title
Consideration of request by Public Works Director for approval of a three-year contract with two optional one year extensions with Événement for the management of room rentals at the Muellner Building at Hart Park
body
Submitted by:
David Simpson, P.E.
Department
Public Works
A. Issue
With the remodel of the Muellner Building at Hart Park nearing completion, City staff is recommending utilization of a professional event management company to manage rental spaces within the Muellner Building.
B. Background/Options
Due to the incredibly successful partnership between the City, the Wauwatosa Curling Club, and the Tourism Commission, the remodel of much of the Muellner Building is nearing completion. With the remodel of the building the City now has the opportunity to increase revenue by hosting significant events in the improved spaces production through increased utilization of the rentable spaces within the building. In order to maximize the potential revenue it is recommended that a professional event management company be utilized to market, reserve, and host events in the building.
A Request for Proposals was issued on December 4, 2024 with responses due January 13th for a three-year contract to manage events at the Muellner Building outside of Senior Center and Curling Club use days and hours. One proposal was received from Événement, which is attached for reference. City staff evaluated the proposal and met with Événement to discuss their proposal and review their references. While we only received one proposal we are very impressed with the qualifications, experience, knowledge, and energy of the Événement team. Their proposal includes the following revenue splits; room rental fees 70% City/30% Événement, bar revenue 20% City/80% Événement (Événement would apply for a liquor license if a contract is approved) and catering revenue 50% City/50% Événement. Rental rates will be set based on market demands. Événement’s proposal identifies several future improvements that may be needed to maximize revenue. Staff will work with Événement to evaluate the feasibility of these improvements through a cost-benefit analysis once actual revenues begin to be realized by the City and utilize the standard budgeting/purchasing policy to implement where beneficial. The total revenue generated from this contract will vary and it will take time for the full revenue potential to be reached given that many large events have planning windows of a year or more.
C. Strategic Plan (Area of Focus)
Priority Area Three: Infrastructure
D. Fiscal Impact
The contract will generate revenue for the City based on revenue shares outlined above. It is anticipated that the City’s revenue share may be as much as $25,000 per month during peak rental season, which will hopefully allow for the creation of the building reserve fund previously discussed with the Committee during approval of the Curling Club lease.
E. Recommendation
Authorize entering into a three year contract with two optional one year extensions with Événement for the management of room rentals at the Muellner Building at Hart Park.