Global Spectrum pitches investment, improvement
Global Spectrum, which is competing with SMG for the City’s facilities management contract, says it can offer the City a “significantly” lower fixed management fee and a more favorable incentive structure, among other benefits.
The Daily Record obtained a copy of a six-page letter. The letter, dated May 16, was addressed to the City from Global Spectrum.
May 16 was the deadline for the Request for Proposal responses.
Global Spectrum Chief Operating Officer John Page, whose name is on document, told the Daily Record Thursday that the documents were a cover letter that accompanied Global’s overall bid.
He declined to discuss the details of the bid.
By state statute, the City does not have to release copies of the full responses to the Request for Proposal until June 16.
When asked for copies of the bids from Global Spectrum and SMG, City spokesman David DeCamp cited the exemption in Florida Statutes that:
“Sealed bids, proposals, or replies received by an agency pursuant to a competitive solicitation are exempt from s. 119.07(1) and s. 24(a), Art. I of the State Constitution until such time as the agency provides notice of an intended decision or until 30 days after opening the bids, proposals, or final replies, whichever is earlier.”
SMG representative Michael Munz declined this morning to comment about details of the company’s bid.
“It is our understanding that in order to be in compliance with the procurement process that we are not to release any information in the RFP until it becomes public record, in accordance with the procurement process,” Munz said this morning.
SMG was founded in 1977 and provides management services to 220 public assembly facilities.
Munz provided an excerpt from a report filed with the Jacksonville Economic Development Commission:
“Since 2009, there has been an upward trend of increased revenues, resulting in a direct decrease in the subsidy that has been supported by the City’s annual budget.
“From 2009 through the current fiscal year, SMG projects that it will have reduced the City’s subsidy by more than $1 million, and those savings are expected to reach $2.4 million in fiscal year 2013,” according to the excerpt.
Munz also provided information that “since Larry Wilson became general manager during the last three years, SMG’s corporate booking team has been directly responsible for bringing 18 shows to the arena and 33 events to the Times-Union Center for the Performing Arts, generating about $2.5 million in profits for the City.”
The Global Spectrum letter was addressed to Alex Baker, a professional services specialist with the City.
Philadelphia-based Global Spectrum, a subsidiary of Comcast Spectacor, is bidding to provide facilities management services for EverBank Field, Jacksonville Veterans Memorial Arena, the Baseball Grounds of Jacksonville, the Times-Union Center, the Equestrian Center, the Osborn Convention Center and the Ritz Theatre and Museum.
Asked about the lower fixed management fees and incentive structure, Page said the company was optimistic it could deliver.
“We think we can,” he said.
SMG has been the facilities management services provider since 1993, when the services were last competitively bid. SMG receives about $1 million annually for its services.
City Chief Financial Officer Ronnie Belton said in a March Daily Record interview that putting the contract out to bid again is a “good exercise” for potential taxpayer savings.
Global Spectrum stated in the letter that other advantages it will offer are:
• A “strategic and business relationship” between the company and Live Nation, a live-events company that specializes in concert promotion that would increase the number of concert attractions at City facilities.
• A $1.5 million capital contribution to be used toward revenue-generating enhancements and/or possibly a new scoreboard at EverBank field.
• Its ability to successfully transition from one management company to another. It says it “has successfully transitioned seven SMG accounts to Global Spectrum management and we are eager to make the Jacksonville facilities number eight.”
Page said he heard the scoreboard possibly needed improvements. Other capital contributions would be determined after the company arrived, he said.
The letter also said Global Spectrum developed an “Economic Inclusion Plan” that highlights how local businesses and community organizations will “tie into the local economic development of Jacksonville Facilities.”
It said Global anticipates hiring 113 full-time employees in its local office if it is awarded the bid. It said it would hire full-time and part-time jobs locally and also from the military community.
The letter also discusses Downtown development and refers to the XFINITY Live! Philadelphia dining and entertainment district in the Wells Fargo complex.
That venue’s website features several restaurants around a large theater system showcasing sports and movies.
The project was developed through a partnership with The Cordish Companies and Global Spectrum. The letter said Global Spectrum “believes there is a similar potential in development a Jacksonville Live! concept near the Jacksonville Facilities.”
“This concept will aid in the revitalization of Downtown Jacksonville by creating new jobs for local residents and by yielding millions of dollars of direct economic benefits,” it said.
The letter says The Cordish Companies’ experience “in all disciplines necessary for the development of such projects” include engineering, architectural design, construction expertise, operations and finance.
“Global Spectrum’s Development Division is willing to make an investment toward development services in Jacksonville,” according to the letter.
It said those services could include:
• Schematic Planning, $50,000.
• Concepting Plan, $50,000.
• Financial Model, $50,000.
• Case studies, $25,000.
• Exploratory meetings in City of Jacksonville, $15,000.
• Miscellaneous Expenses, $10,000.
Global Spectrum said it was established in 1994 and has 112 client venues consisting of 40 arenas, 33 conference and convention centers, 13 stadiums, six performing arts centers and theaters and 20 specialized venues.
Page said he was waiting to hear from the City about the next step in the bidding process and that he would be part of the group making the presentation.
DeCamp said Friday that a review panel is expected to make its recommendation June 15. He said that in-person presentations are still an option but not a requirement.
DeCamp said this morning that because of the nature of the bidding process, the administration declined comment on the quality of the proposals.