Arizona Sports & Tourism Authority
Concessions Services Request for Proposal

The the Arizona Sports and Tourism Authority , a corporate and political body having all the rights, powers and immunities of a municipal corporation, is issuing a Request for Proposal to qualified food and beverage companies to manage and operate the general concessions, catering and premium (loft and club level) food and beverage sales at the University of Phoenix Stadium, Glendale, Arizona.

 The term of the concessionaire contract under consideration for this RFP will begin on August 1, 2010.

The deadline for submitting a proposal is 5 p.m. (Arizona local time) on Friday, August 28, 2009.  Three printed copies of the proposal (one unbound) on 8 ½ x 11 paper must be delivered to the Authority’s offices at 1 Cardinals Drive, Glendale, Arizona 85305 by the deadline.  

Questions regarding the RFP must be addressed via email to rfp@az-sta.comno telephonic or faxed inquiries will be accepted

All questions and inquiries will be answered via email in addition to being posted at www.az-sta.com/rfp.htm.

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 Concessions Services RFP Documents


Concession Services Bid Review Process

Concession Services Request for Proposal (updated 8/3/09)

Concession Services Form of Agreement

UPDATES:

DUE to a scheduled Cardinal Home Game on Friday, August 28th the RFP Deadline has been extended to Monday, August 31st at 5:00 p.m.

 


Concessions Services RFP
Questions & Responses

 


Questions Received 8/18/09
Responses Provided in RED
 

1.   Pursuant to this bid, is there a preferred template or form you wish for the proposed bond?

Answer: 
No we do not have a preferred template.

2.   Please provide additional information on the "IRS guidelines related to the Authority’s tax exempt bonds" regarding the 2-year term restriction on tax exempt bond financed facilities.

Answer:  The University of Phoenix Stadium was financed with tax exempt bonds, thus the amount of allowable private business use under the Internal Revenue Codes substantially limited.   Revenue Procedure 97-13 sets forth certain safe harbors for management contracts such as the concession agreement.  The Authority has requested a compensation arrangement based on a percentage of gross revenues.  This compensation arrangement results in a term for the agreement (including any renewal options that can be exercised only by the concessionaire) of no more than 2 years.  The contract can contain multiple renewal options after the 2 year term so long as the options can be exercised by the Authority.  Finally, the contract must be terminable by the Authority without penalty or cause at any time prior to the end of the 1st year of the contract.

3.   What percentage of the Branded Providers revenue does the concessionaire retain? 

Answer:  Can be found in the current concession agreement exhibit 4.1.1 (click here)

4.   Specifically the total provided in the schedule of gross receipts for Cardinal home games “Branded Providers” for 2008 is $137,104.    Is that the concessionaires split and is rent paid on that amount?

Answer:  Yes 

6.   Does the schedule of Gross Receipts supplied on the website include Service Charges? 

Answer:  Yes 

7.   What portion if any of the service charge used to offset concessionaire labor costs?

Answer:  0

 Questions Received 8/17/09 - Responses Provided in RED

1.   Does Current Concessionaire own and of the office equipment, and if so what equipment will they be removing?

Answer: 
The majority of the office equipment will stay with the building except for the Copier, Postage Machine, a few printers and a few computers. 

2.   Are the uniforms owned by the Current Concessionaire or the facility? 

Answer:  Yes
 

3.   What suppliers are tied to Sponsorship agreements and what are the terms of those agreements that impact the Concessionaire? 

Answer:  Hot Dogs “Farmer John” (expires end of 2009), Soda “Coke”, Beer “Anheuser Busch”, Pizza “Papa Johns”, Ice cream “Dryers”
 

4.   What is the asset value of the Alcoholic Beverage License, and is this a facility specific license? 

Answer:  Was purchased for $110,000 in 2005.  Yes, this is a facility specific license.
 

5.   Are any of the Branded Names on the Concession Stands owned by the Current Concessionaire? 

Answer:  NO
 

6.   Please provide a map of the established licensed area of the stadium property.

Answer:  Footprint of the building to the plaza dripline.
 

7.    We understand that there is not enough ice capacity in the stadium and that ice is purchased for each major event, is the purchase of ice tied to a sponsorship agreement? 

Answer:  No


Questions Received 8/4/09 - Responses Provided in
RED

1.    What are sales per year for the past three years for the following department categories?  Concessions, Clubs, Catering, Suites and Other

Answer:  Click here to download document. 

2.    What is the event schedule for the last three years, per event type as well as the turnstile attendance for each of those events?

Answer:  Click here to download document.

3.    What are the per capita sales per department category and per event type for the past three years?

Answer:  Click here to download document.

4.    What equipment currently used to service a sell out game (i.e. smallwares, portable carts, point of sale technology) will not remain on site in the event that a new operator is awarded the contract?

Answer:  Click here to download document.

5.    Our company representatives would like to see the facility in operation during a primary event such an NFL football game.  We feel that the ability for us to see current operations would help us provide the best possible proposal to your organization.  Consequently would you extend the bid deadline at least two weeks beyond August 28th which would give us the opportunity to attend the August 22nd Cardinal Pre-Season game and adequately prepare our response?

Answer:  The AZSTA will not be providing access to events as part of the RFP process. If a company chooses to attend an Arizona Cardinals home game please feel free to do so on your own accord.  Additionally, the AZSTA will not be changing the bid deadline.  The closing dated will remain August 28, 2009. 

 
 

 

 

 

 

 

 

 
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