Working Committee on Downtown Hotel
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Working Committee on Downtown Hotel Solutions and Mixed Use Options-Phase II (Alexandria Convention Assets) NOTICE OF REQUEST FOR PROPOSALS AND OF DEADLINES FOR LETTERS OF INTENT, AND SUBMISSION OF RESPONSES Section 1.0 Introduction: The City of Alexandria (“Alexandria” or “the City”) is currently seeking proposals from qualified professionals relative to the Request for Proposals: Downtown Hotels Initiative-Alexandria Convention Assets (“DHI-ACA”). The DHI-ACA requests qualified proposals relative to the management and operation of downtown convention spaces (with the potential for another large entertainment and concert venue, known as the Rapides Parish Coliseum (“Coliseum”) (all sometimes referred to herein collectively as “Facilities”). Interested applicants should have prior experience and expertise in the marketing and management of similar-sized facilities, including experience in managing food service, convention business, cost-effective rehabilitation, preventive maintenance, customer service, quality control, employee training, marketing, interior design, and development. These Facilities involve public and private spaces. Accordingly, agreements with private sector partners will be required. However, each of the necessary public and private stakeholders relative to the Facilities has expressed willingness to negotiate. (The italicized properties are owned and operated by the City of Alexandria.) The properties potentially in place for management, at minimum, include the Alexandria Riverfront Center, but may include: • Alexandria Convention Hall • Hotel Bentley Meeting Space • Space within the Alexander Fulton Hotel and Convention Center1 1 Currently, this property is owned by Alexandria, but is the subject of a long-term lease and purchase agreement removing it from the control and, eventually, ownership of Alexandria. July 3, 2012 Working Committee on Downtown Hotel Solutions and Mixed Use Options-Phase II (Alexandria Convention Assets) NOTICE OF REQUEST FOR PROPOSALS AND OF DEADLINES FOR LETTERS OF INTENT, AND SUBMISSION OF RESPONSES July 3, 2012 Page 2 City of Alexandria-S.P.A.R.C.-CRA-1 Working Committee on Downtown Hotel Solutions and Mixed Use Options-Phase II NOTICE OF REQUEST FOR PROPOSALS AND OF DEADLINES FOR LETTERS OF INTENT, AND SUBMISSION OF RESPONSES PLAN OF ACTION FOR COOPERATIVE DEVELOPMENT • The Rapides Parish Coliseum and Exhibition Hall.2 Request for Proposals for The Downtown Hotels Initiative: Plan of Action for Mixed Use Options-Phase II (Alexandria Convention Assets) Issue Date: July 3, 2012 Letter of Intent: August 3, 2012 Due Date: September 7, 2012 Contact: Kay Michiels, Chief of Operations, Office of the Mayor [email protected], (318) 449-5002 1.1 Background: In order to appreciate the scale of the needs at the Alexandria Riverfront Center, it is necessary to discuss surrounding properties and their state of repair. The Hotel Bentley The Hotel Bentley, located in downtown Alexandria, Louisiana, was built circa 1908 by Joseph A. Bentley. It was operated from 1908 to 1967, and then closed from 1968 until 1972. It opened again in 1972 and closed again in 1976. It re-opened in 1985 and closed in 1997, and reopened in 1998 only to close again in December of 2003. It has remained closed since then.3 The Hotel Bentley has been the subject of significant debate as to its fit in the downtown landscape, with reinvestment initiatives posed by the City of Alexandria, and with an eye toward highest and best use as a hotel-only property or other anchor to the downtown area in a mixed-purpose model. The data seems to support the latter at this time. 2 The Rapides Parish Coliseum and Exhibition Hall is owned by the parochial governing authority—the Rapides Parish Police Jury (“RPPJ”)—and managed by a local governing board, the Rapides Parish Coliseum Authority (“Authority”). The Board is a political subdivision of parish government, the latter of which may appoint and remove members to the Authority, modify the Authority’s Scope, or rescind the Authority. 3 The Hotel Bentley is the subject of active development activity in a mixed-use boutique hotel model. In this scenario, a ninety (90) room boutique hotel would anchor a multi-use development in the historic property— including condominiums, leased office space, perhaps separately marketed convention space (per this RFP), and other retail or tourism uses. The long term planning may involve co-location of historic features related to WWII. July 3, 2012 Page 3 City of Alexandria-S.P.A.R.C.-CRA-1 Working Committee on Downtown Hotel Solutions and Mixed Use Options-Phase II NOTICE OF REQUEST FOR PROPOSALS AND OF DEADLINES FOR LETTERS OF INTENT, AND SUBMISSION OF RESPONSES PLAN OF ACTION FOR COOPERATIVE DEVELOPMENT The 178-room Hotel Bentley located in the heart of downtown Alexandria encompasses a city block bounded by Jackson Street, Third Street, DeSoto Street and Main Street. It is located directly across from the Alexandria City Hall and the Alexander Fulton Hotel and Convention Center (“Alexander Fulton”). Like the Alexander Fulton immediately adjacent to the subject facility, the Hotel Bentley is connected to the Alexandria Riverfront Center (“ARC”) via skywalk over Jackson Street. The Hotel Bentley is presently owned by Dean Bentley, LLC of Baton Rouge, Louisiana. It is actively marketed at this time for sale. The City of Alexandria has promoted discussion of mixed use for the Hotel Bentley, recognizing that with the desire of mixed-use opportunity come the unintended challenges of addressing occupancy rate and ADR assessments. Mixed use might involve retail, condos, public anchoring, gathering places, restaurants, and boutique hotel, all working together with several long-term public tenants appropriate to the historic fabric present.4 Again, the hotel was built in 1908 and closed since 2004 with the last major renovation likely to have occurred in 1998. In order to bolster operations, address deferred maintenance, make needed capital improvements, and plan and build additional (required) renovations, any party would be required to make some immediate and substantial investments in the property.5 The property has been listed on the National Register of Historic Places. The Hotel has 15,000 square feet of meeting facilities on-site with access to the ARC and Alexandria Convention Hall, located inside the Alexandria City Hall. The Hotel Bentley is located at the center of Louisiana, which is an ideal transportation hub with excellent interstate, river, rail, and air cargo. The property is conveniently situated near I-49, one of Louisiana’s primary North/South corridors. This proximity allows a significant amount of tourist/transient business from the freeway. The property is situated 8.4 miles from the Alexandria International Airport (AEX). 4 The City has also determined applicants must demonstrate better than a mere possibility of success for the business model before serious incentives can be considered. The Administration determined a substantial probability of success justifies incentives. “Substantial probability” means the business plan is considerably more than likely to succeed. While no venture can be certain in the private world, the risk of public dollars, given the historical backdrop and current economic crises, requires a higher standard to begin serious and binding discussion. 5 Because of the substantial nature of private investment required regarding the Hotel Bentley and the risk involved with public aid, the City of Alexandria sought to address the Hotel Bentley only if it was done in conjunction with other City development at the Alexander Fulton. This policy from the City’s standpoint would continue with any mixed use purposes relative to the Hotel Bentley. July 3, 2012 Page 4 City of Alexandria-S.P.A.R.C.-CRA-1 Working Committee on Downtown Hotel Solutions and Mixed Use Options-Phase II NOTICE OF REQUEST FOR PROPOSALS AND OF DEADLINES FOR LETTERS OF INTENT, AND SUBMISSION OF RESPONSES PLAN OF ACTION FOR COOPERATIVE DEVELOPMENT The Hotel Bentley is the most prominent historic landmark in the Central Louisiana region. The property had historically generated a large share of its occupancy from state and regional conventions as well as the tour and travel market, offering meeting space as well as an upscale restaurant and lounge. The Rapides Parish Coliseum and Exhibition Hall The Rapides Parish Coliseum was constructed in 1965. Since its opening, the Coliseum has been a venue for sports, including the Top 20 High School Basketball Tournament, numerous rodeos, in addition to hosting a number of music concerts, “monster” truck shows, professional wrestling, trade shows and sporting events. Some of the site’s famous performances include Elvis Presley (1977), the Rev. Martin Luther King Jr. (1966), Ronald Reagan (1975), and Britney Spears (2002). Located 4.5 miles from the Alexandria International Airport, the multi-use, dome-topped, Coliseum is owned by the Rapides Parish Police Jury and features seating for 7,000 people with on-site parking for nearly 2,000 vehicles. Additional facilities include a 20,000-square- foot exhibition hall, 46,000 square-foot Lewis-Odom Agricultural Complex, meeting and dressing rooms, scoreboard, full-service commercial kitchen, at-grade loading docks, security, and sound room. The Alexander Fulton Hotel and Convention Center The Alexander Fulton Hotel and Convention Center first opened in 1985 as Alexandria Hilton Inn. Alexandria partnered with a private developer to assist with construction