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2008_06_24 CC PKT
City Council Packet June 24, 2008 1 Brookings City Council Tuesday, June 24, 2008 City Hall Council Chambers 311 Third Avenue 5:00 p.m. ~~ Work Session 6:00 p.m. ~~ Council Meeting Mission Statement The City of Brookings is committed to providing a high quality of life for its citizens and fostering a diverse economic base through innovative thinking, strategic planning, and proactive, fiscally responsible municipal management. 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 1. Tax Increment Finance request for Sieler Addition. 2. Validation proposals for the Swiftel Center. 3. 6:00 p.m. Meeting Review. 4. Council Invites & Obligations. 5. City Council member introduction of topics for future discussion*. *Any Council member may request discussion of any issue at a future meeting only. Items can not be added for action at this meeting. A motion and second is required starting the issue, requested outcome, and time. A majority vote is required. 6:00 P.M. REGULAR MEETING 1. Call to order. 2. Pledge of Allegiance. 3. City Clerk records council attendance. 4. Action to approve the following Consent Agenda Items: * A. Action to approve the agenda. B. Action to schedule a special City Council Meeting for July 24th with the Hospital Board. Action: Motion to approve, request public comment, roll call * Matters appearing on the Consent Agenda are expected to be non-controversial and will be acted upon by the Council at one time, without discussion, unless a member of the Council or City Manager requests an opportunity to address any given item. Items removed from the Consent Agenda will be discussed at the beginning of the formal items. Approval by the Council of the Consent Agenda items means that the recommendation of the City Manager is approved along with the terms and conditions described in the agenda supporting documentation. Presentations/Reports/Special Requests: 5. Open Forum. 6. SDSU Report. 7. Mayoral Proclamations. Ordinances – 1st Readings ** ** No vote is taken on the first reading of ordinances. The title of the ordinance is read and the date for the public hearing is announced. 8. Ordinance No. 29-08: Ordinance amending Article II of Chapter 38 of the Code of Ordinances of the City of Brookings and pertaining to Flood Damage Prevention. Public Hearing: July 8, 2008 City Council Packet June 24, 2008 2 Public Hearings & Ordinances: 9. Ordinance No. 28-08: Budget Amendment - An Ordinance Entitled “An Ordinance Authorizing A Supplemental Appropriation To The 2008 Budget For The Purpose Of Providing For Additional Funds For The Operation Of The City. Action: Motion to approve, request public comment, roll call 10. Public hearing and action on Resolution No. 47-08, Determining the Necessity of Repairing or Installing Sidewalks in the City of Brookings at the Expense of Abutting Property Owners, 2008-01SWR Sidewalk Repair Project. Action: Open and close public hearing, motion to approve, roll call Other Business. 11. Action on Resolution No. 50-08, Resolution authorizing Change Order #2 (CCO#2) for 2008-03STI Downtown Streetscape Project. Action: Motion to approve, request public comment, roll call 12. Action on Resolution No. 48-08, a resolution to annex approximately 7 acres of land into the City of Brookings (Outlot A in the NE ¼ of the NW ¼ of Section 3-T109N- R50W). Action: Motion to approve, request public comment, roll call 13. Action on Resolution No. 49-08, a resolution to annex approximately 12 acres into the city of Brookings (the west 390 feet of the east 1,040 feet of the SE ¼ of the NW ¼ of Section 1-T109N-R50W). Action: Motion to approve, request public comment, roll call 14. Adjourn. Brookings City Council Scott Munsterman, Mayor Tim Reed, Deputy Mayor Mike Bartley, Council Member Tom Bezdichek, Council Member Ryan Brunner, Council Member Mike McClemans, Council Member Julie Whaley, Council Member Council Staff: Jeffrey W. Weldon, City Manager Steven Britzman, City Attorney Shari Thornes, City Clerk View the City Council Meeting Live on the City Government Access Channel 9. Rebroadcast Schedule: Wednesday @ 1pm, Thursday @ 7 pm , Friday @ 9 pm and Saturday @ 1 pm The complete City Council agenda packet is available on the city website: www.cityofbrookings.org If you require assistance, alternative formats, and/or accessible locations consistent with the Americans with Disabilities Act, please contact Shari Thornes, City ADA Coordinator, at 692-6281 at least 3 working days prior to the meeting. City Council Packet June 24, 2008 3 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 1. Tax Increment Finance request for Sieler Addition. TO: Mayor and Council Members FROM: City Manager Jeff Weldon RE: Request for tax increment assistance for Sieler Addition Staff has received a request for a pay-as-you-go tax increment housing project for 33 lots in Sieler Addition which is located west of 7th Avenue South and will consist of street extensions of Remington Street and Cardinal Drive just north of Hunters Ridge in the south central part of Brookings. The developer is Oakwood Equity Group. This request would be identical to that which was just approved for Valley View Addition. The developer has agreed to limit the final cost of lot plus home to less than $160,000 in exchange for using future increment to offset the costs of applicable infrastructure. If approved, this would be Tax Increment District #4. The developer has submitted most of the necessary information for the initial steps of the project which would include a hearing with the Planning Commission to establish the boundaries of the proposed tax increment district. At this point, staff has not yet had time to develop a tax increment policy which would govern the use of this economic development tool. Our Financial Advisor, Toby Morris will be assisting us with that. However, I am envisioning such a policy to mirror the process we just used on the Valley View Addition project. One addition to that process would be an initial feasibility determination by the City Council to see if the Council has sufficient interest in the tax increment request to warrant the developer proceeding. From this point, the process and investment for the developer will become substantial. This early feasibility determination will serve to either assist the project or keep the developer from going through this effort only to have it ultimately denied at the end of the process. Representatives for the developer will be at the worksession to discuss the project and their request for tax increment and answer your questions. Part of your determination of feasibility should include whether or not you want to make this subsidy available for such a project in this location; and to what extent you want to use tax increment. The question of precedent does enter into the equation as well. However, each request for tax increment needs to stand on its own merits regardless of past practice. The housing plan does provide some guidance for us in documenting a need for housing in this market range. The overriding public policy consideration should be that using tax increment contributes to an overall public benefit to the community. City Council Packet June 24, 2008 5 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 2. Validation proposals for the Swiftel Center. June 18, 2008 TO: Mayor and City Council Members FROM: City Manager Jeff Weldon RE: Proposals for Swiftel Center feasibility validation study At this year’s goal-setting session, you determined it would be advisable to get a second opinion about certain aspects of the feasibility study done by VenuWorks on behalf of the Swiftel Center for its proposed expansion. By Council action, you directed me to solicit proposals from consultants that could be considered to conduct such a study. The major purpose of a validation study is to scrutinize the market analysis, assessment of need, and economic impact which is the whole justification for the project. I secured proposals from three companies that specialize in market analysis and feasibility studies for public facilities. The companies are: Entertainment and Sports Consulting (ESC) of Providence, R.I.; Convention Sports and Leisure (CSL) of Minneapolis, MN; and HVS Convention, Sports, & Entertainment Facilities Consulting of Chicago, Ill. When soliciting responses, I asked for simple, basic, straight-forward description of services and costs. ESC complied with my request and submitted only a two page list of services and associated costs which were $10,800 for the contract and $2,150 in reimbursable expenses. CSL and HVS submitted much more comprehensive proposals. The CSL cost is $60,000 for the contract and a maximum of reimbursable expenses of $6,000. HVS submitted a contract proposal for $25,000 and any reimbursable expenses they incur. In response to my description of the project to the vendors as a validation study to a feasibility study already completed, CSL did not review the VenuWorks study indicating they did not want to be biased by that report in preparing their proposal or their report. On the other hand, HVS and ESC did see the VenuWorks report so their proposal was influenced by what they saw. This leads to the conclusion that the CSL proposal would actually constitute a comprehensive re-do of the VenuWorks study and constitute a repeat of the process with another company, instead of just a validation study of key aspects. The cost analysis appears to reflect this. The fact the less costly proposals actually reviewed the VenuWorks study, and their proposals seemed to actually be geared in a response to the VenuWorks study, seems to indicate they are tailor-made for an actual validation analysis. Advantages of the CSL proposal is that they are close, being in located in Minneapolis, and they have done a significant amount of work in the upper Midwest. They are a very large company and they would be working on a relatively small project so that has it’s advantages and disadvantages. CSL also offered an alternate approach which would cut the cost of the first City Council Packet June 24, 2008 6 task from $38,000 to $25,000. The first two tasks are the most important and we could contract with just Tasks I and II and either quit the project if the data does not merit further study; or we could not do the subsequent tasks if we believe they are not needed. The point is that we do not have to contract with the full amount of $60,000. I question the need for the subsequent tasks. Likewise, the HVS proposal has a base fee of $20,000 and an optional economic impact analysis for an additional $5,000. I met with the Swiftel Advisory Board this week and they reviewed the proposals. The Board approved a motion to recommend to the City Council that we contract with ESC for the validation study for $10,800. They also asked me to get more information on the company such as references, estimated timeline, etc. I have made those inquiries and if I have this additional information by the time of the meeting, I will report it to you. You have several options: 1) Adopt the recommendation of the Advisory Board and contract with ESC. 2) Accept one of the other two proposals and contract with either of them. 3) Reject all proposals and direct staff to find other proposals. 4) Reject all proposals and conclude the study analysis with the VenuWorks report. 5) Take no action at this time and continue to study the issue or proposals. As a reminder, this subject is another one of our major goals for the year and contracting for a second opinion in the form of a validation study to the VenuWorks report is part of that overall strategy. Future steps will depend upon the outcome of this validation study. I recommend you adopt the recommendation of the Swiftel Advisory Board and contract with Entertainment and Sports Consulting, LLC unless my subsequent research turns up any considerations that would be contrary. We have not budgeted for this amount in this year’s budget but I would like to make a request for such funding to the Visitor Promotions Board at their next meeting. If it is denied, I will bring the proposal back to you and we can explore other financial options. Proposal to Conduct a Feasibility Study of anFeasibility Study of an Expanded Swiftel Center Presented to the:Presented to the: City of BrookingsCity of Brookingsygyg May 23, 2008 May 23, 2008 Conventions, Sports & Leisure International 1907 East Wayzata Boulevard, Suite 250 • Wayzata, MN 55391 • Telephone 952.476.5900 • Facsimile 952.476.0005 May 23, 2008 Mr. Jeffrey Weldon City Manager City of Brookings 311 Third Avenue PO Box 270 Brookings, SD 57006 Dear Mr. Weldon: Conventions, Sports & Leisure International (CSL) is pleased to submit our proposal to provide a Feasibility Study concerning an expanded Swiftel Center. The results of these services would assist in your evaluation of the market, programmatic, financial and economic impact implications of an expanded Center. CSL has conducted over 400 market, financial, economic and planning studies relating to new/expanded convention, arena, civic, meeting and other event facilities throughout North America, including event facility projects in Bismarck, Minot and Fargo (ND), Sioux Falls, Watertown and Deadwood (SD), St. Cloud, Bemidji and Owatonna (MN), Dubuque (IA), Havre and Helena (MT), and Appleton, Eau Claire, Green Bay and La Crosse (WI), in addition to many other small and mid-sized communities throughout the country. Given our company headquarters location in Minnesota, we have extensive experience with Midwest community projects and unique insight into event markets serving convention, civic and spectator event facilities in these communities. We believe that no other firm has the overall relevant event facility industry experience and background that we offer. Please feel free to contact me at (952) 476-5900, ext. 204, or bkrueger@cslintl.com, should you have any questions regarding this proposal or require any additional information. We would be happy to discuss with you other study alternatives to best meet any budgetary or time considerations you may have. We are enthusiastic about the prospect of assisting you with this project. Sincerely, Bill Krueger Director CSL International Proposal to Provide Consulting Services May 23, 2008 TABLE OF CONTENTS ______ Firm Background ........................................................................................... 1 Client References ........................................................................................ 17 Team Qualifications ..................................................................................... 19 Project Approach ......................................................................................... 24 Proposed Timing & Fees .............................................................................. 33 FIRM BACKGROUND Proposal to Provide Consulting Services May 23, 2008 Page 1 CONVENTIONS, SPORTS & LEISURE INTERNATIONAL 1907 East Wayzata Boulevard Suite 250 Wayzata, MN 55391 (952) 476-5900 telephone (952) 476-0005 facsimile www.cslintl.com Primary Contact: Bill Krueger, Director Telephone - (952) 476-5900 ext. 204 Email - bkrueger@cslintl.com CSL was founded in 1988 specifically to provide focused and independent research to the convention, spectator, sport and public assembly facility industries. The professional resources at CSL include over 120 years of combined industry experience and a large staff of highly trained consultants. As our focus is on the convention, spectator, sport and public assembly facility industries, we are continually researching emerging trends and conditions that impact facility management, municipalities, visitor bureaus, public facility authorities, private sector operators/franchises and other such industry participants. Over the past 20 years, members of our firm have built a reputation by assisting clients in understanding project feasibility, appropriate sizing and programming, location issues, public/private partnership opportunities, costs and benefits, funding methods, operational issues and other such characteristics. In total, members of our firm have participated in over 400 engagements throughout 35 states and six countries with respect to these types of facilities. This represents the most extensive base of experience available in the industry. Firm Services CSL International brings the experience of many previous engagements to the planning phases of your project. CSL provides comprehensive market, financial and planning services to industry clients throughout North America. These services are highlighted on the following pages. FIRM BACKGROUND Proposal to Provide Consulting Services May 23, 2008 Page 2 Market Issues Market demand forms the basis for the development of any convention, arena, civic or assembly facility project. Without a clear understanding of market potential unique to a specific market and project, all later analysis of program, financial, economic and other issues may be misdirected. Our combined experience includes over 100 years of tailoring detailed market analysis workplans to clearly identify the factors that impact market potential, and to quantify events, attendance, seasonality, selection criteria and related characteristics. Financial and Economic Impact Issues The financial issues facing the convention, arena, civic and public assembly industry have changed significantly over the past several years. Increasingly, facility management is being asked to reduce or eliminate operating subsidies. Private sector initiatives in facility development or service providing have increased. Our involvement in the industry includes continued and in-depth participation in analyzing these and other issues that impact facility financing and operations. A primary source of community interest in public assembly facilities, particularly convention, conference and trade show facilities, lies in the economic and tax benefits that can be generated. Understanding this, we have developed detailed computer analysis methods to quantify the public benefits associated with such projects. Planning CSL International brings our significant base of experience to the planning phases of your project. We have been involved in facility development from the initial feasibility stages, throughout the funding planning and structuring public/private involvement, and into the market planning for the facility, evaluating operational policies and working with management to successfully launch and manage the project. This full service planning expertise sets us apart from other consultants who are focused on a narrow segment of the planning, development and operational process. Similar Event Facility Experience CSL International is the market leader in providing convention, arena, civic and event facility studies. Our project leaders have directed studies of public assembly facilities throughout North America including the comparable projects listed on the following pages. FIRM BACKGROUND Proposal to Provide Consulting Services May 23, 2008 Page 3 Bismarck Civic Center Bismarck, North Dakota In 2008, CSL was selected to perform a feasibility study for an expansion to the Bismarck Civic Center. A variety of masterplanning documents have been developed in recent years concerning the potential expansion/improvement of the Civic Center. A primary goal of the study is to validate the need and costs/benefits associated with masterplan components. The envisioned expanded Civic Center would be better positioned to attract non-local conventions, conferences and tradeshows, as well as remaining competitive in retaining existing pieces of business. The Bismarck Civic Center currently operates as the primary event facility in the community incorporating 48,600 square feet of exhibit space, 18,900 square feet of meeting space and an 8,600-seat arena. Due to its lack of a traditional ballroom, the Civic Center has been limited in the types of conventions, conferences and meetings it has historically been able to attract. The study includes a comprehensive analysis of market demand, supportable building program, event levels, preliminary construction costs, financial operations, economic impacts and funding alternatives. Minot Community Event Facilities Minot, North Dakota In September 2006, CSL was selected to provide professional planning services to the City of Minot related to study of the use and coordination of community facilities in Minot, including a detailed market and financial feasibility study related to a proposed multipurpose event facility. As part of the feasibility study, the concept of an enclosed facility that would accommodate flat floor events, conventions, tradeshows, exhibitions and spectator events was tested as part of the market demand surveys. The community facility analysis focused on analyzing the existing primary convention, meeting, spectator and athletic event facilities and their ability to meet the current and projected needs of the community. Study results did not indicate sufficient market demand and community benefits relative to the cost for a new large indoor multipurpose venue. However, CSL outlined an opportunity to create a long-term solution for the Minot State University football program and Minot area high school football programs through the potential development of an outdoor multipurpose stadium, similar to the Bismarck Community Bowl that would address long-term needs for the associated constituents. FIRM BACKGROUND Proposal to Provide Consulting Services May 23, 2008 Page 4 Bemidji Event & Convention Center Bemidji, Minnesota In 2006, CSL was selected from a field of proposing firms to perform a market, financial and economic impact feasibility study for the proposed Bemidji Regional Event and Convention Center. The envisioned multipurpose facility is expected to fulfill a number of important roles, including the accommodation of various local and non-local events such as conferences, tradeshows, performing arts, athletics and recreation. Further, it has been proposed that the venue serve as a home to the Bemidji State University Division I Hockey program, through a ice hockey arena component and associated ice sheet (in addition to multipurpose flat floor space appropriate for conferences, meetings, tradeshows and other such events). CSL completed the initial study in 2007 and was subsequently re-engaged to provide on- going services related to building program, financial, economic impact and design issues. Further, CSL helped with negotiations regarding lease terms between the City and BSU for BSU hockey programs to be the primary tenant for the facility. Currently, CSL is assisting the City evaluate a potential transaction and partnership with a private hotel developer. The purpose of the partnership is to maximize private sector involvement and support to help defray public sector costs. Fargodome Fargo, North Dakota Recently, CSL performed a feasibility study for the Fargodome Authority and the City of Fargo pertaining to an expansion of the Fargodome in Fargo, North Dakota. Study tasks included an event market analysis, premium seating analysis and a financial and operating analysis for the expansion. Previously, in 2003, CSL was hired to conduct an economic impact analysis of the Fargodome. This study was designed to assist the Fargodome in understanding the economic impacts associated with the construction and operations of the facility over the past ten years. As part of the study, in depth historical operations analysis and extensive survey research analysis were conducted. The historical operations research included an analysis of the previous ten years of operations and event characteristics. The survey research included over 2,800 completed questionnaires of Fargodome patrons, representing nearly 6,300 event attendees. FIRM BACKGROUND Proposal to Provide Consulting Services May 23, 2008 Page 5 Sioux Event Facilities Sioux Falls, South Dakota CSL has assisted the Sioux Falls Chamber of Commerce on several occasions with their evaluation of the continuing viability of local area public assembly facilities. Initially, members of CSL performed a detailed feasibility analysis of the potential development and operation of a multi-use convention center. The study was performed to analyze the potential market demand for conventions, tradeshows, public shows, community and other related events. In addition to assessing market demand, the study identified facility needs based upon the market results and provided a financial and economic impact analysis. In 2002, CSL was retained to conduct a detailed study of the financial and economic feasibility of a new or expanded arena in Sioux Falls. Further, in 2005, CSL was retained by the Sioux Falls Events Center & Recreation Facility Task Force to assess the market and financial feasibility of a new indoor sports complex that is envisioned to include ice rinks, soccer fields, an aquatics center and various other programming spaces. St. Cloud Civic Center St. Cloud, Minnesota In 2002, CSL assisted the City of St. Cloud in performing an expansion feasibility study for the St. Cloud Civic Center. The study focused on analyzing local and non-local convention, conference, exhibition and meeting demand for the expansion and identified the appropriate level of facility development. Key components of the analysis included detailed market surveys of past, existing and potential center users, community interviews, historical utilization analysis, competitive and comparable facility analysis, industry trend analysis, building program analysis, financial operations analysis and economic impact analysis. Subsequently, in 2004 and again in 2006, the City asked CSL to update the previously conducted study to consider significant alterations to programmatic aspects of the proposed expansion plan. The work included various sensitivity analyses conducted to evaluate various scenarios of development and the resultant implications on events and economic impacts. FIRM BACKGROUND Proposal to Provide Consulting Services May 23, 2008 Page 6 Grand River Center Dubuque, Iowa CSL was retained by the Dubuque Area Chamber of Commerce to study the area’s market potential for convention, trade show and meeting events. Key components of the analysis included an evaluation of historical Five Flags Center operations, primary market research of potential events, financial operations and economic and fiscal impacts of new or expanded space. Results of the study indicated that additional convention and meeting space could be supported in Dubuque. Construction of the Grand River Center, which provides a total of 54,000 sellable square feet, was completed in 2003. The facility was developed in conjunction with the city’s America’s River Project and represents a public/private partnership with the attached hotel (which also is contracted to manage the convention center). More recently, CSL assisted the City of Dubuque with a detailed study of a market supportable re-use of the Five Flags Center. Stillwater Convention Center Stillwater, Oklahoma CSL recently completed a feasibility of a new convention center in Stillwater, Oklahoma. Stillwater is situated approximately an hour’s drive north of Oklahoma City and an hour’s drive west of Tulsa Key study components included the analysis of existing local market conditions, competitive/comparable facilities and communities, industry conditions, market potential by event segment, building program, event levels, site/location issues, preliminary construction cost estimates, financial operations, economic and fiscal impacts, funding alternatives and ownership/ management options. Further, the study process included in- person interviews with key local community and business leaders and telephone surveys of more than 75 event planners of potential events that could utilize a new facility. The study included analysis of various public/private partnership opportunities concerning project development, with private partners such as hotel developers and Oklahoma State University. FIRM BACKGROUND Proposal to Provide Consulting Services May 23, 2008 Page 7 Hammond Convention Center Hammond, Louisiana In 2005/2006, CSL was retained by the Convention Center Committee and the Tangipahoa Parish Convention and Visitors Bureau to conduct a feasibility study regarding the potential development of a convention center. Hammond is uniquely located 50 minutes north of New Orleans and one hour east of Baton Rouge, with major interstate access connecting the cities. The scope of services included in the feasibility study consists of analysis of local market conditions, competitive and comparable convention centers, regional industry characteristics and trends, market surveys of state and regional organizations, market supportable building program, site analysis, preliminary construction costs, financial operations, economic impacts and funding alternatives. Study findings suggested that insufficient market support existed for a public sector- led, stand-alone convention center. Alternate project concepts assessed included a public/private partnership with a hotel and an amateur sports complex. Jackson Convention Center Jackson, Michigan In 2007, CSL was retained by the Greater Jackson Convention and Visitors Bureau to conduct a feasibility study regarding the potential development of a convention center in Jackson, Michigan. Jackson is situated less than an hour’s drive from three metropolitan areas—Ann Arbor, Lansing and Battle Creek/Kalamazoo. Further, Jackson is located only 75 miles from Michigan’s largest market of Detroit. The scope of services included in the feasibility study consists of analysis of local market conditions, competitive and comparable convention centers, regional industry characteristics and trends, market surveys of state and regional organizations, market supportable building program, site analysis, construction costs, financial operations, economic impacts, funding alternatives and ownership/management analysis. To date, preliminary findings have been developed concerning estimated use levels and key quantifications of costs and benefits associated with two primary development options: (1) a stand-alone convention center and (2) a public/private hotel/conference center. FIRM BACKGROUND Proposal to Provide Consulting Services May 23, 2008 Page 8 Charleston Convention Center Charleston, West Virginia In 2007, CSL was selected to perform a feasibility study for a new or expanded convention center in Charleston, West Virginia. The Charleston Civic Center currently operates as the primary event facility in the community incorporating 50,000 square feet of exhibit space and a 10,000-seat arena. Due to its age and lack of a ballroom and significant amount of breakout meeting space, the Civic Center has been limited in the types of conventions, conferences and meetings it has historically been able to attract. Preliminary development options for this study could result in an expansion to the Civic Center or the development of a new stand-alone convention center that would be located elsewhere in the community. The study included a comprehensive analysis of market demand, supportable building program, event levels, site/location, construction costs, financial operations, economic impacts and funding alternatives. Lincoln Convention Center & Arena Lincoln, Nebraska In 2002/2003, CSL assisted the Lincoln Chamber of Commerce in performing a comprehensive feasibility study for a potential new convention center and arena. Given the development of new state-of-the- art convention center and arena complexes in nearby Omaha and Council Bluffs, along with limitations in existing Lincoln area facilities (such as Pershing Auditorium and the Cornhusker Conference Center), the Lincoln Chamber was interested in a timely evaluation of the need for new or expanded/improved facilities to serve the community. Specific project tasks included market demand and event analysis, building program analysis, site/location analysis, facility cost analysis, financial operations analysis, economic and fiscal impact analysis, funding alternatives analysis and the development of a community support strategy. The results of the study included potential facility and site/location recommendations, estimated costs and a range of development options, based on potential market and financial feasibility. In 2007, CSL was again retained to conduct a follow-up feasibility study related to a new Arena in Lincoln that would be shared with the University of Nebraska. FIRM BACKGROUND Proposal to Provide Consulting Services May 23, 2008 Page 9 Expanded Midland Center Midland, Texas In 2005, CSL was hired from a competitive field to perform a feasibility study for the potential expansion/renovation of the existing Midland Center into a state-of-the- industry convention center. An event center committee, comprised of representatives from a wide variety of stakeholders was organized to select a consultant and to cultivate community support and involvement. The study also included a feasibility analysis of a new performing arts center, that could either be integrated into the convention complex or developed as a stand-alone facility. Key aspects of the study included extensive community outreach and input throughout the study process, market demand analysis, surveys of potential facility users and various site, financial and economic impact analyses. The envisioned facility was expected to act as a community gathering place and an economic generator for the local area. Study results found market support for new convention center development in the community and the City is presently considering funding options. Alliant Energy Center Madison, Wisconsin In 2006, CSL was retained by Dane County, Wisconsin to conduct a market and financial feasibility study regarding the expansion of Alliant Energy Center’s Exhibition Hall and Conference Center facilities. A goal of the project was to evaluate potential facility development options that could best enhance economic impact generation in the greater Madison area. The four-phased study consisted of several tasks, including analysis of local market conditions, historical facility operations, market demand, financial and economic impacts, competitive and comparable facilities and communities, supportable building program and event potential, financial operations, economic and fiscal impacts, status quo analysis and long-range impact analysis. The results of this study included detailed interviews with more than 160 individual event planners of a wide variety of event types representing both current and potential facility users. FIRM BACKGROUND Proposal to Provide Consulting Services May 23, 2008 Page 10 Branson Convention/Exhibition Ctr. Branson, Missouri In 2001 and 2003, CSL assisted the City of Branson with two detailed studies of the feasibility of a new multipurpose convention and entertainment center. The proposed center is envisioned to be a component of a larger Branson Landing mixed-use district that is presently being developed on the downtown lakefront. The Branson community is unique with respect to its small resident population, unique entertainment products and strong history of tourism. Components of the analysis included an evaluation of primary market research of potential events, market supportable facility program, financial operations, economic and fiscal impacts of the proposed convention center and overall costs and benefits. In recent years, the incorporation of an event facility development into larger public/private revitalization projects, such as in Branson is becoming more frequently considered. The Center and the Hilton headquarters hotel (which will also operate the Center) recently opened, while other major retail/entertainment components of the project have been operational for nearly two years. Davis Conference Center Layton, Utah In late 2005, CSL was selected from a competitive field of prospective consulting teams to perform an expansion feasibility study for the Davis Conference Center in Layton, Utah. The Davis Conference Center is a state-of-the-art conference facility, adjacent to a Hilton Garden Inn headquarters hotel, which presently serves a variety of local and non-local conventions, conferences, meetings and special events. The study analyzed the feasibility of expanding the facility to incorporate traditional exhibit space, in addition to its existing supply of ballroom and breakout meeting space. Precipitating interest in the study, it was believed by some that the facility and community are missing out on a portion of state and regional convention and tradeshow business due to the lack of an appropriate space to house exhibit-related functions. Based on CSL recommendations, Davis County pursued the expansion of the Conference Center, with a grand re-opening occurring in May 2008. Just this month, CSL was again retained by the County to perform a Best Practices Analysis concerning management issues, policies/procedures and ongoing funding aspects. FIRM BACKGROUND Proposal to Provide Consulting Services May 23, 2008 Page 11 Community Recreation/Event Facilities Watertown, South Dakota In 2006, CSL was retained to perform a feasibility analysis for a potential new multipurpose recreation facility. In order to maximize the usage of the potential facility, the envisioned facility would consist of up to 30,000 gross square feet event/activity space, in addition to a variety of specialized spaces that could include aquatic and strength training components. The primary room would be expected to integrate retractable spectator seating for approximately 5,000. Previously in 2000, CSL completed a detailed market and financial feasibility study for the City of Watertown regarding the potential development of a new multipurpose conference and event facility to be located in Watertown, South Dakota. The facility opened in 2005 and has been very successful. In both studies, key analysis components included extensive local interviews, analysis of industry trends, local market conditions, analysis of competitive and comparable facilities, demographics analysis, primary market surveys and site/location analysis. Fox Cities Convention Center Appleton, Wisconsin In 2008, CSL was selected through a competitive bid process to conduct a feasibility study for a new convention center for the Fox Cities Convention and Visitors Bureau and the Fox Cities Chamber of Commerce. The Fox Cities community is comprised of 18 municipalities, including the city of Appleton, which is situated approximately a half hour drive southwest of Green Bay and two hours north of Milwaukee. As envisioned, a Fox Cities convention center would act as an economic generator and a public resource for local community residents, hosting conventions, conferences, tradeshows, public/consumer shows, meetings, spectator and other events of both a non-local and local nature. The scope of services includes the analysis of local market conditions, competitive and comparable convention centers, regional industry characteristics and trends, market surveys of state and regional organizations, market supportable building program, site analysis, preliminary construction costs, financial operations and economic impacts. FIRM BACKGROUND Proposal to Provide Consulting Services May 23, 2008 Page 12 CSL project managers, offering an unmatched breadth and depth of relevant industry experience, have performed hundreds of convention, conference, civic, sport and entertainment event facility studies, including the following: • Alliant Energy Center Madison, Wisconsin • Americas Center St. Louis, Missouri • Anaheim Convention Center Anaheim, California • Arlington Conference Center Arlington, Virginia • Arvada Events Center Arvada, Colorado • Austin Convention/Civic Center Austin, Texas • Bangor Convention Center Bangor, Maine • Bartle Hall Convention Complex Kansas City, Missouri • Bartlesville Convention/Civic Center Bartlesville, Oklahoma • Bemidji Event & Convention Center Bemidji, Minnesota • Bentonville Civic Center Bentonville, Arkansas • Bismarck Civic Center Bismarck, North Dakota • Boise Centre on the Grove Boise, Idaho • Boston Conv. & Exhibition Ctr. Boston, Massachusetts • Boulder Conference Center Boulder, Colorado • Branson Convention/Events Center Branson, Missouri • Bridgeport Arena & Event Center Bridgeport, Texas • Broward County Convention Center Fort Lauderdale, Florida • Buena Park Convention Center Buena Park, California • Burlingame Conference Center Burlingame, California • Calgary Exhibition & Stampede Calgary, Alberta • Carbon County Fairground Price, Utah • Cashman Center Las Vegas, Nevada • Chandler Convention Center Chandler, Arizona • Charleston Civic Center Charleston, West Virginia • Cincinnati Convention Center Cincinnati, Ohio • Cleveland Convention Center Cleveland, Ohio • Coconut Grove Convention Center Miami, Florida • College of St. Catherine Minneapolis, Minnesota • Colorado Convention Center Denver, Colorado FIRM BACKGROUND Proposal to Provide Consulting Services May 23, 2008 Page 13 • Commonwealth Convention Center Louisville, Kentucky • Crown Center Convention Facilities Kansas City, Missouri • Deadwood Amphitheater Deadwood, South Dakota • Des Moines Convention Ctr. & Aud. Des Moines, Iowa • Dubuque Conference Center Dubuque, Iowa • Dunn Events Center Dunn, North Carolina • Durango Conference Center Durango, Colorado • “E Center West Valley City, Utah • El Paso Arena El Paso, Texas • Ernest N. Morial Convention Center New Orleans, Louisiana • Evansville Convention Center Evansville, Indiana • Evansville Minor League Arena Evansville, Indiana • Fairfield University Fairfield, Connecticut • Fargodome Fargo, North Dakota • Five Flags Center Dubuque, Iowa • Fort Worth Convention Center Forth Worth, Texas • Fox Cities Convention Center Appleton, Wisconsin • Fresno State University Fresno, California • Gatlinburg Convention Center Gatlinburg, Tennessee • George R. Brown Convention Center Houston, Texas • Gonzaga University Centre Spokane, Washington • Gonzalez Convention Center San Antonio, Texas • Grand Wayne Center Fort Wayne, Indiana • Granbury Conference Center Granbury, Texas • Grand Junction Event Center Grand Junction, Colorado • Hammond Conference Center Hammond, Louisiana • Hartford Convention Center Hartford, Connecticut • Havre Multipurpose Event Center Havre, Montana • Hawaii Convention Center Honolulu, Hawaii • Helena Convention/Event Facilities Helena, Montana • Hendricks County Hotel/Conf. Center Hendricks County, Indiana • Hendricks County Events Center Hendricks County, Indiana • Hickory Arena Hickory, North Carolina • Hollywood Park Conference Center Hollywood Park, Texas FIRM BACKGROUND Proposal to Provide Consulting Services May 23, 2008 Page 14 • Iowa State University Ames, Iowa • Jackson Convention Center Jackson, Michigan • Jacob K. Javits Convention Center New York, New York • Joliet Convention/Arena Facilities Joliet, Illinois • Kentucky Fair and Exposition Center Louisville, Kentucky • Knight Ctr./Miami Convention Ctr. Miami, Florida • Knoxville Convention Facility Knoxville, Tennessee • La Crosse Center La Crosse, Wisconsin • Lake of the Ozarks Events Center Lake of the Ozarks, Missouri • Lane County Convention Center Eugene, Oregon • Lancaster Convention Center Lancaster, Pennsylvania • Lansing Center Lansing, Michigan • Laredo Civic Center Laredo, Texas • Las Vegas Convention Center Las Vegas, Nevada • Lincoln Conference Center Lincoln, Nebraska • Los Angeles Convention Center Los Angeles, California • Lubbock Civic Center Lubbock, Texas • Maryland Convention Facilities Baltimore, Maryland • Mayborn Civic & Convention Center Temple, Texas • McAllen Convention Facility McAllen, Texas • MECCA/Wisconsin Center Milwaukee, Wisconsin • Memorial Coliseum Portland, Oregon • Mexico City Convention Center Mexico City, Mexico • Meydenbauer Center Bellevue, Washington • Miami Beach Convention Center Miami, Florida • Midland Convention Center Midland, Texas • Minot Community Event Facilities Minot, North Dakota • Mississippi Coast Convention Center Biloxi, Mississippi • Minneapolis Convention Center Minneapolis, Minnesota • Montgomery Civic Center Montgomery, Alabama • Moorhead Conference Center Moorhead, Minnesota • Muskegon Exhibition Center Muskegon, Michigan • Muskingum County Event Center Zanesville, Ohio • Myriad Convention Center Oklahoma City, Oklahoma FIRM BACKGROUND Proposal to Provide Consulting Services May 23, 2008 Page 15 • Myrtle Beach Convention Center Myrtle Beach, South Carolina • Nashville Arena Nashville, Tennessee • Nashville Convention Center Nashville, Tennessee • New Braunfels Convention Center New Braunfels, Texas • New Iberia Hotel/Conference Center New Iberia, Louisiana • New Jersey Exhibition Center Meadowlands, New Jersey • Newark Tradeshow & Conv. Center Newark, New Jersey • Northern Kentucky Conv. Center Covington, Kentucky • Owatonna Events Center Owatonna, Minnesota • Palm Beach Convention Center West Palm Beach, Florida • Pasadena Center Pasadena, California • Pennsylvania Convention Center Philadelphia, Pennsylvania • Pensacola Convention Center Pensacola, Florida • Pier 48 Exhibition Center San Francisco, California • Pier 92/94 Tradeshow Facility New York City, New York • Pinehurst Convention Center Pinehurst, North Carolina • Portland Convention Facilities Portland, Maine • Prime Osborn Convention Center Jacksonville, Florida • Puerto Rico Convention Center San Juan, Puerto Rico • Quad Cities Conference Center Bettendorf, Iowa • Queens Convention Center New York, New York • Reading Exhibition Center Reading, Pennsylvania • Redding Convention Center Redding, California • Reno Downtown Events Center Reno, Nevada • Reno Livestock Events Center Reno, Nevada • Reno/Sparks Convention Center Reno, Nevada • Richmond Coliseum Richmond, Virginia • Roanoke Conference Center Roanoke, Virginia • Roland E. Powell Convention Center Ocean City, Maryland • Sacramento Convention Center Sacramento, California • St. Charles Convention Center St. Charles, Missouri • St. Cloud Civic Center St. Cloud, Minnesota • St. Paul RiverCentre St. Paul, Minnesota • Salt Palace Salt Lake City, Utah FIRM BACKGROUND Proposal to Provide Consulting Services May 23, 2008 Page 16 • Santa Fe Civic Center Santa Fe, New Mexico • Sarasota Convention Center Sarasota, Florida • Scranton Convention Center Scranton, Pennsylvania • Sioux Falls Convention Center Sioux Falls, South Dakota • Snowmass Conference Facilities Snowmass, Colorado • South Lake Tahoe Conv. Facility South Lake Tahoe, California • Springfield Civic Center Springfield, Massachusetts • Springfield Convention Center Springfield, Missouri • S. San Francisco Conference Center South San Francisco, California • Stillwater Convention Center Stillwater, Oklahoma • Three County Fairgrounds Northampton, Massachusetts • Temple Convention Facilities Temple, Texas • Tulsa Convention Center Tulsa, Oklahoma • Vail Conference Center Vail, Colorado • Washington D.C. Convention Center Washington, D.C. • Washington State Conv./Trade Ctr. Seattle, Washington • Waterbury Exhibition Center Waterbury, Connecticut • Watertown Multipurpose Facility Watertown, South Dakota • West Hollywood Conf. Ctr. West Hollywood, California • Wilkes-Barre Exhibition Center Wilkes-Barre, Pennsylvania • Wisconsin Center District Milwaukee, Wisconsin • Woodstock Exhibition Facility Woodstock, Illinois CLIENT REFERENCES Proposal to Provide Consulting Services May 23, 2008 Page 17 New Multipurpose Event Facility & Community Wide Event Facilities Feasibility Study (2007) Contact: Mr. David Waind City Manager City of Minot 515 2nd Avenue SW Minot, North Dakota 58701 T: (701) 857-4750 E: cmgr@web.ci.minot.nd.us Expansion Feasibility Study for the Bismarck Civic Center (2008) Contact: Mr. Charlie Jeske General Manager Bismarck Civic Center 315 South 5th Street Bismarck, North Dakota 58504 T: (701) 222-6487 E: cdjeske@nd.gov Feasibility Study and On-Going Planning Assistance for the Proposed Bemidji Arena & Convention Center (2006-2008) Contact: Mr. John Chattin City Manager City of Bemidji 317 Fourth Street NW Bemidji, Minnesota 56601 T: (218) 759-3565 E: jchattin@ci.bemidji.mn.us Davis Conference Center Expansion Feasibility Study (2006) Contact: Mr. Kent Sulser Manager Davis County Community & Economic Development Davis County Memorial Courthouse, Rm 221 28 East State Street Farmington, Utah 84025 T: (801) 451-3278 E: ksulser@co.davis.ut.us CLIENT REFERENCES Proposal to Provide Consulting Services May 23, 2008 Page 18 Proposed Tangipahoa Parish Convention Center Feasibility Study (2005-2006) Contact: Ms. Betty C. Stewart Executive Director Tangipahoa CVB 13143 Wardline Road Hammond, Louisiana 70401 T: (800) 542-7520 E: betty@tangitourism.com Proposed Stillwater Convention/Conference Center Feasibility Study (2006) Contact: Ms. Cristy Morrison Executive Director Stillwater Convention & Visitors Bureau 409 South Main Stillwater, Oklahoma 74074 T: (405) 743-3697 E: cristy@visitstillwater.org TEAM QUALIFICATIONS Proposal to Provide Consulting Services May 23, 2008 Page 19 BILL KRUEGER Director, CSL International Education: B.S.B in Marketing University of Minnesota Bill Krueger, Director of CSL’s convention and event facility practice, has experience with nearly 200 studies relating to the convention, conference, exhibition, arena, civic, sport, spectator and hospitality industries. Areas of project focus have included facility development and expansion feasibility, facility/organization performance evaluation, community economic growth strategy formulation, and facility/CVB organizational structure and policy review. Clients have included cities, counties, convention and visitors bureaus, chambers of commerce, state organizations and private entities. Bill has managed and directed studies in communities of all sizes throughout North America, many of which have involved analysis of opportunities to expand and enhance communities’ ability to generate new economic activity and visitation. Bill’s experience has included providing various types of analyses and advisory services, including: • Market demand analysis. • Facility sizing and building program analysis. • Financial operating analysis. • Economic and fiscal impact analysis. • Project funding analysis. • Site/location analysis. • Operational and management structure analysis. • Marketing strategy development analysis. • CVB performance audits/benchmarking. A summary of some of the specific projects in which Bill has been actively involved is presented on the following page. Recent Representative Projects: Minot Event Facilities Minot, North Dakota Bismarck Civic Center Bismarck, North Dakota Davis Conference Center Layton, Utah Bemidji Arena & Convention Center Bemidji, Minnesota TEAM QUALIFICATIONS Proposal to Provide Consulting Services May 23, 2008 Page 20 Bill Krueger Resume (continued) Anaheim Convention Center Hollywood Park Conference Center Owatonna Conference Center Anaheim, California Hollywood Park, Texas Owatonna, Minnesota Arlington Conference Center Jackson Convention Center Palm Beach Convention Center Arlington, Virginia Jackson, Michigan Palm Beach, Florida Bangor Convention Center Knight Center/Miami Convention Ctr. Pasadena Center Bangor, Maine Miami, Florida Pasadena, California Bartle Hall Convention Complex La Crosse Center Pensacola Convention Center Kansas City, Missouri La Crosse, Wisconsin Pensacola, Florida Bemidji Regional Event & Conv. Ctr. Lake of the Ozarks Exhibition Center Pier 48 Exhibition Center Bemidji, Minnesota Osage Beach, Missouri San Francisco, California Boise Centre on the Grove Lansing Center Pier 94 Tradeshow Center Boise, Idaho Lansing, Michigan New York, New York Boulder Convention Center Laredo Convention Center Provo Conference Center Boulder, Colorado Laredo, Texas Provo, Utah Branson Convention Center Las Vegas Convention Center Reno-Sparks Convention Center Branson, Missouri Las Vegas, Nevada Reno, Nevada Buena Park Convention Center Lincoln Convention Center Richmond Conference Center Buena Park, California Lincoln, Nebraska Richmond, Indiana Cincinnati Convention Center McAllen Convention Center Roland E. Powell Convention Center Cincinnati, Ohio McAllen, Texas Ocean City, Maryland Charleston Civic Center Mexico City Convention Center Sacramento Convention Center Charleston, West Virginia Mexico City, Mexico Sacramento, California Cleveland Convention Center Meydenbauer Center Salt Palace Convention Center Cleveland, Ohio Bellevue, Washington Salt Lake City, Utah Colorado Convention Center Miami Beach Convention Center South San Francisco Conference Center Denver, Colorado Miami Beach, Florida South San Francisco, California Cox Business Services Conv. Ctr. Minneapolis Convention Center St. Cloud Convention Center Oklahoma City, Oklahoma Minneapolis, Minnesota St. Cloud, Minnesota Crown Center Convention Center Minot Event Facilities St. Charles Convention Center Kansas City, Missouri Minot, North Dakota St. Charles, Missouri Durango Conference Center Mississippi Coast Convention Center Stillwater Convention Center Durango, Colorado Biloxi, Mississippi Stillwater, Oklahoma Ernest N. Morial Convention Center Monterey Conference Center Tulsa Convention Center New Orleans, Louisiana Monterey, California Tulsa, Oklahoma Fort Worth Convention Center Nashville Convention Center Washington DC Convention Center Fort Worth, Texas Nashville, Tennessee Washington DC Gatlinburg Convention Center New Haven Conference Center Washington State Conv./Trade Center Gatlinburg, Tennessee New Haven, Connecticut Seattle, Washington Grand Wayne Center New Iberia Conference Center West Hollywood Conference Center Fort Wayne, Indiana New Iberia, Louisiana West Hollywood, California Hammond Convention Center New Jersey Exhibition Center Wilkes-Barre Exhibition Center Hammond, Louisiana East Rutherford, New Jersey Wilkes-Barre, Pennsylvania Hendricks County Conference Center Northern Kentucky Convention Center Willets Point Convention Center Hendricks County, Indiana Covington, Kentucky Queens, New York TEAM QUALIFICATIONS Proposal to Provide Consulting Services May 23, 2008 Page 21 JOHN KAATZ Project Advisor, CSL International Education: B.S. in Economics University of Minnesota Mr. Kaatz’s experience includes in-depth analyses for hundreds of entertainment, leisure and other event facility projects. The results of these studies have been used to assist public and private sector entities in determining project market and financial feasibility, economic impacts, appropriate marketing focus and management structure, and in pursuing and securing project financing. As the pressure to maximize facility operating revenues has increased throughout the industry, John has also assisted facility management in identifying and quantifying potential sources of revenue enhancement. Prior to joining CSL, John was the Director of Coopers and Lybrand’s Sports, Entertainment and Leisure Consulting Group. John has been asked to speak at various industry forums and seminars related to the market analysis and the fiscal and economic impacts associated with the convention and public assembly industry. He has also testified before local and statewide public bodies related to public sector implications of convention center development and expansion projects. John has led studies within the industry focusing on a variety of areas, including: • Facility programming analysis. • Financial operating analysis. • Evaluating market plans. • Corporate participation for projects. • Site analysis. • Economic and fiscal impacts. • Management structure analysis. • Business plan development. Recent Representative Projects: Fargodome Fargo, North Dakota Ernest N. Morial Convention Center New Orleans, Louisiana S. San Francisco Conference Center South San Francisco, California Washington D.C. Convention Center Washington, D.C. TEAM QUALIFICATIONS Proposal to Provide Consulting Services May 23, 2008 Page 22 John Kaatz Resume (continued) Convention Centers Convention Centers Sports Facility Projects Americas Center Miami Beach Convention Center Alltel Stadium St. Louis, Missouri Miami Beach, Florida Jacksonville, Florida Anaheim Convention Center Minneapolis Convention Center Ballpark at Arlington Anaheim, California Minneapolis, Minnesota Arlington, Texas Arlington Convention Center Mississippi Coast Convention Center Boston Sports Facilities Arlington, Virginia Biloxi, Mississippi Boston, Massachusetts Bartle Hall Convention Complex Montgomery Civic Center Charlotte Coliseum Kansas City, Missouri Montgomery, Alabama Charlotte, North Carolina Boston Convention Facilities Monterey Conference Center Civic Arena Boston, Massachusetts Monterey, California Pittsburgh, Pennsylvania Boulder Convention Center Myriad Convention Center Connecticut Stadium Boulder, Colorado Oklahoma City, Oklahoma Hartford, Connecticut Cincinnati Convention Center Myrtle Beach Convention Center Delta Center Cincinnati, Ohio Myrtle Beach, South Carolina Salt Lake City, Utah Cleveland Convention Center Nashville Convention Center Foxboro Stadium Cleveland, Ohio Nashville, Tennessee Boston, Massachusetts Colorado Convention Center Newark Convention Center Jacobs Field Denver, Colorado Newark, New Jersey Cleveland, Ohio Ernest N. Morial Convention Center Northern Kentucky Convention Center Madison Square Garden New Orleans, Louisiana Covington, Kentucky New York, New York Fort Worth Convention Center Pasadena Center Marine Midland Arena Fort Worth, Texas Pasadena, California Buffalo, New York George R. Brown Convention Center Pennsylvania Convention Center Mississippi Coast Coliseum Houston, Texas Philadelphia, Pennsylvania Biloxi, Mississippi Grand Junction Convention Center Pensacola Convention Center New Chicago Stadium Grand Junction, Colorado Pensacola, Florida Chicago, Illinois Grand Wayne Center Puerto Rico Convention Center New Houston Arena Fort Wayne, Indiana San Juan, Puerto Rico Houston, Texas Hartford Convention Center Reno-Sparks Convention Center New Los Angeles Stadium Hartford, Connecticut Reno, Nevada Los Angeles, California Hawaii Convention Center Roanoke Conference Center New Philadelphia Arena Honolulu, Hawaii Roanoke, Virginia Philadelphia, Pennsylvania Jacob K. Javits Convention Center Sacramento Convention Center New RFK Stadium New York, New York Sacramento, California Washington, DC Knoxville Convention Center Salt Palace New Seattle Stadium Knoxville, Tennessee Salt Lake, Utah Seattle, Washington Las Vegas Convention Center South San Francisco Conf. Center New Tampa Arena Las Vegas, Nevada South San Francisco, California Tampa, Florida Los Angeles Convention Center St. Charles Convention Center New Yankee Stadium Los Angeles, California St. Charles, Missouri New York, New York Maryland Convention Facilities Vail Conference Center Raleigh NHL Arena Baltimore, Maryland Vail, Colorado Raleigh, North Carolina Mexico City Convention Center Washington DC Convention Center Rich Stadium Mexico City, Mexico Washington DC Buffalo, New York Meydenbauer Center West Palm Beach Convention Center Tampa Stadium Bellevue, Washington Palm Beach, Florida Tampa, Florida PROFESSIONAL RESUMES Proposal to Provide Consulting Services May 23, 2008 Page 23 JESSICA WILLIAMS Project Analyst, CSL International Education: B.S. in Marketing University of Minnesota Ms. Williams’ experience in market demand analysis, facility sizing analysis, competitive and comparable facility analysis, economic impact analysis, financial analysis, facility operations analysis and project funding analysis has contributed to many in-depth analyses for assembly facility projects. The results of these studies have served as a vital reference tool for many public and private entities decisions regarding major event center planning and funding. Jessica received a Bachelor of Science in Business degree with an emphasis in Marketing and Supply Chain Management from the Carlson School of Management at the University of Minnesota. Ms. Williams has recently completed projects in the following communities: y Bemidji Convention/Arena Facilities, Bemidji, MN y Carbon County Convention Center, Price, UT y Charleston Civic Center, Charleston, WV y Davis Conference Center, Layton, UT y Javits Convention Center, New York, NY y Madisonville Event Facilities, Hopkins County, KY y Midland Convention Center, Midland, TX y Minot Event Facilities, Minot, ND y Pinehurst Conf./Athletic Complex, Pinehurst, NC y Potential Conf./Conv. Center, Stillwater, OK y Potential Conf./Conv. Center, Hammond, LA y Potential Conference Center, Hollywood Park, TX y Potential Conference Center, Homer, AK y Potential Conference Center, New Braunfels, TX y Potential Conference Center, Provo, UT y Potential Event/Rec. Facility, Osage Beach, MO y Potential Expo Center, Reading, PA y Potential New Amphitheater, Deadwood, SD y St. Cloud Civic Center, St. Cloud, MN y St. Paul Convention/Hospitality Industry, St. Paul, MN y Tulsa Convention/Hotel Facilities, Tulsa, OK Recent Representative Projects: Minot Community Facilities Minot, North Dakota Bemidji Arena & Convention Center Bemidji, Minnesota Davis Conference Center Layton, Utah Proposed Provo Conference Center Provo, Utah PROJECT APPROACH Proposal to Provide Consulting Services May 23, 2008 Page 24 It is our understanding that the City of Brookings (“City”) is considering retaining the services of a qualified consulting firm to provide a feasibility study regarding a potential expansion of the Swiftel Center (“Center”). Within this section, we have developed a potential scope of services for such a study that will evaluate market demand, programmatic elements, financial operating implications, economic impact issues and funding alternatives. This is a study process we have implemented for similar projects very successfully throughout the country. We would be happy to discuss with you variations of a study approach that would meet your objectives. This study process consists of a comprehensive analysis of project feasibility, including a significant amount of primary market research and analysis to provide the most accurate assessment of market demand and various costs and benefits associated with the potential expansion and facility investment under consideration. The proposed study tasks are as follows: Task I: Market Demand Analysis Task II: Building Program & Event Levels Analysis Task III: Preliminary Construction Cost Analysis Task IV: Financial Operations Analysis Task V: Economic Impact & Cost/Benefit Analysis Task VI: Funding Alternatives Analysis As an initial step in the engagement, we will work with you and other project representatives to establish the specific project goals and time frame. An initial planning meeting will take place to collect pertinent project data and to identify the local organizations, officials and others that we will need to meet with at the outset of the study. Task I: Market Demand Analysis The purpose of this task is to perform various research and analyses to comprehensively evaluate market demand regarding the Brookings market and the Swiftel Center. We will identify and evaluate the potential event markets for the existing Center and a potential expanded Center. The specific steps to be conducted as part of this task are summarized below and on the following pages. Step 1. Analysis of Existing Center We will analyze the existing/historical physical and operational characteristics of the present Swiftel Center. This analysis will help form the basis for analysis of future demand levels and estimates of the incremental level/mix of business that an expanded Center could generate. This analysis will also include one or more site visits and detailed interviews with Center management and staff. As the information is available, the collection and review of data will include, but will not be limited to: • Information provided by the City of Brookings, Swiftel Center and other project leaders. • Center physical components, configuration, functionality, amenities and related issues. PROJECT APPROACH Proposal to Provide Consulting Services May 23, 2008 Page 25 • Event characteristics: o Number of events by type o Utilization days (move-in, event, move-out) o Space used, by area o Attendance o Origin of attendees o Length of stay o Historical growth characteristics o Square footage and daily occupancy by type of space o Event seasonality • Booking reports (tentative, definite, licensed events by year). • Rental and service rates. • Operational policy, procedure and reporting structures. • Operating revenues. • Operating expenses. • Capital improvements and long-term facility planning data. The results of this step will provide an assessment of the capacity, performance and limitations of the existing Center and, importantly, benchmark data for subsequent steps and tasks. We will also review the existing Center’s program and preliminarily identify programmatic and functional deficiencies relative to state-of-the-industry multipurpose event facilities. Step 2: Local Market Conditions Analysis In order to understand the local environment and “framework” in which the Center presently operates, the purpose of this step is to define and evaluate the local visitor industry characteristics within the Brookings area, including an evaluation of critical visitor amenities that can work to “shape” the level of incremental activity that may be possible to attract through an expansion (i.e., hotels, accessibility, restaurants, retail, attractions, etc.). The primary components of a successful convention/destination package will be evaluated in order to assess the area’s ability to support added convention, tradeshow, conference, meeting and other event activity. Characteristics to be evaluated as part of this overall analysis step include: • Location/size of committable, convention-quality hotel properties/rooms. • Existing/planned event and hotel facilities in the local area. • Hotel cost structures. PROJECT APPROACH Proposal to Provide Consulting Services May 23, 2008 Page 26 • Proximity to other major metropolitan markets. • Air, rail, ground transportation and shuttle access. • Entertainment offerings and attractions. • Location and level of other visitor amenities, such as restaurants, retail offerings and other such items. • Key community resources and other such characteristics. As the information is available, we will also collect and review data associated with other existing area event facilities, with a focus on facility capacity, expansion/new development plans, event levels, attendance, space use, seasonality and related performance measures. The results of this step will be used in combination with data prepared throughout the study to assess Brookings’ competitive position within the state, regional and national marketplace and its ability to accommodate additional event demand. By understanding the type of business currently accommodated within the community, we can focus our recommendations on a facility development scenario that could add to the overall level of events, attendees and economic impact. Step 3: Industry Characteristics and Trends Analysis The convention, spectator and entertainment event industries have undergone significant change over the past decade. Issues impacting the industry, including increased demand for space, technological amenities, hotel availability, service levels and other such characteristics, have been joined by recent events such as economic slowdowns and recoveries. In addition, supply growth has impacted demand levels in individual markets. The purpose of this step is to evaluate recent trends in the industry that may impact Center expansion and event levels in Brookings. Throughout this step we will evaluate these and related trends, summarizing the potential impact on the proposed expanded Center. An evaluation of these trends will be important in “framing” and placing overall market demand estimates into the context of the industry, presently and into the foreseeable future. Step 4. Comparable and Competitive Facility Analysis In evaluating the market demand for an expanded Center, it is important to gain an understanding of the competitive and comparable facility environment. Within this step, we will assemble and review the operational and physical characteristics of existing and planned facilities in the region that could compete with the proposed project. Projects around the country that may be offer some element of comparable insight will also be evaluated. For comparable projects, we will focus on identifying and analyzing facilities in markets similar to Brookings. PROJECT APPROACH Proposal to Provide Consulting Services May 23, 2008 Page 27 The types of data that will be assembled for comparable and competitive projects include the following. • facility type and marketing focus; • exhibit, meeting, ballroom space and capacities; • fixed and temporary seating components; • future expansion plans; • layout, staging and design features; • event characteristics (levels, attendance, utilization, future bookings, etc.); • ancillary services and amenities; • operating revenues and expenses; • rental terms; • available parking; • area demographics; • hotel availability, quality and proximity to the facility; • visitor industry tax rates (i.e., hotel/motel tax); • destination marketing organization (i.e., CVB) marketing resources; • location characteristics and transportation access; and • other such characteristics. In addition, as a part of this analysis, a number of case studies will be developed concerning comparable facilities in similar communities to Brookings which will address the respective facilities’ level of use, rates, funding, size and operating expense, as well as other key facility/market information. This analysis will assist in providing data as to how an expanded Center could compete within specific event markets, as well as later assisting in the evaluation of the associated market supportable program components, financial operating implications, and economic/fiscal impacts of an expanded Center. Step 5. Market Surveys The purpose of this step is to develop primary industry market research specific to Brookings. In-person one-on-one interviews and/or focus groups with key local individuals and business leaders will be conducted in Brookings near the outset of the study to gain an understanding of the local market’s attitudes with regard to the market potential for an expansion of the Center. These interviews could include individuals such as representatives/officials of the Center, City, Brookings Area CVB & Chamber, County, academic institutions, hoteliers/resorts, event facility managers, restaurateurs, business leaders, and other civic and visitor industry representatives. For most studies, these interviews/meetings are conducted over a three-day period in the local community at the outset of the study. PROJECT APPROACH Proposal to Provide Consulting Services May 23, 2008 Page 28 Beyond these local interviews, we will interview via telephone a sample of past, existing and potential users of an expanded Center, both locally and from a state, regional and potentially national basis. For most studies, we normally target completing 100 or more individual telephone interviews. Such interviews are an important component of our study approach, allowing us to go beyond simply relying on competitive and comparable facility data. We will work with you to ensure that past, existing and lost pieces of business are appropriately included in the survey process, in addition to a comprehensive sample of potential users. The analysis may include organizations or individuals from the following event segments: • local, state, regional (and possibly national) association conventions; • corporate events and tradeshows; • public/consumer shows; • SMERF events (social, military, education, religious, fraternal); • community banquets, meetings, festivals and related events; • local civic, service, religious and nonprofit organizations; • sporting events; • spectator and other entertainment events (local, regional and national touring); • cultural events; and • other such events. Event organizer survey results will be analyzed to provide summaries of the following data specific to added facilities: • likelihood of utilizing a potential expanded Center; • reasons for not choosing the Brookings area; • space/seating levels required to attract the event; • overall hotel room requirements; • parking requirements; • other important community requirements to attract the event; • event seasonality; • length of event data; • event attendance data; • past facility use; • requirement/preference for technology-related amenities; • issues with respect to the proximity of nearby airports; • perceptions of the Swiftel Center and Brookings area; and • other related event information and relevant opinions. PROJECT APPROACH Proposal to Provide Consulting Services May 23, 2008 Page 29 By combining the results of this step with the analysis results generated in previous steps, we will be able to identify the event markets that represent the primary sources of demand for an expanded Center, upon which future facility recommendations and event estimates are made. Task II: Building Program and Event Levels Analysis The purpose of this task is to synthesize findings of the previous task to analyze and translate market demand into a market supportable facility program and to estimate event levels and characteristics for an expanded Swiftel Center. Importantly, the conduct of this task and subsequent tasks is dependent on the conclusion that sufficient market demand exists to support the proposed project. Should insufficient market demand be indicated, you would have the option to terminate the study and we would bill you for services rendered to date. The key steps comprising this task are outlined below. Step 1. Market Supportable Facility Program Analysis Within this step, we will prepare an analysis of the market supportable building program for an expanded Center, based on market demand and related data developed as part of the market analysis determined through the previous task. The analysis will focus on: • exhibit, meeting and ballroom space; • fixed and temporary seating levels; • size of support space and other functional areas; • amount and type of other revenue-producing areas; • space configuration and aesthetic features; • infrastructure needs; • possibilities for future expansion; and • important technological and other amenities. This data will also be used to identify any external factors that could significantly affect the ability of an expanded Center to maximize its potential. We will discuss opportunities and constraints concerning these characteristics and issues. Factors to be identified include: • availability of quality, committable hotel rooms; • parking needs; • transportation infrastructure/accessibility; PROJECT APPROACH Proposal to Provide Consulting Services May 23, 2008 Page 30 • event attendee transportation within the area; and • other such characteristics. The results of this step will provide you and other project representatives with a clear understanding of the type of expansion that should be considered (if any). Step 2. Event Levels Analysis Based on the results of the market demand and building program analyses, we will quantify the level and characteristics of events and activities that could be attracted to and retained at an expanded Center, through the initial years following expansion and during a stabilized year of operations. The market potential will be presented for those sources of demand that are identified as being supportable in the Brookings area. We will outline the events and their associated characteristics that are estimated to represent incremental activity generated via the expansion. The measures of event demand to be focused on will include: • event levels by event segment; • potential attendance levels by activity or use; • origin of attendees/exhibitors (i.e., local vs. non-local); • length of event data; • facility space and functionality requirements (exhibit, meeting, banquet, seating, staging, technology, etc.) by event type; • hotel requirements; • parking requirements and seasonality data. Task III. Preliminary Construction Cost Analysis Based on the program information, unique site features, local cost characteristics and other relevant features, we will provide preliminary cost estimates for the recommended facility and/or facility development scenarios. The cost estimates will focus on per-unit data adjusted for conditions in the Brookings area and cost data of comparable facilities modified for time and locations. The estimates will focus on the building programs and configurations associated with each of the outlined development scenarios. These cost estimates will be useful for framing an overall discussion on project cost if the project gathers support for an implementation phase. Task IV. Financial Operations Analysis The purpose of this task is to analyze and understand the impacts that the expansion would have on the financial operating results of the Center. Based on the results of the market demand, event levels and market supportable building program research and analysis, we will prepare a financial operating analysis for the potential expanded Center. Specifically, we will develop a computer-based model incorporating comparable facility data and the estimated levels of event PROJECT APPROACH Proposal to Provide Consulting Services May 23, 2008 Page 31 utilization and attendance derived from the market analysis in order to develop estimates with regard to facility operating revenues and expenses. Revenues including rental, food service, event service, parking, advertising and sponsorship revenues, and other such sources will be estimated. Expenses including salaries (permanent and event driven staff costs), utilities, maintenance, supplies, insurance, contract service costs and others will be estimated. Further, we will work with you to develop other non-operating revenue and expense assumptions in order to provide initial estimations of overall costs associated with the project. As part of this analysis, we will develop a staffing structure that would be appropriate for the expanded Center. We will present estimates of financial performance for the expanded or renovated Center’s operations for a stabilized year of operations, as well as for an initial start-up period. If desired, we could analyze two or three different expansion scenarios, varying by square footage, mix of space, etc. Task V. Economic Impact & Cost/Benefit Analysis In this task, we will estimate the economic and fiscal (tax) impacts associated with the operation of the proposed expanded or renovated Center. The difference between the non-local attendees/exhibitors brought into the community by the existing Center and any expansion or renovation to the Center, represents the basis for added local economic and fiscal impacts. As part of this analysis, we will develop estimates of total incremental out-of-town attendees/exhibitors to the Brookings area generated as a result of a potential expanded or renovated Center. We will then apply appropriate per-attendee/exhibitor spending estimates using industry data adjusted to the local area. The resulting attendee/exhibitor spending levels will be segmented by industry and applied to economic impact multipliers. The multipliers, specific to Brookings and provided by leading input/output multiplier models, will be used to estimate total economic output, earnings and employment generated as a result of a potential expanded or renovated Center. From these economic impact variables, we will apply appropriate local, regional and statewide tax rates to estimate the added tax revenue generated as a result of the project. Following the completion of this analysis, we will be able to provide a summary of overall costs and benefits of one or more Center expansion scenarios. Once estimations of economic impacts have been developed, we will prepare a summary of cost/benefit scenarios, which will include a concise presentation of upfront and annual public and private sector cost considerations and community wide benefits. Task VI. Funding Alternatives Analysis The development of public assembly facilities throughout the country typically involves a significant level of public funding. Many communities are willing to provide for such funding given the potential economic and fiscal impacts of the project. As part of this analysis, we will identify and summarize financing sources and the extent to which facility development may require funding from external sources to fund project operations and PROJECT APPROACH Proposal to Provide Consulting Services May 23, 2008 Page 32 debt service. The analysis will focus on both financing mechanisms (type of bonds or certificates) and the project revenue sources (hotel, sales, restaurant, car rental and other such taxes) that could be used to fund potential facility development and ongoing operations. Typically, funding for public assembly facilities is tied to the industries that benefit from facility operations. This analysis will focus on numerous sources of revenue for project funding including taxes on hotel, car rental, food and beverage sales, mixed drinks, taxicabs and other such industries. Order-of-magnitude estimates of revenue potential from each viable revenue source will be prepared and potential funding sources will be prioritized. Importantly, potential partnering and funding options as used by similar communities will be identified and analyzed, including the feasibility of developing the potential space as a joint venture with an existing or future hotel or with another business or civic facility. In the past several years, our project team has been involved with many similar projects around the country that have incorporated creative partnerships with the private sector to assist in defraying facility development costs. Some additional potential private sector funding possibilities for the potential facility development that will be identified and analyzed will include sponsorships, naming rights, franchising, branding, upfront service provider fees and facility component build-outs. Alternate Study Option If a more limited and less expensive study effort is desired, we could perform a similar study that would rely on limited primary market research (i.e., no surveys/interviews with past, existing or potential future users). This would effectively consist of removing Task 1, Step 5 (Market Surveys) from the scope of services. The assessment of market demand would rely heavily on comparable facility data, assessment of local market conditions and the competitive facility environment and past experience with similar projects. Subsequent analysis components will rely on market demand assumptions, and our report vernacular will indicate as such. If this study approach is pursued, it will be important to recognize the limitations of a study that primarily relies on market demand “assumptions” rather than conclusions derived from a comprehensive survey of past, existing and potential Swiftel Center customers. Additionally, to assist in minimizing costs, the study report will be prepared in a summary format. PROPOSED TIMING & FEES Proposal to Provide Consulting Services May 23, 2008 Page 33 Proposed Project Timing We are prepared to commence this engagement upon receipt of notice to proceed. We would be able to complete the scope of services proposed herein within approximately 16 weeks. Our final project schedule is dependent on the availability of key staff for interviews and discussions, and the timely receipt of requested materials. The following exhibit presents the anticipated timeline for the study and its primary tasks. week12345678910111213141516 Kickoff Meeting A Task 1: Market Demand Analysis Task 2: Building Program & Event Levels Analysis Task 3: Preliminary Construction Costs Task 4: Financial Operations Analysis Task 5: Economic Impact & Cost/Benefit Analysis Task 6: Funding Alternatives Analysis Meeting / Presentation of Results A Final Report Submission B A = meetings between CSL and City representatives B = CSL deliverables Anticipated Project Timing In addition, regular progress updates will be forwarded to you in-person or via conference call during the study period. Furthermore, we anticipate completing this study in full, performing all work as set forth in this proposal. In the event that a decision not to proceed occurs within the time frame finally agreed upon for this engagement, we will cease our work, and bill you for time incurred on the project at that point in time. PROPOSED TIMING & FEES Proposal to Provide Consulting Services May 23, 2008 Page 34 Proposed Project Fees Total professional fees for this engagement will depend on the number of hours required to complete the project and skill levels of the assigned personnel. The table below presents the anticipated professional fees for each task associated with the scope of services in this proposal. If you wish to refine the scope of services presented herein, the fee estimates presented below would be modified. Task I: Market Demand Analysis $38,000 Task II: Building Program & Event Levels Analysis 5,000 Task III: Preliminary Construction Costs 3,000 Task IV: Financial Operations Analysis 5,000 Task V: Economic Impact & Cost/Benefit Analysis 5,000 Task VI: Funding Alternatives Analysis 4,000 Total Study Fees $60,000 As shown, the total professional fees for the study will not exceed $60,000. Out-of-pocket expenses including travel costs, postage, telephone, report preparation and reproduction will be billed separately and will not exceed $6,000 (unless expressly authorized by you). Fees and expenses assume three in-person visits to Brookings during the course of the study. Fees and expenses will be billed and are payable on a monthly basis. If insufficient market demand is identified following the completion of Task I and you elect to terminate the study, professional fees will only total $38,000. Should additional work be required beyond the scope of services detailed herein, professional fees will be billed on an hourly rate basis. Total professional fees for additional services will depend on the number of hours required to complete the services and skill levels of the assigned personnel. Alternate Study Approach As previously discussed, a more limited study effort could be pursued that would exclude a comprehensive survey of past, existing and potential Swiftel Center users. As this survey process normally provides a critical foundation for conclusions pertaining to market demand for feasibility studies of this nature, we would instead rely on assumptions developed concerning market demand. As such, under this study approach, professional fees associated with Task I (Market Demand Analysis) would be reduced to $25,000. This would reduce the overall study cost (assuming all six tasks are pursued) to $47,000 in professional fees plus out-of-pocket expenses. We would be happy to further discuss with you other study alternatives to best meet any budgetary or time considerations you may have. June 3, 2008 Mr. Jeff Weldon City of Brookings 311 Third Avenue Brookings, SD 57006 Phone: 605-692-6281 Email: jweldon@cityofbrookings.org Re: Validation Study – Swiftel Center Expansion Dear Mr. Weldon, Pursuant to your request, the Chicago office of HVS is pleased to present this proposal for our services pertaining to a Validation Study of the expansion of the Swift Center in Brookings, South Dakota. The attached proposal sets forth in further detail our firm’s background and qualifications. It describes the objectives and proposed scope of this assignment, and explains the methodology to be employed. It also provides an estimate of the time requirements and the amount of professional fees required for this engagement. We are excited about this important project and we hope to have the opportunity to serve you. Sincerely, Thomas Hazinski Managing Director HVS Global Hospitality Services 205 West Randolph, Suite 1650 Chicago, Illinois 60606 Phone (312) 587-9900 Fax (312) 587-9908 Email: thazinski@hvs.com www.hvs.com New York San Francisco Boulder Denver Boston Miami Dallas Chicago Washington, DC Newport, RI Atlanta Mexico City Vancouver Toronto London Madrid Athens New Delhi Singapore Hong Kong São Paulo Buenos Aires Shanghai CONFIRMATION Client: Mr. Jeff Weldon, City of Brookings Date: June 3, 2008 Your signature beneath the words “Agreed to and Accepted” signifies your agreement to employ HVS for the services described in the accompanying proposal titled “Proposal for a Validation Study”. A summary of the proposal’s salient data is as follows: Type of Assignment: Validation Study Project Name: Swiftel Center Expansion Options Site Location: Brookings, South Dakota Total Timing: approximately six weeks Total Fee: $20,000, plus expenses Number of Final Copies: Electronic; three hard copies upon request Retainer: 50% of the fees for the authorized phases ($10,000) Additional Services (Optional) Economic Impact Analysis ($5,000), as authorized In order to schedule our assignments and perform your study in accordance with the timing set forth above, we ask that you return an executed copy of this agreement as authorization to proceed with the proposed scope of work. This proposal will remain effective for 30 days from of the date at the top of this page. Payment must be made in U.S. dollars, using either a check drawn on a U.S. bank or a wire transfer of funds to the account of North Star Research Corp. (a division of HVS). In the event that after completing the fieldwork phase of this assignment it becomes necessary to alter the parameters of the study, such as the property description, financial, management or ownership structure, or any other factor which could change the final projections, HVS will be entitled to charge an additional fee based on our current per diem rates and the time required to incorporate the necessary changes into our analysis and reports. In addition, the estimate of timing will be extended by an amount equal to the added work. Notwithstanding the fee payment schedule set forth above, if, at any time while performing this assignment, it becomes necessary to suspend work for a period of 30 days or more, then HVS will be entitled to bill for the portion of the assignment completed up to the suspension (less any retainer paid) at its current per diem rates. It is agreed that the liability of HVS, its employees and anyone else associated with this assignment is limited to the amount of the fee paid as liquidated damages. You acknowledge that any opinions, recommendations, and conclusions expressed during this assignment will be rendered by the staff of HVS acting solely as employees and not as individuals. Any responsibility of HVS is limited to the client, and use of our product by third parties shall be solely at the risk of the client and/or third parties. The study described in this proposal will be made subject to certain assumptions and limiting conditions. A copy of our normal assumptions and limiting conditions will be provided upon request. Managing Director North Star Research Corp., a division of HVS Global Hospitality Services AGREED TO AND ACCEPTED: Mr. Jeff Weldon, City of Brookings By: _____________________________________ Date: ___________________________________ 205 West Randolph, Suite 1650 Chicago, IL 60606 ¡ Phone 312-587-9900 ¡ Fax 312-587-9908 Page 3 of 17 Proposal to Perform a Validation Study Pursuant to your request, we are pleased to present the following proposal to perform a Validation Study of the expansion options for the Swift Center in Brookings, South Dakota. Our submittal is organized in the following sections. 1. Firm and Staff 2. Scope of Work 3. Schedule and Fees 4. Firm Materials Page 4 of 17 1. Firm and Staff Since 1980, HVS Global Hospitality Services (HVS), the leading global hospitality consulting organization, has performed more than 35,000 assignments throughout the world for nearly every major industry participant. Our professional staff of more than 350 industry specialists offers a wide range of services, including market and financial feasibility studies, valuations, strategic analyses, tax analysis, development planning, and litigation support. With 27 offices in 10 countries, we offer one of the most comprehensive knowledge bases in the industry. Last year alone, HVS completed more than 2,000 feasibility studies and consulting engagements. We operate independently as consultants and have no ownership interest in any venues. The Chicago Office of HVS, incorporated in Illinois, will provide the services to the City of Brookings. HVS Chicago has completed over 350 assignments throughout the world analyzing the feasibility of community involvement in meeting facilities, event and civic centers, hotels, mixed-use hospitality developments, sports facilities, tourism attractions, and other development initiatives. Our clients include public facility authorities and municipalities, economic development agencies, educational institutions, planning departments, municipal finance departments, convention and tourism agencies, developers, non-profit organizations, and non-governmental entities involved in publicly-supported development projects. HVS has been highly successful in helping clients to achieve their facility development goals. We have performed numerous market, feasibility and economic impact studies of publicly developed projects. Our studies often appear in municipal bond offering statements and our staff has presented these studies to rating agencies, bond insurers, and investors. As a global hospitality consulting firm, HVS has many resources at its disposal that our competitors lack. HVS has been providing consulting services for 28 years and our division has been a part of HVS since January 2001. Services our firm regularly provides include: Market and financial feasibility studies Surveys Demand projections Facility recommendations Site analysis Financing recommendations Page 5 of 17 Economic and fiscal impact analysis Management and marketing recommendations Tax revenue projections Development assistance (including drafting of developer RFP/Q, evaluation, and negotiation assistance) HVS Convention, Sports & Entertainment Facilities Consulting has never failed to complete any work awarded to it. Staff The following principals will be actively involved with this project. Thomas Hazinski Thomas A. Hazinski, Managing Director of HVS - Chicago has over 20 years of experience in the public policy arena, as a public official and as a consultant. He specializes in providing economic and financial research to public agencies and private developers involved in economic development initiatives. For the past ten years Tom has specialized in the analysis of convention, sports and entertainment markets and the associated real estate developments. In January 2001, he started the Chicago office of HVS as its Managing Director. Tom holds a Masters Degree in Public Policy from the Harris School of Public Policy at the University of Chicago, where he specialized in municipal finance. He completed four years in the post-graduate degree program, including doctoral course-work, before leaving to pursue active management. Tom has managed over 200 assignments related to the analysis of public assembly facilities; including Raleigh Convention Center, Chicago's McCormick Place, the Arlington (TX) Convention Center, the Renaissance Schaumburg Hotel and Convention Center, the Overland Park Convention Center, and many other large and small venues throughout the world. Tom would serve as project manager. Hans Detlefsen Hans Detlefsen, Director of HVS - Chicago, consults for public and private clients seeking to evaluate the feasibility of building or expanding meeting and event centers. Hans served as Editor in Chief of the Chicago Policy Review while earning his Masters Degree in Public Policy from the University of Chicago. His government service includes two years as Special Assistant to the Lt. Governor of Indiana. He also has consulting experience with Economics Research Associates Page 6 of 17 and Ernst & Young. As Director of HVS Convention, Sports & Entertainment Facilities Consulting, Hans has led the firm’s work on convention, event, sports, and theater-oriented entertainment projects across North America. Hans has recently completed multi-purpose event facility studies in: Durango, Colorado; Albuquerque, New Mexico; Arlington, Texas; Branson, Missouri; Davenport, Iowa; Edmonton, Alberta; New York, New York; Oakland, California; San Antonio, Texas; Santa Fe, New Mexico; Schaumburg, Illinois; and South Lake Tahoe, California. Hans would serve as feasibility consultant. Cristina Vetter Cristina Vetter, Associate at HVS - Chicago, provides research support for senior HVS staff and performs market analysis and feasibility studies. Nina earned her Bachelor of Business Administration, with a concentration in Economics and Public Policy, from George Washington University. Nina recently provided research and analysis for a convention center mixed-use development in Singapore, an exposition and event center in suburban Detroit, convention center and performing arts facilities in Manchester, New Hampshire, and a convention center in suburban Pittsburgh. Nina would serve as analyst. Jared Muenks Jared Muenks Associate at HVS - Chicago performs hotel market and feasibility analysis, as well as provides research support for senior HVS staff on convention, sports and entertainment facility feasibility studies. Jared joined HVS in 2005. Jared has performed numerous hotel studies throughout the US, including studies in Arizona, California, Colorado, Florida, Illinois, Indiana, Louisiana, Maryland, Massachusetts, Michigan, New York, Ohio, Pennsylvania, South Carolina, Texas, Utah, Virginia, and Washington. His hotel operational experience includes work for Marriott. He received his Bachelor of Science in Hotel, Restaurant, and Institutional Management from Pennsylvania State University. Jared would serve as analyst. Page 7 of 17 2. Scope of Work Understanding of Project City of Brookings has requested HVS to provide a validation study for expansion options of the Swiftel Center in Brookings, South Dakota. A study was completed in February 2008 by VenuWorks Consulting and JLG Architects. The Swiftel Center is owned by the City of Brookings and operated under a management agreement by VenuWorks (formally Compass Facility Management) since 2001. The facility currently hosts about 400 events a year, including such events as meetings and conventions, concerts, sporting events, civic events, banquets, entertainment events, etc. For planning purposes, a validation study for the project is required. HVS proposes a scope of work that will include the following elements: Client Meeting, Fieldwork, and Tour of Swiftel Center Review of Prior Study Historical Operations and Lost Business Comparable and Competitive Facility Analysis Commentary on Proposed Facility Recommendation Demand Projections Financial Projections Description of Scope of Services The following pages provide a detailed description of each major task we will undertake as part of the proposed analysis. Page 8 of 17 Step 1: Client Meeting and Data Gathering HVS will meet with you and/or your representatives to discuss our study in more detail and to formulate a schedule for performing the engagement. At this time, we will gather any information from you that may assist us in performing this assignment, including data and key contacts. Primary types of information HVS will gather will include: 1. On-site tour of the Swiftel Center and expansion sites; 2. Review the facility with respect to site access and the supportive nature of surrounding land uses as they relate to the new soccer facility; 3. Determine the role that the public sector intends the facility to play in the market; 4. Obtain any additional previous studies, reports, and data; 5. Types of events currently occurring in the market area in existing venues and any plans for expansions, upgrades, or new facilities; 6. Research on expense factors relating to local conditions such as labor, energy rates, assessed values and taxes. In most instances, we will attempt to utilize actual expense experience from comparable properties in our study. Step 2: Review of Prior Study HVS will provide a review of the VenuWorks report dated February 2008 entitled “Public Assembly Facility Feasibility Study: Options for Expansion of the Swiftel Center”. After reviewing the study, HVS will highlight issues and areas of concern we may have, if any, with the research, analysis, and recommendations. Further, we will provide a listing of those items we feel require additional research. Step 3: Historical Operations and Lost Business HVS will gather and review historical event demand, tenant mix, and the financial operations of the Swiftel Center. This review will provide the information necessary to develop a baseline model that calculates the demand and various income and expense streams of the facility. HVS will review and tenant lease arrangements, rates and charges for Page 9 of 17 facility use, historical events, attendance, and any existing sponsorship arrangements. HVS will analyze historical demand and financial operating data for the Swiftel Center. This analysis will enable HVS to summarize operations data for: Annual historical events and attendance, Historical operating revenues and expenses, Future bookings and tenant leases, Historical financial operating data, Terms of lease and ownership of the assets, A summary of all relevant existing sponsorship and advertising contracts, A list of maintenance needs and any deferred maintenance, and Any other relevant information identified as a result of the initial fieldwork. The data obtained during this step will serve as a key input into our thinking about current trends and future demand potential for the Swiftel Center under the expansion scenario. Historical demand will provide a basis for understanding whether events are increasing or decreasing in size and number. Lost business data will help us determine what types of events are considering the Swiftel Center and why these events went another facility. Step 4: Comparable and Competitive Facility Analysis Comparable Facilities This analysis will include a review of selected meeting and event facilities. HVS will select the facilities based upon the following criteria: Similarity in market size and other key demographic characteristics, Markets with similar facilities that have tenant mixes similar to the potential demand in Brookings, Recently expanded facilities, and Other key factors as identified in the market area overview. Page 10 of 17 HVS will identify a set of facilities and compile information on their physical programs, demand, and operations. Interviews with those persons involved in the decision to build/expand the venue will reveal what motivated their decision and the degree to which the facility has met their expectations. Data on the average attendance figures of the primary tenants in these facilities will reveal whether unique market opportunities underlie the decision to develop such facilities. HVS will summarize the circumstances necessary for multi-use facilities to function efficiently and effectively. Our databases on event and multi-purpose facilities and access to the latest demographic data will enable us to perform comparative analysis of comparable markets and their facilities in a cost-effective manner. Facility and market attributes to be compared include: Seating capacity, Square footage and configuration of meeting space, Average attendance and ticket price for selected event types, Number of events and attendance by type, Comparative demographic characteristics, Operating revenues and expenses (when available), and Other factors that may determine the level of demand and market potential. HVS will analyze this data on comparable markets and their facilities and use it as a basis for recommending an appropriate facility program for the Swiftel Center and for projecting demand and financial operations for this facility. Competitive Facilities HVS will analyze the number, size, and quality of potentially competitive facilities in the market area. We will work closely with the client to determine which facilities represent the greatest competition for the Swiftel Center currently, and which facilities would be most competitive if the proposed expansion takes place. Step 5: Commentary on Proposed Facility Recommendations HVS will review the proposed expansion scenarios presented in the VenuWorks report and help the City determine a more defined facility Page 11 of 17 program, based on our understanding of market demand and various site and policy considerations. The general considerations for assessing alternatives may include: Reductions in capital costs requirements Alternatives that address the market demand identified in the analysis The facility needs of existing and potential users Alternatives that may enhance revenue generation Improvements in the efficiency of operations and reductions in operating costs Consideration of phasing components of the expansion Step 6: Demand Projections Based on the market research, historical operations, comparable/competitive facilities analysis, and interviews, HVS will quantify the event demand for: Meetings Sports events Concerts Assemblies Tournaments Conventions and trade shows Consumer shows Meeting and civic events Others as appropriate Step 7: Financial Projection HVS uses sophisticated and proprietary software, the HVS CSE Venue Model© (the “Venue Model”) to model facility financial operations. The HVS Model is a Microsoft Excel based program that facilitates the analysis and presentation of public assembly facility demand and Page 12 of 17 financial projections. The Venue Model is extremely flexible, allowing the user to specify the appropriate building program, event types and characteristics, financial parameters, and revenue and expense line- items that uniquely describe the operations of any public assembly venue. It produces forecasts of demand and financial operations for a ten-year period. Furthermore, the HVS Model is linked to the HVS CSE Impact Model© (the “Impact Model”) which is used to analyze economic and fiscal impacts. The integration of the Venue and Impact Models provides our clients with an unmatched resource that generates efficient, seamless, and accurate financial and economic analysis. The demand profile and data from historical operations, operations of existing venues and comparable facilities serve as the primary inputs into the HVS Model. HVS staff will conduct research of expense factors relating to local conditions such as labor and energy rates. The Venue Model separates the fixed and variable components of revenue and expenses. Variable components of expenses will be estimated based on the level of anticipated facility revenue. The fixed expenses are projected based on data from comparable facility operations. In most instances, we will attempt to utilize actual expense experience from comparable facilities. HVS will calibrate the model to accurately reflect the unique characteristics of the market. HVS will incorporate demand, revenue, and expense assumptions into the Venue Model to reflect the recommended improvements and their demand and operating implications. HVS enters the estimated number of events and average attendance by type of event into the operating Venue Model, which produces estimates of revenue and expense annually over the projection period. The description of financial projections will include a detailed line-by-line account of all revenue sources and expenses. The forecast of financial operations covers the same ten-year period as the demand projections. Optional Scope: Economic Impact Analysis The key to an accurate impact analysis is to estimate the net new activity in City caused by the expansion of the Swiftel Center. When the Swiftel Center generates room night demand, it may capture some of the existing room night demand or possibly displace demand that would otherwise be in City. HVS uses the HVS CSE Impact Model© (the “Impact Model”). The Impact Model allows the user to input spending estimates that reflect the levels of spending that are unique to the local community. This Page 13 of 17 methodology has the potential to produce a much more precise estimate than typical impact estimates that tend to rely exclusively on national spending data. Net New Demand In order to estimate the net increase in visitation to City, HVS will develop a detailed demand model and we will test the validity and reliability of this model using a regression analysis. A valid and reliable regression analysis will provide a statistically significant estimate of the net new room night demand caused by the expanded Swiftel Center. Furthermore, the regression analysis will provide a 90 percent confidence interval for our projection. This methodology has the potential to produce a much more precise estimate than typical impact estimates that rely on a series of unsupported assumptions. Price Effects In addition to affecting the level of hotel demand in the market, the Swiftel Center may also have an impact on the overall price of rooms in the market. Through a second regression model, HVS will test the hypothesis that Swiftel Center events cause room rates to increase and thereby generate addition spending in the local hotel sector. Provided the model produces statistically significant results, HVS will provide an estimate of the overall impact of this price affect. Data Requirements In order to implement this approach, HVS will acquire Smith Travel Research data on daily occupancies and average daily room rates. HVS will also acquire DAYSTAR data on the daily group occupancy of the Swiftel Center and daily attendance at conventions, consumer shows and other events. Spending Estimates Once the net new demand impact is known, HVS will use these estimates to calculate the associated spending. HVS will measure four types of net new spending impacts: 1. Overnight visitor spending 2. Day visitor spending Page 14 of 17 3. Exhibitor spending 4. Event organizer spending Spending estimates will be based in part on data from the latest version of the Destination Marketing Association International (“DMAI”) delegate expenditure survey. We will adjust the DMAI survey numbers for inflation and to local market characteristics as necessary. We will adjust this DMAI data with information on local spending contained in the MAR Survey. HVS will estimate three types of spending impacts in the analysis: Direct impacts include the visitor expenditures, payroll, and employment resulting from the events and operations occurring at the PCCC. Indirect impacts are the supply of goods and services resulting from the initial direct facility-related spending. Induced impacts represent the change in local consumption due to the personal spending by employees whose incomes are affected by direct and indirect spending. Indirect and induced impacts are often referred to as the multiplier effects, which vary depending upon the types of spending and the characteristics of the local economy. HVS will use the IMPLAN input-output model to estimate indirect and induced impacts. IMPLAN is a nationally recognized model commonly used to estimate economic impacts. An input-output model generally describes the commodities and income that normally flow through the various sectors of the economy. The indirect and induced expenditure, payroll, and employment effects result from the estimated changes in the flow of income and goods caused by the projected direct impacts. IMPLAN data are available by state, county, and zip code levels. Personalized Support It is our operating practice to regularly communicate with our clients to update them on our status and findings. We pledge to be available via telephone throughout the duration of the project to discuss with you any issues or ideas that may arise. Upon submission of our study, the project manager will be available to discuss with you and/or any third party our analysis and conclusions. Page 15 of 17 This personalized support enhances the credibility of our findings and assists you in achieving your objectives. Reporting Upon completion of analysis, HVS will submit a draft report and hold a conference call with client representative to discuss our findings. We will discuss our findings with you and incorporate any agreed-upon changes to the report. Subsequently, HVS will finalize the study and provide a discussion of our findings, projections, estimates, and recommendations in a full written report. Reports will be provided electronically and, if requested, HVS will provide up to three bound, hard copies without additional charge. Page 16 of 17 3. Schedule and Fees Schedule HVS proposes a six week timeline for this study. Fees We propose to perform the above outlined scope of services for a fixed fee of $20,000. A retainer of $10,000 will be due upon authorization to proceed and the remainder of the fees will be due prior to delivery of our final report. The Optional Service- Economic Impact Analysis will be an additional $5,000 in fees. In addition to our professional fees, you agree to reimburse us for reasonable out-of-pocket travel (one trip to Brookings) and data expenses (such as out-research services including ESRI and IMPLAN) incurred on your behalf. Expenses will be billed at cost. You will be billed periodically for expenses, which will be due and payable upon presentation of our bills. Although most clients do not require additional meetings or presentations, HVS wants to be available for our clients and we offer the flexibility to schedule additional meetings or presentations, depending on each client’s project needs. If you require any additional meetings, HVS will charge its standard hourly or per diem rates plus travel expenses for the time associated with the meetings. HVS will not undertake additional meetings outside the scope of services as described herein without your written authorization. Our standard rates are available on request. Payment must be made in U.S. dollars, using either a check drawn on a U.S. bank or a wire transfer of funds to the account of North Star Research Corp., (a division of HVS Global Hospitality Services). In the event that after completing the fieldwork phase of this assignment it becomes necessary to alter the parameters of the study, such as the property description, opening date, location, or any other factor which could change the final conclusions, the HVS will be entitled to charge an additional fee based on our current per diem rates and the time required to incorporate the necessary changes into Page 17 of 17 our analysis and report. In addition, the estimate of timing will be extended by an amount equal to the added work. It is agreed that the liability of HVS, its employees, and anyone else associated with this assignment is limited to the amount of the fee paid as liquidated damages. You acknowledge that any opinions, recommendations, and conclusions expressed during this assignment will be rendered by the staff of HVS acting solely as employees and not as individuals. Any responsibility of HVS is limited to the client, and use of our product by third parties shall be solely at the risk of the client and/or third parties. The study described in this proposal will be made subject to certain assumptions and limiting conditions. A copy of our standard assumptions and limiting conditions will be provided upon request. This proposal offer is effective for 30 days. After that time our proposed scope of services, schedule and fees may be subject to change. If the terms of this proposal meet with your acceptance, please sign and return one copy of the confirmation page of this proposal, together with your retainer check in the amount of $10,000. Your signature on the confirmation page signifies your agreement to employ North Star Research Corp., a division of HVS Global Hospitality Services for these services. We appreciate the opportunity to submit this proposal and hope to have the opportunity to work with you on this important assignment. Very truly yours, Thomas Hazinski Managing Director North Star Research Corp. A Division of HVS Global Hospitality Services Convention, Sports & Entertainment Facilities Consulting New York San Francisco Boulder Denver Boston Miami Dallas Chicago Washington, DC Newport, RI Atlanta Mexico City Vancouver Toronto London Madrid Athens New Delhi Singapore Hong Kong São Paulo Buenos Aires Shanghai 205 W. Randolph, Suite 1650, Chicago, Illinois 60606 Phone (312) 587-9900 z Fax (312) 587-9908 www.hvs.com 205 W. Randolph, Suite 1650 Chicago, IL 60606 Phone: 312.587.9900 Fax: 312.587.9908 www.hvs.com HVS CONVENTION, SPORTS, & ENTERTAINMENT FACILITIES CONSULTING, A DIVISION OF HVS INTERNATIONAL BASED IN CHICAGO, ILLINOIS, PROVIDES INDEPENDENT AND OBJECTIVE ECONOMIC AND FINANCIAL CONSULTING AND ADVISORY SERVICES TO PUBLIC AGENCIES AND PRIVATE DEVELOPERS OF CONVENTION, SPORTS, AND ENTERTAINMENT FACILITIES. OUR STAFF IS DEDICATED TO HELPING IMPLEMENT YOUR PROJECTS BY PROVIDING RIGOROUS ANALYSIS DURING THE PLANNING PROCESS AND EXPERT ADVICE ON DEVELOPMENT DECISIONS. Hospitality Investment Banking Market Research Development Assistance Economic & Fiscal Impact Studies Tax Forecasts Independent Feasibility Studies HVS Convention, Sports & Entertainment Facilities Consulting HVS Convention, Sports & Entertainment Facilities Consulting Financing & Transaction Assistance Hotel Valuation Asset Management Hospitality Consulting Organizational Assessments Executive Search Interior Design Brokerage Gaming Litigation Support Marketing & Communications Operations & Management Strategy Technology Strategies Timeshare Consulting Restaurant Management & Consulting Parking Solutions Golf Services Hospitality Investment Banking Market Research Development Assistance Economic & Fiscal Impact Studies Tax Forecasts Independent Feasibility Studies HVS Convention, Sports & Entertainment Facilities Consulting HVS Convention, Sports & Entertainment Facilities Consulting Financing & Transaction Assistance Hotel Valuation Asset Management Hospitality Consulting Organizational Assessments Executive Search Interior Design Brokerage Gaming Litigation Support Marketing & Communications Operations & Management Strategy Technology Strategies Timeshare Consulting Restaurant Management & Consulting Parking Solutions Golf Services HVS Convention, Sports & Entertainment is a division of HVS International, a global consulting firm serving the needs of the hospitality and tourism industries. HVS International has the expertise and capacity to plan, study, and implement large mixed use real estate projects anywhere in the world. The specialized staff of HVS Convention, Sports, & Entertainment Facilities Consulting has performed over 250 assignments analyzing the feasibility of convention centers, headquarters hotels, stadiums, arenas, civic centers, motorsports facilities, tourism attractions, fairgrounds, water parks, and other economic development initiatives. We can serve our client from the early planning stages through financing and implementation of our projects. Our studies often appear in municipal bond offering statements. Rating agencies, bond insurers, and investors rely on our studies for independent and objective assessment of the costs, benefits and risks of real estate development. We specialize in planning and negotiating public/private partnerships and are one of the few firms that understand both the public and private sides of development issues. 205 W. Randolph, Suite 1650 Chicago, IL 60606 Phone: 312.587.9900 Fax: 312.587.9908 www.hvs.com Our Clients • Public Facility Authorities • Economic Development Agencies • Planning Departments • Municipal Finance Departments • Convention and Tourism Agencies • Lenders, Investment Banks • Non-Profit Groups • Private Developers • Non-Governmental Entities involved in Publicly Supported Development Projects Types of Services • Independent and expert opinions on project feasibility • Studies used to support project financing • Reports are available to use in municipal bond offering statements, public offering documents and private placement memorandums • Financial modeling • Extensive experience in presenting studies to policy makers and to the investment community • Analysis of the relationship between the economics and demographics of a community and its proposed development initiative • Extensive databases on comparable facilities • Variety of survey and interview techniques targeted to potential users • Business and financial plan creation • Market-based building program plans and development • Development of team solicitation and selection • Development and operating agreement negotiation • Market strategies development • Familiarity with all phases of the development process, including the early phases of project conceptualization, physical planning, deal structuring, project delivery and operations • Use of proven methodologies for estimating economic and fiscal impacts for public development initiatives • Sophisticated economic “input/output models” for estimation of the potential for induced and indirect project impacts • Fiscal impact analysis to measure the benefit of new tax revenue generated by the project • Accurate forecasting of public economic development projects revenues for creating and implementing a financial plan • Forecasts of sales, income, property, hotel occupancy, auto rental, and food and beverage taxes, as well as numerous other taxes that support publicly financed projects • HVS understands the market fundamentals and economics that drive the underlying tax base • Financial debt capacity analysis • Structure and develop financing plan • Prepare, structure, and negotiate transaction documents Independent Feasibility Studies Market Research Development Assistance Economic & Fiscal Impact Studies Tax Forecasts Financing & Transaction Assistance Project Experience HVS Convention, Sports & Entertainment Facilities Consulting 205 W. Randolph St., Suite 1650 Chicago, Illinois 60606 Phone: 312-587-9900 ♦ Fax 312-587-9908 ♦ www.hvs.com Market & Feasibility Studies Akron, Ohio John S. Knight Convention Center Expansion Albany, New York Convention Center and Hotel Albertisa, Hungary Sports Complex Albuquerque, New Mexico Convention Center Headquarters Hotel Study Alpena, Michigan Civic Center Apopka, Florida Civic Center Arlington, Texas Convention Center Ashland, Kentucky Motor Speedway Austin, Texas Austin Convention Center and Hotel Austin Long Center for the Performing Arts Baltimore, Maryland Convention Center Hotel Feasibility Study Bangkok, Thailand Amari Hotels Convention Center Bangor, Maine Proposed Conference Center Berlin, Germany Hotel, Convention and Entertainment Facility Bexar County, Texas Multi-Purpose Event Center & Fairgrounds Big Spring, Texas Hotel Conference Center Feasibility Analysis Bloomington, Illinois Arena Birmingham, Alabama Hotel Feasibility Boston, Massachusetts Convention & Exhibition Center Boston Duck Tours Branson, Missouri Convention Center & Headquarters Hotel Buffalo, New York Buffalo Convention Center Canonsburg, Pennsylvania Convention Center Feasibility Analysis Chandler, Arizona Rawhide Theme park Operations Review & Valuation Charleston, South Carolina Citadel Stadium Charlotte, North Carolina Convention Center Master Plan Chennai, India Trade & Exposition Center Chesterfield, Michigan Exposition Center Chicago, Illinois Kino Factory Theater Hotel Feasibility – Private Developer Hyatt McCormick Place Expansion Hotel at University of Chicago Cleveland, Ohio Mixed-use Lakefront Report Development Clovis, California Convention Center & Hotel Colorado Springs, Colorado Hotel and Conference Center Feasibility Analysis Columbus, Ohio Greater Columbus Convention Center Copenhagen, Denmark Congress Facilities Coralville, Iowa Convention Center & Hotel Corpus Christi, Texas Bayfront Convention Center Expansion Hotel, Restaurant & Retail Masterplan Council Bluffs, Iowa Mid-America Center Market Study Dallas, Texas Convention Center Complex Davenport, Iowa Convention Center Denver, Colorado Convention Center Expansion Detroit, Michigan Regional Convention Center Ford Field Entertainment-Retail Center Durango, Colorado Conference Center Feasibility Study Durham, North Carolina Convention Center Project Experience HVS Convention, Sports & Entertainment Facilities Consulting 205 W. Randolph St., Suite 1650 Chicago, Illinois 60606 Phone: 312-587-9900 ♦ Fax 312-587-9908 ♦ www.hvs.com Edmonton, Alberta Resort Hotel & Entertainment Complex Erie, Pennsylvania Headquarters Hotel Flagstaff, Arizona Hotel Conference Center Fort Worth, Texas Hotel Foxwoods, Connecticut Casino & Resort – Convention Facilities Galveston, Texas Convention Center Gary, Indiana Civic Center Maximization Casino Amphitheater Glens Falls, New York Arena, Hotel and Parking Grand Forks, North Dakota Alerus Center Convention Center Hotel Green Bay, Wisconsin Titletown Entertainment Retail Attraction (Lambeau Field) Greenville, South Carolina BI-LO Arena Hagerstown, Maryland Multi-Purpose Events Center Complex Hammond, Indiana Cine Art Movie Theater Hartford, Connecticut Convention Center Demand Analysis Harvard, Illinois Waterpark Resort & Expo Center Holland, Michigan Holland Area Center Hopkins, Minnesota Hopkins High School Performing Arts & Activities Houston, Texas Redevelopment of Reliant Astrodome Indianapolis, Indiana Hotel and Conference Center Jackson, Mississippi Conference Center & Golf Resort Jamaica (Queens), New York Hotel & Conference Center Kingsport, Tennessee Hotel Conference Center Expansion Knoxville, Tennessee Hotel Feasibility Las Cruces, New Mexico Hotel Conference Center Lawrenceburg, Indiana Hotel Loudoun County, Virginia Convention Center & Arena Mammoth Lakes, California Conference Center Manchester, New Hampshire Civic Center / Verizon Wireless Arena Convention Center Feasibility Performing Arts Center Feasibility Manila, Philippines Ayala Development Makati Business District Convention Center Melbourne, Australia Convention Center and Hotel Merrillville, Indiana Convention Center Mesa, Arizona Domed Stadium Milwaukee, Wisconsin Auditorium Renovation Midwest Express Center Phase II Expansion Midwest Express Center Phase III Expansion City-wide Hotel Analysis Montego Bay, Jamaica Convention Center Feasibility Mumbai, India Bandra Kurla Convention Center Naperville, Illinois Hotel and Convention Center New Morgan, Pennsylvania Formula Motor Sports Park New Orleans, Louisiana Grammy Exposition Hall & Hall of Fame New York, New York Pier 94 – the “UnConvention Center” Madison Square Garden- Assessment of Stadium’s use of Convention Center Norfolk, Virginia Convention Center & Hotel Norman, Oklahoma Hotel & Conference Center Project Experience HVS Convention, Sports & Entertainment Facilities Consulting 205 W. Randolph St., Suite 1650 Chicago, Illinois 60606 Phone: 312-587-9900 ♦ Fax 312-587-9908 ♦ www.hvs.com Omaha, Nebraska Convention Center, Arena & Headquarters Hotel Ottawa, Ontario Rideau Carleton Trade Show and Exhibition Centre Overland Park, Kansas Arena Feasibility Study Arena Impact Study Convention Center and Hotel Feasibility Study Soccer Stadium Palmdale, California Conference Center Philadelphia, Pennsylvania Convention Center Labor Study Quad Cities, Illinois Quad Cities International Raceway Park Queens, New York Convention Center & Hotel Racine, Wisconsin Convention Center Raleigh, North Carolina Convention Center and Headquarters Hotel Stadium Feasibility Rancho Mirage, California Agua Caliente Casino and Resort Richmond, Virginia Greater Richmond Convention Center Saint Louis, Missouri Headquarters Hotel Market Study Industry Market Study Due Diligence for Hotel Investor Salt Lake City, Utah Performing Arts Center & Cultural District Planning Salem, Oregon Oregon State Fair Salem, Virginia Convention Center San Antonio, Texas Convention Center Freeman Coliseum Multi-purpose Event Center San Bernadino, California Arena San Juan, Puerto Rico America’s World Trade Center District & Entertainment District Santa Fe, New Mexico Cerrillos Road Convention Center Survey Downtown Convention Center Feasibility Study Saratoga Springs, New York Concert Venue Analysis Multi-Purpose Entertainment Venue Schaumburg, IL Convention Center & Hotel Feasibility Study Convention Center and Headquarters Hotel Asset Management Skagit County, Washington Northern State Recreation Center South Lake Tahoe, California Hotel Conference Center & Event Center Suffolk, Virginia Hotel Conference Center Sydney, Australia Convention Center Syracuse, New York DestiNY –Tourism, Retail & Entertainment Center Tinley Park, Illinois Convention Center Expansion Tucson, Arizona Convention Center/Hotel Vail, Colorado Conference Center Valley View, Pennsylvania Rausch Motor Sports / Motor Sports Park Vancouver, British Columbia Convention Center Visalia, California Convention Center Expansion Wausau, Wisconsin Convention Center & Hotel Washington, DC Wardman Park Hotel West Allis, Wisconsin State Fair Park Hotel Hotel Feasibility Study and Request for Proposals Wichita, Kansas Century II Modernization/Expansion Phase I Century II Modernization/Expansion Phase II Winston-Salem, North Carolina Convention Center Youngstown, Ohio Hotel Conference Center Project Experience HVS Convention, Sports & Entertainment Facilities Consulting 205 W. Randolph St., Suite 1650 Chicago, Illinois 60606 Phone: 312-587-9900 ♦ Fax 312-587-9908 ♦ www.hvs.com Hotel Studies Albany, New York Hotel & Convention Center Albuquerque, New Mexico Headquarters Hotel Study Austin, Texas Headquarters Hotel Condo-Hotel Development Baltimore, Maryland Convention Center Hotel Feasibility Study & Hotel Development Bangkok, Thailand Amari Hotels Convention Center Bangor, Maine Proposed Hotel and Conference Center Development Big Spring, Texas Hotel Conference Center Feasibility Birmingham, Alabama Hotel Feasibility Branson, Missouri Convention Center & Headquarters Hotel Charlotte, North Carolina Headquarters Hotel Development Convention Center Financing Room Tax Analysis Chicago, Illinois Hotel Feasibility for Private Developer University of Chicago Hotel Hotel Feasibility – near downtown Hotel Feasibility – Wicker Park Clovis, California Convention Center & Hotel Colorado Springs, Colorado Hotel and Conference Center Feasibility Analysis Costa Rica Hotel/Condo Resort Development Columbus, Ohio Fort Rapids Waterpark Hotel Coralville, Iowa Convention Center & Hotel Corpus Christi, Texas Bayfront Convention Center Expansion Hotel, Restaurant & Retail Masterplan Davenport, Iowa Management RFP Blackhawk Hotel Redevelopment Dayton, Ohio Hotel Decatur, Illinois Hotel and Conference Center Des Moines, Iowa Hotel Erie, Pennsylvania Hotel Fishers, Indiana Hotel Flagstaff, Arizona Hotel Conference Center Fort Worth, Texas Headquarters Hotel Franklin, Tennessee Hotel Feasibility Frederick, Maryland Hotel Conference Center Feasibility Grand Forks, North Dakota Alerus Center Convention Center Hotel Greenville, South Carolina Greenville Auditorium District Hotel Tax Revenue Bonds Harvey, Illinois Hotel Feasibility Highland Park, Illinois Hotel Feasibility Houston, Texas Hotel Feasibility Headquarters Hotel Feasibility Huntsville, Alabama Headquarters Hotel Development Indianapolis, Indiana Hotel Conference Center Feasibility Jamaica (Queens), New York Hotel & Conference Center Knoxville, Tennessee Hotel Lawrenceburg, Indiana Hotel Project Experience HVS Convention, Sports & Entertainment Facilities Consulting 205 W. Randolph St., Suite 1650 Chicago, Illinois 60606 Phone: 312-587-9900 ♦ Fax 312-587-9908 ♦ www.hvs.com Hotel Studies Continued Manchester, New Hampshire Hotel Feasibility Milwaukee, Wisconsin City-wide Hotel Market Analysis Minneapolis, Minnesota Suburban Hotel Waterpark Feasibility Moline, Illinois Hotel Feasibility Mount Pleasant, South Carolina Hotel Feasibility Naperville, Illinois Hotel and Convention Center New York City, New York Hotel Norfolk, Virginia Convention Center & Hotel Normal, Illinois Hotel, Conference Center & Multi-Use Facility Development Norman, Oklahoma Hotel & Conference Center Oakbrook, Illinois Hotel Feasibility Omaha, Nebraska Convention Center & Hotel Convention Center, Arena & Headquarters Hotel Palm Beach Gardens, Florida Hotel Feasibility Phoenix, Arizona Hotel Feasibility Pigeon Forge, Tennessee Hotel Feasibility Portland, Oregon Headquarters Hotel Queens, New York Convention Center & Hotel Raleigh, North Carolina Headquarters Hotel & Convention Center Centennial Authority of North Carolina – Hotel Tax Revenue Bonds Richmond, Virginia Greater Richmond Convention Center Authority Hotel Tax Revenue Bonds Saint Louis, Missouri Headquarters Hotel Market Study Hotel Industry Analysis Saint Louis, Minnesota Hotel San Juan, Puerto Rico Room Tax Analysis Santa Fe, New Mexico Civic Center Hotel Room Tax Analysis Schaumburg, IL Convention Center & Hotel Feasibility Study Convention Center and Headquarters Hotel Asset Management Shasta Lake, California Hotel Conference Center South Lake Tahoe, California Hotel Conference Center & Event Center Suffolk, Virginia Hotel Conference Center Wailuku, Hawaii Hotel Feasibility Washington, DC Wardman Park Hotel Wausau, Wisconsin Convention Center & Hotel Hotel-Motel Room Tax Analysis West Allis, Wisconsin State Fair Park Hotel Hotel Feasibility Study and Request for Proposals Youngstown, Ohio Hotel Conference Center Project Experience HVS Convention, Sports & Entertainment Facilities Consulting 205 W. Randolph St., Suite 1650 Chicago, Illinois 60606 Phone: 312-587-9900 ♦ Fax 312-587-9908 ♦ www.hvs.com Economic Impact Analyses Arlington, Texas Arlington Convention Center Albany, New York Convention Center and Headquarters Hotel Austin, Texas Austin Convention Center Boston, Massachusetts Boston Convention Center Boston Duck Tours Boston Red Sox New Fenway Park Buffalo, New York Buffalo Convention Center Chesterfield Township, Michigan Proposed Convention Center Colorado Springs, Colorado Proposed Convention Center Columbus, Ohio Greater Columbus Convention Center Copenhagen, Denmark Proposed Congress Centre Council Bluffs, Iowa Mid-America Center Dallas, Texas Hotel Impact on Convention Center Denver, Colorado Convention Center Headquarters Hotel Houston, Texas Redevelopment of Reliant Astrodome Lenox, Massachusetts National Music Foundation Lombard, Illinois Proposed Hotel Conference Center Louisville, Kentucky Henry Clay Hotel Restoration - Kentucky Tourism Cabinet Mammoth Lakes, California Proposed Conference Center Milwaukee, Wisconsin Convention Center & CVB Naperville, Illinois Proposed Conference Center New Orleans, Louisiana Hotel Industry Impact Study New York, New York World Trade Center Madison Square Garden- Assessment of Stadium’s use of Convention Center Economic Impact Analysis of Hudson Gardens Norfolk, Virginia Convention Center Normal, Illinois Conference Center Norman, Oklahoma Conference Center Overland Park, Kansas Convention Center Proposed Arena Providence, Rhode Island Convention Center Palmdale, California Conference Center Raleigh, North Carolina Proposed Convention Center Richmond, Virginia Greater Richmond Convention Center Salem, Virginia Convention Center Salt Lake City, Utah Performing Arts Center Santa Fe, New Mexico Downtown Convention Center Suffolk, Virginia Hotel Conference Center Vail, Colorado Conference Center Visalia, California Convention Center Washington D.C. Convention Center Project Experience HVS Convention, Sports & Entertainment Facilities Consulting 205 W. Randolph St., Suite 1650 Chicago, Illinois 60606 Phone: 312-587-9900 ♦ Fax 312-587-9908 ♦ www.hvs.com Tax Forecasts Austin, Texas Convention Center/Waller Creek Venue Project Bonds Charlotte, North Carolina Convention Center Financing Room Tax Analysis Chicago, Illinois City of Chicago, Revenue Estimates Books (1989 through 1993) O’Hare International Terminal Special Revenue Bond Financing Motor Fuel Tax Bond Issue Dallas, Texas City of Dallas Hotel/Motel Occupancy Tax and Alcohol and Beverage Tax Green Bay, Wisconsin Lambeau Field Sales Tax Analysis Arena & Convention Center, Room Tax Analysis Greenville, South Carolina Greenville Auditorium District Hotel Tax Revenue Bonds Mecklenburg County, North Carolina Room Occupancy & Prepared Food & Beverage Tax Analysis Milwaukee, Wisconsin Southeast Wisconsin Professional Baseball Park – District Sales Tax Revenue Bonds 1996, 1997, 1999 Wisconsin Center District – Junior Dedicated Tax Revenue Refunding Bond New York, New York Jacob Javits Convention Center Expansion Financing Tax Revenue Bonds North Charleston, South Carolina Charleston County Municipal Accommodations Fee Analysis Orlando, Florida Orange County Convention Center Tax Revenue Analysis Overland Park, Kansas General Obligation Bonds – Transient Guest Tax Study Overland Park Development Corp. – Senior Revenue Bonds Raleigh, North Carolina Centennial Authority of North Carolina – Hotel Tax Revenue Bonds Richmond, Virginia Greater Richmond Convention Center Authority Hotel Tax Revenue Bonds San Juan, Puerto Rico Room Tax Analysis Santa Fe, New Mexico Civic Center Hotel Room Tax Analysis Wausau, Wisconsin Hotel-Motel Room Tax Analysis Project Experience HVS Convention, Sports & Entertainment Facilities Consulting 205 W. Randolph St., Suite 1650 Chicago, Illinois 60606 Phone: 312-587-9900 ♦ Fax 312-587-9908 ♦ www.hvs.com Development Assistance Akron, Ohio Football Stadium & Mixed-Use Development Augusta, Georgia Convention Center and Hotel Development Albany, New York Headquarters Hotel Task Force Albuquerque, New Mexico Headquarters Hotel Task Force Arlington, Texas Headquarters Hotel and Convention Center Expansion Baltimore, Maryland Headquarters Hotel Development Bangor, Maine Proposed Hotel and Conference Center Development Cairo, Egypt Convention Center Management Study Charleston, South Carolina College of Charleston Arena Charlotte, North Carolina Headquarters Hotel Development Chicago, Illinois O’Hare International Management Headquarter Hotel Operator Selection Columbus, Ohio COSI Science & Industry Museum Feasibility Study – Peer Review Council Bluffs, Iowa Negotiation Assistance – Arena/Convention Center Operator Davenport, Iowa Management RFP Blackhawk Hotel Redevelopment Frenchtown, St. Thomas US Virgin Islands Resort Hotel Development Greenville, South Carolina BI-LO Center Proposed Ballpark & Mixed-use Development Huntsville, Alabama Headquarters Hotel Development Jacksonville, Florida Jacksonville Arena Jacksonville Baseball Park Macon, Georgia Arena & Ballpark Mixed-use Development Manchester, New Hampshire Verizon Wireless Arena Milwaukee, Wisconsin Wisconsin Center District – Financial Advisory Services Wisconsin Center District – Construction Manager Selection Soccer Stadium/ Mixed-use Naperville, Illinois Hotel and Conference Center Development Normal, Illinois Hotel, Conference Center & Mixed-Use Development Norman, Oklahoma Development Contract Negotiation Assistance Development Omaha, Nebraska Headquarters Hotel & Convention Center Development Overland Park, Kansas Headquarters Hotel & Convention Center Development Owensboro, Kentucky Mixed-use Development Perth Amboy, New Jersey Ballpark Development Prospect Heights, Illinois Arena Development Queens, New York Madison Square Garden Stadium Commentary Raleigh, North Carolina Headquarters Hotel & Convention Center Development Saint Louis, Missouri Saint Louis University Arena & Mixed-use Development San Antonio, Texas Convention Center San Antonio, Texas CVB San Juan, Puerto Rico America’s World Trade Center District Savannah, Georgia Arena Development Schaumburg, Illinois Convention Center and Headquarters Hotel Stamford, Connecticut Arena Development Ballpark & Mixed-use Development Project Experience HVS Convention, Sports & Entertainment Facilities Consulting 205 W. Randolph St., Suite 1650 Chicago, Illinois 60606 Phone: 312-587-9900 ♦ Fax 312-587-9908 ♦ www.hvs.com Development Assistance Continued Stillwater, Oklahoma Oklahoma State Football Stadium Renovation Wauwatosa, Wisconsin Milwaukee Regional Medical Center Organizational Analysis West Allis, Wisconsin Hotel Feasibility Study and Request for Proposals Project Experience HVS Convention, Sports & Entertainment Facilities Consulting 205 W. Randolph St., Suite 1650 Chicago, Illinois 60606 Phone: 312-587-9900 ♦ Fax 312-587-9908 ♦ www.hvs.com Financial Services and Financial Analytical Services Augusta, Georgia Purchase of the Augusta Lynx of the East Coast Hockey League, Investment Banker Chatham County, Georgia Naming Rights Marketing Assistance Services Columbia, South Carolina New Ballpark and Mixed-use Development, Financial Advisor to Team and Developer Council Bluffs, Iowa Mid-America Center Operational Review Davenport, Iowa Convention Center Operational Review Denver, Colorado Convention Center Expansion, Financial Advisor Greenville, South Carolina BI-LO Center - Arena Lease, Operating Agreements, Financing Documents Jacksonville, Florida Ballpark Lease Negotiations between the City of Jacksonville and the Jacksonville Suns for a Long- term Lease of the new Baseball Grounds Comparative Study of 9 NFL Small Market Stadium Lease, Financing and Operations Program Manager, Overseeing development of $170 million Sports Complex including new Arena and Ballpark Manchester, New Hampshire Verizon Wireless Arena, Investment Banker Omaha, Nebraska Omaha Royals New Downtown Ballpark and Mixed-use Development, Financial Advisor St. Augustine, Florida World Golf Village, Financial Advisor St. Petersburg, Florida St. Petersburg Times Forum (NHL’s Lightning), Investment Banker and Financial Analyst Tampa Bay, Florida Tropicana Field (MLB’s Devil Rays),Investment Banker and Financial Analyst Raymond James Field, Investment Banker and Financial Analyst Vero Beach, Florida 4 Spring Training Facilities including renovation of Dodgertown, Investment Banker and Financial Analyst Worchester, Massachusetts Valuation and Allocation of the Naming Rights for Convention Center and Arena Leagues Af2 League Venue and Team Services Consultants to the af2 National Basketball Association Venue and Market Consultants to the NBA on the creation and initial market selection of the NBDL THOMAS A. HAZINSKI Managing Director HVS Convention, Sports & Entertainment Facilities Consulting HVS Convention, Sports & Entertainment Facilities Consulting 205 W Randolph, Suite 1650 Chicago, Illinois 60606 Phone: 312-587-9900 • E-mail: thazinski@hvs.com Thomas A. Hazinski has 18 years of experience in the public policy arena, as a public official and as a consultant. He specializes in providing economic and financial research to public agencies and private developers involved in economic development initiatives. For the past ten years Hazinski has specialized in the analysis of convention, sports and entertainment markets and the associated real estate developments. In January 2000, he started the Chicago office of HVS International as its Managing Director. Formerly, Mr. Hazinski served as Senior Vice President of C.H. Johnson Consulting, Inc., a firm that specialized in market analyses and feasibility studies for convention, sports, hospitality, and entertainment facilities. Mr. Hazinski has managed up to 25 engagements each year helping many of his clients to successfully plan and finance their projects. Internationally, he has worked on convention and sports projects in Berlin, Cairo, Copenhagen, Geneva, San Juan, Melbourne, Macau, and other cities in India, Thailand and the Philippines. Mr. Hazinski has studied and helped to implement convention center and hotel initiatives in major U.S. markets such as Chicago, Baltimore, Boston, Milwaukee, New York, Austin, and Kansas City. His sports facility project experience includes: Miller Park in Milwaukee, WI; the BI-LO Arena in Greenville, SC; the Citadel Stadium in Charleston, SC; the Centennial Arena in Raleigh, NC; Lambeau Field in Green Bay, WI; the Manchester Civic Center in Manchester, NH; and various other stadium, arena and motorsports facilities. Before starting his consulting career, Mr. Hazinski served in government positions dealing with various aspects of municipal finance. Formerly Assistant Budget Director for the City of Chicago, he managed the City’s revenue analysis unit and was responsible for revenue estimation, legislative review and fiscal impact analyses for numerous city projects. Mr. Hazinski also served as the Assistant Commissioner of the Department of Aviation for the City of Chicago, where he coordinated the completion and opening of the new International Terminal at O’Hare Airport. Mr. Hazinski holds a Masters Degree in Public Policy from the Harris School of Public Policy at the University of Chicago, where he specialized in municipal finance. He completed four years in the post-graduate degree program, including doctoral course-work, before leaving to pursue active management. He has lectured at DePaul University in the Masters of Public Services Program, teaching a course entitled “Financial and Economic Foundations of Public Service.” CONSULTING EXPERIENCE Managing Director, HVS Convention, Sports & Entertainment Facilities Consulting Senior Vice President, C.H. Johnson Consulting, Inc. Vice President, Midwest Management Consultants Market and Financial Analysis of Public Development Projects Fiscal and Economic Impact Studies Tax Forecasts Financial Advisory Services Development Assistance GOVERNMENT SERVICE Assistant Budget Director for Revenue Analysis, City of Chicago Assistant Commissioner of Aviation and International Terminal Manager Revenue Analysis, Chicago Park District ACADEMIC BACKGROUND M.A. Public Policy Studies, University of Chicago B.A. University of Wisconsin - Madison Lecturer, DePaul University HANS DETLEFSEN Director HVS Convention, Sports & Entertainment Facilities Consulting HVS Convention, Sports & Entertainment Facilities Consulting 205 W. Randolph, Suite 1650, Chicago, Illinois 60606 Phone: 312-587-9900 • E-mail: hdetlefsen@hvs.com Hans Detlefsen consults for public and private clients seeking to plan, develop, and operate cultural, entertainment, retail, and convention facilities. Mr. Detlefsen is currently a Director at HVS Convention, Sports & Entertainment Facilities Consulting, which is dedicated to objective and independent market and financial analysis of public assembly facilities. His assignments primarily include assessing the market and financial feasibility of these projects. He has devised an urban retail demand model that assists in the determination of which retail and entertainment elements are most feasible for development in particular markets. Mr. Detlefsen has also developed several financial models for various entertainment concepts such as theaters, museums, casinos, waterparks, and public assembly facilities. He has direct consulting experience in the following areas: - Market definition and evaluation - Demand modeling - Tax revenue projections - Financial feasibility testing - Retail programming - Development assistance - Attendance projections - Economic impact analysis - Capacity analysis - Sales projections - Public Financing Strategies Formerly, Mr. Detlefsen consulted for Economics Research Associates (ERA), a firm that specializes in entertainment and recreation market analyses and feasibility studies. He has completed assignments across the country, with a focus on cultural, retail and entertainment projects. Recent assignments have included civic centers, movie theaters, amphitheaters, interactive museums, shopping centers, sports arenas, gaming developments, convention centers and hotel conference centers. Past projects include: the new Packer Hall of Fame at Lambeau Field in Green Bay, Wisconsin; a land use study for the Argosy Gaming Company in Joliet, Illinois; and the Sweeney Civic & Convention Center in Santa Fe, New Mexico. Before starting his consulting career, Mr. Detlefsen served as Special Assistant to the Lieutenant Governor of Indiana. During his involvement with state government, Mr. Detlefsen led and assisted in research projects related to economic development, agriculture, and small business development for the State of Indiana. Mr. Detlefsen holds a Masters Degree in Public Policy from the Harris School of Public Policy at the University of Chicago, where he received the Harris Fellowship for his studies in Economic Development. He also graduated magna cum laude from the University of Notre Dame with a Bachelor of Arts in Government and Economics. CONSULTING EXPERIENCE Director, HVS Convention, Sports & Entertainment Facilities Consulting Associate, Economics Research Associates Market Analysis and Feasibility Testing Retail Demand Modeling Development Assistance Public Financing Strategies ACADEMIC BACKGROUND M.P.P. Harris School of Public Policy, University of Chicago B.A. University of Notre Dame BRIAN HARRIS Director HVS Convention, Sports & Entertainment Facilities Consulting HVS Convention, Sports & Entertainment Facilities Consulting 205 W. Randolph, Suite 1650 Chicago, Illinois 60606 Phone: 727-347-1428 • E-mail: bharris@hvs.com Brian Harris brings extensive experience in public facility financing to HVS. He served as Vice President of Analytical Services, ScheerGame Sports Development, LLC for the past five years and previously in a similar capacity at William R. Hough & Co. Prior to that, Harris was deputy manager of public finance at Raymond James. During his 25-year career as an analyst and as a manager of analytical services, he has worked on over 1,000 municipal financing projects ranging from basic general obligation bond issues to complex derivative transactions. Harris’ major activities in sports financing began in 1985 with the financing of the Devil Ray’s Tropicana Field for the City of St. Petersburg/Pinellas County FL. That financing involved financial participation and risk sharing by the City, County, State, and the franchise holders of the sports team. After the Tropicana Field original financing was completed, Harris later worked on the refunding of that transaction in order to lower overall debt service payments. Harris continued to be involved in numerous financing for sports facilities, including the $200 million Raymond James Stadium in Tampa Bay and the BI-LO Center in Greenville, S.C., including its 1999 refinancing that lowered its overall debt service. He was lead financial analyst for the Verizon Wireless Arena, a 10,000-seat minor league hockey arena constructed in Manchester, N.H. Mr. Harris worked on the World Golf Village financing outside Jacksonville, FL and numerous minor league ballparks throughout the southeast. He provided both project budget analytical support for the program management team and operating pro-forma analyses for the lease negotiating team on the 170 million dollar ballpark and arena improvements to Jacksonville’s Sports Complex. He has also conducted an analysis of Oklahoma State University’s football stadium and presented a financing plan for a new/improved facility. Additional work experience includes valuation work on Worcester, MA Centrum Centre’s two facilities, working on feasibility plans for an arena and expanded minor league baseball stadium in Savannah, GA, a relocation of the Rubber Bowl in Akron, OH, a development plan for a downtown minor league baseball stadium in Greenville, SC and development of a major league soccer facility in Milwaukee, WI. In Harris’ more than 25 years of experience in the arena financing section of the municipal bond market, he has experienced many variations of public/private partnerships and techniques to enable the issuance of the maximum amount of tax- exempt bonds while permitting franchise teams to play in the arena. Harris also has focused on the investment of bond proceeds in municipal escrow accounts and on the reinvestment of reserve accounts for the purpose of maximizing earnings. Since joining HVS, Harris has provided several hotel analyses, including hotel market and financial feasibility studies in Peoria and Normal, Illinois, as well as a proposed hotel as part of a 3 million square foot urban mixed-use development in North Austin, TX. CONSULTING EXPERIENCE Director, HVS Convention, Sports & Entertainment Facilities Consulting Senior Vice President, ScheerGame Sports Development, LLC FINANCE INVESTMENT BANKING EXPERIENCE Senior Vice President, William R. Hough & Company Senior Vice President, Raymond James & Assoc. Vice President, Arch Roberts & Company Vice President, Florida Municipal Securities, Inc. ACADEMIC BACKGROUND B.S. Business Administration, Finance, University of Central Florida City Council Packet June 24, 2008 79 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 3. 6:00 p.m. Meeting Review. 6:00 P.M. REGULAR MEETING 1. Call to order. 2. Pledge of Allegiance. 3. City Clerk records council attendance. 4. Action to approve the following Consent Agenda Items: * A. Action to approve the agenda. B. Action to schedule a special City Council Meeting for July 24th with the Hospital Board. Action: Motion to approve, request public comment, roll call Presentations/Reports/Special Requests: 5. Open Forum. 6. SDSU Report. 7. Mayoral Proclamations. Ordinances – 1st Readings ** ** No vote is taken on the first reading of ordinances. The title of the ordinance is read and the date for the public hearing is announced. 8. Ordinance No. 29-08: Ordinance amending Article II of Chapter 38 of the Code of Ordinances of the City of Brookings and pertaining to Flood Damage Prevention. Public Hearing: July 8, 2008 Public Hearings & Ordinances: 9. Ordinance No. 28-08: Budget Amendment - An Ordinance Entitled “An Ordinance Authorizing A Supplemental Appropriation To The 2008 Budget For The Purpose Of Providing For Additional Funds For The Operation Of The City. Action: Motion to approve, request public comment, roll call 10. Public hearing and action on Resolution No. 47-08, Determining the Necessity of Repairing or Installing Sidewalks in the City of Brookings at the Expense of Abutting Property Owners, 2008-01SWR Sidewalk Repair Project. Action: Open and close public hearing, motion to approve, roll call Other Business. 11. Action on Resolution NO. 50-08, Resolution authorizing Change Order #2 (CCO#2) for 2008-03STI Downtown Streetscape Project. Action: Motion to approve, request public comment, roll call 12. Action on Resolution No. 48-08, a resolution to annex approximately 7 acres of land into the City of Brookings (Outlot A in the NE ¼ of the NW ¼ of Section 3-T109N- R50W). Action: Motion to approve, request public comment, roll call 13. Action on Resolution No. 49-08, a resolution to annex approximately 12 acres into the city of Brookings (the west 390 feet of the east 1,040 feet of the SE ¼ of the NW ¼ of Section 1-T109N-R50W). Action: Motion to approve, request public comment, roll call 14. Adjourn. City Council Packet June 24, 2008 80 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 4. Council Invites & Obligations. June 28th Saturday Bob & Donna Burns Endowment Celebration/Fund Raiser 4-6 pm June 30th Monday Ray Langland Retirement 1:30 pm June 29- July 1 Sunday- Tuesday NLC Conference July 4th Friday PARADE! 2:00 pm (Line-up begins at noon) City Council Packet June 24, 2008 81 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 5. City Council member introduction of topics for future discussion*. *Any Council member may request discussion of any issue at a future meeting only. Items can not be added for action at this meeting. A motion and second is required starting the issue, requested outcome, and time. A majority vote is required. City Council Packet June 24, 2008 82 6:00 P.M. REGULAR MEETING 1. Call to order. 2. Pledge of Allegiance. 3. City Clerk records council attendance. 4. Action to approve the following Consent Agenda Items: * A. Action to approve the agenda. B. Action to schedule a special City Council Meeting for July 24th with the Hospital Board. Action: Motion to approve, request public comment, roll call Presentations/Reports/Special Requests: 5. Open Forum. 6. SDSU Report. 7. Mayoral Proclamations. Ordinances – 1st Readings ** ** No vote is taken on the first reading of ordinances. The title of the ordinance is read and the date for the public hearing is announced. 8. Ordinance No. 29-08: Ordinance amending Article II of Chapter 38 of the Code of Ordinances of the City of Brookings and pertaining to Flood Damage Prevention. Public Hearing: July 8, 2008 Public Hearings & Ordinances: 9. Ordinance No. 28-08: Budget Amendment - An Ordinance Entitled “An Ordinance Authorizing A Supplemental Appropriation To The 2008 Budget For The Purpose Of Providing For Additional Funds For The Operation Of The City. Action: Motion to approve, request public comment, roll call 10. Public hearing and action on Resolution No. 47-08, Determining the Necessity of Repairing or Installing Sidewalks in the City of Brookings at the Expense of Abutting Property Owners, 2008-01SWR Sidewalk Repair Project. Action: Open and close public hearing, motion to approve, roll call Other Business. 11. Action on Resolution No. 50-08, Resolution authorizing Change Order #2 (CCO#2) for 2008-03STI Downtown Streetscape Project. Action: Motion to approve, request public comment, roll call 12. Action on Resolution No. 48-08, a resolution to annex approximately 7 acres of land into the City of Brookings (Outlot A in the NE ¼ of the NW ¼ of Section 3-T109N- R50W). Action: Motion to approve, request public comment, roll call 13. Action on Resolution No. 49-08, a resolution to annex approximately 12 acres into the city of Brookings (the west 390 feet of the east 1,040 feet of the SE ¼ of the NW ¼ of Section 1-T109N-R50W). Action: Motion to approve, request public comment, roll call 14. Adjourn. City Council Packet June 24, 2008 83 6:00 P.M. Meeting CONSENT AGENDA #4 A. Action to approve the agenda. B. Action to schedule a special City Council Meeting for July 24th with the Hospital Board. Action: Motion to approve, request public comment, roll call City Council Packet June 24, 2008 84 CONSENT AGENDA #4 4B. Action to schedule a special City Council Meeting for July 24th with the Hospital Board. City Council Packet June 24, 2008 85 Presentations/Reports/Special Requests: 5. INVITATION FOR A CITIZEN TO SCHEDULE TIME ON THE COUNCIL AGENDA FOR AN ISSUE NOT LISTED. At this time, any member of the public may request time on the agenda for an item not listed. Items are typically scheduled for the end of the meeting; however, very brief announcements or invitations will be allowed at this time. 6. SDSU REPORT. City Council Packet June 24, 2008 86 Presentations/Reports/Special Requests: 7. Mayoral Proclamations: Mayor Scott Munsterman has made the following Mayoral Proclamations in the month of June: ** Enclosed for information purposes – no presentations are scheduled at the meeting. City Council Packet June 24, 2008 87 Ordinances – 1st Readings ** ** No vote is taken on the first reading of ordinances. The title of the ordinance is read and the date for the public hearing is announced. 8. Ordinance No. 29-08: Ordinance amending Article II of Chapter 38 of the Code of Ordinances of the City of Brookings and pertaining to Flood Damage Prevention. Public Hearing: July 8, 2008 Proposal: Update certain standards for the special flood hazard areas within the city Background: The original flood damage prevention regulations were adopted by the city in 1978 based on the Flood Insurance Study done at that time. Over the years minor changes in terminology were implemented and recodification resulted in some formatting changes. Specifics: These revisions are taken from Paragraph 60.3(d) of the National Flood Insurance Program regulations. They have been modified slightly to exceed the federal minimums by requiring certain construction to be elevated to one foot or more above the base flood elevation. The city also implemented the stricter regulations in 1978. The amendments also reference the new dates for the Flood Insurance Study and accompanying maps that are part of this ordinance. City Council Packet June 24, 2008 88 Ordinance No. 29-08 An ordinance amending Article II of Chapter 38 of the Code of Ordinances of the City of Brookings and pertaining to Flood Damage Prevention Be it ordained by the governing body of the City of Brookings, South Dakota: that Article II of Chapter 38 of the Code of Ordinances shall be amended as follows: Sec. 38-31. Definitions Administrator means the Federal Insurance Administrator. Sec. 38-38. Basis for establishing the areas of special flood hazard. The areas of special flood hazard are identified by the Federal Emergency Management Agency in a scientific and engineering report entitled, "The Flood Insurance Study for Brookings County, the City of Brookings, South Dakota and incorporated areas," dated July 16, 2008 April 1978, with the an accompanying flood insurance rate maps (FIRM). This study and accompanying maps are is adopted by reference and declared to be a part of this article. The flood insurance study and FIRM are on file at the city engineer's office, 311 Third Avenue, Brookings, South Dakota. (Code 1996, § 15-7) Section 38-82. Specific Standards A. When the Administrator has provided a notice of final flood elevations for one or more special flood hazard areas on the community’s FIRM and, if appropriate, has designated other special flood hazard areas without base flood elevations on the community’s FIRM, but has not identified a regulatory floodway or coastal high hazard area, the community shall: (1) Require the standards of Section 60.3(b) of the current NFIP regulations (44 CFR Parts 59- 78) within all A1-30 zones, AE zones, A zones, AH zones, and AO zones, on the community’s FIRM; (2) Require that all new construction and substantial improvements of residential structures within Zones A1-30, AE, and AH zones on the community’s FIRM have the lowest floor (including basement) elevated to one foot or more above the base flood level, unless the community is granted an exception by the Administrator for the allowance of basements in accordance with section 60.6(b) or (c) of the current NFIP regulations (44 CFR Parts 59-78); (3) Require that all new construction and substantial improvements of nonresidential structures within Zones A1-30, AE, and AH zones on the community’s firm (i) have the lowest floor (including basement) elevated to one foot or more above the base flood level, or (ii) together with attendant utility and sanitary facilities, be designed so that below the base flood level the structure is watertight with walls substantially impermeable to the passage of water and with structural components having the capability of resisting hydrostatic and hydrodynamic loads and effects of buoyancy; (4) Provide that where a non-residential structure is intended to be made watertight below the base flood level, (i) a registered professional engineer of architect shall develop and/or review structural design, specifications, and plans for the construction, and shall certify that the design and methods of construction are in accordance with accepted standards of practice for meeting the City Council Packet June 24, 2008 89 applicable provisions of A. (3)(ii) or A. (8)(ii) of this section, and (ii) a record of such certificates which includes the specific elevation (in relation to mean sea level) to which such structures are floodproofed shall be maintained for public inspection and furnished upon request, for the determination of applicable flood insurance risk premium rates within all areas having special flood hazards identified on a FHBM or FIRM, any certificates of floodproofing, and information on the elevation (in relation to mean sea level) of the level of the lowest floor (including basement) of all new or substantially improved structures, and include whether or not such structures contain a basement, and if the structure has been floodproofed, the elevation (in relation to mean sea level) to which the structure was floodproofed; (5) Require, for all new construction and substantial improvements, that fully enclosed areas below the lowest floor that are usable solely for parking of vehicles, building access or storage in an area other than a basement and which are subject to flooding shall be designed to automatically equalize hydrostatic flood forces on exterior walls by allowing for the entry and exit of floodwaters. Designs for meeting this requirement must either be certified by a registered professional engineer or architect or meet or exceed the following minimum criteria: A minimum of two openings having a total net area of not less than one square inch for every square foot of enclosed area subject to flooding shall be provided. The bottom of all openings shall be no higher than one foot above grade. Openings may be equipped with screens, louvers, valves, or other coverings or devices provided that they permit the automatic entry and exit of floodwaters. (6) Require that manufactured homes that are placed or substantially improved within Zones A1-30, AH, and AE on the community’s FIRM on sites (i) Outside of a manufactured home park or subdivision, (ii) In a new manufactured home park of subdivision, (iii) In an expansion to an existing manufactured home park or subdivision, or (iv) In an existing manufactured home park or subdivision on which a manufactured home has incurred “substantial damage” as the result of a flood, be elevated on a permanent foundation such that the lowest floor of the manufactured home is elevated to or above the base flood elevation and be securely anchored to an adequately anchored foundation system to resist floatation collapse and lateral movement. (7) Require within any AO zone on the community’s FIRM that all new construction and substantial improvements of residential structures have the lowest floor (including basement) elevated above the highest adjacent grade at least as high as the depth number specified in feet on the community’s FIRM (at lease two feet if no depth number is specified); (8) Require within any AO zone on the community’s FIRM that all new construction and substantial improvements of nonresidential improvements of nonresidential structures (i) have the lowest floor (including basement) elevated above the highest adjacent grade at least as high as the depth number specified in feet on the community’s FIRM (at least two feet if no depth number is specified), or (ii) together with attendant utility and sanitary facilities be completely floodproofed to that level to meet the flood proofing standard specified in A. (3)(ii); (9) Require within any A99 zones on a community’s FIRM the standards of Section 60.3(a)(1) through (a)(4)(i) and (b)(5) through (b)(9) of the current NFIP regulations (44 CFR parts 59-78). (10) Require until a regulatory floodway is designated, that no new construction, substantial improvements, or other development (including fill) shall be permitted within Zones A1-30 and AE on the community’s FIRM, unless it is demonstrated that the cumulative effect of the proposed development, when combined with all other existing and anticipated development, will not increase the water surface elevation of the base flood more than one foot at any point within the community. (11) Require within Zones AH and AO, adequate drainage paths around structures on slopes, to guide floodwaters around and away from proposed structures. City Council Packet June 24, 2008 90 (12) Require that manufactured homes to be placed or substantially improved on sites in an existing manufactured home park or subdivision within Zones A1-30, AH, and AE on the community’s FIRM that are not subject to the provisions of section A. (6) be elevated so that either (i) The lowest floor of the manufactured home is at or above the base flood elevation, or (ii) The manufactured home chassis is supported by reinforced piers or other foundation elements of at least equivalent strength that are no less than 36 inches in height above grade and be securely anchored to an adequately anchored foundation system to resist floatation, collapse, and lateral movement. (13) Notwithstanding any other provisions of Section 38-82, a community may approve certain development in Zones A1-30, AE, and AH, on the community’s FIRM which increase the water surface elevation of the base flood by more than one foot, provided that the community first applies for a conditional FIRM revision, fulfills the requirements for such a revision as established under the provisions of §65.12 of the current NFIP regulations (44 CFR parts 59-78), and receives the approval of the Administrator. (14) Require that recreational vehicles placed on sites within Zones A1-30, AH, and AE on the community’s FIRM either (i) Be on the site for fewer than 180 consecutive days, (ii) Be fully licensed and ready for highway use, or (iii) Meet the permit requirements of section 60.3(b)(1) of the current NFIP regulations (44 CFR parts 59-78) and the elevation and anchoring requirements for “manufactured homes” in A. (6). A. Recreational vehicle is ready for highway use if it is on its wheels or jacking system, is attached to the site only by quick disconnect type utilities and security devices, and has no permanently attached additions. B. When the Administrator has provided a notice of final base flood elevations within Zones A1-30 and/or AE on the community’s FIRM and, if appropriate, has designated AO zones, AH zones, A99 zones, and A zones on the community’s FIRM, and has provided data from which the community shall designate its regulatory floodway, the community shall: (1) Meet the requirements of A. (1) through A. (14); (2) Select and adopt a regulatory floodway based on the principle that the area chosen for the regulatory floodway must be designed to carry the waters of the base flood, without increasing the water surface elevation of that flood more than one foot at any point; (3) Prohibit encroachments, including fill, new construction, substantial improvements, and other development within the adopted regulatory floodway unless it has been demonstrated through hydrologic and hydraulic analyses performed in accordance with standard engineering practice that the proposed encroachment would not result in any increase in flood levels within the community during the occurrence of the base flood discharge; (4) Notwithstanding any other provisions of section 38-82, a community may permit encroachments within the adopted regulatory floodway that would result in an increase in base flood elevations, provided that the community first applies for a conditional FIRM and floodway revision, fulfills the requirements for such revisions as established under the provisions of §65.12 of the current NFIP regulations (44 CFR Parts 59-78) and receives the approval of the Administrator. Any or all ordinances in conflict herewith are hereby repealed. City Council Packet June 24, 2008 91 FIRST READING: June 24, 2008 SECOND READING: PUBLISHED: CITY OF BROOKINGS, SD ________________________________ Scott D. Munsterman, Mayor ATTEST: ___________________________ Shari Thornes, City Clerk City Council Packet June 24, 2008 92 Ordinances – 2nd Readings / Public Hearings: 9. Ordinance No. 28-08: Budget Amendment - An Ordinance Entitled “An Ordinance Authorizing A Supplemental Appropriation To The 2008 Budget For The Purpose Of Providing For Additional Funds For The Operation Of The City. Action: Motion to approve, Request Public Comment, Roll Call City Manager Recommendation – Approve The budget amendment to fund the Traffic Model Study per the joint agreement recognizes the expense and the revenue from Brookings County and East Brookings Business and Industry Association. The increase of $25,885 within the Fire department’s expense line for capital purchases is because a grant was receipted in November of 2007 for equipment delivered in January of 2008. The additional $645,217 budget amendment for the Downtown Streetscape Project per resolution 30-08 is funded by the following transfers: • Transfer from Liquor Reserve $107,722 • Transfer from Landfill Collections $100,000 • Transfer from 2nd Penny Reserves $100,000 • Transfer from General Fund CIP Reserves $300,000 • Transfer from BMU $ 37,495 The budget amendment for $189,215 for the purchase of land for future Airport needs and development is being funded by a transfer from the 75% Sales and Use Tax Fund. The miscellaneous amendments to line items within individual departments create neither an increase nor decrease over all. City Council Packet June 24, 2008 93 Ordinance No. 28-08 An Ordinance Entitled “An Ordinance Authorizing A Supplemental Appropriation To The 2008 Budget For The Purpose Of Providing For Additional Funds For The Operation Of The City. BE IT ORDAINED BY THE CITY OF BROOKINGS, SOUTH DAKOTA: WHEREAS, the City Council passed a motion on February 26, 2008 agreeing to pay 50% of the cost for a joint traffic model study, AND WHEREAS, the City Council passed resolution 11-08, declaring the necessity for a street assessment project, called 2008-03STI Downtown Streetscape Project, AND WHEREAS, the Fire Department received a donation in 2007 for the purchase of equipment, AND WHEREAS, there has been residential development requiring additional fire hydrants be installed, AND WHEREAS, the Council passed resolution 44-08, authorizing the execution of real estate purchase for the purpose of preparing for potential airport needs and further development, AND WHEREAS STATE LAW (SDCL 9-21-7) AND THE CITY CHARTER (4.06 (a) permit supplemental appropriations provided there are sufficient funds and revenues available to pay the appropriation when it becomes due, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL that the City Manager be authorized to make the following budget adjustments to the 2008 budget: Budget Amendment #2 Revenue Expense Non-Departmental $75,267 $375,267 Administrative $ 2,000 Public Works ($ 1,981) Public Safety $ 25,342 Culture & Recreation $ 2,052 $ 2,576 Total General Fund $77,319 $403,204 25% Sales & Use Tax $ 19,767 75% Sales & Use Tax $189,215 Streetscape Project $645,217 $645,217 Airport $189,215 $189,215 Liquor Fund $107,722 Solid Waste Collection $ 8,000 $ 8,000 Solid Waste Disposal $125,000 $125,000 City Council Packet June 24, 2008 94 This Ordinance is declared to be for the support of the municipal government and its existing public institutions and it shall be in full force and effect after its passage and publication. ALL ORDINANCES or parts of Ordinances in conflict herewith are hereby repealed. FIRST READING: June 10, 2008 SECOND READING: June 24, 2008 PUBLISHED: June 27, 2008 CITY OF BROOKINGS _________________________ Scott D. Munsterman, Mayor ATTEST ____________________________ Shari Thornes, City Clerk City Council Packet June 24, 2008 97 Ordinances – 2nd Readings / Public Hearings: 10. Public hearing and action on Resolution No. 47-08, Determining the Necessity of Repairing or Installing Sidewalks in the City of Brookings at the Expense of Abutting Property Owners, 2008-01SWR Sidewalk Repair Project. Action: Open & Close Public Hearing, Motion to approve, Roll Call City Manager Recommendation: Approve Project 2008-01SWR entails the replacement of sidewalks that are severely damaged or constitute a tripping hazard. All landowners on the included list were notified last fall that their sidewalk needed repair. Each landowner had the option to replace their own sidewalk by June 1, 2008 or to be added to the City replacement project. The owners on the enclosed list include landowners who volunteered to be on the city project, landowners who had not replaced their sidewalk by the deadline, and landowners who did not respond to the fall mailing asking for their option of repair. Each landowner was mailed a copy of the resolution and the notice of public hearing by receipt certified mail as required by state law. The property owners included in the project are: Name Sidewalk Location Erin J. Stahlecker 104 5th Street Thomas W. Steffensen 127 6th Avenue S. Western Estates INC. c/o Dave Grayson 146 & 150 3rd Ave. S. Erica Derycke 161 2nd Avenue S. Harrison C. Thompson 162 2nd Avenue S. Darnall Rentals LLC. 203 5th Street Jackie Telkamp 209 5th Street East Central Mental Health & Chemical Dependency Center 211 4th Street Gary W. Jensen 224 Main Avenue S. James D. Roden 301 Main Avenue Kenneth S. Knudson 303 Medary Ave. Robert Peterson 317 4th Street Anya Hartpence 323 2nd Avenue Kelsey M. Grimlie 414 5th Avenue S. Douglas R. Buller 417 Medary Ave. Jeffery E. Fisher 502 6th Avenue Brookings Monument Co. 507 Main Avenue S. Laurie I. Carruthers 510 9th Avenue Thomas R. Shaffer 511 9th Avenue City Council Packet June 24, 2008 98 Name Sidewalk Location Scott L. Lamp 623 2nd Street Kelly J. Tilmon 709 3rd Street Marvin Reihe 710 6th Avenue S. Jeffrey T. Rief 715 3rd Street Clinton & Sadie Bortnem 721 3rd Street Clinton & Sadie Bortnem 803 3rd Street Rosemary T. Heilman 809 4th Street Richard Grebel 813 4th Street Mary Wolpert 815 3rd Street Diane M. Kosbau 824 5th Street Carl Kline 825 4th Street Larry J. Hoium 908 5th Street Thomas O. Manzer 929 4th Street Den-Wil Investment Inc. 1010 Forest St. After the sidewalk repairs are made, the City will levy the assessment and bill the property owners for the repairs. The approval of this resolution will authorize the City to proceed with the sidewalk replacement assessment project. City Council Packet June 24, 2008 99 Proposed Resolution No. 47-08 Resolution Determining the Necessity Of Repairing Or Installing Sidewalks in the City Of Brookings At The Expense Of Abutting Property Owners 2008-01SWR Sidewalk Repair Project BE IT RESOLVED by the City Council of the City of Brookings, South Dakota, as follows: 1. It is hereby determined that sidewalk repairs or installation is necessary abutting the parcels and lots of land in the City described in the Notice to Property Owners attached to this Resolution and marked as 2008-01SWR Sidewalk Repair Project. 2. Such sidewalks shall be to the width and of the materials prescribed by Section 605 “Sidewalks” and Section 701.3-16 of Ordinance No. 532 entitled “An Ordinance Providing Rules, Regulations and Standards to Guide Land Sub-division in the City of Brookings and Within Three Miles of the City Limits Thereof” and to the grade and in accordance with the Plans and Specifications prepared in the office of the City Engineer. 3. The City Clerk has caused a copy of the Resolution and a Notice to Property Owners to be mailed to each property owner by certified mail. Passed and approved this 24th day of June 2008. CITY OF BROOKINGS Scott D. Munsterman, Mayor ATTEST: Shari Thornes, City Clerk NOTICE TO PROPERTY OWNERS NOTICE IS HEREBY GIVEN to the owners of the property described in the foregoing proposed resolution that the City Council will meet in the Council Chambers, City Hall, Brookings, South Dakota, on Tuesday, June 24th, 2008 at 6:00 o’clock PM, for the consideration of the adoption of said resolution. At said time and place, the City Council will consider any objections to the proposed resolution by owners of property liable to be assessed for improvement. Shari Thornes, City Clerk City Council Packet June 24, 2008 100 Other Business. 11. Action on Resolution No. 50-08, Resolution authorizing Change Order #2 (CCO#2) for 2008-03STI Downtown Streetscape Project. Action: Motion to approve, Request Public Comment, Roll Call City Manager Recommendation – Approve The 2008-03STI Downtown Streetscape Project entails construction work on Main Avenue from 6th Street to Front Street, which includes new water and sanitary sewer mains and services, new sidewalk, light poles, trees, curb & gutter, pavement and other streetscape amenities. Brookings City staff has proposed changes to the Winter Brothers Underground contract to deduct several items, which are: • Bid Item A9 (Construction Staking and Control) • Bid Item A10 (Testing & Inspection Services) • Bid Item B10 (Remove Storefront Awning) • Bid Item C7 (Bicycle Bollard) The City has contracted with CDI for the construction staking and control, and the City has also contracted with a testing firm to perform the testing and inspection services. By removing these items from the streetscape contract, the city will be able to direct these services when they feel they are required. The Bid Item B10 is being deducted because the store owner has already removed the storefront awning. Bid Item C7 is being deducted from the contract; however, the City is looking at a different type of bollard with a slight redesign. The new bike bollards will be bid separately and installed by City park staff with an anticipated cost savings. In summary, Item B10 (Storefront Awning) is a savings to the project. The Bid Items A9 (Construction Staking and Control), Bid Item A10 (Testing & Inspection Services), and Bid Item C7 (Bicycle Bollard) will still be paid for out of the streetscape budget, however the payments will not be made under the Winter Brothers Underground contract. This change order will approve the deduct items and adjust the Winter Brothers Underground contract for a total decrease of $50,200.00. City Council Packet June 24, 2008 101 Resolution No. 50-08 A Resolution Authorizing Change Order #2 (CCO#2) For 2008-03STI Downtown Streetscape Project Winter Brothers Underground, Inc., Sioux Falls, South Dakota BE IT RESOLVED by the City Council that the following change order be allowed for 2008-03SSI, Downtown Streetscape Project: Construction Change Order Number 2: Adjust estimated the bid contract to omit the following bid items at the appropriate bid prices for a total decrease of $50,200.00 to the contract: • Bid Item A9 (Construction Staking and Control) • Bid Item A10 (Testing & Inspection Services) • Bid Item B10 (Remove Storefront Awning) • Bid Item C7 (Bicycle Bollard) Passed and approved this 24th day of June 2008. CITY OF BROOKINGS _________________________ Scott D. Munsterman, Mayor ATTEST: ____________________________ Shari Thornes, City Clerk City Council Packet June 24, 2008 102 Other Business. 12. Action on Resolution No. 48-08, a resolution to annex approximately 7 acres of land into the City of Brookings (Outlot A in the NE ¼ of the NW ¼ of Section 3-T109N- R50W). Action: Motion to approve, Request Public Comment, Roll Call City Manager Recommendation – Approve Applicant: Dorothy E. Nelson Proposal: Annex approximately seven (7) acres of land into the City of Brookings Background: This outlot was platted in 1966. The outlot slopes dramatically to the west and eventually reaches an elevation that matches the east edge of the Big Sioux River Floodplain. There are currently two (2) primary structures on the acreage. A single-family home exists on the east side and a building that was used as a retail business for approximately 23 years it toward the west side. Adjacent uses include the Nelson Addition to the north. This is a nine (9) lot subdivision zoned for single-family homes. The lots range in size from two (2) to five (5) acres. There is also a newer residence that was constructed just south of Outlot A in the mid to late 1990s. The owners of this residence own the surrounding farmland to the south and west. Valley View Second Addition, a future subdivision on the City of Brookings, is adjacent to Outlot A on the east side. This land was annexed into the city in 2006. Specifics: A primary objective of our Vision 2020 Annexation Plan was to create a more compact and efficient development pattern. The trick is to pursue that objective while maintaining an adequate supply of land. The City has annexed about 280 residential acres since 2000. About the same number of residential acres has been developed during that time period. The parcel meets the test for annexation since it is abutting the current city limits along its entire east side. The land is outside the anticipated development area of the Vision 2020 Plan but is within the estimated maximum build out in this location. Recommendation: The Planning Commission voted 5 yes and 0 no to recommend approval of the annexation. State Law reference City Council Packet June 24, 2008 103 9-4-1. Annexation of territory on petition by voters and landowners. The governing body of a municipality, upon receipt of a written petition describing the boundaries of any territory contiguous to that municipality sought to be annexed to that municipality, may by resolution include such territory or any part thereof within such municipality if the petition is signed by not less than three-fourths of the registered voters and by the owners of not less than three- fourths of the value of the territory sought to be annexed to the municipality. For purposes of this section, "contiguous" includes territory separated from the municipality by reason of intervening ownership of land used as a golf course or any land owned by the State of South Dakota or any subdivisions thereof. City Council Packet June 24, 2008 104 Prepared by: Brookings City Clerk’s Office PO Box 270 Brookings, SD 57006 RESOLUTION NO. 48-08 ANNEXATION WHEREAS, The City of Brookings is authorized pursuant to South Dakota Codified Law 9-4- 1 to annex contiguous territory upon receipt of a written petition, describing said territory sought to be annexed, signed by not less than three-fourths (3/4) of the legal voters and by the owner or owners of not less than three-fourths (3/4) of the value of said territory, and WHEREAS, The City of Brookings desires to annex the following described property, to wit: Outlot A in the NE ¼ of the NW ¼ of Section 3-T109N-R50W WHEREAS, The aforesaid land is contiguous to the present boundaries of the City of Brookings, and WHEREAS The City of Brookings has received a Petition For Annexation of Territory signed by the owners of greater than three-fourths (3/4) of the value of the aforesaid property and there being no legal voters residing in said territory, now therefore, BE IT RESOLVED By the City of Brookings, South Dakota, that the property described above is hereby annexed to the City of Brookings. Dated this 24th day of June, 2008. CITY OF BROOKINGS ___________________________ ATTEST: Scott D. Munsterman, Mayor ________________________ Shari Thornes, City Clerk City Council Packet June 24, 2008 107 Planning Commission Brookings, South Dakota June 3, 2008 OFFICIAL MINUTES Chairperson Greg Fargen called the regular meeting of the City Planning Commission to order on June 3, 2008 at 7:00 PM in the Council Chamber at City Hall. Members present were David Kurtz, Al Gregg, Al Heuton, Mike Cameron, and Fargen. Curt Ness, Larry Fjeldos, John Gustafson, Stacey Howlett were absent. Also present were Mike McClemans, David Nelson, James Weiss, Toby Morris, Keith Rounds, Scott Hodges, City Manager Jeff Weldon, City Engineer Jackie Lanning, City Planner Dan Hanson, and others. Item #5 – Dorothy E. Nelson has submitted a petition to annex Outlot A in the NE ¼ of the NW ¼ of Section 3-T109N-R50W. (Cameron/Kurtz) Motion to approve. All present voted aye. MOTION CARRIED. SUMMARY OF DISCUSSION Item #5 – David Nelson, son of the owner, stated that his mother wanted to annex the acreage and divide it among the family. He commented that the short term plan was to possibly add another housing unit to the parcel. There was sanitary sewer to the west that could serve any new development. Cameron noted that the land was within the designated developable area. Nelson added that the floodplain was just to the west of his mother’s land. City Council Packet June 24, 2008 108 Other Business. 13. Action on Resolution No. 49-08, a resolution to annex approximately 12 acres into the city of Brookings (the west 390 feet of the east 1,040 feet of the SE ¼ of the NW ¼ of Section 1-T109N-R50W). Action: Motion to approve, Request Public Comment, Roll Call City Manager Recommendation – Approve Applicant: Robert E. Fishback, Trustee Proposal: Annex approximately 12 acres into the City of Brookings Background: This parcel of land was part of the soccer complex acreage. The City initially purchased a 1,600 foot wide strip of land from the petitioner. At one point, it was thought that this land could be reserved for future soccer park expansion. However, that plan changed. Specifics: This land is abutting a developing subdivision on the east. Land to the south will remain undeveloped since the elevation drops to an area that is frequently inundated with stormwater runoff. Recommendation: The Planning Commission voted 5 yes and 0 no to recommend approval of the annexation. State Law reference 9-4-1. Annexation of territory on petition by voters and landowners. The governing body of a municipality, upon receipt of a written petition describing the boundaries of any territory contiguous to that municipality sought to be annexed to that municipality, may by resolution include such territory or any part thereof within such municipality if the petition is signed by not less than three-fourths of the registered voters and by the owners of not less than three- fourths of the value of the territory sought to be annexed to the municipality. For purposes of this section, "contiguous" includes territory separated from the municipality by reason of intervening ownership of land used as a golf course or any land owned by the State of South Dakota or any subdivisions thereof. City Council Packet June 24, 2008 109 Prepared by: Brookings City Clerk’s Office PO Box 270 Brookings, SD 57006 RESOLUTION NO. 49-08 ANNEXATION WHEREAS, The City of Brookings is authorized pursuant to South Dakota Codified Law 9-4- 1 to annex contiguous territory upon receipt of a written petition, describing said territory sought to be annexed, signed by not less than three-fourths (3/4) of the legal voters and by the owner or owners of not less than three-fourths (3/4) of the value of said territory, and WHEREAS, The City of Brookings desires to annex the following described property, to wit: The west 390 feet of the east 1,040 feet of the SE ¼ of the NW ¼ of Section 1-T109N-R50W WHEREAS, The aforesaid land is contiguous to the present boundaries of the City of Brookings, and WHEREAS The City of Brookings has received a Petition For Annexation of Territory signed by the owners of greater than three-fourths (3/4) of the value of the aforesaid property and there being no legal voters residing in said territory, now therefore, BE IT RESOLVED By the City of Brookings, South Dakota, that the property described above is hereby annexed to the City of Brookings. Dated this 24th day of June, 2008. CITY OF BROOKINGS ___________________________ ATTEST: Scott D. Munsterman, Mayor ________________________ Shari Thornes, City Clerk City Council Packet June 24, 2008 112 Planning Commission Brookings, South Dakota June 3, 2008 OFFICIAL MINUTES Chairperson Greg Fargen called the regular meeting of the City Planning Commission to order on June 3, 2008 at 7:00 PM in the Council Chamber at City Hall. Members present were David Kurtz, Al Gregg, Al Heuton, Mike Cameron, and Fargen. Curt Ness, Larry Fjeldos, John Gustafson, Stacey Howlett were absent. Also present were Mike McClemans, David Nelson, James Weiss, Toby Morris, Keith Rounds, Scott Hodges, City Manager Jeff Weldon, City Engineer Jackie Lanning, City Planner Dan Hanson, and others. Item #4 – Robert E. Fishback, Trustee has submitted a petition to annex the west 390 feet of the east 1,040 feet of the SE ¼ of the NW ¼ of Section 1-T109N-R50W. (Heuton/Cameron) Motion to approve. Gregg, Heuton, Cameron, and Kurtz voted aye. Fargen abstained. MOTION CARRIED. SUMMARY OF DISCUSSION Item #4 – Hanson stated that the acreage was bordered on three sides by city limits. Cameron asked about the elevation of the land. Hanson replied that the land was developable but was adjacent to low land that would remain undeveloped. City Council Packet June 24, 2008 113 14. Adjourn.