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HomeMy WebLinkAboutNone - 1995-06-19Council/Agency Meeting Held: — G &/ — Deferred/Continued to: - ❑ Approved X Conditionally Approved El Denied 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). 7a�A (�� 'w`c.awm i o b� Y,-rn at 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 l 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. moo, lip �P ce o Pa PACIFIC COAST HIGHWAY a 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?