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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 I ] ] 1 ] ] 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 ] ] ] 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 [ J t ] ] ] ] I 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 ,! ! 1 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 1 3 1 1 1 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. I ] J ] 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 1 l 1 1 l 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 ] 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) .1 ] ] 1 ] ] 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 l ] l l 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 1 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 ! N C 0 R P O R A T E D 1 J 1 J ] 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. I ! ] ] l l 9 HUNTER INTERESTS I N C O R P O R A T E D 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. HUNTER INTERESTS ! N C O R P O R A T E D 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. HUNTER INTERESTS I N C O R P O R A T E D 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. I { { l 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. HUNTER INTERESTS I N C O R P O R A T E D J 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. 1 HUNTER INTERESTS i N C O R P. O R A T E D I J 1 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:-. ....................... HUNTER INTERESTS i N C O R P O R A T E D ,1 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 HUNTER INTERESTS ! N C O R P O R A T E D 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. HUNTER INTERESTS I N C O R P O R A T E D 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. HUNTER INTERESTS I N C O R P O R A T E D 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. I l l ] HUNTER INTERESTS. 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. l HUNTER INTERESTS I N C O R P O R A T E ,D -} J 1 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. 1 HUNTER INTERESTS I N C O R P O R A T E D 1' -j I l 1 J 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 HUNTER INTERESTS I N C O R P O R A T E D t I l 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. HUNTER INTERESTS ! N C O R P O R A T E D 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. 1 HUNTER INTERESTS i N C O R P O R A T E D Development Experience I I ] J ] ] 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 $80 million development has changed the skyline of one of the nation's largest cities with its 32-story office tower and retail arcade which ;connects directly to a subway station, the cross town rail tunnel, and Jim Rouse's Gallery project. A unique public/private partnership, this complex includes site improvements and an eight-level parking structure which were partially financed with City and Federal 'Government funds. The project was constructed on time and under budget. It was successfully leased ahead of schedule and profitably sold to the Reading Company which owned the site and was a partner in the venture. Saddle Run -- A 365-acre executive equestrian conununity in suburban Washington, DC. Mr. Hunter acquired the site as an assemblage of farms and small parcels adjacent to the Gainesville interchange on 1-66. He planned the community for 751 homes, an office park of seven buildings totaling 1.1 million HUNTER INTERESTS ! N C 0 R P O R A T E D ] 1 J square feet of space, a community center with a lavish clubhouse and pool/tennis facilities, and a full service equestrian center on an internal system of bridal paths and jogging trails totaling more than 3.9 miles in length. Saddle Run has received national publicity in several magazines as an innovatively designed community which allows executives to live closer into the city on smaller estates or in a variety of housing types while family members can enjoy keeping their horses within the community in commonly owned facilities. Redwood TOwer -- A 24-story office building overlooking the Inner Harbor in downtown Baltimore. This 'm~n~ ovative air fiehtsdev~e~ol~men_t over a nine-st0r7~ parking garage posed several serious design and construction problems ---wlii~h-irmiSva~ve-'~'sot~,n$ ;;~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 J l 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 1 ] ] ! ] ] J 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 ] 1 J J 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 ] Time · 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: J!II. ] l ] ] ] 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 '1 --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. J J I .1 i I 1 I .J 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 _] :-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