HomeMy WebLinkAboutCarnegie Parcels Request for Proposals (RFP)1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Brit Fontenot, Director of Economic Development and Community
Relations
Chris Kukulski, City Manager
SUBJECT: Carnegie Parcels Request for Proposals (RFP)
MEETING DATE: January 23, 2012
AGENDA ITEM TYPE: Action
RECOMMENDATION: Delay publishing the RFP and discuss an alternative (or
alternatives) to the current process and direct staff to return to the City Commission in
approximately 30 days to seek approval of a revised process.
BACKGROUND: During the last month staff has had discussions with various hotel industry
professionals and others interested in the sale of the Carnegie parcels and development of a
downtown hotel. Based on these discussions, staff recommends the Bozeman City Commission
(Commission) reconsider the current RFP approach for developing a hotel on the Carnegie
parcels. This memorandum summarizes the history of the process and concludes with a brief
framework for your discussion on alternative approaches.
On April 15, 2011 the City of Bozeman received a Letter of Intent (LOI) from CATELLUS
GROUP LLC (CATELLUS) for the purchase of the Carnegie parcels in downtown Bozeman for
the purpose of exploring the feasibility of constructing a hotel with ancillary services.
The Carnegie parcels are located on the corner of North Black and East Mendenhall at 106 East
Mendenhall. The lot contains 71 parking spaces. The Carnegie parcels are located directly east,
across North Black Avenue, from Bozeman’s five-story (including the basement level), 435
space parking structure, Bridger Park Downtown. The Carnegie parcels were purchased by the
City of Bozeman in 1976.
On May 2, 2011 the Commission voted 5 – 0 to acknowledge the receipt of the CATELLUS LOI
and authorized the City Manager to sign the document and order an appraisal “only if a future
determination is made by the City that the Carnegie parking lot is no longer necessary for the
conduct of city business.”
Packet material from the May 2, 2011, Carnegie parcels public hearing can be found here:
http://weblink.bozeman.net/WebLink8/0/doc/44680/Electronic.aspx
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Approved minutes from the May 2, 2011 Carnegie parcels public hearing can be found here:
http://weblink.bozeman.net/WebLink8/0/doc/45098/Page1.aspx
On May 9, 2011, City staff conducted a public forum and information and listening session in
the Commission meeting room with businesses and property owners surrounding the Carnegie
parcels. Approximately 25 – 30 business and property owners, staff and elected officials
participated in the discussion.
The majority of property and business owners present at the meeting expressed concern that
disposing of the subject property may negatively impact their business due to the proposed
displacement of public parking on the Carnegie parcels. There was some support for the sale of
the Carnegie parcels for a higher and better use than that of a surface parking lot and still other
attendees expressed a great deal of interest but had no recommendation at that time.
On May 11, 2011, the Bozeman Parking Commission met in its regularly scheduled monthly
meeting wherein the Parking Commission found by a vote of 5 – 1 (with one recusal) that there
is a higher and better economic use and a greater benefit to the downtown area for the Carnegie
parcel than surface parking due to the amount of available parking in the vicinity of this lot,
particularly at the Bridger Park Downtown, which currently has the capacity to replace removal
of the Carnegie lot spaces. Accordingly, the Parking Commission found the Carnegie parcel is
not needed to provide public parking.
On June 13, 2011, the Commission conducted a public hearing to determine whether real
property owned by the City located at 106 East Mendenhall Street, known as the Carnegie
parcels, is necessary for the conduct of City business or the preservation of its property and
provided direction to staff. By a 5 – 0 vote the Commission determined: 1) the real property
known as the Carnegie parking lot (lots 17A, 18, 19, 20, 21, and 22 of Block E of the Original
Town-site of Bozeman, Montana) located at 106 East Mendenhall is no longer necessary for the
conduct of City business or the preservation of City property and that sale and development of
the real property by a private entity, in compliance with adopted City plans, is in the public
interest; 2) that any motion made by the Commission on May 2, 2011 regarding this property or
the proposed sale of is superseded in its entirety by this motion; and 3) directed staff to proceed
with a request for proposals process that could authorize the sale of the Carnegie parking lot to
the entity whose proposal satisfies all legal requirements for the sale of City real property and
whose development proposal the Commission determines best fulfills the objectives of the City’s
2020 Community Plan (https://www.bozeman.net/Smarty/files/e6/e6a049b8-fad5-4886-b7f5-
3ebfbd2f4556.pdf), its Economic Development Plan
(https://www.bozeman.net/Smarty/files/f2/f2217bae-9beb-4068-8209-7b649b328453.pdf)
and the Downtown Improvement Plan
(http://www.downtownbozeman.org/downloads/DBIP%20Final%2012-14-09%20SM.pdf).
Packet material from the June 13, 2011, Carnegie parcels public hearing can be found here:
http://weblink.bozeman.net/WebLink8/0/doc/44914/Electronic.aspx
Approved minutes from the June 13, 2011 Carnegie parcels public hearing can be found here:
http://weblink.bozeman.net/WebLink8/0/doc/45287/Page1.aspx
With Commission direction, utilizing both internal and external resources, parking, legal,
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planning and economic development staff prepared the draft RFP for Commission review. Other
internal reviews include those by finance and administration. Additionally, external, private
sector, review of the RFP was solicited and comments received and incorporated into the draft.
On September 26, 2011, the Commission provided comment and direction on the content of the
draft Carnegie parcels RFP for the construction of a full-service hotel with meeting facilities in
downtown Bozeman, Montana, on the Carnegie parcels. The Commission directed staff to leave
the date of publication open for Commission discussion and decision at the October 24, 2011
public hearing. Staff incorporated the changes into the Draft 2 of the RFP as directed with a
public release date to be determined by the Commission. The approved RFP is included as
Attachment 1 in this packet material.
Packet material from the September 26, 2011, Carnegie parcels public hearing can be found
here:
http://weblink.bozeman.net/WebLink8/0/doc/45855/Electronic.aspx
Approved minutes from the September 26, 2011 Carnegie parcels public hearing can be found
here:
http://weblink.bozeman.net/WebLink8/0/doc/46649/Page1.aspx
On October 24, 2011, in a unanimous 5 – 0 decision, the Commission directed staff to postpone
the release of the Carnegie RFP until January, 2012. The Commission set a hearing date of
January 23, 2012 for staff to return to the Commission to discuss the final release of the
approved Carnegie parcels RFP.
Packet material from the October 24, 2011, Carnegie parcels public hearing can be found here:
http://weblink.bozeman.net/WebLink8/0/doc/46163/Electronic.aspx
Approved minutes from the October 24, 2011 Carnegie parcels public hearing can be found
here:
http://weblink.bozeman.net/WebLink8/0/doc/46672/Page1.aspx
On December 7, 2011 CATELLUS requested that they be removed from consideration for the
purchase of the Carnegie parcels and future development of a downtown hotel project.
During the week of January 2, 2012, City staff conducted discussions with hotel industry
development professionals who independently expressed concerns with the release of the RFP as
drafted citing the primary issue with the RFP is the expense of the initial investment necessary to
create an acceptable and appropriate response to the RFP. The up-front cost seems
disproportionately high when viewed against the odds of being chosen as the preferred project
proposal.
These professionals suggested the net result of pursuing the current strategy of the RFP release
as drafted, and associated up-front investment to the Respondent, may be a total lack of
responses at the conclusion of the 90-day response period. A lack of responses to the Carnegie
parcels RFP may cause credibility issues with the process that may reflect poorly on City. Based
on this information, we propose re-working the process to reduce up-front costs for Respondents
without undermining the spirit of the original RFP. One option includes adding an RFQ stage
and a process to provide more personalized attention to those who may respond in order to
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communicate community desires, assess Respondent capabilities and research past projects while
setting and understanding the expectations from both the City and Respondents.
If an alternative approach is approved, work put into the existing RFP is neither lost or nor
undermined by altering the process. The RFP as drafted and approved will constitute the
majority of the information requested from respondents, albeit in a later phase of the process.
Identified in both the Downtown Bozeman Improvement Plan and the Commission’s 2011 –
2012 adopted work plan, the development of a downtown hotel is one of the highest community
priorities. Ensuring that the process facilitates an outcome with the highest probability of
success is the rationale for suggesting alternatives to the originally proposed RFP process. Given
the complexities public property sale transactions and the planning process for the construction
of a downtown hotel, staff does not believe that the requested delay will have an overall negative
impact on a downtown hotel project.
On January 11, 2012 at the regularly scheduled Parking Commission meeting, staff discussed
the information provided in this memo and excerpts from discussions with private sector industry
professionals and received a consensus from Parking Commissioners present that the
recommended delay and process reconsideration is a reasonable accommodation under the
circumstances if the modifications increase the odds of success in the desire to construct a
downtown hotel.
Since the October 24, 2011 public hearing, one public comment has been received on this issue
and is included as Attachment 2 in this packet material.
UNRESOLVED ISSUES:
The unresolved issue is the process used to achieve the desired result of constructing a hotel in
downtown Bozeman. Staff has provided several process alternatives below.
ALTERNATIVE APPROACHES:
1. Release the approved downtown hotel RFP on a date certain;
2. Staff creates a two-tier downtown hotel RFQ/RFP process;
a. Coordinate with appropriate staff and others as necessary to draft an RFQ;
b. Create two-tier RFQ/RFP evaluation process and return to the Commission in
approximately 30 days for final approval.
3. Release a modified version of the RFP for development on the Carnegie parcels that is
not hotel specific but market driven;
4. Staff creates a two-tier RFQ/RFP process that requests proposals for development on the
Carnegie parcels;
a. Coordinate with appropriate staff and others as necessary to draft an non-hotel
specific RFQ;
b. Create two-tier RFQ/RFP evaluation process and return to the Commission in
approximately 30 days for final approval.
5. Retain a real estate professional and place the Carnegie p arcels on the open real-estate
market. Through a carefully constructed purchase and sale agreement, contingencies,
covenants and/or deed restrictions the City can create assurances that the sale of the
Carnegie parcels goes only to a qualified buyer for the construction of a downtown hotel
as outlined in the RFP;
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6. Delay the release of the approved RFP for another fixed time period; or
7. Halt the process.
FISCAL EFFECTS: At this time, the fiscal effects are undetermined.
Attachments:
1) Draft RFP approved by the Bozeman City Commission on September 26, 2012; and
2) Public comment letter from Delaney and Co.
Report compiled on: January 16, 2012
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City of Bozeman, Montana
Request for Proposals (RFP) for the Construction of a
Full Service Hotel with Meeting Facilities In
Downtown Bozeman
Section 1
INTRODUCTION
“In some ways it is surprising that a community of Bozeman’s stature does not already have a
small 50-80 room, ‘four star’ hotel. The university, the hospital, and other corporate entities
report that such a hotel is needed for many types of visitors.”1
Thank you for your interest in the development of a full-service hotel with meeting facilities in
the heart of downtown Bozeman, Montana, and the northern Rocky Mountains, gateway to
Yellowstone National Park. This RFP is a request for detailed plans for the financing,
construction, and operations of a downtown hotel from professionals in the development
community. The level of design, furnishing, and operation of the project must be commensurate
with a high-quality, unique-lifestyle hotel with individualized, non-franchised architecture.
Respondent must show multiple successes in developing and operating high quality hotels in
similar environments.
Section 2
DEVELOPMENT OPPORTUNITY
The property development opportunity is to design, build and operate a full service hotel with
meeting facilities to attract more downtown patrons and high quality events and help the City of
Bozeman (the City) maintain strong tourism, entertainment and cultural and professional events
industries. The project must be consistent with all City plans that relate to its historic downtown
core and dynamic Central Business District including but not limited to the stated goals of the
Bozeman City Commission, the Downtown Bozeman Improvement Plan, Bozeman Community
Plan and the Economic Development Plan.
Section 3
WHY BOZEMAN?
Located in the heart of the Rocky Mountains, Bozeman is truly a remarkable community. The
City of 38,000 people serves a region of 90,000+ with backgrounds and cultures as diverse as the
Montana landscape. From cattle ranchers to high tech engineers, the area is home to a breed of
people who have come to appreciate an unmatched quality of life. While retaining a small town
1 Downtown Bozeman Improvement Plan, page 37.
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feel, Bozeman prides itself on offering community activities and programs typically available
only in larger, metropolitan areas. Combine the wide array of cultural resources with an
abundance of outdoor recreational opportunities and it’s easy to understand why Bozeman
consistently ranks as one of the nation’s most livable cities.
The Gallatin Valley is one of the fastest-growing areas in the Northern Rocky Mountains.
Bozeman is the regional trade, education and medical center and consistently hosts top-tier
medical, retail, cultural, and educational amenities that service southwest Montana, northwest
Wyoming, and eastern Idaho. Through innovation, collaboration, and a focused effort, Bozeman
is well positioned as a competitive and attractive place to conduct business, live, visit, and
recreate.
Bozeman is also home to Montana State University, a thriving research university. A new
classification system by the Carnegie Foundation for the Advancement of Teaching recognizes
MSU as one of 96 research universities with “very high research activity.” Other such
institutions are Yale University, Harvard University, Johns Hopkins University, the University of
Washington and Oregon State University. MSU, through competitively awarded grants and
contracts, had $109,481,694 in research expenditures between 2009 and 2010. MSU's most
valuable contribution to the state's economy is an educated workforce that attracts, promotes, and
retains higher paying jobs in Montana.
Considered the “Gateway to Yellowstone National Park” Bozeman boasts visitor numbers of
over approximately one million visitors per year. Three world class ski resorts, Bridger Bowl,
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Big Sky, and Moonlight Basin are only minutes away. Many visitors arrive in Bozeman via
Interstate 90, which bisects the beautiful Gallatin Valley from east to west. Many others transit
via the recently expanded Gallatin Field Airport, one of the busiest airports in the state of
Montana. Gallatin Field Airport recorded its busiest year ever with 365,210 passengers boarding
airline flights in 2010. This represents a 6.6 percent increase over 2009 and nearly 14,000
passengers more than the previous record set in 2008. Presently, Gallatin Field Airport and local
private business interests are exploring the feasibility of providing a customs agent for
international passenger arrivals and departures. A newly constructed concourse addition will
expand service to five airlines and average 20 flights per day including many non-stop
connections to major hubs including Atlanta (seasonal), Chicago, Denver, Los Angeles
(seasonal), Las Vegas, Minneapolis, Phoenix, Salt Lake City, San Francisco (seasonal), and
Seattle. Additionally, two private jet centers provide an array of services to private jet
passengers.
Over the years, Bozeman has been fortunate to be included on several “Best Of” lists from a
variety of sources. For example, in 2010 an economic research firm ranked Bozeman as the
seventh strongest micropolitan economy in 2010 out of 576 small cities studied throughout the
United States. Additional recognitions include:2
a. “Where to Live and Play Now:” This article by National Geographic Adventure
recommended Bozeman as a good place to raise children for the reasons of safety,
exposure to culture, and outdoor amenities. October, 2009;
b. “The Union of Town and Gown:” Entrepreneur Magazine highlighted colleges that are
working with their cities to foster a local entrepreneurial spirit that will develop the
economy and encourage business-savvy students to stick around post-graduation.
Bozeman ranked #6 on this list. October, 2009;
c. “Happiest States of 2009: The List:” LiveScience ranked Montana #3 behind Hawaii and
Utah where the index included questions about six areas of well-being, including overall
evaluation of resident’s lives, emotional health, physical health, healthy behaviors and
job satisfaction. February, 2010;
d. “Best Towns 2010 – Best for Skiing (West):” Outside magazine featured the top 25
towns in America for cycling, paddling, running, surfing, skiing, and – because you
might want everything – all of the above. Bozeman received these accolades for having
two ski areas and 350 inches of annual snowfall. August, 2010;
e. “10 Best Affordable Mountain Towns for Retirement:” According to U.S. News & World
Report, Bozeman fits the bill of offering access to plenty of skiing, trails, and wildlife,
while still providing affordable housing and a reasonable cost of living in addition to
other retiree-friendly characteristics, such as access to healthcare and a low crime rate.
July, 2010;
2 This list was excerpted from Robyn Erlenbush’s article “Twelve Reasons to Live in Big Sky Country” appearing in
the Bozeman Daily Chronicle’s Businesss2Business publication on January 11, 2011.
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f. “Bozeman named #1 town to live (if you’re a skier):” According to Powder magazine,
“Bozeman is the perfect mix of ski town and skitropolis; it’s more affordable than
Jackson Hole, less crowded than Salt Lake City, and more of a real town than Whistler.”
November, 2010; and
g. “Top Retirement Town:” Bozeman was profiled in Where to Retire magazine’s
November/December issue for possessing many qualities important to today’s retirees.
October, 2010.
The region also hosts numerous “blue ribbon” trout fishing streams including the nearby
Yellowstone, Boulder, Madison, and Gallatin rivers. Bozeman is also distinguished by its
thriving and vibrant downtown food, culture, arts, and entertainment scenes.
Bozeman is the regional hub for retail and commerce, education, healthcare, tourism,
manufacturing and innovation. Bozeman is home to notable, one-of-a-kind, worldwide
organizations such as Right Now Technologies, Zoot Enterprises, Schedulicity.com, Simms
Fishing Products, Mystery Ranch Backpacks, West Paw Design, LigoCyte Pharmaceuticals,
Bacterin International, Scientific Materials, BioScience Laboratories, Foundant Technologies,
Bridger Photonics, ILX Lightwave, and Lattice Materials.
Bozeman is a dynamic, growing, and thriving community boasting an excellent university
surrounded by beautiful mountains, clear streams, and fertile land. The Bozeman community
strongly supports our excellent school systems which are important to our well-educated
community and workforce. Additionally, Bozeman is the regional trade and medical center of
southwest Montana and hosts top-tier medical, retail, and cultural amenities that service
southwest Montana, northwest Wyoming, and eastern Idaho. Add the scenic beauty of our
mountains, 82 miles of designated “blue ribbon” trout streams, and proximity to Yellowstone
National Park (80 miles), Big Sky (48 miles), Moonlight Basin (50 miles), and Bridger Bowl (13
miles) ski areas and one can see why Bozeman is a great place to visit, call home or start or
relocate a business.
Section 4
PROJECT GOALS AND OBJECTIVES
It is the intention of the City of Bozeman to:
a. Develop a recognized high-quality downtown hotel with meeting facilities;
b. Enhance the dynamic environment of downtown Bozeman with a hotel that complements
the area’s existing retail, dining, entertainment, accommodation, and meeting venues;
c. Serve as an added catalyst for continued economic growth and provide a direct economic
benefit to Bozeman;
d. Maximize the site’s potential in a creative and complementary manner;
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e. Reflect and respect the architectural and spatial context of the site;
f. Create long-term and sustainable jobs; and
g. Further the goals and objectives of the Bozeman City Commission, Downtown Bozeman
Improvement Plan, Bozeman Community Plan, and the City’s Economic Development
Plan.
Section 5
THE PROPERTY
The development opportunity is located on a 26,600 square foot parcel known as the “Carnegie
parcel” located on the corner of North Black Avenue and East Mendenhall Street at 106 East
Mendenhall Street. The Carnegie parcel presently serves as a surface parcel and contains 71
parking spaces. The property was purchased by the City in 1976. Additionally, the Carnegie
parcel is located directly east, across North Black Avenue, from Bozeman’s five-story (including
the basement level), 435 space parking, restaurant, and retail structure, Bridger Park Downtown.
Located in Bozeman’s Central Business District and immediately north of Main Street, the site is
within less than five minutes walking distance of entertainment and cultural attractions, multiple
historic districts, business services, public library, public parks, public parking structure,
restaurants, shopping, and public transit. The site is owned by the City and currently managed by
the Bozeman Parking Commission as a public surface parcel.
The parcel is adjacent to Bozeman’s Main Street Historic District, recognized on the National
Register of Historic Places as a historic commercial center with a period of historic significance
between 1872 and 1945. Bozeman’s Main Street district remains the heart of the community, and
attracts innumerable area residents and many thousands of out-of-town visitors per year.
Although both existing historic hotels located within the district have been converted to private
non-hotel uses, visitors often express an interest in staying in or directly adjacent to the Main
Street district given its proximity to numerous locally owned restaurants, galleries, boutiques as
well as music, cultural, and community events.
Section 6
SELECTION
Through this RFP process, the highest qualified proposals will be forwarded to the Bozeman
City Commission for final selection. Formal negotiations for a sale and development agreement
are expected at the end of this process.
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Section 7
DEVELOPMENT SITE INFORMATION
The proposed 26,600 square foot hotel site is located on real property owned by the City known
as the Carnegie parcel (lots 17-A, 18, 19, 20, 21, and 22 of Block E of the Original Townsite of
Bozeman, Montana) located at 106 East Mendenhall Street (see the orange square on the maps
below).
Details related to the size, zoning, and development capacity of the site area are summarized in
the City’s Unified Development Code or UDC.
Map A
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Map B
Section 8
DEVELOPMENT PARAMETERS
Height Limit
The maximum height allowed for the development site is 70 feet as defined in the UDC.
Compatibility with adjacent development may require less than the maximum for some portions
of the building based on building design. The maximum height of the proposed hotel shall be
measured from the sidewalk.
Details related to the size, zoning, and development capacity of the site area are summarized in
the City’s UDC.
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Lot Coverage
The entire area of the lot may be covered exclusive of the minimum yard setbacks.
Parking and Easement Requirements
Provide the minimum number of spaces required by the UDC (See UDC, Section 18.46.040).
The City will entertain cash in lieu of parking spaces or an arrangement with the Bridger Park
Downtown. Additionally, the City will consider shared parking proposals utilizing adjacent
parking resources.
Design Flexibility
There are opportunities for flexibility in compliance with numeric standards in exchange for
superior design. (See UDC, Section 18.28.070)
Section 9
DUE DILIGENCE INFORMATION
Property Appraisal
The City has obtained a real estate appraisal on the Carnegie parcel. The appraisal is available at
http://www.bozeman.net/Departments-(1)/Administration/Commission/BID---RFP---RFQ.
Property Title
The City has contracted for a Preliminary Commitment for Title Report to be prepared for the
Carnegie parcel. The Preliminary Commitment for Title Report is available at
http://www.bozeman.net/Departments-(1)/Administration/Commission/BID---RFP---RFQ.
Zoning
The site is zoned B-3, Central Business District, see http://www.bozeman.net/Departments-
(1)/Administration/Commission/BID---RFP---RFQ for a current zone map.
Environmental Clearance
The City has contracted for a Phase I Environmental Assessment to be prepared for the Carnegie
parcel. The Phase I Environmental Assessment is available at
http://www.bozeman.net/Departments-(1)/Administration/Commission/BID---RFP---RFQ.
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Section 10
DESIGN CONCEPTS AND GUIDELINES
Design guidelines for the Downtown area, of which the hotel site is a part, are provided in the
Downtown Bozeman Improvement Plan and the Design Guidelines for the Neighborhood
Conservation Overlay. The guiding design principles for this area are summarized as follows:
a. Reinforce the Downtown Bozeman Improvement Plan, Bozeman Community Plan, the
City’s Economic Development Plan, and the City Commission’s 2011 - 2012 Work Plan;
b. Respect history and community landmarks;
c. Promote high standards of street design with active streetscapes and visually permeable
street level facades;
d. Create a vibrant edge to the street with strong building character and proximity to the
sidewalk;
e. Maintain and extend historic streetscape elements as specified in the “Downtown
Business Improvement District Streetscape Plan;”
f. Maintain the distinction between the street level and the upper floor in the building
design;
g. Provide a gracious and dignified setting;
h. Achieve building design coherence;
i. Maintain and extend the traditional building form and mass as seen in the surrounding
commercial district, the building may express traditional form and massing with current
architectural vocabulary;
j. Use building materials as seen traditionally in the surrounding commercial district;
k. Communicate building function; and
l. Build to the highest standards.
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Section 11
SUBMITTAL REQUIREMENTS/CONSIDERATIONS
Except for the project pro-forma and information regarding the ability to financially
guarantee the project, all submittal documents are considered public records once the
closing date has passed.
Each submittal must contain detailed responses of each of the following:
1. A cover letter or executive summary stating the responder’s interest in this project.
Include reasons for developing in Bozeman, what the responder offers Bozeman, and
how Bozeman fits in the corporate scheme;
2. Discuss how the proposal is consistent with and furthers City Commission Policy
Initiative 1c) “[f]acilitate the development of a downtown hotel as identified in the
downtown development plan,” of the Commission’s 2011 – 2012 Work Plan
[HYPERLINK] the Downtown Bozeman Improvement Plan, Bozeman Community
Plan, and the City’s Economic Development Plan;
3. Include a description of the proposed project (building square footage, number of floors,
proposed uses, not less than 20 percent interior and 50 percent exterior schematics,
including the proposed number of rooms, a discussion of retail, restaurant, meeting,
and/or other proposed use of space (if applicable);
4. Provide a parking plan that includes the appropriate number of parking spaces required to
serve the proposed hotel. Include a detailed description of how parking issues will be
addressed;
5. Discuss the inclusion of meeting facilities in the proposal;
6. Explain any shuttle services that will be offered to the airport, Big Sky, Bridger Bowl, or
any other tourist attraction in the area;
7. If selected, and upon completion of the project, discuss ongoing advertising plans that
will ensure the hotel’s viability;
8. Demonstrate your knowledge of Bozeman by explaining the role tourism plays in
Bozeman, the utilization of existing tourism resources, and the impact notable economic
and socioeconomic trends in the community will have on a hotel;
9. Discuss the hotel’s sustainability practices, including recycling, buying local, energy
efficiency, and other green concepts;
10. List responders complete experience in hotel construction, financing, and management;
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11. Enumerate and describe public (local, state, and federal) incentives or funding sought.
Proposals involving any contribution from the City’s General Fund will not be
considered;
12. Clearly delineate the desired role of the City, if any, in terms of the financing,
construction, and operations of a downtown hotel;
13. Include estimated project costs, timeline for completion, and a summary of proposed
equity/financing structure;
14. State whether the intent is to purchase the property from the City and at what price or
propose an alternative legal relationship;
15. Provide an economic plan/pro-forma. In a separate document or documents, substantiate
the financial capacity to fund the project costs, including: 1) lot purchase, if that is
proposed; and 2) estimated construction costs, including both detailed hard costs and soft
costs, and financing costs, if any. In addition, provide a detailed pro-forma operating
budget and substantiate the ability to fund costs in excess of income if startup losses are
concluded in the budget. “Substantiation” will be considered an accountant-prepared
verification of equity capital sufficient to construct and operate the project, a letter of
commitment from a bank or other reputable commercial lender in an amount sufficient to
construct and operate the project, or verification of a combination of equity capital and a
lender letter of commitment. Except for the project pro-forma and information
regarding the ability to financially guarantee the project, all submittal documents
are considered public records once the closing date has passed;
16. If an alternative legal relationship is proposed, provide proposed transaction terms and
conditions and a term sheet that includes the proposed lease amount and proposed lease
term;
17. Acknowledge the rights of the City, per Section 18;
18. Include a narrative and photographic history of successfully completed projects of similar
scope;
19. Provide public and/or private sector project references;
20. Acknowledge that the City reserves the right to require the reversion of the property back
to the City if the project is not commenced or completed within a pre-determined time
frame;
21. Acknowledge that the City will maintain ownership and operational rights of the
Carnegie parcel until a proposal is approved, contracts are executed, and a building
permit issued for the project;
22. Identify long-term, sustainable jobs created;
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23. Describe the project’s contribution to the area economy through the utilization of locally
sourced materials, professionals, and labor;
24. Provide a full description of the submitting development entity, including full legal name,
type, ownership, and primary contact regarding submittal;
25. Identify the management company that will manage the overall, long-term hotel
operations and describe the proposed legal relationship between the City and the
submitting entity;
26. Provide identification and qualifications of the proposed team members (i.e. the
developer, hotel operator, etc). Include a single contact person for all correspondence and
notifications;
27. Provide a description of the project’s potential to serve as an economic stimulus to the
area and projected economic impact, including impact on the local lodging, local Tourism
Business Improvement District or facility use tax ($1/night stay), and local property tax
base;
28. Identify additional project benefits to the City, such as jobs created, services provided,
and needs met;
29. Provide a traffic and access plan describing the maintenance of access to Bridger Park
Downtown and all other adjacent businesses throughout the site preparation and
construction phases;
30. Acknowledge the City’s anti-discrimination policy for contracts, purchases, and other
agreements; and
31. Acknowledge your proposal via signature(s) of key executives.
Prior to executing a contract for the sale of the subject property, or permitting of the project, the
City may require the successful submitting entity to furnish an approved Construction
Performance Bond and a Construction (Labor and Materials) Payment Bond, each in the amount
of 100 percent of the contract amount. Insurance, as required by the City, shall be provided by
the successful submitting entity and a certificate(s) of that insurance shall be provided under
terms approved by the Bozeman City Attorney.
Teams are encouraged to provide any information that will assist the City in the evaluation of
their submission. However, bulky promotional materials not directly related to the project are
discouraged.
Submissions must be in the actual possession of the Office of the Bozeman City Clerk, (121
North Rouse Ave, P.O. Box 1230, Bozeman, MT 59771 on or prior to Tuesday, January 3,
2012, by 5:00pm, Mountain Time.
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Late submissions will not be considered. Submissions must be provided in a sealed package with
the statement Downtown Bozeman Hotel Proposal and the prime contact name and address
clearly labeled on the front of the package. Please submit ten complete paper copies and five
complete digital copies on CD-ROM or flash drive of the proposal. PDF digital file formats
are preferred.
Section 12
EVALUATION PROCESS
THE CITY RESERVES THE RIGHT TO REJECT ANY OR ALL SUBMITTALS AT
ITS SOLE AND ABSOLUTE DISCRETION.
The City will designate a Preliminary Review Panel (Panel) to evaluate all proposals received in
response to this RFP. The Panel will assess the proposals based on the evaluation criteria
described in Section 13, below. Panel members will score each proposal in their own preferred
order. The scores assigned by each Panel member will be based on the individual member’s
reasonable judgment as to the degree to which the proposal complies with the criteria and intent
of the RFP process.
Members of the Panel and other City staff may contact references and industry sources,
investigate previous projects and current commitments, and interview some or all of the
development team.
The proposals passing preliminary review will be forwarded to the Bozeman City Commission
for final selection based on the evaluation criteria described below. Respondents selected for
Commission review may be requested to present their full proposal before the City Commission
at a public meeting.
Architectural design of final selected proposal will be reviewed through the City’s Planning
Department, with particular attention paid to the municipal code requirements for Certificates of
Appropriateness. Bozeman’s Design Guidelines for Historic Preservation and the Neighborhood
Conservation Overlay District should be consulted during the design process and will be used by
City Planning Staff to evaluate the project. The City does not require any particular architectural
style in building design. Planning staff is available to further discuss design guidelines,
objectives, and intent as needed.
Section 13
EVALUATION CRITERIA
The following criteria will be utilized in determining those submittals deemed most
advantageous to the City and most responsive to stated goals of this project. The City reserves
the right during the evaluation process to determine the weight to be applied to each criteria;
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however, in the Panel’s evaluation, part b below will receive the greatest weight in the scoring
process, followed by part a and then part c:
a. Development Entity/Capacity
i. Demonstrated experience in successful financing, development, operation, and
economic performance of comparable projects;
ii. Ability to complete the project in a timely fashion; and
iii. Preference will be given to those developers/operators that have experience in
public/private projects utilizing private sector financing.
b. Submittal Requirements
i. Extent to which the submittal satisfies the Submittal Requirements/Considerations
described in Section 11 and the Project Goals and Objectives described in Section
4; and
ii. Ability to effectively design, construct, and operate the project within the
Development Parameters described in Section 8.
c. Transaction Terms
i. Proposed development schedule and phasing required to complete the project; and
ii. Quality and feasibility of proposed business offer.
Section 14
PROPOSED SELECTION SCHEDULE
The City intends to proceed in accordance with the schedule shown below. The City reserves the
right to issue written notice of any changes in the schedule should the City determine, in its sole
and absolute discretion, that such changes are necessary or desirable. The City agrees to
provide adequate notice to respondents should the schedule be amended. Such notice will
be provided through the City’s website at www.bozeman.net.
Section 15
SCHEDULE
To be determined
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Section 16
INQUIRIES
All questions regarding the RFP shall be in writing and directed to:
Brit Fontenot
Director of Economic Development and Community Relations
P.O. Box 1230
City of Bozeman, Montana
406-582-2258
bfontenot@bozeman.net
Written questions and responses will be published on the City’s webpage at
http://www.bozeman.net/Departments-(1)/Administration/Commission/BID---RFP---RFQ.
Section 17
RESPONDENT RESPONSIBILITIES
All facts and opinions stated herein and in any additional information, whether written or oral,
provided by the City of Bozeman and/or its representatives, are based on available information
and are believed to be accurate. However, no representation or warranty is made with respect
thereto. The information in this document is intended to help prospective respondents create
viable responses. However, it is the sole and absolute responsibility of those responding to this
request to complete their own due diligence with regard to the information contained herein,
including, without limitation, any development restrictions, whether contractual, governmental,
physical, or otherwise, which may restrict or affect development of the site. Development is
subject to all applicable development standards and restrictions.
Section 18
RESERVATION OF RIGHTS BY CITY OF BOZEMAN
The issuance of this RFP and the acceptance of a submittal do not constitute an agreement by the
City that any contract will actually be entered into by the City. Any costs incurred by
respondents in preparation of a response to this RFP or future RFP are completely the
responsibility of the respondents. Any or all disputes arising under this RFP and any contract
negotiated as a result of this RFP shall be governed by the laws of the State of Montana. The
City reserves the right to issue written notice of any changes in the submittal process
should the City determine, in its sole and absolute discretion, that such changes are
necessary or desirable.
In addition and notwithstanding any other provision of the RFP, the City reserves the right to:
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a. Waive any immaterial defect or informality in a submittal;
b. Extend or otherwise revise the submittal date;
c. Reject any or all submissions or portions thereof;
d. Reissue a new or revised RFP; and
e. Request additional information or one or more teams to submit a more detailed submittal.
Section 19
NO PARTNERSHIP/BUSINESS ORGANIZATION
Nothing in this RFP or in any subsequent development agreement, lease, or any other contract
entered into as a result of this RFP shall constitute, create, give rise to or otherwise be recognized
as a partnership or formal business organization of any kind between or among the City or the
team unless agreed to by the City.
Section 20
EMPLOYMENT RESTRICTION AND INDEMNITY
No person who is an officer, employee, contractor or consultant of a team shall be an officer or
employee of the City. No rights of the City’s retirement or personnel rules accrue to the
submitting team, its officers, employees, contractors, or consultants. The successful team shall
have the total responsibility of all salaries, wages, bonuses, retirement, withholdings, worker’s
compensation and occupational disease compensation, insurance, unemployment compensation,
other benefits and taxes and premiums appurtenant thereto concerning its officers, employees,
contractors, and consultants. Each submitting team shall save and hold the City harmless with
respect to any and all claims for payment, compensation, salary, wages, bonuses, retirement,
withholdings, worker’s compensation and occupational disease compensation, insurance,
unemployment compensation, other benefits and taxes and premiums in any way related to each
submitting team’s officers, employees, contractors, and consultants.
Section 21
PROPERTY RIGHTS/DISCLOSURE OF INFORMATION
All materials submitted in response to this RFP and submittals subsequent thereto, shall become
the property of the City upon delivery.
By tendering a response to this RFP, every submitting team waives any right of access to other
submittals during the review period.
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Any entity tendering a submittal in response to this RFP further acknowledges and understands
that the City is a public entity required to abide by public record laws and shall not be liable for
disclosures required by law.
Section 22
SUBMITTAL REJECTION/RIGHT TO DISQUALIFY
Submittal of terms, condition and/or agreements may result in rejection if such terms, conditions,
or agreements are deemed unacceptable by the City in its sole discretion. The City reserves the
right to disqualify any team who fails to provide information or data specifically requested herein
or who provides materially inaccurate or misleading information or data or who attempts to
influence the selection process outside the procedures established herein. The City reserves the
right to disqualify any team on the basis of any real or apparent conflict of interest. This
disqualification is at the sole discretion of the City.
Section 23
CITY OF BOZEMAN’S ANTI-DISCRIMINATION POLICY
Each entity submitting under this notice shall include a provision wherein the submitting entity,
or entities, affirms in writing it will not discriminate on the basis of race, color, religion, creed,
sex, age, marital status, national origin, or because of actual or perceived sexual orientation,
gender identity, or disability, and which also recognizes the eventual contract will contain a
provision prohibiting discrimination as described above, and that this prohibition on
discrimination shall apply to the hiring and treatment of the submitting entity’s employees and to
all subcontracts.
Failure to comply with the above shall be cause for the City to deem the submittal non-
responsive.
####
END OF RFP
108
From:Agenda
To:Chris Kukulski; Chuck Winn; Greg Sullivan;
Brit Fontenot;
Subject:FW: Carnegie Lot
Date:Wednesday, January 04, 2012 12:50:36 PM
FYI A hard copy was just delivered to the Clerk’s office as well.
From: Delaney & Company [mailto:delaneynco@earthlink.net]
Sent: Wednesday, January 04, 2012 9:52 AM
To: Jeff Krauss; Agenda; Sean Becker; Carson Taylor; Chris Mehl; Cyndy Andrus
Subject: Carnegie Lot
Dear Mayor Krauss and City Commissioners,
The following property owners in downtown Bozeman hereby request that
the City of Bozeman does not offer the Carnegie parking lot for sale.
We have expressed our concerns at various public meetings in the summer
and fall of 2011. We feel this parking lot is of utmost importance to the
long term financial survival of our businesses and properties downtown.
Strategic, well located surface parking lots such as this can never been
replaced.
As downtown retailers and property owners, we see the tremendous
importance to our customers, tenants and businesses of having easily
accessible public parking. The Carnegie lot is heavily used at all hours of
the day throughout the week and it is frequently packed which clearly
demonstrates its need in our community. This need will grow even further
over time. The sale of the Carnegie lot would effectively eliminate 86
spaces (73 in the lot and 13 in the alley adjacent to the lot) which represents
over 20% of the existing public parking lot spaces in our downtown area.
Once these public parking spaces are lost, we will never be able to get them
back. The sale of the Carnegie lot and the loss of these much used parking
spaces will be very damaging to all of our businesses particularly at a time
when many businesses are struggling in the current economy.
The Sonoran Institute recently conducted a study which concluded that
downtown Bozeman properties pay the highest property taxes per square
109
foot over all other commercial properties in our city. However, the only way
that we can remain economically viable and support this additional tax
burden along with the other added costs of operating in a downtown historic
district is by having public amenities such as accessible public parking lots.
Having accessible public parking is the lifeblood of a vibrant downtown
mixed-use retail center. The loss of these much used and much needed
spaces would be a big blow to our downtown businesses. It will also be a
mistake that you can never correct. Please don't break something which isn't
broken. We urge you to listen to the downtown retailers and property
owners and withdraw your plans to sell off the Carnegie lot.
Sincerely,
Ileana Indreland
Michael W. Delaney
Mike Hope
Steve Roderick
David Loseff
Rick Radovich
Ashley Ogle
Rick Ogle
Ruth Arnold
Jeanne Arnold
Richard Harte
Kasey Harte
CC: Mike Hope, Steve Roderick, David Loseff, Rick Radovich, Ashley Ogle (Rick
Ogle), Jeanne Arnold (Ruth Arnold), Kasey Harte (Richard Harte)
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