HomeMy WebLinkAbout17- Task Order 4 - Leland Consulting Group - Hotel Conference Center Feasibility Study Task Order Number 04
Issued under the authority of Professional Services Agreement with Leland Consulting Group for
Economic Development and Corridor Revitalization Services in the Bozeman Midtown Urban
Renewal District dated September 19, 2016 ("Agreement").
This Task Order is dated December 15, 2017 between City of Bozeman (City) and Leland
Consulting Group (Contractor). The parties agree as follows:
The following representatives have been designated for the work performed under this Task
Order:
City: David Fine
Contractor: Alisa Pyszka, Leland Consulting Group
SCOPE OF WORK:
Contractor agrees to perform the work for Task Order No. 4 (the "Work") as detailed in the
attached Bozeman Midtown Scope of Work— Task Order No. 4 which is the hotel conference
center feasibility study incorporated herein and made a part of the Agreement by this
reference.
COMPENSATION:
Leland Consulting Group's total billing for the scope of services included with this task order is
not to exceed $23,000. Leland Consulting Group shall submit invoices to the Client for work
completed during the prior calendar month. Invoices will be due and payable 30 days after
receipt of the invoice by the City.
The provisions of the Agreement shall govern the Work.
IN WITNESS WHEREOF, the parties authorized to commit resources of the parties have
executed this Task Order:
City of Bozeman Contractor
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Midtown Task Order Number 04 1
Bozeman Midtown Scope of Work—Task Order No. 4
Hotel Conference Center Feasibility Study
HVS will prepare a hotel conference center feasibility study for the Midtown Urban Renewal area. Three
areas are under consideration: 7th and Baxter, 11th and Tschache, Main and 7th.All areas are within the
Midtown TIF district and the City is interested in determining feasibility and possible public private
partnership opportunities for development of a hotel conference center in Bozeman.
Background:
It was determined in the 2013 study that a stand-alone conference center is not financially feasible.
Therefore,the city would like to understand if a public-private partnership with a hotelier is feasible.
The City wants to determine the appropriate level of public involvement that may be needed for the
project to succeed, if any.The City of Bozeman is requesting analysis of the hotel conference center,
including a market assessment, program recommendations, site analysis financial proforma statement,
and financing options.The outcome of this study will be summarized in a report that will serve as a
necessary foundation for solicitation of developers for a hotel convention center within the Midtown
District.The intended use of this independent feasibility study is for planning purposes and use by the
City.
Study Elements: HVS will prepare a report that studies the three above sites. The final report is
indented to be a stand-alone document that can be utilized to solicit developers if it is determined such
a project is viable. Certain types of hotels are necessary to support a conference center. Therefore, the
study will evaluate a holistic hotel and conference center project at one type as the subject of the study.
HVS will approach the study development through the completion of the following tasks.
1 Project Orientation and Fieldwork
2 Market Assessment
3 Conference Center Event Demand and Room Night Projections
4 Hotel Supply and Demand Analysis
5 Building Program Recommendations
6 Site Analysis
7 Occupancy and ADR Estimates
8 Financial Projections and Feasibility
9 Financing Strategies
10 Reporting
Leland will coordination with HVS to provide background documents and information, review of study,
and coordination with other city policies and investments. HVS assumes that the Chamber and City
stakeholders will provide the logistics, communication, and meeting arrangements with key
stakeholders to facilitate the background research.
Midtown Task Order Number 04 Scope of Work 1
Study Parameters:
The study will pertain to three areas within the Midtown Urban Renewal area: 7th and Baxter, 11th and
Tschache, Main and 7th, as generally identified below.
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Assumptions: Work complete within eight weeks of signing contract and HVS receives$10,000 retainer.
Budget:
Task Provided By Budget
Hotel Conference Center Feasibility Study HVS $20,000.00
Project Management Leland Consulting Group $3,000.00
Midtown Task Order Number 04 Scope of Work 2