May 6, 2021
File: 1220-2021-2601
Notice of Intent to Award a Contract
Notice is hereby given by the City of Abbotsford of its intent to award a Facility Operation and Management Agreement to AIG Acquisitions Inc. or a permitted assignee (" Proposed Operator") in respect of the City of Abbotsford's facility known as the Abbotsford Centre, situated on City-owned property located at 33800 King Road, Abbotsford, BC. The effective date of the proposed contract is January 1, 2022.
The initial term of the proposed contract is 5 years with three further renewal term options. The contract contemplates a fixed price annual management fee of $750,000 subject to inflationary indexing, in exchange for which the Proposed Operator is responsible for managing and operating the Abbotsford Centre as a multi-purpose entertainment and sports facility to serve as a community facility and for a wide range of other sporting events, trade shows, cultural and entertainment events. The management fee is inclusive of all operating costs but excludes the City's responsibility for capital maintenance and repair. The contract further includes revenue sharing opportunities for the City based on the number and type of event tickets sold.
The City chose to solicit an offer for the agreement from the Proposed Operator exclusively given its unique experience and ability to leverage operational synergies within the Canucks Sports and Entertainment franchise and the Proposed Operator's desire to relocate its American Hockey League (AHL) development team to the Abbotsford Centre as an anchor tenant beginning in the 2021-2022 AHL season, without which the fixed price management fee with responsibility for operating costs would not be viable.
In forming the intention to award the proposed contract, the City notes the following provisions of applicable trade agreements:
· Article 513 of the Canada Free Trade Agreement (CFTA), which provides for limited tendering in circumstances involving an exceptionally advantageous conditions in the very short term in the case of an unusual disposal
· Article 504.11(i)(vi) of the CFTA, which exempts certain procurement of goods and services under a commercial agreement by an entity which operates sporting or convention facilities
· Part V, Section C, Article 2(f) of the New West Partnership Trade Agreement, which exempts procurements by entities that operate sporting or convention facilities
Service Providers wishing to object to this decision should email their objection by May 17, 2021, no later than 3:00pm, local time Attention: Lisa Pryce, Sr. Manager, Procurement
Suppliers objecting must provide specific reasons for their objection. The supplier's ability to provide services of the same or better quality, with a similar assumption of operating risk and opportunity for revenue sharing, without disruption of services, within the required time frame will be the key criterion with regard to the consideration of supplier objections.
