Agenda Item Name:
Title
Request to Proceed to Negotiate with the Most Responsive Proposer for a Sports Events Center
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Presenter:
James K. Harriott, Jr., P.E., Deputy County Manager
Description:
This presentation will brief the Board on prior steps taken with respect to the unsolicited proposal related to a Sports Events Center and requests direction to proceed to negotiate terms of an agreement with the most responsive proposer.
Recommended Action:
Recommended Action
Hear presentation and direct staff to negotiate a term sheet for the financing, construction and operation of a Sports Events Center with the most responsive proposer. And 2) bring back the results of negotiations for the Board’s consideration.
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Prior Board Motions:
At the October 15, 2019 Board Meeting Commissioner Byerly moved direct staff to further explore the creation of a Sports Events Center via a partnership with Celebration Pointe Community Development District with the following ordered steps:
1) Determine public funding sources/amounts for the project.
2) Develop architectural designs and construction cost estimates.
3) Conduct a Celebration Pointe parking demand study and determine cost and Funding sources for additional parking stalls.
4) Establish legal parameters for venue funding and ownership.
5) Authorize a Chair letter to the City of Gainesville that provides the economic impacts of the Event Center to the community and request that the City get back to the Board of County Commissioners as soon as they have the necessary information to move forward with the eastern part of the City to move in a parallel path if possible. (5-0.)
At the May 7, 2019 Special Meeting Commissioner Byerly moved the following:
1. That we direct staff to expand Victus Study to include an analysis of the Celebration Pointe Site and include as needed an analysis of the range of Public and/or Private Ownership models and to work with the Celebration Community Development District to come up with those numbers.
2. Direct staff to prepare a business model / operational analysis for all three of the sites we have been considering for public investment; Celebration Pointe,
Cabot Koppers and the MLK Site.
3. Direct Staff to draft an Interlocal Agreement for consideration by the
Commission for investments of Community Redevelopment Agency (CRA) funds and Wild Spaces Public Places funds for the Citizens Field and Cabot
Koppers sites. This should include a timeline for the development.
4. Authorize a Chair Letter to request that the Event Center be a topic of discussion at our Joint Meeting in June with the City of Gainesville.
The motion carried 5-0.
Fiscal Consideration:
Fiscal Consideration
None at this time. No budget exists at this time.
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Background:
In June 2020, the Board received an unsolicited proposal from Celebration Pointe Holdings (CP Holdings) to develop a Sports Events Center to be located in Celebration Pointe. A request for competing proposals was issued in September 2020 with a due date of 5PM October 21. The request was posted to the Florida Administrative Register, advertised in the Gainesville Sun, on the County’s Website, and County Procurement’s Demandstar. In addition, all Alachua County City Managers were contacted and a press release issued to generate greater awareness of the opportunity.
No competing proposals were received by the County.
The original proposal proposed the County finance the construction of the Sports Event Center using tourist development tax revenues. CP Holdings would assume operational control of the Sports Event Center and assume responsibility to fund operations from revenues of the project. Tourist development tax revenues are dedicated to supporting the tourism and associated hospitality industries. The community will benefit overall if Celebration Pointe is selected as the Sports Events Center location.
Victus Advisors has estimated that this project at Celebration Pointe would:
1) Generate net impacts over a period of 30 years with a net present value (NPV) of approximately $1.2 billion in total economic output,
2) $392 million in wages, and
3) nearly $24 million in County sales tax revenues,
4) and County tourist development taxes.
5) In addition, it is estimated that up to 1,150 incremental annual jobs could be supported by this new economic activity.
6) Brings $12 million/year in hotel spending and 116,760 room nights.
7) Land does not need to be bought and is shovel ready.
This enhanced economic activity addresses the peaks and valleys of hotel stays and hospitality industry by stabilizing the revenue stream over the course of a year. The programing from a sports events facility fills gaps in the tourism sporting calendar and grows a critical market opportunity along a high visitation corridor.
Location to a highly-used transportation corridor, with adjacent supporting retail and hotel facilities is critical to meeting these financial objectives.
There will be no property acquisition costs as the land is being offered as part of the agreement; provided the Board pays the existing special assessment liens against the property.
Prior to receiving the proposal, Victus Advisors reviewed four potential locations for a sports events center tracking sequentially westward from Waldo Road to Celebration Pointe. The Celebration Pointe location was ranked number 1 at score of 92% and was highly recommended due to the significant supporting development, retail amenities, I-75 access and lodging opportunities. All other sites scored too low to be recommended (Waldo Road and 39th Ave: 50% score and Waldo Road and 8th Ave: 46% score) or scored marginally and are no longer available for consideration (Koppers: 67% score)
Immediate next steps would be to fully explore the terms for this development proposal options and bring back to the Board the results of the negotiations for consideration.
If agreeable to the Board, the steps after this would be to:
1) Finalize the terms sheet with associated costs and management structure which would also establish legal parameters for venue funding and ownership.
2) Begin architectural designs and construction cost estimates.
3) enter into an Operating Agreement with CP Holdings that outlines the terms of financing the construction and operation of the Sports Event Center.
4) County provides the funding for construction.
5) Construction begins.
Each step would necessitate deliberation and approval by the Board before proceeding to the next step.
Prior Market Study & Site Analysis - In January 2019, Victus Advisors completed a Market Demand Study identifying demand for a new sports events center in Alachua County with:
• At least eight (8) indoor hardwood basketball/volleyball courts,
• An indoor banked track (hydraulic or removable),
• Retractable/portable seating with upwards of 3,000 seats for championship track events, and
• Parking for up to 1,150 vehicles.
In addition, in June 2019, Victus Advisors also completed a Site Options Analysis which identified Celebration Pointe as the recommended location for a new sports events center in Alachua County. Celebration Pointe is located on the northwest quadrant of the Interstate 75 and Archer Road (SR 24) interchange in Alachua County. The Celebration Pointe site was scored as “highly recommended” due to its easy access to hotels, retail, and dining, as well as convenient highway access, all of which could maximize tourism benefits, drive visitor satisfaction and return usage, and provide the greatest opportunity for the long-term success of the proposed sports events center.
Additional Victus Advisors Analysis for the County - In June 2019, Victus Advisors was engaged again by Alachua County to conduct a business planning, operations analysis, and economic impact analysis for a new sports events center at Celebration Pointe.
This study is intended to be a first step in analyzing the partnership opportunity at Celebration Pointe, confirming the operational validity of the site, and analyzing the net benefits of the project; and thus, facilitating additional conversations between the potential project partners (i.e. Alachua County, CPCDD, and Viking Companies).
In this additional study, Victus Advisors conducted the following services and analysis, specific to the proposed Celebration Pointe site and partnership opportunity:
• Meetings in Alachua County with Viking Companies and CPCDD to discuss potential parameters and information needs for a partnership to develop a new sports events center,
• SWOT Analysis for a new sports events center at Celebration Pointe,
• Management Options Analysis for a public-private sports events center,
• Usage Projections and Operating Pro Forma under the recommended management model, and
• Economic and Fiscal Impact Analysis, incorporating Celebration Pointe development plans both with and without a new sports events center.