1-25-088 Hospitality Tax RFP.pdf

Request for Proposal

2025-2026 Competitive Funding Process Raleigh/Wake Hospitality Tax Funds

RFP # 25-088

Wake County, North Carolina Procurement Services

P.O. Box 550 Raleigh, North Carolina 27602

Proposals are due:

November 6, 2025 by 2pm EST

Pre-submittal meeting – September 15, 2025, 10am

REQUEST FOR PROPOSALS #25-088

HOSPITALITY TAX COMPETITIVE FUNDING PROCESS

Table of Contents

1.0 Introduction

1.1 Introduction

1.2 Wake County and City of Raleigh Background

1.3 Process Overview

1.4 Funding Available

1.5 Minimum Criteria

1.6 Proposed Schedule

2.0 Detailed Submittal Requirements

2.1 Proposal Format

2.2 Section 1: Executive Summary

2.3 Section 2: Project Overview and Objections

2.4 Section 3: Project Budget and Funding Sources

2.5 Section 4: Project Timeline

2.6 Section 5: Project Operating Plan

2.7 Section 6: Visitor Estimates

2.8 Section 7: Organizational Information

2.9 Attachments

3.0 Evaluation of Proposals

3.1 Evaluation Team

3.2 Evaluation Process

3.3 Evaluation Criteria

1 Introduction

1.1 Introduction

Wake County, North Carolina (“The County”) and the City of Raleigh, North Carolina (“The City”) (jointly referred to as “City/County”) are seeking proposals from organizations to develop partnerships and to leverage resources to support the development and enhancement of arts, cultural, sports or convention facilities in Wake County. Throughout this request for proposals (“RFP”), the “Proposer” refers to organizations that submit proposals as described within this RFP.

1.2 City/County Background

Wake County

Wake County has over 1.2 million residents, making it the most populous county in North Carolina. The County continues to grow quickly, adding about 66 people each day. Located in central North Carolina, Wake County covers 857 square miles. It includes 12 municipalities, with Raleigh serving as its county seat and largest city, and Cary being the second largest. For Fiscal Year 2026, Wake County Government approved a general fund budget of $2.1 billion and employs more than 5,000 benefit-eligible full-time positions.

The Wake County Board of Commissioners has seven members, each representing a specific district.

In April 2024, the Wake County Board of Commissioners approved the county’s first comprehensive strategic plan, which features six key focus areas and 24 goals. For more information about the County’s strategic plan, please visit wake.gov/strategic-plan.

City of Raleigh

The Capital City of Raleigh, North Carolina is one of the fastest growing communities in the nation and state’s second-largest city. Raleigh covers an area of more than 148 square miles and is home to a growing and diverse population quickly approaching 500,000 residents. For fiscal year 2026, the City of Raleigh approved a combined capital and operating budget totaling $1.78 billion and employs more than 4,500 full-time staff members.

The City of Raleigh is governed by an eight-member City Council comprised of the mayor, two at-large representatives, and five members serving districts that represent different geographic areas of the city.

In June 2025, the City Council adopted the FY 26-29 Strategic Plan to help guide the City’s work for the next several years. For more information about the City’s strategic plan, please visit https://raleighnc.gov/government/services/strategic-plan#paragraph--378329

1.3 Overview

In 1991, Wake County was authorized by North Carolina Law to levy a room occupancy tax and prepared food and beverage tax for the purposes of supporting a convention center, arena and other cultural, sports and arts activities. These funds (collectively referred to as “interlocal funds” or “hospitality taxes”) are governed through an Interlocal Agreement between the Wake County Board of Commissioner and the Raleigh City Council, which is regularly updated and amended to support new facility investments and renovations to existing facilities.

In 2017, a Small Capital Projects Fund was established to assist in the development of capital projects throughout Wake County that impact sports, arts, culture and convention related activities for visitors and residents. Wake County receives $2 million annually from the Room Occupancy and Food and Beverage Tax Revenues to support the Small Capital Projects Fund. Wake County distributes these funds through a competitive process every two to three years. Funding decisions for the Small Capital Projects fund must be authorized by the Wake County Board of Commissioners

The most recent amendment to the Interlocal Agreement between City/County (23rd Amendment) executed in 2023 continued Small Capital funding at $2 million annually and established an additional $15.5 million over four years (FY 2024 – FY 2027) for a competitive funding process to be held in late calendar year 2025.

The amendment requires the process for selecting recipients of the $15.5 million include staff from Wake County and the City of Raleigh, and that final award decisions be subject to approval of the Wake County Board of Commissioners and the Raleigh City Council. The amendment left the decision of whether to combine the Small Capital Funding process with distribution of the additional $15.5 million to the City/County Managers.

2025-2026 Funding Process

To simplify the process for applicants, the City and County managers elected to hold a joint application process. This RFP is designed to support selection of recipients for award of the full $23.5 million, but the Board of Commissioners will retain sole discretion in final award decisions for the Small Capital Funding totaling $8 million (i.e. four years of Small Capital Funding). Final award decisions will be made as follows:

$8 million to be awarded by vote of the Wake County Board of Commissioners (“County only” funds hereafter)

$15.5 million to be awarded by joint vote of the Wake County Board of Commissioners Raleigh City Council (“Joint” funds hereafter).

An evaluation team consisting of staff from Wake County, the City of Raleigh, and community stakeholder representatives will review and evaluate all project submittals. Decisions about which source of funds (joint or County only funds) to use for recommended projects will be made as part of the final recommendations made by staff to the elected boards at the end of the evaluation process. Staff will make recommendations for the Joint funds first, and the City of Raleigh staff will not be involved in developing funding recommendations for the County only funds.

1.4 Funding Available

There is a total of $23,500,000 million available. The maximum award is anticipated to be $5,500,000, but award amounts may vary based upon the number and quality of proposals received and the needs of individual projects. The request for hospitality tax funding must be less than 50% of the total anticipated capital costs for the project. Proposers must be able to demonstrate commitment of at least half of the non-hospitality tax funding upon submittal of their proposal.

Projects selected for funding will enter into a funding agreement with Wake County. Payment will be contingent upon approval of the funding agreement and the terms established in the agreement for each project. It is anticipated that funding for approved projects will not be distributed until the organization can demonstrate that other sources of funding for the approved project are obtained. Interlocal funds are to be the last dollars into the project.

1.5 Minimum Criteria

To be eligible for consideration, each proposal must meet the following minimum criteria:

The project must be fully located within Wake County.

The project must be consistent with the statutorily defined purposes of the funding related to convention, arts, culture or sports facilities. The applicable statute is included as Attachment 1 to this RFP.

The project must be capital in nature with a minimum value of $100,000.

The request for interlocal funding must be less than 50% of the total capital project cost.

There are no restrictions on the type of organization eligible for funding through this process, so long as the project itself meets the criteria above.

1.6 Proposed Schedule

The table below outlines the proposed schedule for the RFP process. All dates are subject to change at the County's discretion. Any updates to the schedule will be promptly communicated to all prospective applicants.

Date Action

September 8, 2025 Distribution of RFP, posted on wake.gov

September 15, 2025, 10:00 AM EST

Pre-submittal virtual meeting:

September 19, 2025, by 5:00 PM EST

General clarifications and questions submitted through the WC Bonfire Portal.

September 24, 2025 Addendum issued - response to questions from pre-submittal meeting and general clarifications

November 6, 2025 by

2:00 PM EST

Electronic submittals due via WC Bonfire Portal by 2 PM EST

November/ December

Evaluation panel reviews submittals and receives presentations from proposers

December 2025 Evaluation Panel Scores and Ranks Proposals

Early February 2026 Board of Commissioners receives staff recommendations.

Mid-February 2026 Board of Commissioners to consider approval of grant awards.

Mid-February 2026 City Council to consider approval of grant awards

2.1 Proposal Format

Proposers shall prepare their proposals following the instructions outlined in this section. Proposals should be clear and concise, offering a straightforward description of the Proposer's ability to meet the RFP requirements. The utmost attention should be given to accuracy, completeness, and clarity of content. All parts, pages, figures, and tables should be numbered and clearly labeled.

All responses to this RFP must be received electronically no later than November 6, 2025, at 2:00 PM EST and submitted in the Wake County Bonfire (or Euna Procurement) Portal. Proposals received after the deadline will not be accepted.

The Proposal should be organized into the following major sections with tabs for each section:

Order Section Number Section Title and Content 1 N/A Title Page

2 N/A Letter of Transmittal

3 N/A Table of Contents

4 1.0 Executive Summary

5 2.0 Project Overview and Objectives

6 3.0 Project Budget and Funding Sources

7 4.0 Project Timeline

8 5.0 Project Operating Plan

9 6.0 Visitor Estimates

10 7.0 Organizational Information

Instructions for each section of this RFP response are provided in the subsequent sections. Keep your response focused on relevant details and avoid including marketing or sales information.

Formatting requirements include:

Use standard, readable fonts (e.g., Times New Roman, Arial, Calibri, Aptos)

The minimum font size in the proposal body is 10.

Spacing may be single-spaced, 1.15, or 1.5.

Minimum margins are 1 inch on all sides

Include project title, organization name, and page numbers on each page in the header and/or footer.

Attachments:

o There are no format requirements for attachments; however, all attachments must be readable when printed, including PDF files.

o There are no limits on the number of attachment files.

2 Detailed Submittal Requirements

2.2 Section 1.0 Executive Summary

(Proposal Section 1.0) This section should provide a brief overview of the project proposal. The executive summary must, at a minimum, introduce the organization, identify the need or demand that will be addressed, the proposed capital project, estimated costs, and the grant amount requested from interlocal funds. The executive summary should also include the primary contact person for the RFP proposal. Contact details should include a name, title, a valid email address, and a phone number.

2.3 Section 2.0: Project Overview and Objectives

(Proposal Section 2.0) This section of the response should include a description of the Proposer’s overall project proposal and should include any graphics that depict the scope of the project if it involves design and construction of a new building, building expansion or renovation. Scaled floor plans, site plans, elevations or artistic rendering of proposed building improvement if available should also be included in the response. The project must be consistent permissible use of the interlocal funds in the applicable state statutes (arts, sports, cultural, or convention facilities, see Attachment 1).

Additional information in this section should include:

1. An analysis of the demand or unmet need, inadequate facilities, or future needs of sports, cultural, convention and arts programs in Wake County and the anticipated number of projected visitors / participants served.

2. A statement of the proposed project plan’s effectiveness in addressing community needs in comparison to existing facilities. Include whether delays in the project impact its viability.

3. Clear demonstration regarding the need for capital investment for project success. Should articulate if components of project would be omitted if interlocal funding is not provided (i.e., clarify if and how the project scope would be impacted if interlocal funding is not provided).

4. It should also include data to demonstrate a clear link between the project initiative and the resulting increase in overnight room stays and food and beverage purchases.

5. A description of how the proposer will collaborate with other organizations (government, non-profit, and corporate) to achieve the desired outcomes resulting in lasting community impact.

6. A description of any community engagement or outreach efforts conducted related to project planning. Include a description of anticipated demographics impacted by the project including who benefits, who is burdened and any potential unintended consequences.

7. How the proposer would describe the ability for the project to attract visitors to Wake County and provide a quality-of-life amenity to residents.

8. A description of how the project is consistent with the Wake County Room Occupancy and Prepared Food and Beverage Stakeholder Operating Principles as identified in Attachment 2.

2.4 Section 3.0 Project Budget and Funding Sources

(Proposal Section 3.0) Each proposal must provide the following information about the project budget and funding sources, so that the evaluation team can evaluate the Proposer’s ability to support the commitments set forth in response to the RFP. The evaluation team, at its option, may require a Proposer to provide additional support or clarify requested information.

All sources of funding for the proposed project, and year of commitment, and status.

o Note if the funding sources are planned, pending, committed, or received.

o For committed or received sources, remit evidence of commitment or receipt.

o Note: The proposal should include funding for the current project only and should not include prior phases and should demonstrate current commitment for a least half of non-interlocal funding. It is anticipated that interlocal funding for approved projects will not be distributed until the organization can demonstrate that other sources of funding for the approved project are obtained. Interlocal funds are to be the last dollars into the project.

Include the project’s public to private investment ratio

Schedule of expenditures for the project organized by expenditure category using the format below.

Include who prepared the cost estimates and note if an inflation factor has been applied. The fiscal years can be adjusted to account for the specific project, but all expenditures should be organized into these categories. Clarify “other” expenditures as needed.

Expenditure FY 2027 FY 2028 FY 2029 Total Planning and Design Land Acquisition/Right of Way Construction Equipment / Furnishings Other Contingency Total

Describe any impacts on existing infrastructure, roads, water, and sewer facilities

2.5 Section 4.0 Project Timeline

(Proposal Section 4.0) Each proposal must provide the following information about the project timeline, so the City/County can evaluate the Proposer’s ability to support the implementation and feasibility of the project.

It is desired that all projects can secure a construction contract or building permit within 12 months of project approval and projects are complete within 36 months of approval. Make sure to include any actions already taken, as well as future actions. Any site plan approvals or zoning variances required for the project shall be noted and the status of those activities included in this section. The City/County may require a Proposer to provide additional support or clarify requested information.

Project Action Start Date Finish Date Study and Analysis of the Project Site Identification Land/Site Acquisition Architectural/Engineering Studies Facility Construction Equipment Purchase Other (describe)

2.6 Section 5.0 Project Operating Plan

(Proposal Section 5.0) Each proposal must include a ten-year operating budget, showing anticipated revenues and expenditures to demonstrate the long-term viability of the project operations and protect the interlocal investment.

Describe the annual operating plan in detail. Provide information on the plan for management and marketing for the project. Include information related to the approach and funding commitment to facility maintenance and upkeep to ensure the ongoing operating viability and sustainability of the project.

2.7 Section 6.0 Visitor Estimates

(Proposal Section 6.0) Each proposal must provide estimated visitor information, including the estimated number of day visitors (from within the County and within a 75-mile radius of the facility) and overnight visitors.

Using the estimated visitor counts and formulas provided in Attachment 4: Visitor Estimates and Return on Investment, proposals should include the estimated annual economic impact of visitors for the project for the first seven (7) years of operation after completion of the capital investment and the estimated return on investment of the interlocal investment based on occupancy, prepared food and beverage taxes collected.

Visitor and return on investment estimates provided in the proposal will be used as the basis for performance targets included in the funding agreement for funded projects. A narrative explaining assumptions and the basis for the estimates entered should be included with Attachment 4.

Proposals may also include additional calculations of visitor estimates or project financial impacts if available.

Proposals should include any additional performance measures and anticipated targets that will demonstrate the success of the project, the impact on visitation and the impact on quality of life for Wake residents.

2.8 Section 7.0 Organizational Information

(Proposal Section 7.0) Each proposal must provide the following information about the Proposer, so the team can evaluate the Proposer’s ability to support the commitments set forth in response to the RFP. The team, at its option, may require a Proposer to provide additional support or clarify requested information.

Background

1. How long the proposer been in business.

2. A brief description of the organization size and organizational structure. Include a list of the Board of Directors if applicable.

3. A list of all executive officers of the organization. If the organization is a statewide or national organization, submit the local chapter information.

4. Any material (including letters of support or endorsement) indicative of the Proposer’s capabilities to implement the project.

5. Identify any litigation or governmental or regulatory action pending against your organization.

6. A description of contractual relationships, if any, with other organizations that would be a conflict of interest or appearance of conflicts of interest in partnering with Wake County to deliver the capital project.

Experience

1. Identify the proposed team indicating who is responsible for the key roles of the proposed project; provide a simple organizational chart showing lines of communication and levels of authority.

Similar Project

1. Provide a description of a similar project or projects most like the one described in the proposal for which the organization has been responsible.

Finances

1. Submit most recent copy of IRS form 990 or applicable tax return if applicable to the Proposer’s

Organization. For non-public tax returns, See the Confidential Information/Public Records Law section in the Terms and Conditions.

2. Please provide one copy of the most recent audit and corresponding management letter if your agency received one.

a. If your organization DOES NOT have an audit, review, or compilation submit:

i. A completed Audit Form (Attachment 3) using figures from year-end financial statements. Attachment 3 is available electronically upon request.

ii. A notarized letter from your treasurer confirming the accuracy of the statements

2.9 Attachments

Proposers may attach any documents that support the project. There are no format requirements for any attachments, and no limits on the number of attachment files. All attachments must be readable if printed, including PDF attachments.

Required attachments include:

Attach the most recent copy of IRS Form 990 or the relevant tax return.

Attach a copy of the most recent audit and management letter.

o If your organization does not have an audit, review, or compilation, then attach the following:

A completed Audit Form (Attachment 3) with figures from year-end financial statements.

A notarized letter from your treasurer verifying the accuracy of the statements.

Other attachments may include:

If applicable and available, and if the project involves the design and construction of a new building, building expansion, or renovation, include scaled floor plans, site plans, elevations, or artistic renderings of the proposed building improvements.

If applicable and available, proposers are encouraged but not required to include a zoning verification letter for the project site from the local planning authority.

If applicable and available, provide a detailed budget summary that provides additional information supporting the capital project expenditure plan.

If applicable and available, and if other funding sources are confirmed in the financial plan(s), include evidence of commitment supporting your proposal as attachments.

Any material, including letters of support or endorsement from clients, that demonstrates the Proposer's ability to execute the capital project.

3 Evaluation of Proposals

3.1 Evaluation Team

The City and County have formed an evaluation team consisting of staff from Wake County, the City of Raleigh, and community representatives to evaluate and score the proposals, conduct Proposer interviews, and provide funding recommendations to the Wake County Board of Commissioners and the Raleigh City Council. The team comprises members with a broad range of experience and expertise, representing the following organizations and departments below:

Wake County Staff County Manager’s Office Budget and Management Services Facilities, Design, and Construction

City of Raleigh Staff City Manager’s Office Finance Convention Center Complex

Community and Stakeholder Group Representatives

Greater Raleigh Convention and Visitors Bureau United Arts Representative Wake County Hospitality Alliance Wake County Municipal Representatives

3.2 Evaluation Process

The evaluation team will review and score all proposals using the evaluation criteria described below in section 3.3. This includes participation in any Proposer presentations to be scheduled and conducted as part of the evaluation process. The final recommendations for the elected boards will be developed in two phases.

Phase 1 Recommendations (Joint City/County Funding of $15.5 Million) Once all proposals have been evaluated and scored by the full evaluation panel, the team will develop recommendations for the $15.5 million to be presented to the Wake County Board of Commissioners and the Raleigh City Council for their consideration.

Phase 2 Recommendations (County Only funding of $8 million) After the full evaluation panel has agreed on recommendations to award the joint $15.5 million, the panel, excluding the City of Raleigh representatives, will reconvene to develop recommendations for the remaining $8 million to be presented to the Wake County Board of Commissioners for consideration.

This process does not preclude a project from being recommended for funding from both sources.

3.3 Evaluation and Scoring Criteria

Proposals submitted in response to this RFP will be evaluated and scored using the following criteria.

Return on Investment: The proposal demonstrates a direct link between the project and increases in overnight room stays, food and beverage purchases, and overall tourism in Wake County. Higher scores will be given to proposals that demonstrate larger and more certain returns.

Facility Demand: The proposal includes clear analysis that articulates the demand or unmet need, inadequate facilities, or emerging need, and details how the project will address the need in comparison to existing facilities.

Project Feasibility and Viability: The proposal demonstrates there are resources, partnerships, and expertise in place to execute the project and successfully operate and market the facility for years to come. Higher scores will be given to projects that:

Have secured more of the required non-interlocal funding at the time of submittal

Demonstrate lower reliance on interlocal funding to execute the project

Include a broader mix of committed funding partners, demonstrating project buy-in and support

Project Readiness: The project is ready, or nearly ready to enter the construction phase. Higher scores will be given to projects that are “shovel ready” (land is acquired and designs are complete or in progress).

Alignment with Stakeholder Principles: The project aligns with and supports the Stakeholder Operating Principles detailed in Attachment 2.