HomeMy WebLinkAboutCAO-13-032 - Boathouse Request for Proposal1 T', R
Staff Report
CAS's Office
REPORT TO: Council
DATE OF MEETING: September 30, 2013
www.kitchenerca
SUBMITTED BY: Rod Regier, Executive Director, Economic Development
PREPARED BY: Rod Regier, Executive Director, Economic Development
519 741 -2200 ext. 7506
WARD(S) INVOLVED: 9
DATE OF REPORT: 24 09 2013
REPORT NO.: CAO -13 -032
SUBJECT: Boathouse Request for Proposal
RECOMMENDATION:
That staff be directed to initiate a two stage Request for Proposals (RFP) process to
recruit a new operator for the Boathouse, the process to include the objectives,
evaluation criteria and timeline included in Report CAO -13 -032.
BACKGROUND:
On September 16, The City of Kitchener terminated the lease for the Victoria Lake Boathouse
and took possession of the building. In a public statement, Council directed staff to move
forward with a Request for Proposals process in order to recruit a new operator for the building.
This report presents a statement of objectives, evaluation criteria, and proposed timeline for this
process.
REPORT:
Request for Proposals Process
On November 2011, Council established that the Boathouse would be used as a cultural venue
for independent music (CAO -11 -022). It directed that the operator of the Boathouse would have
exclusive use of the entire building, as its washroom facilities will no longer be shared as public
washrooms. The City of Kitchener allocated funds to support landlord improvements to the
building envelope, washrooms and accessibility.
The termination of the Boathouse lease received extensive media coverage. As a result, the
City has had numerous inquiries from prospective operators. The level of interest will increase
the time required for proposal evaluation and decision making. The City requires an adequately
detailed proposal to ensure the capabilities of the operator and viability of the proposed
business. In order to streamline the RFP process and reduce the demands of the process on
potential operators and the amount of time required to evaluate fully developed business plans,
it is suggested that the City follow a two stage RFP process.
Stage one would require a description of 1) the proposed use and operation, 2) a statement of
qualifications demonstrating the capacity of the operator in restaurant and bar services and
music promotion, and 3) the financial capabilities of the operator. Of the respondents, three to
five would be selected to submit more detailed proposals in the second stage of the process.
Each of the proponents would have a single opportunity to tour the building on a set date.
Stage two would require a detailed business plan, financial proposal as well as proposed
conceptual design and renovation plan for the facility from each of the short- listed finalists. The
finalists would have more extensive time with the building to more fully develop their plans for
the new facility.
Statement of Objectives
The City of Kitchener is seeking to find a qualified operator for the Boathouse with significant
restaurant and live music experience, who will operate the Boathouse as a live music /cultural
venue and a viable commercial enterprise.
Evaluation Criteria
The City will evaluate the operator proposals in the following manner:
1) Statement of Qualifications = 20 points
2) Availability of Financial Resources = 10 points
3) Proposed Use and Operation = 20 points
4) Proposed Conceptual Design and Renovation Plan = 20 points
5) Revenue model to The City of Kitchener = 20 points
6) Neighborhood compatibility = 10 points
At stage one, proponents will only be evaluated on criteria 1, 2, and 3. Short listed proponents
will be evaluated on all criteria.
Timeline
Staff propose to publish the Request for Proposals within 2 business days of approval from
Council.
October 2, 2013
October 15, 2013
October 18, 2013
October 21, 2013
November 15, 2013
November 22, 2013
December 2, 2013
Stage 1 Request for Proposals circulated
Stage 1 Responses due
Stage 1 Responses evaluated
Short list candidates notified
Stage 2 responses due
Stage 2 responses evaluated
Recommendation to Council
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommended RFP process supports the utilization of the Boathouse as a cultural venue
and a catalyst for the development of Kitchener's music industry as articulated by the Kitchener
Economic Development Strategy — 2011.
FINANCIAL IMPLICATIONS:
The proposed RFP process supports the development of a viable business model for the
Boathouse and will help ensure regular revenues from this City facility.
COMMUNITY ENGAGEMENT:
In 2011 and 2012, the City of Kitchener undertook an extensive public consultation process
about the future of the Boathouse. That process informed the lease negotiation process for the
Boathouse and illustrated the economic development opportunity latent in the local music
industry. As a result, The City of Kitchener initiated Music Works, a facilitated cluster
development process which engaged 150 industry stakeholders and has helped position
Kitchener as a centre for independent music artists, studios and businesses.
This report is made public with the posting of the agenda on the City's website.
ACKNOWLEDGED BY: Jeff Willmer, CAO