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HomeMy WebLinkAbout06-41 Resolution No. 06-41 RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH ECONOMICS RESEARCH ASSOCIATES FOR AN ECONOMIC FEASIBILITY STUDY FOR A CULTURAL ARTS CAMPUS FEATURING A PERFORMING ARTS CENTER BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Olufemi Folarin,City Manager,and Dolonna Mecum,City Clerk,be and are hereby authorized and directed to execute an agreement on behalf of the City of Elgin with Economic Research Associates for an Economic Feasibility Study for a Cultural Arts Campus featuring a performance arts center,a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: February 22, 2006 Adopted: February 22, 2006 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk AGREEMENT THIS AGREEMENT is made and entered into this Qjvp day of FeB2Wniey, 2006, by and between the CITY OF ELGIN, an Illinois municipgl corporation (hereinafter referred to as "CITY" ) and ECONOMICS RESEARCH ASSOCIATES, a corporation organized and existing under the laws of the State of (Economics Research Associates and Fichor Dache - being hereinafter referred to as the "CONSULTANTS" ) . WHEREAS, the CITY desires to engage the CONSULTANTS to furnish certain professional services in connection with an economic feasibility study for a proposed cultural campus featuring a performing arts center (hereinafter referred to as the "Project" ) and WHEREAS, the CONSULTANTS represent that they have the necessary expertise and experience to furnish such services upon the terms and conditions set forth herein below. NOW, THEREFORE, it is hereby agreed by and between the CITY and the CONSULTANTS that the CITY does hereby retain the CONSULTANTS for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is hereby acknowledged, to act for and represent it in the matters involved in the PROJECT as described in this Agreement, subject to the following terms and conditions and stipulations, to-wit : 1. SCOPE OF SERVICES A. All work hereunder shall be performed under the direction of the City' s Assistant City Manager (hereinafter referred to as the "SUPERVISOR" ) . B. CONSULTANTS shall provide the services for the PROJECT as outlined in the Economic Research Associates Scope of Services Proposal entitled "Scope of Services Economic Feasibility for a Cultural Campus Featuring a Performing Arts Center" , dated December 9, 2005 consisting of seven (7) pages, a copy of which is attached hereto and made a part hereof as Exhibit 1 . In the event of any conflict between the terms of this Agreement and the terms contained within Exhibit 1, the terms of this Agreement shall control . 2 . SCHEDULE The CONSULTANTS shall provide the services for the PROJECT according to the schedule as set forth in Exhibit 1 . 3 . WORK PRODUCTS All work products prepared by the CONSULTANTS pursuant hereto including, but not limited to, reports, designs, calculations, work drawings, plans, design documents, probable construction costs, floor plans, elevations and sections, renderings, studies, photographs, models and recommendations shall be the property of the CITY and shall be delivered to the CITY upon request of the SUPERVISOR provided, however, that the CONSULTANTS may retain copies of such work products for its records . Such work products are not intended or represented to be suitable for reuse by the CITY on any extension to the PROJECT or on any other project, and such reuse shall be at the sole risk of the CITY without liability or legal exposure to the CONSULTANTS . 4 . PAYMENTS TO THE CONSULTANTS A. For services provided by the CONSULTANTS pursuant to this Agreement the CONSULTANTS shall be reimbursed by the CITY at the direct hourly rate of their personnel employed on the PROJECT a total fee not to exceed $100, 000 regardless of the actual time expended or the actual costs incurred by the CONSULTANTS, unless substantial modifications to the Scope of Work are authorized by way of written amendment to this Agreement approved by the City Council of the City. B. The City shall also reimburse the CONSULTANTS for travel expenses and production costs associated with the PROJECT in the amount of the actual costs for same incurred by the CONSULTANTS with the total amount of such costs not to exceed $6, 000 . C. The CITY shall make periodic payments to the CONSULTANTS based upon actual progress within 30 days after receipt and approval of invoice. Full payment for each task shall not be made until the task is completed and accepted by the SUPERVISOR. 5 . INVOICES A. The CONSULTANTS shall submit invoices in a format approved by the CITY. B. The CONSULTANTS shall maintain records showing actual time devoted and cost incurred. The CONSULTANTS shall permit the authorized representative of the CITY to inspect and audit all data and records of the CONSULTANTS for work done under this Agreement . The CONSULTANTS shall make these records available at reasonable times during the Agreement period, and for a year after termination of this Agreement . - 2 - 6 . TERMINATION OF AGREEMENT Notwithstanding any other provision hereof, the CITY may terminate this Agreement at any time upon fifteen (15) days prior written notice to the CONSULTANTS . In the event that this Agreement is so terminated, the CONSULTANTS shall be paid for services actually performed and reimbursable expenses actually incurred prior to termination, except that reimbursement shall not exceed the amounts set forth under Paragraph 4 above. 7 . TERM This Agreement shall become effective as of the date the CONSULTANTS are given a notice to proceed and, unless terminated for cause or pursuant to Article 5, shall be deemed concluded on the date the CITY determines that all of the CONSULTANTS ' work under this agreement is completed. A determination of completion shall not constitute a waiver of any rights or claims which the CITY may have or thereafter acquire with respect to any term or provision of the Agreement . 8 . NOTICE OF CLAIM If the CONSULTANTS wish to make a claim for additional compensation as a result of action taken by the CITY, the CONSULTANTS shall give written notice of his claim within 15 days after occurrence of such action. No claim for additional compensation shall be valid unless so made . Any changes in the CONSULTANTS ' fee shall be valid only to the extent that such changes are included in writing signed by the CITY and the CONSULTANTS. Regardless of the decision of the SUPERVISOR relative to a claim submitted by the CONSULTANTS, all work required under this Agreement as determined by the SUPERVISOR shall proceed without interruption. 9 . BREACH OF CONTRACT If either party violates or breaches any term of this Agreement, such violation or breach shall be deemed to constitute a default, and the other party has the right to seek such administrative, contractual or legal remedies as may be suitable to the violation or breach; and, in addition, if either party, by reason of any default, fails within fifteen (15) days after notice thereof by the other party to comply with the conditions of the Agreement, the other party may terminate this Agreement . 10 . INDEMNIFICATION To the fullest extent permitted by law, CONSULTANTS agrees to and shall indemnify, defend and hold harmless the CITY, its officers, employees, agents, boards and commissions from and - 3 - against any and all claims, suits, judgments, costs, attorneys fees, damages or other relief, including but not limited to workers compensation claims, in any way resulting from or arising out of negligent actions or omissions of the CONSULTANTS in connection herewith, including negligence or omissions of employees or agents of the CONSULTANTS arising out of the performance of this Agreement . In the event of any action against the CITY, its officers, employees, agents, boards or commissions, covered by the foregoing duty to indemnify, defend and hold harmless such action shall be defended by legal counsel of the CITY ' s choosing. The provisions of this paragraph shall survive any completion, expiration and/or termination of this agreement . 11. NO PERSONAL LIABILITY No official, SUPERVISOR, officer, agent or employee of the CITY shall be charged personally or held contractually liable under any term or provision of this Agreement or because of their execution, approval or attempted execution of this Agreement . 12 . INSURANCE A. Comprehensive Liability. The CONSULTANTS shall provide, pay for and maintain in effect , during the term of this Agreement, a policy of comprehensive general liability insurance with limits of at least $1, 000, 000 aggregate for bodily injury and $1, 000 , 000 aggregate for property damage . The CONSULTANTS shall deliver to the SUPERVISOR a Certification of Insurance naming the CITY as additional insured. The policy shall not be modified or terminated without thirty (30) days prior written notice to the SUPERVISOR. The Certificate of Insurance which shall include Contractual obligation assumed by the CONSULTANTS under Article 10 entitled "Indemnification" shall be provided. This insurance shall apply as primary insurance with respect to any other insurance or self-insurance programs afforded to the CITY. There shall be no endorsement or modification of this insurance to make it excess over other available insurance, alternatively, if the insurance states that it is excess or prorated, it shall be endorsed to be primary with respect to the CITY. B. Comprehensive Automobile Liability. Comprehensive Automobile Liability Insurance covering all owned, non- owned and hired motor vehicles with limits of not less than $500 , 000 per occurrence for damage to property. - 4 - C. Combined Single Limit Policy. The requirements for insurance coverage for the general liability and auto exposures may be met with a combined single limit of $1, 000, 000 per occurrence subject to a $1, 000, 000 aggregate . D. Professional Liability. The CONSULTANTS shall carry Professional Liability Insurance Covering claims resulting from error, omissions or negligent acts with a combined single limit of not less than $1, 000 , 000 per occurrence. A Certificate of Insurance shall be submitted to the SUPERVISOR as evidence of insurance protection. The policy shall not be modified or terminated without thirty (30) days prior written notice to the SUPERVISOR. 13 . NONDISCRIMINATION In all hiring or employment made possible or resulting from this Agreement, there shall be no discrimination against any employee or applicant for employment because of sex, age, race, color, creed, national origin, marital status, of the presence of any sensory, mental or physical handicap, unless based upon a bona fide occupational qualification, and this requirement shall apply to, but not be limited to, the following: employment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. No person shall be denied or subjected to discrimination in receipt of the benefit of any services or activities made possible by or resulting from this Agreement on the grounds of sex, race, color, creed, national origin, age except minimum age and retirement provisions, marital status or the presence of any sensory, mental or physical handicap. Any violation of this provision shall be considered a violation of a material provision of this Agreement and shall be grounds for cancellation, termination or suspension, in whole or in part, of the Agreement by the CITY. 14 . ASSIGNMENT AND SUCCESSORS This Agreement and each and every portion thereof shall be binding upon the successors and the assigns of the parties hereto; provided, however, that no assignment shall be made without the prior written consent of the CITY. 15 . DELEGATIONS AND SUBCONTRACTORS Any assignment, delegation or subcontracting shall be subject to all the terms, conditions and other provisions of this Agreement and the CONSULTANTS shall remain liable to the CITY with respect to each and every item, condition and other provision hereof to the same extent that the CONSULTANTS would have been obligated if it had done the work itself and no - 5 - assignment, delegation or subcontract had been made . Any proposed subcontractor shall require the CITY' s advanced written approval . 16 . NO CO-PARTNERSHIP OR AGENCY This agreement shall not be construed so as to create a partnership, joint venture, employment or other agency relationship between the parties hereto. 17 . SEVERABILITY The parties intend and agreed that, if any paragraph, sub- paragraph, phrase, clause or other provision of this Agreement, or any portion thereof, shall be held to be void or otherwise unenforceable, all other portions of this Agreement shall remain in full force and effect . 18 . HEADINGS The headings of the several paragraphs of this Agreement are inserted only as a matter of convenience and for reference and in no way are they intended to define, limit or describe the scope of intent of any provision of this Agreement, nor shall they be construed to affect in any manner the terms and provisions hereof or the interpretation or construction thereof . 19 . MODIFICATION OR AMENDMENT This Agreement and its attachments constitutes the entire Agreement of the parties on the subject matter hereof and may not be changed, modified, discharged or extended except by written amendment duly executed by the parties . Each party agrees that no representations or warranties shall be binding upon the other party unless expressed in writing herein or in a duly executed amendment hereof, or change order as herein provided. 20 . APPLICABLE LAW This Agreement shall be deemed to have been made in, and shall be construed in accordance with the laws of the State of Illinois . Venue for the resolution of any disputes or the enforcement of any rights pursuant to this agreement shall be in the Circuit Court of Kane County, Illinois . 21. NEWS RELEASES The CONSULTANTS may not issue any news releases without prior approval from the SUPERVISOR, nor will the CONSULTANTS make public proposals developed under this Agreement without prior written approval from the SUPERVISOR prior to said documentation becoming matters of public record. - 6 - 22 . COOPERATION WITH OTHER CONSULTANTS The CONSULTANTS shall cooperate with any other consultants in the CITY' s employ or any work associated with the PROJECT. 23 . INTERFERENCE WITH PUBLIC CONTRACTING The CONSULTANTS certifies hereby that they are not barred from bidding on this contract as a result of a violation of 720 ILCS 5/33E et seq. or any similar state or federal statute regarding bid rigging. 24 . SEXUAL HARASSMENT As a condition of this contract, the CONSULTANTS shall have written sexual harassment policies that include, at a minimum, the following information: A. the illegality of sexual harassment; B. the definition of sexual harassment under state law; C. a description of sexual harassment, utilizing examples; D. the vendor ' s internal complaint process including penalties; E . the legal recourse, investigative and complaint process available through the Illinois Department of Human Rights, and the Illinois Human Rights Commission; F. directions on how to contact the department and commission; G. protection against retaliation as provided by Section 6- 101 of the Human Rights Act . A copy of the policies must be provided to the Department of Human Rights upon request 775 ILCS 5/2-105 . 25 . WRITTEN COMMUNICATIONS All recommendations and other communications by the CONSULTANTS to the SUPERVISOR and to other participants which may affect cost or time of completion, shall be made or confirmed in writing. The SUPERVISOR may also require other recommendations and communications by the CONSULTANTS be made or confirmed in writing. - 7 - 26 . NOTICES All notices, reports and documents required under this Agreement shall be in writing and shall be mailed by First Class Mail, postage prepaid, addressed as follows : A. As to CITY: Sean R. Stegall, Assistant City manager City of Elgin 150 Dexter Court Elgin, Illinois 60120-5555 With a copy to: William A. Cogley, Corporation Counsel City of Elgin 150 Dexter Court Elgin, Illinois 60120-5555 B. As to CONSULTANTS : Economic Research Associates 20 E. Jackson Boulevard, Suite 1200 Chicago, Illinois 60604 IN WITNESS WHEREOF, the undersigned have placed their hands and seals upon and executed this Agreement in triplicate as though each copy hereof was an original and that there are no other oral agreements that have not been reduced to writing in this statement . FOR THE CITY: FOR THE CONSULTANTS : ECONOMIC RESEARCH ASSOCIATES BY: By: l' ' !' -rtager Attest : $ 61-4 City Clerk F:\Legal Dept\Agreement\ERA-EconomicsResearchAssoc-Feasibility Study-WAC.doc - 8 - r City of Elgin Agenda Item No. z - E L January 6, 2006 4 t� TO: Mayor and Members of the City Council FROM: Olufemi Folarin, City Manager FICC R EATIC,NA LCISAJ RE A NILV C_./LI V i4AL lJ,..C.,141UNI'fl1'sL F C:N ALL GIl IZ6N5. Sean R. Stegall, Assistant City anager James R. Nowicki, Fiscal Services Group Director SUBJECT: Economic Feasibility Study for a Cultural Campus Featuring a Performing Arts Center PURPOSE The purpose of this memorandum is to provide information to the Mayor and members of City Council to award a contract to Economics Research Associates (ERA) and Fisher Dachs Associates (FDA) concerning an economic feasibility study for a cultural campus featuring a performing arts center. The study will also examine the feasibility of developing an enhanced outdoor venue at Wing Park. RECOMMENDATION It is recommended that the City Council award a contract for professional services to Economics Research Associates and Fisher Dachs Associates in an amount not to exceed $100,000 concerning a economic feasibility study for a cultural campus featuring a performing arts center. The study will also examine the feasibility of developing an enhanced outdoor venue at Wing Park. BACKGROUND A Request for Proposals (RFP) requesting an analysis of costs for providing a feasibility study for the development of a second performing arts venue in Elgin was drafted and released/advertised on August 1, 2005. The responding consultants were asked to submit proposals which provided a comprehensive analysis of the question, "Does a second performing arts center make sense for the Elgin Community?" If so, how will the community support the facility in all facets? If not, why not? Therefore the key components of the study will include: • Determining the financial impact on the community by assessing the change in additional tax income, development of the business economy, promotion of tourism, creation of jobs and other similar economic considerations associated with the presence of the new facility; Economic Feasibility Study for a Cultural Campus Featuring a Performing Arts Center January 6, 2006 Page 2 • Assessing the demographics of the area and determining attendance estimates for anticipated events to estimate the expected revenue for a new facility; • Determining the cost for staffing, managing, and maintaining the new facility, a renovated Hemmens, and/or a new or renovated facility at Wing Park; • Identifying potential public funding sources and related income; and • Creating a governance strategy. Ten responses to the RFP were received and reviewed by the Assistant City Manager, Fiscal Services Group Director, Cultural Center Manager, ESO Executive Director and the Arts Coalition Acoustic Consultant. Once the proposals were evaluated they were narrowed to two consultants and interviews were held and conducted by the Performing Arts Task Force which is made up of the aforementioned individuals, Mayor Schock, Councilmember Walters, and community leaders/members of the ESO Board. It was the consensus of the Task Force that ERA/FDA should be retained to provide the services. ERA is an internationally-recognized consulting firm specializing in all aspects of real estate and land use economics, urban planning and development, commercial recreation feasibility, strategic planning for communities and corporations, and management and marketing services. ERA has seven locations worldwide, including one located in downtown Chicago, which will provide a greater level of proximity and connection to the proposed project. In addition, ERA is familiar with the City of Elgin through their recent work providing financial and real estate analysis associated with the Bowes Creek Golf Course project. FDA has been named a partner on the project and together the ERA/FDA team offers more than 70 years combined experience in the assessment of performing arts centers. FDA's fourteen person firm is a national leader in design and planning services for performing arts centers. Finally, ERA has a reputation for providing information to their clients that has resulted in projects not moving forward. This is important as it demonstrates their credibility and independence. ERA/FDA has proposed a combined fee of$100,000 to complete the project — $66,000 for ERA and $34,000 for FDA. The general scope of work items included in this initial contract is broken down into four phases. The first and second phases of the project incorporate the initial stakeholder meetings and data collection with a comprehensive analysis of trends in demographics and the performing arts field as well as an assessment of competitive venues and market potential for a new venue. In the event, that a new performing arts venue is deemed economically feasible or viable, the third and final phase would provide a market analysis of a new venue, design and cost implications, and the financial and economic impact to the City of Elgin. Economic Feasibility Study for a Cultural Campus Featuring a Performing Arts Center January 6, 2006 Page 3 COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Elgin Symphony Orchestra, Elgin Children's Chorus, Children's Theatre of Elgin, Elgin Choral Union and Elgin Youth Symphony. FINANCIAL IMPACT There are sufficient funds budgeted ($150,000) and available ($100,000) in the Riverboat 0116. Fund, account number 275-0000-791.47-00 (Special Events/Projects Expense), project number 030140 "Symphony Hall Study" to enter into the contact with ERA for a not-to- exceed amount of$100,000. vliyiLiEGAL IMPACT An agreement will need to be prepared. ALTERNATIVES 1. Approve the contract with Economics Research Associates and Fisher Dachs Associates in an amount not to exceed$100,000. 2. Deny the contract with Economics Research Associates and Fisher Dachs Associates in an amount not to exceed$100,000. Respectfully submitted for Council consideration. SRS E R A Economics Research Associates Scope of Services Economic Feasibility Study for a Cultural Campus Featuring a Performing Arts Center Submitted to: The City of Elgin Submitted by: Economics Research Associates & Fisher Dachs Associates December 9, 2005 • 20 E. Jackson Boulevard Suite 1200 Chicago IL 60604 312.427.3855 FAX 312.427.3660 www.econres.com Los Angeles San Francisco San Diego New York Chicago Washington DC London ERA Table of Contents Table of Contents 1 Work Scope 2 Part I - Project Orientation 2 Part II - Market Analysis and Option Development 2 Part III - Priority Program Options 4 Part IV - Economic Impact Assessment 6 Final Report & Presentations 6 Budget and Timing 7 Proposal to the City of Elgin Page 1 ERA Work Scope Part I — Project Orientation To kick off the project,the ERA/FDA Team will initiate several initial key steps: • Confirm project schedules,deliverables,key presentation dates,and develop a steering committee to oversee the research process. The City's project manager shall be the assistant city manager. • Develop an initial list of key stakeholders/users for follow-up interviews,to properly understand the context and history of the project. Stakeholder groups could include local performing arts groups, local corporations, public officials, school districts, and other individuals. We expect a minimum of 17 to 20 groups will need to be contacted. • With an identified list of stakeholders / users, the team will develop and issue a short survey instrument for each group to fill out. User responses will be collected and evaluated in Part 1, and confirmed during the interview process in Part II. • Interview Hemmens Cultural Arts Center staff and collect historical data, including annual performance data, attendance, event days, rehearsal days, and related operating revenue and expense information. Specific data from the Elgin Symphony Orchestra(ESO),the primary users of the facility, will be analyzed as well. Analysis will specifically consider past trends for facility utilization by season, noting implications for the venue to support additional events,based on the assumption of additional capital reinvestment proposals for the venue. • A full tour of the existing facility, as well as of the downtown area, to better understand how a second venue would fit into the downtown environment. At the completion of Part I, the consultant team and client will have a clear perspective on project deliverables, time frames, and key meeting / presentation dates, along with collected data on venue performance and contact information for key stakeholder groups. Part II — Market Analysis and Option Development The market analysis section will include several related efforts, as follows: Demographics Population and economic base analysis for the City of Elgin and surrounding communities, covering population and income change, employment growth, and emergence of key major employers will be conducted. The approach will compare Elgin to other similar jurisdictions in terms of population change, income growth, median age, home values, and related factors, with data provided for 1990, 2000, and 2004, based on data availability. Population and income forecasts looking 10 years into the future will be developed on a zip-code level to aid in analysis of future performing arts demand potentials. These forecasts will be fully developed in Part 2 and 3. Proposal to the City of Elgin Page 2 III ERA Performing Arts/Concert Trends The approach will include a discussion of recent trends in performing arts, including: • Regional/National:Broadway shows&concerts • Local: performing arts/dance groups/other events • Discussion of other opportunity event segments, including presentations, meetings, and other events. Stakeholder/ User Interviews The team will meet with the ESO administrative staff, department heads, music director, and other key staff members to better understand the constraints and limitations of the present space,and their perceived needs and desires for the future facility. Additional user interviews will then be conducted, focusing on perceptions regarding current facilities, demand for new space, opportunities to support new events, and venue design implications. The team will work with the City to identify key groups for interviews. The approach will include interviews with a sample of local performing arts / community groups. ERA understands that there are at least 17 current performing / fine arts groups to be interviewed (either in person or by phone), plus potential users, which could include dance companies, schools, corporations, etc. The team will contact and interview potential users as well, either in person or by telephone. Interviews and assessments will include discussion of summer outdoor event/venue interest. Competitive Venues Assessment of key competing performing arts venues in Northeastern Illinois(both existing and planned). The assessment will note competing venue amenities, perceptions on acoustical qualities, back-of-house amenities, seating capacity, event day / attendance levels, core operating and management approaches, and market focus. Venues will be evaluated in terms of distance from Elgin,with analysis of competitive implications and market share. ERA anticipates that the assessment will include facilities in Aurora, Crystal Lake, and Hoffman Estates, as well as other competitive projects across Northeastern Illinois. Venues will be incorporated in a GIS system for further analysis. Competitive factors will be discussed with the City and ESO. ERA will also provide a related assessment of outdoor summer venues in the market,highlighting related data. Market Potentials Evaluation of the potential market for performing arts attendance will be driven by several factors, including: • ESO membership data and ticket sales trends, broken down by zip code, which will be used to help estimate current ESO penetration rates,and forecast potentials. • National Endowment for the Arts data on public attendance at performing arts events,which will be applied to zip-code level population forecasts to derive generalized potentials for participation in performing/fine arts. • Tapestry Data, focused on population segments that have visited a performing/fine arts event in the past 12 months,again evaluated on a zip-code level. • Information from the Illinois Arts Alliance,and related organizations. Proposal to the City of Elgin Page 3 ERA • ERA will also collect reported event attendance data for performing arts events in the Chicago market using data reported by Amusement Business and Pollstar. Related analyses will be used to estimate the depth of market support for performing arts in Elgin and the region. The above collection of data will be used to derive overall demand growth for fine / performing arts, segmented by zip code, to highlight future demand growth for these event categories. As before, the approach will be presented in GIS format to aid in analysis efforts. ERA will also discuss implications for summer event potentials that could occur in an outdoor venue, noting related implications for venue size. Initial Scenario Development From the information gathering and user interviews we will develop a series of options for meeting the challenges identified in Phase One. The approach will begin with a baseline scenario that looks at the current venue in a"no-action"perspective. Additional scenarios will be developed and compared back to the baseline; these scenarios could include the addition of a new Multi-use Theatre, and/or a new ESO- anchored Concert Hall,and the possibility of a summer outdoor concert venue. Implications The market analysis approach will lead to identification of key demand and supply drivers for the project, principally the ability of the market to sustain a second performing arts venue. Anticipated population and income growth in Elgin and surrounding communities will be incorporated. Key variables that will be explored and evaluated in this phase include: • Population-based demand for performing arts • Input from current and potential Hemmens tenants • Performance of competitive venues,trade areas&market penetration • Event performance benchmarks: o Attendance per event,by event type o Gross ticket sales per event,by event type • Performance implications for Hemmens: o Net change in events(type,size,and gross sales) o Revenue&expense impact on Hemmens The ERA/FDA Team will meet with City officials and key stakeholders to discuss market implications and next steps, including the identification of priority venue design scenarios. Based on results of this assessment,the team will move forward into Part III. Part III — Priority Program Options Part III will be broken down into three related efforts focusing on market, design, and impact of a new performing arts venue: 1. Market impact of a new venue 2. Design and cost implications 3. Financial impact Proposal to the City of Elgin Page 4 ERA At a key juncture in Part III, the team will conduct a Phase Three Work Session with Key Stakeholders and City leadership to review and discuss the report implications. The purpose of this meeting will be to discuss options to address the City's objectives ranging from"Do-Nothing"to development of alternative new venues. The meeting will introduce and describe each of the Options and their projected order-of- magnitude costs, and provide a forum for discussion. The objective of the meeting will be to build consensus around a specific course of action. We will conduct a Second Work Session at the same time to discuss and develop multiple operating and governance options for the new Performing Arts Center. Depending on the Preferred Option or direction as set forth in the first work session we would consider the different operating structures for the new building including;ownership,management structure,rental and presentation models,and the financial ramifications/issues/opportunities associated with each. Market Component The ERA /FDA team will evaluate several scenarios for new venues in Elgin from market, design, and financial impact perspectives. Options could include the following: 1. Hemmens alone—The baseline,"no-action"approach for comparison with other scenarios 2. Hemmens with a new Multi-Use Theater 3. Hemmens with a new ESO-anchored Concert Hall 4. A fourth option,if needed 5. Development of an outdoor summer venue option Design Component FDA and ERA will generate related estimates for each option,as follows: • Management/staffing options • Partnership options • Confirm initial interviews with ESO, venue staff, current / potential users to understand space program drivers • Review previous studies and materials • Evaluate design alternatives • Develop a refined program space list for the performance spaces including net-SF, gross-SF estimates & occupancy requirements Generate preliminary order-of-magnitude cost estimates to reflect the proposed interior space requirements Financial Component • Develop operating revenue estimates based on event potentials—.10-Year financial estimate • Revise cost estimates,and with city,generate debt service implications • Assess financial gap implications and possible funding sources The ERA / FDA team envisions that the workshop would happen at a key point in Part III, when sufficient information has been collected to properly shape decision-making. Proposal to the City of Elgin Page 5 E RA Implications The ERA/FDA approach will include discussion of the following elements: • Need for a new theater • Role/position of Hemmens • Ownership/management considerations • Partnership options • Financial implications • Policy context—Community goals • Potential demand for a summer outdoor venue Part IV — Economic Impact Assessment The economic impact assessment will consider several key factors,including: • The impact of theater visitors (residents and tourists) to the downtown area, noting spending potentials for retail and restaurants,as well as implications for new tax income. • Review of other recently built performing arts venues and perceptions regarding the impact generated on their downtown environment. • ERA experience with downtown revitalization will be applied to summarize likely implications of a new performing arts venue on downtown Elgin, noting potentials for new restaurant development, linkage with downtown residential development, as well as other spin-off potentials. ERA will also assess whether or not these developments would have occurred regardless of a new performing arts center being constructed. Final Report & Presentations The team will prepare a comparative analysis of the options—a tool for Elgin decision makers to use in developing a facility strategy. Draft versions of the report will be produced in MS Word/Adobe Acrobat format,and submitted digitally for comment and review. The final report will be produced both digitally and in hard copy. The team assumes that three final presentations will be made, to the Steering Committee, City Council, and the ESO Board. Proposal to the City of Elgin Page 6 ERA Budget and Timing The following budget and timing estimates are based on ERA's scope of work noted above, and represent "not to exceed" estimates regarding professional time. Travel expenses and production costs for FDA follow separately. The timing estimates build in an increment of time for client comment. Professional Fees Total Phase Timing ERA FDA Professional Fee Part I Initial Stakeholder/User contact Data collection - ESO/Hemmens 2 Weeks $3,000 $3,000 $6,000 Tour of Hemmens Part II Demographics 2 Weeks $10,000 $0 $10,000 Performing/fine arts/Concert Trends Stakeholder Interviews 2 Weeks $7,000 $5,000 $12,000 Competitive Venues Market Potentials 4 Weeks $15,000 $5,000 $20,000 Implications/Scenario Development Part III Market 2 Weeks $10,000 $10,000 Design 3 Weeks $4,000 $16,000 $20,000 Financial 2 Weeks $12,000 $4,000 $16,000 Part IV Economic Impact 1 Week $3,000 $3,000 Final Report/Presentations 1 Week $2,000 $1,000 $3,000 Totals: Timing and Professional Fee 18—20 Weeks $66,000 $34,000 $100,000 FDA is proposing a maximum of 6 trips to Elgin as part of the process, which could include up to 3 client presentations. Their travel expenses and production costs associated with this effort are budgeted at an additional not-to-exceed cost of$6,000 — above the professional fees noted above. Travel expenses and production costs will be billed at cost as they are incurred. In reviewing the above cost structure, ERA is assuming that the project will reach completion within the noted time period. Unusual delays of more than two months during the process (defined as a period of time where no work is completed)may require a fee adjustment. Project invoices will be generated on a monthly basis, based on the percentage of phase completion. Proposal to the City of Elgin Page 7