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Consideration of request by Public Works Director for approval of a three-year contract with two optional one year extensions with Pour Inc. for the management of room rentals at the Muellner Building at Hart Park
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Submitted by:
David Simpson, P.E.
Department
Public Works
A. Issue
With the remodel of the Muellner Building at Hart Park completed, the Common Council awarded a contract in January to a vendor to manage rental spaces within the Muellner Building. On February 4th, that vendor made City staff aware that they had changed their mind and were no longer able to commit to completing the responsibilities of the contract. City staff then reached out to multiple vendors requesting partnership consideration and received proposals from two vendors and we are recommending award of a contract at this time.
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 essentially complete at this time. 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 a company that was awarded the contract but later declined to enter into an agreement. Following that declination staff reached out to multiple vendors that were recommended from other venue operators. We received proposals from Pour Inc., and 41Fork, and are recommending consideration of award to one of the vendors at this time.
City staff evaluated the proposals received and met the owners from each company to discuss their proposal. We were happy with both vendors and feel that both companies would be able to deliver solid results for the City. Our recommendation of award is based on a few key differences that Pour Inc. has that we feel will serve our particular circumstances best. Pour Inc. is a smaller Wauwatosa owned business with both co-owners living in Wauwatosa and their offices have recently moved to Wauwatosa. Pour Inc. does not currently have an exclusive venue so the Muellner Building would have all of their attention. They are also a smaller company which allows them to have lower overhead and thus, allow them to be more flexible for the very unique situation we have with the Curling Club and Senior Center sharing the building. The last unique offering in their proposal includes events hosted by their organization that would provide offerings to the public to attend. Some examples given by Pour Inc include the potential to host a summer beer & wine garden, movie nights, dry January events, and cocktail competitions, to name a few. These types of events would provide revenue to the City while also expanding opportunities for the public to enjoy events at the Muellner Building.
Pour Inc.’s proposal includes the following revenue splits; room rental fees 85% City/15% Pour Inc., bar revenue 15% City/85% Pour Inc. (Pour Inc. would apply for a liquor license if a contract is approved) and service fees 50% City/50% Pour Inc. Rental rates will be set based on market demands. Pour Inc.’s proposal identifies several future improvements that may be needed to maximize revenue. Staff will work with Pour Inc. 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 Pour Inc. for the management of room rentals at the Muellner Building at Hart Park.