BPCA Issues New Call for Restaurant Operator in Wagner Pavilion
The Battery Park City Authority has issued a new Request for Proposals (RFP) from prospective restaurant operators who wish to rent space in the new Wagner Park pavilion. The first RFP, issued earlier this year, drew zero responses.
“We pulled the original RFP before the responses were due,” explains Terence Cho, the BPCA’s vice president of real estate. “We had three attendees for the information session, and that didn’t indicate a huge response. So we decided to take more time, to do some additional outreach. This also gave us the chance to rethink the first RFP, and tailor it more to the industry’s needs. That has generated more excitement and interest.”
“The new version has much more about our expectations and interests,” he adds. “It includes renderings, and more details about the space, such as specs for mechanical and HVAC systems, along with signage opportunities. We were also unable to offer prospective vendors a site visit last time, but are hoping to do so now that the building is nearing completion.” The BPCA believes that the inability to offer a tour of the premises was a contributing factor to no vendors responding to the prior RFP, before it was withdrawn.
The new RFP invites restaurant operators to bid for a ten-year lease (with two five-year renewal options) on a facility that will contain over 5,000 square feet of kitchen and dining space, with seating for approximately 80 customers.
“This version makes clear that we want the restaurant to serve not only local residents, but also park users and visitors,” Mr. Cho continues. “We hope it will be a destination. And we also want it to take into account the BPCA’s sustainability initiatives.”
He notes that there are some limits to what the Authority will consider. “We cannot allow an operator who wants only to offer a bar,” he says, “although serving alcohol is fine in conjunction with other uses, like food.” For legal reasons, the BPCA (as a government agency) is also unable to accept proposals that include a “tenant improvement allowance,” funds that private-sector landlords provide to tenants to help with the cost of renovating a commercial property.
One possible inducement for more restaurant operators to respond to this version of the RFP is flexibility on rent. “We are leaving it up to proposers to pitch a concession, in the form of reduced rent or no rent, either of which might be a reflection of the current market for commercial space in New York,” Mr. Cho explains. “We will also consider proposals that innovate on the formulas, such as balancing base rent with a percentage of gross receipts. We could also look at ideas like offering the first 12 months free.”
“In the end,” he says, “the amount of rent proposed by a vendor counts for only ten percent of the score in our decision.” The other 90 percent of the determination hinges on criteria such as “program, design, and community benefits,” “proposer experience and qualifications,” and “project construction, feasibility, and timeline,” according to the RFP.
Asked what comes next if no prospective vendors respond to this version of the RFP, Mr. Cho says, “for now, the intent is for that space to be a restaurant. This is our strong desire. If we did not get any satisfactory responses, we would conduct an internal assessment about what to do, along with a community engagement process with elected officials and the Community Board.”
Mr. Cho adds that Wagner Park — currently undergoing reconstruction to incorporate resiliency measures — is scheduled to reopen next summer, “but because RFP responses are due in January, that won’t be enough time to get a restaurant up and running. So we built in a contingency for a soft opening, with a mobile truck or kiosk, using space in the park.”