FEDRAC PKT 03-13-2000=Monday, March 13, 2000
1:30 P!m.
· .,:'".: .... City.of Federal Way
City Council
Finance/Economic Development/Regional ·Affairs Committee
City Hall
Mt. Saint Helens Conference Room
AGENDA
1. CALL TO ORDER
2. PUBLIC COMMENT
3. COMMISSION COMMENT
4. COMMITTEE BUSINESS
A. Approval of_February 29, 2000 Meeting Summary
B. Legislative and Regional Affairs Update (Matheson)
C. AT & T I-Net Agreement (Sadri)
D. 2000 Tourism Program (Wang)
E. Facility Feasibility Study Consultant (Wang)
Action
Information
Action
Action
Action
5. COMMITTEE REPORT
6. FUTURE AGENDA ITEMS
7. NEXT MEETING: April 25, 2000 2:00 p.m.
Committee Members:
Mary Gates, Chair
Jeanne Burbidge
Michael Hellickson
City Staff:
lwen Wang, Management Services Director
Sun So, Administrative Assistant
(253) 661-4080
City of Federal'Way..
City CounCil~
Finance/Economic Development/Regional Affairs Committee
Tuesday, February 29, 2000
2:00 p.m.
.,., .. City~Hall..
Mt..Baker Conference.R°°m~
MINUTES
Committee in Attendance: Chair Mary Gates, Members Jeanne Burbidge and Michael Hellickson.
Staff Members in Attendance: Iwen Wang, Management Services Director; Marie Mosley, Deputy Director
Management Services; Betty Nielsen, Accounting Supervisor; Marl Doring, Financial Analyst; David Moseley, City
Manager; Derek Matheson, Assistant to the City Manager; Londi Lindell, City Attorney
Other in Attendance: Linda Kochmar and Dean McColgan, City Council Members; Joan Piquette, Arts
Commission Public Relations Chair
CALL TO ORDER
Chair Mary Gates called the meeting to order at 2:03 p.m.
2. PUBLIC COMMENT
None.
3. COMMISSION COMMENT
None.
4. COMMITTEE BUSINESS
a) Approval of January 25, 2000 meeting minutes
Motion to approve by Jeanne Burbidge, seconded by Chair Mary Gates. Motion carried.
b)
Legislative and Regional Affairs Update
Derek Matheson updated the Committee on legislative and regional issues and activities.
He highlighted the legislative bills: Law Enforcement Study (SHB 2370, 2SSB 6369); Limited
Public Works (E2SHB 1071); MRSC funding; PERS/LEOFF Reform (HB 2744, SB 6530);
Property Tax Exemption (HB 2505, SB 6157); and Social Card Rooms (HB 2946)
Mr. Matheson gave an overview on the Legislative Budget Issues. He mentioned the House
Democrats & Republican parties issued their budgets and the Senate Democrats Budget has not
yet been released. The Republican budget relies less on use of surplus than Governor or House
Democrats budgets. Instead uses cuts ($170 million) and backfills 90% of criminal justice losses,
provides $100 million in transportation for ongoing funds to support bond issues, $50 million to
transit backfill, and 10% property tax cut. The Democratic Budget relies on use of $400-500
million in surplus and backfills 70% of criminal justice losses, then up to 14%. $510 million to
transportation, $80 million to transit back fill, and no broad property tax cut. The Governor's
Budget uses the most surplus, $600 million to backfills cities to 10%, proposes $500 million for
transportation (similar to House Democrats Budget), $100 million to transit, and half of GOP
property tax cut.
Regional issues mentioned: Sound Transit Confirmations (Mary Gates 4 year term on Sound
Transit Board); Water Action Plan in which Ron Sims is suggesting invoking a state law allowing
the county to conduct an assessment of water resources in King County; Transit cuts in progress
(Suburban cities pushing for more equitable measurement of service hours per capita when cuts
are made and Suburban Cities Association (SCA) pushing for an equal percentage reduction
across the board; Growth Management Planning Council (GMPC) meetings and Regional Policy
Committee (RPC) meetings; SCA major focus for this month is tri-county plan for governance
and funding in watershed; and WorkForce Development Council (WDC) concludes the comment
period this week on the draft unified plan.
Mr. Matheson .updated the Committee on the Sister Cities tour to Tonghae, Korea, and Hachinohe,
Japan. The trip will take place on March 29 - April 8th with Mayor Park, Deputy Mayor
Kochmar, City Manager David Moseley, Derek Matheson, Bob Stead, Doug Kim, Sandy Novak,
Michiko Soong attending and a couple of Council Members still undecided. The Committee was
informed that private funds were obtained to help fund 50% of the trip cost. The goals for the trip
is being discussed with the sister cities and staffwill report back after goals are finalized. Staff is
working on a goal statement for the trip that was requested by some Council members.
Discussion ensued regarding the necessity of two City staff attending the'trip. Chair Gates stated
th~at it is essential for City staffto attend and support the traveling party with the many events and
meetings that take place during the tour. Staffmentioned that it would be impossible for the
Mayor, Deputy Mayor and traveling guests to attend all the functions with events scheduled at the
same time or overlapping, therefore, staff would attend for them. The Committee was in
agreement to allow City staff to attend the tour.
c)
Carry Forward Budget Adjustment
Marie Mosley gave an overview on the Carry Forward Budget Adjustment. She explained that the
carry forward adjustment is to adjust the 1999 ending fund balance to agree with the actuals for
each fund (revenue projections being higher and expenditures being lower than anticipated or vice
versa) and for projects that were budgeted in the previous year, but not completed and carried
forward to the current year. Marie stated to the Committee that staff is still making minor
adjustments to the Carry Forward Budget. The General and Street Funds operations generated an
additional $670,000 approx, in the ending fund balance in 1999. From this mount, $521,699 is
primarily fi.om additional revenues received fi.om sales tax ($362,000) and gambling tax
($147,000) and $148,144 fi.om expenditure savings. Staff is recommending to appropriate
approx. $1,034,000 between the General and Street funds expenditures and approx. $736,000 in
associated revenues for those continued projects (majority is Public Safety grants) that will leave
the City with an ending fund balance of $610,000 for 2000 to be left unallocated at this time. She
also listed the expenditure adjustments and other specific fund projects. Chair Gates requested
staffto keep the Committee updated with any significant changes to the carry forward adjustment.
StaWs recommendation is for the Committee's approval of the carry forward budget adjustment
in the amount of$20,113,655 and forward to the City Council meeting on March 21't.
Motion made by Michael Hellickson to forward to March 21't Council for approval,
seconded by Jeanne Burbidge. Motion carried.
d)
1999 Year End Financial Report
Marie Mosley reviewed the f'mancial report with the Committee. She mentioned the fa'st three
pages of the report covered significant events of 1999. Marie highlighted the major revenue
sources and departmental expenditure savings on Attachment A and gave explanations for
variances between actuals and budget.
Motion made by Jeanne Burbidge to forward to March 7'~ Council for approval, seconded
by Michael Hellickson. Motion carried.
e)
Vouchers
Marie Mosley presented the vouchers for approval.
Motion made by Jeanne Burbidge to forward to March 7'~ Council for approval, seconded
by Michael Hellickson. Motion carried.
COMMITTEE REPORT
None.
NEXT SCHEDULED MEETING
April 11, 2000 at 2:00 p.m. in the Mt. Baker Conference Room.
Committee Member Hellickson mentioned to the Committee to schedule some evening meetings during the
year to give Federal Way residents the opportunity to attend. Also, Linda Kochrnar, City Council Member
suggested holding 1 or 2 evening meetings during the year for residents to come and speak during Public
Comment part of the meetings. Chair Gates stated that in 1999 some evening meetings were held and no
citizens attended. The Committee will consider having a couple evening meetings during the months
ahead.
ADJOUR2~
Chair Mary Gates adjourned the meeting at 3:04 p.m.
Recorded by Sun So
CITY OF FEDERAL WAY
MEMORANDUM
Date:
To:
Via:
From:
Subject:
March 10, 2000
Finance, Economic Development and Regional Affairs Committee
David H. Moseq~.~fO{y-XManager
\_
Mahdi Sadri, Information Systems Manager ~
AT&T Cable Services Institution Net Work (I-Net) Agreement
As you are aware, AT&T is required to construct a private, institutional fiber network for local
governmental entities under the cable TV franchise. This network is to be constructed in conjunction
with the system upgrade, to be completed by April 2000, on an incremental cost basis. At this time,
AT&T is requesting a six-month extension for the completion of the I-Net and the system upgrade.
While obligated to construct this private network, )kT&T is permitted under the Cable Act to recover
such costs. How these cost are recovered are different from city to city through out the area based on
individually negotiated agreements. Among the valley cities, Kent, Tukwila, and Auburn each were
provided 6 free connections in exchange for a 2-year extension for the upgrade/I-Net construction. To
provide full connection of their municipal facilities, Kent paid $300,000 for 5 additional sites, Kent
School District paid for the cost of their 17 connections; and Federal Way School District paid $50,000
for the three schools located within Kent city limits. King County on the other hand, according to
AT&T, is constructing an extensive network, including schools located in the unincorporated area, and is
paying $18 million directly and allowing additional pass through fees between $1 to $1.53 per subscriber
per month, which will be separately identified as public education governmental access charges.
The tentative agreement between the City and AT&T contains the following key provisions.
1. The Network:
The proposed network is centered at City Hall and fans out in three arms connecting forty-five
facility/termination points. The 45 points include 14 city, 4 fire district, 2 utility district, and 25
school district sites, each with 4 strands of single mode fiber. Of the 14 city sites, 8 will be
terminated at a splice point in the street for future purposes. One is reserved for the proposed transit
center, four are designated as spares in four comers of the City, and the remaining three were for
King County facilities that are already connected by King County I-Net.
The City could request future fiber connections but will not have the benefit of incremental cost in
the future.
e
Cost and Financing:
In consideration of the City granting a six-month extension for the upgrade, AT&T has agreed to
include the cost of the 14 City and 4 Fire locations as part of the overall system upgrade, at no cost to
the City.
For the Utility District and School District sites, AT&T has agreed to build the backbone as part of
the upgrade, and allow an 18-month period for both entities to exercise their option to connect to the
network. The cost for the two utility connections and the 25 FWSD connections are $79,475 and
$803,935 respectively, if the options are exercised and built prior to December 3 l, 2000. The
amounts may change to reflect future labor/material costs if the connections are completed later.
inet
311012000
Recognizing the large sum required to connect the FWSD sites, AT&T has agreed to allow both the
School District and Utility District to make installment payments without interest over the remaining
term of the existing franchise, which is about 5 years.
Maintenance and Repair:
AT&T will provide routine maintenance of the backbone in conjunction with their own maintenance
program. The City will be responsible for repair costs should there be any damage to the l-Net cable
and City owned equipment. _
e
Public Information
As AT&T goes through the upgrade, cable subscribers will experience cable outages when switching
from the old system to the new. In addition, the upgrade will change the type of equipment spread
out in the neighborhood. The existing system requires smaller equipment but in more locations, the
new equipment is larger in size, but fewer in number. Staffhas received complaints from
subscribers and neighborhoods on both of the issues.
As part of the agreement,'AT&T has agreed to do a direct mailing to inform subscribers of the
upgrade and potential service interruptions; and to work with residents to camouflage the equipment
enclosures.
Beyond I-Net:
AT&T will provide the fiber optic lines, or the infrastructure for broadband communications between
local government facilities. However, in order to communicate, each entity needs to put in equipment at
each end of the fiber. Depending on the type of communication and equipment, the cost of equipment
can be between $5,000 to $15,000 per location. The equipment investment could be a future budgetary
consideration.
We believe this is a very favorable agreement and protects all local government interests and we
recommend Council approve the agreement and authorize the City Manager to execute the agreement.
Attachments: I-Net Agreement, I-Net location list, Map.
Committee Recommendation:
Motion to forward the agreement to full council at March 21 council meeting with committee
recommendation to approve the agreement and authorize the City Manger execute the agreement.
APPROVAL BY COMMITTEE:
Committee Chair
Committee Member
Committee Member
inet
3/10/2000
INSTITUTIONAL NETWORK AGREEMENT
BETWEEN TCI CABLEVISION OF WASHINGTON, INC.
CABLE TV PUGET SOUND, INC.
AND THE CITY OF FEDERAL WAY
THIS INSTITUTIONAL NETWORK AGREEMENT (the "Agreement") is between the City of
Federal Way, a Washington Municipal Corporation, hereinafter the "City", and the City's franchised
cable oPerators TCI Cablevision of Washington, Inc. and Cable TV Puget Sound, Inc., d/b/a AT&T
Cable Services. The parties intend to set forth in this Agreement common terms and conditions for
provision of Institutional Network ("I-Net") capacity by both operators for non-commercial use by the
City.
RECITALS
WHEREAS, on August 10, 1995, the City entered into franchise Ordinance No. 95-238.with
Cable TV Puget Sound, Inc., and on March 21, 1996, the City entered into franchise Ordinance No. 96-
264 with TCI Cablevision of Washington, Inc.; and
WHEREAS, Cable TV Puget Sound, Inc. became an affiliate of TCI Cablevision of Washington,
Inc. on August 1, 1996;
WHEREAS, AT&T Cable Services became the parent company of TCI Cablevision as of June
23, 1998; and
WHEREAS, on February 2, 1999 the Federal Way City Council passed Resolution 99-285 which
consents and approves the transactions between TCI and AT&T Cable Services, and specifies that
AT&T Cable Services would be bound by the terms of the Franchises; and
WHEREAS, AT&T Cable Services intends to upgrade its cable systems with a common
architecture so that cable services can be cablecast ubiquitously to customers in the City; and
WHEREAS, AT&T Cable Services is obligated to pro.vide capacity for non-commercial City
communications under unique terms and conditions specified in its respective franchise, together
referenced hereinafter as the "Franchises"; and
WHEREAS, pursuant to the Franchises, on April 2, 1999, the City notified AT&T Cable
Services to construct a common and ubiquitous I-Net fiber backbone to all public buildings in both
franchise areas by April, 2000; and
WHEREAS, AT&T Cable Services initially designed the I-Net fiber backbone to connect to only
the public buildings specifically identified in Exhibits of the Franchises; and
WHEREAS, the Franchises specify that public buildings include future constructed public
buildings; and
WHEREAS, the initial design by AT&T Cable Services for the I-Net fiber backbone failed to
include the additional public buildings that have been constructed after the Franchises were accepted;
and
WHEREAS, the City has requested all public sites be accommodated' requiring an extension of
time for a redesign of the I-Net fiber backbone, the ordering of additional construction materials
including fiber optic cable, and completion of cable system upgrade and I-Net fiber backbone
construction; and
WHEREAS, the City agrees that it is in the public interest to grant such an extension:
NOW, THEREFORE, in consideration of the rights and obligations conferred or imposed by
Ordinances No. 95-238, 95-239 and 96-264, the parties hereto agree as follows:
Section !.
'Definitions.
A. I-Net fiber backbone. All outside aerial and underground fiber optic cable
consisting of four (4) single mode fibers within the AT&T Cable Services fiber
sheath connecting City Hall to the nearest ~Right-of-Way curb/splice point or
termination points of a facility where physically connected to user-owned
optronics.
B. I-Net User Connection. The connection from the I-Net fiber backbone to a
specific facility and properly terminated to User owned optronics.
C. Incremental Cost. The Portion of the cost incurred as a result of installing the I-
Net fiber backbone which is above and beyond the cost that AT&T Cable
Services would pay in the absence of said I-Net.
D. Non-commercial use. The offer of services for which a commercial charge is paid
to the City of Federal Way.
E. Other Users. Public entities other than the City of Federal Way and the Federal
Way Fire Department, such as the Federal Way School District, and Lakehaven
Utility District, which may connect to the I-Net fiber backbone.
F. Extreme Conditions. Major Storm or other catastrophic or undefined event
creating multiple outages in a widespread area.
Section 2.
Extension of Time. AT&T is hereby granted an extension through October 31, 2000
for completion of the upgrade of its cable system and I-Net fiber backbone
construction.
Section 3.
Construct Fiber Backbone Within City Limits. AT&T Cable Services shall
provide I-Net fiber backbone to each of the forty-five (45) locations designated in
Exhibit A (map) and B (list) in a star configuration, with each facility connecting to
City Hall. The I-Net fiber backbone shall be constructed in accordance with the fiber
route plan submitted to the City by AT&T and approved by the City.
Section 4.
Section 5.
Section 6.
As part of the construction, AT&T agrees to provide landscaping or other camouflage
in areas deemed appropriate by agreement betWeen the aggrieved resident and the
AT&T representative to improve the appearance of the new cable equipment
enclosures.
The City, the Fire Department and Other Users shall have an exclusive right of use
thereof for non-commercial private network communications,_which right cannot be
revoked by AT&T Cable Services, or successor companies, if any. However, AT&T
Cable Services shall at all times own in fee and maintain the I-Net fiber backbone and
associated facilities and equipment, if any, whether aerial or underground, up to said
termination points where physically connected to City, Fire and Other User-owned
optronics.
Fiber Connections To Designated Facilities Within City Limits. AT&T agrees to
construct and include the cost of fiber connections to six (6) City facilities, eight (8)
pre-determined splice locations intended for future City expansion of the I-Net, and
all four (4) Federal Way Fire Department facilities up to and including the designated
termination points as part of the cable system upgrade and costs.
AT&T agrees to allow all Other Users, an option to connect their facility to the I-Net
at the incremental costs not to exceed those amounts identified in Exhibit B. Should
Other Users not exercise the option to connect its facilities prior to AT&T completing
the overall cable system upgrade in the Puget Sound area, on or about December 31,
2000, the cost may increase to reflect the additional labor/material cost in effect at the
time for the completion of the connection. Any connection rights not exercised
within an eighteen (18) month period from the date of this Agreement will be revert
back to AT&T to be used at its sole discretion.
AT&T further agrees that if these Other Users exercise their option, they may make
installment payments, without interest, for its share of the cost over the remaining
franchise period as defined in the franchise goveming the physical location of said
facility.
Future Facilities. Additional sites, not listed in Exhibit B and within City limits at
the time of request, may be added to the I-Net following completion of current system
upgrade at the City's expense. Upon request from the City, AT&T Cable Services
shall, within sixty (60) days, submit to the City an estimate of the fully allocated cost
of construction to the site'. The City shall, within sixty (60) days of receipt of the cost
estimate, accept or reject the project. If the City accepts the estimate, AT&T Cable
Services will timely construct a fiber connection to the additional site(s) and upon
completion, invoice the City for construction costs in an amount not to exceed the
estimate.
Fiber Construction and Termination. Fiber will be conStructed and terminated in
accordance with the Franchises, this Agreement and AT&T Cable Services' standard
practices, including but not limited to practices concerning connectorization. AT&T
Cable Services will be allowed to utilize City-owned conduit capacity at no charge for
Section 7.
Section 8.
Section 9.
Section 10.
fiber construction if such conduit is available in the foreseeable future as determined
by the City, and the City agrees to grant AT&T Cable Services all necessary rights of
entry, easements and licenses to accomplish the construction to the sites contemplated
hereunder. AT&T agrees to obtain all necessary licenses and permits, and construct
the I-Net fiber backbone in a manner consistent with all applicable local, state and
federal laws, and regulations.
Each fiber shall be terminated at an internal point of demarcation in an AT&T Cable
Services standard termination panel, unless the City provides another means of
termination, in which case the City shall provide all necessary termination equipment.
At each termination location the City shall provide wall mount backboards and a
power source for the basic termination, or such equipment as chosen by the City as
replacement.
Public Notification Program.
AT&T has in effect, and will continue to us its standard public notification procedure.
In addition to its standard procedures, AT&T will send an informational mailing to
Federal Way customers' homes within forty-five (45) days of the effective date of this
Agreement.
Testing and Acceptance.
AT&T Cable Services shall certify the integrity of the constructed I-Net fiber
backbone through testing and verification to AT&T standards. Testing shall consist
of end-to-end testing and Optical Time Domain Reflectometer (OTDR) tests to obtain
a signature trace on all fibers. AT&T Cable Services shall provide the City with
testing documentation.
Construction Schedule and Updates. AT&T Cable Services agrees to provide to
the City, regularly scheduled monthly meetings and quarterly updates on the progress
of its upgrade of the cable system and construction of the I-Net fiber backbone. The
City may request more frequent updates as are necessary for the enforcement of the
Franchises and this Agreement.
Maintenance and Repair of I-Net Fiber Backbone. Maintenance and repair of
the I-Net fiber backbone and associated facilities and equipment, if any, used
exclusively by the City and, the Federal Way Fire Department and Other Users for
its I-Net will be cOnducted on the same schedule as repair on AT&T Cable
Services' cable systems. Any repairs effected upon the I-net fiber backbone and
associated I-Net facilities and equipment, if any, shall be performed by AT&T
Cable Services, at the City's cost, on a time-and-material basis consistent with
industry standards, with prior notice to the City.
In emergency conditions, such as a natural emergency resulting from a windstorm
or an accident, AT&T Cable Services will effect emergency repair work on the
backbone fiber and associated I-Net facilities and equipment in the course of
conducting its own emergency repair work on its cable systems, without prior
notice to the City.
6
Section 11.
Section 12.
Section 13.
AT&T Cable Services will submit an invoice for work performed. The City will
timely reimburse AT&T Cable Services for its expenses on a time and material basis
for conducting such emergency repairs. Response times will not exceed four (4)
hours in other than extreme conditions as defined in section 1.
Administration, Maintenance and Management of the I-Net. The City shall
bc responsible for thc ongoing administration, maintenance arid management of
the non-backbone I-Net facilities and equipment, and thc network itself, unless it
contracts with AT&T Cable Services for a managed network. All such
maintenance conducted by the City shall bc performed in a workmanlike manner
to industry standards, and any City-provided equipment shall comply in all
respects with applicable governmental codes, laws, ordinances or regulations and
thc National Electric Safety Code.
The City, the Federal Way Fire Department and Other I-Net Users to Provide
Electronics. AT&T Cable Services is responsible for supplying and installing the
specified I-Net backbone fiber optic cable to the specified locations only, providing a
pathway for I-Net communications between sites. Any "active" equipment or
components, including but not limited to computers, network cards, optronics, electronics
and equipment racks, required to put the I-Net into operation shall be at the City's sole
expense.
THIS DISCLAIMER APPLIES ONLY TO SUCH CITY, FEDERAL WAY FIRE
DEPARTMENT AND OTHER USERS PROVIDED "ACTIVE" EQUIPMENT OR
COMPONENTS. AT&T CABLE SERVICES DISCLAIMS ALL WARRANTIES,
WHETHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY
IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE. AT&T CABLE SERVICES SPECIFICALLY DISCLAIMS
ANY RESPONSIBILITY FOR ANY DAMAGES SUFFERED BY CITY ARISING
OUT OF ITS PERFORMANCE UNDER THIS AGREEMENT. IN NO EVENT SHALL
AT&T CABLE SERVICES BE LIABLE TO THE CITY FOR ANY INDIRECT,
SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES,
WHETHER OR NOT FORESEEABLE.
Private Network Status. The I-Net is a private communication network governed by the
Franchises and this Agreement, and the City will use the I-Net solely for non-commercial
applications in accordance therewith. Neither the City nor AT&T Cable Services will
attach any equipment or otherwise modify the I-Net in any way that will interfere with
the signal quality and the normal operation of each other's system. The City may not
lease, resell or grant access privileges to I-Net fiber backbone capacity to a third party,
other than the Federal Way Fire Department and Other Users as defined in Section 1.
The I-Net may be used for origination purposes for governmental, educational, or public
use.
Nothing in Section 13 is deemed by the City or AT&T Cable Services to grant rights
or uses which are regulated as common carrier within the meaning of applicable state
and/or federal laws.
Section 14.
Cost of I-Net Construction. Subject to the Franchises and clarifications
specified herein, the City acknowledges that AT&T Cable Services is required by
its Franchises to construct the I-Net fiber backbone in conjunction with the
upgrade of its cable system in the City, and that AT&T Cable Services is entitled
to recover the cost of I-Net fiber backbone construction in accordance with
applicable law. -
Section 15.
Entire Agreement. This Agreement and its Exhibit(s) represent the entire agreement
between the parties hereto with respect to the subject matter hereof and supersede all
prior oral negotiations and agreements, with the exception of the Franchises regarding
I-Nets, between the parties. In the event of a conflict between the-Franchises and this
Agreement, the Franchises shall control. All other provisions of the Franchises shall
remain in full force and effect.
AGREED TO BETWEEN THE PARTIES on the last date written below.
TCI CABLEVISION OF WASHINGTON, INC. CABLE TV PUGET SOUND, INC.
By: James H. (Trey) Smith III. By:
· Its: President Its:
Date: Date:
James H. (Trey) Smith III.
President
CITY OF FEDERAL WAY
By: David H. Moseley
Its: City Manager
Date:
ATTEST:
APPROVED AS TO FORM:
N. Christine Greene, CITY CLERK
Londi Lindell, City Attorney
3
4
5
6
7
8
9
10
11
12
13
14
15
Total Sites 45
1 - Cit, Sites
4 COUNT SPARE @ Approx. (320th & I st Wa / S.)
II - Fire District
Federal Way City I-Net List
Cost = Included
03/10/2000
III - Lake Haven Utility District
19 U I Lakota Treatment Plant
20 U2 Ma n Office/Admin.
Splice CS-02
Splice CS-02
Splice CS-I 1
Splice CS-I 2
Splice CS-27
Splice CS-24
Near Splice SPL09
Splice CS-4
Cost = Included
21
22
23
24
25
26
27
28
29
3O
31
32
33
34
35
36
37
38
39
40
41
42
43
45
Estimated Cost through 12/31/2000 = &79,475
3045 SW Dash Point Road
31627 First Avenue South I
IV - School District Estimated Cost through 12/31/2000 = $803,935
S1 Public Schools Administration 31405 18th South
S2 Adelaide Elementary 1635 SW 304th
S3 Brigadoon Elementary 3601 SW 336th
S4 Decatur High School 2800 SW 320th
S5 Federal Wa), High School 30611 16th South
Sd Head Start Program Splice CS-05
S7 Illahee Junior High School 36001 First Avenue South
S8 Lake Grove Elementary 303 SW 308th
S9 Lakota Junior High School 1415 SW 314th
S10 Mirror Lake Elementary 625 South 314th
S ll Nautilus Elementary 1000 South 289th
S12 Olympic View Elementary 2626 SW 327th
S 13 Panther Lake Elementary 34424 First Avenue South
S 14 Sacajawea Junior High 1101 Dash Point Road
S15 Sherwood Forest Elementary 34600 12th SW
S 16 Silver Lake Elementary 13 I0 SW 325th Place
S17 Twin Lakes Elementary 4400 SW 320th
S18 Wildwood Elementary 2405 South 300th
S19 Green Gables Elementary 3015 South 368th Street
S20 Enterprise Elementary 35101 Fifth Avenue W
S21 Saghalie Junior High 33914 19th Avenue South
S22 Truman High School 31455 28th Avenue South
S23 Mark Twain Elementary 2450 S Star Lake Rd.
S24 New High School 16th Ave S.and 356th
S25 School Maintainenance and Transportation 1066 S 320th St
Puget Sound
·
#S24
I Net Fiber Legend:
Facility/Location · City Fiber Site
· Spare City Fiber Site
~. City Fiber Route . Schoo~ Fiber Site
_~ · Spare School Fiber Site
' ' · Utility Fiber Site
· Fire Fiber Site
N
City I-Net Fiber Route
Scale: 1 to 53520
1 Inch equals 4460 Feet
01/4 1/2 1 Mile
luserslnamiml..~netr.aml Map Printed March, 2000
CITY OF FEDERAL WAY
MEMORANDUM
Date:
To:
Via:
From:
Subject:
March 10, 2000
Finance, Economic Development and Regional Affairs Committee
David H. MoSel~-~~anager
Iwen Wang, Mana~,ement Serv!ce Director~/t~.) -
Lodging Tax - 2000 Tourism Program
The Council has allocated $32,5000 for a tourism promotion program as part of the 1999/2000 lodging
tax revenue allocation. Both the Lodging Tax Advisory Committee (the Committee) and the Chamber's
Tourism Commission have met to discuss the objectives and key elements for a local tourism program
and attached is a program summary for your review.
Background:
Currently, there are a number of players and attractions in Federal Way that make up the local tourism
industry: hotels; the Aquatics Center; Dumas Bay Centre; Celebration Park; Wild Waves/Enchanted
Park; the Bonsai Garden; the Rhododendron Species Foundation; and, Dash Point State Park are but a
few examples. Combined, these players will spend over one million dollars in the next 12-to-18 months
to promote their facilities and Federal Way as a destination. This amount is substantially higher than
normal due to the startup of two new hotels.
Considering these factors, the Committee has identified the following short-term goals/focuses for its
2000 Tourism Program.
1. Provide a focal point to coordinate and facilitate communication among the key players in their
marketing efforts.
2. Provide information to encourage visitors to spend additional time (a half-day or even one more
night) to visit, shop, or be entertained in Federal Way.
3. Encourage new events that will bring new visitors to Federal Way.
The Committee unanimously recommended the program and supports the City entering into a contract
with the Chamber to administer this program for the year 2000.
Attachment:
Federal Way 2000 Tourism Program Summary
Committee Recommendation:
Forward the 2000 tourism program to Council at their March 21 meeting to approve the program and
authorize the City Manager to negotiate and execute a one-year contract with the Chamber to administer
the program.
APPROVAL BY COMMITTEE:
Committee Chair
Committee Member
Committee Member
k:\finance\fincommt\2000\0313\2000 tourism program.doc
FEDERAL WAY 2000 TOURISM PROGRAM SUMMARY
Program Goals Proposed Tools/Activities Deliverables & Funding Report/Approval
1. Maximize the $1 million Coordinate various marketing efforts through a one- Local Business will provide $1 million plus in Chamber shall provide quarterly
plus marketing budget will year service contract with the Chamber direct marketing through media, trade shows, reports to the City Council Finance
be spent in the next 12-to-18 conferences, to promote local facilities and Federal Economic Development and
months to promote local Way as a destination. Regional Affairs Committee
facilities and Federal Way as City will provide $10,000 in Chamber stafftime to (FEDRAC) of the past quarter's
a destination, coordinate these marketing efforts, marketing programs and activities.
Chamber will provide $2,500 value in in-kind
services including space, phone, computer and
necessary office support.
2. Provide information to Develop and distribute a tourist information packet. Local Business to provide $5,000+/- for the Complete design and printing of
encourage visitors to spend The packet should include: design, printing, and distribution of the "Federal material no later than June 30.
additional time (a half-day or · A "FW Happening" events and activities Way Deal" discount vouchers, and provide Provide quarterly update to
even one more night) to visit, calendar, updated quarterly; discounts and/or git~s at local business, restaurants, FEDRAC on distribution and
shop, or be entertained in · A "FW Deal" discount voucher providing and hotels, circulation of the packet.
Federal Way. discounts at local restaurants, hotels, etc; and, City will contribute $7,500 for quarterly activities
· A convenient tourist map of the City and events calendar, including data gathering,
highlighting the major attractions.
calendar preparation, printing, and distribution;
The information packet will be distributed:
and, $10,000 for a tourist map identifying key
· Through display racks at local restaurants and
landmarks, attractions, shopping and lodging
hotels; facilities.
· At industry conventions; and,
· Through tournament directors and event
planners to the event participants
3. Encourage new events that Develop a competitive grant program that will City will contribute $5,000 toward a competitive Submit draft grant program outline
will bring new visitors to provide funding to encourage organizations that will grant fund to encourage new events that will and criteria for City Council
Federal Way. put on events which will attract new visitors to generate new tourist activities (Chamber will approval in March 2000.
Federal Way coordinate the development of specific grant ~
application process and award criteria for Council
approval prior to implementation).
k:\finance\fincom~ ''000\0313\2000 tourism program.doc
CITY OF FEDERAL WAY
MEMORANDUM
Date:
To:
Via:
From:
Subject:
March 10, 2000
Finance, Econorr~c Development and Regional Affairs Committee
David H. Mose~~ager
iwen Wang, Mda~em~ ;~t SXXervices Director ~ -
Consultant Selection
The Council has allocated $37,500 towards a public facility feasibility study and the
development of a tourism strategic plan for the City as part of the 1999/2000 lodging tax revenue
allocation. The Request for Proposal (RFP) was issued in January, and four proposals were
submitted by the February 23 due date.
Derek Matheson, myself, and Alison Corrigan, as a representative of the Lodging Tax Advisory
Committee, reviewed the four proposals and selected two finalists for interview. An interview
panel conducted the interviews on March 7, and recommends Hunter Interests Inc. (HII) of
Annapolis, Maryland unanimously.
HII brings an unique combination of real estate development and consulting background to the
table and has experience in carrying projects from feasibility study to successful implementation,
including facilitating public/private financing. HII is currently working with a number of local
and west coast entities on a variety of projects. We believe they are the best choice for this
project.
Should you have any questions about the qualifications of the consultant recommended or the
interview process, please feel free to contact Derek at 661-4671, or me at 661-4060.
Attachment:
Proposal form Hunter Interests Inc.
Committee Recommendation:
Forward Committee recommendation to full Council at their March 21 meeting to approve the
consultant selection and authorize the City Manager to negotiate and execute the professional
service.
APPROVAL BY COMMITTEE:
Committee Chair
Committee Member
Committee Member
fesb study consltnt selection
3/10/2000
Proposal
Feasibility Study
and
Marketing Strategic Plan
Prepared For:
City of Federal Way, WA /
Hun~erfPl~rfe~s~:s Inc. /
Annapolis, MD ° New York City ° Clearwater, FL
February23,2000
HUNTER INTERESTS
I N C O R P O R A T E D
February 22, 2000
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Ms. Judy Dunker, Support Service Coordinator
City of Federal Way
33530 1a Way South
Federal Way, WA 98003
Dear Ms. Dunker and Selection Committee Members:
We at Hunter Interests Inc. appreciate the opportunity to respond to your Request
for Proposal to provide consulting services to the City of Federal Way. The purpose
of this proposed study, as stated in your RFP, is to determine the feasibility of
developing an activity center in Federal Way and to prepare a strategic tourism
development plan. The City has correctly recognized the numerous economic
benefits that increased tourism and the development of a center that hosts
conventions, exhibitions, community events, cultural arts, and sport facilities can
provide to a city and to the surrounding region. Our firm's prior research of the
Seattle market, particularly the areas in close proximity to Sea Tae, indicated a
substantial mount of untapped' market potential for a facility that is a able to
accommodate a combination of public assembly events. The key is to properly
position the facility within the market place to create a competitive advantage for
the Federal Way Center and to maximize the appeal of the facility to end-users
through the use of market-driven design programming and tourism' development
strategy. '
Our firm's team of professionals represents a level of project development and
analysis talent that is unparalleled in the public assembly facility industry.
Descriptions of an extensive list of similar projects on which our team has worked
are included in the enclosed qualifications package. We have also included resumes
and a list of references that we encourage you to contact, not only to .secure
information regarding our firm, but also to gain insight into our ability to
successfully facilitate the development of public assembly projects. In addition, I
have included an outline of my presentation from the recent CUED conference: "If
you build it will they come?" in Tempe, Arizona. The outline details many of the
key steps in the public assembly facility development process.
Below are summaries of four projects that illustrate Hunter Interests' unique
experience, capabilities, and work approach, which typically goes beyond
conventional feasibility work to achievable recommendations. The result is
enduring positive economic impacts for our clients, rather than a study that sits on
the shelf and never gets implemented.
URBAN ECONOMICS · FINANCE · REAL ESTATE DEVELOPMENT
121 MAIN STREET · ANNAPOLIS. MARYLAND 214(11 · ~410) 269-0033 o FAX (410) 280-9163
HUNTER INTERESTS
I N C O R P O R A T E D
Dunker
February 22, 2000
Page Two
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Jackson, Mississippi, Hybrid Exhibition/Convention' and Conference
Training Center -- Hunter Interests is currently involved in the development
of a state-of-the-art meeting facility in the heart of the state capital, funded
jointly by a new hotel bed tax and funds allocated by the Govemor and state
legislature.. Thc original concept of this project was a pure training center for
telecommunication entities, which would serve as a tool to retain existing
telecommunication companies in Mississippi, as well as attract additional
telecommunication firms to the State. After analyzing the market potential of
this unique facility concept, it was determined that the original concept was
infeasible. However, HII's market research and analysis indicated an
opportunity for a hybrid facility that would target multiple markets, including
tradeshows, consumer shows, and large state and regional conventions. The
current partnership includes the 'City of Jackson and the Jackson Convention
and Visitors Bureaus, which is responsible for the development of the
exhibition and convention component of the project that will be adjacent to
the State-funded conference center. The conference center will be integrated
with a new 4-star, privately owned hotel. HII is currently creating operating
agreements and a booking policy for the complex as well as finalizing the
financing package and negotiating the public/private partnership.
Virginia Beach Public Assembly Facility Development Strategy -- HII is
currently serving as advisor to the City of Virginia Beach in the development of
a strategy for expanding their existing exhibition and convention center and
developing a conference center and headquarters hotel. The comprehensive
development strategy will include a financing plan, redevelopment of two key
oceanfront parcels through the creation of public/private development
partnerships, site recommendations, detailed cost estimates, and a financing
plan. Previously, HII provided market-driven design programming which
involves accommodating potential end users' needs into the optimal size and
market origination of the exhibition and conference facilities in the City's resort
area. The strategic plan will serve as a blueprint to expand and enhance Virginia
Beach's existing tourism industry.
Manchester, New Hampshire, Civic Center -- Hunter Interests conducted a
detailed market study, financial analysis, financing plan, and fiscal impact
analysis for a $45 million arena, with convention exhibition space and
'breakout rooms, as the first phase of a downtown convention center/hotel
HUNTER INTERESTS
I N C O R P O R A T E D
Dunker
February 22, 2000
Page Three
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complex. The Manchester City Council unanimously endorsed our
recommended financing strategy. Mr. Hunter assisted the City in negotiating
a revenue bond guarantee with the state government. The project leverages
the redevelopment of an adjacent multi-story mill building by being
functionally integrated with this historic structure and using lower cost
renovated space in the existing building to achieve certain construction
economies. This project was recommended in the award-winning Intown
Manchester Plan prepared by HII and a participating planning firm.
HII typically continues to assist its clients with detailed feasibility analysis,
procurement of financing, and owner's representative services to implement
projects which are conceived in its planning programs. Manchester is an
excellent example of this continuing service. The Manchester project also
demonstrates our ability to plan a broader economic development strategy and
implement it by proving financial feasibility for a sizable action project which
will, in mm, heighten investor confidence in an area and assist in the attraction
of private sector investment.
Kent, Washington m HII is currently conducting a market analysis for a
conference/convention center to be located in downtown Kent. Tt/e facility will
target smaller conventions, consumers and trade shows, and conferences that are
not large enough in terms of room night generation to be able to book the larger
Seattle Convention Center, which is 30 minutes from downtown Kent. The
convention facility will be part of a mixed use public/private development
project which will include a:~..it...~_. ", station,_ ~_rfonnin~ter, r~tail, movie
-.the.ater, and.h tole~s).
These four projects exemplify the fact that determining the feasibility of public
assembly projects in 2000 and beyond often cannot rely on a conventional supply
and demand analysis that focuses on traditional share capture analysis of existing
demand segments. Hunter Interests' extensive experience as both real estate
developers and consultants enables us to uncover the unique market opportunities
and niches that support successful projects. This type of innovative planning goes a
long way in strengthening the market appeal of a public assembly facility resulting
in facilities that have a competitive advantage and create enduring economic
impacts.
HUNTER INTERESTS
I N C O R P O R A T E D
Dunker
February 22, 2000
Page Four
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Finally, I would like to point out a number of the characteristics of our fh'm and
work approach as they relate to the task ahead for the City of Federal Way.
Critical Mass m Although the term "critical mass" has been overused and
abused in reference to real estate projects, it is an important economic threshold
above which projects are generative (expanding other markets and attracting
other uses) and below which a project tends to serve only a single market
(realizing direct impacts, but no significant indirect or synergistic impacts). As
economists, we are particularly sensitive to critical mass thresholds and we
conduct our feasibility analyses using techniques which isolate and measure
additional streams of market demand that a project can realize if it is over a
certain size threshold or includes a combination of uses which attract people for
difference purposes. In planning a public assembly facility there should be a
careful analysis of all potential markets which can be tapped, and all
customer/user groups that can be attracted into the area. Then, the challenge is
to further serve those groups by providing additional food/beverage,
entertainment, and retail. This will encourage people to extend stays, trigger
repeat visits, and heighten visitor experiences so that they wish to remm to
Federal Way for leisure and business. We will research and make
recommendations concerning possible synergistic development ~ppommities.
The Oppommity to' create synergy will play a major role in our
recommendations and strategic plan.
Firm Objectives -- During HII's 13-year history, we have demonstrated
continuity in management, since all of the finn's assignments are supervised by
Mr. Donald E. Hunter, president and principal owner, or one of two vice
presidents. Mr. Hunter retired from a larger consulting finn that he built
between 1975 and 1986, in order to manage projects more tightly in a smaller
corporate structure. HII has a management system which was designed to
eliminate the problems Mr. Hunter encountered in three previous consulting
firms. The best evidence of HII's ability to perform is that our clients come
back to HII for repeat assignments, time and time again. We pride ourselves on
long-term relationships and client satisfaction. One of the primary focuses of
our practice is the facilitation of complicated mixed use ~ojects
that i~blic asses as anchors or catalys_ts. As ecohomic
development specialists, we understand the substantial economic gains that can
be realized through the development of exhibition facilities, especially when
utilized to leverage private sector investment in hotels, conference facilities, and
support infrastructure, such as entertainment, food/beverage, and retail.
HUNTER INTERESTS
i N C O R P O R A T E D
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Dunker
February 22, 2000
Page Five
Hands-on Experience in Guiding Similar Initiatives m In similar market
situations our staff has guided numerous public sector clients in a process much
like the one that the City of Federal Way will face. HII has developed a number
of successful economic development strategies for cities throughout the United
States. Each strategy includes a tourism development plan which often includes
public assembly facility development, entertainment development strategy, and
an overall marketing strategy for the city's tourism offering. Don Hunter heads
the Council for Economic Development's tourism development committee.
Simply put, there is no substitute for experience in these situations. We
understand the many obstacles that your City staff will encounter and are
prepared to assist them in this critical initiative. I will serve as' the project
manager and be the primary person conducting research and analysis and will be
assisted by Don Hunter in the preparation of strategic recommendations and
overall project positioning.
We would be happy to answer any questions concerning our qualifications and how
we may be of assistance to you in making this exciting development opportunity a
reality. Thank you again for considering our finn for this important assignment.
Sincerely,
HUNTER INTERESTS INC.
Geoff C. Graham
Vice President
HUNTER INTERESTS
I N C O R P O R A T E D
I. Proposed Work Program
A. Kick-off Meeting~
We propose to begin the engagement with a kick-off meeting with City officials to
review the scope of work, procedures, and overall planning of the project. The
purpose is to thoroughly discuss all issues of concern to Committee members, and
ensure that our work program adequately addresses these concems. In addition,
with your assistance we would identify other individuals whom we would either
meet or call as part of the investigative portion of the engagement.
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B. Market Analysis
1. Demand Analysis
Based on our team's extensive experience analyzing the demand side of public
assembly markets, we have designed a research plan especially for this project
which will enable us to objectively assist in the design of a strategy to enhance.
Federal Way's tourism offering and ability to host sports, cultural arts and
community events. The research plan includes a combination of rem-by-mail
surveys, and telephone and in-person interviews of meeting and event planners and
officials of organizations within the potential target markets. We have included in'
our plannin.' g process background information and knowledge developed during our
prior work for other center's of other public assembly, performing arts and meeting.
facilities in the metro area. For instance, the strength of the Sea Tac full service-
hotel market creates oppommities for adjacent communities such as Federal Way -
that can be captured through the development of convention and tradeshow.
facilities.
We will investigate the six standard horizontal markets, as follows:
· Corporations
· Regional and state associations
· Government agencies
· Educational institutions
· Sporting and entertainment events
· Social, military, ethnic, religious and fraternal
(SMERF) organizations
HUNTER INTERESTS
I N C O R P O R A T E D
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Concurrent with the mail survey process, we will conduct a series of telephone
interviews from a separate list of professional, full-time meeting/event planners
and other officials of selected organizations who would have input into the
selection of meeting sites. This process enables us to obtain additional information
concerning the important issues in site selection and a better description of the types
of meetings and other events, which might be held at the facility in Federal Way.
The final step in the meetings demand research phase will be the scheduling and
conduct of a series of in-person interviews of selected community event, meeting,
performing art~. planners and other executives/promoters as may be appropriate.
The list of candidates for these interviews will be developed as the engagement
proceeds and will most likely include some respondents to the other two survey
tasks, in particular those who have indicated a willingness or desire to participate
further in the planning process· W_e_~.c__o_nd_u¢!_a_series of ch._aEr_e_~tes or focus_.__
groups as part of this process.
We will summarize the results of our market research, identifying the horizontal and
vertical markets offering the greatest potential for use of a public assembly facility
located in Federal Way, the geographic areas from which a majority of the demand
is likely to originate, and the names of specific demand generators who have
indicated significant potential use.
C. Public Assembly Facility Recommendations
Based on our market research, we will develop conclusions and recommendations
regarding:
· Identification of potential sources of demand and potential usage.
· Facilities and services, which would be needed to attract and
accommodate, identified demand sources.
Our facilities analysis will be presented in the form of a set oLmcr~rnmend~,
· , · . . . .---~---~--"='~ -:.- ~ ..........
which would describe the project s hkely competitive pos~t~on. Included as part of
the facility recommendations will be the identification of the most appropriate
~ based on the type and scope of the facility(ies) and taking into consideration
Characteristics such as accessibility, surrounding land uses, topography, proximity to
the hotel supply, transportation links, cost, ease of acquisition, and nearby
attractions.
Our site evaluation will include consideration of the site preparation challenges from
the standpoint of activities that the site must support, such as delivery of exhibits,
attendee circulation pattems, parking, and potential for expansion.
HU TER INTERESTS
I N C O R P O R A T E D
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In addition, recommendations regarding site suitability will include the impact that
site selection will have on the success of the project and the?_bilitY to successfully_
leverage spin-off economic development.
Before completion of this task, we will meet with City officials to discuss the likely
tradeoffs of different development scenarios and potential sites in order to reach a
consensus on the preferred development scenario.
Issues and industry trends that will likely be a focus of this discussion will include
the following:
Convention-oriented facilities must be marketed in a highly competitive
environment that takes into account the attractiveness of the area_as a
destination, the s~_pporting infrastmctur,e~____d amenities p_r_ovided, and the 9_ost of_
the event, both to the event sponsor and to the attendee. In contrast, purely civic
-facilities serve the needs of the local and regional area population with regard to
entertainment, local community and social gatherings, consumer shows, retail
shows, and similar activities.
.Primary economic impact events are those with a non-local attendance, which
include conventions, trade shows, corporate and association meetings, and
educational seminars. Limited economic impact events with primarily local
attendance include public shows, consumer shows (e.g. garden shows, boat shows,
home shows) banquet/reception events, concert/theater events, and civic/social
events. ~Facilities that focus on lximary e..cpnomic imp. ecl[ ~vents .. _B'p_ ically require aa
ongoing Operating subsi~. On the other hand, facilities that focus on '~"
~_~xpically generate an 0nerating. surplus. HOwever, community-orient~__~a_cilitj~
_typkally do. not.sf_lmulaie SufficienLecon_o. mi-c. impact-justify_the_.c.a, pi_.ml.._ .i_.n. yes~t~_ __e..~
necessary to develop facilities that focus only on gate events.
Therefore, the key to the overall financial and operational success of a development
which must stimulate economic development and be financially self-sufficient is to
create a facility which serves both of these dis~tin, ct_~g a c~areful
balan~en the scope/design of the center_the resulting cost of development,
and the economic benefit realized by the surrounding community.
D. Competitive Destination/Supply Analysis
We will conduct separate surveys of competitive destinations and their public
assembly facilities and of comparable destinations to Federal Way and the Puget
Sound Region in other market areas in the United States as well as within the Puget
HUNTER INTERESTS
I N C O R P O R A T E D
Sound region. This analysis will include proposed projects in surrounding
communities and cities that will impact the market orientation and positioning of the
Federal Way facility.
The competitive/comparable destination and facilities analysis will address:
· Locational attributes and special conditions
· Amenities
· Size
· Acc. essibility
· Primary feeder markets
· Operational performance
· SWOT analysis (strengths, weakness, opportunities, and threats)
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E. Utilization and Initial Financial Analysis
Based on the preceding market research and the preferred development scenario, of
the City as determined in the prior task, we will develop estimates of overall
utilization and utilization by market segment as well as estimates of annual revenues
generated by uses. This analysis will include the first five full years of operations,
based on an assumed opening date. Included, as a related part of this analysis will
be recommended rate structures for the varions elements of demand based on'
seasonal competitive factors.
Preliminary estimates of operating expenses will also be prepared, and a five-year
cash flow analysis will be constructed. While preliminary in nature, this financial
analysis will allow initial determinations of economic viability and the extent to
which operating subsidies may be required in the early years of operation prior to
stabilization and maturation of market penetration. Public assembly facilities
typically stabilize in the fourth year of operations, so the five-year cash flow will be
able to give the City a good initial sense of the project's economic viability, and the
need for facility alterations where broader market penetration is needed in order to
achieve economic viability.
F. Preliminary Capital Budget
We will prepare a preliminary capital budget for the project based on the
recommended facilities and site considerations from our initial site/location analysis
and services. This preliminary budget will include land acquisition costs;
construction and outfitting of the project based on industry standards, and budgets
HUNTER INTERESTS
I N C O R P O R A T E D
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for any specialized equipment or services. The preliminary capital budget will also
include reserve and replacement accounts to keep the project and its equipment up
to date and compatible with user needs.
G.' Preparation of Funding and Partnership Scenarios
Based on the preliminary estimates of utilization, the resulting prospective financial
analysis and the preliminary capital budget for the project, we will be in a position
to provide recommendations of possible funding sources and partnership
oppommities. Funding and partnerships considerations will include but not be
limited to the formulation of anchor end-user agreements, educational foundation
grants, state funding, use of hospitality tax, use of bonds, corporate sponsorship in
exchange for naming fights, and public/private mixed use developments.
Based on the results of Phase I research and the resulting capital budget, we will
prepare pro formas which detail the anticipated funding elements for the project.
We will provide calculations of supportable debt and equity, returns on investment
and equity, and calculation of an internal rate of return. Any capital gaps or
deficiencies in the financial analysis from the standpoint of normal industry
standards will be noted, and, if appropriate, we will make recommendations for gap
financing with a view toward achieving acceptable investment thresholds normally
approved by institutional lenders. This threshold analysis is extremely important.
The goal of this analysis is to achieve a feasible project, not simply define an
infeasible one. Our experience as developers in financing numerous similar
ventures in other communities will be invaluable in.this regard. HII prides itself on
being a real estate development problem solving company with the ability to make
feasible projects out of typically infeasible ones. Through iterative processes of
financial analysis, cost. reduction, quality adjustments, and other real estate
development packaging techniques, we will endeavor to achieve the highest quality
facility that is realistically possible within market and financial constraints.
H. Economic Impact
In order to properly communicate the benefits of the envisioned project(s) to the
community, HII will prepare an impact analysis for the project. The impact
analysis will include an assessment of impacts on existing economic conditions in
the greater Federal Way area. It is our normal practice to conduct impact analyses
to demonstrate how "up front" public sector capital costs might be, in effect, paid by
the project. For example, we may demonstrate the tax flow increase as a result of
increased visitor spending and spin-off developments. A present value analysis
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HUNTER INTERESTS
I N C O R P O R A T E D
of these flows will show these aspects of the value of the project to local
governments. HII has considerable experience in demonstrating the economic
development value and the fiscal value of projects of this type to local governments.
All such decisions on impact techniques to be employed in this task will be
discussed thoroughly with the client before such exercises are undertaken.
The estimated public sector cost of each alternative will in turn be compared to
the direct, indirect and induced economic impact of each development alternative
in order to evaluate the cost/benefit relationship of various development
alternatives. Economic impacts will include total private sector investment; jobs
created; direct, indirect and induced spending injected into the local and regional
economy; and benefits to surrounding neighborhoods and communities.
A preliminary fiscal impact analysis will also be prepared using current tax rates
and aSsessment and taxing practices of appropriate local and state jurisdictions.
A calculation of t~e capitalized value of the tax flow increase from the property
will be included in this analysis so that the City of Federal Way can compare the
economic value of the proposed development with their capital investment in the
site to date, and any additional investment requirements.
I. Tourism Marketing Plan
The market research conducted in Phase I will serve as the basis for the eventual '/1/~,~)}~----'~7 ~ i~t..
tourism marketing plan..This research will serve as the basis for identifying aJ][i
market focus for the greater Federal Way area and the development of an actionJt[[[
plan for the next three to five years. We will provide a set of recommendations,
which will p_o_si_t[on__the~gr.eater Feder~ Way .area_a_a_p~ropriately in the regional~
mar~-~cetplace. These recommendations will include identification of the most~,
~fpproPfi~/f~- and lucrative (from an economic impact standpoint) target markets,
pricing strategies, yield management and booking policies, and the most effective
advertising and promotion mediums.
A major strength of our work approach is its focus on~j~rn~P!e.m.~n.t_a, tjon and
~t. From the outset we will identify feasible development projects that
hold promise for quick implementation. Under this task, HII will prepare a step-
by-step implementation process for all feasible development components.
S~c rol____e~ and r_e_s._P~ns_i_bflj_ties for q:ommunit)~ organizations and government
agencies will be identified, along with procedures for packaging high priority
projects.
HUNTER INTERESTS
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HII will id~entify, and critique barriers tn tcm~s_m ~,we.~t and ~attracfions such as
~_arcel size, tran~sr>ortation_ operations and accessibility, ltedestriar~ accommod at. tom.'
existing land uses and physical conditions, existing government services and
programs, surrounding ~ d~I]~es?~=ag~, and code requirementq_ The refults of the
above tasks will be used to identify specifi~ c'--atalysts.
In this task we will develop a structure for each target intuitive/project, including:
Preliminary recommendations regarding overall project feasibility (i.e., market
support, b. asic financing assumptions, funding sources and investment
returns). (.~
· Required form and magnitude of development incentives.
· Expected project timing and phasing.
· Expected roles of various public and private organizations in project
implementation and an effective organizational structure to implement the I
proposed plan.
· Preliminary public investment costs and benefits.
J. Report and Presentation
All work described above will be summarized in a final project report, including
tables, charts, and graphs. This report will be prepared in a manner that will help
solicit investment/development groups for the project. It could also be used for
securing a consensus of support for the project locally and for securing financing for
the project. The report will include an Executive Summary which is suitable for
separate publication and broader dissemination in the community. Detailed
technical analysis above may be included in appendices to facilitate the readability
of the final report document.
Although the scope of the report will evolve as the engagement proceeds, the
following outline should provide an indication of the expected format:
· Introduction and Scope
· Executive Summary
· Facility Concept and Mission
· Competitive Environment
· Evaluation of Existing Fac:,lities
· Demand Analysis and Special User Groups
· Facilities Recommendations
· Site Recommendations and Evaluation
· Estimated Utilization and Rates
· Initial Financial Analysis
HUNTER INTERESTS
! N C O R P 0 R A T E D
· Preliminary Capital' Budget
· Economic Impact
~--Yourisrn ~
~ath Events Schedule
Throughout the above work process we seek a close working relationship with City
officials and other interested parties. We envision several meetings and progress
reports during this process. We will verbally test our initial findings and
conclusions with City officials before they are committed to written reports.
Partnership members will be given ample oppommity to question and challenge our
findings and recommendations.
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Corporate Description
Hunter Interests Inc. is a full service real estate economics and financial consulting
finn based in Annapolis, Maryland, with offices in Florida and New York City. The
firm has experience in virtually all types of development throughout the United
States and abroad. It specializes in large scale, mixed use development projects in
urban areas, the packaging of innovative public/private partnerships, and downtown
revitalization strategies.
Hunter Interests Inc. offers a complete army of feasibility study services, including
market studies, financing plans, fiscal impact analyses, development and
management programs, marketing strategies, developer solicitation and selection,
negotiation of development agreements and the procurement of project financing.
The firm's clients include large and small developers, local governments, and quasi-
public development organizations.
Mr. Donald E. Hunter formed Hunter Interests Inc. in 1986 after 11 years as co-
owner of another large consulting firm which pioneered new development and
financing techniques. Hunter Interests Inc. applies this knowledge and experience
to its own development projects and those of its clients, with more personalized
service and greater principal involvement.
The staff and affiliates of Hunter Interests Inc. include some of the top_professionals
in the fields of urban economics, develop .ment finance, organizational management,
hospitality and tourism, gaming and entertainment districts, waterfront
development, economic and fiscal impact, real estate appraisals, senior housing, site
planning, and architecture. All consulting assigmnents are either personally
managed by Mr. Hunter or one of the firm's vice presidents.
Hunter Interests also has a development division which conducts strategic property
acquisitions, land assemblages, and capital development projects. The firm's
combined experience as a developer and economic consultant is unique in our
business and commands additional respect from development companies and
financial institutions.
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Economic Analysis and Strategic Planning for:
Convention Centers, Exposition Centers, Conference Centers,
Hotels, Resorts, and Sports Facilities
The principals and staff at Hunter Interests Inc. have considerable experience in
conducting economic analysis and feasibility studies for convention and exhibition
centers, conference centers, civic centers, hotel, and resort projects. The projects
summarized below describe this e~perience.
Albany, New York Empire Convention and Exhibition Center m HII
conducted a market analysis and developed a strategic plan for the expansion of
the Empire State Convention Center which is the only state owned and operated
convention center in the Country. The strategic plan included recommendations
to induce private sector investment in support facilities such as hotels,
restaurants, and entertainment as well as an overall financing strategy. Currently
Phase I recommendations are being implemented.
Jackson, Mississippi Convention Center and Conference Center -- HII is
assisting the State of Mississippi and the City of Jackson in the development of
a two-phase public assembly facility which will include a high tech conference
center, convention and exhibition center, headquarters hotel, and an urban
entertainment center. Previously HII conducted an in-depth market analysis for
the convention and conference component. HII prepared a request for proposal
for private sector partners, developed an overall financing strategy for the
projects, conducted in-depth site analysis and represented the State in all
contract negotiations with project partners which included the City of Jackson,
private sector developers, and third party investors.
Virginia Beach Public Assembly Expansion Plan -- HII conducted a market
analysis for a convention and tradeshow facility. Market analysis work was
followed by the preparation of a strategic plan to strengthen the city's
convention, entertainment, and hotel offering. HII provided site
recommendations, market-driven design programming for the convention and
exhibition facility, developed a financing plan and a strategic plan to enhance
the resort area's offering for convention, exhibition, and consumer shows. HII
also developed a Request for Proposals for private sector partners and represents
the City in the creation of public/private partnerships in the resort area.
Palm Beach, Florida Convention Center m HII conducted a market analysis
to determine the potential room night generation in Palm Beach County as a
result of the planned development of a convention center in West Palm Beach.
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convention, entertainment,, and hotel offering. HII provided site
recommendations, market-driven design programming for the convention and
exhibition facility, and developed a financing plan and a strategic plan to
enhance the resort area's offering for convention, exhibition, and_consumer
shows. HII also developed a Request for Proposals for private sector partners
and represents the City in the creation of public/private partnerships in the resort
area.
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Palm Beach, Florida Convention Center -- HII conducted a market
analysis to determine the potential room night generation in Palm Beach
County as a result of the planned development of a convention center in West
Palm Beach. Findings were used to determine the ability to finance the
project through the use of a hotel room tax.
· Downtown Seattle Waterfront Project -- Hunter Interests assisted the Port
of Seattle in the planning and development of the central waterfront in
downtown Seattle, Washington. This prime property is located near the
historic Pike Place Market and the Seattle Aquarium. The private
development components include a 150,000 square foot office project, a
luxury waterfront hotel, specialty retail, a 50-room inn, and a 150-unit
r~dential p~blic sector components include a new international,
<.__h!gh-tech confere~enter, marina, restaurant, museum, and working
waterfront facilities. The firm conducted market and financial feasibility
studies for private development components and assisted developer
solicitation procedures.
Baltimore Convention Center/Hotel ,- Mr. Hunter's firm conducted the
initial economic feasibility study for the downtown waterfront Hyatt Regency
Hotel and phase one of the Baltimore Convention Center. Economic advice on
two subsequent hotel projects followed this initial new hotel development on the
Inner Harbor when Baltimore's historic downtown renaissance was in its early
stages.
Greenville Commons Community Center and Hyatt Regency Hotel -- Mr.
Hunter's finn conducted all feasibility studies and negotiated financing and
development agreements for the innovative Greenville Commons project in
Greenville, South Carolina. This early public/private partnership creatively used
federal monies for conference facilities, parking and atrium space which is a
public park that serves as a focal point of community life, making a Hyatt
Regency Hotel feasible in a Holiday Inn market. The project received
considerable national and intemational publicity as one of the first highly
leveraged public participation ventures, and became a model for numerous
UDAG projects during the 1980s.
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Manchester, New Hampshire Civic Center -- The rum conducted a
detailed market study, financial analysis, financing plan, and fiscal impact
analysis for a $45 million arena, with convention exhibition space and
breakout rooms, as the first phase of a downtown convention center/hotel
complex. The Manchester City Council unanimously endorsed our
recommended financing strategy. Mr. Hunter assisted the City in negotiating
a revenue bond guarantee with the state government. The project leverages
the redevelopment of an adjacent multi-story mill building by being
functionally integrated with this historic structure and using lower cost
renovated .space in the existing building to achieve certain construction
economies. This project was recommended in the award-winning Intown
Manchester Plan prepared recently by I-HI and a participating planning rum.
HII typically continues to assist its clients with detailed feasibility analysis,
procurement of financing, and owner's representative services to implement
projects which are conceived in its planning programs. Manchester is an
excellent example of this continuing service. The Manchester project also
demonstrates our ability to plan a broader downtown redevelopment strategy
and implement it by proving financial feasibility for a sizable action project
which will, in turn, heighten investor confidence in the downtown area and
assist the implementation of other redevelopment projects.
Asheville, North Carolina -- Hunter Interests is currently representing the
City of Asheville in developer solicitations and negotiations for a downtown
mixed use development. This development will serve as anchor for the City's
hospitality district and create a linkage to the downtown residential, corporate
and residential districts. The development plan includes a public market similar
to Pike Place in Seattle, a high quality hotel, entertainment, and parking
facilities--all to be linked by a privately funded park and promenade.
Mobile Convention Center/Hotel -- HII assisted the City of Mobile,
Alabama, in determining a method to finance a 600-room convention
headquarters hotel on a site adjacent to a $55 million convention center, which
was recently completed. A unique casino gambling strategy is being used to
leverage the hotel after the City failed to secure a development commitment
during a four-year effort. Two of the nation's largest gaming operators
validated the firm's technical work by agreeing to finance, construct, own, and
operate the casino/hotel complex.
Redskins Stadium Economic Impact Analysis -- The team of Hunter
Interests Inc. and Anita Kramer & Associates was selected through a
competitive procurement by M-NCPPC to conduct a detailed economic impact
analysis of Redskins Stadium, subsequently named Jack Kent Cooke Stadium.
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The actual economic impacts realized by other recently constructed stadiums
were first surveyed in detail. A detailed analysis of ~fic flows and
surrounding properties was next conducted. Finally, specific redevelopment and
revitalization Strategies were recommended to take advantage 9f market
strengths and trends in the area in order to maximize the impacts of stadium
development. During this project HII and AKA principals established an
excellent database on PG County markets and studied properties in zip code
20743 in detail.
Mexico City Eeo-Resort -- The finn is presently advising an environmental
foundation'on development of Mexico's fn'st international eco-resort which will
be anchored by an 85,000 square foot conference center and 400-room hotel.
HII conducted a detailed market analysis and financial feasibility assessment for
the conference center/hotel project and is advising the client on development
and financing strategies.
Charlotte Downtown Sports Arena -- Mr. Hunter and his colleagues
conducted a detailed economic feasibility analysis for a 20,000-seat downtown
sports arena in Charlotte, North Carolina. The arena was part of a larger
downtown redevelopment strategy which included an expansion of the
downtown convention center, corporate headquarters for a national Charlotte-
based company, and retail/parking improvements on several blocks adjacent to
the downtown retail core.
Kingsport Conference Center/Hotel -- Mr. Hunter is the owne~/developer of
the Kingsport Resort Community on the Potomac River south of Washington,
DC. The project includes a 200-room hotel and 24,000 square foot conference
center in the first construction phase. A complete market feasibility analysis and
financing plan was conducted in 1992.
Allentown, Pennsylvania, Hybrid Exhibit and High-Tech Conference
Center -- The leaders of Allentown, in an effort to revitalize the central
business district, contracted with a large national consulting finn to conduct a
feasibility study for an exhibition and convention facility. Initial findings
concluded that the proposed facility was infeasible, causing the project to be
terminated. However, in a recent planning initiative led by HII, the concept of a
public assembly facility in Allentown was revisited. After analyzing all the
potential demand segments available, as well as partnership opportunities, HII
recommended a unique strategy of creating a hybrid high-tech conference and
training center with a multipurpose exhibitio~fi~illty:-. .......................
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The high-tech portion of the center will create a reason for regional association,
education, and training demand to consider Allentown a viable meeting and
training destination which, in turn, will make the larger exhibition and
convention facility attractive for larger, all-constituent association-meetings.
The effect' will be a dramatic expansion of meeting demand levels which will
benefit the previously flat hotel market. In addition, the high-tech portion of th~}
facility will serve as an inducement to attract a high~tech employer to downtowr~]
Allentown. The employer will serve as an anchor tenant for the facility, which~
will eliminate the need for ongoing operating subsidies for the center.
· Green Ba~ Downtown Convention Center/Arena -- The firm recently
worked in Green Bay, Wisconsin, on a downtown redevelopment strategy that
includes expansion of an existing downtown convention center and a new
sports arena. An existing 11,000-seat arena has been judged too small for
larger events and will be used in the future as a secondary facility with the
new 18,400-seat arena becoming the primary facility for a wide variety of
amateur sports events. The fm'n's work included detailed economic feasibility
studies, and bringing a team of experts on comparable facilities in other
communities to Green Bay for a series of workshops and public forums on all
elements of the HII downtown strategy.
TaHahassee, Florida, Civic Center Expansion and Headquarters Hotel --
Hunter Interests was recently engaged by the City to assist in the development
of a strategy to improve the state capital's meeting offering, specifically
targeting the state association and executive education demand segments. After
analyzing the market situation, HII recommended that the existing civic center
expand its meeting facilities to induce the private development of a high quality
headquarters hotel (Tallahassce is currently vastly undersupplied in terms of
quality hotels), which would serve both Florida State University's executive
education center and the expanded civic center.
Roanoke Convention Center -- A senior HII staff member packaged the
construction of a conference center along with the renovation of the 400-room
Hotel Roanoke for Virginia Tech University. The work included
detailed market analysis, a financing plan, and assistance in negotiating the
$50 million public/private agreement. Another member of our staff
subsequently prepared a detailed user groups analysis which was used to
prepare a facilities profile for the conference and convention center and to
formulate operational agreements and booking policies
NJ TRANSIT Joint Development Project -- HII is economic and financial
advisor to the New Jersey Transit Corporation for a $230 million three-phased
development program on air rights over one of the world's busiest multimodal
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transportation facilities. On the western shore of the Hudson River across
from midtown Manhattan, this unique project includes a waterfront hotel and
conference facility in an historic ferry building that will be renovated to
include retail and office uses. The firm completed market and_financial
feasibility analyses and is advising the client on developer solicitation and
negotiation procedures.
Conference Center/Hotel at the Dallas Zoo -- HII is presently assisting the
Dallas Zoo in a strategy to become financially self-sustaining by the year 2015.
A uniquely, themed conference center/hotel is one of several new developments
that will be undertaken by the Zoo in conjunction with new exhibits and
innovative entertainment concepts during the next 20 years.
Jakarta Conference Hotel -- Mr. Hunter negotiated development and
financing commitments for a conference hotel in Jakarta, Indonesia, when he
was managing the development of the nation's largest industrial park for
'Westinghouse and the Central Government. Financing was provided by the
World Bank.
Shreveport Downtown Hotel and Expo Hall -- Mr. Hunter's fu'rn assisted the
City and downtown development organization in assessing feasibility of a
waterfront hotel adjacent to the Expo Hall conference facility. A group business
market study was the basis for an Expo Hall expansion proPosal which also
improved the financial performance of thc entire project.
Philadelphia Airport Mixed-use Development -- Mr. Hunter is designated
developer for a four-building complex at an Interstate 95 interchange south of
the airport. The first development phase includes a 230-room conference hotel
oriented toward the airport conference market.
Richmond Downtown Coliseum and Sports Stadium -- Mr. Hunter's firm
has functioned as economic advisor to the City of Richmond, Virginia, since
the mid-1970s when the firm co-authored the Richmond Downtown Plan.
Capital projects that have been successfully constructed in downtown
Richmond include thc Coliseum Sports Arena, Convention Center, Marriott
Headquarters Hotel, Virginia Center for thc Performing Arts, and the Project
One mixed use office retail/entertainment project. Mr. Hunter's firm did a
complete economic and financial feasibility analysis for the Richmond
Braves' minor league baseball stadium which was also successfully
constructed in thc late 1980s. The firm negotiated public/private development
agreements for Project One and the Marriott Convention Headquarters Hotel.
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Clearwater Downtown Conference Hotel -- The firm recently completed
economic and fiscal impact assessments for a downtown mixed-use
development on publicly owned property in downtown Clearwater, including a
publicly funded civic center (to be constructed in three ptms~s) and a
headquarters hotel, as part of a strategy to leverage publicly owned land into
new city hall space which the City can occupy at no capital cost.
Michigan Conference Center/Hotel ~ In St. Joseph, Michigan, I-HI was
economic consultant to a professional team that planned a. multi-use
recreation/residential development on a former industrial waterfront site. The
project includes a waterfront conference center/hotel in the second phase for
which I-III conducted market and financial feasibility assessments and a separate
fiscal impact analysis.
Dayton Downtown Hotel Expansion and Inn -- HII assisted Dayton
Citywide Development Corporation and the City of Dayton on thc feasibility of
expanding the Stouffer's Hotel adjacent to the downtown convention center. In
a separate assignment the firm conducted initial feasibility investigations for
renovation of the historic Arcade Building into a motor inn, including
introducing the City to an operator of projects of this type.
Annapolis Waterfront Hotel and Conference Center -- Mr. Hunter was a
partner in a venture that planned a small waterfront hotel and conference center
in conjunction with facilities at the U.S. Naval Academy, after winning a
national competition to become the hotel developer.
Biloxi Waterfront Hotel and Casino -- HII recently completed an assignment
for the City of Biloxi to assess the feasibility of a 400-room waterfront hotel in
conjunction with the second phase of dockside riverboat casinos on the city-
owned Point Cadet site. The project included negotiations with a designated
developer and lessee, and several private vendors and governmental entities with
leasehold rights on the site.
Alexandria Downtown Conference Hotel -- HII recently completed a series
of detailed financial feasibility studies for the City of Alexandria, Virginia, as
part of a negotiated rezoning process for a 21 million square foot mixed-use
development along the Alexandria waterfront as an extension of the Crystal City
development to the north.
Hoboken Waterfront Development -- Mr. Hunter led negotiation teams in
1989 and 1991 that successfully negotiated portions of a major waterfront
development to be undertaken by the New York and New Jersey Port Authority.
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The City of Hoboken is the landowner and was Mr. Hunter's client during
intensive negotiations which resulted in complex land lease and development
agreements, including construction of a waterfront conference center hotel.
Kentucky Center for the Arts -- Mr. Hunter's company managed-a six-firm
feasibility analysis team for Gerald D. Hines Interests to package a mixed-use
development project in downtown Louisville that included the Kentucky Center
for the Arts. The complete feasibility package received the governor's approval
and 70% of the capital monies were provided by the State since thj.'s unique
cultural facility served the entire state population.
Albuquerque Perfoming Arts Center -- I-HI conducted a sophisticated
economic analysis of eight different development proposals for a performing
arts center in Albuquerque. A downtown location opposite the City's central
square was eventually selected due to the ability to use the facility for
conventions, conferences, and civic events as well as enterta/nment venue.
St. Petersburg Convention Center -- Mr. Hunter's firm had an office in St.
Petersburg, Florida, for several years while packaging the expansion of the
Bayfront Center, a performing arts facility that was being enlarged and
converted to conference and exhibition usage. A complete feasibility analysis
and financing program was prepared.
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INCORPORATED
Other Consulting Experience
Examples of recent successful consulting assignments managed by tile fm'n or
overseen by Mr. Hunter include:
Winston-Salem, North Carolina -- Hunter Interests prepared a downtown
development plan with a focus on enhancing Winston-Salem's entertainment
and convention offering. This action-oriented plan includes a strategy to draw
regional and local tourists to downtown Winston-Salem with a unique
entertainment project which currently does not exist in the regional marketplace.
City of Allentown, Pennsylvania Downtown Development Plan m Hunter
Interests prepared an innovative downtown development plan which includes an
analysis of the current economic, traffic, and parking conditions in downtown
Allentown, PA. Our analysis included urban design recommendations and the
preparation of a development plan which identified development opportunities,
development packaging including developer solicitation, and a detailed
implementation strategy. Early on in the work process our team identified a key
project which will have a significant economic impact on Allentown and the
region. Currently Hunter Interests is working on packaging this project in a
manner which will leverage other spin-off development and tum around a
decaying urban environment.
Albany Entertainment Strategy -- Hunter Interests recently completed a
strategic plan for new entertainment development in downtown Albany, New
York. Development recommendations included the Albany Aquarium on the
Hudson, creation of an Urban Entertainment Center in a reused meat packing
warehouse, and framework for a restaurant row based on planned growth in
riverfront attractions. All projects are proceeding.
NJ TRANSIT Terminal Mixed Use Development -- Hunter Interests was
hired for planning, feasibility analysis, developer solicitation and negotiation for
a large-scale development on the 55 acre Hoboken Transit Terminal site
overlooking the Hudson River and Manhattan. Our work process was judged
superior to a large number of competitors. Development goals have been
established; market analysis is complete; parcelization and planning alternatives
have been prepared and implementation strategies for a three-phased
development are complete. The firm assisted a successful developer solicitation
for a Phase II mixed use tower.
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Lakewood Urban Enterprise Zone -- Hunter Interests and The Atlantic
Group recently completed a project in Lakewood, New Jersey, which focused
on building community involvement through the use of vision testing in
conjunction with a survey of existing market conditions. Our work approach
included the evaluation of existing programs and services in Lakewood,
followed by a market analysis of development and revitalization opportunities.
This economic analysis became the basis for subsequent programs, strategies,
and the zone development plan.
Ohio State University, Columbus, Ohio m Hunter Interests is currently
involved in a major project with OSU's redevelopment ann, campus Partners,
that focuses on revitalizing and upgrading a key mixed use area adjacent to the
University. The firm's role is to recommend specific market-supported
oppommities, establish financial feasibility, and structure a joint venture
between the University and private developers. The project will include a new
University visitor's and .admissions center, commercial office space,
residential programming, retail businesses, entertainment venue, and a
specialty grocery operation, all designed in a tom center format which will
serve both the University community and downtown Columbus.
Charlottesville, Virginia m Our firm was retained over several competitors to
prepare an economic development strategy for the City, with the focus on
downtown Charlottesville. Working closely with a task force of public/private
sector leaders, part of HII's work approach included conducting a workshop
meeting with key City staff and approximately 80 attendees to assess market
opporiunities in Charlottesville and to recommend five specific actions for
development in their downtown commercial district.
Edgewater Mixed Use Development -- This 75-acre waterfront site in St.
Joseph, Michigan, will accommodate marina, office, residential, hotel, and retail
uses when the Master Plan is implemented during the balance of the 1990s.
This former industrial site has toxic waste problems that will be cleaned up
using an elaborate process involving state DNR, engineering, and environmental.
firms who are part of our project team. Hunter Interests is assisting with market
and financial analysis and development advisory services.
Annapolis Retail Analysis -- HII recently completed an analysis of three retail
areas in historic downtown Annapolis, Maryland. This effort was part of a
larger study aimed at providing guidance to the City and property owners on
economic development growth, tourism potentials, and retention of the scale and
character of the old City.
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Dallas Downtown Retail Mall -- The City of Dallas wanted a regional
shopping center in the downtown area to complement the headquarters of the
Neiman Marcus department store. A national competition was reduced to
three national development companies who proposed mixed use retail
developments on three different downtown sites. Each company invested
several hundred thousand dollars in site options, development plans and
feasibility studies. As a national expert on downtown development, Mr.
Hunter was asked to participate on a selection panel to evaluate development
proposals and recommend a developer/site to the City. Mr. Hunter and the
firm have participated in several similar developer solicitation and selection
processes.
Alexandria 2020 --'HII recently completed an extremely sophisticated
financial analysis of an 18 million square foot 30-year development program
proposed for the Potomac Railroad Yard in Alexandria, Virginia. A unique
financial model was designed specifically for this project, and approximately 45
separate sensitivity runs of the model have been conducted to test various
assumptions and variables. Mr. Hunter functions as the City's expert witness in
public hearings and litigation related to this large economic development
project.
Kirkland Downtown Parking Program -- HII was traffic and parking
consultant to the Kirkland Downtown Association (KDA) and the City of
Kirldand, Washington. The firm prepared a comprehensive par. king analysis
and plan involving three new parking structures and a detailed
pricing/management program. This work included analysis of traffic and
parking conditions in 11 Washington cities including Seattle.
Fairfax Government Center -- Mr. Hunter was principal in charge of
financial analysis, developer solicitation and negotiations for the highly
publicized public/private partnership which developed the 634,000 square foot
government center in Fairfax County, Virginia. This unique arrangement saved
the county approximately $62 million by allowing private developers to use part
of the site in exchange for constructing the $80 million government center
complex and making it available to government use. This project was modeled
after several other public/private ventures for government facilities which Mr.
Hunter packaged earlier in his consulting career.
Hoboken South Waterfront -- Hunter Interests Inc. is presently financial
consultant to the City of Hoboken for a 3.2 million square foot waterfront
development across the Hudson River from the New York World Trade Center.
Mr. Hunter has personally led a team of planners, attorneys and city staff
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through preparations and negotiation of development agreements for the
construction of a $680 million mixed use development. The project includes
office space, 1400 residential units, a 400-room hotel, a 650-slip marina, 14
acres of public parks and open space, a new waterfront boulevard with a public
use esplanade, a small retail component, and support parking. In a highly
charged political environment, Mr. Hunter negotiated with the NY/NJ Port
Authority and twice reached acceptable agreements.
Kingsport -- Mr. Hunter recently purchased 1400 acres of prime development
property south of Washington, DC. Hunter Interests Inc. is now managing
planning and development feasibility studies for a six-amenity destination resort
and 1200 residential units. The fu'm's contract with Mr. Hunter is for services
in excess of $500,000 for this $235 million project with 1.5 miles of Potomac
River shoreline.
Scotts Creek -- For a public sector client, Hunter Interests Inc. managed a
three-firm consultant team which prepared a complete development feasibility
analysis, plan and fiscal impact study for a sensitive waterfi'ont site which was
the subject of conflict between neighborhood interests and city government. The
conflict was resolved through sensitive analysis and planning which involved
satisfying both groups' objectives.
· Ocean Center I I-III conceived of this $400 million mixed use waterfront
development involving 2,000 residential units, a 400-room resort_hotel, 80,000
square feet of office space, 40,000 square feet of retail space, a marine industrial
center, sUpport parking and a 735-slip marina. The firm negotiated land
acquisition arrangements; made preliminary arrangements for utility service;
prepared a complete market and financial analysis; conducted conceptual design
studies for individual buildings after preparing an overall master plan; and
functioned as developer's representative through land acquisition and project
financing negotiations. ~'
· Filiorum Property -- The firm managed development feasibility analysis and
property sale negotiations for a private owner of 320 acres of ocean view
property on the Palos Verdes Peninsula in Los Angeles. Considerable value was
created on the property during the firm's work by clearing certain
predevelopment hurdles and encouraging several prospective purchasers into a
competitive arrangement which bid the value of the property up. During
approximately one year of the finn's management services, the value of the
property more than tripled. Mr. Hunter personally negotiated the sale of the
company which held the property in order to minimize his client's tax
consequences.
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Papermill Pond m The farm conducted a complete market analysis for a 903-
unit waterfront golf course development which was positioned to participate in
the Washington, DC, second home market and regional retirement market. A
development program involving the phased development of four different
residential products and a large amenity program was accepted by the client.
The study created considerable value on the property as well as solving
numerous predevelopment problems. The firm continued to assist in
development and sales negotiations.
Albuquerque Performing Arts Center w The City of Albuquerque retained
Hunter Interests Inc. to conduct an economic analysis of six different sites for a
$64 million performing 'arts center. The £u'm completed a sophisticated analysis
of development costs and benefits in a short 2.5 month period to conform with
the City Council's decision schedule.
Dodge Main Plant Reuse -- Selected over 40 competitive consulting fums,
Mr. Hunter assembled a five-firm team which was selected to plan the reuse of
the 5 million square foot Dodge Main Manufacturing Complex in Hamtmmck,
Michigan, outside of Detroit. More than 85 different reuse alternatives were
considered in parallel with seeking a new automotive assembly plant for the site.
An $800 million development project resulted with approximately $200 million
in public monies, and the Nation's largest urban renewal project was launched to
deliver a site to General Motors for the high tech, robotic assembly plant which
now occupies the site. A controversial project which went ahead despite
organized resistance from Ralph Nader and others, and media coverage from
"Sixty Minutes" and other network television shows and national magazines,
this successful redevelopment effort nOw provides over 2,000 jobs and
significant tax base for Hamtramck and Detroit.
Other Projects -- HII consults on economic base studies, real estate
development projects, and other economic analysis as part of its normal
consulting practice. The firm regularly undertakes market and financial
feasibility studies, fiscal impact assessments, and other technical economic
analysis assignments as part of specific project planning programs and broader
city-wide economic development strategies. Examples of other projects can be
provided upon request.
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Development Experience
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During the eleven years that Mr. Hunter was co-owner of ZHA, Inc.r the firm
packaged numerous innovative development projects including Crreenville
Commons, Palmetto Center, Star Center, Project One, the Virginia Center for the
Performing Arts, The Kentucky Center for the Arts, the Soutbem Bell regional
headquarters, the Tennessee Valley Authority office complex, River Village, 22
major hotel developments, numerous mixed use complexes and residential projects.
Seventeen of the firms projects were considered truly innovative and state of the art,
and were used as examples of "how to do urban mixed use developments" in the
Urban Land Institute's Downtown Development Handbook published in 1980. Mr.
Hunter and his colleagues at Hunter Interests Inc. have stayed on the leading edge of
new development techniques since these earlier experiences.
Mr. Hunter has also formed and owned several successful development enterprises
during his 30-year career. In 1980 with two partners, he 'formed a development
company which grew to be the 23rd largest in the nation in only five years. He also
formed a real estate finance and portfolio management company which successfully
built his investment portfolio and that of other substantial investors. Hunter
Interests Inc. now functions in this capacity since Mr. Hunter initiated the profitable
sale of his interest in these enterprises.
A cross section of development projects which Mr. Hunter has personally managed,
or which have been undertaken by his companies, includes the following:
The ARA Tower m A 735,000 square .foot, mixed use project in downtown
Philadelphia. This $80 million development has changed the skyline of one of
the nation's largest cities with its 32-story office tower and retail arcade which
;connects directly to a subway station, the cross town rail tunnel, and Jim
Rouse's Gallery project. A unique public/private partnership, this complex
includes site improvements and an eight-level parking structure which were
partially financed with City and Federal 'Government funds. The project was
constructed on time and under budget. It was successfully leased ahead of
schedule and profitably sold to the Reading Company which owned the site and
was a partner in the venture.
Saddle Run -- A 365-acre executive equestrian conununity in suburban
Washington, DC. Mr. Hunter acquired the site as an assemblage of farms and
small parcels adjacent to the Gainesville interchange on 1-66. He planned the
community for 751 homes, an office park of seven buildings totaling 1.1 million
HUNTER INTERESTS
! N C 0 R P O R A T E D
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square feet of space, a community center with a lavish clubhouse and
pool/tennis facilities, and a full service equestrian center on an internal system
of bridal paths and jogging trails totaling more than 3.9 miles in length. Saddle
Run has received national publicity in several magazines as an innovatively
designed community which allows executives to live closer into the city on
smaller estates or in a variety of housing types while family members can enjoy
keeping their horses within the community in commonly owned facilities.
Redwood TOwer -- A 24-story office building overlooking the Inner Harbor in
downtown Baltimore. This 'm~n~ ovative air fiehtsdev~e~ol~men_t over a nine-st0r7~
parking garage posed several serious design and construction problems
---wlii~h-irmiSva~ve-'~'sot~,n$ ;;~e necessary. Recently completed and now
leasing, this project features express elevators from street level to a glass
enclosed "sky lobby" atop the parking structure, with additional elevator banks
servicing the tower above.
Fairway Mews -- A 465-unit, luxury townhouse development on the New
Jersey shore. Mr. Hunter personally managed the development, construction,
and marketing of this golf course community which included a swim/tennis
club, 14,000 square foot restaurant, and an 18-hole executive golf course.
Jakarta Industrial Estate m A 1,700-acre, three-phase industrial park in
Jakarta, Indonesia. Mr. Hunter conducted detailed feasibility studies for this
unique joint venture between the national government of Indonesia, the
provincial government of Jakarta and Westinghouse Electric Corporation. As
the on-site manager of the project, he successfully negotiated financing from the
World Bank and managed development oPerations while training his Indonesian
counterparts.
Hunter Interests Inc. has acquired development sites and is pursuing unique
development oppommities in twelve states, including projects on both coasts, the
Midwest, the south and the New England area. During his 30 years in the business,
Mr. Hunter has established a network of contacts that brings forward development
oppommities of all types. The company seeks to invest in and develop unique and
interesting projects that are out of the ordinary, using the talents of Mr. Hunter and
his colleagues where they can be most beneficial. Throughout his career, Mr.
Hunter has specialized in doing the difficult or the impossible--putting
development projects together where others have failed by finding the creative
solution to the most unusual problems of site assembly, design, approvals,
construction, financing, and management.
HUNTER INTERESTS
I N C O R P O R A T E D
Donald E. Hunter
President
Hunter Interests Inc.
Annapolis, Maryland
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Mr. Hunter is an urban economist and real estate' consultant who has packaged,
financed, and constructed numerous successful development projects during his 30-
year career. His development projects, managed personally or by his development
companies, total more than $760 million in value. Consulting assignments in which
he or his finn caused development to occur total more than $3.4 billion in value.
Mr. Hunter is president of Hunter Interests Inc., an award winning real estate
investment, development, and consulting firm, which specializes in large scale,
mixed use developments and public/private ventures in urban areas. He was
formerly co-owner of Zuchelli, Hunter & Associates, Inc., a real estate consulting
finn that he co-founded in 1975. Mr. Hunter retired from ZHA in 1986 to form
Hunter Interests Inc. in order to provide more personalized consulting services to his
clients, with more of his own involvement in each assignment.
During his professional career, Mr. Hunter has supervised, managed, or conducted
more than 830 independent consultant assignments in communities throughout the
United States and abroad. These include feasibility studies for virtually every type
of small and large real estate development (convention and exhibition centers,
hotels, office buildings,, shopping centers, high rise and suburban residential
developments, sports and entertainment facilities, and' mixed use Projects of many
types). In most instances his professional services have gone beyond traditional
feasibility studies into structuring public/private ventures to implement his projects;
soliciting developers and negotiating binding development agreements; procuring
financing and management services; and functioning as "owner's representative" for
public entities through the construction and early management processes.
Mr. Hunter is also a successful real estate developer and investor. He was co-
founder and co-owner of a development company which SUccessfully grew to be.the
23rd largest developer in the United States in only five years. He was also co-
founder and co-owner of a real estate finance and portfolio management company
which handled his own personal investment portfolio and that of other substantial
investors. He has created significant value on numerous large real estate holdings
for his partners and clients through sound asset management and proven
predevelopment techniques.
HUNTER INTERESTS
I N C O R P O R A T E D
Prior to forming his first company, Mr. Hunter managed several large commercial,
residential, and industrial development projects as an executive with the
Westinghouse Electric Corporation and its development subsidiaries. These
responsibilities included projects in the eastern United States and in Asia. -He was a
senior associate with two other consulting finns in the Baltimore/Washington area
prior to joining Westinghouse.
Mr. Hunter has also been active for two decades in several national professional
organizations. He is on the Board of Directors of the International Downtown
Association (IDA) and the National Council for Urban Economic Development
(CUED). He speaks several times each year on real estate trends and leading edge
development and finance techniques. He also served as chairman of a CUED
management committee which formed the Economic Development Research
Institute at the Kellogg Business School at Northwestern University.
Mr. Hunter holds a Master's degree from the University of Califomia, Berkeley, and
a Bachelor's degree from the University of Kansas. He serves on several corporate
and civic boards of directors; he served on an advisory board for the Kellogg
Business School at Northwestem University; and he was chairman of the Board of
Trustees for a 700-student independent K-12 school in Annapolis. Mr. Hunter has
published numerous articles and monographs on a wide range of professional topics,
and he lectures periodically at several universities. He has taught undergraduate .and
post graduate courses, functioned as an expert witness in several judicial
proceedings, and is considered to be a national expert on innovative real estate
development and financing techniques. He has been profiled in Who's Who in
A merican'Real Estate,
A self-made man, Mr. Hunter was raised by a single parent in a blue-collar Chicago
neighborhood. The first in his family to receive higher education, he worked his
way through seven years of college and earned a commission in the US Navy. He
served as a department head on a light combatant ship during two tours in Vietnam,
was shipboard nuclear weapons officer, and held a top secret/crypto clearance. He
received seven combat decorations including the Bronze Star. He now resides on
the shore of the South River in Annapolis with his wife and two daughters.
HUNTER INTERESTS
I N C O R P O R A T E D
Geoff Graham
· Vice President
Hunter Interests Inc.
New York, New York
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Mr. Graham is an urban economist with technical and analytical skills in market
analysis, financial feasibility assessment and economic impact analysis. He is also
an experienced technical writer with previous editorial responsibilities for national
publications in the hospitality and tourism industries.
Mr. Graham's background includes diversified experience in meeting-oriented hotel
operations as well as market, operational, site, and financial analysis for hotels,
conference centers, convention and exhibition facilities, and resorts. Mr. Graham's
varied experience in the hospitality industry enables him to provide broad scope
planning assistance and project evaluation skills to industry analysts, developers,
and investors.
Mr. Graham's areas of specialization include convention and exhibit facilities
conference Centers, civic center and arena/public assembly projects for which he has
provided market, financial, and operational analyses, marketing plan development,
and management contract negotiations. He has been actively involved in the
financial planning and development of conference and convention center projects
throughout the United States. Representative conventon/exhibifion projects
include: the cities of Roanoke, VA; Marietta, GA; West Palm Beach and
Tallahassee, FL; Jackson, MS; Allentown, PA; Asheville, North Carolina; Kent,
Washington; and Virginia Beach, VA.
Corporate conference and training center clients have included the Marriott
Corporation, IBM, Pacific Gas & Electric, The Bank of Montreal, and AT&T.
His university/college-based conference center clients have included Vassar
College, Gallaudet University, Northeastern University, Duke University, Hope'
College, University of Maryland Baltimore County, Towson State University,
Clemson University, and Washington University.
Prior to joining Hunter Interests, Mr. Graham was a senior associate with Horwath
Hospitality Consulting in Charlotte, North Carolina, for five years. He conducted
numerous technical feasibility studies for exhibition and convention facilities,
hotels, and arenas through the country during this period.
HUNTER INTERESTS
I N C O R P O R A T E D
Ernest E. Bleinberger
Vice President
Hunter Interests Inc.
Annapolis, Maryland
Mr..Bleinberger is an economic analyst specializing in urban entertainment, gaming,
and thoroughbred racing issues in this country and abroad. At Hunter Interests Inc.
he participated in numerous market analysis and feasibility studies associated with
these areas. He has co-authored articles on Urban Entertainment Centers for
ICMA's PM Magazine, and Gaming in America for Commentary magazine.
Most recently, Mr. Bleinberger has acted as project manager in Albany, New York,
on a strategic plan for enhancing the city's entertainmem and tourism attractions.
He also played a key role in a plan for redevelopment in Winston-Salem, North
Carolina, which included a significant tourism/entertainment componem.
Mr. Bleinberger has conducted a comprehensive review of the Atlantic City casino
market and prepared a report on revenue potentials in that market through the year
2005 as part of the firm's work on a litigation support case. He prepared a market
analysis for the Greater Baltimore Committee focusing on Baltimore City's position
in a legalized casino gaming environment. Mr. Bleinberger has completed also an
economic impact study pertaining to land values associated with the development of
the new convention center in Atlantic City, New Jersey.
Prior to joining Hunter Interests, Mr. Bleinberger was associated with Racing
Resource Group, Inc., where he authored nUmerous technical studies and surveys.
These studies required analytical capabilities as well as practical knowledge of
business projection and market research methodology.
Mr. Bleinberger began his career in 1977 at Pimlico Race Course in Baltimore,
Maryland, and by 1982, he had moved up to the position of Director of Racing at
the Hipodromo de Agua Caliente in Tijuana, Mexico, the youngest racing director
in the industry. He has also worked as a consultant to the Massachusetts, Florida,
Maryland, and Virginia State Lotteries. For each of these he developed lottery
games that would interact with thoroughbred race tracks and would be mutually
beneficial to the lottery and the tracks.
Mr. Bleinberger received a Bachelor of Science Degree in Journalism from the
University of Maryland, College Park, in 1976. Within the College of Journalism,
he specialized in Advertising and Public Relations.
HUNTER INTERESTS
I N C O R P O R A T E D
Anita Kramer
Senior Associate
Hunter Interests lnc,
Annapolis, Maryland
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Ms. Kramer is a financial and economic development analyst with experience
throughout the United States and abroad. She is experienced in economic
development, market demand, financial and fiscal analyses, project design, and new
business develgpment. Ms. Kramer has prepared economic development strategies
for cities seeking to expand their industrial, retail, and commercial office base.
Projecting demand for commercial, residential, and industrial space in cities of
20,000 to 8 million population for economic feasibility studies, she has developed
financial projections for shopping centers, office buildings, and housing
developments for both construction and operating phases.
Ms. Kramer has performed both market and financial feasibility analyses of public
assembly and hotel development potentials throughout the country. Her work has
included projects in Pensacola, Florida; Bay City, Michigan; Allentown;
Pennsylvania; and Chino, San Bemadino, Ontario, Redondo Beach, West
Hollywood, and Port Hueneme, California. Many of these projects involved joint
public/private ventures in which the cities and private developers used the outcome
of Ms. Krarner's analysis as a basis for decisions regarding their cooperative efforts.
Recently Ms. Kramer completed an economic development strategy for Prince
George's County that focuses on the opportunities presented by the Washington
Redskin Stadium currently under construction.
Prior to joining Hunter Interests, Ms. Kramer was a senior associate with Kramer
Associates, Inc., in Washington, DC. There she was responsible for creating new
foreign markets and stimulating new business activity for producers in Gaza and the
West Bank.
Ms. Kramer was previously a vice president at The Natelson Company, economic
and financial consultants in Los Angeles. Her work there included A Revitalization
Study for Mid-City District: Los Angeles, in which she identified economic potential
for five major arterials and an older shopping center. She was also project manager
on a three-part study that included an analysis of Chino, California's current
economic base and related trends, a step-by-step strategy for pursuing economic
potential, and a formal economic development element adopted by the city council.
HUNTER INTERESTS
! N C O R P O R A T E D
Ms. Kmmer's earlier work included policy analysis of property tax reform for the
Commonwealth of Massachusetts and providing research assistance that was
responsible for developing policy alternatives for the Chancellor of the University of
Massachusetts/Boston. -
Ms. Kramer holds a Master's degree from Harvard University in City and Regional
Planning and a Bachelor's degree, cum laude, in Economies and Urban Studies
from the University of Rochester.
What It Takes to get the Convention, Conference, Civic Center
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· Teamwork
· Patience
· A great deal of creativity and flexibility
First step of process is to reach consensus on your objectives and then
maintain focus on objectives throughout the process combined with a high
degree of flexibility on how you develop the facility.
The four main phases of making public assembly projects happen:
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Market analysis
Create political will and community support
which is ongoing every step of the way
Ensuring the necessary support infrastructure is in place
Financing the project
Market Factors
A. Do SWOT first (strengths, weaknesses,
opportunities, threats)
B. Include SWOT of environmental factors and political scenery
C. Simplify market work
1. Look for competitive advantages--hooks
for niche demand segments, voids in the
competitive environment
2. Ask potential end users what they want
3. Design facility to meet their needs
4. Determine what your community needs
to best meet the needs of end users
5. Look to unique features of your city and ·
region to take advantage of:
--Climate
--Historical attractions
--Urban environment
--Natural amenities
--Transportation
infrastructure; airports, interstate highways,
ferry/rail service, etc.
--Strategic geographic location/
linkages
--Strong hotel supply
--Weak regional competitive supply
--Entertainment/restaurants
--Growing and changing
industries; look for anchor tenants
that can creme a favorable
financing situation
--Site availability
II. Building political will and support for the project:
--Communication skills are critical
--Learn to listen carefully without rushing
to make your case
--A human's passion impairs their ability
to listen
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--Scan environment for significant forces; take people's
temperature on concepts at different stages of the game
-- Do not create perception that destiny is preordained.
Media relations: Need to manipulate and feed press to minimize
inaccurate slants; reporters often do not fully realize the fine points of the
project.
Negate political bias against politicians trying to make the project happen.
Be aware of other local government entities, business organizations, etc.
who may oppose the project--turf wars.
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Anticipate what the opposition will be and how to refute their argument
With factual evidence.
Clearly spell out balance of benefits in comparison to public investment.
If you have done your market work thoroughly, you should have a strong
case to present.
Conduct project briefings early and often before inaccurate leaks occur.
To be successful, it is critical:
To investigate turf control, differences in time frames, conceptual
perspectives, and human relationships and use them constructively.
You can have the best project in the world based on the market and
private sector interest, but if you have not psyched the political scenery
and anticipated two to three steps ahead and built consensus, the
project will flounder. Flexibility and political maneuvering are critical
to making the project a reality.
Support Infrastructure
All of the things that you need to support an Expo Center convention,
conference, or civic center are all the key elements of a vibrant town
center or downtown:
--Restaurants
--Entertainment
--Transportation infrastructure
--Hotels ·
Once the market analysis is complete the next step is to prepare investment
analysis for headquarters hotel.
Identify investment value based upon projected cash flows and current
capital market requirements. Once investment value is determined the
public/private deal structure is negotiated.
Recently the developer field willing to take on major headquarters hotel
projects has narrowed especially following recent tightening of financing
markets.
Development agreements need to provide a way for private sector to have a
viable exit strategy.
A number of active developers looking for 25% rate of return in recent
months to do deal convention center hotel deals.
Strike your hotel deal before breaking ground or you will lose leverage.
Getting feedback from the private sector.
Request for Qualifications, then Request for Proposal.
--RFQ purpose to create interest in the project
--preliminary feedback from private sector
on possible deal structure and need for gap
financing/incentives
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:-make RFQ simple and include market study
--easy to respond to in a format/language they
are used to
--basically, detail the development opportunity
presented by project and how public sector
envisions participating in the project.
The primary evaluation criteria of respondents are your primary objectives
that were determined at beginning of the process.
Potential financing sources for public sector component and private
sector incentives:
Lodging tax;
Prepared food and beverage tax;
Rental car taxes;
Sales tax;
Favorable financing terms--play the role of banker;
Catering contracts for public facilities;
Favorable ground lease;
Premises lease for meeting space;
TIF;
Cash payments to provide a buildable site;
Development contracts;
Sales tax exemptions;
Property tax exemptions;
G.O. bond financing;
Taxable revenue bonds financing
through lodging tax;
Municipal leases of conference space that hotel owns;
City parking at below market rate.
Each deal is unique. It is imperative to structure the deal to best fit
needs of both sides in order to create a win/win situation.
I--IUNT R INTERESTS
! N C 0 R P O R A T E D
Project Management, Schedule, and Budget
We have estimated our costs to undertake each task in the proposed work program
by assuming a mix of personnel for each task, and applying applicable hourly and
dally billing rates. These rates include provisions for payroll costs, benefits,
corporate overhead, and profit factors.
Mr. Donald E. Hunter, I-III president, personally oversees all-work conducted by
our firm. Mr. Geoff Graham, HII vice president, will be involved in the day-to-
day aspects of this project including project management and the conduct of all
technical analysis. He may be assisted by another of the firm's vice presidents,
Ernest Bleinberger, and Ms. Anita Kramer, senior associate.
All work will to be completed by July 31, 2000, as requested in your RFP. We
are prepared to commence work immediately in March and proceed continuously
within the next four and one-half months.
..~ :.-An-iXlitial estimate of the cost of professio~eehnieal, and administrative time
· ' ~e the two tasKs ~
described in the RFP is as follows:
,Cost
Task 1: Public Facility Feasibility Study
$_27,000
Task 2: Tourism Marketing Plan 8,000
Total: $35,000
We will bill monthly for actual professional time and direct expenses, with
payment required within 30 days to avoid interest and collection Charges. HII
carries normal liability and Workers Compensation for firms of our type, and will
hold harmless the City of Federal Way and its staff from any liability associated
with this work. HII is an Equal Opportunity Employer with an adopted
Affirmative Action Program, and agrees not to discriminate in any way during the
conduct of this assignment. ., ~ _~.. rL