Staff recommendations are out and the Board of Estimates will be voting on what to do tonight . . . of course, its scheduled for closed session . . . like it always is . . .
The full report is here. 10 pages worth checking out.
BOTTOM LINE
Neither one conformed with the RFP:
Beitler: ($11M in TIF + $6.5M in land, with parking ramp and other costs $27.5M in public investment)
1. RFP #10 –No TIF for non-parking elements.The proposed retail/office elements on Block 88 are proposed as publicly owned and financed elements.
2.LOD b.-Maintain 9/30 approved workforce and labor commitments.While the response states a commitment to include labor provisions during construction and operation, it doesn’t address a commitment to the level of detailthe Council approved workforce and labor provisions of 9/30/15.
3. LOD c.-Fully below grade parking structure. Thepublic parking facilityis proposed as an above grade ramp on Block 88. The accessory parking for the hotel and apartments on Block 105 is primarily an above grade ramp.
Vermilion: ($35M in TIF + $11M in land, with parking ramp and other costs $59M in public investment)
1. RFP #10 –Lease/Purchase of land at FMV. The purchase of property rights on Blocks 88 and 105 from the City are not proposed to be acquired at fair market value.
2. LOD b. -Maintain 9/30 approved workforce and labor commitments.While the response states a commitment to include labor provisions during construction and operation, it doesn’t addressa commitment to the level of detailthe Council approved workforce and labor provisions of 9/30/15.
QUESTIONS THAT NEED TO BE CONSIDERED
Hotel:
Do you have a preference for the two hotel products that have been submitted?
Is the number of hotel rooms above 250 a material issue for you?
Does the amount of meeting space proposed complement MononaTerrace’s needs?
Is there a strong preference for the hotel to be built on Block 88 or Block 105 and if so, does that outweigh other factors in the decision?Parking:
Is the cost differential between underground versus above grade parking a cost the City is prepared to incur ($10,000 per stall X 1,000 stalls = $10 million)?
Is the loss of about 250 stalls during constructionunder the Vermillion proposal something the City is willing to accept?
Is an above ground ramp an acceptable use for the back half of Block 88?Financing:
Is the City willing to receive less than fair market value for the property rights to be acquired?
Are you willing to maximize the incremental property value at any public investment cost?Project Design:
Are there any design considerations or concerns upon your initial review of the proposals?Labor Peace:
The City Attorney’s Officebelieves a labor peace agreement for the operation of the hotel can’t be required as acondition of the Beitler team since therearen’tanypublic funds being invested in the private portion of the project. In addition, the Vermilion team has indicated concerns with the requirements as presented in the 9/30/15 adopted language.How should we proceed on this issue?
HERE’S MY QUESTION
When doe the public get to weigh in – in a meaningful way . . .
STAFF RECOMMENDED NEXT STEPS
1. The Board of Estimates determines at the February 15thmeeting whether one, both or neither proposal proceeds in the process.
2. The Board of Estimates conducts a public interview of one or both teams prior to the end of February.
3. The Board of Estimates meetsin March to:
a. addresses the relative importance of the key considerations identified in this Report;
b.recommends a development team to negotiate with and directs the next steps to be carried out by the City Negotiating Team(The City Negotiating Team believes a Term Sheet will have to be completed with the selecteddevelopment team by the end of June 2016 to meet the timing issues identified for TID #25).
End of March –Project chosen
April 15, 2016-TIF review materials submitted
May 31 –Term sheet signed End of June –Term sheet for financing (CC -June 7, BOE -June 13, approved by CC -June 21)
July 19 -Project Plan –CC intro
9/2016 -JRB Approval
October 31, 2016 (Statutory deadline) Certification materials to DOR
4. The Common Council receives and concurs in the direction recommended by the Board of Estimatesprior to any additional work by the CityNegotiating Team.
