784-Hunter-Amendment 2HUNTER INTERESTS
I N C O R P O R A T E D
AMENDMENTNO. 2
TO AGREEMENT DATED NOVEMBER 29, 1999
FOR PROFESSIONAL CONSULTING SERVICES RELATED
TO
CONFERENCE CENTER/HOTEL
BETWEEN
THE CITY OF SANFORD
AND
HUNTER INTERESTS, INC.
This Agreement made on the 10t" day of September, 2001 between the CITY
OF SANFORD, FLORIDA (hereinafter called the CITY) and Hunter Interests Inc.
(hereinafter called CONSULTANT), is mutually agreed upon and declared an
authorized Amendment to an Agreement dated November 29, 1999, between the
parties, herein setting forth the scope, terms and conditions of the work herein
authorized.
WHEREAS, the CONSULTANT has completed a feasibility study and provided
RFQ and RFP services for a conference center/hotel development, and
WHEREAS, the CITY desires to retain the services of CONSULTANT to assist
the CITY in providing consulting services through the Designation Period.
NOW THEREFORE, the CITY AND CONSULTANT agree as follows:
SECTION 1: SERVICES
The CONSULTANT will perform those services and perform those tasks as
further described in the Scope of Services attached hereto as Exhibit "A" and
made hereof.
SECTION 2: TERM
This AOreement shall take effect on the date of execution by the CITY and shall
run for a period of five (5) months and, at the sole option of the CITY, may be
extended for a term determined at the sole discretion of lhe CITY.
URBAN ECONOMICS ° FINANCE " REAL ESTATE DEVELOPMENT
121 MAIN STREET * ANNAPOLIS, MARYLAND 21401 * (410) 269-0033 ° FAX (410) 280-9163
HUNTER INTERESTS
1 N C O R P O R A T E D
SECTION 3: COMPENSATION
The CITY agrees to compensate the CONSULTANT for professional services
called for under this Agreement on a "Fixed Fee" basis of Fifty Nine Thousand
($59,000.00) dollars plus direct expenses associated with the scope of work not to
exceed Five Thousand ($5,000.00) without prior written approval of the City
Manager.
SECTION 4: GENERAL
All other conditions and terms of the CITY OF SANFORD CONSULTING
SERVICE AGREEMENT between CITY and CONSULTANT, dated November
29, 1999, shall remain in full force and effect and made part of this Agreement.
The CONSULTANT agrees to initiate work under the Scope of Services promptly
upon receipt of authorization to proceed and to prosecute the work in a timely
manner until the work is complete.
Exhibit "A" Scope of Services
IN WITNESS WHEREOF, the parties hereto have made and executed this
Agreement the date written below for execution by the CITY.
CITY OF SANFORD,
FLORIDi~'
ATTEST& SEAL /yM~.anDe~~or,~Ci~M
":- "'' ATTEST & SEAL
'" - Don E. Hunter, ~esident
Hunter Interests Inc.
JE~ M. ~
ANNE ~U~E~ i ,2001
C0MMIS~0N ~ M~ I, ~03 Regul~ Meeting.
HUNTER INTERESTS
I N C O R P O R A T E D
Exhibit "A'
August 28, 2001
Mr. Tony VanDerworp
City Manager
P. O. Box 1788
Sanford, FL 32772-1788
Dear Tony:
As per our recent discussions, I have estimated work tasks and costs for the work
that I see ahead during the five-month designation period with Acquest/
Benchmark. I think I now have a fairly good understanding of how we work
together, Tony, and I have factored into my estimates the availability of your new
economic development officer who would be helping with data collection and
fieldwork.
During the past three to four months we have essentially been working without
compensation, except for direct expenses. I have enclosed an accounting of our
actual time charges during that period so that you can see the extent of the losses
we are absorbing. Regarding the next five months, I see our work involving the
10 tasks described below:
Task 1: Update Convention Center Market Analysis -- Tasks 1 through
4 are the economic analysis update work requested in their MOU. A more
detailed analysis of conference space demand will be conducted, and an
updated analysis of the competition wilt be prepared (including the Marriott,
Emerson, and any other planned additions to the meeting space inventory).
This analysis will need to withstand careful scrutiny by the developer, the
County, our competitors, and prospective bond underwriters and purchasers.
Task 2: Update Hotel Market Analysis -- Our previous hotel market
analysis will also be updated and presented in greater detail due to the status
of the project and the scrutiny that this analysis will undergo. More recent
data on North Orlando hotel market performance will be secured through
interviews and purchase of data from sources such as Smith Travel Research.
The demand profile will be updated using the product that the Acquest/
Benchmark team anticipates constructing, and utilization projections will be
made. A 10-year projection of ADR and occupancy characteristics will be
estimated, along with departmental income and expenses.
HUNTER INTERESTS
I N C O R P O R A T E D
T. VanDerworp
August 28, 2001
Page Two
Task 3: User Survey -- A separate new survey of potential conference
center users will be conducted under this task. This survey will focus on 1-4
corporations and Florida state associations. In addition to a mail/fax survey
with a newly designed survey instrument, extensive follow-up telephone calls
and face to face interviews will be conducted with corporate and association
executives, meeting planners, and sales/training personnel who are involved
in the planning and conduct of conferences, meetings, and training sessions
of all types. In addition to securing firm expressions of interest and
provisional commitments for facility usage, the HII professional staff will be
exploring corporate sponsorships and potential permanent arrangements for
continuous usage and possible participation in financing and/or outfitting the
new conference facilities.
Task 4: Report -- All work described in Tasks 1 through 3 above will be
summarized in a new technical market analysis report document. This report
will be suitable to fulfil MOU requirements of the developer, as well as assist
City and County decisions on public sector financial commitments.
Task 5: Financial Analysis Revisions -- This task anticipates review and
evaluation of numerous runs of the Acquest financial analysis model for the
project. If necessary, the HII hotel financial analysis model included in our
previous project documentation will also be rerun as a basis for discussion~
negotiations between public and private sector parreefs.
Task 6: Assist Public Funding -- Under this task HII professionals will
assist and support City/County staff in discussions with elected officials in
pursuit of binding public finance commitments.
Task 7: Coordination/Negotiation with Developer -- Mr. Hunter will be
involved in continuous discussions and negotiations with members of the
Acquest/Benchmark/Walbridge development team throughout the five-month
designation period.
Task 8: Meetings and Administration -- This task covers periodic
meetings in Sanford, Detroit, or elsewhere as required by City staff during
the five-month designation period.
HUNTER INTERESTS
I N C O R P O R A T E D
T. VanDerworp
August 28, 2001
Page Three
Task 9: Other Technical Work and Assignments -- In our experience,
numerous issues will emerge during the designation period. Under this task
the City will have some latitude to make additional assignments to HII as the
need arises (e.g., our recent evaluation and letter regarding the Emerson
project).
Task 10: Review of Development Agreements -- HII will review drafts of
the development agreement prepared by others, and will assist City staff in
negotiating changes as required by the City.
I have estimated below our costs for this work, Tony. Approximately 60% of this
budget is allocated to the updated market analysis work and the new user survey
in Task 1 through 4 above.
Cost Estimate
Task 1: Update Convention Center Market Analysis $ 9,000
Task 2: Update Hotel Market Analysis $10,000
Task3: User Survey $12,000
Task4: Report $ 5,000
Task 5: Financial Analysis Revisions $ 3,000
Task 6: Assist Public Funding $ 4,000
Task 7: Coordination/Negotiation with Developer $ 5,000
Task 8: Meetings and Administration $ 4,000
Task 9: Other Technical Work and Assignments $ 2,000
Task 10: Review of Developer Agreements $ 5,000
Subtotal: $59,000
Direct Expenses: (Travel subsistence, facsimile,
reproduction, commercial data &misc.) $ 5,000
Total: $64,000
It is understood by both parties that the cost estimates above are near the low end
of an estimated range of costs per task, and that cost estimating of this type of
work is difficult since many analysis, coordination, and negotiation details are
HUNTER INTERESTS
I N C O R P O R A T E D
T. VanDerworp
August 28, 2001
Page Four
unknown at the outset. A "fixed fee" contract has an absolute cap on costs, and in
the past HII was forced to work without compensation to complete all required
work. In such event both parties will consider additional amendments to avoid a
repeat of that situation.
Sincerely,
Donald E. Hunter
President