HomeMy WebLinkAboutCOUSTEAU OCEAN CENTER, INC - 1985-11-18December 20, 1985
Charles Vinick, Vice -President
930 W. 21st Street
Norfolk, VA 23517
Enclosed is a duly executed copy of the Consultant Agreement between
the City of Huntington Beach and the Cousteau Ocean Center, Inc. for
the preparation of a Preliminary Feasibility Study For the Development
of a Cousteau Center.
Said agreement was approved by the City Council of the City of Huntington
Beach at its regular meeting of December 2, 1985.
Alicia M. Wentworth
City Clerk
AMW:CB:js
Enclosure
cc: Wayne Lee - Finance
Doug La Belle - Redevelopment
;Telephone: 714-536-5227 )
CONSULTANT AGREEMENT BETWEEN THE CITY OF"
���HUNTINGTON BEACH AND COUSTEAU OCEAN CENTER, INC.
FOR THE PREPARATION OF A PRELIMINARY FEASIBILITY STUDY
FOR THE DEVELOPMENT OF A COUSTEAU CENTER
THIS AGREEMENT, is made and entered into this az "`,— day
of _ 19ay by and between the CITY OF
HUNTINGTON BEACH, hereinafter referred to as "CITY," and
COUSTEAU OCEAN CENTER, INC., here"nafter referred to as
"CONSULTANT."
WHEREAS, THE CITY desires to engage the services of a
consultant to supervise and administer and conduct a preliminary
study of the economic and financial performance considerations
for a Cousteau Center for the City of Huntington Beach; and
CONSULTANT has been selected to perform said services,
NOW, THEREFORE, it is agreed by CITY and CONSULTANT as
1. WORK STATEMENT.
CONSULTANT agrees to supervise and administer the
program set forth herein by the City for conducting a
preliminary feasibility study for the City. The Consultant
shall perform such wctlti. as identified in Exhibit A of this
Agreement.
CONSULTANT hereby designates Charles Vinick, who shall
represent it and be its primary contact and agent in all
consultations with the CITY during the performance of this
Agreement.
2. AGENCY STAFF ASSISTANCE_
THE CITY shall assign a staff coordinator to work
directly with CONSULTANT in the prosecution of this Agreement.
3. TIME OF PERFORMANCE.
Timp '.s of the essence of this Agreement. The services
of the CONSULTANT are to commence as soon as practicable after
the execution of this Agreement and all tasks shall be completed
in ninety (90) days from the date of this Agreement, unless
agreed otherwise by the parties. These times may be extended
with the written permission of the CITY. Consultant shall
perform all services to be performed in a timely manner as
directed by the CITY'S staff coordinator.
4. COMPENSATION.
In consideration of the performance of the services
described in Section 1 above, the CITY agrees to pay CONSULTANT
a maximum fee in the amount of Nineteen Thousand, Nine Hundred
Fifty Dollars ($19,950.00).
5. METHOD OF PAYMENT.
The CONSULTANT shall submit to the AGENCY an invoice
for each payment due. Such invoice shall:
1) Reference this Agreement;
2) Describe the services performed;
3) Show the total amount of the payment _e;
4) Include a certification by a principal member
of the CONSULTANT'S firm that the work has been
performed in accordance with the provisions of
this Agreement.
2.
Upon submission of any such invoice, if the CITY
is satisfied that CONSULTANT is making satisfactory progress
toward completion of tasks in accordance with this Agreement,
the CITY shall promptly approve the invoice, in which event
payment shall be made within thirty (30) days of receipt of the
invoice by the CITY. Such approval shall not be unreasonably
withheld. If the CITY does not approve an invoice, the CITY
shall notify CONSULTANT in writing of the reasons for
non -approval, within seven (7) calendar days of receipt of the
invoice, and the schedule of performance shall be suspended
until the parties agree that past performance by CONSULTANT is
in, or has been brought into compliance, or until this Agreement
is terminated pursuant to Section 12 hereof.
6. DISPOSITION OF DOCUMENTS,
CONSULTANT agrees that five (5) copies of written
report shall be turned over to the city upon termination of this
agreement or upon completion of services; whichever occurs first.
During the Time of Performance, as described in #(3 above, and
upon termination for whatever reason of this agreement, any
materials produced by Consultant or its subcontractor(s) which
r'?lates to city and its Pnvirons, shall be the sole property of
the city. During the Time of Performance and upon termination,
for whatever reason, of this agreement, any .,aterials which
pertain in name or in nature to Cousteau (hereinafter referred
to as "Cousteau materials"), shall be the propercy of Cousteau
Ocean Center, Inc.
3.
Dfi
City -related materials may be used by city within the context of
the development of a Cousteau Center in Huntington Beach. Other
uses of Cousteau Materials by city shall be conditioned upon
prior written approval of Cousteau Ocean Center, Inc., and such
consent shall not be unreasonable withheld. Consultant shall be
entitled to retain copies of all data prepared hereunder.
7. INDEMNIFICATION, DEFENSE, HOLD HARMLESS,
CONSULTANT hereby aqrees to defend, indemnify and hold
harmless the CITY, its officers, agents and employees, from and
against any and all liability, damages, costs, losses, claims
and expenses, however caused, resulting directly or indirectly
from or connected with CONSULTANT'S performance of this
Agreement (including, but not limited to such liability, costs,
damage, loss, claim, or expense arising from the death or injury
to an agent or employee of CONSULTANT, subcontractor, if any, or
CITY, or the property of any agent or employee of CONSULTANT,
subcontractor, if any or CITY), regardless of the passive or
active negligence of CITY, except where such liability, damages,
costs, losses, claims or expenses are caused by the sole
negligence or willful misconduct of. the CITY or any of i`.,s
agents or employees including negligent omissions or commissions
of the CITY, its agents or employees, in connection with
the general supervis-on or direction of the work to be performed
hereunder.
8. W ORKER'S COMPENSATION.
CONSULTANT shall comply with all the provisions of the
Workers' Compensation Insurance and Safety Acts of the State of
o
FCalifornia, the applicable provisions of Divis .o,, ? 4�id 5 of the
California Labor Code and all amendments thereto, and !all
similar state or federal acts or law applicable; ar;d shall
indemnify, defend and hold harmless the CITY from and
all claims, demand. oayments, suits, actions, proceedings and
judgments of every nature and description, including att.orney's
fees and costs presented, brought or recovered against the CITY,
for or on account of any liability under any of said acts which
may be incurred by reason of any work to be performed by
CONSULTANT under this Agreement.
9. INDEPENDENT CONTRACTOR.
CONSULTANT is;, and shall be, acting at all times in the
performance of this Agreement as an independent contractor.
CONSULTANT shall secure at its expense, and be responsible for
any and all payments of all taxes, social security, state
disability insurance compensation, unemployment compensation and
other payroll deductions for CONSULTANT and its officers, agents
and employees and all business licenses, if any, in connection
with the services to be performed hereunder.
10. TERMINATION OF AGREEMENT.
All work required hereunder shall be performed in a
good workmanlike manner. The CITY may terminate CONSULTANT'S
5.
+;<
services hereunder at any time with or without cause, and
whether or not PROJECT is fully completed. Any termination of
this Agreement by the CITY shall be made in writing through the
City Administrator, notice of which shall be delivered to
CONSULTANT as provided in Section 16 herein.
11. ASSIGNMENT AND SUBCONTRACTING.
This Agreement is a personal service contract and,
except as otherwise provided herein, the supervisory work
hereunder shall not be delegated by CONSULTANT to any other
per;or_ or entity without the consent of the CITY. It is
understood that Cousteau Ocean Center, Inc., will subcontract a
portion of this study to The Lyon Group.
12. COPYRIGHTS/PATENTS
Neither CONSULTANT nor CITY shall apply for a patent or
copyright on any item or material produced as a result of this
Agreement, as setforth in 41 CFR 1-9-1.
13. AGENCY EMPLOYEES AND OFFICIALS.
CONSULTANT shall employ no CITY official nor any
regular CITY employee in the work performed pursuant to this
Agreement. In accordance with California Government Code
Sections 1090 et seq., but subjecit to the exceptions therein set
forth, no CITY official or employee shall be financially
interested in nor derive any financial benefit, either directly
or indirectly, from this Agreement.
la. NOTICES.
Any notices or special instructions required to be
given in writing under this Agreement shall be given either by
personal delivery to CONSULTANT'S Principal (as designated in
Section 1 hereinabove) or to the CITY'S staff coordinator, as
the situation shall warrant, or by enclosing the same in a
sealed envelope, postage prepaid, and depositing the same in the
United States Postal Services, addressed as follows:
TO CITY:
Mr. Mike Adams
Principal Redevelopment Planner
2000 Main Street
Huntington Beach, CA 92648
15. ENTIRETY.
TO CONSULTANT:
Mr. Charles Vinick
Cousteau Ocean Center, Inc.
9301,iest 21st Street
Norfolk, Virginia 23517
The foregoing, and Exhibit "A," attached hereto,
setforth the entire Agreement. between the parties.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by and through their authorized
officers the day, month and year first above written.
CONSULTANT: CITY OF HUNTINGTON BEACH
J /
Cousteau Ocean Center, Inc -.-
By. Charles Vinick
Name
Vice -Pies :dent
Title
ATTEST:
ALI'C A M. "ENT ORTH, CITY CLERK
Deputy"lity Clerk
7.
r1
APPROVED AS TO FORM..
ri Ey 1t rney n
APPROVED:
Cl y dmin s rator
MA:lp
0420H
S.
I Zvelopment
E"D AND APPROVED:
eCity Administrator/
Re
q 1
REQUEST FW REDEVELOPMENTOGENCY ACTION
Submitted to:
RH 85-61
Date November 22, 1985
Honorable Chairman and Redevelopment Agency N
Charles W. Thompson, Chief Executive Officer C
Submitted by:
Douglas N. LaBelle, Deputy City Administrator/R
Prepared by:
Subject:
CONTRACT FOR PRELIMINARY FEASIBILITY S1
CENTER
Consistent with Council Policy? K Yes ( j New Policy or.Exception
Statement of Issue. Recommendation, Analysis, Fundinq Source, Alternative Actions, Attachments:
STATEMENT OF ISSUE: `
Transmitted for the Agency's consideration is a request by staff for authorization to
contract with Cousteau Ocean Center, Inc., for the preparation of a preliminary study
of the economic and financial performance considerations for a Cousteau entertaining
education facility within the Main -Pier Redevelopment Project Area.
RECOMMENDATION;
Approve the execution of a contract with Cousteau Ocean Center, Inc., to conduct a
preliminary feasibility studv, commencing on or about December 1, 1985, and concluding
90 days later in an amount not to exceed $19,950.
ANALYSIS:
At the City Council meeting of November 18, 1985, the Council authorized the
preparation of a contract with Cousteau Ocean Centers, Inc., for a preliminary
feasibility study for a Cousteau Center.
The intent of this study is to build an economic model of a Cousteau facility for the
city. The study will begin with the assumption that a facility of this type will be
operationally self supporting. A copy of this contract, including the scope of wort: to be
performed by a subconsultant (The Lyon Group) to the Cousteau Ocean Center, has been
attached for your review. The study can be concluded within a 90-day period. The
total cost for this study will be $19,950, inclusive of consultant services, reimbursable
expenses, and all direct costs incurred by the Cousteau Society/Cousteau Ocean
:Centers, Inc.
This effort will be the first step towards fulfilling planning goals and objectives, as
outlined in the tylain-Pier Redevelopment Plan, and the study will be a useful tool in
attracting other commercial ventures to the downtown area. The study will analyze a
number of concerns and issues common to the many types of development, and will
become an important document in helping to determine project viability. Therefore,
the study will have a usefulness beyond the analysis of this proposal, and will be worth
the investment of city time, resources, and money to accomplish the task.
fi_ H 85-61
November 22, 1985
Page Two
FUNDING SOURCE:
1. The city's General Fund.
2. The staff L- also exploring possible full or partial reimbursement from the
Huntington Pacifica Development Group; however, staff is requesting authorization
to proceed with the study and not delay action on this issue until the reimbursement
issue is resolved.
ALTERNATIVE ACTION:
1. Deny authorization of the study atthis time.
ATTACHMENTS:
1. RCA prepared for the November 18, 1985 meeting.
2. Consultant Agreement
CW T/DLB/,MA:lp
1594h
REQUE': " REDEVELOPMENTOGENCY ACTION
R H 85-61
Date November 7, 1985
Honorable Chairman and Redevelopment Agency Members
Submitted to: n
Charles W. Thompson, Chief Executive Officer Uk
Submitted by:
Douglas N. La Belie, Deputy City Administrator/Redevelopmen
Prepared by:
PRELIMINARY FEASIBILITY STUDY FOR A COUSTEAU ENTERTAINJN�Q JQ {7
Subject: EDUCATIONAL FACILITY DPP
Consistent with Council Policy? kf Yes [ J New Policy or Exception q-` �JA c r 1
Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments:
STATEMENT OF ISSUE:
Transmitted for the Agency's consideration is a request by staff for authorization to
contract with Cousteau Ocean Center, Inc., for the preparation of a preliminary study
of the economic and financial performance considerations for a Cousteau entertaining
education facility within the Main -Pier Redevelopment Project Area.
RECOMMENDATION:
Authorize the preparation of a contractual agreement with Cousteau Ocean Center,
Inc., to conduct a preliminary feasibility study, commencing on or about December 1,
1985, and concluding 90 days later in an amount not to exceed $19,950.
ANALYSIS:
Over the past several months the city staff has been meeting with representatives of
the Cousteau Society to discuss the possibility of establishing Huntington Beach as one
of the select locations worldwide for a Cousteau Ocean Center. Presently, there are
two centers - one in Paris and the other in Norfolk, Virginia. The Paris facility is an
$18,000,000 project which attracts 1,000,000 visitors a year. The Norfolk facility is a
$20,000,000 project which anticipates attracting 650,000 visitors a year. Within the
next ten years, the Society plans to open seven to ten facilities throughout the world.
Each facility will have a unique approach to educating and entertaining the public with
respect to the ocean environment; therefore, each center will have a different design
and site requirements. The basic concept for each center is to provide activities for a
1 1/2 - 2 hour length of stay. Typically, these facilities include a theater, meeting
rooms, gift shop, and possibly a restaurant or other food concession. These features can
be accommodated within a 75,000 - 100,000 square foot structure.
The objective of the Cousteau Society is to develc°,p a facility which will reach the most
people; therefore, site selection is extremely important. The Society is discussing this
type of proposal with people in San Diego and the County of Orange for the Dana Point
Marina site, in addition to, Huntington Beach.
W)
The intent of this study is to build an economic model of a Cousteau facility for the
city. The study will begin with the assumption that a facility of this type will be
operationally self supporting. An outline of the scope of work to be performed by a
subconsultant (The Lyon Group) to t,tie Cousteau Ocean Center has been attached for
your review. The study can be concluded within a 90-day period, commencing on
December 1, 1985, upon approval. The total cost for this study will be $19,950, inclusive
of consultant services, reimbursable expenses, and all direct costs incurred by the
Cousteau Society/Cousteau Ocean Centers, Inc.
Staff is recommending authorization of this study for a number of reasons. The primary
reason is the opportunity to establish an internationally recognizable, year-round
attraction in the Main -Pier Redevelopment Project Area. This facility will fulfill an
established objective of the city's Downtown Specific Plan and Main -Pier
Redevelopment Plan. The type of visitors that will be attracted to a Cousteau Ocean
Center will also be attracted to the new commercial facilities the city is planning in
the downtown area. The building oz a strong, year-round visitor base, coupled with a
continued seasonal popularity can only help to make these new commercial ventures
successful.
In addition to being the first step towards fulfilling planning goals and objectives, the
study will be a useful tool in attracting other commercial ventures to the downtown
area. The study will analyze a number of concerns and issues common to the many
types of development, and will become an important document in helping to determine
project viability. Therefore, the study will have a usefulness beyond the analysis of this
proposal, and will be worth the investment of city time, resources, and money to
accomplish the task.
FUNDING SOURCE:
1. The city's General Fund.
2. The staff is also exploring possible full or partial reimbursement from the
Huntington Pacifica Development Group; however, staff is requesting authorization
to proceed with the study and not delay action on this issue until the reimbursement
issue is resolved.
ALTERNATIVE ACTION:
1. Deny authorization of the study at this time.
ATTACHMENTS:
1. Letter from Cousteau Ocean Centers, Inc.
2. Fiscal Impact Statement,
CW T/DLB/ M A:lp
lausteaucase [enter, Inc,
Mr. Qiarles ti. 'Thompson
City Administrator
City of Huntington Beach
2000 Main Street
P.O. Box. 190
Huntington Beach, CA 92648
Dear Charles:
As we discussed in our meeting in Huntington Beach on October 21, we
are most interested in fully exploring with you all possibilities for a
Cousteau presence in Huntington Beach. As we discussed, our first step
is to conduct a preliminary study of the economic and financial
performance considerations for a Cousteau entertaining educational
facility. In this study tie will primarily be looking at the marker -
support for such a facility, while making a number of hypothetical
assumptions about the size, scope and content of the facility.
Zb conduct work of this nature, The Cousteau Scciety, three years
ago created a not -for -profit affiliate organi7.ation, Cousteau Ocean
Center, Inc.. This study will be conducte�' by COC, Inc. (as we- call
it) and the market study and economic analysis will be subcontracted
to The Lyon Group of Pacific Palisades, California.
Our intent, as described in the attached papers, is to build an
economic model of a Cousteau facility for the site you have recommended.
Our own goals are such that The Cousteau Society would be interested
in developing and operating a public educational attraction on this
site which would offer an entertaining and educational experience.
To make it self-supporting, an admission fee would be charged.
Captain Cousteau's approach to education has always been to convey
important concepts through fun and entertaining techniques. For
example, while we have by no means developed a program for a Huntington
Beach facility, I think we all foresee the possibility of a facility
that would provide some balance of exhibit experiences, film
experiences and educational prograns for both children and adults. Wb
are also assuming that Huntington Peach will be b,.st served by a
facility that is operationally self-supporting, and our economic model
will be based on that assumption.
We anticipate that the study can be concluded within the 90-day period
December 1, 1985 - February 28, 1986. The final report will be a
viability analysis of a Cousteau Center on the ocean front site.
This report can then lay the groundwork for a later bankable feasiblity
study and full conceptual work.
Cousteau Ocean Center, Inc. 930 West 21st Street Norfolk Virginia 23517 (804) 627-1144 Telex 825420 Cousteau NFK
Mr. Charles W. Thompson
Letter of agreement
Page two
The fee requirement for this study is $19,950.00, including consultant
services, reimbursable exr-enses and all direct costs incurred by The
Cousteau Society/Cousteau Ocean Center, Inc.. The payment schedule
for the proposed study is one-third on signature of this letter,
one-third after 45 days, and the final one-third on submission of the
final report.
As you know, our objective is to participate in the development of a
facility which will reach the most people. To that end, we have had
discussions with you, officials of Orange County, and a number of
private citizens in San Diego. We have been offered the opportunity
to do viability studies for both Huntington Beach and Orange County,
and in order to ascertain which location has the best long-range
potential for reaching people, we plan to conduct both studies. We
think the data collected will help all of us decide tDw to proceed.
Should you have any reservations about this approach,, please do not
hesitate too discuss them with me.
If you agree and this letter serves as an appropriate contract
document, please add a signature block for the contracting agent and
return one original copy to me. If other contracting docunents are
needed, please let us know.
With bet 11 egards,
C arles Vinick
Vice President
�x��tttt -Ae
THE LYON GROUP
1000 Bienver, ,,da Avenue, Pacific Palisades. CA 90272 • Tel: (2131459-8808 • Facs: (213) 820-2045 • Telex: 4720127
October 25, 1985
Cousteau Ocean Center, Inc.
930 West 21st Street
Norfolk, VA 23517
Attn: Mr. Charles Vinick
Vice President _ --
Re: Huntington Beach Cousteau Center
Ref: Lyon Proposal No, A-04
A PROPOSAL FOR VIABILITY
The Lyon Group is pleased to offer to the Cousteau Ocean
Center, Inc. (COC) this proposal to examine the viability of
a Cousteau educational/entertainment facility at Huntington
Beach, California.
SCOPE: OF WORK
The basic research. objectives of this assignment are: to
evaluate the economic/financial feasibility of the proposed
development, to discuss the proper development concept; to
delineate the relevant economic planning parameters and to
establish the proper balance among the key factors of market
support, attendance potential, revenue potential, concept
components, physical capacity and capital investment.
The scope of work will entail conducting: (1) a market
support znalysis for a Cousteau indoor educational/
entertainment center with a hypothetical, length of stay
objective and (2) preliminary estimate of economic and
financial performance of it. If found to be viable, at a
later date The Lyon Group is prepared to propose on
conducting a full feasibility analysis of a proposed concept
of a Cousteau facility at Huntington Beach.
October 25, 1985
Cousteau Ocean Center, Inc.
Page two
Specific research objectives include:.*
1. Assessment of over
.,all market support from resident
and tourist markets, including detailed attendance
projections from each market.
2. Analysis of visitor expenditure patterns and revenue
potentials.
3. Discussion of options for an appropriate concept for
the proposed facility. Selection of the option for
further study.
4. Determination of an optimum scope of development in
terms of physical size and initial investment.
5. Development of physical planning guidelines that are
consistent with the concept.
6. Assessment of financial viability in terms of
revenues, operating costs, operating profit, and
capital investment requirements.
Task 1. Market and Site Location Analysis
In this task of the study, the attendance potential of the
proposed center will be analyzed and site locational
ch^racteristics will be evaluated. The following efforts
w 11 be performed:
1. Delineation and size of local and regional resident
and non-resident tourist markets. The purpose of
this effort will be to delineate the magnitude,
spatial placement and income characteristics of the
resident market (i.e., the market potential
consisting of residents within appropriate transport
time bands surrounding the proposed site location).
Also, -the magnitude and characteristics of the
tourist market attracted to the area will be
analyzed.
/
October 25, 1985
Cousteau Ocean Center, Inc.
Page three
2. Demographic factors affecting potential attendance of
the resident market such as family income,
occupation, age distribution, family composition,
recreation spending, automobile ownership, and so
forth, will be r-eviewed, to the extent they are
readily available.
3. Tourist data, includ?ng total number of tourists,
origin, seasonality, purpose of visit, average length
of stay, tourist expenditure patterns, and reliance
on organized tours. We are particularly interested
in ascertaining the extent and seasonality of tourism
to the area, as well as the tourism flow between San
Diego and orange and Los Angeles counties.
4. Complementary, nature and attendance characteristics
and trends of public and private cultural,
historical, and entertainment facilities.
5. Environmental factors affecting potential attendance
such as current and projected access routes and
traffic volumes, the role of public transportation to
the site, and climatic conditions.
5. Review operating characteristics of competitive
attractions in the area.
7. Attendance estimates will be based on probable
penetration range of local, regional and tourist
markets based on the experience at similar
attractions, adjusted to reflect local market
considerations and probable entertainment scope of
the proposed attraction.
8. To the extent necessary, review site suitability and
alternate locations within the immediate area.
October 25, 1985
Cousteau Ocean Center, Inc.
Page four
Task 2. Visitor Expenditure Patterns and Revenue Potential
This effoft will focus on overall visitor expenditure
patterns and revenue potential including:
1. Projection of total per capita visitor expenditure.
2. Delineation of total per capita expenditures into
expenditures on:
o Admissions
• Entertainment Activities
• rood and Leverage Expenditures
• Merchandise Purchases and Miscellaneous
Expenditures.
3. Projection of total revenue potential, based on per
capita visitor expenditures and total attendance
potential.
Task 3. Phvsical Plannina Parameters and Generalized
Conceptual Content
This effort will focus on translating the economic factors
developed in the first two efforts into specific physical
planning parameters.
Specific effort will focus on the following:
1. Delineation of design --day attendance.
2. Derivation of peak in -facility attendance.
3. Discussion on conceptual content of the proposed.
project, based upon total indicated market support,
total revenue potential to support various conceptual
formats, seasonal distribution of attendance and
consequent peaking parameters.
October 25, 1985
Cousteau Ocean Center, Inc.
Page five
4. Projection of specific facilities requirements in
terms of hourly units of entertainment capacity,
sizing for seasonal activity zones, number of seats
required for food service facilities, square feet of
merchandise space, and floor area requirements for
both facilities and parking.
Task 4. Preliminary indication of Feasibility
Taking the results of the market support study for a
hypothetical length -of -stay attraction, The Lyon Group will
utilize its experience to the mass attractions field to
produce a memorandum report which puts forth a preliminary
indication of -feasibility for the Cousteau facility. The
memorandum report will cover the following topics:
o attendance potential
o visitor spending and revenue potentials
o economically -driven physical planning needs of the
attraction warranted investment for the facility,
based on financing assumptions.
The financial viability analysis will discuss the estimated
revenue, operating expense, cost of goods sold, resultant
operating profit. Amortizable and required investment levels
will be discussed.
At the conclusion of this assignment, five ( 5 ) copies of a
memorandum report in will be submitted setting forth research
findings and conclusions.
QUALIFICATIONS
The qualifications statement of The Lyon Group is provided by
the accompanying description.
The Lyon Group Looks _forward to being of service to you and
is appreciative of the opportunity to submit this proposal.
Respectfully submitted,
THE LYYON GROUP
Richard K. Lyo
President
mum
THE LYON GROUP
1000 Bienveneda Avenue, Pacific Palisades, CA 90272 • Tel: (213) 459-8808 • Facs: (213) 820-2045 • Telex: 4720127
October 25, 1985
Cousteau Ocean Center, Inc.
930 West 21st Street
Norfolk, VA 23517
Attn: Mr. Charles Vinick
Vice President
Re: Huntington Beach Cousteau Center
Ref: Lyon Proposal No. A-04
A PROPOSAL FOR VIABILITY
The Lyon Group is pleased to offer to the Cousteau Ocean
Center, Inc. (COC) this proposal to examine the viability of
a Cousteau educational/entertainment facility at Huntington
Beach, California.
SCOPE OF WORK
The basic research objectives of this assignment are: to
evaluate the economic/financial feasibility of the proposed
development, to discuss the proper development concept; to
delineate the relevant economic planning parameters and to
establish the proper balance among the key factors of market
support, attendance potential, revenue potential, concept
components, physical capacity and capital investment.
The scope of work will entail conducting: (1) a market
support analysis for a Cousteau indoor educational/
entertainment center with a hypothetical length of stay
objective and (2) preliminary estimate of economic and
financial performance of it. If found to be viable, at a
later date The Lyon Group is prepared to propose on
conducting a full feasibility analysis of a proposed concept
of a Cousteau facility at Huntington Beach.
October 25, 1985
Co::steau Ocean Center, Inc.
Page two
Specific research objectives include:
1. Assessment of overall market support from resident
and tourist markets, including detailed attendance
projections from each mar.•ket.
2. Analysis of visitor expenditure patterns and revenue
potentials.
3. Discussion of option; for an appropriate concept for
the proposed facility. Selection of the option for
further study.
4. Determination of an optimum scope of development in
terms of physical size and initial investment.
5. Development of physical planning guidelines that are
consistent with the concept.
6. Assessment of financial viability in terms of
revenues, operating costs, operating profit, and
capital investment requirements.
Task 1. Market and Site Location Analysis
In this task of the study, the attendance potential of the
proposed center will be analyzed and site locational
characteristics will be evaluated. The following efforts
will be performed:
1. Delineation and size of local and regional resident
and non-resident tourist markets. The purpose of
this effort will be to delineate the magnitude,
spatial placement and income characteristics of tie
resident market (i.e., the market potential
consisting of residents within appropriate transport
time bands surrounding the proposed site location).
Also, the magnitude and characteristics of the
tourist market attracted to the area will be
analyzed.
M
October 25, 1985
Cousteau Ocean Center, Inc.
Page three _.
2. Demographic factors affecting potential attendance of
the resident market such as family income,
occupation, age distribution, family composition,
recreation spending, automobile ownership, and so
forth, will be reviewed, to the extent they are
readily available.
3. Tourist data, including total number of tourists,
origin, seasonality, purpose of visit, average length
of stay, tourist expenditure patterns, and reliance
on organized tours. We are particularly interested
in ascertaining the extent and seasonality .)f tourism
to the area, as well as the tourism flow between San
Diego and Orange and Los Angeles counties.
4. Complementary nature and attendance characteristics
and trends of public and private cultural,
historical, and entertainment facilities.
5. Environmental facto.-s affecting potential attendance
such as current and projected access routes and
traffic volumes, the role of public transportation to
the site, and climatic conditions.
6. Review operating characteristics of competitive
attractions in the area.
7. Attendance estimates will be based cin probable
penetration range of local, regional and tourist
markets based on the experience at similar
attractions, adjusted to reflect local market
considerations and probable entertainment scope of
the proposed attraction.
B. To the extent necessary, review site suitability and
alternate locations within the immediate area.
E,
October 25, 1985
Cousteau Ocean Center, Inc.
Page four
Task 2. Visitor Expenditure Patterns and Revenue Potential
This effort will focus on overall visitor expenditure
patterns and revenue potential including:
1. Projection of total per capita visitor expenditure.
2. Delineation of total per capita expenditures into
expenditures on:
o Admissions
o Entertainment Activities
o Food and Beverage Expenditures
o Merchandise Purchases and Miscellaneous
Expenditures.
3. Projection of total revenue potential, based on per
capita visitor expenditures and total attendance
potential.
Task 3. Phvsical Planning Parameters and Generalized
Conceptual Content
This effort will focus on translating the economic factors
developed in the first two efforts into specific physical
planning parameters.
Specific effort will focus on the following:
1. Delineation of design -day attendance.
2. Derivation of peak in -facility attendance.
3. Discussion on conceptual content of the proposed
project, based upon total indicated market support,
total revenue potential to support various conceptual
formats, seasonal distribution of attendance and
consequent peaking parameters.
October 25, 1985
Cousteau Ocean Center, Inc.
Page five
4. Projection of specific facilities requirements in
terms of hourly units of entertainment capacity,
sizing for seasonal activity zones, number of seats
required for food se -:vice facilities, square feet of
merchandise space, and floor area requirements for
both facilities and parking.
Task 4. Preliminary Indication of Feasibility
Taking the results of the market support study for a
hypothetical length -of -stay attraction, The Lyon Group will
utilize its experience to the mass attractions field to
produce a memorandum report which puts forth a preliminary
indication of -feasibility for the Cousteau facility. The
memorandum report_ will cover the following topics:
o attendance potential
o visitor spending and revenue potentials
o economically -driven physical planning needs of the
attraction warranted investment for the facility,
based on financing assumptions.
The financial viability analysis will discuss the estimated
revenue, operating expense, cost of goods sold, resultant
operating profit. Amortizable and required investment levels
will be discussed.
At the conclusion of this assignment, five (5) copies of a
memorandum report in will be submitted setting forth research
findings and conclusions.
QUALIFICATIONS
The qualifications statement of The Lyon Group is provided by
the accompanying description.
The Lyon Group looks forward to being of service to you and
is appreciative of the opportunity to submit this proposal.
Respectfully submitted,
THE LYON GROUP
Richard K. Lyo
President
It
THE LYON GROUP
1000 Bienveneda Avenue, Padrfic Palisades, CA 90272 • Tel: (213) 459-8808 • Pacs: (?.13) 820-2045 • Telex: 4720127
EXPERIENCE OF THE PROFESSIONALS OF THE FIRM
CORPORATE BACKGROUND
The Lyon Group is a California corporation, providing economic
consulting services to individual entrepreneurs, partnerships,,.
corporations and government agencies. The principal services'
offered are:
o Market Research o Financial Analysis
o Economic Programming o Management Consulting
o Economic Feasibility Analysis
The firm offers services which span a wide range of land --use
possibilities, including recreational facilities, mass attend-
ance attractions, office buildings, mixed -use developments,
retail centers„ restaurants, hotels and industrial parks.
SELECTED EXPERIENCE
The following listing represents ex-Derience of the professionals
who are presently active with The Lyon Group. The listing is
provided through a combination of project, client -and/or
affiliate name.
Private Developer/Owner/Operator
o Anton, John (New Brighton Theme Park/Specialty Center)
o Ames, John (Cruise Ship Feasibility St-ody)
a Bass Leisure, U.K. (!Movie Theater Industry Overview)
o Berwick, Ray (Therm Park Consultin%)
o Claremont Packing Co. (Specialty Center)
o The Cousteau Society (Ocean Centers)
o Les Editions Albert Rene (Asterix Theme Park, Paris)
o Goldstein, Nandor (Mallorca Theme Park Overview)
o Jamjoom Family (Jamjoom Office/Retail Center, S. Arabia)
o LIOF, Netherlands (Gardens of the World Theme Park)
o NBC (Studio Tour)
o Ocean Park, Hong Kong (Economic Master Plan)
EXPERIENCE OF THE PROFESSIONALS OF THE FIRM
PAGE TWO
Private Developer/Owner/Operator (Cont'd)
o Pea Soup Andersen's Restaurants (Feasibility Study)
o Pinewood Studios, U.K. (Studio Tour)
o Roberts, Xavier (Destination Resort)
o Romm Doulton Organisation, U.K. (Dickens' London)
o San Diego Zoological Society (Strategy Planning)
o SFERG, France (Asterix Theme Park)
o Shannon Development, Ireland (Bunratty Castle)
o Six Flags, Inc. (Autoworld Theme Park)
o Tennessee Valley Railroad & Museum (Expansion Study)
o Touristic Enterprises Co., Kuwait (Management Consulting)
Consulting Affiliates
o Aotani & Associates (Hawaii Ocean Center)
o BIOS: Inc. (Scripps Aquarium & O.I.C.)
o Economic Planning Group of Canada (Cruise Ship Study)
o EDAW (Micke Grove Zoo)
o Gruen Associates (Jamjoom Center)
o Guthrie Slusarenko Leeb (Washington Park Zoo)
a Jung/Brannen (Mosul Amusement and Water Park, Iraq)
o Liebhardt Weston and Associates (Aquatic Mammals Habitat)
o Management Resources (Cousteau Ocean Center)
o Mariposa (Cousteau Ocean Center)
o McMahon Jones Ray (Trade Mart)
o PRC Engineering (Riverside Int'1 Raceway Relocation)
o R. Duell & Associates (Asterix Theme Park, Paris)
o Reardon Associates (Michigan Tourism)
o VTN (Ajman Recreational Center)
o Wm. Bieberbach & Associates (Trade Mart)
Governmental Entity
o Charleston, S.C., City (Marine Science Museum)
a Coldwater, City (Nat'l Motor. Sports Hall of Fame)
o Dade County (Metro Zoo)
• Grand Haven, City (Cruise Ship)
o Kuwait, Min. of 2ublic Works (Entertainment City)
o Los Angeles, Dept. of Airports (Economic Impact)
o Milwaukee, County (Milwaukee County Zoo)
o Niles, City (Fort St. Joseph Historical Park)
o Panama, Government (Containerport Study)
o Panama Canal Study (Canal Activity Forecast)
o Phoenix,. City (Airport Lana Use)
o Portland, Port (Community Economic Impact)
o Santa Barbara, City (Airport Land Use Study)
o Santa Clara, City (Great America Theme Park)
o Seoul Metropolitan Government (Seoul Grand Park)
o Smithsonian Institution (National Zoological Park)
nyy,
M _®
HUNTINGTON. 8EACH
To CHARLES W. THOMPSON
City Administrator
Subject APPROPRIATION FOR CITY LOAN
TO REDEVELOPMENT AGENCY FOR
FEASIBILITY STUDY
F.I.S. #86-13
From ROBERT J. FRANZ, Chief
Administrative Services
Date NOVEMBER 8, 1985
As requested under the authority of Resolution of 4832, a Fiscal Impact Report has been
prepared and submitted relative to the proposed loan by the City to the Redevelopment
Agency for purposes of conducting a preliminary feasibility study for a COUSTEAU
entertaining educational facility within the Main -Pier Redevelopment Project Area.
Anticipations by the requesting entity are that an appropriation of $19,950 would be
adequate for this project.
An affirmative response by the City Council would reduce the balance of the City's
unaudited General. Fund to $2,694,164.
Administrative Services Dep
RJF:skd
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