Second Group Interested in Pensacola Civic Center Rebuild....

Board members received the following unsolicited email yesterday from a new group interested in a potential arrangement with the county to modernize the Pensacola Civic Center: (It drew a stern response from the purchasing department very quickly thereafter, which is copied on the bottom of this post)

"Board of County Commissioners, County Administrator & County Stakeholders,

As you may be aware, we had the privilege of serving the County in studying various best-use options of the Bay Center back in 2011. In response to the RFI seeking a Public/Private Partnership to potentially replace the Bay Center, Johnson Consulting has put together a team interested in serving as the development advisor on behalf of the County.  Attached you will note our team experience as well as proposed services that may be of interest in helping the County’s decision-making process for the future of the Bay Center.  Johnson Consulting has significant experience serving as development advisor to various municipalities in relation to  public/private partnerships, with a specialized focus on public assembly venues as well as adjacent entertainment districts.  A few of our current/recent project for arenas and mixed-use districts include:

·       One Central, a proposed 20 million square foot mixed-use development, which includes an entertainment district adjacent to Soldiers Field in Chicago, IL.

·       Navy Hill Arena, a $1.5 billion public/private partnership for a proposed new arena and mixed-use district in Richmond, VA, which included a convention center headquarter hotel as well as office, retail, and residential.

·       Xtream Arena, a new 5,000 seat arena as well as an adjacent 180 acre mixed-use development called the Iowa River Landing Reinvestment District in Coralville, IA.  The development includes the following uses: office, retail, residential, hotel, a museum, and an indoor fieldhouse catered towards youth and amateur sports tourism.

·       The Yards, an 11-acre mixed-use public/private partnership, which includes: a new 5,000 seat ice arena with two community ice sheets, hotel & conference center, parking garage, office, retail and residential.

·       Dallas Fair Park, solicitation for a third-party management company to oversee the operation of the City’s fairgrounds. 

If appropriate and willing, our team would be pleased to schedule a follow-up conference call with whom you deem appropriate to discuss in greater detail the extent of this proposal as well areas in which we believe may be of value to the County during this process."

PURCHASING DEPT. RESPONSE:

"This is not appropriate.

This violates Escambia County’s Conduct of Participants (page 3) of the solicitation for PD 17-18.002, Multi-Use Sports and Event Venue Public Private Partnership.

After the issuance of any solicitation, all bidders/proposers/protestors or individuals acting on their behalf are hereby prohibited from lobbying as defined herein or otherwise attempting to persuade or influence any elected County officials, their agents or employees or any member of the relevant selection PD 17-18.002, Multi-Use Sports and Event Venue Public Private Partnership committee at any time during the blackout period as defined herein; provided, however, nothing herein shall prohibit bidders/proposers/protestors or individuals acting on their behalf from communicating with the purchasing staff concerning a pending solicitation unless otherwise provided for in the solicitation or unless otherwise directed by the purchasing manager."

PADP's Next Civic Center Proposal will be Kept Confidential

There are very valid reasons to keep certain proposals confidential and exempt from records requests during the competition phase of a procurement, as the BCC voted to do with the next round of P3 Proposals to replace the current Pensacola Civic Center...

The importance of protecting certain proprietary information contained within project proposals is vital--in the private sector AND in the Government sector as well.

If this information is compromised, there are all kinds of ramifications that could come from such a leak.

It is for this reason that Florida statutes allow for certain proposals to be kept confidential and exempt from public records release for certain periods of time prior to the selection process of a board being completed.

In economic development, there are protections for projects as well in statute.  Unfortunately, these are not always honored.

And as we have seen locally-- if information is leaked prematurely-- projects can fall apart and ill-will is created.

This very thing happened not long ago with an economic development project here in Escambia County-- and in the fallout of that fiasco--- where our Non-Disclosure Agreement was actually violated-- we lost a manufacturing firm, several dozen jobs, a tenant in one of our commerce parks, and in the process we created a huge ruckus for this company among it's then current employees out of state--who were unaware of any planned move by the company until this information leak occurred out of Escambia County.

It is for this reason that I requested that an add-on be included in yesterday's meeting of the BCC to insure that the board voted up or down on whether or not to give the next P3 proposal from PADP (to construct a new events center and field house at the current site of the Pensacola Civic Center) this statutorily permitted confidentiality.

And last night the board voted unanimously to do this as a part of the County Attorney's Action Items.

It is now anticipated that the BCC will advertise for submission of P3 proposals for a 21 day period, and that any and all proposals received as a result of this advertisement will be treated as confidential until such time as the board takes action of proposals received.  And it is likely we will receive at least one proposal; PADP has signalled that they will be sending a revised proposal and it will be kept confidential and not released to the public.  Because the board voted to do this last night.

Read our attorney's letter stating this below.

What Happens Next for Our Pensacola Civic Center?

I was asked questions about the Pensacola Civic Center's future in a recent interview with the media....  

So what's next for the Civic Center?  This was the question I was asked recently by Inweekly Reporter Jeremy Morrison.  I have no idea whether or not an article will come from the wide ranging conversation we had on this topic--hopefully one will.

I express doubt about whether or not there'll be an article because I have had two equally long conversations with Inweekly regarding IP and Perdido Bay--and no article has yet to appear in the Inweekly so far as I have seen on those topics either.

But because the Civic Center, and what to do with it going forward, has been such a focus for me personally since I have been a commissioner--I'll just go ahead and post what this discussion entailed in the event that it does not appear in the next issue of Inweekly--because it is a topic of importance.

"So what's going on with the proposal to replace the Civic Center"  was Jeremy's first open-ended question.  My answer went a little something like this:  "There is a group of individuals that have brought a series of proposals to leverage the opportunity to use Triumph Gulf Coast funds, along with their own organic resources and current TDC monies the BCC are already utilizing, in order to build a new event center AND a field house.  There was a previous plan that included new-market tax credits, but that plan could not garner three votes from commissioners and it failed"  was my first response.  Then I continued "This group has refined their proposal, and it will be about $80 Million total, with an anticipated injection of up to $30 Million from Triumph which would be requested after the construction is completed (this group would finance the planning and construction upfront).  The debt service and operations of the new facilities would come from the money we are currently using for the Civic Center yearly--which amounts to $2.8 Million in TDC funds--or "Bed tax" dollars.

"Why do you think this is a good deal?"  was the essence of his next question.  To which I gave the following qualified responses--after stating to him unambiguously that I had yet to see the finished, final proposal and that my final opinion would be based upon a thorough analysis of THAT SPECIFIC DEAL. But based upon what is known now-here are the reasons I believe this project has great merit:

1.  It requires no new revenue from the County's LOST or general fund
2.  It will be financed and construction will be managed with a guaranteed completion timeframe by the P3 partners who brought the plan
3.  If Triumph balks and does not approve money toward the deal--there is no deal (no obligation)
4.  If approved by Triumph Gulf Coast and the Escambia BCC, the project will provide a field house AND a new 6500 seat event center-which will better accommodate events like Pensacon.
5.  The field house part of the project will attract indoor events during our cold weather months which will help us bring in outside dollars and spending in hotels, retail, and restaurants during the historically slowest portions of the year.  This plan also gives our community a second sheet of ice which increases availability for youth hockey, figure skating, and public ice skating--all of which generate revenue.
6.  The project allows us to build in the existing Civic Center footprint with no loss of this venue during construction (i.e. construction occurs and the current Civic Center remains open until the new facilities are ready for use--at which time the new facilities open and the current Civic Center closes simultaneously)
7. This project, if approved,  would require neither an increase to the current 4% bed tax, nor a reduction in that portion of our increasing bed tax revenue yearly that is dedicated to tourism promotion.
8.  It is my understanding that the new proposal includes a large parking structure that the City of Pensacola will pay to construct.

What if any, are the problems and challenges with this proposal?  Was Jeremy's next question..to which I gave the following issues as challenges:

1.  A new study must be conducted to show the economic value of the project and that it meets with the criteria established by Triumph Gulf Coast for funding from that entity.
2.  Under state law, the BCC must advertise this topic and invite additional submissions from unaffiliated but potentially interested entities before we can simply move forward with the currently interested party that has expressed desire to submit a new, revised unsolicited proposal for replacing the Civic Center. (that's a mouthful)
3.  The proposal must withstand the scrutiny of the BCC, the media, and other community leaders before it will realistically move forward.
4.  Another concern that is loud and prevalent is that the new event center will seat significantly fewer people than the existing Civic Center  (6,500 versus around 10,000)
5.  There is a legal concern that under the TDC legislation, continued utilization of existing bed tax revenue for a new or replacement facility may not be permissible.

What happens with the Civic Center if this latest deal does not get done? Was the final question Jeremy asked.  My answer was pretty straightforward:  "If we don't do this, then my feeling that I have repeated frequently is that we need to bond the existing amount we are spending yearly on the Civic Center ($2.8 Million) from the TDC for 20 years and use this to generate about $20-30 Million.  Then we need to utilize these proceeds to renovate and modernize the existing Civic Center so that we can get another 20 years out of this facility.  New marquee, new scoreboard, LED lighting, new restrooms, soundproofing, new luxury boxes, modernized climate control systems, new seats, new optimized seating layouts, new ice plant, new boards for the hockey, all of the above, the whole kit and kaboodle-whatever we need to do to get another 20 good years from the building" was my response.  "We have got to fish or cut bait, we've kicked the can long enough and it is way past time for us to take action on this" Is how I finished the interview.