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AUTHORIZATION TO ENTER INTO A CONCESSION PERMIT AGREEMENT WITH LAKEFRONT HOSPITALITY GROUP FOR THEATRE ON THE LAKE: RENOVATION AND YEAR-ROUND OPERATION OF THE RESTAURANT, THEATER AND EVENT SPACE
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To the Honorable Board of Commissioners of the Chicago Park District
I. Recommendation
Pursuant to Chapter IX of the Code of the Chicago Park District, it is recommended that the General Superintendent and CEO or his designee enter into a Concession Permit Agreement with Lakefront Hospitality Group for the renovation and year-round operation of the restaurant, theater and event space at Theater on the Lake. The concessionaire was selected pursuant to a publicly advertised Notice of Availability. No work may commence prior to the execution of a written Concession Permit Agreement.
II. Award Information
Concessionaire: Lakefront Hospitality Group
1058 West Albion Avenue
Chicago, Illinois 60626
Company Type: Illinois Corporation
Majority Interests: John Wrenn 50%
Margret Wrenn 50%
Concession Permit
Agreement Term: Ten (10) years with five (5) one (1) year extension options. Extension options are exercisable solely at the discretion of the Chicago Park District.
Scope of Services: Design, renovation, and year-round operation of restaurant, theater and event space at the Theater on the Lake building and the right to operate concessions within the following boundaries: east of Lake Shore Drive from Diversey south to and including the new parkland just south of Fullerton.
Affirmative
Action Goals: The concessionaire has committed to meeting the Chicago Park District’s Minority and Women Owned Business Enterprises goals of 25% MBE and 5% WBE participation for the renovation and concession operation.
Authorization: Authorize the General Counsel to include other relevant terms and conditions in the written Concession Permit Agreement. Authorize the General Superintendent to execute the Concession Permit Agreement and the Secretary to attest as to the signing of the Concession Permit Agreement and keep an original copy of the Concession Permit Agreement on file.
III. Business Terms
See Exhibit A
IV. Notice of Availability and Selection Process
Date Notice of Availability Advertised: December 18, 2015
Site Visit and Meeting: January 28, 2016
Application Due Date: March 31, 2016
Number of Applications Received: Three (3)
The Department of Revenue (“Revenue”) publicly advertised this Notice of Availability (“NOA”) which included a detailed description of the opportunity, language regarding some key terms and conditions (e.g. termination for convenience, assignment, prevailing wage, and MBE/WBE), description of Chicago Park District program expectations and the application itself. Regarding the application, applicants were instructed to submit: (i) a detailed description of their proposed restaurant, theater and event spaces; (ii) proposed business terms; (iii) a description of their experience; and (iv) the EDS and MBE/WBE documents.
The NOA was made available for download at the Chicago Park District’s home page, and Revenue also undertook efforts to announce the NOA including notifying the CPD’s current concessionaires and informing the Illinois Restaurant Association. Three applications were received by the due date and time, and Revenue found all of them to be responsive. Revenue then convened the Application Review Committee (“ARC”) which was initially comprised of CPD personnel and one individual from outside the CPD to evaluate the applications and make a recommendation. Each ARC member signed
Confidentiality Affidavits and Statements of Non-Conflict of Interest and then received the applications for their review.
The ARC first met to discuss the applications on April 6 and it was at this meeting that the ARC decided they would want to interview all three applicants. The ARC continued their discussions at another meeting on April 22 and afterwards Revenue learned that the non-CPD member on the ARC determined that it would be best to resign from the ARC. Since this person is with the Illinois Restaurant Association (“IRA”) and two applicants are members of the IRA, this person felt there was a conflict of interest. The resignation was accepted by Revenue and another CPD staff person who was a non-voting member of the ARC immediately took this person’s position on the ARC. The ARC continued their work and interviewed the applicants on April 25. The ARC met three times after interviews and it was at their May 13 meeting that they decided to request Best and Final Offers from all three applicants with a May 19 deadline to submit them. The Best and Final Offers were received by the deadline and they were forwarded to each ARC member. The ARC met again to discuss the Best and Final Offers on May 25, and the ARC concluded their evaluation process by unanimously recommending for award the highest scoring applicant, Lakefront Hospitality Group.
V. Explanation
The Chicago Park District (“CPD”) requires the services of a concessionaire for the design, renovation and year-round operation of the restaurant, theater and event space at Theater on the Lake in Lincoln Park on the shore of Lake Michigan at Fullerton Avenue.
Since 1953, the Chicago Park District has hosted annual summer theater productions at Theater on the Lake, and recently the area immediately adjacent to it was renovated, green space was created, the lakefront trail was relocated, and a vehicular turnaround was
also added. All of this work has made Theater on the Lake more accessible to the public and made it even more of a destination. With the completion of this work, it was a good opportunity to publicly advertise the Notice of Availability for a concessionaire to renovate the facility so that it would include the theater, event space, and year-round restaurant, targeting Memorial Day 2017 as the completion date and ready for operation.
The professionals at the helm of Lakefront Hospitality Group each have a minimum of 25 years of experience in Chicago’s flourishing hospitality industry. They have operated successful restaurant, bar and special event rental establishments in Chicago that include The Gage, Lizzie McNeil’s Irish Pub, Salvatore’s and Sully’s House. Sully’s House hosts over 200 events per year and has seen revenues grow by 30% each year in recent years. Another partner founded and manages Dillon Productions, Inc., a firm that specializes in high profile event management.
Lakefront Hospitality Group proposes a historically sensitive loft-like design aesthetic that will allow the original structure to maintain an open-air feeling while operable partitions provide flexibility to accommodate various sizes of events and performances. The theater space will host the Chicago Park District’s Theater on the Lake program as well as other performances. Two adjacent event spaces can be used as pre-function space and are also expected to attract weddings and other social occasion rentals. All spaces open to the lakefront terrace.
The proposed restaurant will feature casual and fine dining with American cuisine. Theater-goers will be offered a quick and convenient dinner option before the show, while lakefront trail users can grab a sandwich and beverage while stopping off for a break to take in the stunning skyline view from the south terrace.
Lakefront Hospitality Group has the experience, capability, and personnel necessary to renovate and operate the restaurant, theater and event space at Theater on the Lake. Therefore, it is in the best interest of the Chicago Park District to recommend Lakefront Hospitality Group for the award of the concession permit agreement for the design, renovation and operation of the restaurant, theater and event space at Theater on the Lake.
VI. General Conditions
1) Conflicts: The agreement shall not be legally binding on the Chicago Park District if entered into in violation of the provisions of 50 ILCS 105, the Public Officer Prohibited Activities Act.
2) Ethics: The Chicago Park District’s Ethics Code, Chapter III of the Code of the Chicago Park District, shall be incorporated into and made part of the agreement.
3) Contingent Liability: Any agreement lawfully entered into for a period of more than one year shall be executory only for the amounts for which the Chicago Park District may become liable in succeeding fiscal years pursuant to Section 17(i) of the Chicago Park District Act, 70 ILCS 1505/17(i). All agreements authorized herein shall contain a clause that any expenditure beyond the current fiscal year is subject to appropriation in the subsequent fiscal year budget.
4) Economic Disclosure Statement (“EDS”): Concessionaire has submitted a full and complete EDS.