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HomeMy WebLinkAboutLAKE OLMSTEAD STADIUM FEASIBILITY STUDY JLL Jones Lang LaSalle Americas,Inc. Hotels&Hospitality Group March 13,2019 Ms.Geri Sams Procurement Director City of Augusta Procbidandcontract©augustaga.gov Re:RFQ 18-309 Feasibility Study to convert Minor League Stadium to an Amphitheater Dear Ms.Sams: Jones Lang LaSalle Americas, Inc. ("JLL")is pleased to present this proposal to assist the City of Augusta ("City" or"Client")with advisory and support services related to the development of a Feasibility Study to convert the Lake Olmstead Minor League Stadium to an Amphitheater.JLL's understanding of the project, scope of services,timing, professional fees and contractual conditions are outlined below. Our Understanding of the Project JLL understands that the City of Augusta is interested in exploring the feasibility of transforming the Lake Olmstead Stadium into an Amphitheater. JLL will undertake a market assessment to determine the potential use and booking of an amphitheater and will create preliminary concept drawings and a pro forma renovation and operating budget to help the City understand the potential revenue streams/costs of transforming the stadium and operating the amphitheater. Scope of Services Task 1:Project Initiation • JLL will meet with the City staff leading the project and interested City Council members and conduct a 1/2 day workshop to share best practices of amphitheaters and other entertainment venues with a focus on municipally owned ones. The purpose of this workshop is to confirm the project approach and solicit feedback from the staff. • The facilitated session will also give JLL the opportunity to conduct a windshield tour of comparable facilities and sites within the CRSA. Projected Fee for Task 1=$4,600 1 Front Street - San Francisco,CA 94111 (831)298-7215 1 1 GJLI: Jones Lang LaSalle Americas,Inc. Hotels&Hospitality Group Task 2:Assess current overall entertainment market within the Metropolitan Statistical Area(MSA) Subtask A: Investigate existing entertainment venues(indoor and outdoor),to include those under construction or in planning,to determine potential demand over and above existing capacity within the Central Savannah River Area(CSRA) • JLLwill make an inventory oftheexisting and planned entertainmentvenues intheCSRA. • JLL will compile data on each venue, including size, seating capacity,current use(s), ownership type, booking arrangement(through web research and phone calls with venues or operators as needed). • JLL will build a profile of the audience types in the region (based on demographics, past event ticket sales,etc.). • JLL will conduct 3-5 interviews with current promoters to understand their interest in bringing programming to Augusta;additionally,JLLwill survey the promoters asto potential acts that might be brought to the Augusta/CRSA market. • JLL will compile data on comparable amphitheater projects in the US to provide benchmark information to the City. • JLLwill assesswhetherthemarketisadequatelyserviced bytheexisting and planned entertainmentvenue stockgiven the audience profiles andwill identify any gaps in entertainment product. • JLL will present the results of the assessment and facilitate a demand check-in with the City Council and staff(via WebEX).The check-in will also allow JLL and the City to finalize next steps. Subtask B: Research area demographics to determine ticket sales potential for the MSA,types of acts that would generate sufficient sales to make the operation of the venue feasible,as well as the types of acts that would generally be best served in an open-air environment. • Based on the demographic profile of the CRSA created above,JLL will identify the type of entertainment or genre that would be mostdemanded by residents in a 3-hourdriving range and that would fit the venue type(s)identified. • Given thetype of entertainment or genre identified,JLL will compile data on ticket sales and event performance upon which to base projections. Projected Fee for Task 2,Subtasks A&B=$26,000 Page 2 of 9 ®JLL Jones Lang LaSalle Americas,inc. Hotels&Hospitality Group Task 3: Develop a rough program for an amphitheater which meets the needs determined from the market investigation for owner concurrence and comment.Program should reflect seating parking requirements,support spaces(to include backstage accommodations and infrastructure),vending, circulation • The City of Augusta will share any AutoCAD drawings of the current stadium with JLL and BLUR Workshop. • The City of Augusta will share any surveys of the stadium property and any policies or restrictions affecting its use with JLL and BLUR Workshop. • Given the assessments and data gathered in the task above,JLL will develop up to three programming scenarios for the facility. The program will reflect parking requirements, other needed amenities or features to make the venue one compelling enough to attract visitors(e.g., concessions,retail),and support spaces. • JLL will present these three scenarios to the City,solicit feedback,and make up to three revisions to integrate the City's requirements and/or recommendations. • The City will then choose one of the scenarios to explore further. Projected Fee for Task 3=$5,950 Task 4:Prepare up to three(3)preliminary concept drawings showing possible configurations which meet the agreed upon program • BLUR Workshopwilltaketheabovescenarioandcreateuptothreepreliminaryconcept drawingsto illustrate configurations that could accommodatethe determined program. • Each conceptwill have a rough costestimation for construction/renovation costs to provide the City an order of magnitude astothe costdifference among thethree concepts. Projected Fee for Task 4=$25,000 Task 5:Develop an estimated project budget,to include design development,related planning, construction documentation,and construction • JLL will take the chosen scenario/concept and develop an estimated project budget for design, related planning,construction documentation,and construction/renovation ofthefacility. • In conjunction with the estimated construction/renovation budget,JLL will identify potential funding mechanisms(e.g., P3 partnerships or naming rights)for the needed construction/renovation. Projected Fee for Task 5=$9,200 Page 3 of 9 1 JUL Jones Lang LaSalle Americas,Inc. Hotels&Hospitality Group Task 6:Prepare an estimated revenue stream based on the program • JLL will also project potential booking of the facility and the accompanying revenue-stream of the program. • These projections will be informed by the market research,outreach to booking agencies,and best practice research. Projected Fee for Task =$4,600 Task 7:Develop a conceptual operating cost estimate for year-round operation • JLL will also develop a conceptual pro forma operating cost model which assumes the venue is operated year-round. The pro forma will be based on the revenue assumptions in Task 6 and include operating revenue,operating expenses,and non-operating expenses. • JLL will present the results and recommendations with the City(in person) Projected Fee for Task 7=$10,100 Summary of Scope Steps Task 1: Project Initiation Task 2: Assess overall entertainment market Investigate existing entertainment venues(indoor Research area demographics to understand sales and outdoor)and determine potential demand potential and types of acts that would generate capacity within the Central Savannah RiverArea sufficient sales and be best served in an open air environment. Task 3: Develop rough program for an amphitheater The rough program will reflect seating parking requirements,support spaces(to include backstage accommodations and infrastructure),vending,circulation,etc. Collect AutoCAD and site survey Develop three programming City decides which programming information from the City scenarios scenario to develop Task 4: Prepare up to three(3)prelit iinary concept drawings Task 5: Develop an estimated project construction and design budget Task 6:Prepare estimated revenue stream based on program Based on potential booking of the facility.Booking projections will be informed by the market research,outreach to booking agencies,and best practice research. Task 7:Develop pro forma for year-round operation Develop a conceptual pro forma operating cost model for year-round operations based on the revenue assumptions in Task 6 and including operating revenue,operating expenses,and non-operating expenses. Page 4 of 9 6 JLL Jones Lang LaSalle Americas,Inc. Hotels&Hospitality Group Team JLL Executive Vice President Dan Fenton will lead the overall engagement and be ultimately responsible for service delivery. Mr. Fenton will be assisted by appropriate members of the JLL team based on the expertise required.JLL has sub-contracted with BLUR Workshop to assist in Task 3. Timeline It is anticipated that the above scope of work will be completed within 16 weeks. Compensation The JLL professional fee for the scope as described above is$85,450.The final fee will be determined after review and acceptance of the above scope by the City of Augusta. Should the City of Augusta desire to contract for additional services not outlined in the final scope, JLL will either submit a scope change and detail the fee for the additional work or the City may choose to contract with the JLL team at the hourly rateof $250. In addition to professional fees, JLL will be reimbursed for reasonable, out-of-pocket travel expenses incurred in conjunction with this engagement. JLL will invoice the City for reimbursable amounts at cost. Reimbursable expenses shall be payable upon receipt by Client of an invoice from JLL. The provisions of this letter agreement shall be governed and controlled by the terms and conditions set forth in ExhibitAattached hereto and incorporated by reference. By signing below the Client acknowledges and agrees that they have read and accept all of the terms herein, including but not limited to the scope of work, compensation and the Terms and Conditions set forth in Exhibit A. *** We appreciate the opportunity to provide this engagement letter and look forward to providing these services. Should you have any questions,please contact me at(831)298-7215. Respectfully submitted, ' z: Dan Fentorfi, Executive Vice President Jones Lang LaSalle Americas, Inc. i. READ,AGREED AND ACCEPTED BY: City of Augusta et t µ.i,may . j t ,,,,P 4- is •1 ie iI1-ti`�� Mayor Hardie Davis, Jr l; t r' 4 ® °f I 0,� vi a4, � ! .��' �fJL/AtLAfa/�ie // of Page 5 o 9 / ! N ( 8:►s.P. ..41* 0)) JLL Jones Lang LaSalle Americas,Inc. Hotels&Hospitality Group EXHIBIT A TERMS AND CONDITIONS INDEPENDENT CONSULTANT STATUS AND SUBCONTRACTORS JLL will act solely as an independent contractor in performing the Services, and nothing in this letter agreement will at any time be construed to create the relationship of employer and employee, principal and agent, partners, or joint venturers between Client and JLL, or Client's officers, directors, partners, managers, employees or agents and JLL's officers, directors, partners, managers, employees or agents. JLL shall be solely responsible for the compensation, benefits, contributions and taxes, if any, of its employees,subcontractors and agents. TERM AND TERMINATION OF LETTER AGREEMENT This letter agreement shall be terminable by either party upon thirty(30)days written notice by either party. After Phase Two the client will elect in writing whether JLL shall commence the remainder of the Phases. However upon a breach of this letter agreement, the non-breaching party may terminate this letter agreement immediately. In the event, the client does not proceed after Phase Two, payment for services not rendered are not due. INDEMNIFICATION JLL shall indemnify, defend (with counsel reasonably acceptable to Client) and hold Client harmless from any and all claims, demands, causes of action, losses, damages, fines, penalties, liabilities, costs and expenses, including reasonable attorneys'fees and court costs, sustained or incurred by or asserted against Client by a third party by reason of or arising out of JLL's gross negligence or willful misconduct with respect to JLL's duties and activities within the scope of this letter agreement. The terms of the foregoing indemnification provision shall survive the expiration or termination of this letter agreement. CONFIDENTIALITY Both parties shall treat as confidential property and not disclose to others during or subsequent to the term of this letter agreement, except as necessary to perform this letter agreement(and then only on a confidential basis satisfactory to both parties), any information and documents which are received from the other party and identified as "Confidential." Both JLL and Client shall also treat as confidential and shall not disclose to others, except as required by law, this form of letter agreement. Client shall automatically treat JLL's "copyrighted"work product and proprietary software programs as "Confidential"and shall not reuse or share such Confidential information with other outside consultants, or third parties, without the prior written consent of JLL. Page 6 of 9 JLL Jones Lang LaSalle Americas,Inc. Hotels&Hospitality Group Nothing above, however, shall prevent either party from disclosing to others or using in any manner information, which that party can demonstrate: A. Has been published and has become part of the public domain other than by acts, omissions or fault of the party to this letter agreement receiving such Confidential information, their employees, agents, contractors and/or consultants; or, B. Has been furnished or made known to the party to this letter agreement receiving the Confidential information by a third party (other than those acting directly or indirectly for or on behalf of JLL or Client)as a matter of legal right without restrictions on its disclosure; or, C. Was in either party's possession prior to disclosure thereof by the other party. D. Must be disclosed pursuant to any statute, law, regulation, ordinance, order or decree of any governmental authority having jurisdiction over the party to this letter agreement receiving the Confidential information or any of its employees, agents, contractors and/or consultants. The foregoing obligations of confidentiality in this letter agreement shall survive for a period of one(1) year from the mutual execution of this letter agreement. LIMITATION OF LIABILITY Neither party shall be liable to the other for, and each party hereby waives any and all rights to claim against the other party, any special, indirect, incidental, consequential, punitive or exemplary damages in connection with this letter agreement, including, but not limited to, lost revenue or profits, even if a party has knowledge of the possibility of such damages; and in no event shall JLL's liability to Client hereunder exceed the annual fee paid to JLL pursuant to this letter agreement. VERIFICATION AND RELIANCE The data, documentation, and assumptions derived from information supplied by Client, published information,prepared by JLL in the regular course of its business,and other industry sources will not be independently verified by JLL for purposes ofthis Agreement.JLL will not be responsible forthe accuracy of such data and information,and for any assumptions derived therefrom. The information furnished by others is believed to be reliable,but no warranty is given for its accuracy. However,JLL's performance will be based on JLL's professional evaluation of all such available sources of information. Client acknowledges and agrees that there may be differences between projected and actual results because events and circumstances frequently do not occur as predicted,and those differences may be material and hereby releases JLLfrom any claims or liability arising from these differences. JLL is not obligated to predictfuture political,economicorsocialtrends.JLL assumes no responsibilityforeconomicfactorsthat may affect or alter the opinions in this report if said economic factors were not present as of the date of the letter of transmittal accompanying this report. The parties understand and agree that neither JLL's fees nor the payment thereof by Client is contingent upon the results, conclusions or recommendations provided by JLL. Page 7 of 9 (0)JLL Jones Lang LaSalle Americas,Inc. Hotels&Hospitality Group INTELLECTUAL PROPERTY Notwithstanding any term in this letter agreement to the contrary, JLL shall retain all right, title, and interest in any and all intellectual property: (i) created by JLL prior to this letter agreement, including (without limitation) JLL's proprietary software programs and processes for providing services and (ii) created by JLL during the term of this letter agreement in the normal course of business for JLL's clients generally. Any and all worked created for the benefit of Augusta, Georgia becomes the property of Augusta, Georgia without any limitation for subsequent use. JLL MARKETING Notwithstanding anything set forth herein or in any other agreement between the parties to the contrary, Client grants to JLL the right to utilize the Client's name,logo,project photographs owned by Client,and a summary oftheJLL services provided in JLL's marketing materials forexternal distribution. WAIVER A Waiver on the part of Client or JLL of any term, provision or condition of this letter agreement shall not constitute a precedent or bind either party to a waiver of any succeeding breach of the same or any other term, provision or condition of this letter agreement. NOTICE Any information or notices required to be given in writing under this letter agreement shall be deemed to have been sufficiently given if delivered either personally,by certified mail or overnight to the address of the respective party set forth below,or to such other address for either party as that party may designate by written notice. For Client: ForJLL: Geri Sams Jones Lang LaSalle Americas, Inc. Procurement Director 200 East Randolph Street City of Augusta Chicago, Illinois 60601 535 Telfair Street Attn:Kristin Schneider Augusta,GA 30901 With a copy to: Jones Lang LaSalle Americas, Inc. 200 East Randolph Street Chicago, Illinois 60601 Attn:General Counsel Page 8 of 9 JLI: Jones Lang LaSalle Americas,Inc. Hotels&Hospitality Group INVOICES AND PAYMENTS JLL shall invoice Client from time to time for its fees,expenses and costs incurred during that billing period. Client agrees to pay each invoice within thirty(30) days of receipt. However, if Client objects to all or any portion of any invoice, Client shall so notify JLL within fifteen (15) days from receipt, give reasons for the objection, and pay that portion of the invoice not in dispute within thirty (30) days of receipt of the invoice in question. All invoices shall be submitted for payment to the address provide on each invoice. Payment of an invoice is indicative of that portion of work being complete and the revenue earned. Delinquent payments hereunder shall earn interest at the rate of one and one-half percent (1-1/2%) per month from the date due until paid. LITIGATION COSTS/JURY WAIVER In the event there is any litigation between Client and JLL with respect to the subject matter of this agreement, the prevailing party shall be entitled to recover its reasonable attorneys' fees and disbursements in such litigation from the other party.THE PARTIES HEREBY WAIVE TRIAL BY JURY. The law of the State of Georgia shall govern the CONTRACT between CITY and CONSULTANT with regard to its interpretation and performance,and any other claims related to this agreement. All claims,disputes and other matters in question between CITY and CONSULTANT arising out of or relating to the Agreement, or the breach thereof, shall be decided in the Superior Court of Richmond County, Georgia. The CONSULTANT, by executing this Agreement, specifically consents to jurisdiction and venue in Richmond County and waives any right to contest the jurisdiction and venue in the Superior Court of Richmond County, Georgia MISCELLANEOUS This letter agreement, including any Exhibits and any addenda thereto, constitutes the entire agreement between JLL and Client. It supersedes all prior or contemporaneous communications, representations or agreements, whether oral or written, relating to the Services set forth in this letter agreement. This letter agreement may be amended only by a written instrument signed by both parties. However for modifications to this Agreement involving non-material changes in scope and fees, consent to such modification may be given via email and shall be binding upon the parties to this Agreement. If any term or provision of this letter agreement is construed or held to be void, invalid or unenforceable by order, decree or judgment of a court of competent jurisdiction, the remaining terms and provisions of this letter agreement shall not be affected thereby but shall remain in full force and effect. To the extent the terms and conditions on this Exhibit A conflict with the attached agreement, the terms and conditions of Exhibit A shall prevail. This letter agreement shall be governed and interpreted pursuantto the laws of the State of Georgia. Page 9 of 9