City of New York Parks 8: Recreation The Arsenal Central Park New York, New York 10021 Henry]. Stern Commissioner Joanne G. Imohiosen Assistant Commissioner Revenue (212) 360-3404 greenback@parks.nyc.gov MEMORANDUM To: Members of the Franchise and Concession Review Committee From: Assistant Commissioner Joanne Imohiosen?y Date: August 24, 2001 Re: Intent to Award for the Operation and Management of the Wollman and Lasker Skating Rinks in Central Park, Manhattan The following information is provided to the Franchise and Concession Review Committee for a public hearing for a signi?cant concession to be awarded pursuant to Section 1-12 of the Concession Rules. Wollman and Lasker Rinks in Central Park, Manhattan are both located in the vicinity of Community Boards 4,5,7,8,10,11. They are located in Block Lot #1111. Concession use will be the operation and management of the Wollman'and Lasker skating rinks in Central Park, Manhattan. The proposed concessionaire was selected pursuant to the Competitive Sealed Proposals procedure, Section 1-12 of the Concession Rules, and is the ?nal recommendation of the Selection Committee. A copy of each prOposal is included in this package. nyc. gov/ parks 1 Intent to Award For the Operation and Management of the Wollman and Lasker Skating Rinks in Central Park, Manhattan City of New York Parks Recreation intends to award as a concession the operation and management of the Wollman and Lasker skating rinks in Central Park, Manhattan for a license term of ten (10) years, to the Trump Corporation with Rink Management Services. Included for FCRC review is the following: Advertising summary Summary of original proposal submissions Summary of short?listed proposals Recommendation Selection Committee?s Rating of Proposal Submissions Selection Committee?s Rating Sheets Notice of Request for Proposals Successful Proposal Submission and Other Proposal Submissions l. ADVERTISING SUMMARY Parks Recreation advertised in the City Record from 4/04/01 through 4/18/01. During this period, advertisements appeared in the following publications: - NY Post - NY Times - Wall St. Journal - Crain?s Business - Queens Tribune - Westside Spirit - Minority Commerce - El Diario - Novoye Russkoye Slovo - Segye Times - American Oggi - Carribean News - India Abroad - Courier Publications - Jewish Week - Amusement Business - Hockey News - Bronx Times In addition, Parks Recreation undertook mailing from our mailing list composed of related businesses. The Request for Proposals was also mailed to the affected Community Boards, City Council Members, and Borough President. 2. Summary of Original Proposal Submissions The following are executive summaries of the original proposals received, as follows: I 1) The Trump Corporation/Rink Management Services Corporation Donald J. Trump 725 Fifth Avenue New York, NY 10022 Fee Offer: Minimum Fee Versus of gross receipts, whichever is greater. Year Guaranteed Minimum Fee VERSUS of gross receipts 1 $1,350,000 28% 2 1,377,000 28% 3 1,404,540 28% 4 1,432,631 28% 5 1,475,610 28% 6 1,519,878 28% 7 1,565,474 28% 8 1,612,439 28% 9 1,660,812 28% 10' 1,710,636 28% TOTAL: $15,109,020 Capital Investment Design: Wollman Rink Phase 1 Item Estimated Cost (Yr. 1-2) Ice Rink Brine 10? header and branch tubes 385,194 Six (6) new compressors for rink chillers 438,765 400-ton cooling tower 233,985 New Kitchen equipment 75,000 Calcium chloride solution-making equipment 600 Seal and re-coat rink slab 4,000 Repair two Zamboni machines 35,000 Seventeen hundred (1700) new pairs of skates 110,500 Two (2) skate sharpening machines 13,500 863 Bobcat snow remover/snow blower/snow plow 41,500 Ice edging machine 4,000 Of?ce ?lmiture, cash register, etc. 10,000 First aid equipment 2,500 SUBTOTAL: $1,354,544 Phase 2 (Yr. 3-4) Fifteen (15) 100,000 hydro pulse Boilers 211,622 Roof Stack/exhaust for boilers (within light pole on upper plaza) 10,000 Repair roof leaks 25,000 Sump pumps and control panels with new starters and contractor coils 50,000 Furnish and Install HVAC at snack bar area 30,000 Repair/replace ?re protection, alarm and dry ?re suppression systems 20,000 New electronic controls with timers for snack bar area 32,500 Mondo Sport Impact rubber ?ooring in clubhouse 26,500 Floor Machine for rubber mats 4,000 Sound/ PA system 20,000 SUBTOTAL: 429,622 OLLMAN TOTAL: 1,784,166] Lasker Rink Phase 1 Item Estimated Cost (Yr. 1-2) Repair concrete pool surface and expansion joints, and paint 50,000 Reconstruct parapet wall around entry plaza 100,000 Repaint interior and exterior of facility, repair concrete surfaces, etc. 150,000 Repair deck over storage area at north end of rink 100,000 New stair treads in entry gate pavilion 15,500 Resurface concrete deck around rink 25,000 Upgrade restrooms 25,000 Upgrade sound system 10,000 New netting around rink perimeter (One public rink, one hockey rink) 15,000 New kitchen equipment/Renovate snack bar 50,000 Hockey equipment, including goal piping, netting and inserts 1,500 One thousand (1,000) new pairs of skates 7,500 Two (2) skate sharpening machines 13,500 Two new outdoor scoreboards 12,000 863 Bobcat snow remover/snow blower/ snow plow 41,500 Ice edging machine 4,000 Of?ce ?irniture, cash register, etc. 10,000 First Aid equipment 2,500 SUBTOTAL: 633,000 Proposed Alternative: Portable skating rink with dasher boards 200? 85? 254,000 Phase 2 (Yr. 3-4) Remodel entry gate pavilion/ticket booth/new lighting 150,000 One new light tower 15,000 New fencing around perimeter/Remove chainlink fencing 250,000 Install Mondo Sport Impact rubber ?ooring in clubhouse 68,000 Repair and replace lockers 100,000 SUBTOTAL: 583,000 ASKER TOTAL: 1,216,000 OLLMAN TOTAL: 1,784,16 TWO RINKS: Operating Experience: 3,000,166] The Trump Corporation was established in 1980 as the umbrella organization for all of Donald J. Trump?s real estate operations and corporate af?liates. They will serve as the principle. Rink Management Services Corporation (RMS) will be retained to provide operational services for the skating rink. The Trump Corporation has, ?successfully completed a variety of innovative and complex real estate projects. . .From urban hi rises and public parks to suburban townhouses and golf clubs, The Trump Corporation has demonstrated its ability to work closely with local governments and communities, as well as architects, engineers, and the construction industry.? Some large development projects the Trump Corp. has completed or are working on include the following: The Trump Place (Riverside South) which includes hi rise apartment buildings, private and public streets and public parks, support the future home to 20,000 people. - The Grand Hyatt is given as an example of Trump Corporation?s ability to solve problems in coordination with the City of New York. - Trump International Hotel Tower (Gulf Western Building) Renovation ?solved the swaying problem with the steel-frame building without compromising the apartment and hotel unit ?oor plans.? The Trump Corp. also lists many Residential Properties, Hotels and Resorts, Golf Clubs and Commercial Properties as completed projects. Rink Management Services Corporation was founded by Thomas Hillgrove in 1999, the President and Owner, Mr. Hillgrove has 25 years of recreation management expertise. RMS manages twelve skating rinks across the United States and Canada. Mr. Hillgrove founded and owned Recreation Management Services from 1989 to 1998. In 1996 and 1997 the company was rated the fourth largest venue management company in North America by Amusement Business Magazine. RMS ?has a strong history of community involvement.? They currently manage rinks in Massena, N.Y., Cleveland, OH, Dallas, TX, Colorado Springs, CO, San Jose, CA, Frisco, TX, and Coralville, IA. They will begin management in 2001 and 2002 on several other rinks throughout the United States and Canada including Clinton Square Ice Rink in Syracuse, N.Y., Jamestown Ice Skating Arena, Jamestown, N.Y., Cambridge Centre Ice Arena, Cambridge, Ontario and the Outdoor seasonal Scott Hamilton Ice Rink in Cleveland, OH. Mr. Hillgrove is a member/ af?liate of the Ice Skating Institute, United State Figure Skating Association and USA Hockey. He ?directs a team that has individually and as a group won many industry awards and honors.? Financial Capability: Mr. Trump reports total assets of $2,728,432,000 and total liabilities of $325,332,000. Therefore, his net worth is $2,403,100,000. ($4,976,000 in cash and cash equivalents. His listed assets include escrow and reserve deposits, marketable securities, real and operating properties and partnerships and joint ventures. Vendex forms were received for both RMS and The Trump Organization. Planned Operations: The Trump Corporation plans on hiring staff from the local community. They anticipate hiring 8 full time employees at Wollman Rink and between 162 and 189 part-time seasonal help. At Lasker, they project a full time staff of 4 and a seasonal staff of between 48 and 55 part?time employees. RMS proposes to hire mentally challenged peeple offering a ?leg up to those who may have a more dif?cult time breaking work and workplace barriers.? They propose to utilize several customer satisfaction mechanisms including: distributing questionnaires and response cards to customers and groups, obtaining the names and key information of all customers at the greeting desk to create mailing lists, meeting with representatives of all known user groups prior to each season, conducting site interviews with between 10 to 20 customers a week. ?Trump and RMS would also like to meet with the Parks Department project manager every few weeks to review the last period, outline and inform of future events, operations and discuss ways to improve the rink operation. Distribute response cards to all learn to skate classes to grade performance.? Proposed Community Programming will include: - Creating New Figure and Public Skaters by focusing marketing towards schools with school assemblies. School Programs are to include The RMS Learn-to-Skate Program which ?focuses primarily on girls aged 4-18. Lessons are offered in the evenings and on weekends, and programs build on skills mastered.? The RMS Read Skate Program is a program aimed at promoting learning and reading skills among New York City?s children by offering ice skating at Wollman and Lasker Rink as a reward for reading. This program will coordinate with the library system and local schools. A card will be distributed on which the child will ?ll out his or name and list the books read. After the required number of books has been read, the child will be given a free pass to either rink. The librarian would verify the books read. - Working with the Special Olympics: RMS has had a long relationship with the Special Olympics at Ice skating facilities in New Jersey and that involved serving as a training and practice facility and hosting the games themselves. They would like to institute similar programs at Wollman and Lasker Rinks. The Trump Corporation and RMS have proposed an alternate rink system at Lasker. The new system will incorporate a portable skating rink with dasher boards. This new portable rink will be NHL-sized 200? 85? and will ?t inside the existing pool. They state that the new rink will provide the same amount of ice skating area as the current two-rink system. The system will also eliminate the dead zones over the expansion joints, reduce the weight of the ice and equipment, reduce or eliminate damage to the pool that causes leaks by eliminating snow build up around dasher boards. This system will reduce the breakdown and set up times, require only one li? instead of two, provide for quicker removal of snow and rain water in adverse conditions, provide more scheduling ?exibility and allow user groups to host hockey tournaments and skating competitions. They project that this will increase concession and admission sales, private ice rentals, pick-up hockey and learn-to-skate lessons. Prices and Fees (First Year of Operation) Wollman Lasker Adult 13 years and over $7.50 Weekdays $4.00 $8.00 Weekends Youth 12 years and under $3.75 $2.00 Senior citizens (60 years and over) $3.75 $2.00 Skate Rental $3.75 $3.50 Locker Rental deposit deposit Family Night $30 $25 Adult Hockey Instruction (6wks.) $150/person $150/person Youth Hockey Instruction (6wks.) $190/person $190/person Learn-to-Skate Lessons (8 wks.) $135/person $135/person Skate Sharpening $7.00/pair $7.00/pair Hours of Operation (Wollman and Lasker) Monday: 10:00am to 5:00pm Private Events: 5:00 pm to 11:00pm Tuesday through Saturday: 10:00am to 11:00pm Sunday: 10:00am to 9:30pm Snack Bar Menu (W ollman and Lasker) prices to be determined with Parks Sandwiches, Hot Dogs, Small Pizzas and Salads Hot Pretzels, nachos, cookies, muf?ns and Danish Fresh Fruit (apples, oranges and bananas) Ice Cream in summer and spring Beverages: Coffee, tea, hot chocolate, hot cider, bottled water, sodas, juices Pro Shop Inventory (W ollman and Lasker) prices to be determined with Parks Skating Hockey Boots and Blades (all sizes) Sweatshirts, sweaters, skating dresses, gloves, hats, scarves, headbands and socks. Skate hooks and laces, boot and blade covers, skate bags and kneepads. Hockey Sticks and equipment. Helmets, rollerblade skates and protective gear. Film, batteries, disposable cameras, etc. Sun Screen and Novelties.