PRE-RFQ SUBMISSION MEETINGFebruary 6, 2020

10:00 A.M.

Request For Qualification SubmittalsFOR GROUND LEASE FOR CONSTRUCTION,

OUTFITTING, & OPERATION OF BASEBALL-THEMED VISITOR EXPERIENCE

LOCATION OF PROJECT AREA2ND STREET

OSBORN ROAD

DRIN

KWATER BLVD

MILLER RO

AD

OVERIDING CITY GOALS• Submitter enters into a Ground Lease with City

• DESIGN, CONSTRUCT, OUTFIT, OPERATE, MAINTAIN & REPAIR a quality environmentally-sensitive, first-class baseball experience facility integrated with the Scottsdale Stadium

• Turn-key approach

WHY is this an RFQ? 1 of 2

• City RFP issued in August 2019 resulted in 1 non-responsive submittal

• City still interested in securing a baseball experience facility at Scottsdale Stadium

• RFQ submission must contain QUALIFICATIONS and PROPOSAL

• QUALIFICATIONS are weighted higher than PROPOSAL

WHY is this an RFQ? 2 of 2

• MAJOR CHANGE – RFP to RFQ– Competitive Factors weighted towards Organizational & Financial

Capability -- QUALIFICATIONS– Submitter has ability to finalize creation of organization and provide

evidence of QUALIFICATIONS after initial selection by Evaluation Committee

– Evaluation Committee reviews additional QUALIFICATIONS information and confirms submittal choice

– IMPORTANT NOTE: Preference is given to Submitter who addresses all QUALIFICATIONS competitive factors at the March 30, 2020 submission deadline

– RFQ Submission guarantee is reduced from $100,000 to $10,000

City Goals• Financial Goals

• Design & Construction Goals

• Service & Operations Goals

• Construction Timing Goals

• Submitter Qualification Goals

Financial GOALS• City obligation is limited to the removal and relocation of city

staff working in the existing building located on project site• City looking for measurable financial return

– Ground Lease rent– Tourism lodging nights created– Increased sales tax revenue, shared revenues

• Ground Lessee provides all project funding• Ground Lessee provides operation shortfall reserves

Design & Construction GOALS

• Optimal integration with the Scottsdale Stadium

– Shared space with City and Stadium activities (enhanced restrooms, expansion of Civic Center parking, deck & roof-top seating, Stadium field viewing area COMPLETED BY JANUARY 1, 2023)

– ARS Title 34 compliance

Service & Operation GOALS• Celebrating baseball through visitor experience facility• Complementing current Stadium architecture• Respecting programming needs within the Stadium• Serving as a year-round attraction for residents and visitors to

Scottsdale• Sharing with and tying into the amenities within the Stadium

by providing amenities such as multi-use event space, premium baseball viewing facilities, concessions (food/beverage) sales, expanded restroom facilities, and retail sales

• January 1 through March 31 of each year (Spring Training season), premium baseball viewing facilities, shared restrooms, and multi-use event space will be available exclusively by spring training entities

Construction Timing GOALS

• Demolition of existing building and facility construction cannot impact Stadium during January 1 through March 31 spring training season

• Minimize impact on multi-use availability of Stadium during remainder of the year

Submitter Qualification GOALS

• City expects to enter into Ground Lease with experienced & qualified Submitter

RFQ Timeline 1 of 2

• January 24 Request Issued

• February 6 Pre-Submittal Meeting

• February 14 Written Suggestions/Questions about RFQ

• February 24 Written Responses to Suggestions/Questions Posted on City Web Site as an Addendum

• March 30 Deadline Submittal Due by 5:00 P.M.

• March 31 City opens RFQ Submissions

• April 13 Period begins for Evaluation Committee to meet & make recommendation (may conduct interviews)

RFQ Timeline 2 of 2• May 11 Deadline for Recommended Submitter OR Second Ranked Submitter

to submit QUALIFICATIONS (evidence organizational and financial capability) to accomplish the PROPOSAL

• May 26 Period begins for Evaluation Committee to meet and to review QUALIFICATION evidence submitted on May 11 (if any), and confirm recommended Submitter selection and recommended Second Ranked Submitter if applicable, OR recommend termination of RFQ

• June 9 - July 10 Ground Lease negotiation begins with Recommended Submitter

• July 17 Recommended Submitter executes finalized Ground Lease (2 weeks before City Council Action)

• August 24 or 25 Recommended Submitter Action by City Council (tentative)

• July 27 - August 21 Ground Lease negotiation begins with Second Ranked Submitter(If Recommended Submitter fails to execute a Ground Lease)

• August 28 Second Ranked Submitter executes finalized Ground Lease (2 weeks before City Council action)

• October 6 Second Ranked Submitter Action by City Council (tentative)

Ground Lease Overview 1 of 3

• Ground Lease to demolish existing city building, & construct, maintain, and operate new facility

• Term of Ground Lease & possible extensions are proposed by RFQ Submitter

• Base Rent from date of Ground Lease is proposed by RFQ Submitter

• Rent beginning at occupancy of new facility is proposed by RFQ Submitter

• $100,000 cash security deposit• $250,000 letter of credit (additional security deposit for

performance of Ground Lease obligations)

Ground Lease Overview 2 of 3• Permitted Uses of facility are described by RFQ Submitter• Ground Lessee must use concessionaire and caterer selected

by city for Stadium food & beverage services• RFQ Submitter describes Shared Use requirements,

coordination with Spring Training activities, & how parking will be provided for the facility

• Improvements by Lessor (City) –RFQ Submitter could propose City participation at Premises and/or nearby lands

• City staff will initiate rezoning and Municipal Use Master Site Plan for property (city will consider crediting ½ of required parking spaces for facility in adjoining city parking structure)

• Lessee’s improvements become part of the city’s real property

Ground Lease Overview 3 of 3

• City maintains the existing building and exterior of project area only until city staff vacate

• Ground Lessee maintains the exterior of the existing building & premises after city vacates the building and until construction begins

• Thereafter, Lessee has all maintenance, repair and utilities obligations

• Shared Use Area maintenance will be described in Exhibit F (RFQ Submitter will propose language)

• RFQ Submittals will be evaluated based on City’s GOALS• Scoring of RFQ Submittals is based on the following

Competitive Factors – QUALIFICATIONS & PROPOSAL• QUALIFICATIONS (600 points)

– Organizational Capability – max 300 points• Submitter organization & staff qualifications; references• Team structure for baseball experience facility • Industry knowledge• Local Knowledge

– Financial Capability – max 300 points• Financial strength & viability• Capital contribution plan• Fundraising & sponsorship plan

Competitive Factors 1 of 2

Competitive Factors 2 of 2

• PROPOSAL (400 points)– Facility Design & Construction – max 150 points

• Proposed design & construction plan• Schedule and timing plan

– Operating Plan – max 150 point• Proposed term of Ground Lease & any extension(s)• Proposed annual Ground lease payment to City

– Initial Base Rent– Rent at Ground Lessee occupancy of facility

• Nature of visitor experiences• Pro forma and business plan• Programming plan• Marketing plan• Membership plan

– Economic Impact– max 100 points• Hotel room night impact• Total on/off site spending projections

Submittal Items• See RFQ Section VII for list of submittal requirements

• SUBMIT 9 COPIES OF SUBMITTAL

• 1 original contract (Exhibit D – Ground Lease Agreement) – fill in the blanks as directed

• $10,000 Submission Bond– Applied as partial ground lease security deposit for successful

Submitter– Returned to other Submitters within 7 working days after Ground

Lease negotiation period starts with selected Submitter

Questions & Answers

• Submitter can submit questions to bmurphy@scottsdaleaz.gov

• Questions & City responses will be posted to web site as addendum to RFQ by February 24

Suggestions & City Responses• Submitters can submit written suggestions for

changes to any aspect of this RFQ by February 14th

deadline to:bmurphy@scottsdaleaz.gov

• Submit bullet point list of suggestions with rationale for each

• Do not prepare proposed legal documents

• Suggestions & City Responses will be posted to web site as an addendum to the RFQ by February 24

Slides are presented for convenience only and do not supersede or supplement the terms of the RFQ

Thank you for joining us today

Questions and Answers during the Pre-RFQ Submission Meeting on February 6, 2020.

REQUEST FOR QUALIFICATIONS FROM ORGANIZATIONS TO PRESENT THEIR QUALIFICATIONS AND PROPOSALS FOR THE CONSTRUCTION,

OUTFITTING AND OPERATION OF A BASEBALL-THEMED VISITOR EXPERIENCE ON CITY PROPERTY LOCATED IMMEDIATELY NORTH OF SCOTTSDALE STADIUM IN OLD TOWN SCOTTSDALE, ARIZONA

Q: What does the City anticipate for the term of the ground lease? Will it be market rate or will there be some consideration due to the public and private partnership nature of what the city is seeking?

A: The city envisions the lease term may be similar to the San Francisco Giants lease term which is 25 years. However, the city is open to suggestions from submitters. The lease rate would initially be at market rate, however the city is open to discussions based on the envisioned shared revenues and the overall economic impact the project generates.

Q: The RFQ has requested nine (9) copies be provided when qualifications and proposals are submitted.

Has the city determined who will serve on the Evaluation Committee? A: The city has not yet determined who/what staff will be on the committee however, we envision a

member of the San Francisco Giants involvement on the committee. Q: The presentation mentioned hotel economic impact, is the city seeking only the impact from this

project, or how it impacts Scottsdale as a whole in terms of tourism? A: The city is interested in how this project could have a direct economic impact on room nights and

extended visitor stays. Q: Is the city interested in how the project is monetized -- for example what fees will be charged for

entrance into the venue? A: Yes the city is interested in how the daily fees and memberships are envisioned for the project. An

average of 150,000 people attend spring training games each year when the Giants are here for spring training.

Q: What is the San Francisco Giants involvement with the envisioned project? They would be very interested in what goes on there. They will most likely have a presence on the RFQ

submittals Evaluation Committee. Q: Outside of spring training will there be any shared access at the Stadium for the project? A: The Stadium is open year-round for activities and events. The city would entertain a shared use

concept, however not in terms of a “given right” but perhaps on a priority basis reservation system.