Request for Proposals

SOLICITATION# M86-SB 03/04 REQUEST FOR PROPOSALS

FOR THE RENOVATION, OPERATION, AND MAINTENANCE OF AN OUTDOOR CAFÉ IN STUYVESANT SQUARE PARK

MANHATTAN

ISSUE DATE:

MARCH 5, 2004

MICHAEL R. BLOOMBERG MAYOR OF THE CITY OF NEW YORK ADRIAN BENEPE COMMISSIONER OF PARKS & RECREATION JOANNE G. IMOHIOSEN ASSISTANT COMMISSIONER FOR REVENUE WILLIAM T. CASTRO BOROUGH COMMISSIONER FOR MANHATTAN PARKS

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REQUEST FOR PROPOSALS (RFP)

FOR THE RENOVATION, OPERATION, AND MAINTENANCE OF AN OUTDOOR CAFÉ IN STUYVESANT SQUARE PARK, MANHATTAN

Parks is seeking a concessionaire for a nine (9) year term. No longer term will be considered. This concession will be operated pursuant to a license issued by Parks; no leasehold or other proprietary right is offered.

PROJECT MANAGER

The City of New York Parks and Recreation Project Manager for this concession is Slater Gray. All RFP questions and/or inquiries should be directed to her. She may be reached at the Arsenal in Central Park at (212) 360-1397. You may also fax your questions to her at (212) 360-3428 or e-mail her at [email protected].

If you have a hearing impairment, please call the following toll-free number and leave a message on the Telecommunication Device for the Deaf (TDD). The TDD number is 1-800-281-5722.

REQUEST FOR PROPOSALS TIMETABLE

The following schedule has been established for the Request for Proposals for the renovation, operation, and maintenance of an outdoor cafe in Stuyvesant Park, Manhattan.

RFP Release Date: Friday, March 5, 2004

Site Tour: Wednesday, March 24, 2004 @ 11:00 AM

Proposals Due: Thursday, April 22, 2004 @ 3:00 PM

PLEASE NOTE: THIS SCHEDULE IS SUBJECT TO CHANGE AS CIRCUMSTANCES WARRANT.

If you have a physical disability and cannot deliver your proposal to the Arsenal, please contact the Project Manager at least 48 hours prior to the deadline and special arrangements will be made for you.

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PROJECT BACKGROUND

Stuyvesant Square, which is bisected by Second Avenue, is located between 15th and 17th Streets, and is bordered on the west and east by Rutherford and Nathan D. Perlman (originally Livingston) Places, respectively. Like its neighbors Washington Square and Union Square, Stuyvesant Square Park has played a double role throughout New York City history, serving as both a residential park and a public square. Stuyvesant Square Park, which bears the name of early New York (then New Amsterdam) governor Peter Stuyvesant and his descendants, was ceded (some accounts say sold for five dollars) to the City by a descendant of the Stuyvesant family in 1836. The condition of this donation was that the land, which was the only original piece of Governor Stuyvesant’s farm left in 1836, be used as an ornamental public square and meeting place. This original intention seems quite relevant today as the park serves as a break in the line of hospitals and small commercial businesses that line Second Avenue. Several artistic treasures adorn the park, including statues of Peter Stuyvesant by Gertrude Vanderbilt Whitney and of composer Antonin Dvorak by Ivan Mestrovic, the Croatian-American sculptor and pupil of Rodin. The park is also fenced in with a cast-iron fence, the last one of its sort to surround a public park in New York City. The portion of this fence that encloses the west park underwent a restoration in 1988.

City of New York Parks & Recreation requests proposals for the renovation, operation, and maintenance of an outdoor café in Stuyvesant Square Park, Manhattan. The concession area will be in and around the vacant comfort station located in the southwest corner of the part of the park east of Second Avenue. Parks is seeking proposers with a solid background in the restaurant business to design, construct, maintain, and operate a café of the highest caliber, with small restroom facilities available to the public. The food and service provided must be of the highest quality. The café should make a significant improvement to the ambience of the park and the surrounding community while providing a convenient service to the public. The concessionaire may place attractive tables and chairs for use by the public in the open space outside the renovated café. The design of tables and chairs, as well as their exact number and location, will be subject to Parks’ approval.

THE TERM AND REQUIREMENTS

The term for this concession will be nine (9) years. No longer term will be considered. This concession will be operated pursuant to a license issued by Parks; no leasehold or other proprietary right is offered.

There will be an on-site inspection meeting on Wednesday, March 24, 2004 at 11:00 AM. We will meet in front of the vacant comfort station located in the southwest corner of the park, on the side of the park that is east of Second Avenue. If you are considering responding to this RFP, please make every effort to attend this meeting.

CAPITAL IMPROVEMENTS

A. EXISTING CONDITIONS

The café will be housed in the octagonal shaped structure, originally designed for use as a comfort station, located in the southwest corner of the part of the park east of Second Avenue. The original plans of this structure indicate the existence of water, sewer, electric and gas lines. Proposers should verify the condition of these lines to determine if they are suitable for the proposed use. Furthermore, in order to provide exhaust, new kitchen equipment, and air conditioning, proposers must determine if additional power and electrical service is required.

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* Note: All necessary permits and approvals for capital work and design must be obtained from the Department of Buildings. Additionally, all designs and works to be performed on the structure will require prior approval from Parks & Recreation, the New York City Art Commission, the New York City Landmarks Preservation Commission and any other agencies having jurisdiction.

B. CAPITAL IMPROVEMENTS

! The concessionaire must purchase and install new kitchen equipment for the operation of a first class snack bar. ! Plans of the building indicate that utility connections exist. However, the concessionaire will be required to upgrade all utilities so that they are in compliance with City, state, and federal code and are adequate to meet the designed new loads. While the Parks Department acknowledges that the utilities exist, they make no guarantees as to their condition. The concessionaire must also provide meters for these utilities at his/her own cost. ! Currently, the structure houses two separate restroom facilities, within which there are four toilet stalls in the women’s restroom and three toilet stalls and three urinals in the men’s restroom. The renovations to the structure must include one single toilet stall restroom facility, which will be operated and maintained (including regular cleaning) by the concessionaire. The design of this facility must comply with all City, State and Federal laws relating to access for people with disabilities. ! Adequate renovations will also include new floor, wall, and ceiling finishes. ! Replace the glass block window with a service counter and window on the northeast side of the kiosk. The design will be subject to parks, Art Commission and Landmarks review and should be in keeping with the original style and character of the kiosk. ! This new location of the service counter will face what is currently a plot of greenery. Therefore it will be necessary to develop new landscaping and pathways leading to the renovated restroom facilities and the service counter. ! The concessionaire will be required to convert part of this structure into a new storage room with shelving to facilitate cleaning and ensure protection of all dry goods from contamination. ! The concessionaire will be responsible for providing sanitary and storm sewer connections and for the continued maintenance and repair of the roof and gutters as needed. ! Concessionaires should purchase and maintain a suitable number of tables, chairs, and, if necessary, umbrellas to provide for outdoor dining. The design of such objects should add to the overall pleasant ambience provided by the park. The exact number and design of tables, chairs, and umbrellas are subject to Parks’ approval. ! No advertisements are permitted on umbrellas or the park fencing. All signs must be approved by Parks. ! Repoint brickwork as necessary. ! The concessionaire will be responsible for having the premises inspected for the presence of asbestos. Should an inspection turn up the presence of asbestos, the concessionaire will be responsible for its removal. ! All plans should be prepared by licensed architects and or engineers and are subject to Parks’ approval prior to Art Commission, Landmarks, and NYC Department of Buildings approvals. ! Designs must be prepared for Parks, Art Commission, Landmarks, and Department of Buildings approval. Any exterior alterations or repairs will require specific Parks and Landmarks approval and should be detailed with respect towards the original building materials, styles and building methods.

Parks has installed a new roof and will provide maintenance of the roof for the life of the contract.

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All improvements are to be paid for by the concessionaire. Proposers should note that Parks & Recreation will weigh capital investment and design heavily in its evaluation process. In their submissions, proposers should describe all intended capital work and provide cost estimates for this capital work.

Additionally, the successful proposer will be responsible for supplying all necessary personal equipment and maintenance for the successful operation of the facility. These items may be included in your proposal, however they should be listed separately from the capital improvements.

To make an appointment with Parks’ Blueprint/Document Services Center, please contact Steve Rizick, Director of Document Services, at (718) 760-6798.

DESIGN REVIEW FEE

A percentage of the total cost of all capital improvements will be charged to the concessionaire for the review of the design documents by Parks personnel. The fee structure is one percent (1.0%) of the capital investment stipulated in the license agreement. Upon signing the license agreement, the successful proposer will pay the design review fee, which is 1.0% of the capital investment to which the proposer/licensee is committed in the license agreement.

REQUIREMENTS DURING THE TERM OF LICENSE

1. The successful proposer will be responsible for obtaining any and all necessary approvals, permits, and licenses for the construction and lawful operation of this concession.

2. The concessionaire will be required to submit a sketch or rendering of the interior of the café, including dimensions, pictures of the tables, chairs (and umbrellas, if appropriate) to be placed outside the café, as well as a statement of anticipated capital investment. All plans for the interior of the café are subject to Parks’ approval. The exact location and number of chairs will be subject to Parks’ approval. Embellishments to the facade of the structure will not be permitted.

3. The concessionaire will be required to retain a professional engineer or registered architect for design and filings of proposed capital work and to oversee the entire construction project. This supervising architect or engineer will be responsible for ensuring that all construction conforms to the plans approved by Parks’ Design Division. Proposers must submit the qualifications of this engineer or architect to Parks for approval.

4. The concessionaire must provide Parks with as-built drawings upon completion of the construction or renovation project.

5. A construction security deposit, in an amount and format approved by Parks & Recreation, will be held to ensure that all renovation work is completed. This security deposit must be in place before any construction or renovation commences.

6. The concessionaire will not be permitted to cut down or remove any trees on the permitted premises without prior written approval from Parks. Any attachments to the trees, such as lights, will not be permitted.

7. The concessionaire will remove all rubbish generated by the café, according to a plan approved by Parks. The concessionaire will be responsible for cleaning the licensed premises and the area within Request for Proposals Stuyvesant Square Outdoor Cafe Page 5

50 feet of the licensed premises, including the additional seating areas. In the seating area, the concessionaire will provide garbage cans approved by Parks and will be responsible for the daily emptying of the cans by a private carter. In addition, the concessionaire must keep all signs and structures free of graffiti. The concessionaire must comply with all City, state, and federal regulations regarding recycling. Proposers should submit a detailed plan for removal of rubbish generated by the concession. Additionally, the concessionaire will be obligated to maintain a regular cleaning schedule, which should also include the restroom facilities, to be described in the proposal.

8. The seating must be arranged so as not to inhibit pedestrian traffic around the area.

9. The concessionaire will be responsible for all utility costs connected with the operation of this concession. This may include but is not limited to installing all necessary utilities, service lines, conduits, water meters, pipes, etc. The concessionaire will be required to remove any unsuitable existing materials as required. Parks & Recreation makes no representations as to the condition of the utilities in place at the site.

10. The concessionaire will supply all equipment and materials necessary for the construction and operation of the café. Upon completion of construction, the café and all fixed equipment become the property of Parks upon installation, at Parks' option. Should Parks choose not to exercise this option, it will be the responsibility of the concessionaire to remove fixed equipment and return the licensed premises to Parks in a condition as good as or better than its condition at the commencement of the license term.

11. The concessionaire will be responsible for maintaining security within the licensed premises and the immediate surrounding area. Responsibilities include securing the café, chairs, tables, and any other equipment every evening. It will be the concessionaire's responsibility to provide storage for equipment when the café is not operating.

12. The concessionaire must comply with all City, state and federal laws relating to access for people with disabilities.

13. The concessionaire's staff will be required to wear uniforms approved by Parks.

14. The selling and/or advertisement of cigarettes, cigars, or any other tobacco products is strictly prohibited. It is the concessionaire's responsibility to adhere to and enforce this policy.

15. Proposers should submit their menus, price lists, and hours of operation. All prices, menu items, and hours of operation are subject to Parks’ approval.

16. Pursuant to Parks’ policy citywide, the concessionaire will not be permitted to sell any beverages in glass bottles. All beverages sold should be in non-glass, shatterproof containers. Also, the use of polystyrene packaging or food containers will be prohibited in the operation of the café.

17. A security deposit of at least 25% of the highest year's guaranteed minimum license fee must be posted before or upon signing.

18. The concessionaire will be required to carry at least $500,000.00 in general/personal liability insurance coverage with a food and beverage rider and $500,000.00 in property damage liability and replacement value in fire and casualty coverage with the NYC Parks & Recreation named as Additional Insured. Request for Proposals Stuyvesant Square Outdoor Cafe Page 6

19. The concessionaire will submit monthly reports of gross receipts, in a format approved by Parks, broken down into categories of income. At the end of each operating year, the concessionaire will be required to submit a detailed income and expense statement for the past year’s operation.

20. The concessionaire must pay all taxes applicable to the operation of the concession. With the exception of the Combined State and New York City Sales Tax on Food, no such applicable taxes, including but not limited to the Commercial Rent Tax, may be deducted from gross receipts or from license fees.

21. Proposers should be aware that the City is developing “marketing partnership” agreements identifying specific brands as the “designate” products of the City of New York. As this occurs, the concessionaire will be required to sell the specific products so identified if the concessionaire sells good in that product category. If directed by the City, the concessionaire will be required to purchase the products from designated distributors, provided the said distributors provide the products at a competitive price. The concessionaire, working with the City’s marketing representative, may be required to give the City’s marketing representative priority in the placement and scheduling of advertising. Marketing partners will be required to pay the market rate for any such advertising.

THE REQUEST FOR PROPOSALS PROCESS/PROPOSAL PROCEDURE

A. PROPOSAL SUBMISSION INSTRUCTIONS

All proposals must meet the requirements listed below in the “Proposal Submission Requirements” section, and should comply with the guidelines listed in the “Proposal Submission Guidelines” section.

Proposals should be printed or typed on 8 ½” x 11" paper. There is no page limit for proposals. The proposal submission and the proposal deposit should be submitted in a sealed envelope with the following information written on the outside:

• Your name and address • Solicitation # M86-SB 03/04 • Stuyvesant Square Outdoor Café, Manhattan • Return Date: Monday, Thursday, April 22, 2004 @ 3:00 PM

No proposals should be submitted in plastic sleeves or spiral binders. Illustrations may be included. All plans are subject to Parks’ approval. Oversized drawings may be submitted, but must be accompanied by 8 ½ “ x 11" sectionals or reductions to 8 ½“ x 11". No telegraphic or facsimile proposals will be accepted.

B. PROPOSAL SUBMISSION REQUIREMENTS

Each proposal submitted must meet the following requirements. Failure to comply will result in the automatic disqualification of a submission from further consideration.

1. All proposers must submit a proposal that includes a fee offer.

2. All proposers are required to submit as a proposal deposit a certified check, official bank check, or cashier’s check in the amount of $5,000.00 with the proposal (payable to NYC Parks & Request for Proposals Stuyvesant Square Outdoor Cafe Page 7

Recreation). The check will be retained as liquidated damages in the event the proposer fails to enter into an agreement with Parks. Proposal deposits will be returned to unsuccessful proposers after the contract is signed with the successful proposer.

3. All proposals should be submitted in a sealed envelope to the Assistant Commissioner for Revenue, City of New York Parks & Recreation, The Arsenal, Room 407, Central Park, New York, New York 10021, Thursday, April 22, 2004 @ 3:00 PM. No proposals will be accepted after that time. Hand delivery to Room 407 before the deadline is recommended to ensure consideration of your proposals.

C. PROPOSAL SUBMISSION GUIDELINES

1. Proposals should include all of the required information and a fee offer. The fee offer should state the highest sum each proposer is prepared to pay as a license fee, expressed as guaranteed annual minimum fee versus a percentage of gross receipts, whichever is greater. The City strongly urges that there be an escalation of at least five percent (5%) per year (compounded annually) in the guaranteed minimum fee over the license term.

2. Proposals should include completed copies of Parks’ business questionnaires and two (2) VENDEX questionnaires (Business Entity and Principal Questionnaires), which can be obtained through the Revenue office.

3. All proposals should be submitted on one side only of 8 ½ x 11 paper. No proposals should be submitted in plastic sleeves or spiral binders. Oversized drawings may be submitted but must be accompanied by sectionals and/or reductions to 8 ½ x 11. Please submit four (4) copies of your proposal.

4. The proposal should include a resume or detailed description of the proposer's professional qualifications, demonstrating extensive experience in the industry, including work with City agencies, or access to individuals and/or firms with such expertise. Include the names and addresses of all corporate officers of the entity submitting the proposal.

5. Proposers should submit a detailed timetable describing all design and capital work. This timetable should clearly outline all intended improvements, the projected cost of these improvements, and the anticipated commencement and completion dates of these improvements. Please do not exaggerate intended capital investment. In the successful proposer’s license agreement, the cost estimates provided in the proposal submission will become a minimum required expenditure, and the time frame proposed will become a required construction schedule. Therefore, please be realistic or even conservative in the capital investment you offer.

6. Proposers should submit designs showing the proposed interior of the café, tables, chairs, plantings, decor, etc. All final designs of the successful proposers must be approved by Parks and other pertinent agencies before construction can commence.

7. Proposers should submit a detailed operational plan for the facility, including but not limited to hours of operation, proposed menu, and prices. All prices, menu items, and hours of operation are subject to Parks’ approval.

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8. Proposers should include a detailed, well thought out pro-forma income and expense projection for each year of operation. This pro-forma projection should include explanations for all the assumptions used in its formulation.

9. Proposers should include a financial statement or statements prepared in accordance with standard accounting procedures.

10. Proposers should submit an estimated number of full-time and seasonal employees respectively, the positions these employees will fill, and the percentage of these employees that they expect to hire from the surrounding community. Parks will view favorably proposals that will employ members of the surrounding community.

11. Parks & Recreation is charged with improving customer satisfaction with the services provided at facilities on parkland. Therefore, Parks would like proposers to explain in their submissions the mechanisms they would use to measure customer satisfaction with the services offered by this concession. Such mechanisms might include customer evaluations or survey forms. Further, Parks & Recreation would like proposers to explain how they would improve the quality of services offered if the above mechanisms indicate a need to do so.

D. EVALUATION AND SELECTION PROCEDURES

Proposals will be evaluated by a selection committee composed of Parks & Recreation employees, in accordance with procedures established by the Franchise and Concession Review Committee, based on the criteria listed below. The concession will be awarded to the proposer whose submission the selection committee judges best overall based on these criteria.

1. PROPOSAL EVALUATION CRITERIA

In evaluating proposals, Parks & Recreation will use the following criteria:

! Fee offer ! Operating experience in the field, including experience as a City concessionaire, if applicable ! Proposed capital investment and designs submitted ! Menu quality, variety, and affordability ! Financial capability

2. EVALUATION PROCEDURES

Parks & Recreation will only consider proposals that meet satisfactory levels of the above criteria. The City is not required to accept the proposal that includes the highest fee offer. Parks’ acceptance of a proposal does not imply that every element of that proposal has been accepted.

Parks & Recreation cannot consider any proposal that does not comply with the Submission Requirements’ section of this RFP. Proposals that do not meet these requirements will not be evaluated.

When feasible, employees of Parks & Recreation will visit facilities operated by proposers.

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E. OTHER GENERAL RFP REQUIREMENTS AND CONDITIONS

NYC Parks & Recreation reserves the right to postpone or cancel this RFP or reject all proposals, if in its judgement it deems it to be in the best interest of the City of New York to do so.

Proposers are advised that Parks & Recreation has the option of selecting the proposer without conducting negotiations. Therefore, proposers should submit their best proposals initially, since negotiations may not take place.

All Requests for Proposals submission materials become the property of the City of New York and Parks & Recreation. Proposal submission material will generally be made available for inspection and copying by interested parties upon written request, except when exempted from disclosure under the New York State Freedom of Information Law.

NYC Parks & Recreation is subject to the New York State Freedom of Information Law, which governs the process for the public disclosure of certain records maintained by Parks. (See Public Officers Law, Sections 87 and 89.) Individuals or firms that submit proposals to Parks may request that Parks except all or part of such a proposal from public disclosure, on the grounds that the proposal contains trade secrets, proprietary information, or that the information, if disclosed, would cause substantial injury to the competitive position of the individual or firm submitting the information. Such exception may extend to information contained in the request itself, if public disclosure would defeat the purpose for which the exception is sought. The request for such an exception must be in writing and state, in detail, the specific reasons for the requested exception. It must also specify the proposal or portions thereof for which the exception is requested.

If Parks grants the request for exception from disclosure, Parks shall keep such proposal or portions thereof in secure facilities.

NYC Parks & Recreation shall not be liable for any costs incurred by proposers in the preparation of proposals or for any work performed in connection therein.

Proposers should be aware that this concession will be developed and operated pursuant to a license agreement issued by Parks. In the event this agreement is terminated, Parks will not consider proposals for reimbursement of licensee's unamortized capital improvement costs as of the date of termination.

A proposer may submit a modified proposal to replace all or any portion of a proposal submitted up until the proposal submission deadline. The Project Manager will only consider the latest version of the proposal. Late proposals and late modifications will not be considered for evaluation. Proposers may withdraw their proposals from consideration at any time before the proposal deadline. To withdraw a proposal, the proposer must provide Parks with written notification.

Technical addenda issued by NYC Parks & Recreation will be the only authorized method for communicating clarificatory information to all potential proposers. Proposers should contact the agency before submitting a proposal to verify that they have received any addenda issued. Proposers should acknowledge the receipt of any addenda in their proposal submissions.

The Office of the Comptroller of the City of New York is charged with the audit of concession agreements. Any person or entity that believes that there has been unfairness, favoritism or impropriety in the proposal process should inform the Comptroller’s Office of Contract Administration, 1 Centre Street, Room 835, New York, New York 10007. This office may be reached at (212) 669-2323.

Adrian Benepe, Commissioner