€50m Cork events centre back on track after new tender issued
A new events centre e-tender was issued by Cork City Council on Thursday after initial efforts to get construction work started in June stalled when entertainment giant Live Nation Ireland withdrew from the tender process at the last minute.
Bidders for the tender were required to have an operator on board as part of the tendering process.
The new tender document, posted on the council’s website, contains a number of changes from the original, key among them a provision to allow further negotiation after the submission of an “initial tender”.
The previous tender process allowed no such wriggle room and dialogue closed prior to tenders being submitted.
However, the new rules cater for negotiation following an initial tender and prior to submission of the final tenders.
Another key change is a firm commitment from the council to provide €4m towards the project.
The earlier tender document said the council “may make further funding available if necessary and where the public benefit outweighs the cost”.
However the new document specifically says the council “will make up to €4m available as a non repayable grant”. It also makes a proviso for additional funding under the condition that if such extra funding is sought, then it will be “repayable on terms/timeframe as proposed by tenders at tender stage and where agreeable to the council”.
Other changes include:
- An additional three months to complete the project (from 18 months to 21 months);
- A change in the date of anticipated start of works from June 1, 2014, to January 5, 2015;
- The renaming of the tendering process from a “competitive dialogue procedure” to a “competitive negotiating procedure”;
- The insertion of a requirement that the successful bidder will work with the operator “to ensure the events centre is multifunctional and operates within the parameters of the operators business plan”.
Live Nation pulled out of the original selection process because of “significant concerns” over funding agreements and penalty clauses.
Despite the absence of an operator, BAM/Heineken Ireland, which has planning for an events centre on the former Beamish & Crawford site in Cork City, had submitted a tender.
O’Callaghan Properties, which has planning for a €50m venue on Albert Quay, chose not to do so.
In a statement yesterday, O’Callaghan Properties welcomed the council’s decision “not to proceed with the existing procurement process”, adding it was “not surprised” by the outcome.
It said O’Callaghan Properties did not submit a bid under the previous process “as in our view no compliant, legal bid could be submitted in the absence of an operator”.
“The withdrawal of Live Nation, the proposed operator for both bidders, from the process some weeks ago ensured that the competitive process around public funding for the project could not be finalised.”
The statement added that O’Callaghan Properties was “still interested” in delivering the events centre and that it would “look carefully at the new process” being put in place by the council to “assess whether it can form a realistic basis for the delivery of this important project for Cork”.
The new tender process means fresh applicants are entitled to apply, although this is considered unlikely.
The successful applicant will receive €10m funding from the Government. Consultants PricewaterhouseCoopers are overseeing the competitive process.
Deadline for response to contract notice: September 17
Evaluate suitability: September 22
Invitation to participate in the competitive negotiated procedure: September 24
Submission of initial tenders: October 8
Commencement of negotiation: October 17
Submission of final tenders: November 14
Contractual process November/December 2014
