Loading...
20130515 LOI Comparison v6Convention Center District Developer  Le*er  of  Intent  Comparison   May 15, 2013 May 15, 2013 Proposal Comparison • Economic  Impact   • Teams   • Master  Plan  &  Program   • Land  Leases   • Public  Costs   • Public  Financing   • Private  Investment   • Timeline   • Miscellaneous  Terms   • Key  Differences   2   May 15, 2013 Proposal Comparison • Economic  Impact   • Teams   • Master  Plan  &  Program   • Land  Leases   • Public  Costs   • Public  Financing   • Private  Investment   • Timeline   • Miscellaneous  Terms   • Key  Differences   3   May 15, 2013 Key Economic Impact Drivers 4   Incremental   ConvenEon   Center   Room  Nights   ConstrucEon   Restaurant/ Retail   Spending   Incremental   Headquarter   Hotel  Room   Nights   Economic Impact May 15, 2013 Construction Impact 5   Portman-­‐CMC  South  Beach  ACE     $825m   650m   $1,475m     Spending   Direct  ConstrucEon   Indirect/Induced   Total  Spending     $762m   600m   $1,362m   12,300  Jobs  11,300   Source:  Portman-­‐CMC,  South  Beach  ACE,  IMPLAN.   * Portman has higher construction impact due to more proposed program areas. May 15, 2013 Expenditures Per Day Delegate     Lodging  $145   Hotel  Restaurants  32   Other  Restaurants  55   RecreaEon  10   Retail  Stores  33   TransportaEon/Other  36        Subtotal  311     Mee=ng  Planner/Exhibitor  226     Total  $537   6   Convention Delegates Hotel  Guest     Lodging  $245   Hotel  Restaurants  32   Other  Restaurants  55   RecreaEon  10   Retail  Stores  33   TransportaEon/Other  36        Subtotal  411     Mee=ng  Planner  88     Total  $499   Hotel Guests Source: Destination Marketing Association International; Greater Miami Convention & Visitors Bureau. May 15, 2013 Annual Economic Impact Incremental  Direct  Spending   ConvenEon  Center  Room  Nights  $32m1   Headquarters  Hotel  Room  Nights  74m2   Restaurant/Retail  Spending  37m3        Subtotal  143m   Indirect/Induced  Spending  107m        Total  Annual  $250m     Jobs  2,300   7   1  ConvenEon  Center  room  night  impact  of  30%  based  on  comparable  desEnaEon  impacts;  $537  per  room  night  spending   based  on  DMAI.   2  Headquarters  Hotel  room  nights  based  on  new  transient/in-­‐house  group  rooms;  excludes  citywide  room  nights  captured   in  ConvenEon  Center;  DMAI  spending  adjusted  for  increased  average  rate.   3  Restaurant/retail  spending  excludes  spending  captured  in  ConvenEon  Center  and  Hotel  spending.   Source:  Portman-­‐CMC,  South  Beach  ACE,  IMPLAN,  GMCVB,  SAG.   May 15, 2013 Proposal Comparison • Economic  Impact   • Teams   • Master  Plan  &  Program   • Land  Leases   • Public  Costs   • Public  Financing   • Private  Investment   • Timeline   • Miscellaneous  Terms   • Key  Differences   8   May 15, 2013 Key Team Members 9   Portman-­‐CMC  South  Beach  ACE   Portman  Holdings   CMC  Group  Master  Developer  Tishman  Hotel  &  Realty   UIA  Management   Master  Developer  Design  Builder  Master  Developer  or  Affiliate   Bjarke  Ingles  Group   John  Portman  &  Associates   Fentress  Architect   West  8   Revuelta  Architecture  Intl.   Lead  Architects   OMA   tvsdesign   Michael  Van  Valkenburg  Assoc.   Raymond  Jungles   Greenberg  Traurig  Legal  Bilzen,  Sumberg,  Baena,  Price  &   Axelrod   Piper  Jaffray   Brookfield  Financial   Holliday  Fenoglio  Fowler   Financial  Goldman  Sachs   May 15, 2013 Approach • Mid  January  -­‐  Kick  off  meeEngs  with  each  developer  to  outline   deliverable  expectaEons   • Late  February  –  Master  Plan  review  and  comment   • Late  March  –  Master  plan  review  and  comment   • Early  April  –  Drak  Le*er  of  Intent  provided   • Mid  April  –  Half  day  negoEaEng  session  with  each  team   • May  3  –  Pencils  down,  Le*er  of  Intent  due   • LOIs  reviewed  and  comparison  draked   • Developers  reviewed  comparison  three  Emes  to  confirm   accuracy  of  facts   • Last  Developer  edits  entered  Monday  May  13   10   May 15, 2013 Proposal Comparison • Teams   • Master  Plan  &  Program   • Land  Leases   • Public  Costs   • Public  Financing   • Private  Investment   • Timeline   • Miscellaneous  Terms   • Economic  Impact   • Key  Differences   11   May 15, 2013 Master Plans 12   Portman-CMC South Beach ACE May 15, 2013 Base Case Master Plan 13   Portman-CMC South Beach ACE May 15, 2013 Convention Center Program 14   Portman-­‐CMC  Square  Feet  South  Beach  ACE   502,000   402,000   100,000   Total  Exhibit   Renovated   New   502,000   353,300   148,700   100,000   60,000   20,000   20,000     Total  Ballroom   New  Master   New  Jr.  #1   New  Jr.  #2   100,000   60,000   20,000  *   20,000  *   Can  be  combined  to  40,000   150,000   71,700   78,300   Mee=ng  Space   Renovated   New   150,000   52,500   97,500   1,195,556  Gross  Building  1,318,142   22.0  acres   (includes  Center,  loading  docks,  and  Center   parking)   Foot  Print   22.2  acres   (includes  Center,  loading  docks,  and  Center   parking)   16.3  acres  Center  only   May 15, 2013 Convention Center Level 1 15   Portman-CMC South Beach ACE 22.0 Acres Footprint 22.2 acres May 15, 2013 Convention Center Level 2 16   Portman-CMC South Beach ACE May 15, 2013 Convention Center Level 2.5 17   Portman-CMC South Beach ACE Nothing in Portman Plan at This Level Rebuilt 555 17th City Offices and Offices in Community Center May 15, 2013 Convention Center Level 3 18   Portman-CMC South Beach ACE May 15, 2013 Convention Center Level 4 19   Portman-CMC South Beach ACE Nothing in Portman Plan at This Level May 15, 2013 Phasing Difference Portman-CMC South Beach ACE 3A 2B Approach requires construction of temporary meeting rooms 20   Both teams work around Center event calendar May 15, 2013 1,040 Center Controlled Parking 21       Portman-CMC South Beach ACE 276 Spaces Under Ballroom 764 Spaces over Loading Docks & New Exhibit Hall 1,040 Space Over Loading Docks, Upper Two Levels Adjacent to Ballroom May 15, 2013 Public Amenities 22   Portman-CMC South Beach ACE 22.9 Acres at Grade 26.4 Acres (including 3.5 acres of rooftop public areas) 23.2 Acres at Grade 28.6 Acres (including 5.4 acres above North Parking/Loading area accessible from grade) May 15, 2013 Theater 23   • RenovaEon  costs  to  be  contributed   by  developer  -­‐  $18.5m   – Restore  original  entrance  façade   – Bathroom  renovaEon   – LighEng  &  lobby  circulaEon   – Technology  upgrades   • Lease  facility  to  Developer  for  an   amount  maintaining  current  City   revenue  stream   • Maintain  2,700  seat  capacity   • Maintain  LiveNaEon-­‐type  events   Portman-CMC South Beach ACE • Proposed  a  renovaEon  cost  and   scope  and  a  path  to  undertake  post   selecEon  due  to  current  LiveNaEon   agreement   • Theater  renovaEon  costs  not   included  in  Public  Budget   • All  landscaping  areas  around  the   Theater  are  included  in  Public   Budget   • Developer  will  work  with  the  City  to   renegoEate  the  LiveNaEon   agreement   • TargeEng  refurbishment  costs  paid   for  with  enhanced  operator   agreement   May 15, 2013 Transportation • 17th  Street  Median   • Dedicated  off-­‐street  drop  off  faciliEes  for   cars  and  busses   • Closure  of  ConvenEon  Center  Drive   between  17th  and  18th  Street     • Internal  circulaEon  loop  for  service  and   valet  funcEon   • Center  parking  off  Dade  Blvd  to  lessen   traffic  on  17th  Street   • Extension  of  20th  Street  providing  access   of  Dade  Blvd.   • AddiEonal  traffic  signal  at  Dade  Blvd.   • Relocate  17th  signal  to  Pennsylvania   • Recommends  implementaEon  of   broader  Smart  Parking  technologies  and   Traffic  Signal  Controls,  but  not  included   in  budget   24   Portman-CMC South Beach ACE • 17th  Street  Median   • Dedicated  off-­‐street  drop  off  faciliEes  for   cars  and  busses   • Closure  of  ConvenEon  Center  Drive   between  17th  and  18th  Street     • Internal  circulaEon  loop  for  service  and   valet  funcEon   • Center  parking  off  Dade  Blvd  to  lessen   traffic  on  17th  Street   • Digital  signage  indicaEng  parking   occupancies  (including  on-­‐site  garage   technology  infrastructure   • StaEc  signage  at  causeway  entries   • RFID  controlled  bollards  to  limit  traffic  at   Palm  View  &  Bayshore  (3  locaEons)   • Proposed  traffic  management  strategies   to  off-­‐set  Center  traffic   May 15, 2013 Private Components 25   800-rm Hotel 100 Residential Units 200 Residential Units Above • 1,606 Public Parking Spaces • 86,000 Rest/Retail • 39,000 sf Rest/Retail • 61,000 sf Cultural 2,700 Seat Theater 261 Residential Units • 1,750 Public Parking Spaces • 59,500 Rest/Retail • 80 Residential* 800-rm Hotel 18,000 sf Cultural 40,000 sf F&B Venue Portman-CMC South Beach ACE *Future phase, excluded from all financials herein. May 15, 2013 Private Program Summary 26   Portman-­‐CMC  South  Beach  ACE   800  rooms   69,600  sf  meeEng   20,900  sf  F&B   Hotel   800  rooms   55,000  sf  meeEng   16,380  sf    F&B     40,000  sf  F&B  Venue   300  units  ResidenEal  341  units   (261  Phase  1  +  80  in  a  future  phase)   125,000  sf  Retail/ Restaurant   59,500  sf   (99,500  Including  F&B  Venue)   2,700  seats   Redevelops  Theater  2,700  seats   Plan  to  upgrade  in  the  future   61,000  sf  Cultural  18,000  sf   2,755  spaces  Private  Parking  3,101  spaces   Parking requirements under review by City May 15, 2013 Retail/Restaurant Summary 27   Portman-­‐CMC  SF  South  Beach  ACE   20,900  Hotel  F&B  16,380   39,000  North  of  17th  40,000   Hotel  F&B  Venue   86,000  17th  Street   Parking  Garage  59,500   125,000  Subtotal  99,500   61,000  Cultural  18,000   186,000   Total   w/o  Hotel     Base  F&B   117,500   May 15, 2013 Public & Private Parking 28   Portman-CMC South Beach ACE 441 Spaces • 276 Center Replacement • 165 Residential 1,606 Spaces •  Public/Retail 1,748 Spaces • 764 Center Replacement • 330 Residential • 654 Hotel 3,795 Total Spaces 1,305 net new 4,141 Total Spaces 1,651 net new Parking requirement calculation under review by City May 15, 2013 Height 29   Portman-CMC 124 ft 64 ft 124 ft May 15, 2013 Height 30   South Beach ACE May 15, 2013 Other Program Elements 31   Portman-­‐CMC  South  Beach  ACE   Rebuilt  at  Developer  cost     Above  retail/cultural  buildings   North  of  17th   555  17th  City   Office  Building  on   17th  Near  Penn.   Ave.   Rebuilt  at  Developer  Cost     Along  West  Concourse  of  Center,   upper  level   Same  as  above   Office  Space  in   Community   Center   Same  as  above   Rebuilt  at  Developer  cost  within   NE  corner  of  Center   Community   Center   Rebuilt  at  Developer  Cost  within   the  parking  structure  North  of   Center   May 15, 2013 Proposal Comparison • Economic  Impact   • Teams   • Master  Plan  &  Program   • Land  Leases   • Public  Costs   • Public  Financing   • Private  Investment   • Timeline   • Miscellaneous  Terms   • Key  Differences   32   May 15, 2013 Lease Areas 33   Portman-CMC South Beach ACE Residential SF - Footprint 39,350 - Subterranean 145,305 17th Street Garage 126,592 Other Retail 14,600 Hotel - Footprint 22,850 - Subterranean 126,561 Cultural 5,340 Theater - Total - Footprint 208,732 - Subterranean 271,866 Residential SF - Footprint 74,500 - Subterranean 165 parking under BR 17th Street Garage 126,592 Other Retail 186,008 Hotel - Footprint 183,500 - Subterranean - Cultural Inc in retail Theater 43,000 Total - Footprint 430,100 - Subterranean 165 parking under BR May 15, 2013 Hotel Lease Proposal 34   Portman-­‐CMC  South  Beach  ACE   Hotel   Parking  Program   Hotel   Parking   40,000  sf  F&B  Venue   $281  @  75%   $237  @  78%   2019  Performance   2013$   $351  @  76%   $244  @  78  %   $2.8m    Increasing  2%  annually   Adjusted  in  Year  31,  and  every  10   years  thereaker,  to  3%  of  gross   revenues   Fixed   Rent   Year  1:    $1.5m   Year  2:    $3.0m   Year  3-­‐10  $3.5M   Year  11-­‐20  $4.5m   Increasing  10%  every  10  years   4.0%  Percentage   Rent  **   Years  1  -­‐  10:  3%   Yeas  11  –  99:    3.5%   $78m  Fixed   $33m  Variable  *   $111m  Total   $138,000/room     Net  Present  Value   (99  years  @5%)   $76m  Fixed   $22m  Variable  *   $98m  Total   $122,500/room    * For comparison, growth limited to 2% annually. This is less than both Developer’s projections. ** Percentage Rent is the maximum of the Fixed Rent and gross revenues multiplied by the percentage. May 15, 2013 Hotel Positioning 35   $150   $175   $200   $225   $250   $275   $300   $325   $350   $375   Average Daily Rate Year 2019 *Proposed higher pricing may require modification to the submitted Room Block Agreement pricing. **Hotel and parking only. Excludes 40,000 SF F&B Venue. Historical comparable cost per room amounts escalated assuming an average of 4% per year. Brand ADR projections from Hilton, Hyatt, Marriott, Omni and Starwood. Portman- CMC $281 South Beach ACE $351* Brand A Brand B Brand C Brand D $300,000   $325,000   $350,000   $375,000   $400,000   $425,000   $450,000   $475,000   $500,000   $525,000   Cost per Room DC Marriott - 2014 Dallas Omni - 2011 Houston Marquis - 2014 Indy JW - 2011 Austin Marriott - 2015 Orlando Hilton - 2009 Orlando Waldorf/ Hilton- 2009 South Beach ACE $369m** Portman- CMC $301m Nashville Omni - 2013 Brand E ADR Developer Expected ADR 2013$ Annl. Growth 2013$@3% Greater Miami $164 Miami Beach $227 Portman $237 2.88% $235 SB Ace $244 7.25% $294 May 15, 2013 17th Street Garage & Other Spaces 36   Portman-­‐CMC  South  Beach  ACE   1,606  parking  spaces   125,000  sf  retail/rest.   61,000  sf  Cultural  Program  1,750  parking  spaces   59,500  sf  retail/rest.   13,000  sf  Cultural   $10/space/day  in  2016   $120  retail/rest  rent/sf   Performance   $7.27/space/day  2012   $15/space/day  2016   $90  retail/rest  rent/sf   $6.3m    Increasing  2%  annually   Fixed   Rent   $6.0m   Increasing  10%  every  10  years   25%  Percentage   Rent  **  10%   $180m  Fixed   $25m  Variable  *   $205m  Total   Net  Present  Value   (99  years  @5%)   $133m  Fixed   $0m  Variable  *   $133m  Total   * For comparison, growth limited to 2% annually. This is less than both Developer’s projections. ** Percentage Rent is the maximum of the Fixed Rent and gross revenues multiplied by the percentage. May 15, 2013 Parking & Retail NPV Components 37   Portman-­‐CMC  South  Beach  ACE   $205m   Total  Net     Present  value   (99  years  @  5%)   $133m   $57.9m   1,606  Spaces   $10/space/day  in  2016   $36,000/space   17th  Street     Parking   $7.27/space/day  2012   $86.5   1,750  Spaces   $15/space/day  in  2016   $49,400/space   $89.4m   86,000  sf   $1,040/sf   17th  Street   Retail/Rest.   $46.5m   59,500  sf   $782/sf   $40.6m   39,000  sf   $1,040/sf   N.  of  17th  Street  Retail/ Rest.  Included  in  Hotel  Lease   $17.2m   61,000  sf   $281/sf   Cultural  $1/year   May 15, 2013 Residential Lease Proposal 38   Portman-­‐CMC  South  Beach  ACE   P-­‐Lot  &  Washington  Ave.   300  Units  Program  P-­‐Lot  Only   261  Unit   $2.87  Rent/sf   2013$  $2.50   $341,800    Increasing  2%  annually   Fixed   Rent   $800,000   Increasing  10%  every  10  years     If  80  units  over  17th  Street  Garage  are  developed,   addiSonal  payments  will  be  made   4.0%  Percentage   Rent  **  4.5%   $10m  Fixed   $2m  Variable  *   $12m  Total   $39,850/unit   Net  Present  Value   (99  years  @5%)   $16m  Fixed   $0m  Variable  *   $16m  Total   $61,500/Unit   * For comparison, growth limited to 2% annually. This is less than both Developer’s projections. ** Percentage Rent is the maximum of the Fixed Rent and gross revenues multiplied by the percentage. May 15, 2013 Theater 39   Portman-­‐CMC  South  Beach  ACE     Encumbered  by  LiveNaEon   agreement     2,700  seats     $18.5m  Private  ContribuEon     Propose  plan  to  upgrade  Theater   consistent  with  Master  Plan     Landscape  costs  for  areas  around   Theater  are  included  in  Public   Budget     Program   Encumbered  by  LiveNaEon   agreement     2,700  seats     Theater  costs  not  included  in  LOI   Budget     Propose  plan  to  upgrade  Theater   consistent  with  Master  Plan     Landscape  costs  for  areas  around   Theater  are  included  in  Public   Budget   An  amount  equaEng  to  the   amount  currently  received  from   Live  NaEon     Approximately    $1m  annually     Zero  net  new  to  City   Fixed   Rent  None  Proposed   May 15, 2013 Total Lease Payments 40   $0m   $2m   $4m   $6m   $8m   $10m   $12m   $14m   $16m   $18m   $20m   $22m   20 1 4   20 1 5   20 1 6   20 1 7   20 1 8   20 1 9   20 2 0   20 2 1   20 2 2   20 2 3   20 2 4   20 2 5   20 2 6   20 2 7   20 2 8   20 2 9   20 3 0   20 3 1   20 3 2   20 3 3   20 3 4   20 3 5   20 3 6   20 3 7   20 3 8   20 3 9   20 4 0   20 4 1   20 4 2   20 4 3   20 4 4   Tishman  Variable   Tishman  Fixed   Portman  Variable   Portman  Fixed   * Portman fixed lease payment to reset to 3% of gross revenues beginning in year 31 (after bonds repaid), and every 10 years thereafter. NPV over 99 Years Portman South Beach -CMC ACE Difference Fixed $268m $225m $43m Variable 60m 22m 38m Total $328m $247m $81m May 15, 2013 Proposal Comparison • Economic  Impact   • Teams   • Master  Plan  &  Program   • Land  Leases   • Public  Costs   • Public  Financing   • Private  Investment   • Timeline   • Miscellaneous  Terms   • Key  Differences   41   May 15, 2013 Public Cost Capital     • ConvenEon  Center   • ConvenEon  Center  Parking   • Public  AmeniEes   • Developer  Fees   • Financing     OperaEng   • OperaEng  Support   • Maintenance  Reserve   • Replacement  Revenues      42   May 15, 2013 Process 43   Select Master Developer • Master Developer Fees • Construction Manager Fees • Lead Architect Fees • Cost to Bid Project Developer Trade Bidding City Review and Approval of GMP Payment & Performance Bond 12-18 Months of Design with City Oversight Project Developed Cost Savings Split Between Developer & City Public & Private Financing Closed May 15, 2013 Public Capital 44   Portman-­‐CMC  South  Beach  ACE   $498.0m  ConvenEon   Center  $506.2m   $22.9m   ($55m  -­‐  $32.1m  Private   ContribuEon)   Public   AmeniEes   $60.7m   ($71.3m  -­‐  $10.6m  Private   ContribuEon)   $30.4m   1,040  spaces   $29,230/space   Parking  $57.9m   1,388  spaces   $41,700/space   $551.2m  Total  $624.8m   +73.4m May 15, 2013 Public Fees 45   Portman-­‐CMC  South  Beach  ACE   $15.8m   3%  of  Development  Costs   Developer  Fees  &   Staffing   $18m   3%  of  Development  Costs   $9.4m   2.5%  of  Trade  Costs   ConstrucEon   Manager   $11m   2.5%  of  Trade  Costs   $15.0m   4%  of  Hard  Costs  Lead  Architects  $20m   4.25%  of  Hard  Costs   $18.3m   Assumed  Design-­‐Build   Pre-­‐GMP/Design-­‐ Build  Costs   $53m   $38m  Design  &  Oversight*   $15m  Early  ConstrucEon   Assumes  GMP   80%  to  City  ConstrucEon  Cost   Savings  50%  to  City   * Indicates a GMP structure which provides for more complete design documents prior to issuing bonds. This cost is included in the budget. South Beach Ace also offered to undertake as design-build at City’s option, thereby lowering pre-GMP costs. May 15, 2013 Convention Center Budget 46   Portman-­‐CMC  South  Beach  ACE   $377.2m   343.8   33.4   Hard  Costs   Trades   ConstrucEon  Manager   $347.3m   320.1   27.2   10.0  Phasing  49.1   85.8   28.2   14.9   5.0   26.1   3.5  (1%)  *   8.1   SoR  Costs   Design   Developer  Fees/Staff   City  Oversight   FF&E/Kitchen   Public  Art   Other   78.5   21.3   13.1   3.5   31.4   2.6  (0.75%)  *   6.6   25.0  Con=ngency  31.3   $498.0m  Total  $506.2m   * Both proposals below the 1.5% requirement. City has option to negotiate a lower contribution, taking into account the size of the project and other Developer contributions (such as public amenities). May 15, 2013 Annual Costs 47   Portman-­‐CMC  South  Beach  ACE   $1.5m  annually  OperaEng  Support  $1.5m  annually   $3m     increasing  2%  annually   Center  Capital   Maintenance   Reserve   $3m     increasing  2%  annually   $2.5m  17th  St.  Garage   $1.3m  P-­‐Lot   Replace  Lost   Parking  Revenues   $2.5m  17th  St.  Garage   $1.3m  P-­‐Lot   EsEmate  $900,000  annually   85%  funded  by  establishing  a   Business  Improvement  District   charging  Private  Components   0.5%  of  Gross  Revenues   Public  AmeniEes   Maintenance   EsEmate  $1.3m  annually   Share  costs  “proporEonally”,   City  costs  to  be  consistent   with  current  levels  of   maintenance  funding   May 15, 2013 Proposal Comparison • Economic  Impact   • Teams   • Master  Plan  &  Program   • Land  Leases   • Public  Costs   • Public  Financing   • Private  Investment   • Timeline   • Miscellaneous  Terms   • Key  Differences   48   May 15, 2013 Resources 49   New  1%   Resort  Tax   County   G.O.  Bond   Proceeds   “$55m”   RDA  Funds   Earmarked   for  Center   Variable   Land  Lease   Payments   Fixed   Land  Lease   Payments   ConvenEon   Center   Parking   Revenues   Project   Generated   Property  &   Resort   Taxes   Public Public/ Private Private $4.5m   Annual   CDT   AllocaEon   Security   Citywide  Resort  Tax   Parking  Enterprise  Fund   May 15, 2013 Public Investment 50   Portman-­‐CMC  South  Beach  ACE   $656.5m   53.6   525.1   45.7   *   32.1   SOURCES   County  G.O.  Bonds   Center  Bond  Proceeds   Parking  Bond  Proceeds   1%  2014  Resort  Tax   Developer  ContribuEon   $715.0m   53.6   566.2   73.9   10.7   10.6   $656.5m   498.0   55.0   30.4   583.4   25.3   41.3   6.7   -­‐   USES   ConvenEon  Center   Public  AmeniEes   Center  Parking   Total  Project   Capitalized  Interest   Debt  Service  Reserve   Issuance  Cost/Fees   Excess  Proceeds   $715.0m   506.2   71.3   57.9   635.4   22.7   46.8   5.7   4.4   Proposes to set aside 2014 collections for additional City debt service “Rental Reserve” to be used for potential future shortfalls. May 15, 2013 Source Contribution 51  Amounts estimated by Strategic Advisory Group. Will request each finance team to refine. In millions Portman Tishman SOURCES County'G.O.$53.6 $53.6 1%'Resort'Tax 257.2 257.2 1%'Resort'Tax'2014 10.7 10.7 Fixed'Land'Lease ''Hotel 53.1 57.09''''''' ''Residential 6.8 12.4 ''17th'Street'&'Retail 123.3 105.3 !!"17th!Street!Parking 34.8 68.4 !!"17th!Street!Retail/Rest.53.8 36.8 !!"N.!of!17th!Street!Retail/Rest.24.4 0.0 !"Cultural 10.3 0.0 RDA'thru'2022 73.1 73.1 Parking'Bonds 45.7 73.9 Developer'Contribution'32.1 10.6 Project'Resort'Taxes 1.0 61.2 Other 0.0 0.0 $656.5 $715.0 $350m Total Fixed Payments over 30 years $327m Total Fixed Payments over 30 years May 15, 2013 County G.O. Proceeds/RDA Commitment  $55.0m   Used    (1.4m)   Remaining  $53.6m   52   2016  $4.2m   2017  13.6m   2018  14.0m   2019  14.2m   2020  14.5m   2021  14.6m   2022  14.8m    $90.0m   County  G.O  Proceeds   Use  in  bond  issuance  will   require  County  approval   RDA  Funds   May 15, 2013 Key Public/Private Assumptions 53   Portman-­‐CMC  2019  South  Beach  ACE     $281   75.3%   $149   $4,797   Hotel   Average  Daily  Rate   Occupancy   F&B/ORN   Property  Tax/Room     $351   76%   $147   $7.315   (Includes  F&B  Venue)   N/A   Hotel  Specialty   Restaurant   SF   Sales/SF   Property  Tax/       40,000   $1,545   Included  in  Hotel     93,000/32,000   $895/$1,194   $19.13*   Retail/Restaurants   SF   Sales/SF   Property  Tax/SF     59,500*   $1,167*   $21.45*     $2,440   Residen=al   Property  Tax/unit     $5,354   * Amount for combined retail & restaurants. May 15, 2013 Public/Private Resources 54  54   $0m   $2m   $4m   $6m   $8m   $10m   $12m   $14m   $16m   $18m   $20m   $22m   20 1 4   20 1 5   20 1 6   20 1 7   20 1 8   20 1 9   20 2 0   20 2 1   20 2 2   20 2 3   20 2 4   20 2 5   20 2 6   20 2 7   20 2 8   20 2 9   20 3 0   20 3 1   20 3 2   20 3 3   20 3 4   20 3 5   20 3 6   20 3 7   20 3 8   20 3 9   20 4 0   20 4 1   20 4 2   20 4 3   20 4 4   Tishman  Property  Taxes   Tishman  Resort  Taxes   Portman  Property  Taxes   Portman  Resort  Taxes   Taxes projected to grow at 2% annually after stabilization Property taxes include City portion for 99 years plus County portion dedicated to RDA through 2022 NPV over 99 Years Portman South Beach -CMC ACE Difference Property $67m $86m $19m Resort 102m 143m 41m Total $169m $229m $60m May 15, 2013 Public Resources 55   $0m   $10m   $20m   $30m   $40m   $50m   $60m   20 1 4   20 1 5   20 1 6   20 1 7   20 1 8   20 1 9   20 2 0   20 2 1   20 2 2   20 2 3   20 2 4   20 2 5   20 2 6   20 2 7   20 2 8   20 2 9   20 3 0   20 3 1   20 3 2   20 3 3   20 3 4   20 3 5   20 3 6   20 3 7   20 3 8   20 3 9   20 4 0   20 4 1   20 4 2   20 4 3   20 4 4   $4.5m CDT Ops/Maint Payment New 1% Resort Tax Fixed Lease Paymen t s All projections assume 2% growth. RDA Revenues May 15, 2013 Project Needs 56   $0m   $10m   $20m   $30m   $40m   $50m   $60m   20 1 4   20 1 5   20 1 6   20 1 7   20 1 8   20 1 9   20 2 0   20 2 1   20 2 2   20 2 3   20 2 4   20 2 5   20 2 6   20 2 7   20 2 8   20 2 9   20 3 0   20 3 1   20 3 2   20 3 3   20 3 4   20 3 5   20 3 6   20 3 7   20 3 8   20 3 9   20 4 0   20 4 1   20 4 2   20 4 3   20 4 4   Fixed Lease Paymen t s All projections assume 2% growth. New 1% Resort Tax Portman-CMC South Beach ACE Debt Service + Ops ($1.5m) + Cap Ex ($3m growing at 2%) + Lost Parking Revenues ($3.8m) Debt Service $4.5m CDT Ops/Maint Payment RDA Revenues May 15, 2013 Base Case (Center + Hotel) 57   $0m   $10m   $20m   $30m   $40m   $50m   $60m   20 1 4   20 1 5   20 1 6   20 1 7   20 1 8   20 1 9   20 2 0   20 2 1   20 2 2   20 2 3   20 2 4   20 2 5   20 2 6   20 2 7   20 2 8   20 2 9   20 3 0   20 3 1   20 3 2   20 3 3   20 3 4   20 3 5   20 3 6   20 3 7   20 3 8   20 3 9   20 4 0   20 4 1   20 4 2   20 4 3   20 4 4   New 1% Resort Tax HQ Hotel $4.5m CDT Ops / Maint Payment New 1% Resort Tax Fixed Lease Paymen t s Project Propert y T a x e s Project Resort Ta x e s Variable Lea s e P a y m e n t s All projections assume 2% growth. Debt Service + Ops ($1.5m) + Cap Ex ($3m growing at 2%) + Lost Parking Revenues ($740k) Debt Service Portman-­‐CMC   RDA Revenues May 15, 2013 Base Case (Center + Hotel) 58   $0m   $10m   $20m   $30m   $40m   $50m   $60m   20 1 4   20 1 5   20 1 6   20 1 7   20 1 8   20 1 9   20 2 0   20 2 1   20 2 2   20 2 3   20 2 4   20 2 5   20 2 6   20 2 7   20 2 8   20 2 9   20 3 0   20 3 1   20 3 2   20 3 3   20 3 4   20 3 5   20 3 6   20 3 7   20 3 8   20 3 9   20 4 0   20 4 1   20 4 2   20 4 3   20 4 4   New 1% Resort Tax HQ Hotel $4.5m CDT O p s / Maint Payment New 1% Resort Tax Fixed Lease Paymen t s Project Propert y T a x e s Project Resort Tax e s Variable Leas e P a y m e n t s All projections assume 2% growth. South  Beach  ACE   Debt Service + Ops ($1.5m) + Cap Ex ($3m growing at 2%) + Lost Parking Revenues (-0-) Debt Service RDA Revenues May 15, 2013 Base Case (Center + Hotel) 59   $0m   $10m   $20m   $30m   $40m   $50m   $60m   20 1 4   20 1 5   20 1 6   20 1 7   20 1 8   20 1 9   20 2 0   20 2 1   20 2 2   20 2 3   20 2 4   20 2 5   20 2 6   20 2 7   20 2 8   20 2 9   20 3 0   20 3 1   20 3 2   20 3 3   20 3 4   20 3 5   20 3 6   20 3 7   20 3 8   20 3 9   20 4 0   20 4 1   20 4 2   20 4 3   20 4 4   New 1% Resort Tax HQ Hotel $4.5m CDT Ops / Maint Payment New 1% Resort Tax Fixed Lease Paymen t s Project Propert y T a x e s Project Resort Ta x e s Variable Lea s e P a y m e n t s All projections assume 2% growth. Debt Service + Ops ($1.5m) + cap Ex ($3m growing at 2%) + Lost Parking Revenues ($740k) Debt Service Portman-­‐CMC   RDA Revenues RDA Extension May 15, 2013 Base Case (Center + Hotel) 60   $0m   $10m   $20m   $30m   $40m   $50m   $60m   20 1 4   20 1 5   20 1 6   20 1 7   20 1 8   20 1 9   20 2 0   20 2 1   20 2 2   20 2 3   20 2 4   20 2 5   20 2 6   20 2 7   20 2 8   20 2 9   20 3 0   20 3 1   20 3 2   20 3 3   20 3 4   20 3 5   20 3 6   20 3 7   20 3 8   20 3 9   20 4 0   20 4 1   20 4 2   20 4 3   20 4 4   New 1% Resort Tax HQ Hotel $4.5m CDT O p s / Maint Payment New 1% Resort Tax Fixed Lease Paymen t s Project Proper t y T a x e s Project Resort Tax e s Variable Leas e P a y m e n t s All projections assume 2% growth. South  Beach  ACE   Debt Service + Ops ($1.5m) + cap Ex ($3m growing at 2%) + Lost Parking Revenues (-0-) Debt Service RDA Revenues RDA Extension May 15, 2013 All Components 61   $0m   $10m   $20m   $30m   $40m   $50m   $60m   20 1 4   20 1 5   20 1 6   20 1 7   20 1 8   20 1 9   20 2 0   20 2 1   20 2 2   20 2 3   20 2 4   20 2 5   20 2 6   20 2 7   20 2 8   20 2 9   20 3 0   20 3 1   20 3 2   20 3 3   20 3 4   20 3 5   20 3 6   20 3 7   20 3 8   20 3 9   20 4 0   20 4 1   20 4 2   20 4 3   20 4 4   New 1% Resort Tax HQ Hotel $4.5m CDT O p s / Maint Payment New 1% Resort Tax Fixed Lease Paymen t s Project Prop e r t y T a x e s Project Resor t T a x e s Variable Le a s e P a y m e n t s All projections assume 2% growth. Debt Service + Ops ($1.5m) + Cap Ex ($3m growing at 2%) + Lost Parking Revenues ($3.8m) Debt Service Portman-­‐CMC   RDA Revenues May 15, 2013 All Components 62   $0m   $10m   $20m   $30m   $40m   $50m   $60m   20 1 4   20 1 5   20 1 6   20 1 7   20 1 8   20 1 9   20 2 0   20 2 1   20 2 2   20 2 3   20 2 4   20 2 5   20 2 6   20 2 7   20 2 8   20 2 9   20 3 0   20 3 1   20 3 2   20 3 3   20 3 4   20 3 5   20 3 6   20 3 7   20 3 8   20 3 9   20 4 0   20 4 1   20 4 2   20 4 3   20 4 4   New 1% Resort Tax HQ Hotel $4.5m CDT O p s / Maint Payment New 1% Resort Tax Fixed Lease Paymen t s Project Prop e r t y T a x e s Project Resor t T a x e s Variable Le a s e P a y m e n t s All projections assume 2% growth. South  Beach  ACE   Debt Service + Ops ($1.5m) + Cap Ex ($3m growing at 2%) + Lost Parking Revenues ($3.8m) Debt Service RDA Revenues May 15, 2013 Hypothetical Scenarios 63   Base Base Base Portman Tishman Case Case/+Case/++ SOURCES County'G.O.$53.6 $53.6 $53.6 $53.6 $53.6 1%'Resort'Tax 257.2 257.2 257.2 257.2 257.2 1%'Resort'Tax'2014 10.7 10.7 10.7 10.7 10.7 Fixed'Land'Lease ''Hotel 53.1 57.09'''''''55.0 55.0 55.0 ''Residential 6.8 12.4 0.0 0.0 0.0 ''17th'Street'&'Retail 123.3 105.3 0.0 15.0 45.0 !!"17th!Street!Parking 34.8 68.4 0.0 0.0 0.0 !!"17th!Street!Retail/Rest.53.8 36.8 0.0 0.0 30.0 !!"N.!of!17th!Street!Retail/Rest.24.4 0.0 0.0 15.0 15.0 !"Cultural 10.3 0.0 0.0 0.0 0.0 RDA'thru'2022 73.1 73.1 71.1 71.1 71.1 Parking'Bonds 45.7 73.9 46.0 46.0 46.0 Developer'Contribution'32.1 10.6 5.0 5.0 5.0 Project'Resort'Taxes 1.0 61.2 0.0 0.0 0.0 Other 0.0 0.0 176.0 161.0 131.0 $656.5 $715.0 $674.5 $674.5 $674.5 May 15, 2013 Center Parking Garage Financing 64   Portman-­‐CMC  South  Beach  ACE   1,040  Spaces  1,388   1,040  +  348  of  Hotel  Requirement  *   $30.4m   $29,230/space  Development  Cost  $57.9m   $41,700/space   Center,  New  Ballroom,  Retail,   Hotel  Overflow,  Gleason,   Transient,  Off-­‐Site  Valet   Demand  Sources   Center,  New  Ballroom,  Retail,   Hotel  Overflow,  Gleason,   Transient,  Off-­‐Site  Valet     $8.46   $3.42   $7.27   Per  Space  Per  Day**   Revenue  (2018)   Current  Surface  lots   17th  Street  (2012)     $9.06   $3.42   $7.27   $2.32   $2.41   Expenses  (2018)   17th  Street  Garage  (2012)   $1.04   $2.41   $6.14   $4.86   Net  Income  (2018)   17th  Street  Garage  (2012)   $8.02   $4.86   * All spaces developed within the Center proposed to be controlled/operated by Center with Hotel/guests paying for use. ** Have requested Developers to provide support for their revenue and expense projections. May 15, 2013 Parking Finance Plan 65   $0.0m   $1.0m   $2.0m   $3.0m   $4.0m   $5.0m   $6.0m   $7.0m   $8.0m   20 1 7   20 1 9   20 2 1   20 2 3   20 2 5   20 2 7   20 2 9   20 3 1   20 3 3   20 3 5   20 3 7   20 3 9   20 4 1   20 4 3   Portman-­‐CMC   20 1 7   20 1 9   20 2 1   20 2 3   20 2 5   20 2 7   20 2 9   20 3 1   20 3 3   20 3 5   20 3 7   20 3 9   20 4 1   20 4 3   South  Beach  ACE   Parking Net Operating Income Parking Net Operating Income 1,040 Spaces 1,388 Spaces Debt Serv i c e May 15, 2013 Proposal Comparison • Economic  Impact   • Teams   • Master  Plan  &  Program   • Land  Leases   • Public  Costs   • Public  Financing   • Private  Investment   • Timeline   • Miscellaneous  Terms   • Key  Differences   66   May 15, 2013 Private Investment 67   Portman-­‐CMC  South  Beach  ACE   $301.4m  Hotel  *  $390.9m   (includes  21.9m  F&B  Venue)   92.1   (includes  North  of  17th  areas)   17th  Street  Garage  &   Retail  *  49.9   99.0  ResidenEal  *  112.4   18.5  Theater  *  -­‐0-­‐   45.3  Cultural  *  6.3   41.2   32.1   9.1   Contribu=on  to  Public   Public  AmeniEes   Comm.  Center/Office   23.5   10.5   13.0   $597.5m  Total  $583.1m   * Prior to allocation of Public Contribution costs. May 15, 2013 Private Underwriting 68   Portman-­‐CMC  2021  South  Beach  ACE     78%   $301   $114   10.2%   Hotel   Occupancy   ADR   NOI/Room/Day   Cash  on  Cost  Return  (Yr  4)     78%   $384   $147   10.6%       $15.99   $110.70   $16.2m   11%   17th  Street     Garage  &  Retail   Parking  Revenue/Space/Day   Retail  Revenue/SF   NOI   Cash  on  Cost  Return  (Yr  4)         $17.25   $99.59   $8.3m   10.2%     $3,164   $2,206   7.4%   Residen=al   Revenue/Unit/Month   NOI  /Unit/Month   Cash  on  Cost  Return  (Yr  4)     $3,585   $2,254   5.8%   May 15, 2013 Private Capitalization 69   Portman-­‐CMC  South  Beach  ACE   $364m  Debt  (61%)   $234m  Equity  (39%)   $598m   CapitalizaEon   $297m  Debt  (50.9%)   $286m  Equity  (49.1%)   $583m   $46.7m   20%  of  Equity   Master  Developer   Commitment   $57m  –  $86m   $20%  -­‐  30%   $187.3m   Expressions  of  Interest   AREA  Property  Partners     Northwood  Investors     USAA   PrudenEal     AIG   Canyon  Capital  Realty  Advisors   Berggruen  Holdings   Jamestown   Other  Equity  $200m  -­‐  $229m   MetLife   May 15, 2013 Debt Expressions of Interest 70   Portman-­‐CMC  South  Beach  ACE   HFF   HSBC   J.P.  Morgan   SunTrust   PNC  Real  Estate   BBVA  Compass   Regions   Northwestern  Mutual   New  York  Life  Investment  Mgmt.   PrudenEal   MercanEl  Comercebank   First  Bank  Florida   City  NaEonal  Bank   Ocean  Bank   Debt  Le*ers  of   Interest   Bank  of  America   HSBC   Wells  Fargo   Ullico     May 15, 2013 Proposal Comparison • Economic  Impact   • Teams   • Master  Plan  &  Program   • Land  Leases   • Public  Costs   • Public  Financing   • Private  Investment   • Timeline   • Miscellaneous  Terms   • Key  Differences   71   May 15, 2013 Development Timeline 72   Jun 2013 Jan 2018 Jan 2014 Jan 2015 Jan 2016 Jan 2017 Development Agreement/ Lease Execution Jan 2019 Private Financing Public Bonds Portman-CMC Design Construction 17th Garage Open* Residential Open Retail/ Cultural Open Hotel/ Theater Open CC Open Jun 2013 Jan 2018 Jan 2014 Jan 2015 Jan 2016 Jan 2017 Development Agreement/ Lease Execution Jan 2019 Public Bonds/ Private Financing South Beach ACE Design Construction Temp 17th Garage Retail Open* Hotel/Residential/ Theater/Cultural Open CC Open Construction * Garage to remain open during renovation, this would change if Portman new build option is selected. May 15, 2013 Proposal Comparison • Economic  Impact   • Teams   • Master  Plan  &  Program   • Land  Leases   • Public  Costs   • Public  Financing   • Private  Investment   • Timeline   • Miscellaneous  Terms   • Key  Differences   73   May 15, 2013 Miscellaneous Terms 74   Portman-­‐CMC  South  Beach  ACE   City/Vendor  ConvenEon  Center     Operator  City/Vendor   $1m     Aker  Development  Agreement  &   Referendum   City  Costs   $1m     Aker  Development  Agreement  &   Referendum   LEED   Delos  WELL  Standard  Sustainability  LEED   10.7  acres  of  rookop  art  privately   funded,  approximately  $25m  over   99  year  term   Center/Ballroom  Arts  Roof   InstallaEon  N/A   20%  Minimum  Disadvantaged     Business  Goal  20%  Minimum   Agreed  to  City/CVB/Center   Language  Hotel  Room  Block  Agreed  to  City/CVB/Center   Language*   Maintain  ‘As  Is”  Theater  Community     Benefit  Fund  Maintain  “As  Is”   * Proposed higher pricing may require modification to the submitted Room Block Agreement pricing. May 15, 2013 Proposal Comparison • Economic  Impact   • Teams   • Master  Plan  &  Program   • Land  Leases   • Public  Costs   • Public  Financing   • Private  Investment   • Timeline   • Miscellaneous  Terms   • Key  Differences   75   May 15, 2013 Key Differences 76   Portman-­‐CMC  South  Beach  ACE     West   At  Grade,  P-­‐Lot   Conven=on  Center     Front  Door   Ballroom     South   Over  New  Exhibit  Hall     22.9  acres   26.4  acres   Including  areas  over  structure     $32.8m   Public  Ameni=es   At  Grade       ContribuEon     23.2  acres   28.6  acres     Including  area  over  dock  &  parking    accessible  from  grade   $10.6m   $281  (2019  ADR)   $237  (2013$)  Hotel  PosiEoning  $351  (2019  ADR)   $244  (2013$)   125,000  sf     Retail/Restaurant   Program     59,500   (99,500  sf  including  Hotel  F&B  Venue)   Privately  Funded  RenovaEon   Leased  from  City   Subject  to  LiveNaEon  Agreement   Theater   Plans  to  renovate  upon   renegoEaEon  of  LiveNaEon   contract,  costs  not  in  Budget   May 15, 2013 Key Differences 77   Portman-­‐CMC  South  Beach  ACE     124  feet   -­‐   Height  Variance   Hotel   ResidenEal     194  feet   120  k  x  2  buildings   430,100  sf  Lease  Areas   Excluding  Subterranean  208,732  sf   4.0%  Lead  Architects   Fee  4.25%   $18.3m   Assumed  Design-­‐Build   Pre-­‐GMP/ Design-­‐Build   Costs   $53m  *   $38m  Design  &  Oversight   $15m  Early  ConstrucEon   Assumes  GMP   80%   ConstrucEon   Cost  Savings  to   City   50%   * Indicates a GMP structure which provides for more complete design documents prior to issuing bonds. This cost is included in the budget. South Beach Ace also offered to undertake as design-build at City’s option, thereby lowering pre-GMP costs. May 15, 2013 Key Differences 78   Portman-­‐CMC  South  Beach  ACE     4.0%   4.0%   25%   Percentage  Rent   Hotel   ResidenEal   Retail/Rest./Park     3.0%/3.5%   4.5%   10%   $328m   $268m   $60m   Lease  NPV   Fixed   Variable   $247m   $225m   $22m   $54m   $551m   ($328m)   ($169m)   Net  Public  Costs*   Project  Costs   NPV  Lease  Value   NPV  Project  Gen.   Tax   $149m   $625m   ($247m)   ($229m)   *Funded by dedicated 1% Resort Tax approved by voters.