Request for Proposals

HOTEL DEVELOPMENT OPPORTUNITY

AT EUGENE AIRPORT

Solicitation Number RFP 2022200046

Due Date and Time:

Tuesday, June 21, 2022 4:00 PM PST

CITY OF EUGENE

Central Services

Finance Division/Purchasing

100 West 10th Avenue, Suite 400

Eugene, Oregon 97401

Telephone: (541) 682-5055

RFP 2022200046 Hotel Development Opportunity at Eugene Airport 1

I. REQUEST FOR PROPOSALS

CITY OF EUGENE REQUEST FOR PROPOSALS

Solicitation Number RFP 2022200046

Notice to Proposers Pursuant to ORS 279B.060 and City of Eugene Administrative Order 44-14-08F, Public

Contracting Rule (City Rule) 137-047-0260, sealed proposals for an opportunity to develop a hotel near the Eugene Airport for the City of Eugene will be accepted by the Purchasing Office, 100 West 10th Avenue, Suite 400, Eugene, Oregon 97401 until Tuesday, June 21, 2022 4:00 PM

PST. Proposals will not be opened publicly however a list of proposals received will be made available within one day of opening. Proposals will not be accepted after the Request for

Proposals (RFP) closing time and date. Proposals shall be valid for 120 days after opening unless otherwise specified in the specifications. This Request for Proposals does not commit the City to pay any costs incurred by any proposer in the submission of a proposal.

Project Description The City of Eugene, as owners and operators of the Eugene Airport (EUG) is seeking written proposals from qualified developers to enter into a long-term ground lease agreement and an airport concessionaire agreement to design, finance, build, and operate an upper midscale to upscale lodging facility on a site adjacent to the Eugene Airport.

Solicitation Documents Solicitation documents may be examined electronically by logging in to OregonBuys.

To view City of Eugene solicitations:

• Scroll to Supplier Activities

• Click the Open Bids icon

• Click the Advanced Search button

• Click Select Organization

• Select City of Eugene

• Click Search\Click the Bid Solicitation # to view solicitation details and documents

A copy of the Solicitation may be also be obtained by emailing the Purchasing Analyst shown below.

Proposers may email their proposals in a pdf format to shubbell@eugene-or.gov or may have their proposal delivered via UPS or Fed Ex to Shawn Hubbell; City of Eugene Purchasing; 100

W. 10th Ave Suite 400, Eugene, OR 97401. Letters of Interest should be sent to the email address noted above.

Pre-Closing Meeting There is not a pre-closing meeting scheduled, however parties that have expressed interest may contact Mariah Mulcahy at mmulcahy@eugene-or.gov or 541-682-5063 to schedule a tour prior to June10, 2022.

Dated: May 5, 2022

Shawn Hubbell

Purchasing Analyst

City of Eugene

541-682-5050 shubbelll@eugene-or.gov

RFP 2022200046 Hotel Development Opportunity at Eugene Airport 2 https://oregonbuys.gov/bso/ mailto:shubbell@eugene-or.gov mailto:mmulcahy@eugene-or.gov

II. INSTRUCTIONS TO PROPOSERS

1.0 STANDARD PROPOSAL FORM

1.1. Proposals shall be submitted with the Standard Proposal Form identical to the form provided by the City. The proposer shall make no alterations or additional stipulations on the Standard Proposal Form nor qualify the proposal in any other manner.

Alteration of any part of the Standard Proposal Form content may cause the proposal to be considered non-responsive.

1.2. All blanks on the Standard Proposal Form shall be filled in electronically, by typewriter or manually, in ink. Mistakes should be crossed out and corrections typed or written in ink and initialed by the party signing the proposal. No erasures are permitted. The omission of any required information or forms may invalidate a proposal.

1.3. Complete sets of RFP documents shall be used in preparing proposals.

2.0 SUBMISSION

2.1 Proposers may email their proposals in a pdf format to shubbell@eugene-or.gov or may have their proposal delivered via UPS or Fed Ex to Shawn Hubbell; City of

Eugene Purchasing; 100 W. 10th Ave Suite 400, Eugene, OR 97401. Letters of

Interest should be sent to the email address noted above. Proposals received after the closing time/date will not be considered.

2.2 Proposer is responsible for submitting their proposal prior to the closing time and date.

Late proposals will not be accepted. The City is not responsible for any delivery delays including computer/software issues or delivery service issues.

2.3 Oral, telephonic, telegraphic, or faxed proposals are invalid and will not be considered.

3.0 SOLICITATION CLARIFICATION & CHANGE REQUESTS

A prospective Proposer may request that the City clarify or change any provision of the

Solicitation Document at least ten days prior to the RFP closing date and time. The City’s clarification to a Proposer, whether orally or in writing, does not change the Solicitation

Document and is not binding on the City unless the City amends the Solicitation Document by

Addendum.

3.1 Any requests for clarification regarding any provision of the RFP shall be delivered to the City’s Purchasing Analyst by email, in conformance with City Rule 137-047-

0730(6).

3.2 Any requests for change of the requirements or specifications shall be delivered to the

City’s Purchasing Analyst via email not later than ten days prior to the RFP closing date and time.

3.3 A request for change shall be marked “RFP Provision Request for Change” and include the solicitation number and title along with a statement of the requested change(s) to the Requirements/Specifications, together with the reason for the requested change.

3.4 Contents of questions, clarifications, modifications, or substitutions shall include the following, as applicable:

RFP 2022200046 Hotel Development Opportunity at Eugene Airport 3 mailto:shubbell@eugene-or.gov

3.4.1 The solicitation number and title

3.4.2 A reference to the page and item being addressed

3.4.3 The reason and any proposed alterations

3.5 Proposals containing questions, clarifications, modifications, or substitutions included with the response and not submitted according to these instructions may be considered non-responsive.

4.0 SOLICITATION PROTESTS

A prospective Proposer may protest the Procurement process or the Solicitation Document for a Contract solicited under 137-047-0730. Before seeking judicial review, a prospective

Proposer must file a Written protest with the City and exhaust all administrative remedies.

Protests must be submitted in writing to the City’s Purchasing Manager no less than five days prior to solicitation closing. The protest should be emailed to

Eugene.Purchasing@ci.eugene.or.us, clearly identified as a protest and identifying the solicitation being protested. The Purchasing Manager shall consider the protest if it is timely filed in accordance with City Rule 137-047-0730 and contains the following information: 1) sufficient information to identify the solicitation that is the subject of the protest; 2) the grounds that demonstrate how the procurement process is contrary to law or how the solicitation document is unnecessarily restrictive, is legally flawed or improperly specifies a brand name;

3) evidence or supporting documentation that supports the grounds on which the protest is based; and 4) the relief sought; 5) a statement of the desired changes to the Procurement process or the Solicitation Document that the prospective Offeror believes will remedy the conditions upon which the prospective Offeror based its protest. The Purchasing Manager shall issue a decision on the protest no fewer than three (3) business days before the solicitation closing, unless a written determination is made by the Purchasing Manager that the public interest requires a shorter time limit.

5.0 ADDENDA AND INTERPRETATIONS

5.1 Statements by City staff or its representatives are not binding on City, unless confirmed by written addendum. Addenda will issue and proposers shall receive addenda per City Rule 137-047-0430, and as follows: City will not mail notice of addenda, but will publish any addenda on the OregonBuys site. Addenda may be downloaded from the OregonBuys site. Proposers should frequently check the

OregonBuys site until closing (i.e., at least once weekly until the week of closing, and at least once daily the week of the closing period).

5.2 Any written addendum issued which includes changes, corrections, additions, interpretations, or information, and issued in accordance with City Rule 137-047-

0430(3) shall be binding upon the proposer.

6.0 NONDISCRIMINATION

Submittal of a proposal in response to this RFP evidences proposer’s agreement that, in performing the work called for by this RFP and in securing and supplying materials, proposer has not and will not discriminate against: 1) any person on the basis of race, color, religious creed, political ideas, sex, sexual orientation, source of income, age, marital status, physical or mental handicap, national origin or ancestry unless the reasonable demands of employment are such that they cannot be met by a person with a particular physical or mental handicap; and 2) a subcontractor in the awarding of a subcontract because the subcontractor is a minority, woman, or emerging small business enterprise certified under ORS 200.055, or

RFP 2022200046 Hotel Development Opportunity at Eugene Airport 4 mailto:Eugene.Purchasing@ci.eugene.or.us https://oregonbuys.gov/bso/ https://oregonbuys.gov/bso/ https://oregonbuys.gov/bso/ a business enterprise that is owned or controlled by, or that employs a disable veteran as defined in ORS 408.225.

7.0 TITLE VI SOLICITATION NOTICE

The City of Eugene, in accordance with the provisions of Title VI of the Civil Rights Act of 1964

(78 Stat. 252, 42 USC §§ 2000d to 2000d-4) and the Regulations, hereby notifies all bidders or offerors that it will affirmatively ensure that any contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, or national origin in consideration for an award.

8.0 PREPARATION OF PROPOSALS

Proposers are expected to examine the specifications, schedules and all instructions. The

City is not liable for costs associated with preparation of proposals in response to this RFP.

9.0 EMPLOYEES NOT TO BENEFIT

No employee or elected official of the City shall be permitted to receive any share or part of the contract resulting from this RFP or any benefit that may arise there from.

10.0 CITY FURNISHED PROPERTY

No material, labor or facilities will be furnished by City unless otherwise provided for in this

RFP.

11.0 PERFORMANCE BOND

Not required at time of RFP submission. May be negotiated during contracting.

12.0 PROPOSAL BOND

Not required.

13.0 RESERVED RIGHTS

The City reserves the right:

13.1 To reject any proposal not in compliance with all prescribed public bidding procedures and requirements.

13.2 To reject for good cause any or all proposals upon the City’s written finding that it is in the public interest to do so.

13.3 To reject any and all proposals not meeting or differing from the specifications set forth herein.

13.4 To seek clarifications of each proposal.

13.5 To negotiate a final contract that is in the best interest of the City.

13.6 To waive any or all informalities in the proposals submitted.

13.7 To consider the competency and responsibility of proposers in making any awards.

13.8 In the event that two or more proposals are identical in price, fitness, availability and quality, award shall be made in accordance with City Rule 137-046-0300.

13.9 In the event any proposer or proposers to whom a contract is awarded shall default in executing said formal contract or in furnishing a satisfactory performance bond within

RFP 2022200046 Hotel Development Opportunity at Eugene Airport 5 the time and manner herein after specified, to re-award the contract to another proposer or proposers.

13.10 To extend the deadline for submitting proposals, in according with City Rule 137-047-

0430.

13.11 To negotiate additions or deletions to goods and services requested.

14.0 CONSIDERATION OF PROPOSALS

14.1 A list of proposals received will be made available within one day of opening.

Proposals will not be opened publicly.

14.2 The City intends to rank the proposals based on scores using the criteria listed in

Section VI. Upon ranking the City may choose to create a Competitive Range of the top scored proposals for further evaluation, or may commence negotiations pursuant to City Contracting Rule 137-047-0262.

14.3 The City shall provide written notice by email of the City’s intent to award the contract.

Award shall not be final until the later of the following:

14.3.1 Seven (7) calendar days after the date of the Notice of Intent to Award; or

14.3.2 City provides a written response to all timely filed protest, if any, that denies the protest and affirms the award.

14.3.3 Proposers may protest the intended contract award in accordance with City

Rule 137-047-0740.

15.0 CONTRACT AWARD

Submittal of a proposal evidences proposer’s intent to enter into contract negotiations with the

City. During negotiations, the City may require any additional information it deems necessary to clarify Proposer’s approach and City’s understanding of the offer. Any changes agreed upon during Contract negotiations will become part of the final Contract.

16.0 PUBLIC RECORDS

16.1 This RFP and one (1) copy of each original proposal received in response to it, together with copies of all documents pertaining to the Award of a contract, shall be kept by the City of Eugene Purchasing Office and made a part of a file or record which shall be open to public inspection. If a proposal contains any information that is considered trade secret under ORS 192.345(2), each sheet of such information must be marked with the following;

“This data constitutes a trade secret under ORS 192.345(2), and shall not be disclosed except in accordance with the Oregon Public Records Law, ORS 192.“

The Oregon Public Records Law exempts from disclosure only bona fide trade secrets, and the exemption from disclosure applies only “unless the public interest requires disclosure in the particular instance.“ ORS 192.345(2). Therefore, non-disclosure of documents or any portion of a document submitted as part of a proposal may depend upon official or judicial determinations made pursuant to the Public Records Law.

16.2 The above restrictions may not include cost or price information which must be open to public inspection.

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III. SUSTAINABILITY & SOCIAL EQUITY

The City is interested in products and services that have a reduced impact on human health and the environment and that more fully support communities and economies when compared to competing products and services serving the same purpose. For more information regarding sustainability in procurement and related City policy and plans, please refer to the City’s

Sustainable Purchasing website at http://www.eugene-or.gov/sustainpurch. The awarded proposer will be expected to support the City’s goals by implementing the following strategies where applicable.

1.0 WASTE REDUCTION

1.1 Pursuant to City Zero Waste efforts, the City aims to prevent waste where possible. In order to increase efficient use of resources, the awarded proposer shall adhere to the following items as applicable.

1.2 Unnecessary packaging for goods, beyond packaging compliance or practical safe shipping methods, shall be reduced. Proposer to ship goods utilizing one or more of the following methods:

1.2.1 Ship products in reusable, refillable, or returnable containers. For example, reusable trays or totes, which can be stored and returned;

1.2.2 Minimal packaging material used inside containers. This includes eliminating or reducing the amount of non-recyclable bubble wrap, foam pellets or other like material;

1.2.3 Eliminate non-essential parts of packaging, such as individual wrapping of components;

1.2.4 Use packaging made with recycled content, biodegradable, and/or non-toxic materials.

1.2.5 No point of purchase material or promotional literature.

1.3 The awarded proposer is to duplex all paper materials that are prepared for the City under the contract, whether such materials are printed or copied, except when impracticable to do so due to the nature of the product being produced.

1.4 Contractor is expected to prevent, reduce, recycle or otherwise divert waste generated from the provision of services procured by the City. City may request information about diversion tactics utilized and quantities of waste materials diverted.

2.0 IDLING REDUCTION

2.1 In the interest of reducing air and noise pollution and promoting energy conservation, all gasoline and diesel-powered vehicles and equipment shall be idled only as necessary to perform the required duties, including delivery, and for the essential function(s) of the equipment. A driver of a vehicle must turn off the engine upon stopping at the destination, and must not cause or allow an engine to idle at any location for more than 20 seconds. This idling policy applies except in the following situations:

2.1.1 The health and safety of employees, sub-contractors or public is compromised in turning off the vehicle.

2.1.2 The engine is required to power auxiliary equipment (e.g. hoist, lift platforms, hydraulic tools, inverters, compactors, medical equipment, specialized public safety radio communication and computer systems, etc.)

2.1.3 Vehicle/equipment manufacturer requires additional idle time for warm up or cool down for efficient and proper mechanical or functional operation of the unit.

RFP 2022200046 Hotel Development Opportunity at Eugene Airport 7 http://www.eugene-or.gov/sustainpurch

3.0 ENVIRONMENTALLY PREFERRED PRODUCTS

3.1 To promote and encourage environmentally sustainable practices for companies doing business with the City, the City requests vendors under City contract use environmentally preferable products in production of City work products.

3.2 The awarded proposer should use environmentally preferable materials that meet performance requirements wherever practical in the fulfillment of this agreement.

Environmentally preferable products and services have characteristics that include but are not limited to the following:

• Energy Efficient

• Reusable or upgradeable

• Recyclable

• Contain post-consumer recycled materials

• Produce fewer polluting by-products and/or safety hazards during manufacture, use or disposal, and/or

• Are certified by an independent accredited third-party program such as EcoLogo or ENERGY STAR.

3.3 The City desires the use of post-consumer recycled content, chlorine-free paper to encourage environmentally preferable practices for City business wherever practical in the fulfillment of the scope of work.

4.0 SOCIAL EQUITY

4.1 Economic prosperity through diversity and collaboration is fundamental to the Equity in Contracting program. Part of Eugene’s City Council Vision states that we will

“Encourage a strong, sustainable and vibrant economy, fully utilizing our educational and cultural assets, so that every person has an opportunity to achieve financial security.” The program aims to reduce barriers for local, small, minority and women-owned businesses to leverage all that our community has to offer, strengthening the business community as a whole.

4.2 The City supports the utilization of Minority, Women, Emerging Small Businesses

(M/W/ESB), local businesses, Disadvantaged Business Enterprises and Qualified

Rehabilitation Facilities (QRF) at both a prime and subcontracting and/or supply chain level. The City encourages eligible suppliers to gain certification and encourages the awarded proposer to use the following voluntary practices to promote open competitive opportunities for disadvantaged businesses in the fulfillment of the scope of work:

4.2.1 Access lists of certified minority, women, emerging small business or disadvantaged business enterprises from the Certification Office of Business

Inclusion and Diversity (COBID) by visiting their website at:

https://oregon4biz.diversitysoftware.com/FrontEnd/VendorSearchPublic.asp to find certified businesses from whom to procure products or services.

4.2.2 Visit the Oregon State Qualified Rehabilitation Facilities Program website at http://dasapp.oregon.gov/qrf/index.aspx to search for Qualified

Rehabilitation Facilities from whom to procure products or services.

RFP 2022200046 Hotel Development Opportunity at Eugene Airport 8 https://oregon4biz.diversitysoftware.com/FrontEnd/VendorSearchPublic.asp http://dasapp.oregon.gov/qrf/index.aspx

5.0 ACDBE PARTICIPATION

The evaluation of the Airport Concessions Disadvantaged Business Enterprise (ACDBE)

Program Participation measures the vendor’s experience in promoting small business participation as subcontractors and suppliers and their future plans to increase participation.

To be recognized as ACDBE a business must be certified as an ACDBE or in the process of certification by the State of Oregon, Cert i f icat ion Off ice for Business Inclusion and Diversity (COBID). Instructions on how to apply for ACDBE certification are available at the following website: http://www.oregon4biz.com/How-We-Can-Help/COBID/

For the purpose of the resulting contract, City will recognize firms that are certified as Airport

Concession Disadvantage Business Enterprise (ACDBE) or firms that are Disadvantage

Business Enterprise (DBE) and are in the process of obtaining further certification as ACDBE through the Certification Office for Business Inclusion and Diversity (COBID).

RFP 2022200046 Hotel Development Opportunity at Eugene Airport 9 http://www.oregon4biz.com/How-We-Can-Help/COBID/

IV. ANTICIPATED PROPOSAL SCHEDULE

The following is the anticipated schedule for submission and review of proposals and award of the desired contract. This schedule is subject to change by the City in its sole discretion. Any change to the proposal submittal deadline will be done by an addendum to the RFP.

ACTIVITY DATE

• Request for Proposal issued 05/05/2022

• Developer submits Letter of Interest Form 05/16/2022

• Deadline for requests for changes to solicitation 06/11/2022

• Deadline for submitting RFP protest 06/16/2022

• RFP closing

Submit proposals no later than 5:00 pm PST.

06/21/2022 4:00 PM PST

• Establishment of Competitive Range for Further

Consideration

07/06/2022

• Presentation by and interview of Competitive

Range Hotel Developers

Week of 07/25/2022

• Initiate Negotiations with top ranked Hotel

Developer(s)

Beginning 8/1//2022

The City reserves the right to delay, cancel, or award the contract on any of the dates set forth above, if it is determined to be in the best public interest to do so. The contract shall become effective upon execution by the City.

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V. REQUIREMENTS / SPECIFICATIONS

1.0 INTRODUCTION

The City of Eugene is located at the south end of the Willamette Valley near where the

Willamette River and the McKenzie River converge. Eugene is known as a great place for arts and outdoors, is home to the University of Oregon Ducks, and considered Track Town USA by elite athletes around the world. Eugene has hosted seven U.S. Olympic Team Trials- Track and Field and in July 2022 will be the host for the first ever World Athletic Championships held in the U.S.

The Eugene Airport (EUG) is owned and operated by the City of Eugene. The Airport is located just off the I-5 corridor about 10 miles from downtown Eugene, Oregon. Eugene is in the center of Lane County, at about the mid-point of the state; the Eugene Airport serves an area encompassing 91 zip codes with a population of approximately 870,000. Eugene Airport is an approximately 2,600-acre commercial service airport. Eight airlines provide connections to all parts of the nation and the world. Non-stop destinations include Seattle, San Francisco, San Jose, Oakland, Los Angeles, Burbank, Palm Springs, San Diego, Denver, Salt Lake City, Phoenix, Phoenix-Mesa, Las Vegas, Reno, Dallas/Ft. Worth, Santa Anna, and Chicago.

Annually, the Eugene Airport serves approximately 1.2 million total passengers. It is the second-largest airport in the State of Oregon and recognized by the FAA as a small hub airport.

The City of Eugene has identified 22 acres of undeveloped property within the Airport

Operations Zone (AO-RCP) that is available for development of facilities that would support airport passenger services. The Eugene Airport intends for this parcel to be utilized for development of an upper midscale to upscale lodging facility.

2.0 REQUIRED ATTRIBUTES

The successful developer will enter into a long-term Land Lease Agreement and a

Concessionaire Agreement with the Eugene Airport to design, develop, construct, and operate a franchised hotel.

The Land Lease Agreement will be for property located northeast of the intersection of Green

Hill Rd. and Awbrey Lane. The current utilities run parallel to the subject property along

Awbrey Lane and have the capability to serve the property with increased infrastructure. The property is currently used for agricultural use and therefore does not currently have infrastructure within the parcel.

As this development will cause a federal action of updating the Airport Layout Plan, a National

Environmental Policy Act study and wetlands mitigation will be required before any construction or land work is performed. The airport will initiate these items once a successful proposer has been established. An Airspace Study will also be conducted, and this study will determine the maximum height limit for the proposed location. It is estimated at this time that the maximum height will be 70 feet, this could change once the Airspace Study is completed.

The Concessionaire Agreement will establish a minimum service level required by the Eugene

Airport as well as a negotiated concession fee.

The sought after hotel must be considered a full-service hotel of at least three stars that will include meeting room(s), an onsite business center, fitness facilities, close in surface parking and a convenient shuttle service to/from the Airport terminal.

The Proposer must provide evidence of having the necessary experience, financial resources, and staff capability to design, develop, construct, and operate a hotel.

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Upon entering into a long-term Land Lease Agreement, the selected Development Team will have primary responsibility for design development including brand and management selection, securing necessary entitlements, arranging hotel construction financing, site preparation, vertical construction, and all other expenses and activities to make the project successful while complying with applicable regulations.

3.0 DESIRED ATTRIBUTES

Prior experience developing a similar project with either an airport or a government agency.

A positive project approach that will result in success for the developer, the operator, the

Eugene Airport, and airport patrons.

A national hotel brand with a proven plan for regional and/or nationwide marketing and promotional programs.

An expanded amenity mix that could include a café or restaurant, a lobby bar, expanded fitness offerings including a pool or spa, and expansive areas for business conferences.

A Concessionaire Agreement that includes a negotiated concession fee based on a Minimum

Annual Guarantee (MAG).

4.0 MARKETPLACE CONDITIONS and LODGING MARKET OVERVIEW

See following pages.

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4.0 MARKETPLACE CONDITIONS & LODGING MARKET OVERVIEW

MARKETPLACE CONDITIONS

Eugene-Springfield, Oregon Overview: The proposed Hotel will be located in the city of Eugene, the county seat of Lane County. Separated by Interstate 5, Eugene-Springfield’s metro area population of more than 350,000 represents the third largest metropolitan area in Oregon. Lane County is the fourth most populace county in the state. Situated at the southern end of the Willamette Valley, Eugene-Springfield is home to the University of Oregon, Bushnell University, New Hope College and Lane Community College. The metro area lies approximately one hour west of the Cascade Range and one hour east of the Pacific Ocean. The region’s economy is driven primarily by range of sectors including, medical, technology, education, manufacturing and construction, agriculture, government and timber products and leisure and hospitality. Eugene-Springfield has been a popular retirement and tourism location due to its pristine surroundings, a vibrant arts sector and temperate year-round weather.

Population: Lane County population (nearly 390,000) has grown at an annual growth rate of .85% since 2010 and is expected to add 53,000 residents by 2040 or a .7% growth rate. By comparison, the United States population is expected to grow by 1.1% annually in the next twenty years.

Employment: Of the roughly 183,000 people in the Eugene-Springfield labor force 96.4% are employed. Countywide the Oregon Employment Department projects the addition of 14,000 jobs (2019-2029) or an 8% increase over this 10-year span.

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Marketplace Conditions Lane County Tourism Travel Lane County is the destination marketing organization responsible for marketing the county to leisure visitors, convention and meeting planners and sports planners. The region is marketed as the Eugene, Cascades & Coast region due to its easy access to the Pacific Ocean an hour to the west the Cascade range an hour to the east.

Lane County sees 5+ million visitors to the region each year.

Pre-pandemic total travel spending exceeded $1 billion in 2018 and 2019 and strong recovery is being driven by a robust leisure travel market. Record transient room tax revenues have been recorded in the first half of FY22.

The sports market reemerged in 2021 with a mix of collegiate level and professional level sports. Home to the University of Oregon, Eugene-Springfield is a hub for collegiate sports. Autzen Stadium is the largest outdoor sports venue in the state with a capacity of 54,000 seated and with standing room for 60,000.

Matthew Knight Arena holds over 12,300 fans/spectators and hosts basketball, volleyball and many concerts and other events.

Known as TrackTown USA, Historic Hayward Field was reimagined in 2020 and is now the premier track and field venue in the world. 2022 is looking very strong with a full slate of track and field beginning in March and culminating with the World Athletics Championships Oregon22 in July when over 200 nations will send more than 2,000 athletes to compete.

The line up of future track and field events, adding to our annual line up of fairs, festivals and events bodes well for lodging properties during the peak travel season. Conventions and meetings were slowed by the pandemic, however confirmed rooms for rebooked and new events surpassed the annual goal at the mid-way point of the fiscal year and all indications are that group business is rebounding.

Photo by: University of Oregon

RFP 2022200046 Hotel Development Opportunity at Eugene Airport 14

Lane County Tourism (continued)

Dean Runyan Associates provides visitor volume and spending data to many states and DMO’s across the United States. Their 2020 report notes, “Overnight visitor volume for Lane County is based on cross-referencing visitor surveys, visitor air travel and lodging data.

Volume estimates therefore will differ from methodologies that rely solely on visitor surveys. Visitor spending is a more reliable metric to visitor volume in accounting for changes in the travel industry, as it is more closely tied to economic data and lessens the variability from visitor surveys. Day travel estimates are not included because of data limitations.”

This data shows that Lane County routinely sees more than 3 million overnight visitors. The COVID pandemic impacts are clearly seen in the 2020 data, but the cumulative TRT data for the first half of FY23 and shows that the region is recovering quickly.

Source: Dean Runyan Associates 2020p RFP 2022200046 Hotel Development Opportunity at Eugene Airport 15

Lodging Market Overview Smith Travel Research for 2021 showed recovery happening throughout the lodging sector. Across the United States the data show a 38.1% increase in room demand and importantly a 58.2% growth in revenue per available room (ADR) overall room revenue growth of 66.5% over 2020 figures. As we narrow our focus to the Pacific Northwest these indicators track almost exactly with the national figures. Narrowing a bit more we saw the Willamette Valley increase ADR by 64.1% , room demand increase 34.9% and overall room revenue increase a robust 69.8%.

Smith Travel Research projects that hotel demand and ADR will, “…near full recovery in 2022.” Beyond 2022 the lodging sector appears to be back on track to experience the growth it had been experiencing prior to the pandemic.

RFP 2022200046 Hotel Development Opportunity at Eugene Airport 16

Lane County Lodging Lane County is roughly the size of Connecticut at more than 4,700 square miles and stretches from the Pacific Ocean in Florence to the crest of the Cascade mountain range. Nearly 6,000 rooms are located throughout the county, while the metropolitan area of Eugene-Springfield is home to approximately two-thirds of the rooms.

Lodging properties range from independent, economy properties, to chain-affiliated, full-service properties. Two of the largest properties included the Graduate Eugene (275 rooms) with the attached city-owned Eugene Conference Center and Valley River Inn with its 257 rooms and 15,000 square feet of conference room space. Other properties range from 1 bedroom bed & breakfasts to numerous properties in the 75 to 125 room range. The newest hotel to open (2020) was The Gordon Hotel, an Obie Companies property, which was recently recognize in USA Todays 10BEST New Hotel Properties in the United States.

Travel Lane County, the region’s destination marketing organization, is working hard to develop greater ways to fill rooms in winter gap that is illustrated in the chart. A multiuse indoor sports facility, with a hydraulic track, is under discussion and has support from the lodging industry. It is estimated that this facility would generate 32,000 additional room nights.

RFP 2022200046 Hotel Development Opportunity at Eugene Airport 17

Competitive Lodging Market The Following section provides an overview of the local hotel market. Recent additions and closures in metro area lodging inventory. Closures, with the exception of the Phoenix Inn which had a land lease expire, were due to state or county agencies purchasing properties for fire evacuees, COVID patients or the unhoused. Five projects, ranging from 30-200 rooms, have been discussed but none have specific development timelines at this time.

Closures:

Hotel Closed Rooms

Travelodge 2020 49

Red Lion Inn 2020 50

Phoenix Inn 2021 95

Econo Lodge Eugene 2021 56

Hotel Opened Rooms Home2Suites by Hilton 2016 120 Hyatt Place 2017 130 Fairfield Inn & Suites 2017 81 IHG EVEN Hotel 2018 100 Holiday Inn Express - tower two 2018 34 Econo Lodge Springfield 2018 35 Tru by Hilton 2020 86 The Gordon 2021 82 Hayward Inn (expansion) 2021 100

Additions:

RFP 2022200046 Hotel Development Opportunity at Eugene Airport 18

Competitive Lodging Market (continued) Presented in the following table is a summary of the historical supply and demand and the resulting occupancy percentages for the Lane County lodging market for the period 2016 – 2021. Included is the market’s average daily rate (ADR) and revenue per available room RevPar) figures. RevPar is an industry standard which equates to the total rooms revenue generated by available rooms and thereby measures the operational success of a market or an individual property.

d

RFP 2022200046 Hotel Development Opportunity at Eugene Airport 19

Demographics

Data from Census Reporter – ACS 2019 RFP 2022200046 Hotel Development Opportunity at Eugene Airport 20

Hotel Location

Hotel

Site

RFP 2022200046 Hotel Development Opportunity at Eugene Airport 21

VI. PROPOSAL SUBMITTAL REQUIREMENTS

Proposals must be submitted in accordance with the submission requirements listed in Section II, Instructions to Offerors. Proposals should contain all the information requested in the submittal category below. For each number submittal below, include headings to assist evaluators in what item is being addressed.

Submittals/Criteria

1. Submit Letter of Interest Form.

Express intent to submit a proposal by emailing the Letter of Interest form no later than

May 16, 2022. See Section VIII.

2. Qualifications and Background. (15 points)

Submit a summary of your firm’s qualifications, including but not limited to, summary of relevant hotel development experience, ownership experience, and operating experience.

3. Financial Resources. (30 points)

Provide financial information necessary to demonstrate that the Development Team will have the necessary financial standing, capacity, experience, and resources to undertake, finance, and deliver the project. Note that all materials submitted under this section may be separately sealed and marked as “Confidential and Proprietary Commercial

Information” at the firm’s discretion.

4. Project Approach. (15 points)

Overview of the firm’s proposed Development Team including roles, responsibilities, and experience. Include experience in working with other airports or government organizations and results of such endeavors.

5. Concept and Vision for Project. (30 points)

Provide a preliminary description of the concept and vision for the overall project with as much specificity as possible. This should include, but not necessarily be limited to, project size and configuration (number of rooms, floors, and total square feet), brand, amenities, and parking plan. Visual/architectural renderings could aid in conceptualizing the project but are not required. The firm should seek to demonstrate knowledge and a full understanding of the project’s potentials and competitive advantages. The firm’s

Development Team may also use this section to describe its specific reasons, motivations, and goals for undertaking the Hotel Project.

6. Prior Development Projects. (25 points)

Provide three relevant examples of prior developments that the Development Team was successful in completing. Include brief project summary, approximate value, images, and project timeline.

7. Standard Proposal Form (Required)

The City may choose to award based on written proposals or may elect to establish a Competitive Range and hold interviews with the top ranked proposers. If interviews are held, the interview panel will award an additional 25 points to the proposer’s previous score.

Written Proposal Total Possible Points: 115 The purchasing analyst responsible for the solicitation may contact proposers for clarification of proposals; however, no additions, deletions or substitutions may be made to proposals that cannot be termed as clarifications. Proposer’s responses to questions should restate the question and provide the clarification requested.

RFP 2022200046 Hotel Development Opportunity at Eugene Airport 22

VII. PROPOSAL EVALUATION PROCEDURES

DETERMINING RESPONSIVENESS OF WRITTEN PROPOSALS

Each Proposal submitted in response to this RFP that conforms in all material respects with the requirements set forth in the Solicitation Documents and all requirements of the Oregon Public

Contracting Code and City of Eugene Public Contracting Regulations shall be deemed a

“Responsive Proposal”. The City will notify any Proposers who submitted a Non-Responsive

Proposal to inform them that it did not meet the requirements and will therefore not be considered for contract Award.

EVALUATION OF WRITTEN PROPOSALS:

The City will evaluate each Responsive Proposal in accordance with Rule 137-047-0600 and the criteria described in Section VI of this RFP. Evaluation of the written response portion to the RFP will be based on a point system. The possible point values are listed by each evaluation category above. A committee will review the responsive proposals and assign points for each category.

COMPETITIVE RANGE:

At the conclusion of the rated criteria evaluation process of the written Proposals and prior to selection, the City may continue the evaluation process with Responsive Proposers who have the highest criteria ratings (the Competitive Range). The City may expand or decrease the

Competitive Range if, in the opinion of the Purchasing Manager, the number of Proposals or the quality of the Proposals warrants an increase or decrease in the number of Responsive Proposers in the Competitive Range. The City may decide to forego evaluation of a Competitive Range and award the contract to the highest rated Proposer from evaluation of written Proposals.

Evaluation of Competitive Range. Evaluation of the Competitive Range will be based on criteria developed by the evaluation committee prior to the commencement of Competitive

Range evaluation. These criteria and procedures for evaluation will be issued out as an addendum to the Proposers in the Competitive Range. Criteria used as evaluation methods may include interviews, modified design plans, work samples, demonstrations, inspections, site visits, or other testing or examinations.

DISCUSSIONS & NEGOTIATIONS:

Pursuant to 137-047-0262, the City may commence discussions and negotiations with the highest ranked proposer after evaluating all Responsive Proposals in accordance with the evaluation criteria set forth in the RFP.

SELECTION PROCESS AND NOTICE OF INTENT TO AWARD:

Notice of the Competitive Range will be given to all Proposers. Notice of Intent to Award a final contract will only be given to Proposers in the Competitive Range. Final award will depend upon the execution of an acceptable contract and may be withdrawn by the City at any time prior to execution of the contract by the City.

Responsive Proposers may protest the City’s Notice of Competitive Range in accordance with

Rule 137-047-0720, and Proposers included in the Competitive Range may protest the Notice of

Intent to Award in accordance with Rule 137-047-0740.

RFP 2022200046 Hotel Development Opportunity at Eugene Airport 23

VIII. FORM TO SUBMIT PRIOR TO PROPOSAL

LETTER OF INTEREST IN SUBMITTING PROPOSAL

Project:

RFP 2022200046

Hotel Development Opportunity at Eugene Airport

Intersection of Awbrey Lane and Green Hill Rd.

Eugene, OR 97404

Single Point of Contact:

Shawn Hubbell

Purchasing Analyst

City of Eugene shubbell@eugene.or.gov

Firm Contact Information:

Company Name:

Primary Contact:

Title:

Email:

Phone:

Response to RFP:

We plan to submit a proposal.

We do not plan to submit a proposal.

Email form to shubbell@eugene.or.gov prior to 5/16/2022.

RFP 2022200046 Hotel Development Opportunity at Eugene Airport 24 mailto:shubbell@eugene.or.gov mailto:shubbell@eugene.or.gov

FORM TO SUBMIT WITH PROPOSAL

STANDARD PROPOSAL FORM

CITY OF EUGENE

Solicitation Number RFP 2022200046

I, the undersigned, and authorized representative of

(Company Name) certify the following:

Acknowledgement of terms, conditions and specifications

1. The proposer represents that proposer is properly licensed and adequately experienced, equipped, organized, and financed to furnish and deliver the project as proposed.

2. The proposer has carefully checked the figures entered in the Form, has carefully reviewed for accuracy all statements in this proposal and attachments, and agrees that the City will not be responsible for any errors or omissions of the proposer in preparing this proposal. The proposer agrees that this proposal may not be revoked or withdrawn for 120 calendars days after the date on which proposals are received.

3. Contract Execution. The proposer agrees that if this proposal is accepted it will, within ten

(10) calendar days after having received the Notice of Award, execute and return to the City the Contract and any contract requirements as required.

4. Addenda. The proposer acknowledges that it has received the following Addenda No(s):

and agrees that all addenda issued are a part of the Contract Documents and have been considered in preparing this proposal. (Proposer: insert the number of each addendum received; if no addenda were received, write “NONE” in the space.)

Compliance with Laws

Proposer hereby agrees to comply with all applicable Oregon public contracting code provisions, as more specifically described in the attached contract and associated Exhibit A. Proposer attests that it complied with the applicable state and local tax laws including, but not limited to, ORS

305.385, ORS 305.620, ORS chapters 316, 317, and 318 for no fewer than six years into the past from signature and will continue to comply with the tax laws during the term of this contract. ____ initials.

The applicant represents that it is ( ) is not ( ) a corporation that has any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability.

The applicant represents that it is ( ) is not ( ) is not a corporation that was convicted of a criminal violation under any Federal law within the preceding 24 months.

Access to Plant or Place of Business

Proposer agrees that the City may enter a contractor's or subcontractor's plant or place of business during normal business hours for the following purposes: inspect and/or test supplies or services for acceptance by the City pursuant to the terms of the Contract, and investigate the proposer's minority business certification or other proposer qualifications.

RFP 2022200046 Hotel Development Opportunity at Eugene Airport 25

Certification of Nondiscrimination

Proposer has not and will not discriminate against a subcontractor in the awarding of a subcontract because a subcontractor is a minority, woman, or emerging small business enterprise certified under ORS 200.055, or against a business enterprise that is owned or controlled by or that employs a disabled veteran as defined in ORS 408.225.

Certification of Offeror Regarding Debarment

By submitting a bid/proposal under this solicitation, the bidder or offeror certifies that neither it nor its principals are presently debarred or suspended by any Federal department or agency from participation in this transaction.

Noncollusion

The proposer certifies that the proposal has been arrived at by the proposer, independently, and has been submitted without collusion with, and without any agreement, understanding or planned course of action with, any other contractor, proposer, or vendor on materials, supplies, equipment or services, described in the solicitation documents, designed to limit independent offers or competition. The contents of the proposal herein presented and made have not been communicated by the proposer or their employees or agents to any person not an employee or agent of the proposer or its surety on any bond furnished with the solicitation, and will not be communicated to any such person prior the closing time of the solicitation.

We therefore offer the following proposal in fulfillment of the requirements and specifications contained within the solicitation documents and all addenda.

Company: Date:

Signature:

Title:

Name (Print):

Phone:

Address:

Company contact for this project (if different from above):

Name: Title:

Phone:

RFP 2022200046 Hotel Development Opportunity at Eugene Airport 26