HomeMy WebLinkAboutNone - 1995-06-19Council/Agency Meeting Held: — G &/ —
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Q-
ity Clerk's Signat e
Council Meeting Date: 6/19/95
Department ID Number: CS 95-021
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrator�--,--C11—
PREPARED BY: RON HAGAN, Director, Community Services
SUBJECT: QUALIFICATION PROCESS FOR DEVELOPER/OPERATOR OF
NEW PIERSIDE RESTAURANT (formerly Maxwell's by the Sea)
Statement of Issue, Funding Source, Recommended Action, Alternative Action, Analysis, Environ ent I Status, Attachment(s).
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Statement of Issue: There is a need to approve a process for acquiring a qualified -�
developer/operator for the pierside restaurant site, formerly known as Maxwell's by the Sea.
Fundinq Source: Not applicable
Recommended Action:
1. Approve the selection process as outlined herein for a developer/operator for the
pierside restaurant, formerly known as Maxwell's by the Sea, and authorize staff to
solicit Requests for Qualification (attached); and
2. Appoint two Council members to serve on a subcommittee with staff to review
qualifications and interview finalists for the pierside restaurant operation.
Alternative Action(s): Do not solicit Requests for Qualification and direct staff to solicit
Requests for Proposal, and contact potential developer/operators individually for personal
interviews.
Analysis: The city has terminated its lease with WPL Industries, Inc. for Maxwell's by the
Sea restaurant. Prior to the construction of Pier Plaza, the city needs to select a developer
/operator to rebuild and operate a restaurant on the Maxwell's site. Council has previously
approved the perimeters of the lease site including the lease footprint, maximum size of the
building, and general architectural style.
Staff believes that now is the time to begin the selection process for the eventual developer
/operator of the restaurant site. The proposal process is the only way for the city to actually
determine what square footage is needed by the restaurant developer/operator in order to
meet the service needs, previously adopted Council goals, and the minimum income to
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REQUEST FOR COUNCIL ACTION
MEETING DATE: 6/19/95 DEPARTMENT ID NUMBER: CS 95-021
the city necessary to pay for the Pier Plaza improvements. The proposal process does not
bind the city to actually doing a project. Consequently, staff is recommending that this
process proceed and that it be in two phases.
The first phase would be soliciting Requests for Qualification. Staff has received numerous
inquiries regarding subject site from real estate brokers, speculator/developers, investment
groups, and restaurant operators. Council has indicated to staff that it wishes to have a
developer /operator with (1) significant experience in the operation of a seaside restaurant
facility with dinner house, lounge and entertainment area, outdoor dining, and banquet
seating; (2) a long term commitment to the community; and, (3) the financial ability to
develop and operate a successful pierside restaurant.
After the Requests for Qualification are analyzed, staff would select the two to three most
qualified developer/operators and invite them to submit proposals based on the approved
entitlements and the conceptual terms and conditions Council has previously given to staff
which are that the city will fund and build Pier Plaza and the restaurant developer/operator
will fund, build, furnish, and operate the restaurant. Under this scenario, the city would enter
into a long term ground lease that would provide for a minimum monthly rent or a percentage
of gross revenues which would increase over a period of years.
In the second phase, staff is requesting that Council appoint two Council liaisons to work
with the Directors of Community Services and Administrative Services to review qualifica-
tions and conduct personal interviews with the applicants. Once the final applicant is cho-
sen, the committee will negotiate and have the City Attorney's Office prepare a proposed
lease for Council approval. This process is expected to take a minimum of six months. It
should coincide with the completion of the plans, specifications, and bid package for the Pier
Plaza. Thereafter, while the city is in the process of bidding and awarding the Pier Plaza
package, the restaurant developer/operator would submit their plans and specifications for
plan check. If approved, the city and the new developer/operator would begin construction
on their respective portions of the project.
Staff feels the above described process is the fairest way to secure the most qualified appli-
cant to fund, develop, and operate the pierside restaurant site. An alternative method would
be to solicit Requests for Proposal and interview all applicants individually. This method
would be extremely time consuming and costly.
Environmental Status: Coastal Development Permit has been approved.
Attachment(s):
Request for Qualification
0012154.01 -2- 05/31/95 4:22 PM
_ IIIIIIIIIII
REQUEST FOR QUALIFICATIONS
THE CITY OF HUNTINGTON BEACH
INVITES SUBMITTALS OF
QUALIFICATIONS FOR THE
DEVELOPMENT AND OPERATION OF
THE RESTAURANT SITE FORMERLY
KNOWN AS MAXWELL'S BY THE SEA
City Council
Mayor Victor Leipzig
Vice Mayor Dave Sullivan
Peter Green Shirley Dettloff Ralph Bauer Tom Harmon
Dave Garofalo
City Administrator Michael Uberuaga
AREA
■ The City of Huntington Beach is soliciting Requests for
Qualification for the development and operation of a full
service dinner house, banquet, lounge and entertainment
restaurant at the foot of the Huntington Beach Pier
located at 317 Pacific Coast Highway, Surf City,
Huntington Beach, CA.
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PACIFIC COAST HIGHWAY
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PACIFIC OCEAN
RFQ'S must be submitted by:
July 28, 1995 at 5:00 PM
To: Ron Hagan
Director Community Services
2000 Main Street.
Huntington Beach, CA 92648,
HUNTINGTON BEACH, CA
■ LOCATION: Southern California coast, 18 miles
southeast of the nearest seaport terminal at Long Beach,
35 miles southeast of Los Angeles and 90 miles
northwest of San Diego.
■ AREA: Land - 28 square miles, Water - 26 square miles.
■ CLIMATE: A mediterranean climate that is sunny and
warm.
■ POPULATION:190,000+
■ GOVERNMENT: Incorporated February 17, 1909, with a
population of 915. Huntington Beach is a charter city
administered by a Council/Administrator.
■ EDUCATION: 35 elementary schools and five high
schools; Golden West College and nearby Orange Coast
College; University of California Irvine, and State
Universities at Fullerton and Long Beach.
■ CHURCHES: All leading denominations are represented.
■ LIBRARY: A world -class Library and Cultural Resource
Center located in the 300-acre Central Park, with four
branch libraries.
■ CULTURE: Variety of cultural opportunities throughout
Orange County. New H.B. Art Center downtown, 350-seat
community theatre at Central Library, and H.B. School
District's School of Performing Arts. .
FACTS & FIGURES K
(Cont.)
■ RECREATION: 56 parks and 8 1/2 miles of beach with a
wide variety of recreational opportunities in the county
area.
■ CIVIC CENTER: The city has a modern civic center and
hosts a state of the art police and fire facilities.
■ TRANSPORTATION: Easy freeway access to L.A.
International Airport, John Wayne Orange County Airport,
Long Beach Airport, bus service, and rail freight service.
■ UTILITIES: Southern California Edison Company,
Southern California Gas Company, Municipal Water
Department, GTE
■ INDUSTRY: Space systems, public utility, petroleum,
manufacturing, data and computer research, precision
instruments.
■ NEWSPAPERS: Orange County Register, Los Angeles
Times, The Local News, Huntington Beach Independent,
and the Huntington Beach News.
■ RADIO: KWIZ, Orange County (Santa Ana), KEZY, Orange
County (Anaheim).
■ TELEVISION: HBTV3 (municipal government channel),
Channel 50 (Golden West College), Paragon Cable, Los
Angeles, and Orange County commercial stations.
THE PROCESS
■ The city will select a developer/operator through a two -
phased process. The City Council wishes to have a
developer/operator with significant experience in the
operation of a seaside restaurant facility with full service
dinner house, lounge, entertainment, outdoor dining, and
banquet seating. The Council is also interested in a firm
that will make a long-term commitment to the community
and that has the financial ability to develop and operate a
successful pierside restaurant.
■ After the RFQs are analyzed, city staff will select the most
qualified applicants and invite them to submit a detailed
proposal based on the approved city entitlements and the
conceptual terms and conditions that the Council has
previously adopted. After the submittal of these
proposals, staff and a council subcommittee will conduct
personal interviews with the perspective concessionaires
to make a final selection. Once the final applicant is
chosen, city staff will negotiate and, with the City
Attorney's Office, prepare a long-term lease for Council
approval.
■ The final decision on terms and conditions will be made
by the City Council, Council has previously set the
parameters for this project. The general concept is that
the city will fund and build Pier Plaza. Pier Plaza is a $3.5
million improvement project at the foot of the .pier that
will provide parking for the restaurant and the necessary
infrastructure, i.e. , utility stubouts to the restaurant site.
■ The chosen restaurant developer/operator will then be
responsible for funding, building, furnishing, and oper-
ating the restaurant site. Minimum monthly rents or a
percentage of gross revenues will be negotiated in the
second phase. The city is currently in the process of
completing the plans, specifications, and bid package for
the Pier Plaza. The city would like to complete negotiat-
ions with its new concessionaire for the restaurant site by
fall, 1995, so that construction of both Pier Plaza and the
new restaurant can begin in late spring, 1996. The city
has obtained all entitlements and environmental approv-
als for the project. The city has also received architec-
tural approval so that if a potential applicant wishes to
change the architectural design, it would have to go
through the Design Review Board process.
■ For a tour of the site or questions, contact:
RON HAGAN, Director, Community Services
(714) 536-5486
REQ VEST FOR Q UALIFICATIONS
(Please answer all questions and attach any material you wish to be considered)
Name of Organization:
Mailing Address:
Phone:
FAX:
Type of Business: (Circle one) Corporation -
General Partnership - Limited Partnership - Sole Proprietor
Describe similar restaurants you own/ operate that are full
service theme restaurants and bar, with banquet facilities,
outdoor dinning, and which are located in a tourist
community. (Attach additional information)
Are any of the above described facilities a public/private
operation? Yes No
If yes, please describe the relationship:
Describe the economic success of the operations you listed in
terms of size, annual gross revenue, annual operating costs,
and net profit or loss.
Name Size Annual revenue Annual costs Net pro%itAoss
Describe the architectural design approach for both the
interior and exterior of your current operations.
(include pictures if you have them)
Describe your company's management setup, attach an
organization chart and resumes -of the principals.
Do you have the financial capability to raise equity to complete
this project? Yes No
Describe your relationship with major lenders or resources you
would use to build, furnish, and operate this restaurant.
How important is it to you to be established in Huntington
Beach and to becoming a Surf City, Huntington Beach premier
restaurant attraction?