Friday, May 18, 2012

Prospect Park Alliance Looking For $ Windfall In $74M Lakeside Center Ice Rink



The Prospect Park Alliance is negotiating with the city to run the $ 74 million 26-acre dollar Lakeside Center Ice Rink now slated to open in the Fall 2013. The deal would allow the non-profit to keep revenue in exchange for operating and maintaining the facility including two ice skating rinks, a roller rink during the summer, a café and adjacent rooms, boat rentals and possibly bicycle rentals. Instead of revenue going to the City's general fund it would be diverted to the Alliance. The deal went before the mayoral controlled Franchise and Concession Review Committee (FCRC) in March. The project has been plagued by cost overruns, delays and a loss of funding.





















May 20, 2012- Rink complex under construction. (Photo: Geoffrey Croft/NYC Park Advocates)

Brooklyn

Brooklyn’s biggest park could soon have a major cash cow to help clean up the mess left there by massive budget cuts, the New York Post has learned.

As complaints pile up about massive maintenance problems at Prospect Park, the nonprofit organization running the 585-acre green space is currently ironing out plans with the city to operate an under-construction, $74 million ice-skating rinks project there.

Such a deal to run Lakeside Center when it opens next year would mean a major windfall of at least hundreds of thousands of dollars in new revenues for the Prospect Park Alliance, which has seen its $12.3 million budget chopped by $1.1 million since 2007.

During that time, the popular park has also seen staffing drop, which critics say helped jumpstart problems like littering, rotting lakeside trees, lake pollution -- and even animal sacrificing rituals.

Paul Nelson, an Alliance spokesman, said the anticipated “sole-source licensing agreement” with the city to run Lakeside makes sense because it’ll benefit the park’s 10 million annual visitors.

“Whatever we get will go back into the park, which has lost a lot of funding because of the economy, ” said Nelson, adding a private vendor could “just pocket most of the profits.”

At Central Park, Donald Trump runs two popular ice rinks that raised $6.6 million in revenues last year. The city got back just $2.2 million for its general fund, which pays for police, firefighters and other expenses.

At Prospect Park, the stakes aren’t as high, but profits at Lakeside are still expected to dwarf the former Wollman Rink there.

In 2010, Wollman Rink generated $512,000 in revenues during its last year of operations with $232,000 from entrance fees heading back to the city’s general fund and the remaining $280,000 from other concessions going to the Alliance for park maintenance.

Under the new plan, the Alliance would collect all the revenues and put it towards maintaining the park.

However, there are critics.

“It'll set a bad precedent where high-profile parks have another way to get more funding and are treated better than ones in poorer neighborhoods,” said Geoffrey Croft of the NYC Park Advocates. “Prospect Park needs more funding, but it should be through the city’s general fund like everything else.”

Franchise and Concession Review Committee
NEW YORK CITY DEPARTMENT OF PARKS AND RECREATION
No. 1: IN THE MATTER of the intent to seek Franchise and Concession Review Committee approval to utilize a different procedure, pursuant to Section 1-16 of the Concession Rules of the City of New York, to negotiate a Sole Source Concession Agreement with Prospect Park Alliance, Inc. for the operation and maintenance of the Prospect Park Lakeside Center including two skate rinks during the winter, a roller rink during the summer, a café and adjacent rooms, boat rentals and possibly bicycle rentals at Prospect Park, Brooklyn.
Read More:


Brooklyn Blog - New York Post - May 17, 2012 - By Rich Calder

Prospect Park's Lakeside Rinks to Get City Backing
Brownstoner - May 17, 2012

Lakeside Center Could be Prospect Park's 'Financial Windfall'
Prospect Heights Patch - May 17, 2012

A Walk In The Park - March 20, 2012



CONCESSION AGREEMENT PRE-SOLICITATION REVIEW MEMORANDUM

A. DETERMINATION TO UTILIZE OTHER THAN COMPETITIVE SEALED BIDS N/A
Instructions: Attach copy of draft RFP or other solicitation document, and check all applicable box(es) below. The Agency has determined that it is not practicable or advantageous to use Competitive Sealed
Bids because:

Specifications cannot be made sufficiently definite and certain to permit selection based on revenue to the City alone.

Judgment is required in evaluating competing proposals, and it is in the best interest of the City to require a balancing of revenue to the City, quality and other factors.


The agency will be pursuing a negotiated concession for the reasons listed is section (B)(3)(b) Other (Describe)

The New York City Department of Parks and Recreation (Parks) will be pursuing a sole source concession agreement (Agreement) pursuant to Section 1-16 of the Concession Rules of the City of New York (different procedures) for the reasons listed in Section (B)(2) below.

B. DETERMINATION TO USE OTHER THAN COMPETITIVE SEALED PROPOSALS N/A1. Briefly summarize the terms and conditions of the concession. Add additional sheet(s), if
necessary.

To be determined at a later date – when/if the Franchise and Concession Review Committee (FCRC) approves the use of a different procedure to negotiate an Agreement with the Prospect Park Alliance, Inc. (PPA).

2. Briefly explain the basis for the determination not to solicit Competitive Sealed Proposals. [Explain]
A $74 million restoration of 26 acres of parkland is underway at Prospect Park. The restoration project (“Lakeside at Prospect Park”) is restoring the Prospect Lake area and its shoreline as well as adding five acres to Prospect Lake and three acres of green space, and includes the development of a 26,000 square foot facility called the Prospect Park Lakeside Center (“Lakeside Center”). The Lakeside Center, expected to open in winter of 2012/2013, will be a major addition to the landscape of Prospect Park, and will replace Kate Wollman Rink. The amenities the Lakeside Center will offer include ice skating, hockey, roller skating, free water play, boat rentals and food service and may include bicycle rentals.

PPA was formed in 1987 to restore Prospect Park after years of budget cuts resulted in a deterioration of its natural areas and a decline in usage. In partnership with Parks, PPA restores, develops and operates Prospect Park for the enjoyment of all patrons by caring for the natural environment, preserving the historic design and serving the public through various facilities and programs. According to the current agreement for the maintenance of Prospect Park between Parks and PPA, which was entered into in July 2010 for one (1) five-year term, with three (3) five- year renewal options, PPA is required to use all of its revenues, income, donations and other sources of funding to cover PPA’s administrative costs, expenses of maintaining, operating, improving or expanding Prospect Park, or for the provision of programming at Prospect Park.
PPA will have raised $20 million for Lakeside at Prospect Park in private funds, and helped to raise over $54 million in city, state and federal funds. While Lakeside at Prospect Park is a joint public/private capital endeavor, PPA continues to be instrumental both to the fundraising portion of the project, and to the oversight of the design, development and construction of Lakeside at Prospect Park including the Lakeside Center.

PPA was formed for the express purpose of promoting and assisting Parks “in the restoration, maintenance and management” of Prospect Park. PPA has a proven track record of doing this. It has held licenses to operate many concessions in the Park, including pedal boat rentals, the Carousel and the Tennis Center as well as critical portions of the Kate Wollman Rink. It has dramatically improved service to the public and increased attendance at these concessions and in the whole Park (visitation has increased from 1.5M in the early 1980’s to 9M today). PPA has managed a wide variety of recreational and educational programs for the public in the Park: at the Tennis Center, Audubon Center at the Boathouse and at Kate Wollman Rink. These programs would be continued at the Lakeside Center. PPA knows the public who visit the Park very well, understands how each element within the Park fits together and promotes the whole Park experience as well as the individual activities and programs on offer.

Historically, Parks operated and maintained Kate Wollman Rink, including during the summer in order to provide public restrooms at great expense. Should Parks issue an Agreement to PPA, PPA would be expected to perform maintenance, regular non-structural repairs, pay and manage all service contracts, pay for all operational expenses incurred for security of the building and rinks, and oversee operations and maintenance year round.

Based on the aforementioned factors, Parks believes that it is in the City’s best interest to award an Agreement to PPA for the operation and maintenance of the Lakeside Center, including two skate rinks during the winter, one roller rink during the summer, a café and adjacent rooms, boat rentals and possibly bicycle rentals, at Prospect Park, Brooklyn.
  1. 3a.  Briefly explain the selection procedure that will be utilized. [Explain]
    Parks is requesting FCRC authorization to utilize a different procedure, pursuant to Section 1-16 of the Concession Rules of the City of New York, to negotiate an Agreement with PPA, which will go before the FCRC on March 14, 2012 (“Step 1”). Once negotiated and if determined by Parks to be a significant concession, Parks and the FCRC will hold a joint public hearing on the proposed Agreement before presenting it to the FCRC for “Step 2” approval at a second public meeting. If Parks determines the concession to be non-significant, Parks will present the fully negotiated Agreement with PPA to the FCRC and request the required FCRC authorization to enter into the Agreement directly (without the need for an initial joint public hearing).

  2. 3b.  If the selection procedure is a negotiated concession, check the applicable box: N/A
    The Agency made a determination that it is not practicable and/or advantageous to award a concession by competitive sealed bidding or competitive sealed proposals due to the existence of a time-sensitive situation where a concession must be awarded quickly because:
    The Agency has an opportunity to obtain significant revenues that would be lost or substantially diminished should the agency be required to solicit the concession by competitive sealed bids or competitive sealed proposals and the diminished revenue does not relate only to the present value of the revenue because of the additional time needed to solicit competitive sealed bids or competitive sealed proposals; [Explain]

    An existing concessionaire has been terminated, has defaulted, has withdrawn from, or has repudiated a concession agreement, or has become otherwise unavailable; [Explain]

    The Agency has decided, for unanticipated reasons, not to renew an existing concession in the best interest of the City and requires a substitute/successor concessionaire. [Explain]

    DCAS is awarding a concession to an owner of property adjacent to the concession property, or to a business located on such adjacent property, and has determined that it is not in the best interest of the City to award the concession pursuant to a competitive process because of the layout or some other characteristic of the property, or because of a unique service that can be performed only by the proposed concessionaire. [Explain]
Approved by CCPO: ___________________________________on __/___/__.
4. If the Agency has/will request unanimous FCRC approval to waive advance written notice each affected CB/BP that a selection procedure other than CSB or CSP will be utilized, explain the exigent circumstances. [Explain] N/A


The Arsenal
Central Park
New York, New York 10065


Elizabeth W. Smith Assistant Commissioner Revenue and Marketing (212) 360-1366 betsy.smith@parks.nyc.gov
City of New York Parks & Recreation
Adrian Benepe Commissioner

MEMORANDUM
TO: Hon. Martin Markowitz, President of the Borough of Brooklyn Mr. Craig Hammerman, Brooklyn Community Board #6

Mr. Jeremy Laufer, Brooklyn Community Board #7 Ms. Michelle George, Brooklyn Community Board #8 Ms. Pearl R. Miles, Brooklyn Community Board #9 Mr. Shawn Campbell, Brooklyn Community Board #14

FROM: Charlotte Hall, Project Manager

SUBJECT: Notice of Intent to Seek Franchise and Concession Review Committee Approval to Utilize a Different Procedure to Negotiate a Sole Source License Agreement with the Prospect Park Alliance, Inc. for the Operation and Maintenance of the Prospect Park Lakeside Center, including two skate rinks during the winter, one roller rink during the summer, a café and adjacent rooms, and boat and bicycle rentals at Prospect Park, Brooklyn

DATE: December 2, 2011

Pursuant to Section 1-16 of the Concession Rules of the City of New York, this is to notify the Brooklyn Borough President and Brooklyn Community Boards 6, 7, 8, 9 and 14 that the New York City Department of Parks and Recreation is seeking Franchise and Concession Review Committee approval to utilize a different procedure to negotiate a sole source license agreement (Agreement) with the Prospect Park Alliance, Inc. (PPA) for the Operation and Maintenance of the Prospect Park Lakeside Center, including two skate rinks during the winter, one roller rink during the summer, a café and adjacent rooms, and boat and bicycle rentals at Prospect Park, Brooklyn.

If you have any questions or comments, please feel free to contact me by phone at (212) 360-3407 or via email at charlotte.hall@parks.nyc.gov 

http://www.nyc.gov/html/mocs/downloads/pdf/fcrc_other/meeting_documents_03_14_2012.pdf


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