Title
AUTHORIZATION TO ENTER INTO A CONTRACT WITH ASM GLOBAL, LLC FOR THE MANAGEMENT AND OPERATION OF THE GATELY PARK INDOOR TRACK AND FIELD FACILITY AND ADDAMS PARK RECREATION CENTER
SPECIFICATION P-19021
Body
To the Honorable Board of Commissioners of the Chicago Park District
I. Recommendation
It is recommended that the General Superintendent and CEO or his designee enter into a contract with ASM Global, LLC for the management and operation of the Gately Park Indoor Track and Field Facility and Addams Park Recreation Center. The contractor was selected pursuant to a publicly advertised Request for Proposals (“RFP”). No work may commence and no payment shall be made to vendor prior to the execution of a written agreement.
II. Award Information
Company: ASM Global, LLC
800 W Olympic Blvd, Suite 305
Los Angeles, CA 90015
Company Type: Limited Liability Company
Majority Interests: Onex SMG Holdings, LP 50%
AEG Venue Management Holdings, LLC 50%
Contract Term: Five (5) year initial contract term with five (5) one (1) year extension options.
Contract Amount: See Exhibit A.
Scope of Services: The management and operation of the Gately Park Indoor Track and Field Facility and Addams Park Recreation Center.
Affirmative
Action Goals: The Minority and Women Owned Business Enterprise participation for this contract include: 35% MBE and 7% WBE
Authorization: Authorize the General Counsel to include other relevant terms and conditions in the written Agreement. Authorize the General Superintendent to execute the Agreement and the Secretary to attest as to the signing of the Agreement and keep an original copy of the Agreement on file.
III. Budget and Financial Information
Budget Classification: Operating
Fiscal Year: 2020-2025
Source of Funds: 001.0244.0244.626067.00001.01.01.00001
001.4001.4001.623130.00001.01.01.00001
IV. Procurement Information
Specification Number: P-19021
Date Issued: December 10, 2019
Date of Pre-Submittal Meeting: December 17, 2019
Date Proposals Due: January 14, 2020
Number of Proposals Received: One (1)
This contract was publicly advertised as a Request for Proposals (“RFP”). One (1) proposal was received on the due date and was found by the Department of Purchasing (“Purchasing”) to be compliant and responsive.
The Evaluation Committee (“EC”) was comprised of seven (7) members - five (5) voting, two (2) non-voting, all CPD staff. The EC began their evaluation of the proposals at their first meeting on February5th and the EC met again on February13th where they continued their evaluation of the proposals and decided to invite the proposer to oral presentations. The Oral presentation was held on February 20th, and the session lasted approximately two hours. The EC met immediately after the oral presentation and decided to send the proposer a request for a Best and Final Offer. The Department of Purchasing sent the proposer the request for a Best and Final Offer on February 21st with a due date of February 26th. The EC met on February 27th to continue their evaluation and review of the Best and Final Offer. The EC concluded their evaluation by unanimously scoring ASM Global LLC and therefore recommending them for award.
V. Explanation
The Chicago Park District is opening two newly-constructed facilities - the Gately Park Indoor Track and Field Facility and the Addams Park Recreation Center - which promise to be important flagship facilities and enhance recreational and competitive event opportunities in a variety of activities.
Located in the Pullman Community Area, the world-class Gately Park Indoor Track and Field Facility is the first of its kind in Chicago. This 139,375 square foot state-of-the-art indoor track and field facility featuring a hydraulically banked 200-meter track will accommodate year-round recreational and competitive activities and events. The facility will be an attractive venue for hosting track and field events of all levels and sizes, including statewide, regional, national and collegiate track and field meets, invitational events and championship events.
Located in the Near West Side Community, the Addams Park Recreation Center is a specialty facility unlike any other park property. This 98,776 square foot recreation center and park will bring numerous recreational opportunities to the community with outdoor athletic fields, indoor artificial turf field, walking track, multi-purpose hard surface courts and community room. It is anticipated to be attractive for hosting numerous sporting activities such as soccer, football, baseball, lacrosse and rugby at various levels.
The Chicago Park District requires the services of a firm with the specific experience and skill set necessary to effectively manage and operate these unique facilities. Specifically, the manager will keep the facilities in a clean, safe, and attractive state at all times by providing all maintenance and custodial services both indoors and outdoors; maximize the utilization of the facilities by all segments of the local, regional and national population; maximize the number, diversity and attendance of events; maximize the net annual revenue generated to the Chicago Park District; minimize the negative environmental impact of the operation; provide services of the highest quality including renting the facilities, producing events and offering recreational programs to the public; and provide all personnel and subcontractors necessary for the management and operation of the facilities while ensuring that such personnel are properly trained and services are rendered in a professional and courteous manner. Lastly, it is imperative that the manager has experience hosting high-profile sports events and competitions to ensure the facilities’ success.
ASM Global is the world’s leading venue management and services company. The company was formed by the combination of AEG Facilities and SMG, global leaders in venue and event strategy and management. The company’s elite venue network spans five continents, with a portfolio of more than 300 of the world’s most prestigious arenas, stadiums, convention and exhibition centers, and performing arts venues.
ASM Global (formerly as SMG) has a proven track record of achieving and exceeding the Park District’s goals for the venues with which they are currently entrusted, including Soldier Field since 2003, McFetridge Sports Center since 2012, Morgan Park Sports Center since 2015 and the Baseball Stadium at Devon and Kedzie since 2012.
At Soldier Field, ASM Global/SMG has consistently booked and programmed events of all types and sizes which generate increasing revenue and attendance; achieved LEED-EB certification for Soldier Field; received consistently the highest scores from the NFL regarding their game day operation; achieved a thorough and extensive understanding of CPD’s Permit and Operating Agreements with the Chicago Bears and the Chicago Fire and other third party agreements that relate to the management and operation of Soldier Field; consistently worked to control annual operating expenses; managed and implemented approved capital improvements knowledgably and skillfully; and developed and grown a sponsorship and business agreement program that generates increasing revenue and offsets operating costs.
At the McFetridge Sports Center and the Morgan Park Sports Center, ASM Global/SMG has successfully operated the facilities growing annual attendance to more than 160,000 and 100,000 respectively, consistently ranking as the top two facilities for park programming enrollment. Revenues have more than doubled under their management and continue to grow year-over-year as programming expands in ice hockey, figure skating, tennis, gymnastics, fitness and many other activities. ASM Global’s management of the Baseball Stadium at Devon and Kedzie has resulted in hosting more than 250 events per year with diverse offerings and yielding net operating profit for CPD.
ASM Global has the demonstrated experience and capability to manage and operate the Gately Park Indoor Track and Field Facility and the Addams Park Recreation Center. They bring a knowledge of Chicago, a commitment to diversity, a history of success and the ability to deliver on the Chicago Park District’s mission. Therefore, it is in the best interest of the Chicago Park District to recommend ASM Global for the award for the management and operation contract.
EXHIBIT A
CONTRACT AMOUNT
The terms of the SMG financial proposal for the Management and Operation of Sports Facilities are summarized as follows:
Annual Management Fee
YR Gately Addams
1 $100,000 $100,000
2 $103,000 $103,000
3 $106,090 $106,090
4 $109,270 $109,270
5 $112,551 $112,551
6* $115,927 $115,927
7* $119,405 $119,405
8* $122,987 $122,987
9* $126,677 $126,677
10* $130,477 $130,477
Total $1,146,384 $1,146,384
*Extension years
Aggregate Annual Management Fee Retainage
It is the intent of CPD to perform an annual review of the manager with a portion of the management fee withheld pending satisfactory performance. After year-end financials are reported, CPD will review the manager’s performance based on specified criteria and then release the entire retained amount, a portion of the retained amount or none of the retained amount based on the results of the review. CPD will withhold 15% of the aggregate annual management fee for each facility pending an annual review of ASM Global’s performance.
Capital Investment
ASM Global will make a capital investment in year 1 of $25,000 for Gately and $25,000 for Addams. Capital Investment to be used for Capital Improvement project and/or FF&E identified by ASM Global and the CPD for the betterment of Gately Park and Addams Park and/or replacement of Gately Park and Addams Park equipment needed for the operation of the physical plant or programming.
Event Marketing Fund
ASM Global will create a Marketing Fund in year 1 of $50,000 for Gately and $25,000 for Addams to be used for promotion or creation of programming and events not currently identified by ASM Global and the CPD for the betterment of the facilities and the local community.