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County Administrator's Report 10. 6.

BCC Regular Meeting

Discussion

Meeting Date:	10/05/2017
Issue: Unsolicited Proposal for Delivery of a New Arena and Field House
From:	Amy Lovoy
Department:	Asst County Administrator
CAO Approval:

RECOMMENDATION:

Recommendation Concerning the Unsolicited Proposal from the Pensacola Arena Development Partners, LLC, for the Development of a New Arena and Sports Field House - Amy Lovoy, Assistant County Administrator

That the Board discuss the proposal from the Pensacola Arena Development Partners, LLC (PADP) for a public/private partnership to develop an arena and sports field house, as provided.

BACKGROUND:

The County has received an unsolicited proposal from the PADP for the development of a new arena and sports field house. Florida Statute 255.065 governs the method by which a local government can enter into a public/private partnership arrangement. The requirements for this statute include but are not limited to:

A professional review by a licensed architect or engineer for the evaluation of the design and construction proposal.
If the proposal is unsolicited, the County must publish in the Florida Administrative Register and a newspaper of general circulation at least once a week for 2 weeks stating that the County has received a proposal and will accept other proposals for the same project.
The solicitation must include a design criteria package prepared by an architect/engineer which is sufficient to allow other entities to prepare a response.
The DCP must specify specific criteria for the projects including but not limited to a legal description of the site, interior space requirements, material quality standards, schematic layouts, conceptual design criteria, cost estimates, design and construction schedules, site development and utility requirements.
The licensed design professional who prepares the DCP must be retained to serve the County through the completion of the project.

The minimum standards for a project to qualify include but are not limited to:

The County must ensure that a provision is made to guarantee the private entity's performance and payment of subcontractors.
The County must ensure that any ensuing comprehensive agreement addresses termination upon a material default.
The County must perform an independent analysis of the proposed public-private partnership which demonstrates the cost-effectiveness and overall public benefit.

Before the negotiation of a comprehensive agreement required by the statute, the County may enter into an interim agreement with the highest ranked firm authorizing the highest ranked firm to commence activities including project planning, development, design etc.

BUDGETARY IMPACT:

The latest unsolicited proposal is to design, construct and finance a $65,000,000 field house and arena in exchange for a long-term lease to the County. The developer will assume long-term responsibility for operations, maintenance and lifecycle investment of the buildings. If the County agrees to move forward with developer, developer will complete site due diligence, designs and arrange financing. During diligence, the developer will confirm the availability of up to $20,000,000 in new market tax credits. The County may be able to secure up to $25,000,000 over five years from Triumph, and developer has offered to structure a financing with the flexibility to pay down principal as such funds are received.

LEGAL CONSIDERATIONS/SIGN-OFF:

N/A

PERSONNEL:

N/A

POLICY/REQUIREMENT FOR BOARD ACTION:

N/A

IMPLEMENTATION/COORDINATION:

N/A

Attachments
P3 Financial Assumptions
Bay Center1
Bay Center2
Studer1
Studer2
Pensacola LOI
Presentation Supplement
P3 Statute