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Request for Proposals:
Market Analysis and Feasibility Study
for
Regional Waterpark Facility
Figure 1 (Image Courtesy of Avalon Development Holdings, Inc.)
Issued by:
Pueblo Urban Renewal Authority
Release Date:
April 19, 2015
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I.
INTRODUCTION AND BACKGROUND OF PROPOSED WATERPARK FACILITY
The Pueblo Urban Renewal Authority (PURA) is Pueblo’s redevelopment agency charged with the
elimination of slum and blight in designated project areas within the City of Pueblo. PURA is the
‘financing entity’ for the City of Pueblo’s Regional Tourism Act (RTA) project, a three-phase, multiyear, capital improvement project anticipated to bring a minimum of $116 million in public and
private financing into downtown Pueblo over the course of the next 10-15 years.
Phases I and II of Pueblo’s RTA project are currently in the pre-development phase (design
development) with PURA acting as master developer under a cooperation agreement with the
City of Pueblo, and include: the addition of an exposition hall to the Pueblo Convention Center;
the creation of the PBR University training facility; and, the Gateway Plaza/Heritage Plaza
outdoor venues.
Phase III is still in the early conceptual phase, and includes the creation of a regional aquatic
center and indoor water park resort facility. However, there is a possibility that PURA may have
the potential to leverage existing RTA revenues within a public-private partnership (PPP) model
to greatly expand the scale and scope of the project. However, to proceed further with the
development of an expanded waterpark facility, PURA requires an independent market feasibility
study.
PURA has established a feasibility study budget in partnership with Avalon Development
Holdings, Inc. of Houston, Texas, but the firm selected to be master developer of the Expanded
Phase III RTA project will be selected through a competitive solicitation process. Specific design
elements to be address in the market analysis and feasibility study include: area/regional
demographic analysis, an overview of the proposed site, a recommendation for an appropriate
project scale and preliminary cost estimate, a market analysis with identification of potential
market-share competitors, proposed annual visitation figures and price point analysis, a financial
analysis of construction and operation of the facility, an economic impact analysis including
anticipated tax revenue and visitor spending resulting from the project, and a recommendation
for the most efficient cost-to-revenue configuration of the waterpark facility.
The planned location of the regional aquatic center and indoor waterpark facility, including an
extension of the existing Pueblo Riverwalk, any associated hotel(s), parking and other ancillary
development, is the area immediately east of I-25 and downtown Pueblo, south of Gruma Drive,
north of the Runyon Field baseball fields, and west of the Fountain Creek (see Exhibit #1). The
current ownership of the area is a mix of private, corporate and governmental entities, but
acquisition at market rates and assembly of the parcels in question is a possibility. There are
known environmental issues on at least some of the property in question, which may limit the
specific uses of these sites.
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II.
PROJECT DESCRIPTION OF PROPOSED RIVERWALK DISTRICT IMPROVEMENTS
The Existing Pueblo Riverwalk Environment
The City had a vision of creating a regional destination along the scenic and historic Arkansas
River, which serves as the geographic location of Pueblo’s RTA project. The original Arkansas River
stone has been incorporated into the wall design, creating a historic setting and theme which is
carried throughout the project. As you stroll along the riverfront you will encounter plazas perfect
for special family gatherings, private celebrations, festivals and community events. Along the
Riverwalk, take a minute to enjoy the diverse sculptures, statues, and ceramic murals that
enhance the experience of the area. Over 25 bronze animals are embedded in the landscape
along the pedestrian path. Stone and bronze fountains, indigenous plants and hand-carved
benches create the cultural interest and peaceful tranquility that visitors enjoy.
Since the late 1990’s PURA and the City of Pueblo have had many successes within the existing
development. To date the development has incorporated along the river and nearby many
venues. Venues include the Pueblo Convention Center. The convention facility features more
than 21,000 square feet of meeting space, including a 16,200 square foot premium exhibit hall
and ballroom, 3,000 square feet broken up into five inviting meeting rooms, and a generous 2,120
square foot pre-function lounge. Furthermore, along the scenic Pueblo Riverwalk you will find
the Historic Memorial Hall. The building was dedicated on September 25, 1919 by President
Woodrow Wilson at his last public address and was named as a memorial to those who died in
World War I. Memorial Hall is notable for a number of singular performance events; it hosted
President Woodrow Wilson’s final public address shortly before its official opening. There are
many architecturally significant features in the auditorium. The proscenium is comprised of
intricately detailed plaster ornament and includes two level-side boxes and grillage housing the
historic Austin Orchestral Pipe Organ. The pipe organ, features between 4,000 and 5,000 pipes
varying in size from a few inches to 32 feet in length and represents 62 different instruments. It
has served as the anchor of the regional cultural community for more than nine decades. Also,
headquartered in Pueblo, Colorado, the Professional Bull Riders features more than 1,200 bull
riders from across the globe. Also, located along the Pueblo Riverwalk you can find several
restaurants serving numerous cuisines. Food items including: Italian, Sushi, Pizza, Burgers,
Mexican and more. In addition to the entertainment, sights, and restaurants the development
includes a Courtyard Marriott Hotel and in excess of 200,000 square feet of office facilities.
The purpose of this feasibility study is to provide guidance as to the viability of expanding the
Pueblo Riverwalk district with a regional acquatic center and indoor waterpark facility (“waterpark
facility”) as its core attraction. This study will also provide recommendations for the implementation
of the waterpark facility elements of the project at a scale that will best accommodate the
Colorado/northern New Mexico/western Kansas regional market. The project is envisioned as a
comprehensive and detailed assessment that considers all of the relevant aspects needed to
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establish the feasibility of developing the waterpark facility element of the project,
including technical, environmental, and financial analysis of the proposed facility.
The Riverwalk District Expansion Project Vision for Future Development
The vision of the Riverwalk District expansion project is to build off of the existing City of Pueblo RTA
Project, by greatly expanding the size and scope of the waterpark facility called for in Phase III of the RTA
project. By matching the RTA grant with private investor capital, the Riverwalk District expansion project
will redevelop currently blighted land, and generate increased real property taxes within the
Expanded Downtown and South Santa Fe Urban Renewal Project Areas currently administered
by PURA. The expansion of the Pueblo Riverwalk east of I-25 will be necessary to provide enough
land for the project, and will create a pedestrian connector tying the waterpark facility to the Pueblo
Convention Center, existing downtown hotels, the Union Avenue Historic District, and a host of other
downtown attractions.
A public-private partnership (PPP) would develop the infrastructure improvement plans, buy
necessary properties or condemn when necessary and work intimately together to create an
attractive and welcoming entrance from I-25 for local and regional visitors. The area would be
upgraded from its existing status, cleaned up and modernized in preparation for the Riverwalk
District expansion. A PPP with the Historic Arkansas Riverwalk of Pueblo (HARP) Boards, PURA,
and other interested partners (collectively, the “public partners”) for the purpose of: 1) creating
a vision for expansion that would make Pueblo a destination; 2) creating the mechanism for
financing and implementing that vision, and; 3) creating a maintenance, management and
operation arm to manage the newly created facilities. PURA / Developer propose working closely
with the Public Partners to develop the PPP that would master plan and control the planning,
financing, construction and management of the Riverwalk District expansion project in such a
way as to minimize the financial risk to the public partners in the development, meet and in fact
exceed the requirements of the City of Pueblo’s RTA project, and provide the public partners
significant oversight and control over the development and subsequent operation of the
Riverwalk District.
As part of future development plans for the area, the PPP may seek future feasibility studies for the
addition of a world class sports and performing arts arena, one that could house potential users
like the Colorado Ice Arena Football team, a minor league hockey team and a minor league
basketball team known as the NBA development league. The arena would be designed and
developed to allow it to be used for nationally known concert and entertainment artist.
Additionally, the concept of utilizing an expanded part of the Riverwalk into a frozen ice rink
during a portion of the winter months. Also to be addressed by a future feasibility study would the
option to incorporate rock climbing walls into a portion of an elevated parking facility.
Pueblo Urban Renewal Authority and Avalon Development Holdings, Inc. realize that once the
right vision is adopted, new primary job businesses could be attracted into possible ancillary office
campus development by working with the Pueblo Economic Development Corporation (PEDCO).
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Additional funding could also be secured throughstate and federal economic development grants.
PURA and Avalon Development Holdings, Inc. also believe that private foundation funding in the
neighborhood of $10 million may also be possible with the right partners and the right vision. For
additional information, we recommend consulting The Brookings Institution Report entitled “Turning
Around Downtown: Twelve Steps to Revitalization” by Christoper B. Leinberger as reference
material. While the report has been out several years we believe the material remains a time
tested formula of success for downtown revitalization.
III.
CONTENTS OF PROPOSAL
All proposals shall include the following information:
A. Statement of Qualifications:
1. The organization’s name, address, phone number, and contact person; basic
organizational information, including professional history, and/or company information.
2. Identify the individuals, firms and sub-consultants who will be the utilized for this project.
Describe professional qualifications and availability for this project.
B. Methodology for conducting the feasibility analysis a project work plan that includes a
detailed inventory of all major tasks, listing of all proposed personnel by task, proposed hours
of prime consultant and sub-consultants, and a listing of all datasets and assumptions to be
used in developing the analysis.
E. Provide a schedule/timeline for completion of all work.
F. Fee Estimate/Scope of Work: Provide a cost proposal for the tasks below. The cost proposal
should be broken down by tasks. All reimbursable costs must be identified and include a unit
price, i.e. per mile, per sheet, per hour, etc. No reimbursable costs will be allowed that have
not been clearly identified and priced.
Required Components of the Market Analysis & Feasibility Study:
1) Regional Demographic and Socio-economic Analysis.
a. Population trends, household sizes and economics, area and regional economics
(i.e. Colorado, Northern New Mexico, Western Kansas), area transportation
infrastructure
2) Site Overview and Existing Conditions.
a. Evaluate feasibility of proposed site, including availability of wet and dry utilities,
highway access, drive time radii for numbers of available persons, visibility,
topography, any known environmental issues.
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3) Proposed Waterpark Facility Development Recommended Scale and Cost Estimate
a. Recommend a scale of development that will be sustainable from a cost/revenue
and demographic analysis. Provide a cost estimate for the necessary capital
improvements.
4) Market Analysis and Identification of Potential Market-share Competitors
a. Thorough analysis of the local hospitality, tourism, and waterpark resort market.
Existing competitors and planned facilities, including the stage of predevelopment/development of any planned facilities. Project performance of
facility in light of market conditions.
5) Proposed Development Visitation Projections and Price-point Analysis
a. Project annual and monthly visitation rates, and utilize market analysis and
cost/revenue analysis to identify ideal price point.
6) Financial Analysis
a. Including Capital Improvement Program budget and Facility Operating Pro-forma.
7) Project Financial Impact Analysis
a. Including Property, Sales & Use, and Lodging Tax revenue projections.
8) Comparative Analysis of Anticipated Project Costs to Revenues.
III.
INQUIRIES
Inquiries regarding the proposal should be directed to:
Dr. John R. Batey, AICP
Executive Director
Pueblo Urban Renewal Authority
115 E. Riverwalk, Suite 410
Pueblo, CO 81003
Phone: (719) 542-7500
[email protected]
IV.
SUBMITTALS
Deadline for submittals is Monday, May 11, 2015 at 5:00PM local time, Pueblo, Colorado.
Submittals shall be submitted to:
Dr. John R. Batey, AICP
Executive Director
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Pueblo Urban Renewal Authority
115 E. Riverwalk, Suite 410
Pueblo, CO 81003
Phone: (719) 542-7500
[email protected]
V.
SELECTION PROCESS and SCORING CRITERIA
A.
PURA will consider the following factors during the proposal evaluation process:
1. Cost/Fee Estimate (65% weight, scale 1 to 5);
2. Experience/History with Feasibility Studies (25% weight, scale 1 to 5); and,
3. Methodology (10% weight, scale 1 to 5).
B.
Mandatory Pre-proposal Conference
To address any and all questions from firms interested in responding in a uniform an
consistent manner, all respondents interested in submitting proposals under this RFP
MUST attend (in person, or via teleconference) a mandatory pre-proposal conference for
the RFP on Thursday, April 30, 2015 at 12PM local time, Pueblo, Colorado. Failure to
participate in the mandatory pre-proposal conference in person or via teleconference will
represent a fatal flaw for a proposal.
The principal author/project manager of the feasibility study, or a designee, must be
attend the conference. If a designee is chosen, PURA assumes no responsibility for
communications between the designee and other members of the respondent’s team. If
responding firms choose to teleconference in, this is an option. However PURA strongly
encourages firms interested in responding to familiarize themselves with the existing
conditions within the proposed project area by visiting the site in person.
If you wish to attend the mandatory pre-proposal meeting via teleconference, please
contact Brittany Gutierrez at 719-542-2577 for instructions and the call-in number.
C.
Selection Schedule
The selection schedule will occur at PURA’s convenience, but designation of a preferred
firm by the PURA Board of Commissioners is anticipated no sooner than June 9, 2015.
VI.
APPEALS
All appeals must be submitted in writing within five (5) working days of the date of preferred firm
designation by the PURA Board of Commissioners. All appeals must clearly state the grounds for
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the appeal, and must identify and be signed by the appellant. No anonymous appeals will be
accepted.
Please submit all appeals to:
Dr. John R. Batey, AICP
Executive Director
Pueblo Urban Renewal Authority
115 E. Riverwalk, Suite 410
Pueblo, CO 81003
The appeals contact will not score any applications.
VII.
DISCLAIMERS
The Authority does not agree to assume, pay, or to reimburse any cost, expense, or fee incurred
or charged by any proposed Firm or any other party in connection with this solicitation.