HomeMy WebLinkAboutFCS-17-023 - 44 Gaukel St and 48 Ontario St N
REPORT TO: Committee of the Whole
DATE OF MEETING: 2017-01-30
SUBMITTED BY: Michelle Palmer, Director of Supply Services
519-741-2200 ext. 7214
PREPARED BY: Michelle Palmer, Director of Supply Services
519-741-2200 ext. 7214
WARD(S) INVOLVED: 9 and 10
DATE OF REPORT: 2017-01-24
REPORT NO.: FCS-17-023
st
SUBJECT: Lease of 44 Gaukel Street (1 Floor) and
Sale of 48 Ontario Street North
___________________________________________________________________________
RECOMMENDATION:
That the approach, timeline and evaluation criteria for the request for proposal for
the lease of 44 Gaukel Street (1st Floor) be approved, as outlined in Appendix A
to staff report FCS-17-023
That the approach, timeline and evaluation criteria for the request for proposal for
the Sale of 48 Ontario Street North, be approved, as outlined in Appendix B to
staff report FCS-17-023
BACKGROUND:
Community consultation, locational analysis of various sites and research into best
practices of creative arts hubs was undertaken in 2016. At the December 12, 2016
meeting, Council approved that 44 Gaukel Street be established as the location of the
Creative Hub. This location provides an opportunity for the City to leverage a municipal
asset to strengthen the creative industries as an economic sector, as a way to grow
urban vitality and to spark innovation across other sectors.
In selecting 44 Gaukel Street, Council directed that 48 Ontario Street North be sold with
50% of the proceeds being allocated to the development of the Creative Hub.
Staff will proceed with the next steps in establishing the Creative Hub at 44 Gaukel
st
Street by issuing a request for proposal for the lease of 44 Gaukel Street (1 Floor) to
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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identify an operator of the Creative Hub and also issue a request for proposal for the
sale of 48 Ontario Street North.
REPORT:
The purpose of this report is to seek approval of the key elements of the requests for
proposals (RFP’s) for 44 Gaukel St. and 48 Ontario St. N, being the:
approach;
timeline; and
evaluation criteria
These details are outlined within the two Appendices for Council consideration and
approval.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Arts, culture and the creative industries make important contributions to “Strong and
Resilient Economy” by fostering a business environment that stimulates innovation, and
supporting talent attraction, retention and development. It also supports “Quality of Life”
through creativity, heritage, and diversity. Development goals are also served through
arts and culture, and adding to urban vitality.
FINANCIAL IMPLICATIONS:
The sale of 48 Ontario Street North would generate a one-time source of revenue and
avoid a substantial building renovation expense.
The leasing of 44 Gaukel Street will result in a number of City expenses to replace /
repair building components at their end of lifecycle (e.g., HVAC infrastructure) to
accommodate ongoing use as a Creative Hub. In order to fund such improvements,
50% of the proceeds from the sale of 48 Ontario Street North would be used to offset
these costs. In the event that 48 Ontario Street North is not sold, improvement costs
for 44 Gaukel Street would have to be financed from other sources. There may also be
ongoing substantial costs to repair and maintain 48 Ontario Street North.
Greater detail and certainty will be known once proposals are received for both
properties.
COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in
advance of the council / committee meeting.
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PREVIOUS CONSIDERATION OF THIS MATTER:
CAO-15-037 Kitchener’s new economic development strategy, Make It Kitchener
CAO-16-015 Community Engagement on potential arts hub & potential of 48 Ontario
Street North
CAO-16-025 Community Engagement for Creative Hub- Status Update
CAO-16-034 Creative Hub Options
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and
Corporate Services
ATTACHMENTS
Appendix 1 – Approach, Timeline and Evaluation Criteria for the Lease of 44 Gaukel
st
Street (1 Floor)
Appendix 2 – Approach, Timeline and Evaluation Criteria for the Sale of 48 Ontario
Street North
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Appendix 1 - Approach, Timeline and Evaluation Criteria for the Lease of 44
st
Gaukel Street (1 Floor)
Approach
st
The request for proposal for the Lease of 44 Gaukel Street (1 Floor) will be a two stage
process. The initial stage will utilize evaluation criteria outlined within the document to
shortlist proponents to participate in the second stage (to a maximum of five
proponents). Proponents which participate in Stage 2 will be reimbursed $3500. for
specialized technical assistance related to organizational model development,
architectural program (including any renovation costs), interior design program, and
business model design.
Timeline for Stage 1 and 2
Date Activity
January 30, 2017 Staff report to Council (Committee of the Whole)
with approach, evaluation criteria and timelines
st
February 1, 2017 1 stage RFP is released
February 8, 2017 Site Visit
st
March 20, 2017 1 stage RFP closes
March 20, 2017 - April 17, 2017 Evaluation Committee reviews stage 1
submissions & identifies short-listed proponents
nd
April 19, 20172 stage RFP is released to shortlisted proponents
nd
June 19, 2017 2 stage RFP closes
nd
June 19 - July 10, 2017 Evaluate 2 stage RFP submissions, including
interviews as required
August 21, 2017 Present recommended direction to Caucus for
feedback
August 22 – September 15, 2017 Negotiate with preferred proponent
September 25, 2017 Staff Report to Council
November 1, 2017 Operator takes occupancy
Evaluation Criteria:
The document will outline about the Creative Hub and what the City’s vision is for the
Creative Hub.
Stage 1 Evaluation Criteria
Њ͵ Demonstrated understanding and approach
Examples of business and community development work in the
creative industries, with an emphasis on grass-roots asset-based
development
Experience in facilities management
Ћ͵ Proposed activities and use
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Activities that support the career success of those engaged in the
creative industries by expanding the capacity for entrepreneurship,
creation, networking and collaboration
Focus on career and business development
Activities and use offer a space for artists and creative practitioners
to find solutions, make connections, take risks, share knowledge,
build dialogue, integrate, grow careers and collaborate
Strategies for making the Creative Hub friendly, accessible,
and compelling
Meet some of the expressed space needs, including concept
drawing showing layout:
Shared office spaces
Workshops
Specialized studios (i.e. sound recording, editing suites,
visual art)
Networking event space
Performance and/or rehearsal
Ќ͵ Operational capability
Co-operative and inclusive governance model
Past success in building sectoral capacity
Credibility in the creative sector
Ѝ͵ Revenue to the city
Financial model that recovers CAMs and property tax, at a
minimum
Stage 2 Evaluation Criteria
1. Business plan
Clarity, completeness, and persuasiveness of the written business
plan
The capacity and strength of the management team (experience
and expertise).
The usefulness and quality of the business plan concept (e.g. how
well does the concept match the needs expressed by the creative
community)
Demonstrated demand for the proposed concept
Milestones expressed in the business plan
Plan for mitigating risk factors
The financial and/or social return of the proposed concept
2. Detailed design drawing of the layout
Showcasing some of the expressed space needs:
Shared office spaces
Workshops
Specialized studios (i.e. sound recording, editing suites,
visual art)
Networking event space
Performance and/or rehearsal
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Completeness and accuracy of detailed description of proposed
leasehold renovations if required, including a proposed budget
3. Proposed programming initiatives, including partnerships to achieve the
vision
The credibility and capacity to deliver the Creative Hub vision
demonstrated by collaboration and partnerships with relevant
partners
Activities that support the career success of those engaged in the
creative industries by expanding the capacity for entrepreneurship,
creation, networking and collaboration
Focus on career and business development vs. audience
Activities and use offer a space for artists and creative practitioners
to find solutions, make connections, take risks, share knowledge,
build dialogue, integrate, grow careers and collaborate
Strategies for making the Creative Hub friendly, accessible,
and compelling
4. Rent proposal
The financial and/or social return of the proposed concept to the
City of Kitchener
The evaluation committee will consist of staff from Arts and Creative Industries,
Business Development, Financial Planning, Facilities Management, Supply Services as
well as a representative from a local incubator, and an operator from a creative
industries hub from outside the community.
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Appendix 2 – Approach, Timeline and Evaluation Criteria for P17-025 Sale of 48
Ontario Street North
Approach
The request for proposal for the Sale of 48 Ontario Street North will be a single stage.
Timeline:
Date Activity
January 30, 2017 Staff report to Council (Committee of the Whole) with
approach, evaluation criteria and timelines
February 1, 2017 Issue RFP
February 13, 2017 Site Visit
April 3, 2017 Close RFP
April 3, 2017 - May 1, 2017 Evaluate RFP submissions, including interviews as
required
May 15, 2017 Present recommended direction to Caucus for
feedback
May 16, 2017 – June 16, 2017 Negotiate with preferred proponent
June 26, 2017 Staff Report to Council re: approval to enter into
agreement
TBD Transaction Closes
Evaluation Criteria:
Adherence to Heritage Designation, retaining designated heritage features
Development vision for the property, including but not limited to architectural/
urban design principles, potential employment densities in accordance with the
City’s Urban Design Manual (City Centre District Design Brief) and Planning
Around Rapid Transit Stations (PARTS) Central Master Plan (the City is seeking
a use that will provide increased vitality to the Downtown)
Proposed plan for retaining and enhancing the designated heritage features
Quality of the design/architecture of the proposal, relative to the City's Urban
Design Policies and Guidelines, Planning Around Rapid Transit Stations
(PARTS), Central Master Plan
Financial considerations/proposed purchase price/long term tax value
Amount and acceptability of any conditions identified
Demonstrated ability of the bidder to complete the transaction/past experience on
similar projects
Proposed timing for renovations/occupancy
The evaluation committee will consist of staff from Capital Investment, Business
Development, Legal Services, Planning, Finance Planning and Supply Services.
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