Backup — original pdf

Backup

$12M Creative Space Bond Updates 9/11/2020 JOINT ARTS & MUSIC COMMISSION MEETING 1 Agenda • Where we’ve been • Why this bond is unique • Procurement process • Where we are now • Questions? Joint Arts & Music Commission * September 11, 2020 2 JOINT ARTS & MUSIC COMMISSION MEETING Where we’ve been WORKING GROUP AND CITY ACTIONS 2018 TO DATE Joint Arts & Music Commission * September 11, 2020 3 Working Group (WG) Timeline and Process Winter 2018-19 (WG) Forms and meets Mar–May 2019 Community Survey June 2019 Joint Arts & Music Commission public input Sept– Nov 2019 WG finalizes recs. Dec. 2019 – Jan 2020 Arts & Music Commissions ratify recs. Joint Arts & Music Commission * September 11, 2020 4 Arts & Music Commission Recommendations • • • • Specifically address historic inequities Alleviate the affordability crisis and rapid loss of creative affordable space Flexible multi-use space dedicated for arts and music but open and accessible to public City owned but built / operated by non-City partners Joint Arts & Music Commission * September 11, 2020 5 Arts & Music Commission Recommendations EQUITY AMENITIES • Operational management’s leadership • Flexible rehearsal spaces to include small • Free or significantly reduced rate creative space to underserved/ marginalized individuals/groups. • Equal opportunity for project participation. Strategic partnerships will be allowed. (No pay to play.) • RFP process must include targeted outreach to historically underserved/ marginalized populations. rooms for bands/theater companies/performance artists to rehearse • Performance venue with a capacity of at least 50 seats (may include outdoors) • Visual arts studio and gallery space(s) • Educational space(s) Joint Arts & Music Commission * September 11, 2020 6 Arts & Music Commission Recommendations PARTNERSHIPS Total project(s) costs cannot exceed $12,000,000 unless the funding gap is fully funded by the proposing partner/team of partners. LOCATION • E of I-35, W of US-183 • S of Lady Bird Lake, N of Ben White (HWY-71) • Downtown (Lady Bird Lake to MLK and I-35 to MoPac) • N of 30th St., S of US-183 Joint Arts & Music Commission * September 11, 2020 7 Procurement Development Process Nov – April 2020: Determine Procurement Process April – June 2020: Refine Procurement Process w/ WG Recommendations June – Aug 2020: Onboard Procurement Consultant Team Sept – Oct 2020: Issue RFI Joint Arts & Music Commission * September 11, 2020 8 JOINT ARTS & MUSIC COMMISSION MEETING Why this bond is unique BOND PARAMETERS Joint Arts & Music Commission * September 11, 2020 9 G.O. Bond-Funded Construction Projects Four Key Parties Involved  Proposition B (Cultural Facilities)  Unnamed Location  Unnamed Partner  Generalized Use Joint Arts & Music Commission * September 11, 2020 10 Libraries, Museums and Cultural Facilities Continuum along public vs. economic development use (Illustrative) Public (ex. Library)  Clear public purpose  Public ownership  No profit (recoup costs)  Open public access Economic Development  Private benefit  Private ownership   For profit (above costs) Limited access Zach Scott AFS Mexic-Arte Joint Arts & Music Commission * September 11, 2020 11 Lessons Learned from Past Bond Projects • • • • • In the past, the City has contracted with the same entity to both construct as well as operate the facility Speed of project delivery is a function of third-party partner’s capacity to manage the project • Project budget that requires both bond funds and private fundraising requires private fundraising commitments to be secured prior to construction Expenditures of bond funds must deliver what the “contract with the voters” has specified at the end of construction The third-party entity shoulders project risk: cost overruns, all government fees, regulations that apply to private projects AND “third party” requirements • City must have Attorney General approval for the City to issue GO Bonds The farther towards the “economic development” side of the spectrum, the higher the likelihood of not passing Bond Counsel or AG muster Joint Arts & Music Commission * September 11, 2020 12 JOINT ARTS & MUSIC COMMISSION MEETING Procurement Process Joint Arts & Music Commission * September 11, 2020 13 Project Delivery Model City of Austin Delivery Partner(*) Program / Facility Operator Property Owner Third Party Agreement or Construction Contract Qualified Management Services Agreement Purchase & Sale Agreement or Ground Lease Agreement *Note: Delivery partner could be either a Fee Developer or Design-Build Contractor Joint Arts & Music Commission * September 11, 2020 14 Procurement Process – Anticipated Timeline Operator Procurement Process Prepare RFI Operators Respond to RFI Prepare Operator RFQ Operators Respond Evaluate to RFQ Quals Delivery Partner* Procurement Process Property Solicitation Process Prepare Operator RFP Operators Respond to RFP Evaluate Proposals / Interviews Award Management Services Agreement with Negotiate/Execute Qualified Operator Prepare Delivery Delivery Partners Respond to Partner RFP RFP Evaluate Proposals City Manages Design & Build Process RFI Response Review/Site Criteria Gather Facility Requirements Broker Solicitation Top 3 sites shared w/ Operators Broker Negotiates Price City Approves Contending Properties City and Bidder Access to Site City Site Due Diligence City Purchases 30-day Option on Top Site City PSA Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Month 13 Joint Arts & Music Commission * September 11, 2020 15 REQUEST FOR INFORMATION (RFI) Prepare RFI (Month 1) You are here Why do an RFI? Operators Respond to RFI (Month 2&3) RFI Responses Review (Month 3&4)  Uses the WG recommendations to prepare market interest  Provides more informed direction for development of a facility operator RFQ/RFP (partnerships, capacity, interest)  Provides strategic information to Broker for property solicitation Joint Arts & Music Commission * September 11, 2020 16 FACILITY OPERATOR PROCUREMENT Request for Qualifications (RFQ) Prepare RFQ (Month 2&3) Operators Respond to RFQ (Month 4&5) Evaluate Qualifications (Month 5)  Evaluates qualifications of potential operators in terms of experience, industry knowledge, capabilities of the team, financial capacity.  Informs criteria specific to site selection to ensure operational feasibility.  Only the top selected facility operators will be invited to submit proposals related to the top properties. Joint Arts & Music Commission * September 11, 2020 17 PROPERTY SOLICITATION PROCESS Gather Final Site Requirements through the RFI (Month 3 – 6) Solicitation of Locations through Broker (Month 6 - 7) Qualified Operators & City Review of Potential Locations (Month 7-9) Negotiations and Purchase (Month 10-13)  Informed by the RFI, the Broker will be identifying available spaces during the Facility Operator procurement process.  The Broker will evaluate sites and arrive at top sites meriting deeper review.  Top qualified operators selected during the Facility Operator RFQ and City will preview top identified sites.  Top selected Qualified Operators will be invited to submit proposals on one or several top selected sites during the Facility Operator RFP process. Joint Arts & Music Commission * September 11, 2020 18 FACILITY OPERATOR PROCUREMENT Request for Proposals (RFP) Prepare Operator RFP (Month 4 - 5) Operators Respond to RFP (Month 6 - 7) Evaluation and Award (Month 8 - 9) Negotiations (Month 11-13)  Only selected qualified operators through the RFQ process will inspect the top properties (under non-disclosure agreement).  Top Operators invited to submit proposals on the top properties of their interest (one or all).  Proposals evaluated on the soundness of the business plan on the operations of the facility based on the cost to secure and renovate the property.  Upon City Council, Attorney General and Bond Counsel approval, award facilities management agreement with the operator of the selected proposal and secure the property of the winning proposal. Joint Arts & Music Commission * September 11, 2020 19 DELIVERY PARTNER PROCUREMENT Gather Requirements and Prepare RFP (Month 8&9) Issue RFP/Evaluate Proposals (Month 9-11) Selection and Design/Build (Month 12&13)  Upon identification of available creative facilities and preferred operator team, the City will contract with a qualified delivery partner.  Delivery partner will build out the facility(ies).  Depending on the needs of the selected preferred operator team, the delivery partner could be a fee developer or a design-build contractor Joint Arts & Music Commission * September 11, 2020 20 JOINT ARTS & MUSIC COMMISSION MEETING Where we are now Joint Arts & Music Commission * September 11, 2020 21 Current Status/Next Steps Current Status: • RFI posted 8/20/20 • Responses due 9/21/20 by 5:00 P.M. For questions regarding the RFI, please submit to shawn.willett@austintexas.gov Next Steps: • Prepare Operator Request for Qualifications • Review RFI Responses for Site Criteria Joint Arts & Music Commission * September 11, 2020 22 JOINT ARTS & MUSIC COMMISSION MEETING QUESTIONS? Joint Arts & Music Commission * September 11, 2020 23 For more information visit: www.speakupaustin.org/bond-for-creative-space Christine Maguire, AICP, EDFP Redevelopment Division Manager Christine.Maguire@austintexas.gov Matthew Schmidt Project Manager II Matthew.Schmidt@austintexas.gov Joint Arts & Music Commission * September 11, 2020 24