HomeMy WebLinkAboutContract 1796September 7, 2004
Mr. Robert Streetar
Community Development Director
City of Columbia Heights
590 40th Avenue NE
Columbia Heights, MN 55421
Dear Mr. Streetar:
The attached proposal outlines a specific work program and costs to complete a market demand analysis
for a community and recreation center in Columbia Heights, Minnesota. As we understand, the proposed
facility would combine social, recreational and public facilities under one roof. Fees would be charged to
utilize recreational equipment/facilities, rental of meeting room space, among other items. We understand
that individual components being considered include multiple gymnasiums, aerobics/workout area, and
meeting rooms and that you want to assess the potential usage of the facility from various user groups to
assess total demand and potential revenues that may be generated.
Our work program includes: definition of an appropriate draw area for the facility (consumer users versus
institutional users), quantify number, type and age of households and household composition (i.e.
households living alone, households with own children under 18, household size), and survey existing
competitive facilities in the area including information on size (square feet), features and amenities, fees,
user profile (including proportion of institutional usage), number of meeting rooms (if applicable). We
will also identify any pending developments that may compete with the proposed facility. Demand
calculations will estimate the potential demand that would be generated from draw area consumer
households; demand from institutional users would be derived with assistance from the City in identifying
the number and type of institutional users that would use the facility; recommendations will include
utilization estimates and estimates usage fees for the facilities.
The assignment would be completed for an all-inclusive fee of $7,000.00. We would be able to deliver a
draft report to the City within 45 days of date of authorization to proceed to deliver a draft report to the
City.
We would be pleased to assist you with this analysis.
Sincerely;
MAXFIELD RESEARCH INC.
Mary C. Bujold
President
'615 1~t Avenue NE, Minneapolis, MN 55413
(612) 338-0012 fax(612) 904-7979
www.maxfieldresearch.corn
ield
Resca,,ch lac.
September 7, 2004
Mr. Robert Streetar
Community Development Director
City of Columbia Heights
590 40th Avenue NE
Columbia Heights, MN 55421
PROPOSAL/CONTRACT FOR PROFESSIONAL SERVICES
Maxfield Research Inc. proposes to provide research and consulting services to the City of
Columbia Heights (the Client) to conduct a market demand analysis for a proposed community
center (recreational facility) in the City of Columbia Heights, Minnesota. The analysis will
address the potential utilization, fees, and amenities for the facility in order to optimize usage.
SCOPE OF SERVICES
D'emographic Analysis
1. Identification of a primary draw area.
2. Identification of a secondary draw area.
3. Analyze primary and secondary draw area growth trends through 2015 including:
a. population
b. · households
c. employment
4. Analyze draw area population and household characteristics through 2015
including:
a. age distribution
b. household type
c. household size
d. income distribution
5. Summarize demographic trends as they relate to the potential demand for
community and recreational facilities in the draw area and specifically in
Columbia Heights.
Bo
Competitive Market Situation Analysis
1. Inventory public and private recreational facilities in the primary market area.
Provide information on:
a. size of facility (square feet)
b. features and amenities
c. ancillary facilities (restaurants, refreshments, retail shop)
d. customer profile
e. fees
f. utilization rates (if available)
615 Ist Avenue NE, Minneapolis, MN 55413
(612) 338-0012 fax (612) 904-7979
www.maxfieldresearch.corn
Mr. Robert Streetar
City of Columbia Heights
September 7, 2004
Page 2
3.
4.
5.
g. number of users
h. market share
Identify amenities in high demand and those in low demand.
Identify needs currently not being served.
Identify any new trends that would require new types of equipment/facilities.
Identify current and future construction of public and private recreational facilities
or expansions of existing facilities. Specify amenities to be included.
Ba~ed on market area demographic profile and existing facilities, identify and
rank amenities according to most/least desired.
Identify best and worst practices among competitive facilities, both public and
private; identify successful partnerships or conversely, identify features and
amenities that are substantially underutilized.
Demand Calculations and Recommendations
1. Based on demographic profile, calculate potential demand from consumer user
groups.
2. Combine consumer user groups with information gathered from City input on
institutional or other public group usage.
3. Develop potential user pool and determine potential usage of various facility
amenities.
4. Identify appropriate fee charges for various types of user groups and usage of
various facilities.
Meetings and Report Preparation
1. Report Preparation.
2. One internal research review meeting.
3. One meeting with city staff to review draft report.
Total Cost for Market Demand Analysis
$7,000.00
COST OF SERVICES
The above Scope of Services will be completed far ~q~.van Thousand ~,~,'o rq'~ nnn r~m
including all out-of-pocket expenses and five copies of the final report with payment as follows:
a) the balance of the contract amount due in installments at Maxfield Research Inc.'s discretion.
An executed copy of this agreement will be required prior to Maxfield Research Inc. beginning
work on this analysis.
Any meeting time requested by the Client beyond that outlined in the above Scope of Services
will be billed in addition at our standard hourly rates for staff time which range from $55.00 to
$150.00 per hour.
615 1~t Avenue NE, Minneapolis, MN 55413
(612) 338-0012 fax (612) 904-7979
www. maxfieldresearch.com
Mr. Robert Streetar
City of Columbia Heights
September 7, 2004
Page 3
WORK PRODUCT
The Market Demand Analysis will be completed in bound report format.
COMPLETION TIME
The Market Demand Analysis will be completed within 45 days of receipt of an executed
contract and initial payment in the offices of Maxfield Research Inc., unless delayed by
unexpected emergencies, forces beyond the control of one or both parties or by written
agreement of the parties.
PAYMENT
All invoices are payable to Maxfield Research Inc. within fifteen (15) days of receipt of an
invoice showing the work completed and the direct costs for expenses. A finance charge of one
and one-half percent (1.5%) per month will be added to the unpaid balance of each invoice not
paid within thirty (30) days.
DISCLAIMER
The objective of this research assignment is to gather and analyze as many market components
as is reasonable within the time limits and projected staff hours set forth in this agreement.
We assume no responsibility for matters legal in character. The property/land is assumed to be
free and clear of any indebtedness, liens or encumbrances; and good and marketable title and
competent management are assumed, unless otherwise stated.
If building plans or site plans are included in the report, they are to be considered only
approximate and are submitted to assist the reader in visualizing the property. We assume no
Certain information and statistics contained in the report, which are the basis for conclusions in
the report, will be furnished by other independent sources. While we believe this information is
reliable, it has not been independently verified by us and we assume no responsibility for its
accuracy.
The conclusions in the report are based on our best judgrnents as market research consultants.
Maxfield Research Inc. disclaims any express or implied warranty of assurance of representation
that the projections or conclusions will be realized as stated. The result of the proposed project
may be achieved, but also may vary due to changing market conditions, characteristic of the real
615 Ist Avenue NE, Minneapolis, MN 55413
(612) 338-0012 fax (612) 904-7979
www. maxfieldresearch.com
Mr. Robert Streetar
City of Columbia Heights
September 7, 2004
Page 4
estate industry, changes in facts that were the basis of conclusions in this report, or other
unforeseen- circumstances.
In the event payment is not received on a timely basis, Max field Research Inc. shall be entitled to
a lien against the subject property.
This agreement will be construed according to the la~vs of the State of Minnesota.
TERMINATION
This agreement may be terminated upon written notification of either party to the other. In the
event of termination, the Client will pay Maxfield Research Inc. for staff hours performed at the
firm's normal hourly rates, plus all expenses incurred through the date of termination.
The costs outlined in the Scope of Services shall remain in effect for a period of 90 days from the
date listed at the top of this contract.
If this proposal meets with your approval, please sign and return one copy to the offices of
Maxfield Research Inc.
Agreed to this c:~/ day of ,~~ 2004.
MAXFIELD RESEARCH INC.
Mary C. Bujold
President
CITY OF COLUMBIA HEIGHTS
~/b~uSrfi~' te;t~a~v ~l~p=-ent Director
Don MuYzyn, Jr.- Pff~si~N~nt
Waltbr R. F6hst' E{<ecutive Director
615 Ist Avenue NE, Minneapolis, MN 55413
(612) 338-0012 fax (612) 904-7979
www. maxfieldresearch.com