Request for Proposals For Hotel Operations and Management Request for Qualifications The Midcoast Regional Redevelopment

t Authority (MRRA) is a governmental agency created by the State of Maine (5 MRSA 13083-G) with the responsibility of implementing the Reuse Master Plans for the Naval Air Station Brunswick (NASB). Consistent with the plan MRRA will redevelop the Base property as an active general aviation airport known as Brunswick Executive Airport and as a commercial/industrial/technology/educational campus on the current Naval Air Station Brunswick base soon to be known as Brunswick Landing. MRRA is soliciting Requests for Proposal, (RFP) from qualified hotel management companies or operators to provide operational services for a 250 room hotel located on Base property. This two-story, 115,000 square foot military hotel was built in 2004 to serve transient enlisted base visitors. The building includes 250 double-occupancy hotel rooms, central lobby and reception area, administrative office, staff lounge, laundry facilities, and storage and vending areas. The building does not have an elevator - ADA accessible rooms are located on the first floor. MRRA is interested in entering a Hotel Management Agreement by June 1, 2011 with a term ending October 31, 2012. Information regarding the hotel facility is contained in the Property Condition Assessment Report accompanying this RFP. Background On April 6, 2010, MRRA filed an application for an Economic Development Conveyance (EDC) with the Navy for approximately 700 acres at NAS Brunswick. In the EDC process, a local redevelopment authority has the right to negotiate with the military for the sale of property at a rate less than fair market value to generate rapid reuse and support job creation. It is anticipated that MRRA and the Navy will complete these negations later this year. The hotel facility is part of that ECD parcel. The EDC parcel is part of 3,300 acre parcel of land in the middle of the Brunswick Landing Campus that includes a 965 acre aviation complex consisting of world class runways, hangars and flight facilities. MRRA owns the Airport, named Brunswick

Executive Airport. On April 2, 2011 the airport opened to general aviation traffic. Prior the actual EDC transfer, MRRA will enter into a one year License Agreement with the Navy allowing MRRA to issue this request for proposals that allows MRRA to enter into a Hotel Management Agreement with a firm to operate the hotel. MRRAs longer term objective is to solicit a partner that would work with us to transform this facility into a regional conference/meeting facility.

Brunswick Landing Upon completion of the EDC Naval Air Station Brunswick will be known as Brunswick Landing. It will become a multi-purpose campus and a major center of economic activity for the region over the next several years. It is currently home to Kestrel Aircraft Company, Resilient Communications, Maine Tool and Machine, FlightLevel Aviation and Southern Maine Community College. The Executive Committee of the MRRA Board has also awarded a bid to the Harris Golf Company to operate Mere Creek Golf Course, also located on the campus, this summer. The base is located in Brunswick and is central to the economic centers of Freeport, Topsham and Bath. Brunswick is the tourist gateway community to the Midcoast region of Maine.

Request for Proposal Terms and Conditions Two (2) original copies of proposals must be received at the MRRA office at the below address by the close of business April 29, 2011 Proposals must be clearly marked Proposal for Hotel Operations. Attention: Dave Markovchick Midcoast Regional Redevelopment Authority 5450 Fitch Avenue Brunswick, ME 04011 Each Proposal shall contain the following Sections 1. Background information and qualification of the respondent containing the following: a. Length of the respondents operating experience. b. Description of each hotel property owned or operated/managed by the respondent. This must be specific including: name, brand, address, type of facility, number of rooms, amenities, and staffing, seasonal or year round operations. c. References for current and past management contracts. 2. Description of the Hotel resources the respondent will dedicate to this facility. a. The proposal shall contain a description of the conceptual operations for this hotel including the following: i. Operating seasonally or year round. ii. The number of rooms the respondent proposes to make available on an initial basis describing the room/bed type configurations mix. iii. Staffing, by functional responsibility. iv. Reservation system. v. Reporting system and timing. vi. List of recommended asset upgrades. vii. Marketing and advertising plan including a discussion of how this hotel will be differentiated, identification of expected targeted market, expectation on occupancy rates viii. Proposed room rate schedule or process for setting room rates.
3

ix. Describe the operating standards that the hotel operator intends on meeting (national brand or AAA standard). x. Other deliverables the respondent believes germane to enhancing its proposal. 3. Description of the proposed terms of a Hotel Management Agreement. The proposal should address the key terms that the respondent proposes to include in a hotel management agreement. a. Respondent should assume that applicable taxes apply. b. Respondent should assume that MRRA will be the asset manager and will oversee the property. c. Respondent should assume that the asset manager (MRRA) will receive a fee based on gross revenue receipts, alternatively lease revenue or offer an alternative fee scenario. d. The hotel management agreement assumes that the hotel operator will arrange for or provide the following services. i. Janitorial/Building and maintenance ii. Housekeeping iii. Waste disposal iv. Cleaning supplies v. Laundry/linen service vi. Connectivity and telecommunications vii. Marketing e. Respondent should assume that it will be responsible for all utilities during the term of the management agreement. f. Respondent should assume that any food/ snack or vending contracts will be the respondents responsibility and the respondent shall be entitled to retain all revenues related to such. g. Respondent will have inspected the hotel property and accepts it in as is condition and without representation or warranty of any kind by MRRA including, without limitation, any representations or warranty of fitness for a particular purpose and the will be operated as is with the exception of those amenities the respondent proposes to bring to the operations.

h. Property of the respondent shall remain the respondents property. i. The respondent shall provide insurance indemnifying MRRA. j. The respondent understands that it will be obligated to be bound by the conditions of the License Agreement between the Navy and MRRA. k. The responder understands that it shall not assign or transfer the Hotel Management Agreement or its responsibilities or the operations authorized there under, nor sell or otherwise assign or transfer a controlling interest in such operations (hereinafter collectively referred to as an ("Assignment") without the prior written approval of MRRA. l. Respondent understands that upon selection as the hotel operator it will be required to demonstrate through the submission of financials in form and substance acceptable to MRRA that it has the capacity to operate the hotel. Evaluation Selection Criteria The criteria used to evaluate proposals will include, but not be limited to the following. Criteria are not necessarily in order of importance. 1. Historical operation and /or management experience. 2. Client references. 3. Resources committed to the operation of the program. a. Financial b. Human 4. Financial Capacity to deliver. 5. Respondents proposed fees and fee sharing. Other Terms 1. MRRA will not be responsible for any costs associated with preparation of this proposal. 2. This RFP is not be construed to be a contract or commitment of any kind. 3. All responses shall be held confidential by MRRA. 4. Respondents should be familiar with all applicable ordinances of the Town of Brunswick and laws of the State of Maine.

5. Respondents will recognizes that MRRA reserves the right to (1) evaluate each proposal submitted; (2) wave any irregularities, not related to a matter of law; (3) select respondents for submittal of more information; (4) discontinue the process should it be in the best interest of MRRA. 6. MRRA may require select respondents to make oral presentations. 7. All proposals become the property of MRRA. Optional Pre-Proposal Facility Walk Through On April 19, 2011 at 2PM MRRA will offer a site inspection walk through for interested prospective respondents to the RFP. Reservations are required and may be made by calling 207.798.6512 no later than close of business April 15, 2011. MRRA reserves the right to reject any and all proposals. All information contained in the proposal will be treated by MRRA as confidential. Critical Dates and Timelines RFP issued and posted on MRRA website Friday April 8, 2011 Pre-proposal meeting April 19, 2011, 2pm Proposals due at MRRA office by 4:00pm April 29, 2011 Operator Selection May 17, 2011

Significant events First Annual Brunswick International Fly-in June 4 Coastal Challenge Soccer Tournament Brunswick June 17-19 Bicycle Coalition of Maine Bike Rally July 8-10 Great State of Maine Air Show August 26-28

Accompanying Exhibit Property Condition Assessment Report

6