City of Alexandria, Virginia
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MEMORANDUM
DATE: MAY 7, 2026
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER
FROM: EMILY A. BAKER, DEPUTY CITY MANAGER
DOCKET TITLE:
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Receipt and Referral of Proposals to Grant an Agreement for the Lease, Management, and Operation of the Torpedo Factory Arts Center (“TFAC”), located at 105 Union Street.
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ISSUE: Receipt and referral of proposals to grant an agreement for the lease, management, and operation of the Torpedo Factory Arts Center (“TFAC”), located at 105 Union Street for City Manager review.
RECOMMENDATION: That City Council:
1. Receive the names of the bidder that submitted proposals to the City in accordance with the terms and specifications outlined in the Ordinance adopted by City Council on February 21, 2026;
2. Request and receive any additional proposals from any potential bidders at City Council’s May 12, 2026 meeting;
3. Refer bids to the City Manager for evaluation, review, and consideration in the manner prescribed by law, including the negotiation of a franchise agreement with the preferred bidder; and
4. Direct the City Manager to recommend to City Council, as soon as feasible, a firm to be awarded a franchise by City Council.
BACKGROUND: On February 21, 2026, City Council adopted an ordinance (Attachment 1, Attachment 2) to initiate and establish the process to grant an agreement for the lease, management and operation of the Torpedo Factory Art Center (TFAC).
DISCUSSION: Pursuant to the ordinance adopted on February 21, 2026, the City issued and publicized a solicitation for the lease, management, and operation the Torpedo Factory Art Center. The City Clerk placed advertisements in a local newspaper which notified potential bidders how to bid and provided the due date for bids. This information was also provided on the City’s web page.
Bids were due to the City by 4:00pm ET on April 27, 2026. The Code of Virginia requires that the Presiding Officer read the names of the bidders in an open session. Accordingly, it is recommended that Presiding Officer make the following statement at the meeting:
“As of April 27, 2026, City staff has received a timely response to Ordinance No. 5625 from Scout Urban, LLC. This bidder has submitted proposed franchise for review and evaluation by City staff. Are there any other companies who, at this time wish, to submit a bid in response to the Ordinance? Accordingly, at this time, the bid(s) are referred to the City Manager to be reviewed and further evaluated by City staff. The City Manager is to return with a proposed recommended franchise agreement for approval by City Council as soon as is feasible”.
Based on the evaluation criteria outlined in the Terms and Specifications for Bids for Franchise (Attachment 3) and summarized below, staff would then select a preferred bidder from those bidders that are determined to be responsible and negotiate a franchise agreement for recommendation to City Council.
Bids will be evaluated on the following criteria:
• Organizational Qualifications, Experience and Capacity
• Staff Experience
• Operation and Management Approach
• Marketing Plan
• Maintenance, Tenant Improvements and Capital Improvement Strategy
• Stakeholder Engagement Plan
• Financial Bid
FRANCHISE AWARD TIMETABLE: After City Council refers the names of the bidders to the City Manager, staff will evaluate each bid based on the City’s established criteria and begin franchise negotiations with the selected bidder. The City Manager will bring the successfully negotiated franchise agreement to City Council for approval. The timing of when the recommendation returns to Council depends on the length of the negotiation with the proposed bidder. The City reserves the right at the City Manager’s sole discretion to reject any and all bids and to terminate negotiations at any stage of the selection process.
This effort underscores the critical role TFAC plays in fostering a vibrant and thriving arts ecosystem in Alexandria. As the City moves forward, it remains committed to ensuring TFAC continues to serve as a vital hub for creativity and culture.
FISCAL IMPACT: City staff will provide oversight of the franchise. Previously approved and future budgets may be accessed for additional support and oversight as required. The City may receive revenue in the form of payment or realize cost savings in accordance with the lease terms, which shall be considered as a part of the proposal evaluations.
ATTACHMENTS:
Attachment 1: Docket Memo (February 21, 2026 Public Hearing)
Attachment 2: Franchise Ordinance
Attachment 3: Request for Proposals - Terms and Specifications for Bids for Franchise
STAFF:
Bonnie Brown, Deputy City Attorney
Alfred Coleman, Deputy Director of Department of General Services
Julian Gonsalves, Strategic Projects and Public-Private Partnerships Director
Cheran Ivery, City Attorney
Bryan P. MacAvoy, Assistant City Attorney
Jeremy McPike, Director of Department of General Services
Diane Ruggiero, Deputy Director of Department of Recreation, Parks and Cultural Activities