REQUEST FOR EXPRESSION OF INTEREST FOR LOST PLANTATION GOLF CLUB FOOD & BEVERAGE SERVICES RFEI #001

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1 REQUEST FOR EXPRESSION OF INTEREST FOR LOST PLANTATION GOLF CLUB FOOD & BEVERAGE SERVICES RFEI #001 Interested firms should respond to this RFEI by Monday, December 31, The deadline for submitting questions or information requests relative to this RFI is Friday, November 30, All questions concerning this Request for Expression of Information (RFEI) should be directed by to: John Klimm, City Manager City of Rincon 1. RFEI INTRODUCTION AND OBJECTIVES This is a Request for Expression of Interest (RFEI) only and does not constitute a commitment implied or otherwise that the City of Rincon, Georgia ( City ) will initiate a procurement action in this matter. Further, the City of Rincon will not be responsible for any cost incurred by responders in furnishing any information. This RFEI is being issued to identify financially strong restaurateurs capable of successfully operating the food and beverage operations via a concession/lease agreement - at the 18- hole public Lost Plantation Golf Club ( LPGC ) located in, and owned by, the City of Rincon. The information collected through this RFEI may be used by the City to develop future solicitation(s) to seek a firm to lease, improve and operate the grill facility at LPGC. After receipt of responses to this RFEI, meetings may be scheduled by the City to review/discuss the information received. The City has prepared this RFEI to gain a more accurate sense of the interest of qualified outside entities in potentially entering into a concession agreement / operating lease for food & beverage operations at Lost Plantation Golf Club, and to further explore prospective elements of said lease, specifically related to length of contract, lease payments, funding of capital improvements, etc. This document is intended to inform interested parties of the information requested by the City, in anticipation of potential issuance in early 2019 of a formal Request for Proposals (RFP) for operations of Lost Plantation GC food & beverage operations via concession / lease agreement with the City of Rincon. 1

2 Responders to this RFEI are not required to adhere to rigid guidelines and are encouraged to offer creative ideas to meet the City s stated objectives with respect to the LPGC food & beverage operation. Thank you for your consideration and interest in providing food and beverage service at Lost Plantation Golf Club. 2. BACKGROUND INFORMATION Lost Plantation Golf Club, located at 1 Clubhouse Drive in Rincon (Effingham County), is an 18- hole course designed by Joseph L. Lee. The City of Rincon acquired LPGC in late 2009 for the purpose of discharging treated water onto the golf course, and operates all aspects of the golf course with City employees. Formerly known as Willowpeg Golf Course when privately owned, the facility opened in The par-72 golf course features four sets of tees, ranging from 4,953 yards from the front tees to 6,833 yards at the tips. The facility also includes a 15-station driving range; clubhouse; cart barn; and maintenance facility. A new irrigation system was installed in Peak green fees, including cart, for an 18-hole rounds of golf at LPGC are $40. Over the last several fiscal years, LPGC has hosted between 16,000 and 18,000 total rounds each year and generated between $500,000 and $600,000 in annual gross operating revenue. The facility has ±80 members (in various categories) who pay annual fees each year. Rincon and Lost Plantation Community Rincon is located in Effingham County, about 15 miles northwest of Savannah, GA, and about 25 miles west-northwest of Hilton Head, South Carolina. The city s population is estimated at about 9,900 in 2018, while Effingham County has about 58,400 residents. The number of upscale homes in close proximity to the Golf Course is 600. LPGC Current State Lost Plantation Golf Club is operated on a tight budget by the City of Rincon; part of the reason for soliciting interest in a possible food & beverage concession agreement at the facility is to free up resources for other aspects of the operation, such as golf course maintenance. The City expects that improved golf course maintenance conditions will drive more customers to the facility, and increase activity and demand for the LPGC Grille, especially if a fresh approach to food & beverage service area is undertaken. The golf clubhouse totals approximately 3,640 square feet and comprises pro shop, restrooms, and a small office, kitchen, dining space, kitchen, storage space and outside deck. The square footage of the food & beverage service area is approximately 432 sf and comfortable seats about 85 patrons (dining area appx. 560 sq. ft.), with capacity for an additional 20 or so on the back uncovered deck/porch. The clubhouse building is in good structural condition but in need of enhancement. Please refer to Attachment C for a list of preliminary high priority improvements the golf course manager and City have identified for the clubhouse and food & beverage service area. 2

3 The following table summarized gross food & beverage sales at LPGC for the last three complete fiscal years. Lost Plantation Golf Club Food & Beverage Revenues ( ) FY 2015 FY 2016 FY2017 Food & Beverage Sales $39,968 $30,954 $46,288 Bar Sales 30,680 32,717 27,758 Total F&B Gross Sales $70,648 $63,671 $74,046 Source: City of Rincon F&B sales includes: food, beverage, misc. grill, & tournament sales Partly due to budget and staffing constraints, the grill s current hours of operation are limited to 7:30 a.m. to 4 p.m. most days (grill is closed on Monday). The facility has a beverage cart, which is currently utilized only for tournaments. The golf course and grill have received relatively little marketing over the years, (for example, the grill does not have a dedicated website). Though some events are held at the facility, the City believes that there is a potential opportunity for an experienced restaurateur with sufficient staffing resources to significantly increase food & beverage activity at LPGC through improved service and facilities, and a strong direct sales and marketing approach for both daily grill sales and special events. Large room rental facilities that are able to serve beer and wine are in high demand within Rincon city limits. The City has preliminarily explored the feasibility of expanding the grill area to seat about 125 customers. As one example, the captive audience Lost Plantation community (500 homes plus 100 in nearby Williamsburg) may be a relatively rich target for additional demand. Part of this demand may come from food & beverage service to the LP community clubhouse pool, which is directly across from the LPGC parking lot. Current golf course management also believes there is a good opportunity to market and sell more golf and non-golf events with the addition of an outdoor event pavilion. Attached for your reference is additional information designed to help interested parties ascertain the scope of current operations. Attachment A: Lost Plantation GC Grille Equipment List Attachment B: Current Menu and Pricing Attachment C: Facility Improvement Needs 3. CITY OBJECTIVES The intent of this RFEI is to provide the City of Rincon with sufficient information to decide whether outsourcing the food & beverage operations at LPGC is a viable alternative to selfoperation, from both financial and customer service perspectives. Should the City ultimately choose to have a private vendor operate a food & beverage concession, it is the intent and expectation of the City that the concessionaire will provide customers affordable, high quality food & beverage and excellent service. LPGC is first, and foremost, a golf course. As such, a private vendor would be expected to ensure that golfers continue to receive the highest priority in terms of good quality, convenient and reasonably priced food & beverage service. The vendor would also be expected to work in 3

4 cooperation with the City and golf course staff to ensure that the facilitation of golf outings that include food & beverage service is seamless, recognizing that - on occasion this may require some flexibility on pricing of food & beverage items (vendor will not be expected to take a loss without compensation from the City). Safeguards and compliance mechanisms will be built into any contract between the City and a food & beverage operator to ensure this cooperation. Under a concession arrangement, the City would provide use of the premises, kitchen area, storage areas, furniture, equipment, furniture & fixtures, restrooms, etc. in an as is condition. The City will view favorably any expressions of interest that include plans for the concessionaire to make improvements or enhancements to the grill facilities, clubhouse deck, restrooms, etc., or potentially even add an outside pavilion, in exchange for potential modifications to the agreement terms (e.g., rent percentage, length of initial term) by the City. See Attachment C for a preliminary list of needed improvements at the LPGC clubhouse as identified by the golf course manager and the City. Improvements have been identified with goal of enhancing the overall atmosphere and increasing sales/revenue opportunities. City Objectives and Expectations for Food & Beverage Service at LPGC The City has identified the following additional high-priority objectives to be addressed by a potential lessee of the food & beverage services at LPGC. The City is seeking an expression of interest from an experienced operator that would be reliable, responsible, and responsive to the needs of the customers, patrons, and the City of Rincon, and that would provide, at a minimum: High quality culinary products, meals, and beverages for both golf and non-golf customers of the grill - and for both daily dining and special events - at a reasonable price and in sufficient quantity. Depending on the results of survey work currently being undertaken by the City, the vendor may be expected to provide on-site catering/delivery service to the Lost Plantation and Williamsburg residential communities, including the pool at the LP clubhouse. A high quality and pleasant system of product and service delivery, and associated sanitary disposal. An aesthetically pleasing atmosphere of product and service delivery, and related sanitary disposal. A clean, sanitary, and healthy system of physical plant maintenance & operations that conforms to all City, County, State, and Federal Building, food service, restaurant operations, malt beverage/liquor dispensing regulations, and health codes. A food & beverage service level that maximizes the patronage of golf customers, residents of the Lost Plantation and Williamsburg communities, and the general public, for both daily use and special events (e.g., meetings, banquets, golf outings, theme nights, game watching parties, etc.). New customer communications, marketing and direct selling initiatives, including cooperative marketing with the City of Rincon, and direct selling to the LP and Williamsburg communities, area lodging properties, and local businesses, civic and charitable organizations, etc. 4

5 A cohesive system to order, purchase, dispense, inventory, track, control, and handle the waste stream of all products, materials, and supplies involved in the operations of restaurant and catering service. An accurate, up-to-date, efficient, and understandable means of business accounting and operations record keeping and reporting system. In addition to meeting these basic service objectives, a private operator would be expected to: Work in cooperation with the City and the golf course manager to ensure high quality food & beverage service to golfers, including that provided during golf outings & tournaments. Successfully integrate high quality, convenient service to golfers with service for a growing non-golf customer base for the grill. Work with the City to develop a comprehensive plan for future improvements to the grill area, deck, restrooms, etc. Operator will contribute to, or fully fund, the cost of high priority improvements and maintenance needs (see Attachment C). Provide beverage cart service, at a minimum, on weekends and during outings / special events. Operator will maintain all City-owned equipment to a high level and will supply, at their own cost, any additional kitchen equipment, furniture, fixtures, etc. necessary to provide the service standards outlined above. Make a guaranteed annual (or monthly, depending on terms) payment to the City for the operation of the LPGC grill and other food & beverage services. As noted above, consideration will be given by the City to granting temporary rent abatements, depending on the level of facility improvements undertaken by the vendor. Request for Proposal (RFP) Based on the quality and level of interest expressed in response to this RFEI, the City may decide to issue a formal request for proposal (RFP) for lease/concession of the food & beverage operation at LPGC. A formal RFP would include specifics regarding operator requirements, city expectations, terms (e.g., rent percentage, required capital investment, length of term, and hours of operation, city and vendor responsibilities), insurance requirements, assumption of alcohol/liquor license, selection process, etc. The City also reserves the right to enter into contract negotiation with a proposer that has submitted a response deemed highly favorable to both parties. If an RFP is issued subsequent to the RFEI process, the City will be amenable to extending the initial term of the agreement and/or offering rent abatements to a well-capitalized operator that can communicate to the City strong and sustainable business and capital improvement plans for the food & beverage operation at Lost Plantation GC. 5

6 4. INSPECTION OF FACILITY / PRE-SUBMITTAL MEETING The City will hold an optional pre-submittal LPGC grill facility meeting on Tuesday, November 27, 2018 at 9:00 a.m. The meeting will be held at the LPGC clubhouse and will include a site tour and a Q&A period. If you are unable to attend on that date, the City may accommodate a separate facility tour if feasible. Respondents should call City Manager John Klimm (contact information above) by Wednesday, November 21 to see if an alternate time can be arranged. 5. SUBMITTAL OF REQUESTED INFORMATION Below are the guidelines for submittals to the RFEI. Questions may be submitted via only to the City Manager up until 4:00 p.m. eastern standard time on Friday, November 30, RFEI Timeline Please note the key dates with respect to this RFEI process in the following table. Based on the nature of the responses received, the City may opt to issue a formal Request for Proposals (RFP) or enter into a negotiation with one of the respondents. Date November 14, 2018 November 27, 2018 November 30, 2018 December 7, 2018 December 31, 2018 January 2019 January / February 2019 Activity City Releases RFEI Pre-Submittal Meeting & Tour (Optional) Deadline for Submitting Questions Necessary Addendums Issued Submission Deadline Responses Reviewed Possible Formal RFP Issuance or Contract Negotiation Response Requirements Interested operators should submit one original (1) and three (3) copies of documents that are responsive to the information requested below. Mailed submittals must be received no later than 2 p.m., Monday, DECEMBER 31, 2018, marked LOST PLANTATION GOLF CLUB F&B RFEI, ATTN: John Klimm, City Manager, and 302 S. Columbia Avenue, P.O. Box 232, Rincon, GA, Submittals may also be delivered in person to this address. All respondents should submit a Letter of Interest (LOI) that conveys why your company has interest in this potential concession/lease opportunity, including specific factors (e.g., facility, market, etc.) that lead you to believe, at least preliminarily, that the lease of LPGC food & beverage operation could be a viable and sustainable relationship for both the City and the Operator. Please describe in the LOI your preliminary vision (i.e., length of term, rent percentage, proposed facility improvements) regarding the potential structure of a lease arrangement that might be most appropriate and best suited to meeting the City s program goals and policy objectives described above, as well as being financially viable for your company. Also list your foremost concerns, if any, regarding the potential financial sustainability of a lease model for the LPGC food & beverage operation, based on the information presented in this RFEI. 6

7 In addition to the LOI, submittals should completely address the information requested below; all respondents should be succinct in order to facilitate an efficient review process. A. A brief history, overview, and identification of your company. B. Contact information for the company representative who will respond to questions or requests from the City for additional information. C. Description of the services provided by the company, including: 1. Vision, objectives, management/operational philosophies. 2. Size, location. 3. Numbers of years in operation. 4. Brief description of food & beverage venues under company s management in the past five years (including those, if any, at public golf courses in the greater Savannah area or state of Georgia); note whether those venues are still under company s management and/or ownership, as well as number of years. 5. Nature of relationship for these venues (i.e., fee-for-service, operating lease or concession, ownership, partnership, other). 6. Level of knowledge of the golf industry, particularly in Georgia. 7. Description of company s philosophical approach and experience in the management of food and beverage operations. 8. Level of expertise in services offered, staff training, certifications, etc. 9. Financial status of the company. 10. Relationship to any larger business entity. D. Proposed Services 1. Description of the general approach respondent would propose to take in achieving the goals and policies set forth by the City in Section 3 above. 2. Provide examples of how this approach has proved successful for other food & beverage venues (golf courses preferred) owned, managed or leased by your company. 3. Identification of issues that the City will need to consider/address and/or which require further discussion. 4. Identification of objectives from Section 3 above that the respondent believes are not feasible, advisable, or achievable. 5. Additional information not specifically requested that respondent believes to be relevant to the City s policy discussions in regard to Lost Plantation GC food & beverage service. 7

8 ATTACHMENT A Lost Plantation Grille Equipment 8

9 ATTACHMENT B Current Menu and Prices 9

10 ATTACHMENT C Potential Capital Improvements / Facility Investments The City and the golf course manager have prepared the following summary of improvement needs related to the clubhouse and food & beverage operation at Lost Plantation Golf Club. This list is provided for informational purposes, and is not intended to be exhaustive. The successful proposer to any formal RFP issued by the City subsequent to this RFEI process will be expected to work with the City of Rincon to develop a plan of improvements for the facility that may reflect some variations to the items listed below. However, the City expects that the successful bidder will ultimately be required to commit investment in facility improvements, with some level of commensurate rent abatements to be granted by the City in the years that investment is being made by the operator. Should the vendor agree to fund, or partially fund, larger expenditures such as expanding the seating capacity of the grill area and/or building an outdoor pavilion, the City will extend the initial term of the lease agreement and abate rent payments for a negotiated term. Insulate the clubhouse Replace air conditioning unit Interior design / remodeling work Covering back porch/deck area with a pitched patio awning Replace range hood Expand seating capacity to 125 Build outdoor open-air pavilion 10