DATE: January 16, 2019
SUBJECT:
Title
RESOLUTION AMENDING BOARD OF PORT COMMISSIONERS POLICY NO. 360 - REQUEST FOR PROPOSALS - TO ADD LANGUAGE TO REDUCE RISKS OF DELAYS TO NEW HOTEL CONSTRUCTION AND OPERATIONS AND RELATED DIRECTION TO STAFF
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EXECUTIVE SUMMARY:
At the December 11, 2018, Board meeting, staff presented an economic analysis during the agenda item "Presentation On The Economic Considerations Related To Tidelands Real Estate Development And Causes And Impacts Of Project Delays" (Attachment A, December 11, 2018, Agenda Sheet) that analyzed and attempted to quantify the risks to District development projects into three primary risk categories: schedule delays, cost increases, and performance failures. Several conclusions were drawn from the analysis and the District's experience with real estate development:
* Project delays cost the District and the region both directly and indirectly.
* Risk mitigation strategies may reduce delays and lead to successful projects.
* A well-qualified, experienced development partner is critical to success.
* Reducing risk up front saves time and resources over the project lifecycle.
* Broad stakeholder support results in fewer regulatory and legal challenges
Following that presentation, the Board instructed staff to identify potential policy changes based on that analysis and return to the Board. In response to the Board's direction, staff reviewed existing Board of Port Commissioners (BPC) policies and identified BPC Policy No. 360 "Request for Proposals" (see Attachment B, BPC Policy No. 360) as one potential alternative that could meet the Board's direction. BPC Policy No. 360 Redline, attached as Attachment C, is a proposed draft that incorporates some of the policy considerations previously discussed by the Board on December 11, as well as additional clarifications and amendments as follows:
* Existing tenants redeveloping their leaseholds pursuant to BPC Policy No. 355 - Real Estate Leasing Poli...
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