promotion 10) References 11) Comparative performance outcomes before and after privatization - Bookings - Attendance - Total operating revenue less operating expenses - Size and source of any subsidy - Fees to total expense coverage - Commercial rights sales plans - Results of customer satisfaction surveys
F. Note and explain your firm’s contract retention and renewal rate regarding providing management services. Note and explain your firm’s employee retention rate regarding providing management services.
G. Note and explain any occasion where a contract with your firm to provide management services has been cancelled or not renewed when renewing was an option in the contract in the past five (5) years.
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H. Provide a plan for the transition from the existing management to the new management structure for the Alerus Center. This should start at contract award and proceed through the entire transition period. An estimated timeline for each phase should be included.
I. Provide a general outline for a potential compensation proposal that you would typically use for the services requested. Take into account that the Alerus Center is financed with tax free municipal bonds so all contracts and compensation shall be tax code compliant.
J. Provide a staffing plan for the Alerus Center to include full and part time staffing and the method that would be used to recruit a General Manager to the Alerus Center.
K. Provide any other print material that you feel is appropriate for the Owner to review.
L. A committee of City and Alerus Center officials will review and rank the RFQ written responses of arena, conference, and convention management companies and may request formal interview(s) once the RFQ written review process is complete.
M. Selection will be on the basis of the following general criteria: 1) Past performance and experience on similar arena, conference, and convention management and operations 2) Arena, conference and convention management understanding, issues, and approach 3) Experience and ability of professional personnel 4) Willingness to meet the mission of the Alerus Center 5) Willingness to meet time and budget requirements
7.0 Miscellaneous
A. Public Information. All information, documentation, and other materials submitted in response to this solicitation are considered non-confidential and/or non- proprietary and are subject to public disclosure after the solicitation process is completed.
B. Clarification. The Owners may, in the evaluation of submittals, request clarification from firms regarding their submittals, obtain additional material or literature, and pursue other avenues of research as necessary to ensure that a thorough evaluation is conducted.
C. City Reservation of rights. The Owner may evaluate the submittals based on the anticipated completion of all or any portion of the project. The Owner reserves the right to divide the project into multiple parts to reject any and all submittals and temporarily or permanently abandon the project. The Owner makes no
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representations, written or oral, that they will enter into any form of agreement with any firm submitting to this RFQ for any project and no such representation is intended or should be construed by the issuance of this RFQ.
D. No Reimbursement for Cost. Offeror acknowledges and accepts that any costs incurred from the Offeror’s participation in this RFQ process shall be at the sole risk and responsibility of the Offeror. Offeror’s submit proposals at their own risk and expense.
E. Ethical Conduct. The Owner expects the highest level of ethical conduct from Offeror’s including adherence to all applicable laws and local ordinances regarding ethical behavior.
F. Right to Terminate Negotiations. If an agreement cannot be made with the highest qualified Offeror, the Owner reserves the right to terminate negotiations with that party and enter into negotiations with the next highest qualified Offeror.
G. Presentations. Finalists in the selection process may be asked to attend an interview once the RFQ written review process is complete. The finalists may be asked to confirm their proposal via a presentation to the Owner.
H. Modification. Submittals may be modified by written notice provided that such notice is received prior to the hour and the date specified for receipt of offers.
I. Requests for Explanations by Offerors. Any explanation desired by the Offeror regarding the meaning or interpretation of specifications or any part of this request must be requested in writing not less than seven (7) calendar days prior to due date of proposals. Oral explanations or instructions given prior to the opening of the offer shall not be binding.
J. Requests for individual Offeror’s appointment to meet with the City and the Alerus Center officials, during the RFQ advertising period, should be scheduled with Todd Feland, Grand Forks City Administrator at 1-701-787-3750.
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Alerus Center Event Level
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Alerus Center Suite Level
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