9.3. SR 11-18-2019 EOty1� ,.,�� Request for Action
River
To Item Number
Mayor and City Council 9.3
Agenda Section Meeting Date Prepared by
Work Session November 18, 2019 Michael Hecker, Parks and Recreation Director
Item Description Reviewed by
Naming Rights Consulting Services Request for Cal Portner, City Administrator
Proposal (RFP) Reviewed by
Action Requested
Review and discussion of naming rights consulting services RFP.
Background/Discussion
At the November 4 work session, Council discussed professional services naming rights for the
multipurpose facility. Council direction was for staff to create a scope of services draft for Council to
review.
Staff has prepared a draft RFP with the requirements that the consultant's capabilities and experience
have a proven track record working with municipalities and parks and recreation programs. This includes
the consultant's approach to sponsorship packaging and engagement.
If Council is satisfied with the RFP scope of services tasks, staff will request City Attorney Peter Beck to
review the document,including legal terms and conditions.
Financial Impact
The cost to hire a consultant for naming rights consulting services.
Attachments
■ Naming Rights Consulting Services Draft RFP
The Elk River Vision
A PehoMing community 2a itb revolutionary and spirited resourcefulness, exceptional POWERED By
service, and community engagement that encourages and inspires prosperity INAMIRE1
w/
city Naming Rights Consulting Services
EIL)k Request for Proposal
River
The City of Elk River is seeking qualified and experienced parties to submit a proposal to provide the
service and guidance necessary to acquire a naming rights agreement for its new, state-of-the-art
multipurpose recreational facility.
The facility, currently under construction, is one part of a major investment in the quality-of-life for Elk
River residents made possible by a$35 million Local Option Sales Tax Referendum. On November 6, 2018,
voters overwhelmingly decided to invest in a city plan of amenities that will benefit every generation. The
plan is known as Active Elk River and passed with 6,830 votes in support and 3,702 opposed. Details of the
plan and construction updates can be found at ActiveElkRiver.com.
The multipurpose facility will expand and improve recreation opportunities at the current Elk River Arena
by providing year-round ice, dry floor events, meeting and event space, a 30,000 square-foot turf field
house, catering cafe space for community events, and dedicated senior center facilities.
As part of the construction, the existing Elk River High School softball fields will be relocated across the
street to Lion John Weicht Park. Another component to the Active Elk River plan, Lion John Weicht Park
will become an active athletic complex with ball fields, a 100-person picnic pavilion, modern restrooms,
open green space, concessions, trails, and improved parking.
The selected service provider will be tasked with developing and implementing a strategic plan to identify
the number and market value of user/visitor impressions, develop pricing packages, marketing materials and
strategies, solicit potential naming-rights clients as well as assist in negotiating a naming client agreement.
The services shall be provided in accordance with the terms, conditions, and specifications contained within
this Consulting Services Request for Proposal.
Please submit your proposal by 4:00 p.m., Friday,January 2020, to
Michael Hecker, Parks and Recreation Director
13065 Orono Parkway
Elk River,MN 55330
Direct: 763.635.1161
mhecker(Da ElkRiverMN.gov
City of Elk River—Naming Rights Request for Proposal- 1
Project Understanding and Scope
While the sales tax revenue will be used to fund the construction of facility, the city wishes to enhance
revenue for additional value-added recreational services and opportunities and foster further community
identity through the use of the public-private partnership tool of offering sponsorship naming rights.
The selected service provider will work with city officials to identify sponsorship assets of the Parks and
Recreation Department, evaluate those assets relative to their sales value,identify and evaluate packaging
strategies,research prospects, construct a sponsor proposal format and develop a communications strategy
for naming sponsorship rights and advertising recognition.
The Consulting Service Request for Proposal is broken down into two phases. Sponsorship program
development is Phase One. The sales and professional assessments of the sponsorship assets identified in
Phase One is Phase Two
Phase One
The following is a detailed description of the proposed work plan to accomplish Phase One of this project.
Task 1:Value of Assets
The successful consultant will review the physical assets of the multipurpose facility and Lions John Weicht
Park amenities to estimate naming rights value. The primary assets to be evaluated include:
■ Multipurpose Facility Name
■ Ice Arena One
■ Ice Arena Two
■ Field House
■ Field House Dryland Area
■ Senior Center
■ Senior Center Flex Meeting Space
■ Cafe
■ Party/Meeting Rooms First Floor
■ Party/Meeting Rooms Second Floor
■ Lion John Weicht Park Concessions and Shelter Building
This task shall include the following:
a. Participating in meetings and conference calls with city officials,responding to questions and
preparing for the approach and allocate resources for the project task that includes determining the
on-site impressions and sponsorship value of the identified assets.
b. Documenting the methodology used to arrive at the estimated value of the facility assets,including
assessment factors unique to the Elk River region and market area.
c. Comparing the on-site impressions and value of the assets of the Elk River facilities calculated to
those of benchmark facilities around the region.
City of Elk River—Naming Rights Request for Proposal-2
d. Reviewing and analyzing similar government and private-sector naming rights initiatives and their
transferability to Elk River.
e. Recommending additional naming opportunities within the Active Elk River projects,including
pricing levels and terms above and beyond the overall naming rights for the multipurpose facility.
f. Documenting the potential challenges or issues for naming rights opportunities.
Task 2: Naming Rights Program Structure
The successful consultant will recommend a naming rights program structure that complements Active Elk
River and the region, especially the multipurpose facility. This task shall include the following:
a Recommending the best approach for maximizing revenues and other benefits. Specific
recommendations should include length of naming rights terms, category exclusivity and
compatibility guarantees, and discussion of possible reciprocal business activities.
b. Developing the advertising package by determining whether to sell each sponsor placement
individually or bundle the assets into packages.
c. Identifying any feasible alternative approaches.
Task 3: Strategic Plan Naming Proposal
The successful consultant will develop a naming rights proposal to identify and solicit potential clients. This
task should include the following:
a Recommending a process for soliciting and selecting naming rights clients.
b. Constructing a prospect list of organizations,businesses,individuals and nonprofits.
c. Research prospective companies in Elk River and the region that may be interested in naming
sponsorship packages.
d Review community input from meetings, requests made to city officials and from interviews with
business organizations to get leads of priority prospects.
e Implementing the timeline for marketing and negotiation of naming rights agreements with potential
clients.
£ Constructing a preliminary proposal that highlights the naming sponsorship opportunities.
g Developing the required letters of intent and associated agreements necessary to secure sponsors,
naming rights organizations and advertisers.
Phase One Duration
This contract shall remain in effect until August 1, 2020.
City of Elk River—Naming Rights Request for Proposal-3
Phase Two
The selected service provider will guide the sales of the sponsorship assets identified in Phase One of the
sponsorship program development.
The following is a detailed description of the proposed work plan to accomplish Phase Two of this project.
1. Implementing the marketing plan and contacting potential clients. Provide scenario perspectives of
the consultant making direct sales visits of priority prospects with some city official support. Also,
provide scenario perspectives of city officials identifying the sales with minimal support from the
consultant. Provide the professional consultant fee to fit these scenarios to be a base fee amount
and/or a graduated percentage level of sales.
2. Assisting the City of Elk River in negotiating agreements with potential clients and making
recommendations for adjustments of new information necessary to fit the market place as it evolves.
3. Assisting the City of Elk River in developing any necessary documents to implement individual
naming rights agreements.
4. Continuing to review community input to assess sponsorship related trends,requests made to city
officials from interviews with businesses and organizations in order to gather leads for priority
prospects.
Phase Two Duration
This contract shall begin August 1, 2020 and extend through December 31, 2021.
Consultant Submittal Requirements
Responses to this Request for Proposal must include the following information:
1. A cover letter indicating the firm's interest in the project and highlighting its qualifications to
perform the project.
2. A description of the firm's proposed methodology to completing the inventory and valuation of
assets; approach to sponsorship packaging and sponsorship engagement as well as the ROI.
3. The consultant's capabilities and experience in sponsorship inventory and valuation including
specific successful examples with municipalities and parks and recreation programs. Provide a
minimum of three references from within the past seven years. References should include
organization, contact person, email and telephone number.
4. Provide a minimum of two specific examples outlining the financial return on investment from
previous parks and recreation departments/municipalities with which you have consulted.
5. List of sub-consultants and other outside associates to be used by your consulting firm.
City of Elk River Requirements
The City of Elk River shall provide relevant requested information on all the above stated phases and tasks.
1. Providing insight into planning relative to the use of the multipurpose facility,Active Elk River,
knowledge of the community and in particular, user groups and stakeholders.
2. Provide the consultant office space when in the community working on this project.
City of Elk River—Naming Rights Request for Proposal-4
Professional Fees
Professional fees related to the above mentioned scope of work include all expenses and will be billed as a
lump sum commensurate to complete the work.
Phase One Total Proposed Fee (not to exceed) $
Phase One Total Miscellaneous Fees $
(mileage expenses, room and board)
Phase Two Total Proposed Fee (not to exceed) $
Details or Explanations for Phase Two (a base flat fee,percentage of sales, etc.)
Phase Two Total Miscellaneous Fees $
(mileage expenses, room and board)
Submitted By:
Name and Title Date
City of Elk River—Naming Rights Request for Proposal- 5