Village Center Subarea Commercial Space Analysis 2024 RFP.pdf

Town of Mountain Village & Telluride Mountain Village Owners Association

(TMVOA)

Request for Proposal

Village Center Subarea Commercial Space Analysis RFP

Release Date: May 15, 2024 Due Date: June 12, 2024, at 5 p.m.

Contact: Molly Norton, Community Engagement Coordinator 455 Mountain Village Blvd, Suite A Telluride, CO 81435

(970) 369-8606 mnorton@mtnvillage.org

Pre-proposal conference An optional Pre-Proposal Conference will be held on May 22 at 11:30 AM (Mountain Time) via Zoom. Participants may also zoom into the meeting at Join Zoom Meeting https://us02web.zoom.us/j/87323519163?pwd=dG04bWlkbU1TS2dYeFl3VWZVUW5BQT09

Meeting ID: 873 2351 9163 Passcode: 778821

The purpose of this conference is to provide assistance to consultants in the interpretation of this Request for Proposal (RFP) or any terms and conditions contained herein.

Proposals must be received no later than:

June 12 at or before 5:00 p.m. Mountain Standard Time Proposals received after this date and time will not be considered for award.

Proposal format RFP response should be provided in PDF format sent digitally and/or via mail.

Deliver proposals to:

Digitally: mnorton@mtnvillage.org

Schedule of Events (subject to change) All times are given in local Colorado time RFP Issued May 15 Optional Pre-Proposal Conference May 22 Inquiry Deadline May 29 Final Addendum Issued May 30 (as needed) Proposal Due Date and Time June 12 at 5 p.m.

Interviews (tentative) Week of June 17 Notice of Award (tentative) June 24 https://us02web.zoom.us/j/87323519163?pwd=dG04bWlkbU1TS2dYeFl3VWZVUW5BQT09 mailto:mnorton@mtnvillage.org

SECTION I. BACKGROUND, OVERVIEW, AND GOALS

A. Background

Situated in the heart of the breathtaking San Juan Mountains, the Town of Mountain Village (“Town”) was incorporated in 1995 as a home rule municipality that, in part, encompasses Telluride Ski & Golf (“TSG”). Its founders envisioned a European-style ski-in/ski-out, pedestrian-friendly destination resort that would complement the historic mining town of Telluride. A three-stage gondola transportation system connects the Town of Mountain Village with the Town of Telluride. Situated at 9,545 feet, Mountain Village is a world apart from other resorts: it is innately spectacular, beautifully orchestrated and planned, and overflowing with style, charm and sophistication.

The Village Center is the heart of the town, made up of three distinct pedestrian plazas with ground-level commercial spaces, the majority of the destination’s hotel beds, the primary location for special events and activities, a common consumption area, the base of the ski area and bike park and much more. The Mountain Village Center Subarea Plan is a central part of Mountain Village’s Comprehensive Plan (Comp Plan), as the main hub for economic, cultural and recreational activities.

Over the last 20 years, a number of economic studies have been conducted to help inform and guide Mountain Village’s Comp Plan and various codes, regulations and strategies. The Comp Plan was most recently updated over the course of 2021 and 2022 to “reflect current economic conditions” and a key component of the plan is to create a “more economically successful and culturally vibrant Mountain Village Center.” The amended Comp Plan was adopted by Town Council on December 8, 2022. As evidenced in the Comp Plan, Town’s economy is vulnerable and there are real challenges presented in our retail and dining mix, sales performance and vacant commercial space.

Improving the shopping, dining and lodging experience of residents and visitors is one of the priorities Town seeks to tackle with this RFP. As described in the Comp Plan, “the existing shops and restaurants are operating at grossly substandard levels of sales and profit.” Town’s average annual retail and restaurant sales per square foot at $320, significantly lower than industry standards. Additionally, the retail and dining mix in Mountain Village lacks diversification, local focus and appeal. Over three-quarters of retail space in Mountain Village is made up of apparel and sporting goods and retail/dining spending is leaking to Telluride. Lastly, vacant commercial space and lack of initiative, direction or motivation to fill specific spaces has created dead spaces in the plazas.

The Comp Plan, in addition to several economic studies, have recommended principles, policies and actions aimed at getting people to visit Mountain Village more often, stay longer, and come back – and spend money when they are here. Town has made significant progress on some of these priorities, including expanding the supply of community housing and creating additional hotbed units. What remains though is effective strategies on addressing the commercial mix in the Village Center.

Past economic studies and activities include:

• Existing Conditions Report (2000)

• Harvard Business School Thesis (2002)

• Telluride Region Economic Sustainability Model - EPS (2006) https://townofmountainvillage.com/business/plaza-use/common-consumption-area/ https://townofmountainvillage.com/site/assets/files/42181/mountain_village_comprehensive_plan_amended_in_2022.pdf https://drive.google.com/file/d/17nFpFmlGD7lHFpHVlbcJN1LzEfRa1sLM/view?usp=drive_link https://drive.google.com/file/d/1_zRdymgWH4I-tcqYKZwTjJ-_bZ64eSw1/view?usp=drive_link https://drive.google.com/file/d/1Sps0Lt2aftMzWOIqLjXcDoDA4azpiRck/view?usp=drive_link o Executive Summary Presentation

• EcoSign 2009 Recommendations and Presentation – EPS (2009)

• Inventory & Balance Analysis & Phase 1b Village Revitalization Strategy -

Ecosign (2008) – not adopted by Council

• MV Economic Model Summary Reports (2011) – as part of 2011 Comp Plan amendment process o Comprehensive Plan Economic Modeling – EPS (2011)

• Village Center Subarea – AECOM (2018)

• Commercial Space Performance Analysis [draft by TMVOA – never completed]

(2020)

• Mountain Village Comprehensive Plan (amended 2022)

• Business Development Advisory Committee comparable destination matrix and

Inventory spreadsheet (2023)

These economic studies and Village Center evaluations have provided exciting ideas, re-envisioning of our Village Center and a few low-hanging fruit next steps. Since the completion of these studies, few recommendations have been implemented. Incredibly impactful progress has been made in some areas, including approving the PUD for Lot 161CR, Village Court Apartment Phase IV expansion and the construction of the Meadowlark community housing. While many of the recommendations have significantly focused on land use, hotbeds and plaza design, the Town seeks a plan for tackling our commercial space mix and use and improving the performance of our retail and dining economic drivers.

Looking ahead, the Town and TMVOA, in collaboration with their major partners, seek to take actionable steps to improve retail and restaurant sales performance, solicit a more diverse and attractive retail and dining mix and to fill ground-level commercial space vacancies in key areas.

B. Problem statement:

1. The economic landscape has changed significantly since COVID with Town-approved projects and Comp Plan amendments. Town would like to bring up to date the analysis of our destination and customer and the Village Center Subarea commercial inventory mix and performance.

2. With over three quarters of our commercial space occupied by sporting goods and apparel, we need a convincing proposal for an ideal mix of commercial space and locations.

3. There are significantly different views on the needs and use of vacant commercial space between the Town, community and the primary landlord.

4. There are currently no consequences or incentives offered to assist in filling vacant commercial space, especially critical spaces that have remained vacant for substantial periods of time.

5. There are a lot of individual thoughts and opinions on what Mountain Village needs, should be or doesn’t need. Town needs to understand what the community and guest experience desires and what will help drive visitors to stay in Mountain Village. This includes a compelling vision of the future, including ideal target tenants and the economic, operator and landlord benefits of aligning with this vision.

6. Lastly, Town has a lot of studies with big picture ideas and strategies. Town is in need of a roadmap and an actionable plan to attract those tenants and ways TMVOA, TMV and/or landlord can support them.

https://docs.google.com/presentation/d/1a7C0q5dzAy5XNM1OwJ2ksV1a5hGdRwZ9/edit?usp=drive_link&ouid=118211959278938841806&rtpof=true&sd=true https://drive.google.com/file/d/1hL0N8ZgQ_WEIqTn5_f5v-3grb7WTLu8Z/view?usp=drive_link https://drive.google.com/file/d/1WFHjvvmliObnJpcKoV0kYo98VgV2K1Nm/view?usp=drive_link https://drive.google.com/file/d/1CZ_HAaBN_w7ntj0FD9e_quJwVw23JG8s/view?usp=drive_link https://drive.google.com/file/d/1S0MjlP0s7TDt0XWjzikKNaHk_n_006Q9/view?usp=drive_link https://drive.google.com/file/d/1xgWPMwIsZVoILpSvNB1yFM6CGXoRGNSt/view?usp=drive_link https://drive.google.com/file/d/1etu5xFu6SJTnTotbqhoqoJnIFOHgyDAE/view?usp=drive_link https://drive.google.com/file/d/1nEoZXy4jpe8qH0RgV92sZDIkyMWBIENy/view?usp=drive_link https://townofmountainvillage.com/site/assets/files/42181/mountain_village_comprehensive_plan_amended_in_2022.pdf https://drive.google.com/file/d/1UvjTZLKTPHCBNxZYhoxA7knp5nEXlPcU/view?usp=drive_link https://docs.google.com/spreadsheets/d/17LP-TzDzNlIrBNqC0XoXwfIus3_lFxh-/edit?usp=drive_link&ouid=118211959278938841806&rtpof=true&sd=true

SECTION II. STATEMENT OF WORK

A. Scope of Services

The scope of services and minimum requirements for the above-described project includes the following tasks. Please provide a cost breakdown for each task and subtask described below:

Phase One: Required

• Review existing Village Center Subarea and destination demographics.

• Bring up-to-date analysis of our destination and customer and the Village Center

Subarea commercial inventory mix and performance.

Including an analysis of usage and occupancy of existing restaurant capacity.

Considering future developments in the Village Center Subarea, including the approved Four Seasons and potential re-development of the Telluride Conference Center.

• Define the ideal mix and use of commercial space and locations.

• Define ideal target tenants and the benefit of those tenants to the Town, operator and/or landlord.

• Strategies on how we can attract those ideal target tenants and ways Town, TMVOA and/or landlord can support them.

• Provide guidance and commentary on the potential for a commercial space

“vacancy tax” or other effective incentives or penalties for ground-level commercial spaces in primary pedestrian pathways that are left vacant for an extended period of time. Include information on any relevant case studies or comparable communities that are exploring or implementing this approach.

B. Inquiries:

RFP Respondents may make written inquiries by e-mail before the written inquiry deadline concerning this RFP to obtain clarification of requirements. There will also be opportunity to make inquiries during the pre-proposal conference. No inquiries will be accepted after the deadline. Inquiries regarding this RFP (be sure to reference RFP number) should be referred to:

E-Mail: mnorton@mtnvillage.org Subject Line: RFP-2024-05

C. RFP Response Components

The RFP response should be limited to 30 pages

• Firm background/qualifications

• Experience o Key project team bios o Similar projects in comparably-sized markets o Familiarity with remote seasonal resort communities o History of forthrightness—willingness to tell communities when project is not feasible

• Approach to economic analysis o Community engagement o Creativity/innovative approaches o Use of qualitative and quantitative data o Schedule and timeline

• Itemized cost to Town of Mountain Village/TMVOA for consulting services (see

Scope of Services above for phasing preference)

• Project Timeline

• References

D. Insurance:

The successful contractor will be required to provide a Certificate of Insurance, with coverage up to $1 million and Town of Mountain Village named as additional insured, and/or other proof of insurance representing coverage.

E. Confidential/Proprietary Information:

Town of Mountain Village and TMVOA neither requests nor encourages the submission of confidential/proprietary information in response to this Request for Proposal. All proposals will be confidential until a contract is awarded and fully executed. At that time, all proposals and documents pertaining to the proposals will be open for public inspection as a result of Town of Mountain Village staff participation in the selection process, except for the material that is proprietary or confidential.

F. RFP Cancellation:

Town of Mountain Village and TMVOA reserves the right to cancel this RFP at any time, without penalty.

G. RFP Response/Material Ownership:

All material submitted regarding this RFP becomes the property of Town of Mountain Village and TMVOA, unless otherwise noted in the RFP.

H. Incurring Costs:

Town of Mountain Village nor TMVOA is not liable for any cost incurred prior to issuance of a legally executed contract and/or a purchase order.

I. Non-Discrimination:

The offeror shall comply with all applicable state and federal laws, rules and regulations involving non-discrimination on the basis of race, color, religion, sexual orientation, national origin, age or gender.

J. News Releases:

Neither Town of Mountain Village, TMVOA, nor the offeror, shall make news releases pertaining to this RFP prior to execution of the contract without prior written approval of the other party.