HomeMy WebLinkAboutContract 45034 (2)OCikTARY
CONT _ -T2I WO.
CITY OF FORT WORTH, TEXAS
AND
FORT WORTH CONVENTION AND VISITORS BUREAU
AGREEMENT FOR MARKET AND FEASIBILITY ANALYSIS SERVICES
This AGREEMENT is between the City of Fort Worth, a Texas home -rule
municipality (the "CITY"), the Fort Worth Convention and Visitors Bureau, a Texas non-
profit corporation ("CVB") and Hunden Strategic Partners, Inc., an Indiana corporation (the
"CONSULTANT") (collectively referred to as the "Parties"), for a "PROJECT" generally
described as: Provide Market and Feasibility Analysis Services for the City of Fort Worth
and Fort Worth Convention and Visitors Bureau.
Article I
Scope of Services
Scope of Services for the PROJECT is set forth in Attachment A,
incorporated herein. The Parties agree that all services the CONSULTANT
is to provide under the Scope of Services are professional services, the
essence of which is to provide advice, judgment or opinion (the "Services").
Article II
Compensation
A. The CONSULTANT'S compensation shall be an amount up to $162,000 as
further detailed in Attachment B incorporated herein.
B. The City and CVB are individual payors to the CONSULTANT and the Parties
agree that payments will be made in accordance with Attachment B.
CONSULTANT shall only have a remedy or cause of action against the Party
who fails to pay pursuant to the schedule.
C CONSULTANT understands and agrees that the amount set forth in this Article
II, A. is maximum amount. This Agreement may be performed in phases, as
detailed in Attachment A, with payments for each phase detailed in Attachment
B. City and CVB may jointly or severally elect to terminate this Agreement
prior to commencement of Phase II by giving CONSULTANT written notice as
provided for in Article VI, Termination.
Article III
Terms of Payment
Payments to the CONSULTANT will be made as follows:
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OFFICIt
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F6; 4ORTN, TX
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RECEIVEfl OCT 2 2013
A. Invoice and Payment
(1) The CONSULTANT shall provide the City, with copies to CVB, with
sufficient documentation, including but not limited to meeting the
requirements set forth in Attachment A to this AGREEMENT, to reasonably
substantiate the invoices.
(2) The CONSULTANT will issue invoices to City and CVB for all work
performed under this AGREEMENT as specified in Attachment B Invoices
are due and payable within thirty (30) days of receipt and shall be paid in the
following order CVB pay Kickoff, Third and one-half of Fifth invoices and
City pays Second, Fourth and one-half of Fifth invoices.
(3) Upon completion of Services, the final payment of any balance will be
due within thirty (30) days of receipt of the final invoice.
(4) In the event of a disputed or contested billing, only that portion so
contested will be withheld from payment, and the undisputed portion will be
paid. The CITY and CVB will exercise reasonableness in contesting any bill
or portion thereof No interest will accrue on any contested portion of the
billing until mutually resolved.
(5) If the CITY or CVB fails to make payment in full to CONSULTANT for
billings contested in good faith within 60 days of the amount due, the
CONSULTANT may, after giving 7 days written notice to CITY and CVB,
suspend services under this AGREEMENT until paid in full. In the event of
suspension of services, the CONSULTANT shall have no liability to CITY
and CVB for delays or damages caused to the CITY or CVB because of
such suspension of services.
Obligations of the Consultant
herein.
Article IV
Amendments to Article IV, if any, are included in Attachment C, incorporated
A. General
The CONSULTANT will serve as the CITY'S and CVB's professional
consultant under this AGREEMENT, providing the Services outlined in
Attachment A.
Standard of Care
The standard of care applicable to the CONSULTANT'S services will be the
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degree of skill and diligence normally employed in the State of Texas by
professional engineers or consultants performing the same or similar
services at the time Services are performed.
C. Consultant's Instruments of Service
Any studies, reports, sketches, drawings or other documents prepared by
P ROFESSIONAL CONSULTANT in the performance of the Services
("Instruments of Service") are the property of the CITY and CVB. Upon (a)
completion of the Services and payment in full by CITY and CVB for said
S ervices, (b) termination of this AGREEMENT, or (c) as otherwise instructed
by the CITY and CVB, the Instruments of Service shall be delivered to the
CITY and CVB in an organized fashion with CONSULTANT retaining a
copy.
CITY and CVB may use such Instruments of Service in any manner it
desires; provided, however, that the CONSULTANT shall not be liable for
any use or modification to the Instruments of Service by any other entity
without the express written consent of CONSULTANT.
D. Preparation of Consultant Preliminary Concept Designs in Potential
Phase Two Alternate
The CONSULTANT will provide to the CITY and CVB the original Reports
and drawings in electronic files in Word and pdf format or as otherwise
approved by CITY and CVB, which shall become the property of the CITY
and CVB.
E. Preliminary Opinions of Probable Costs for Preliminary Concept
Designs in Potential Phase Two Alternate
(1) The CONSULTANT shall provide opinions of probable costs for the
PROJECT based on the information available to CONSULTANT at the
time the opinion is issued, in accordance with Attachment A
(2) In providing opinions of cost, financial analyses, economic feasibility
projections, and schedules for the PROJECT, the CONSULTANT has
n o control over cost or price of labor and materials; unknown or latent
conditions of existing equipment or structures that may affect operation
o r maintenance costs; competitive bidding procedures and market
conditions time or quality of performance by third parties; quality type
management, or direction of operating personnel; and other economic
and operational factors that may materially affect the ultimate
PROJECT cost or schedule Therefore, the CONSULTANT makes no
warranty or guarantee that the CITY'S and CVB's actual PROJECT
costs, financial aspects, economic feasibility or schedules will not vary
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from the CONSULTANT'S opinions, analyses, projections, or
estimates, and shall not be responsible for damages alleged to arise
from such an opinion.
F. Right to Audit
(1) CONSULTANT agrees that the CITY and CVB shall until the
expiration of five (5) years after final payment under this contract, have
access to and the right to examine and photocopy any directly pertinent
books, documents, papers and records of the CONSULTANT involving
transactions relating to this contract. CONSULTANT agrees that the CITY
and CVB shall have access during normal working hours to all necessary
CONSULTANT facilities and shall be provided adequate and appropriate
work space in order to conduct audits in compliance with the provisions of
this section. The CITY and CVB shall give CONSULTANT reasonable
advance written notice of intended audits.
(2) CONSULTANT further agrees to include in all its subcontractor
agreements hereunder a provision to the effect that the subcontractor
agrees that the CITY and CVB shall, until the expiration of five (5) years
after final payment under the subcontract have access to and the right to
examine and photocopy any directly pertinent books, documents, papers
and records of such subcontractor, involving transactions to the subcontract,
and further, that the CITY and CVB shall have access during normal
working hours to all subcontractor facilities, and shall be provided adequate
and appropriate work space, in order to conduct audits in compliance with
the provisions of this article together with subsection (3) hereof CITY and
CVB shall give subcontractor reasonable advance written notice of intended
audits.
(3) CONSULTANT agrees to require of any subcontractor an
obligation to photocopy such documents as may be requested by the CITY
and CVB. The CITY and CVB agree to reimburse CONSULTANT for the
cost of copies at the rate published in the Texas Administrative Code in
effect as of the time copying is performed.
G. Insurance
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(1) CONSULTANT'S INSURANCE
a. Commercial General Liability — the CONSULTANT shall maintain
commercial general liability (CGL) and, if necessary, commercial umbrella
insurance with a limit of not less than $1,000,000.00 per each occurrence
with a $2,000,000.00 aggregate If such Commercial General Liability
insurance contains a general aggregate limit, it shall apply separately to this
PROJECT or location.
i. The CITY and CVB shall each be included as an insured under
the CGL, using ISO additional insured endorsement or a
substitute providing equivalent coverage, and under the
commercial umbrella, if any This insurance shall apply as
primary insurance with respect to any other insurance or self-
insurance programs afforded to the CITY or CVB. The
Commercial General Liability insurance policy shall have no
exclusions by endorsements that would alter or nullify
premises/operations, products/completed operations, contractual,
personal injury, or advertising injury, which are normally contained
within the policy, unless the CITY and CVB approve such
exclusions in writing.
ii. CONSULTANT waives all rights against the CITY and CVB and
their agents officers, directors and employees for recovery of
damages to the extent these damages are covered by the
commercial general liability or commercial umbrella liability
insurance maintained in accordance with this AGREEMENT.
b. Business Auto the CONSULTANT shall maintain business auto liability
and, if necessary commercial umbrella liability insurance with a limit of
not Tess than $1 000,000 each accident. Such insurance shall cover
liability arising out of 'any auto', including owned hired, and non -owned
autos, when said vehicle is used in the course of providing Services for
the PROJECT. If the CONSULTANT owns no vehicles, coverage for
hired or non -owned is acceptable
CONSULTANT waives all rights against the CITY and CVB and
their agents officers, directors and employees for recovery of
damages to the extent these damages are covered by the
business auto liability or commercial umbrella liability insurance
obtained by CONSULTANT pursuant to this AGREEMENT or
under any applicable auto physical damage coverage
c. Workers' Compensation —CONSULTANT shall maintain workers
compensation and employer's liability insurance and, if necessary,
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commercial umbrella liability insurance with a limit of not less than
$100,000.00 each accident for bodily injury by accident or $100,000.00
each employee for bodily injury by disease, with $500,000.00 policy limit.
i. CONSULTANT waives all rights against the CITY and CVB and
their agents officers directors and employees for recovery of
damages to the extent these damages are covered by workers
compensation and employer's liability or commercial umbrella
insurance obtained by CONSULTANT pursuant to this
AGREEMENT.
d. Professional Liability — the CONSULTANT shall maintain professional
liability, a claims -made policy, with a minimum of $1,000,000.00 per
claim and aggregate The policy shall contain a retroactive date prior to
the date of the contract or the first date of services to be performed,
whichever is earlier. Coverage shall be maintained for a period of five (5)
years following the completion of the contract. An annual certificate of
insurance specifically referencing this PROJECT shall be submitted to
the CITY and CVB for each year following completion of the contract.
(2) GENERAL INSURANCE REQUIREMENTS
a. Certificates of insurance evidencing that the CONSULTANT has
obtained all required insurance shall be delivered to the CITY and CVB
prior to CONSULTANT proceeding with the PROJECT.
b. Applicable policies shall be endorsed to name the CITY and CVB each
as an Additional Insured thereon, as their interests may appear. The
terms CITY and CVB shall include their respective employees, officers,
officials, agents, and volunteers with respect to the Services.
c. Certificate(s) of insurance shall document that insurance coverage
specified in this AGREEMENT is provided under applicable policies
documented thereon.
d. Any failure on part of the CITY and CVB to request required insurance
documentation shall not constitute a waiver of the insurance
requirements.
e. A minimum of thirty (30) days' notice of cancellation or of a material
change in coverage shall be provided to the CITY and CVB A ten (10)
days' notice shall be acceptable in the event of non-payment of premium
Such terms shall be endorsed onto CONSULTANT'S insurance policies.
Notice shall be sent to the respective Department Director (by name)
and to the CVB pursuant to the Notice provision in Article VI. k
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f. Insurers for all policies must be authorized to do business in the State of
Texas and have a minimum rating of A:V or greater, in the current A.M.
Best Key Rating Guide or have reasonably equivalent financial strength
and solvency to the satisfaction of Risk Management.
g.
Any deductible or self insured retention in excess of $25,000.00 that
would change or alter the requirements herein is subject to approval by
the CITY and CVB in writing, if coverage is not provided on a first -dollar
basis. The CITY and CVB, at their sole discretion, may consent to
alternative coverage maintained through insurance pools or risk retention
groups Dedicated financial resources or letters of credit may also be
acceptable to the CITY and CVB.
h. Applicable policies shall each be endorsed with a waiver of subrogation
in favor of the CITY and CVB as respects the PROJECT.
i. The CITY and CVB shall be entitled, upon request and without incurring
expense, to review the CONSULTANT'S insurance policies including
endorsements thereto and, at the CITY's and CVB's discretion; the
CONSULTANT may be required to provide proof of insurance premium
payments
j•
If commercially reasonable, lines of coverage underwritten on a "claims -
made basis," other than Professional Liability, shall contain a retroactive
date coincident with or prior to the date of this AGREEMENT. The
certificate of insurance shall state both the retroactive date and that the
coverage is claims -made.
k. Coverages, whether written on an occurrence or claims -made basis,
shall be maintained without interruption nor restrictive modification or
changes from date of commencement of the PROJECT until final
payment and termination of any coverage required to be maintained after
final payments.
I. The CITY and CVB shall not be responsible for the direct payment of any
insurance premiums required by this AGREEMENT.
m. Subcontractors to/of the CONSULTANT shall be required by the
CONSULTANT to maintain the same or reasonably equivalent insurance
coverage as required for the CONSULTANT. When sub subcontractors
maintain insurance coverage, CONSULTANT shall provide CITY and
CVB with documentation thereof on a certificate of insurance.
H. Independent Consultant
The CONSULTANT agrees to perform all services as an independent
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CONSULTANT and not as an, agent, or employee of the CITY or CVB.
I. Disclosure
The CONSULTANT acknowledges to the CITY and CVB that it has made
full disclosure in writing of any existing conflicts of interest or potential
conflicts of interest, including personal financial interest, direct or indirect, in
business relationships with neighboring cities. The CONSULTANT further
acknowledges that it will make disclosure in writing of any conflicts of
interest that develop subsequent to the signing of this contract and prior to
final payment under the contract.
Schedule
CONSULTANT shall manage the PROJECT in accordance with the
schedule developed per Attachment A to this AGREEMENT.
Article V
Obligations of the City
Amendments to Article V, if any, are included in Attachment C.
A. City -Furnished Data
CONSULTANT may rely upon the accuracy, timeliness, and completeness
of the information provided by the CITY and CVB.
B Access to Facilities
The CITY and CVB will make its facilities accessible to the CONSULTANT
as required for the CONSULTANT'S performance of its Services The CITY
and CVB will be responsible for all acts of their respective personnel.
C. Timely Review
The CITY and CVB will examine the CONSULTANT'S Instruments of
Service, obtain advice of an attorney, insurance counselor, accountant,
auditor, bond and financial advisors, and other consultants as the CITY and
CVB deem appropriate; and render in writing decisions required by the CITY
and CVB in a timely manner in accordance with the PROJECT schedule
prepared in accordance with Attachment A.
D. Prompt Notice
The CITY and CVB will give prompt written notice to the CONSULTANT
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whenever CITY or CVB observe or become aware of any development that
affects the scope or timing of the Services or of any defect in the Services
E. Changes
The CITY and CVB may make or approve changes within the general Scope
of Services in this AGREEMENT. If such changes affect the
CONSULTANT S cost of or time required for performance of the Services,
an equitable adjustment will be made through an amendment to this
AGREEMENT with appropriate CITY and CVB approval.
If the CONSULTANT is required by the CITY and CVB to perform services
outside the Scope of Services ('Additional Services"), CONSULTANT shall
be compensated for the Additional Services on a time and materials basis
Such Additional Services and compensation therefor shall be agreed to in
writing and incorporated into this AGREEMENT as an amendment.
Article VI
General Legal Provisions
Amendments to Article VI, if any, are included in Attachment C.
A. Authorization to Proceed
CONSULTANT shall be authorized to proceed with this AGREEMENT upon
receipt of a written Notice to Proceed from the CITY and CVB
Force Majeure
The CONSULTANT is not responsible for damages or delay in performance
caused by acts of God strikes, lockouts, accidents, or other events beyond
the control of the CONSULTANT that prevent CONSULTANT'S
performance of the Services .
Termination
(1) a.) This AGREEMENT may be terminated by the CITY and CVB for
convenience on thirty (30) days' written notice.
b.) This AGREEMENT may be terminated by either the CITY and
CVB or the CONSULTANT for cause if either party fails substantially to
perform through no fault of the other and does not commence correction of
such nonperformance with in five (5) days of written notice and diligently
complete the correction thereafter.
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(2) If this AGREEMENT is terminated for the convenience of the CITY
and CVB the CONSULTANT will be paid for termination expenses as
follows.
a.) Cost of reproduction of partial or complete Instruments of
Service;
b.) Out-of-pocket expenses for purchasing electronic data files
and other data storage supplies or services;
c.) The time requirements for the CONSULTANT'S personnel to
document the work underway at the time of the CITY's and CVB's
termination for convenience so that the work effort is suitable for long
time storage.
(3) Within ten days of receipt of a notice of termination, the
CONSULTANT will submit to the CITY and CVB an itemized statement of all
actual or anticipated termination expenses. The CITY and CVB reserve the
right to review and withhold approval of all or a portion of the claimed or
anticipated termination expenses. Disputed amounts will be resolved as
provided for in Article III.
D. Suspension, Delay, or Interruption to Work
The CITY and CVB may suspend, delay, or interrupt the Services for the
convenience of the CITY and CVB. In the event of such suspension, delay
or interruption, an equitable adjustment in the PROJECT'S schedule,
commitment and/or cost to the CONSULTANT for personnel and
subcontractors, and/or in the CONSULTANT'S compensation, will be made.
E. Indemnification
In accordance with Texas Local Government Code Section 271.904, the
CONSULTANT shall indemnify and hold harmless the CITY and CVB
against liability for any damage caused by or resulting from an act of
negligence, intentional tort, intellectual property infringement, or
failure to pay a subcontractor or supplier committed by the
CONSULTANT or CONSULTANT S agent, consultant under contract, or
another entity over which the CONSULTANT exercises control
F. Assignment
No party shall assign all or any part of this AGREEMENT without the prior
written consent of the other parties.
G. Interpretation
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All indemnifications and limitations on liability in this AGREEMENT are
business understandings between the parties and shall apply to all the
different theories of recovery, including breach of contract or warranty, tort
including negligence, strict or statutory liability, or any other cause of action,
except for willful misconduct or gross negligence for limitations of liability and
sole negligence for indemnification. Parties, as used herein, means the
CITY, the CVB and the CONSULTANT, and their respective officers,
employees, agents, and subcontractors.
Jurisdiction
The laws of the State of Texas shall govern the validity of this
AGREEMENT, its interpretation and performance, and any other claims
related to it. The venue for any litigation related to this AGREEMENT shall
be Tarrant County, Texas or the United States District Court, Northern
District, Fort Worth Division.
Severability and Survival
If any of the provisions contained in this AGREEMENT are held for any
reason to be invalid illegal, or unenforceable in any respect, such invalidity,
illegality, or unenforceability will not affect any other provision, and this
AGREEMENT shall be construed as if such invalid, illegal, or unenforceable
provision had never been contained herein. Articles IV F., IV G., VI E , VI F.,
VI H., and VI I. shall survive termination of this AGREEMENT for any cause.
J. Observe and Comply
CONSULTANT shall at all times observe and comply with all federal and
state laws and regulations and with all City ordinances and regulations
which in any way affect this AGREEMENT and the Services hereunder, and
shall observe and comply with all orders, laws ordinances and regulations
which may exist or may be enacted later by governing bodies having
jurisdiction or authority for such enactment. No plea of misunderstanding or
ignorance thereof shall be considered. CONSULTANT agrees to defend,
indemnify and hold harmless CITY and all of its officers, agents and
employees from and against all claims or liability arising out of the
violation of any such order, law, ordinance, or regulation, whether it be
by itself or its employees.
Notice
Any notice or request mentioned in this AGREEMENT shall be in writing and
may be effected by personal delivery in writing or by registered or certified
mail, return receipt requested, addressed to the proper party, at the following
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addresses:
CONSULTANT:
Representative: Robin Scott Hunden, Hunden Strategic Partners, 920 N.
Franklin St , Ste. 303, Chicago, IL 60601, 312/643-2500
CITY:
Representative: Kirk Slaughter, Events Department, City of Fort Worth, 1000
Throckmorton, Fort Worth, Texas 76102, PH,
CVB:
Representative: Bob Jameson, President and CEO, Fort Worth Convention
& Visitors Bureau, 111 W. 4th Street, Suite 200, Fort Worth, Texas 76102-
3951, 817.698.7822
Notice provided by electronic mail with copies of correspondence sent as an
attachment(s), may be substituted for formally sent notice provided express written
receipt of acceptance requested by the sending party and supplied by the intended
receiving party to the sending party. Electronic mail transmission of documents
requiring notice without requesting or receiving such acknowledgement shall be
deemed courtesy notice, only.
Article VII
Attachments, Schedules, and Signatures
This AGREEMENT, including its attachments and schedules, constitutes the entire
AGREEMENT, supersedes all prior written or oral understandings, and may only be
changed by a written amendment executed by both parties. The following attachments
and schedules are hereby made a part of this AGREEMENT:
Attachment A - Scope of Services
Attachment B — Compensation and Payment Schedule
Attachment C - Amendments to Articles IV, V, and VI.
Executed and effective as of the last date subscribed by a signatory hereto.
CONSULTANT:
r
7
By:
Robin Scott Hunden
CITY OF FORT WORTH:
Market & Feasibility Analysis Services (October 2013)
Hunden Strategic Partners
By:
Susan E. Alanis
OFFICIAL RECORD
CITIT $ECRE'1'ARYa3e1z of 16
Ft WORTH, TX
Date:
President
Date: l0 \Lb\
FORT WORTH CONVENTION & VISITORS
BURE
Assistant City Manager
Date:
APPROVAL � JOMMENDED:
By: By: /
Bab\Jareson Ki 'Slaughter, Director
President and CEO Public Events Department
1+75\ it?
APPROVED AS TO FORM AND LEGALITY:
Douglas W. Black
Assistant City Attorney
M&C C Z6 5.-p
Date: /v-i5evi`�
ATTE& •
Mary J. Kayser
City Secretary
•
•
OFFICIAI. RECORD
CATV SECRETARY
ro WORTH, TX
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ATTACHMENT A
SCOPE OF SERVICES
Refer to the attached Hunden Strategic Partners Scope of Services for the City of
Fort Worth and the Fort Worth Convention and Visitors Bureau. If any conflict arises
between the Attachments/Exhibits and the Agreement the terms of the Agreement shall
control.
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P‘ TA SCOPE OF RVIC
HSP presents the following suggested scope of work, which will takes a comprehensive approach to
answering the critical questions being asked within this study.
PHASE I
A - General Project & Market Orientation
• Task A.1 - Kickoff, Project Orientation, Interviews, Prior Study Review. Meet with key
stakeholders, tour facilities, review all prior analyses, and gather data.
Task A.2 - Economic, Demographic and Tourism Analysis. Profile Fort Worth as an
economic region and tourism destination, with a complete profile, focused on
downtown and nearby areas.
B - Convention Center Competitiveness Analysis
• Task B.1 Review of Event Facility Performance & Physical Attributes; Lost Business
Analysis. What is working, what is not highly occupied? What are users and potential
users saying?
• Task B.2 - Meetings Industry Analysis and Trends, Implications for Fort Worth
Task B.3 - Competitive Convention Center & Hotel Destination Analysis; Competitive
Advantages and Disadvantages, Areas for Opportunity
Task B.4 - FWCC Arena Adaptive Reuse Analysis.
Task B.5 - Meeting Planner Survey/Interviews: Perceptions of Fort Worth, Opportunity
for expanded events with improved facilities.
C - Hotel Analysis
Task C.1 Hotel Market Analysis and Competitive Set Performance Review. Detailed and
complete hotel market study, including opportunity analysis, market segmentation, key
drivers, lost business.
Task C.2 - Interviews and Survey Work to determine opportunity, challenges, strengths
to leverage.
Task C.3 - Profile of Comparable & Competitive Convention Hotel Developments with all
key details and metrics. Competitive positioning analysis, opportunity for funding
assistance for new key hotel additions.
D - Entertainment/Dining/Nightlife Analysis
Task D.1 Review of Sundance Square and other Nearby Leisure Time Options. What is
missing? How is walkability for meeting planners/event attendees? Are there gaps in
offerings? What are implications for enhanced offerings?
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Task D.2 - Brief Profile of Comparable & Competitive Entertainment Districts. What can
be learned from Kansas City, Louisville, Baltimore, Austin, San Antonio and others with
compelling visitor districts?
E - Marketing & Operating Resource Analysis
Task E.1 - Review of CVB Budget and Current Resources. Compare with peers in Texas
as well as nationwide. How does Fort Worth compare? Are there funding trends that
should be investigated?
Task E.2 - Review of FWCC & Will Rogers Operating Resources. What are opportunities
for additional revenues (in-house and from outside sources)?
F - Governance Profiles
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Task F.1 Profile various governance structures at other convention facilities across the
U.S. to determine pro's and con's. Profiles will include facilities operated by authorities,
CVBs and city departments. Implications will be discussed.
Task F.2 - Review of the performance profile of the FWCC conducted previously in the
report.
G - Recommendations and Projections
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Task G.1 - Recommendations
o Convention Center Complex & Related Event Facilities
o Hotel(s) and timing thereof
o Support Amenities; Connectivity to Sundance Square
o Marketing Resources
o Operating Resources
Task G.2 - Projection of Demand and Financials for Each Component
Task G.3 - Development Cost Estimates and Financial Feasibility Analysis
Task G.4 - Economic, Fiscal and Employment Impact Analysis
POTENTIAL PHASE II ALTERNATE
Preliminary Concept Designs & Budgeting
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Develop and refine the preliminary concept designs recommended by HSP's Phase I
programming suggestions.
Analyze the potential connectivity between a new facility or renovated and expanded
facility with the existing facility. The same will be considered for any hotels
recommended.
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The designs will be developed enough to determine preliminary construction cost
estimates for the expanded and/or new facilities, including convention facilities, hotels
and other support amenities, such as expanded leisure activities.
All tasks and results of both phases will be presented to the Client in a fully documented report
format to be sent in PDF format as a draft to the Client for review, which will be followed by a final
draft or final study as determined with the Client HSP is also able to distill its findings into a
presentation format to be used in meetings or other forums suggested by the Client. HSP will
communicate with the Client in an ongoing basis and will provide preliminary recommendations
and indications as appropriate. HSP will be responsive to the Client's needs.
PHASEI
Task A. General Project and Market Orientation
Task A.1: Kickoff, Project Orientation, Interviews, Prior Study Review
Hunden Strategic Partners professionals will meet with the Client group to confirm the goals of the
study and other contextual issues related to the project. HSP will also review available data related
to the project, identify those contacts and resources necessary to ensure complete review and
assessment of critical issues as well as perform the following orientation and due diligence oriented
tasks:
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Obtain information and data from economic development officials, the City of For
Worth, the Fort Worth Convention and Visitors Bureau and their respective support
staffs and any other appropriate governmental agencies.
Tour the area, the convention center, hotels and meet with the local officials, community
leaders, current and potential facility users and others identified in consultation with
the Client.
Interview stakeholders from a variety of local private and public organizations and
perform fieldwork as appropriate.
Review the various projects on which HSP professionals have worked, discuss their
attributes, implementation and approach as part of the interview with the Client and
others as previously described HSP will explore the applicability of prior projects to the
proposed assignment and will strive to gain insight into the community's attitude
toward new meeting and/or hotel facilities.
Gather and analyze background information related to the project, including any
previously completed facility, meetings and hotel market analyses. HSP will also review
any others related to major event facilities.
Gather and review available economic, demographic and financial data.
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Task A.2: Economic, Demographic and Tourism Analysis
HSP will evaluate the community's position as an economic center of activity as well as a destination
for overnight visitors. These visitors may include those in town for meetings, events, those related
to business travel professional, leisure university events, special event and sports visitors, or those
in Fort Worth for other reasons. HSP will also summarize key demand generator trends and
comment on the overall growth prospects for the market. This analysis will provide a realistic
assessment of the area's strengths, weaknesses, opportunities and threats (SWOT). Among the data
gathered and analyzed will be:
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Geographic attributes, accessibility and transportation links.
Trends in population growth and income.
Corporate presence, major employers and any significant recent or likely future
changes.
Analysis of business and commercial development that may affect the performance of
meeting and hotel facilities.
Higher education activity and implications for the market and project.
• Cores of economic activity.
• Major retail destinations.
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Public assembly and other meeting and sports facilities locally and regionally.
Arts, culture and entertainment assets and activity.
History and expected future trends for tourism.
Downtown development projects and trends.
General real estate trends, with special emphasis on meeting facilities and major
demand generators.
The analysis will provide implications for the future development of convention, entertainment,
hotel or related facilities
Task B. Convention Center Competitiveness Analysis
Task B.1: Review of Event Facility Performance & Physical Attributes
Physical. In this task the HSP Team will reflect on the tours taken during the kickoff to profile the
physical attributes of the current convention center Strengths and weaknesses will be identified as
well as opportunities for improvement. Threats of the status quo will also be discussed, as certain
users may have space or functionality concerns with the current layout and sizing or functionality of
rooms.
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Business History & Staff/CVB Interviews. HSP will also profile the historical attendance, event
counts and financial performance of the facility to show changes over time The changes will include
showing the impact of the last expansion as well as the opening of the Omni. How has the nature of
the business mix changed with these improvements? What limitations are being felt by staff and
users as well as the CVB?
All of these reviews will provide implications for adjustments and next steps for the FWCC, as well
as potential hotel development. In the case of the arena portion of the FWCC, implications may
include impacts for a new arena at the Will Rogers Memorial Center.
Task B.2: Convention Industry Analysis and Trends
HSP will assess industry trends by conducting a review of the existing meetings and convention
market, its performance and potential for expansion of the market in Fort Worth. To better
understand current industry trends and meeting planner preferences, HSP will profile the health of
the meeting industry and discuss the various factors making up the industry. This will provide the
Client with a strong grasp on the current forces shaping building development, including trends for
various types of event growth This task will include:
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Meeting facility and event center supply growth and Fort Worth's current position for
this market relative to its population and location in the market.
Demand trends for conventions, conferences and tradeshows.
Meeting planner preferences.
Meetings needs of local corporate market.
Hotel and other amenity preferences.
Event types and definitions.
Facility types and definitions.
This will also an excellent backdrop for understanding the City's current position and where it likely
should improve in order to optimize its position.
Task B.3: Competitive Convention Center & Hotel Destination Analysis
HSP will analyze the facilities that serve the meetings and event market around the state of Texas,
the region and nationally relevant competitors and compare them as part of a competitive set
selected for Fort Worth. Included in the analysis:
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Detail on the existing offerings in state, regional and nationally competitive markets and
their suitability for conventions, conferences, trainings and meetings. This comparison will
document any physical deficiencies or characteristics that may inhibit development of
future business. All meeting space and amenities will be profiled.
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Detail on the existing hotel offerings in the "walkable" environment, the central business
district and the citywide environments. Any new or relevant convention hotel developments
will be noted and profiled.
Compare other key statistics that will put Fort Worth in context, including:
o Population,
o Air lift, growth,
o Crime,
o History of hosting major sports/other events,
o Tourism appeal. and
o Entertainment districts of note.
Identify gaps in the market and discern whether new facilities fill these gaps.
Interview managers of at least three comparable facilities to collect additional information
on facility trends and development of case study data about these facilities
Review tourism or destination marketing budget size and sufficiency
Summarize and analyze our experience in comparable and competing markets, along with
identification of what critical factors should address in order to continually be successful in
the meetings market.
HSP will also profile the most competitive convention centers and gather performance data as
available. HSP will consider:
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Conventions
Corporate Trainings
Trade shows
Local expositions
Conferences/corporate meetings
Large assembly events
Public/consumer shows/local events
Entertainment events
Banquets
Meetings
The results of this analysis will yield implication for the meeting spaces (ballroom, auditorium,
meeting rooms, board rooms, etc.) that should be included in any recommended facilities.
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Task B.4: FWCC Arena Adaptive Reuse Analysis
An arena component exists in the current FWCC and a new one was envisioned to be developed at
the Will Rogers complex as part of the 2012 Olympic Bid Proposal. Additional consideration is
needed to update the findings in a 1996 Coopers and Lybrand Study that suggested construction of
a new 8,000-seat arena near the WRMC Coliseum while holding the FWCC arena as land bank for
future convention center expansion. This part of the study will be focused on the potential adaptive
re -use of the FWCC Arena.
HSP will complete a convention market analysis as part of the adaptive reuse analysis study. In this
task, HSP will study the market in Fort Worth for convention events and compare that with the
current facilities as well as any proposed facilities. The prior analysis of the FWCC Arena will figure
into this analysis. . HSP will profile:
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Current Size of Facilities
Location
Access
Visibility
Condition
Historical attendance
Revenues and expenses
Events by type
HSP will also interview staff at the facilities as well as the CVB to understand the limitations of the
current facilities as well as the perceived opportunity with improved facilities
After considering the prior analysis, the proposed adaptive reuse of the FWCC Arena will be profiled
and recommendations regarding whether to move forward with proposed facility improvements
will be made.
Task B.5: Meeting Planner Survey/Interviews.
In this portion of the analysis, HSP will collect the contact info of key current users so HSP may
contact them for their perspective on the FWCC hotel package and other destination attributes.
These will provide perhaps the best testimony about the needed improvements in the Forth Worth
package. Critical users will be interviewed, while a larger group of potential users will be surveyed
using an online methodology.
HSP will rely on the CVB and FWCC to gather the list of users and potential users to be surveyed and
interviewed.
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Task C. Hotel Analysis
Task C.1: Hotel Market Analysis
Because of the critical supporting role hotels play in accommodating events, the feasibility of
meeting center facilities cannot be determined without such an analysis. Such a task would
contribute to determining the current and probable future hotel room base to serve Fort Worth in
general and new meeting facilities in particular Accordingly HSP will analyze the existing local
hotel supply and interview management to determine demand segmentation. The analysis will
determine the proximate quality room count, CBD room count as well as the community -wide room
count. Proximate quality room count is a metric developed by HSP to understand the room block
available within walking distance of a certain location, such as a convention or conference center.
The analysis will include the following primary analysis components:
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Overview of U.S. lodging industry performance and trends.
Profile of the local lodging market, including number, size and quality of hotels and
performance trends.
Additions to supply, including any proposed hotels, in and around the development area
and relevant surrounding areas.
Character of supply.
Demand segmentation and diversification efforts. What percentage of demand comes
from transient, group and leisure business, respectively? How can new, unique supply
induce additional demand to the market? What segments have the best opportunity for
demand expansion? How does seasonality impact the results?
Meeting and function space availability within hotels.
This information will provide an understanding of the larger market and the availability of hotel
rooms and market needs to serve new meeting facilities.
HSP will then analyze the competitive set of hotels in the downtown area. The hotels will then be
profiled regarding quality, room count, function space, ownership/branding location/proximity to
demand generators demand segmentation, occupancy, rate and other measures. HSP will discuss
how many hotel rooms should be available within walking distance of any new meeting facilities,
based on the analysis of the competitive convention centers, and if these should be in one hotel, or a
collection of hotels. The analysis will include a discussion of how this need can be accommodated by
existing supply and what new or expanded hotels should be developed to accommodate an
expanded facility.
This will be followed by HSP conducting a historical supply and demand analysis of the competitive
set of hotels to determine the market into which any recommended hotel(s) will be entering. This
will include:
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Tracking of occupancy, monthly room night demand, average daily rate (ADR) and
Revenue per Available Room (RevPAR),
Performance by:
o Year,
o Month,
o Week and
o Day of week,
Seasonality,
Unaccommodated demand, and
Demand type/market mix.
HSP will discuss how new hotels have been absorbed into the competitive set and how any
additions or renovations have impacted the performance of the competitive set, not to mention the
impact of the expanded FWCC. The report will provide conclusions on the ability of these
improvements to induce more demand from each major market segment. Market segmentation
within the set will also be shown in three primary categories:
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Commercial transient
Group (both corporate group, association, and other)
Leisure
This will set the stage for the penetration and performance projection for the recommended hotel.
Task C.2: Interviews and Survey Work
In this task, which is critical for both the local set as well as the competitors across the region
(Austin, Dallas etc.), HSP will interview hoteliers in the competitive set locally and in the major
hotels in Texas Oklahoma and appropriate hoteliers in the competitive convention markets across
the U.S. The results of these interviews will tell us much about how they have succeeded or not in
their respective markets and why. This will provide implications for what to do/not to do as Fort
Worth seeks success in its next steps. This task will also be a part of the next task the profile of
comparable and competitive convention hotels.
Task C.3: Profile of Comparable & Competitive Convention Hotel Developments
Much can be learned from the experience of other cities (including Fort Worth's experience with the
Omni) as it considers additional convention hotel developments. HSP will profile the convention
hotel 'industry," as it were, as well profile several relevant deals that have occurred in the past five
to ten years. These profiles will include information such as:
■ Size, Amenities, Function Space
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Location
Cost
Year built/opened
Developer, Owner & Operator
Deal Structure
Political Issues
Performance, if known
Lessons Learned
Other data, as appropriate
Task D. Entertainment/Dining/Nightlife Analysis
Task D.1: Review of Sundance Square and Proximate Leisure Options
The development and availability of restaurants, bars, clubs, leisure time activities and
entertainment has become more of an expectation than an amenity for many meeting planners and
those selecting cities for major events. In order to compete effectively, especially in Texas, a
compelling offering of options for food, beverage and entertainment should be continually
increasing near the hospitality district.
Sundance Square has already made downtown Fort Worth one of the more attractive downtowns in
Texas and the region for walkable leisure time activities, but Fort Worth is competing with the ever -
burgeoning options and reputation of the River Walk in San Antonio and Austin's 6th Street.
Sundance Square is currently undergoing a transformation that will see it host ESPN during the
2014 Final Four and so has established itself in the Metroplex as a the downtown district" of the
area better than anything offered in Dallas. However, there may be ways to both enhance that
district and better connect it to the FWCC hospitality zone.
HSP will review the offerings of the new Sundance Square and analyze the space between the FWCC
and Sundance to determine how these two areas could be better linked.
Task D.2: Review of Peer City Entertainment District Offerings
HSP will also provide a summary review of other downtown districts to show what those areas
offer and their proximity to their convention districts. Recommendations and implications will be
provided.
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Task E. Marketing & Operating Resource Analysis
Task E.1: Review of CVB Budget & Current Resources
HSP will review the revenues and expenses of the Fort Worth CVB as well as the budgets of major
CVBs around the state and region to understand how Fort Worth compares in terms of their overall
funding as well as allocation of resources
The report will also include a discussion of funding trends that will suggest opportunities for the Fort Worth CVB to
include 5 - 10 year forecast of HOT revenues given current state with reasonable assumptions of inventory growth;
and apply projections against reasonable cost assumptions for FWCVB and FWCC/WRMC.
Are there new and innovative sources of funding that may be available? HSP will investigate.
Task E.2: Review of the FWCC & Will Rogers Operating Resources
HSP will review the financial revenues and expenses associated with the FWCC and the Will Rogers
Memorial Center and note observations and suggest implications accordingly. HSP will also review
other convention center financials to understand how facilities around the country operate in terms
of overall revenues and expenses. If there are opportunities for more revenues or creative ways to
reduce expenses, HSP will investigate and report. These may include naming and sponsorship
revenues as well as savings related to bulk purchases amongst multiple public facilities.
Task F. Governance Profiles
Task F.1: Profile of Governance Profiles
In this task, HSP will profile several operating and governance structures for the marketing,
management, funding and overall responsibility matrix for convention centers across the U.S.
Specifically, HSP will profile the CVB-managed option that has been utilized in Memphis,
Minneapolis and St. Louis as well as the authority model that works in a number of cities, including
Indianapolis. The city -operated model in Texas will also be discussed and profiled.
Pro's and con's of each approach will be discussed and implications proffered. HSP will work with
the Client to present the data it feels it needs to make informed judgments about governance
structures.
Task F.2: Fort Worth Convention Center Governance
This portion of the work will provide a recap of the FWCC operating profile and having analyzed
governance trends suggest implications for the FWCC. Would any other operating structure by
itself positively impact the FWCC's results? If so, how, why and how much? If not, why not? If it
depends, upon what does it depend? Execution is everything and the "devil is in the details," so are
some structures inherently better or not? HSP will discuss.
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Task G. Recommendations and Projections
Task G.1: Recommendations; Conceptual Drawings & Budgets
Understanding the competitive market and the comprehensive prior analyses, HSP will make
recommendations regarding every significant facet of the recommended facilities, including the
convention center, hotel(s), arena facilities, connectivity to Sundance Square, as well as marketing
and revenue/expenses strategies to improve performance:
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Convention Center:
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Upgrades, changes, renovations, expansion removal of facilities, addition of
amenities. Programming detail will be provided for each item including sizing of
exhibit, ballroom and meeting space, back of house, catering capacity, arena issues,
entry/circulation, amenities and other items, as appropriate
The design component of the HSP Team will provide conceptual drawings for the
recommended changes to the FWCC as well as order of magnitude budgets
Hotel(s)
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Hotel size(s), location, meeting facilities, quality and amenities.
Branding and concepts will be recommended, as appropriate.
The design component of the HSP Team will provide conceptual locational drawings
for the recommended hotels as well as order of magnitude budgets, while HSP will
provide funding gap estimates for any recommended hotels.
Arena
• HSP will recap the arena facility recommendations, including any specific
adjustments to the current plan.
Fort Worth Convention Center Funding Resources
• HSP will provide recommendations to increase the FWCC's funding resources.
Fort Worth Convention & Visitor's Bureau Funding Resources
• HSP will provide recommendations to increase the FWCVB's funding resources.
Connectivity to Sundance Square
• HSP will provide recommendations to improve the connectivity between the FWCC
and Sundance Square as well as any long-term improvements to the leisure time
experience downtown.
Task G.2: Projection of Demand and Financials for Each Component
In this task, HSP will analyze specific information that will allow a determination of how the market
will absorb the recommended meeting and hotel facilities over time, providing a ten-year
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performance projection. With reference to a hotel, the question HSP will ultimately answer is: How
will the proposed hotel perform in regard to occupancy, rate and revenue per available room
(RevPAR).
For the meeting facilities, the projection will include demand by type of event, annually, with
average attendance. The analysis will consider:
■ Conferences and conventions
■ Corporate Trainings
■ Trade shows
■ Local expositions
■ Conferences/corporate meetings
■ Assembly events
■ Public/consumer shows/local events
■ Entertainment events, by type
■ Banquets
■ Meetings
■ Local Events
Based on the projection of demand and applying a number of assumptions regarding room rental
rate, food and beverage per -caps and others, HSP will prepare a financial projection for the
proposed meeting facilities. This financial analysis includes the following'
Estimate revenues for ten years of operations. Expenses directly related to the meeting
facility will also be projected for the period. The demand profile, experience with other
similar facilities and data from the existing facility will be used to model the operating
revenues and costs of the new facility or facilities and will be incorporated into the business
plan. The model will generate a proforma operating statement that includes the revenue and
expense items, including the following:
o Revenues: rooms, food and beverage, space, space and equipment rentals, reimbursed
expenses, telecommunications, audio/visual, decorating electrical and other income,
o Direct operating expenses: wages and salaries, contract services, utilities, maintenance
and repair, supplies and other expenses,
o Unallocated expenses: administrative salaries, employee benefits, advertising and
promotion, general and administrative, professional services, insurance, maintenance
reserves and other expenses.
For the hotel(s):
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Perform a market penetration analysis for the proposed facility and estimate future
room -night demand, occupancy, and ADR.
Include assumptions for competitive market demand growth, induced demand,
recapture of demand and unaccommodated demand based on earlier analysis and
penetration and inducement capability of the proposed meeting facility
Each market segment will be assessed, including leisure, commercial, and group.
Average rate for each segment will be analyzed and projected.
Project capture of existing demand from the competitive set and outside the set.
In preparing development budget assumptions for this task, HSP will rely on actual
development cost information extracted from its database of convention center
development costs that HSP personnel have accumulated from projects they have
worked on or been associated with over the past several years.
Task G.3: Development Cost Estimates and Financial Gap Analysis
The HSP design team will work with HSP to develop preliminary cost estimates for each of the
major recommended facilities, including the convention center and proposed hotel(s).
Based on the revenue from the hotel versus the cost, HSP will present a model showing the return
on investment or 'gap' that exists to fund the projects under conventional scenarios. If there is a gap,
HSP will review and investigate the various public -private options that have been employed in
other similar situations, as previously discussed in the report. This estimate of a financing gap will
help prepare the Client for what developers would seek when asked to develop the recommended
hotels.
For the convention center, the budget will be funded publicly. The estimates will be advanced and
refined as the designs are in future phases, if anything is recommended at all.
Task G.4: Economic, Fiscal and Employment Impact Analysis
HSP will conduct an economic, fiscal and employment impact analysis to determine the direct,
indirect and induced impacts, including the tax revenues that will be generated by the
recommended facilities (hotel(s) and FWCC changes, if any) in Fort Worth. Based on the above
analysis, a projection of net new direct spending will be tabulated. New spending is that spending
that is new to the community as visitors come to Fort Worth due to new facilities, spend the night or
otherwise spend time or money in Fort Worth. HSP will analyze the spending by local residents
(transfer spending) and discuss the amount that is recaptured For example, due to the existence of
activity generated by a meeting facility, economic activity occurs as local residents pass up
opportunities to leave the area to spend money. Instead of going to an event in another area, the
event keeps their spending within the area. This is considered to be recaptured demand. The net
new and recaptured direct spending is considered to be the Direct Impacts.
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From the direct spending figures, further impact analyses will be completed.
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Indirect Impacts are the supply of goods and services resulting from the initial direct
spending. For example, an attendee's direct expenditure on a ticket to an event causes
the center to purchase concessions and other items from suppliers. The portion of these
concession purchases that are within the local economy is considered an indirect
economic impact.
Induced Impacts embody the change in local spending due to the personal expenditures
by employees whose incomes are affected by direct and indirect spending. For example,
a waitress at a restaurant may have more personal income as a result of the attendee's
visit. The amount of the increased income that the employee spends in the area is
considered an induced impact.
Fiscal Impacts represent the incremental tax revenue collected by the City, County and
State due to the net new economic activity related to the meeting facility as well as
impacts on local property values around each site For example, our analysis will
estimate the hotel and other tax revenue from an overnight stay by an attendee and
considers this a fiscal impact. The fiscal impact represents the government's share of
total economic benefit. Fiscal impacts provide an offset to the potential public
expenditures at the meeting facility. HSP will identify the taxes affected and conduct an
analysis of the impact on these accounts and governmental units.
Employment Impacts include the incremental employment provided not only onsite, but
due to the spending associated with the meeting facility. For example, the direct
indirect and induced impacts generate spending support new and ongoing businesses,
and ultimately result in ongoing employment for citizens. HSP will show the number of
ongoing jobs supported by the project and provide the resulting income and income
taxes generated.
Hunden Strategic Partners uses one of the industry's most relied upon multiplier models, IMPLAN.
This input-output model estimates the indirect and induced impacts, as well as employment
impacts based on the local economy. An input-output model generally describes the commodities
and income that normally flow through the various sectors of the economy. The indirect and
induced expenditure, payroll and employment result from the estimated changes in the flow of
income and goods caused by the projected direct impacts. The model data are available by various
jurisdictional levels.
POTENTIAL PHASE II ALTERNATE
Task: Preliminary Concept Designs & Budgeting
The HSP Team will develop and refine the preliminary concept designs recommended by HSP's
Phase I programming suggestions. This will include:
■ Site test fit studies, including several options,
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Bulk programming,
Conceptual drawings
Conceptual perspectives
Strategy, and
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The HSP Team will analyze the potential connectivity between a new facility or renovated and
expanded facility with the existing facility. The same will be considered for any hotels
recommended.
This scope does not include significant 3D imagery or detailed renderings.
The designs will be developed enough to determine preliminary construction cost estimates for the
expanded and/or new facilities, including convention facilities, hotels and other support amenities,
such as expanded leisure activities.
Timing
The timing for Phase I is currently estimated at 16 weeks from the kickoff meetings in Fort Worth.
Various components may be advanced if it is determined to be more time sensitive. Preliminary
findings, Powerpoint presentations and drafts will be issued during this time for Client
consideration, review and editing. After preliminary drafts have been reviewed HSP will work
quickly to advance second and final drafts based on the edits and suggestions of the Client. The
timing will be dependent upon timing of reviews and conference calls (or meetings) with the Client.
The timing for Phase II is estimated to be 4-6 weeks from kickoff or notice to proceed.
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ATTACHMENT B
COMPENSATION AND PAYMENT SCHEDULE
Market & Feasibility Analysis Services (October 2013) Page 15 of 16
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Attachment B- Compensation
Fees
The estimate of time associated with each component is shown on the following page. HSP is aware
of the budgetary constraints of the Client and therefore is proposing a lump sum for each phase of
work that totals $150,000 plus an expense budget of $12,000.
HSP proposes that travel and research expenses be billed in addition to the lump sum work (at 100
percent of cost) with a not to exceed budget, as shown below. In total, the lump sum budget for both
phases is proposed at $150,000 with a not -to -exceed expense budget of $12,000. The first phase fee
is proposed at $130 000, with $20 000 in the second phase. The travel and expense budget will
cover both phases and would be billed as expenses were incurred along with HSP's monthly billing
This assumes the CVB or FWCC staff can assist in securing low-cost rates at the key convention
hotel properties near the FWCC during HSP Team visits. HSP will keep travel and research costs to a
minimum to maximize the number of visits. HSP has a Southwest Companion pass that allows one
HSP professional to fly free, which will assist in maximizing the travel budget.
The timing proposed for Phase I billing is as follows:
Kickoff Invoice: Billed at signing of contract and due within two weeks of the kickoff
meeting in Fort Worth, $26,000
Second Billing: Billed after preliminary work has been completed with confirmation of
preliminary work by FWCC and CVB staff (no sooner than 4 weeks after kickoff),
$26,000 plus expenses to date
Third Billing: Billed after preliminary recommendations have been made via
conference call and/or presentation to FWCC and CVB (no sooner than 8 weeks after
kickoff), $26,000 plus accrued expenses
Fourth Billing: Billed at delivery of the draft report, $26,000 plus accrued expenses
Fifth Billing: Billed at delivery of the final Phase I report, $26,000 plus accrued
expenses
The timing proposed for Phase II billing is as follows:
• Kickoff Invoice: Billed at notice to proceed on Phase II, $10,000 plus accrued expenses
• Final Invoice: Billed at completion of Phase II, $10,000 plus accrued expenses
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Payments, including kickoff payment maybe sent to:
Hunden Strategic Partners
920 N. Franklin St., Suite 303
Chicago, IL 606010
(312) 643 2500
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ATTACHMENT C
AMENDMENTS TO ARTICLES IV, V, AND VI
NONE
Market & Feasibility Analysis Services (October 2013) Page 16 of 16
Hunden Strategic Partners
M&C Review
Page 1 of 2
DATE:
CODE:
SUBJECT:
REFERENCE
NO.:
TYPE
Official site of the City of Fort Worth, Texas
FORT WORTH
COUNCIL ACTION: Approved on 10/15/2013 - Ordinance No. 21003-10-2013
10/15/2013
C
C-26509
NON -
CONSENT
Authorize Execution of a Tripartite Professional Services Agreement Between the City of
Fort Worth, the Fort Worth Convention and Visitors Bureau, and Hunden Strategic
Partners, Inc., for Market and Feasibility Analysis Services for the City of Fort Worth's
Downtown Hospitality Market in the Overall Amounts Not to Exceed $162 000.00 and
$20,000.00 for Contingency and Staff Time for an Overall Project Amount of $182,000.00
with the Bureau and the City Each Paying One -Half of the Contract Costs and Adopt
Supplemental Appropriation Ordinance (COUNCIL DISTRICT 9)
25MARKETSTUDY
LOG NAME•
PUBLIC
HEARING:
NO
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt a supplemental appropriation ordinance increasing receipts and appropriations in the
Culture and Tourism Fund in the amount of $91,000.00 decreasing the assigned Culture and Tourism
fund balance by the same amount; and
2. Authorize the execution of a Professional Services Agreement between the City of Fort Worth, the
Fort Worth Convention and Visitors Bureau and Hunden Strategic Partners, Inc., an Indiana
Corporation for market and feasibility analysis services for the City of Fort Worth's downtown
hospitality market in a total amount not to exceed $182,000 00 with the Fort Worth Convention and
Visitors Bureau and the City of Fort Worth each paying one-half of the contract costs in the amount of
$91 000 00.
DISCUSSION:
The purpose of this Mayor and Council Communication is to seek authorization to execute a
Professional Services Agreement (Agreement) between the City of Fort Worth (City), Fort Worth
Convention and Visitors Bureau (CVB) and Hunden Strategic Partners, Inc. (HSP), for market and
feasibility analysis of Fort Worth's downtown hospitality market including market demand for
convention type hotels and a future expansion of the Fort Worth Convention Center with the CVB and
the City each sharing in one-half of the contract costs.
The proposed Agreement will consist of two phases. As part of Phase I, HSP will provide market and
feasibility analysis services to identify the potential for short-term and Tong -term growth in the City's
hospitality market and the economic impact of such growth as a result of the anticipated population
increases within the City. If the market and feasibility analysis supports consideration of a future
convention center expansion/modernization project, then the City may authorize HSP to conduct a
Phase II assessment, which would consist of HSP providing preliminary concept designs, cost
estimates, and funding options for enhancements to the Fort Worth Convention Center that will
maximize potential benefits.
The City is the 16th largest city in the United States. It is anticipated that by the year 2040, Fort
Worth will have a population of 1,199,673. A review of major Texas cities indicates that Fort Worth's
hospitality market as demonstrated by the collection of the Hotel Occupancy Tax revenue is
significantly Tess than its competitor cities despite strong revenue per available room in the downtown
hotel market. Additional study is necessary to identify the potential for growth of Fort Worth's overall
httn: //anps . cfwnet. org/council_packet/mc_review. asp? ID=19076 &councildate=10/ 15/2013 10/23/2013
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hospitality market and resultant economic impact.
On May 14 2013, the Public Events Department and the CVB staff recommended to City Council that
a Request for Qualifications (RFQ) be issued for a third -party industry consultant to identify the
potential for the growth and development of Fort Worth s hospitality market.
The City advertised the RFQ in the Fort Worth Star -Telegram on July 8, 2013 and July 15, 2013 for
the market and feasibility analysis. Statements of Qualifications (SOQ) were received on August 8,
2013 from five firms. On August 21, 2013, a selection committee consisting of four members two
each from the City and the CVB met to review the qualifications and decided to interview the five
firms. On September 3 2013, the selection committee interviewed the five firms and based on the
SOQ and interview, recommends HSP for this project.
The total Market and Feasibility Analysis services cost are not expected to exceed:
Consultant $162,000.00
Contingency, Staff $ 20.000.00
Total $182,000.00
The City and CVB will engage HSP and will assist with the performance of the Agreement. Financial
participation by the City will be in the amount not to exceed $91,000.00 inclusive of the City's
$10,000.00 contingency set aside.
M/WBE Office. Hunden Strategic Partners, Inc., is in accordance with the City's Business Diversity
Enterprise Ordinance. This work was solicited under the guidelines of the Business Diversity
Enterprise Ordinance's M/WBE Prime Program. Therefore, no M/WBE subcontracting goal was
set. Instead, to encourage M/WBEs to submit proposals as the prime, incentive points were made
available to allocate to M/WBE primes.
This project is in COUNCIL DISTRICT 9, but will serve ALL COUNCIL DISTRICTS.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that upon adoption of the attached
supplemental appropriation ordinance, funds will be available in the current operating budget, as
appropriated, of the Culture and Tourism Fund. Upon approval, the assigned fund balance of the
Culture and Tourism Fund will exceed the minimum reserve as outlined in the Financial Management
Policy Statements.
TO Fund/Account/Centers
GG04 531200 0240600 $91.000.00
FROM Fund/Account/Centers
GG04 531200 0240600 $91.000.00
GG04 531200 0240600 $811000.00
Submitted for City Manager's Office bv: Susan Alanis (8180)
Oriainatina Department Head: Kirk Slaughter (2501)
Additional Information Contact: Betty Tanner (2502)
ATTACHMENTS
25MARKETSTUDY A014.doc
http://apps.cfwnet org/council_ packet/mc_review.asp7ID=19076&councildate=10/15/2013 10/23/2013