Business

Land Board To Build Brew Pub?

Not satisfied with the controversial ownership of a public storage business, Idaho’s land board has apparently decided to enter the brew pub and restaurant business.

We doubt if they will send out press releases, but the state agency is advertising for a construction manager to oversee building a restaurant and brewing facility.

The request for qualifications is chock full of justification for the construction project–citing a constitutional mandate for the board to get the best return possible for the educational endowment fund.

There is no mention about the details or the location for the business which will be built tax-free. In the case of the storage business, the state operates it as a business, which pays no income or property taxes to the city, county or school district.

Legislators and some business leaders were concerned about the ownership during the past session.

We predict those concerns will not be satisfied if the state builds–much less owns and operates a brew pub and restaurant. This move could lead to a constitutional amendment to keep the government out of business activities.

In the case of the new project, they will no doubt make claims of creating jobs and a market for Idaho hopps, barley, and beer. Whether they just build the restaurant and pub or own and operate it, government should not be competing with the private sector. While the funds are NOT tax dollars, they are public money and are being used to unfairly compete with the private sector.

UPDATE 4PM–The Dept. of Lands actin g director tells the Spokesman-Review’s BETSY RUSSELL the state will NOT operate a pub–they are just making the investment for a tennant who will rent a building downtown already owned by the state.

We know of several restaurants in the area of 8th and 9th. While the state will not identify their new tennant who is worthy of a custom construction project worthy of a manager, we doubt the project will pose any competition to existing facilities. Expansion perhaps?

GUARDIAN reader and on-line research assistant CLANCY provides some insight in his comment on this post.
See entire text below.

STATE OF IDAHO
DEPARTMENT OF LANDS
RESTAURANT CONSTRUCTION MANAGER
RFQ 12-0002
REQUEST FOR QUALIFICATIONS
REQUEST FOR QUALIFICATIONS
AND
INSTRUCTIONS
The Idaho Department of Lands [IDL], acting on behalf of the State Board of Land Commissioners, is seeking qualified firms to submit a Statement of Qualifications for Construction Management with significant Restaurant experience.
STATEMENT OF QUALIFICATIONS DEADLINE AND DELIVERY REQUIREMENTS
Statement of Qualifications must be received by the Idaho Department of Lands at 300 N 6th St Suite 103, Boise, Idaho, 83702 by 3:00 PM M.D.T. August 26, 2011. The Department of Lands is not responsible for lost or undelivered Statement of Qualifications or for failure of the United States Postal Service or the Idaho State Capital Mall Central Mail Room to deliver Statement of Qualifications to the Idaho Department of Lands by the deadline. Late Statement of Qualifications will not be accepted. Fax Statement of Qualifications will not be accepted.
Delivery Address:
Idaho Department of Lands
ATTN: Tony Pirc
300 N. 6th St Suite 103
Boise, ID 83702
Statements of Qualifications are to be mailed in a sealed package and are to be marked in the lower left hand corner with the following information:
Statement of Qualifications for: 12-0002 Restaurant Construction Manager
Request for Qualifications Close: 8/26/11 at 3 P.M. M.D.T.
A Statement of Qualifications submitted using “Express/Overnight” services must be shipped in a separate sealed inner envelope identified as stated above and enclosed inside the “Express/Overnight” shipping envelope.
QUESTIONS
Further information is available by contacting Tony Pirc, Purchasing Agent, at (208) 334-0256 or by email at tpirc@idl.idaho.gov.
INTRODUCTION
The Idaho Department of Lands (IDL) is seeking a qualified team to submit a Statement of Qualifications demonstrating the ability to provide Construction Management Services with significant Restaurant experience to the Idaho Department of Lands and represent the Agency’s interests in having projects completed on-time, within budget, and as planned.
Construction Management firms are expected to have the expertise necessary to perform the duties described hereafter. IDL’s primary goal is to provide long-term, sustainable revenue to the Beneficiary groups that directly benefit from the Endowment assets within the State of Idaho. The goal of this RFQ is to develop a list of qualified Construction Managers on whom the agency can call to work with agency personnel to oversee the completion of these restaurant projects.
IDL hereby requests Statement of Qualifications (SOQ) from Construction Managers who are interested in providing Construction Management Services for the Idaho State Board of Land Commissioners (Land Board).
BACKGROUND
When Idaho was admitted to the Union as the 43rd State in 1890, it was granted approximately 3,672,000 acres of land for the support of State institutions. The land was granted under the condition that it be managed in perpetuity as a trust for the beneficiary institutions. This mandate was codified in Article IX Section 8 of the Idaho Constitution, which states that the lands are to be managed, “…in such manner as will secure the maximum long term financial return to the institution to which granted.” Chief among the beneficiaries are the public schools, which received two sections of every township in the State (1/18 of the total land base). Other institutions include the University of Idaho, the Agricultural College, the Normal Schools, Penitentiary, Charitable Institutions, State Hospital South, School of Science and Capitol (formerly Public Buildings).
Management activities on State Endowment Trust Land are not intended to benefit the general public, but are directed solely to the good of the beneficiaries of the original land grants. Revenue generated from the management of these lands is deposited into the Earnings Reserve fund from which the costs of management and payments to the beneficiaries are made. Revenue from mineral royalties is deposited into the permanent endowment fund. Both the earnings reserve and permanent fund are invested by the Endowment Fund Investment Board. The investment return is distributed to the beneficiaries. Land sale revenue is deposited into the land bank and is available to purchase other land. If not expended for that purpose within five years, the land sale revenue is deposited into the permanent fund.
Management of Endowment Trust lands is entrusted to the State Board of Land Commissioners. The Idaho Department of Lands is the administrative arm of the Board and carries out the executive directives of the Board to meet the constitutional trust mandate.
The following is an excerpt from the State Trust Lands Asset Management Plan adopted by the Idaho State Board of Land Commissioners (Land Board). This plan provides the foundation for the Idaho Department of Lands, on behalf of the Land Board, to make management decisions for the Endowment Trust lands within the State of Idaho.
“Endowment assets of the State of Idaho consist of both land and funds. All endowment assets are held in trust by the State in nine endowment trusts. The State initially received grants of over 3.65 million acres of land in trust from the federal government in the Idaho Admissions Bill and through other federal acts. Over time, properties were sold or exchanged, with proceeds from the sales and certain other income deposited in the endowment funds.
The State Constitution establishes the State Board of Land Commissioners (Land Board) as the trustee over the assets of the nine endowments. As trust manager, the Land Board is obligated to manage the assets of each trust with undivided loyalty to the beneficiaries of the trusts. Idaho Code 58-101 created the Idaho Department of Lands (IDL) to serve as the manager of the non-financial assets of each trust on behalf of the Land Board. Similarly, Idaho Code 57-718 created the Endowment Fund Investment Board (EFIB) which formulates policy for, and manages the investment of, the financial assets.
Mission
All endowment assets of the State of Idaho must, per the State Constitution, be managed “in such manner as will secure the maximum long term financial return” to the trust beneficiaries. The assets will be managed to provide a perpetual stream of income to the beneficiaries by:
• Maximizing long-term financial return at a prudent level of risk,
• Protecting future generations’ purchasing power, and
• Providing a relatively stable and predictable payout
IDL RFQ 12-0002 1 Restaurant Construction Manager
Asset Management Philosophy
To fulfill its fiduciary duties to each individual endowment, the State of Idaho will:
• Manage the endowed land and financial assets as a whole trust on a total return basis.
• Seek to optimize risk and return from both the endowments’ land and financial assets through diversification of holdings.
• Ensure that significant land holdings will be maintained in perpetuity, since they provide material diversification and inflation protection to an endowment’s portfolio.
• Seek to reposition parcels to reduce risk, lower management costs and increase prospects for immediate and sustainable income, recognizing that much endowment land remains in the original scattered parcels obtained from the federal government.
• Provide for the appropriate and reasonable management expenses of each endowment from its own income.
• Accommodate public use of endowment lands, to the extent feasible, provided such use does not impair financial returns.
Performance Objectives
• Over time, ensure real returns for each endowment (after inflation and net of management expenses) perform at or above median compared to relevant peers.
• Assets will be grouped into classifications of similar character to facilitate performance monitoring and analyses of portfolio diversification and risk. Each asset class will have a targeted rate of return and is expected to perform at or above median compared to relevant peers.
• Over time, the return of land assets should compete favorably with the return of financial assets. Where determination of land value is problematic, performance will also be measured by discounting expected net cash flows.
Protection of Principal
• Proceeds from the sale of endowment lands will never be distributed, but must be reinvested in land within five years or transferred to the permanent endowment funds.
• Proceeds from extracted mineral resources will never be distributed but must be deposited to the permanent endowment funds.
• The principal of the permanent endowment funds, adjusted for inflation, will never be distributed, to protect the future purchasing power of the beneficiaries.
Distributions to Beneficiaries
• Renewable income from the land assets as well as cash income and capital gains above inflation from the permanent endowment funds will be deposited in the Earnings Reserve accounts.
• The Earnings Reserve accounts should buffer fluctuations in revenues to provide stable and predictable payouts to the beneficiaries. If an endowment’s Earnings Reserve account falls to zero, distributions must stop.
• Long-term spending policy and annual distributions are recommended by the EFIB and approved by the Land Board. The Legislature considers the approved distributions in setting annual appropriations for the beneficiaries. The Legislature also appropriates the operating budgets for the IDL and the EFIB from the Earnings Reserve accounts.
IDL RFQ 12-0002 2 Restaurant Construction Manager
SCOPE OF SERVICES
Restaurant Construction Manager
• The components of the restaurant will contain a: kitchen, bar, brewing area, dining area, covered patio, restrooms, walk-in freezer, office and data/electrical room.
• Work closely with the tenant, architect, engineer and IDL to construct a restaurant that is compatible with the floor space.
• Construct an easy flow kitchen work space.
• Come up with creative ideas to give the restaurant an open feeling including skylights.
• Construct a covered patio area with roll up doors that has the feel of an outdoor patio but can also be closed off during inclement weather.
• Construct a bar area that can both be utilized from the patio side and interior bar side.
• Work closely with the brew master on the construction of the brew area.
PURPOSE OF PROCEDURE
The Idaho Department of Lands “Qualification Based Selection” (QBS) is to comply with Idaho Code 67-2320. This procedure provides for an orderly process of:
1. Solicitation of professional qualifications
2. Evaluation and ranking of qualifications
3. Establishment of a ranked list of service providers by region
4. Negotiation of scope of services and fees
SOLICITATION CYCLE
It is anticipated that the solicitation cycle for RFQ 12-0002 shall be in force until December 31, 2014. The Idaho Department of Lands reserves the right to award future projects based upon ranking of qualifications of the Construction Manager selected by this RFQ, if deemed to be in the best interest of the Idaho Department of Lands. Solicitations by RFQ for “Statements of Qualifications” (SOQ) from applicants who desire to provide professional Construction Management Services will be made periodically hereafter at a time to meet the Idaho Department of Lands needs. Ranking of submittals, creation of service provider shortlist and applicant notification of ranking shall be determined within 60 calendar days of receipt of submittals of the RFQ due date. IDL RFQ 12-0002 3 Restaurant Construction Manager
STATEMENT OF QUALIFICATIONS CONTENT AND FORMAT
It is essential that the Agency be able to easily match a vendor’s response with this RFQ’s requirements for information. This RFQ and its format should be incorporated into the actual response. Where asked, indicate compliance and/or note any exceptions to the requirements and provide responses to any questions that follow. The four (4) printed versions of the proposals must be submitted on 8½ by 11-inch paper in four (4) individual standard three-ring binders. Please include a thumb drive copy or CD ROM (in pdf) of your proposal along with the printed copies. Foldouts for charts, tables, spreadsheets, and single-line diagrams are acceptable. Pre-printed materials, such as brochures or technical documents, may be included, but whenever possible should be placed within the three-ring binders. Submittals not provided in the following format will complicate the evaluation and comparison process and may therefore be declared non-responsive.
The Statement of Qualifications must be organized in sections containing the numbered sections below:
1. Cover Letter Mandatory
2. CM Information Form Mandatory
3. Sample Restaurant Review Mandatory
Submit a sample project that your firm has performed. 200 Points
4. Company Profile 200 Points
Describe your firm’s history, size, resources, personnel, special expertise, volume of work, and financial stability along with any other information that would be helpful to characterize the firm.
5. Project Approach 400 Points
Describe your approach to providing the service outlined in “Scope of Services”. Discuss how you provide leadership to facilitate teamwork and communication among all parties. Provide a professional resume for each key person proposed to be assigned to the Agency’s projects. Describe the proposed roles and responsibilities of key personnel. Include an organizational chart. Describe your typical communication process through the planning and construction phase a) Internally, b) Architect/Engineer, c) Subcontractors, d) Tenant, and e) Owner. Describe your construction scheduling method will you use on this project. What have your experiences been with building information modeling (BIM) and how would this be helpful on a build out for a restaurant/brewery? What unique challenges do you see with building out a restaurant/brewery and how do you plan to address these challenges? Tell us about your project manager and why that individual would be a strategic fit for this project? How many projects is your company currently working on and how will this affect your ability to efficiently run this project? Describe your experience with tenant improvements relating to restaurant and bar construction (Give examples in the Boise area including total overall projects) Describe how you would construct a bar and restaurant with an area for brewing beer in a 9,000 square foot building (approximately). The building was built in 1915 and contains one story; located at 9th & Bannock.
6. Relevant Project Experience 200 Points
Briefly describe other projects managed by your firm that demonstrate relevant experience. Extensive descriptions of vaguely related projects are discouraged. List all projects for which you have performed similar work in the past three years; please also identify those performed for public agencies. For each project listed, include the name, title, address, phone number and email address of a person who may be contacted regarding your performance on the project. Projects listed for which your firm worked in an auxiliary capacity or in a venture or partnership should include the name, title, address, phone number, email address and a contact person of the lead firm.
IDL RFQ 12-0002 4 Restaurant Construction Manager
SELECTION PROCESS
SOQ’s will be evaluated and rated based on qualifications stated within this RFQ. The Idaho Department of Lands may choose to interview several of the top rated firms for specific projects. However, at its discretion, The Idaho Department of Lands may dispense with interviews and select the highest rated firm based on the evaluation score of the Statement of Qualifications to perform the work.
Selected references will be contacted.
A selection committee appointed by the Idaho Department of Lands will evaluate and rate the submittals and possible interview. Those ratings will be forwarded to the agency’s Purchasing Agent to consolidate and thus determine the highest ranked team. The Idaho Department of Lands will seek to negotiate a contract, a detailed scope of work, fee schedule, etc. with the selected Construction Management firm.
The Idaho Department of Lands expects to complete the process and provide written notification of the short-listed Construction Manager within 60 days of receipt of submittals. If interviews are held, they will be scheduled within three (3) weeks of short-list notification.
PROPOSAL GUIDELINES
1. The Agency will not be liable for any costs incurred in the preparation and production of a proposal, or any work performed prior to the execution of a contract.
2. All proposals and other materials will become the property of the Agency.
3. All information contained in this RFQ and acceptable provisions of the selected firm’s response will be made a part of the executed agreement for services.
4. Upon request, the submitting firm shall submit additional information as requested by the Agency.
5. The Agency reserves the right to:
• Waive any informalities or irregularities and reject any or all proposals received as a result of this RFQ
• Select all or part of the respondent’s proposal
• Negotiate changes in the scope of work or services to be provided
• Conduct investigations required to determine the submitting firm’s performance record and ability to
perform the assignments specified as a part of this RFQ
6. If, through any cause, the contracted firm shall fail to fulfill in a timely and proper manner its obligations under this agreement, or if the firm shall violate any covenants, terms, or conditions of the agreement, then the Agency can cancel the contract without prejudice by giving at least five (5) days prior written notice to the firm of such termination. IDL RFQ 12-0002 5 Restaurant Construction Manager
RESTAURANT CONSTRUCTION MANAGER INFORMATION FORM (Mandatory) IDL RFQ 12-0002
1. Construction Manager information:
Firm
Address
City, State, Zip
Telephone ___________________________________________________
Email: ___________________________________________________
2. If yes to any of the following questions, please attach a separate sheet of explanations; state the project(s), date, owner and reason.
Has your Construction Management firm failed to accept a contract or to complete a contract awarded to you?
[ ] Yes [ ] No
Has your Construction Management firm under another or previous name failed to accept a contract or to complete a contract awarded to you?
[ ] Yes [ ] No
Has your Construction Management firm had a contract terminated or been given written notice or demand incident to a proposed contract termination?
[ ]Yes [ ] No
3. State the name, agent’s name, address, telephone number of your current bonding company(s) and identify any other sureties used by your Construction Management firm during the past five (5) years.
Name
Address
City, State, Zip
Telephone
4. State the name, agent’s name address, and telephone number of your current insurance company(s) that provides or during the past five (5) years have provided coverage for your Construction Management firm in the areas of liability, builder’s risk and workers’ compensation.
Name
Address
City, State, Zip
Telephone
5. Name, title and signature of main point of contact for the Construction Management firm.
Signature:__________________________________
Printed Name:_______________________________
Title:___________________________________
Email:__________________________________ IDL RFQ 12-0002 6 Restaurant Construction Managery or school district.

Comments & Discussion

Comments are closed for this post.

  1. Independent restaurants almost never turn a profit… that’s why they change hands so often… one dupe after another steps up to lose their shirt. Sometimes family owned and operated ones make it due to the small payroll with “family” workers, but this is more of a lifestyle then a business.

  2. Press release August 14th. 2011. For immediate distribution.

    It is now official! The people running this state are “Bat S*%#” CRAZY!!!

    Who is coming up with this crap? They need very special medication because there is no question they are a danger to us, and very possibly to themselves!

  3. In the details it mentions “9th and Bannock one story building built in 1915.”

    826 W Bannock matches that description and happens to have zero assessed value. Link to assessor’s web with details. http://www.adacountyassessor.org/propsys/MapParcel.do?yearParcel=2011R1013003551&x=p

  4. Maybe they can get booze “at cost” from the STATE booze store and make more money than any other bar.

    OK Mr. Otter – you said this would never happen…time to see if you are a man of your word.

  5. My Two Cents
    Aug 15, 2011, 6:38 am

    State ownership of private business? Is that not the definition of communism?

  6. BoiseCitizen
    Aug 15, 2011, 6:58 am

    LOL, the most conservative state in the union, practicing socialism! Will wonders never cease?

  7. idahocrystal
    Aug 15, 2011, 12:32 pm

    I fail to see how a new restaurant / brew pub accommodate the IDL/EFIB’s top points of:
    “• Maximizing long-term financial return at a prudent level of risk,
    • Providing a relatively stable and predictable payout”

    It’s like these guys are drooling at a handful of established chain restaurants who scrape a sustainable margin through leaner times – they really don’t comprehend that the locally-owned and operated places that manage to survive the first 3 years are the exception, not the rule?

    What approvals are required for these guys to move forward with this plan?

  8. I own some restaurants. They are neither stable, predictable nor prudent level of risk. Perhaps the board owns the land and is just playing developer? Apparently being a developer in this economy is stable, reliable and prudent as well….

  9. Not to split hairs too much here, but it looks to me like this is a simple case of a property owner wanting to “improve” a vacant piece of real estate in order to attract a qualified tenant. I don’t see where it says that the State is actually going to own a brew pub. It’s not that uncommon for an owner to pay for improvements to a piece of real estate in order to attract a tenant, and is actually becoming more and more the norm given the current state of the economy. If the State of Idaho wants to pay for improvements, I see nothing wrong with their train of thought on the matter. With that said, one would assume that the location would be factor in any business decision to operate a brew pub downtown. I for one would be concerned with the lack of parking in that area. It takes a lot of patrons to keep a brew house going.

    EDITOR NOTE– Martin, you echo the sentiments of the Lands acting director. Perhaps you can get the PR job if they ever re-bid it.

  10. Cyclops:

    The answer is clear: collective concussions ala Sen. McGee? Check their heads for bumps and contusions!

  11. Eye on Numbers
    Aug 15, 2011, 7:12 pm

    You can add this crazy scheme to the Boise Hawks demand for a new stadium at a cost of $20-25 million to taxpayers. The Chicago Cubs will contribute not a dime to this project. I have a song for this “HIT THE ROAD JACK AND DON’TCHA COME BACK NO MORE…”

    Another pet peeve is the constant updating of 911 dispatch centers for no other reason than they collect a surcharge on every land line and cell phone line every month so they can spend it on constant upgrades. When does this silliness stop?

    A restaurant and brew pub for downtown built with State Land Board Money! WTH! The self storage fiasco was bad enough but this is just over the top. How do we throw these rascals out?

    $20-25MM for the Hawks is just ridiculous. I will help them pack their bags if it will help get them out of town quicker. How the owner of the Cubs can stand there with a straight face and make this demand is over the top.

  12. Martin – I have a couple of lots I would like the State to come in on and and use State money to improve. I would like a hotel on one, a quick stop store on the other one and a McDonalds on the last one. Is that ok?

  13. People like Martin can rationalize it all day long. And I am sure that his cohorts can list off all the wonderful things they do with the money they “make” off State Lands. But the bottom line is this is flat wrong. Tip-toeing in and out of the public and private sector is a recipe for corruption, conflicts of interest, and unfairness. Every time someone from the board speaks they cite their “obligation” as prescribed in the state constitution to maximize a return on all state lands. Which begs the question, are there any industries that are off limits from this obligated behemoth?

    I personally am appalled and I would like to hear from an elected official. This must end. If the so called “conservative, small government” politicians that dominate this state can’t see the inherent unfairness of the government competing against tax payers in the private sector then hope is lost.

  14. Our organization and the national Self Storage Association sent the Land Board a letter earlier in the year asking them to reconsider the practice of competing with private enterprise. Perhaps the latest statements from two of the members realizing a possible mistake is a step in the right direction. It may not seem like a big deal to some, but if you are a Boise business competing against these tax exempt properties, they are concerned. With reduced overhead, a tax exempt facility can undercut in rent and draw business away from established, family owned facilities that are already struggling.

  15. Yeah i too agree with this that thinking of an independent restaurant is not an easy task since you need a good financial position to buy a restaurant

  16. Boise is the best place for building a new pub since it is famous for its pubs and restaurants and bars so acquiring a pub there will be a beneficial deal

  17. Wow, my comment actually warranted an “editor’s note”. I must have touched a nerve.
    Look, government intervention into the private sector of business is all around us. Case in point, if you’ve ever driven on a highway, road an Amtrak train, opened an account at a credit union, received a student loan, or a even a small business loan for that matter. If you’ve ever talked on land line phone, educated your children in a “public” school, flown on a commercial airline, or hell, even had yourself a glass of milk, you’re utilizing subsidized-by-the-government services.

    I’m not saying it’s right, I’m only pointing out the hypocritical nature of some people. In one breath they’ll criticize a policy because it’s “too socialistic”, and in the very next breath they’ll be the first to complain about the roads having potholes. They’ll say stuff like, “why doesn’t “someone” do something about these roads?” I mean really, come on folks, should we privatize the military because it competes with Blackwater’s right to make a profit? I think not. So, get off you high-horse, and call a spade a spade, American’s are addicted to socialism, plain and simple. Now, if you don’t like it, toss your hat in the ring, get elected to office, and start doing something about it. Oh, and when you DO get elected, don’t forget to opt-out of your salary, it’s subsidized by the government too.

  18. Martin, you are wanting more of this? Why?

  19. In Boise there are various restaurants that not only provides the best service but also provides high profiles job that means employment for people

  20. Wo!That’s great.This is the best decision and i think in Boise people mostly visit there for spending their best time or to enjoy.So opening a Brew pub there could be a good decision

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