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HomeMy WebLinkAboutTown of Vail Sponsorship Consultation Proposal 4-8-22Creative Strategies Group  P.O. Box 21128, Denver, CO 80221  (303) 469-7500 www.csg-sponsorship.com Issued: March 18, 2022 Updated: April 8, 2022 Jeremy Gross Special Event Coordinator Economic Development Town of Vail 75 South Frontage Road Vail, CO 81657 Dear Jeremy: Thank you for requesting this consultation proposal. I enjoyed the opportunity to learn about the Town of Vail’s desire to establish a new approach to the funding and sponsorship of events in the community. I think you are at an ideal moment in time to review your assets and better understand the value proposition being provided to the city as well as to the events you are supporting. As we have discussed, the Town of Vail is seeking consultation and support to better evaluate the event landscape, understand potential sponsorship benefits and sponsorship best practices, to create a quantitative method for evaluating event proposals and calibrating appropriate funding levels based on the likely fulfillment of sponsorship and economic impact goals of the town. CSG specializes in providing a comprehensive review and valuation of our clients assets, resources and objectives, discerning key opportunities and obstacles, as well as providing a cogent, well-designed, accurately valued and actionable plan that will accomplish our clients goals. During the past twenty-six years, CSG has conducted hundreds of consultation projects and property audits/sponsorship plans for a variety of municipalities, organizations, venues and special events including the Town of Breckenridge; Denver International Airport; Kentucky Tourism, Arts & Heritage; the Seattle Center; the Denver Center for the Arts; the Cherry Creek Arts Festival; National Western Stock Show; and the Pasadena Tournament of Roses. CSG would be gratified to work with the Town of Vail in their evaluation and proposed changes to the funding model for special events through the Town Council and Commission on Special Events. Creative Strategies Group  P.O. Box 21128, Denver, CO 80221  (303) 469-7500 www.csg-sponsorship.com Proposal from CSG to the Town of Vail - page two Scope of Consultation: The deliverables you provided was very helpful to clearly identify the consultation support and deliverables you are anticipating. From our conversation, it was also helpful to discuss the project timeframe and your immediate upcoming needs. Based upon this information, I have prepared the following scope of services.  Conduct valuation the assets the town offers as a host venue for events o Conduct inventory of Town services, materials, staffing, funding & resources generally offered to event producers o Determine fees and/or values (including opportunity costs) for the above  For items with no rate card, determine comparable values  Conduct valuation of the benefits provided by the event producers o Select 10-12 total events presently funded by the Town of Vail based upon classification of event type  Legacy (Signature Events)  Tournaments  Culinary/Beverage  Community/Nonprofit o Review and inventory benefits received by Town o Conduct cursory valuation of the benefits provided  Determine what benefits the town may not be receiving but should consider from future event producers o From the previous inventory of the typical benefits provided, provide recommendations on additional assets and rights the Town should also request/require  Refine event scorecard to generate event funding range based on quantitative assessment of the potential for the event to achieve town defined event goals. Assist in creating a tool/scorecard/formula for valuating event funding based on the benefits provided o Review current evaluation criteria used by Town Council and Commission on Special Events o Review and discern the Town of Vail’s desired goals and objectives for event impact o Update or replace event scorecard with inclusion of tangible and intangible metrics Creative Strategies Group  P.O. Box 21128, Denver, CO 80221  (303) 469-7500 www.csg-sponsorship.com Proposal from CSG to the Town of Vail - page three Scope of Consultation (continued)  Advise on creating a model for town to sponsor events, quantifying and monetizing benefits in addition to addressing town goals for data capture, etc. o Determine strategic objectives for Town sponsorship of events (visitor draw, earned media, etc.) o Compare municipal sponsorship to business or private sponsorships for possible adjustments o Determine tactical deliverables town desires from event sponsorship (incremental room tax, data capture, etc.) o Recommendations on rights and assets to be provided by event producer to warrant Town funding o Create evaluation recommendations for benefit review and valuation (tangible and intangible)  Recommendation on funding for Nonprofit vs. For Profit and Caps (% of revenue, operating budget, sponsorship) o Evaluate current ratio funding to nonprofit vs for profit events funded by Town o Ascertain Town’s primary goals for supporting each event category (nonprofit & for profit) o Determine average percentage of total revenue underwritten by Town as a percentage to total sponsorship AND event revenue/expenses/profit o Provide recommendation guidelines for applications  Create rights benefits expectations to be provided by event  Recommendations for funding percentages or caps  Assist in refining metrics for evaluating performance of an event (e.g. post event report) o Review current post event reporting required from Town o Determine typical quality of compliance o Provide industry standards for post event reporting o Review current evaluation scorecard  Refine post event review template/scorecard  Recommendations on financial audit requirement for larger events o Review typical financial reports provided by event producers o Recommendations on requirements based upon value proposition provided by event Creative Strategies Group  P.O. Box 21128, Denver, CO 80221  (303) 469-7500 www.csg-sponsorship.com Proposal from CSG to the Town of Vail - page four Timetable/Deadlines As discussed, this is an extensive review with numerous moving parts. I estimate that it is likely a six-to-ten-month project, however you have some upcoming deadlines in the annual funding cycle for which you would like to preliminary direction and guidance. I would therefore propose the following order of priorities. Phase One (April through mid-June)  Issue comprehensive questionnaire to Town of Vail and selected events  Collection of information  Initial review and discovery Phase Two (Late-June through August)  Prepare Reports & Templates as identified in Scope of Services  Develop proposed criteria/requirements for first round RFP’s (Council- selected properties)  Develop proposed criteria/requirements for second round RFP’s (CSE- selected properties)  Scorecard for first round funding review Phase Three (September through December)  Complete all remaining deliverables as identified in Scope of Services  Scorecard for second round funding review  Ongoing consultation Fees & Expenses: Consultation Fees Creative Strategies Group proposes working with the Town of Vail on a project fee basis for the Scope of Services previously outlined. Fees are calculated upon the total number of hours projected to conduct research, evaluation, preparation of matrixes/scorecards and other materials, report writing, and the presentations of findings. I am estimating 175-200 hours of total consultation at a fee of $38,000 divided over an eight-month period (May – December) invoiced at a rate of $4,750 monthly. The only expenses would be for mileage between Denver and Vail for meetings and presentations at $.52/mile. Creative Strategies Group  P.O. Box 21128, Denver, CO 80221  (303) 469-7500 www.csg-sponsorship.com Proposal from CSG to the Town of Vail - page five Jeremy, I hope this proposal provides you with the information you need to reach a decision on working with CSG. I am very excited about the prospect of working with the Town of Vail. Thank you for your interest and consideration of Creative Strategies Group. Sincerely, Bruce L. Erley, APR, CFEE President & CEO