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20161116 Assessment ScopeNovember 11, 2016 Mr. Rolando Aedo Executive Vice President / Chief Marketing Officer Greater Miami CVB 701 Brickell Avenue, Suite 2700 Miami, FL 33131 Dear Mr. Aedo: It was a pleasure talking with you recently regarding the progress on the Miami Beach Convention Center and on-going discussions regarding the new headquarter hotel. I have prepared the attached scope of services designed to address project questions related to a market -supported headquarter hotel program of space. Elements including room count, tower configuration, sellable event space and related issues will be addressed. The research conducted will be thorough, providing a customer -based foundation to support future hotel development parameters. We look forward to working with you again on such an important project for the region. Please feel free to contact me any time at (612) 294-2001 or ikaatz©cslintl.com with any questions regarding this submittal. Sincerely, ptci John T. Kaatz CSL International Conventions, Sports & Leisure International 520 Nicollet Mall • Suite 440 • Minneapolis, MN 55402 • Telephone 612.294.2000 • Facsimile 612.294.2045 MBCC HEADQUARTER HOTEL PROGRAMMING SCOPE OF SERVICES Research will provide a foundation for our recommendations on various important aspects of the proposed MBCC headquarter hotel. We have prepared the following outline of services focusing on key elements of research, including the following tasks. Task 1. Task 2. Task 3. Task 4. Task 5. Task 6. Study Kickoff and Initial Project Planning Current Customer Hotel Need Research Potential Customer Hotel Need Research Comparable and Competitive Market Data Analysis Local Hospitality Market Conditions Review Headquarter Hotel Sizing and Programming Recommendations Task 1. Study Kickoff and Initial Project Planning As an initial step in the engagement, we will work with GMCVB, City of Miami Beach and other project stakeholders to establish the specific project goals and timeframe. An initial planning meeting will take place to collect pertinent project data and to identify any local stakeholders that we will need to meet with at the study's outset. Task 2. Current Customer Hotel Need Research We will work with the GMCVB and MBCC management to identify a large sample of exiting and past event customers, and will conduct interviews designed to gauge specific headquarter hotel needs in terms of sizing, amenities, sellable space and other factors. The impact of the headquarter hotel on event destination selection will be assessed, and the effect of no headquarter hotel development on business retention will be evaluated. We will also review existing lost MBCC business data to help define the event impacts assuming a headquarter hotel is developed under various scenarios. Task 3 Potential Customer Hotel Need Research We will interview via telephone and email a representative sample of potential users of the expanded and improved MBCC from a state, regional and national basis. The analysis may include organizations or individuals from the following types of event segments: • Corporate meeting planners; • Association conventions and tradeshows; • SMERF events (social, military, education, religious, fraternal); and • Tiered marketing events. MBCC Headquarter Hotel Sizing and Amenity Analysis Scope of Services Page 1 C'ON\ ENT1- N SPORTS CSL LEISURE MBCC HEADQUARTER HOTEL PROGRAMMING SCOPE OF SERVICES Event organizer survey results will be analyzed to provide summaries of the following data specific to the impact of the a headquarter hotel: • likelihood of utilizing the MBCC under various hotel development scenarios; • impact, if any, if no headquarter hotel is developed. • reasons for not choosing the MBCC (if applicable); • overall and headquarter hotel room requirements; • event attendance data; and • headquarter hotel event space needs. Task 4. Comparable and Competitive Market Data Analysis We will conduct an analysis of the convention center, overall hotel and headquarter hotel conditions in competitive and comparable markets nationally. Specific areas of focus will include the following. • Number of hotel rooms proximate to the convention center. • Total rooms in the market from which to accommodate convention and tradeshow demand. • Number of hotel properties needed to achieve various room block sizes relevant to the national convention and tradeshow market. • Ratio hotel room inventory to convention center sellable space. These data will allow us to place the MBCC product under various headquarter hotel development scenarios within the competitive landscape. Future headquarter hotel recommendations will be designed to provide a competitive balance for the MBCC, helping to ensure that fair event market capture is achieved. Task 5. Local Hospitality Market Conditions Review There are significant hospitality development projects under consideration or construction within the Greater Miami market, particularly in downtown Miami. Based on the room count and sellable space sizing for these projects, we will evaluate the potential impact on desired sizing for a MBCC headquarter hotel. We will work with GMCVB, DDA, city and local economic development officials to identify projects and market conditions that will be impactful. This will include assessment of any major office or other development that could positively impact room demand in the market, as well as entertainment development that could influence convention demand. Task 6. Headquarter Hotel Sizing and Programming Recommendations Based on the research summarized above, we will develop recommendations on the various sizing and program elements for a new MBCC headquarter hotel. Various scenarios will be MBCC Headquarter Hotel Sizing and Amenity Analysis Scope of Services Page 2 'ON\'PNTifIN SPORTS C' ACL LFISURE MBCC HEADQUARTER HOTEL PROGRAMMING SCOPE OF SERVICES developed, with assessment of impact on event capture, room block size, rooms required to assemble room blocks and related factors. The effect on event capture under a no -hotel scenario will also be assessed. The final report will detail the room count, sellable space, configuration and other aspects for the project, from a market demand perspective. The recommendations will be designed to capture the event demand particular to the MBCC from a current and future market perspective. Proposed Study Cost Total professional fees for any engagement will depend on the number of hours required to complete the project and skill levels of the assigned personnel. Professional fees associated with all tasks will not exceed $38,000. Out-of-pocket expenses including travel costs, postage, telephone, report preparation and reproduction will be billed separately at cost. Professional fees and out-of-pocket expenses will be billed and are payable on a monthly basis. Should additional work be required beyond the scope of services detailed herein, professional fees will be billed on an hourly rate basis. Total professional fees for additional services will depend on the number of hours required to complete the services and skill levels of the assigned personnel. MBCC Headquarter Hotel Sizing and Amenity Analysis Scope of Services Page 3 CON`'FNTIIDNS SPORTS (1 LEISURE CSL was established for the specific purpose of providing a source of focused research and expertise in these industries. Services include new/expanded event facility feasibility studies, organizational reviews/performance enhancement studies, destination master planning, industry benchmarking, negotiation assistance and related services. With offices located in the Minneapolis and Dallas metro areas, we assist our clients from the earliest stages of project planning, ensuring that all decisions are informed ones. Our consultants provide in-depth information, creative solutions to underlying issues, a thorough analysis of financial implications, and various measurements of risk and return surrounding alternative courses of action. With a staff of nearly 30 professionals, CSL has completed over 500 consulting engagements throughout North America and abroad, focusing on a variety of event facility planning, strategic advisory services and economic development issues. JOHN KAATZ Principal (612) 294-2001 I jkaatz@cslintl.com Mr. Kaatz's experience includes in-depth analyses for over 500 convention, hospitality, destination planning and public assembly facility projects. The results of these studies have been have been used to assist public and private sector entities in assessing project market and financial feasibility, developing viable building program solutions, improving marketing and operational performance, preparing comprehensive destination development plans, and in developing policies and procedures to maximize financial and economic impact performance. Prior to joining CSL, John was the Director of Coopers & Lybrand's Convention and Visitor Industry Consulting Group based in Dallas. John has been asked to speak at various industry forums and seminars related to the convention, visitor and sports industries. He has also testified before local and state-wide public bodies related to the financial and economic implications of public sector investment in the convention and visitor industry. John has led studies within the industry focusing on a variety of areas including: • Using extensive market research methods to define the event potential for projects specific to their unique markets. • Preparing short and long range building program solutions tied to the unique market characteristics of a project. • Analyzing the financial operating and economic impact potential for a project. • Developing alternatives for project financing. • Preparing analysis of existing facility pricing, marketing, operational and other policies, and making recommendations for improvement. • Developing comprehensive market -wide plans for broader hotel, entertainment and other destination development aspects focused on the convention and visitor industry. • Analyzing public assembly facility management structure alternatives. • Conducting comprehensive benchmarking and industry trend analysis, drawing from our comprehensive database of industry metrics. John holds a B.S. in Economics from the University of Minnesota in Minneapolis. He has been quoted in numerous national and local publications on topics related to the public assembly industry. John is a member of the International Association of Venue Managers and Destination Marketing Association International. EXPERIENCE - CONVENTION CENTERS • Baltimore Convention Center • Branson Convention Center • Davis Conference Center • Fairbanks Performing Arts Center • Greater Tacoma Convention a Trade Center • Hendersonville (NC) Convention Center • Las Vegas Convention Center • Los Angeles Convention Center • McCormick Place • Miami Beach Convention Center • New Orleans Modal Convention Center • Port Huron Proposed Convention Center >t Hotel • Utah Valley Convention Center and Hotel • Walter E. Washington Convention Center • Alliant Energy Center (Madison, Wisconsin) • Ames Conv. and Events Ctr. (Ames, Iowa) • Anaheim Convention Center (Anaheim, California) • Arlington Convention Center (Arlington, Virginia) • Austin Convention/Civic Center (Austin, Texas) • Bangor Convention Center (Bangor, Maine) • Bartle Hall Convention Complex (Kansas City, Missouri) • Bartlesville Convention/Civic Center (Bartlesville, Oklahoma) • Bell County Expo Center (Belton, Texas) • Bentonville Civic Center (Bentonville, Arkansas) • Bismarck Civic Center (Bismarck, North Dakota) • Boise Centre on the Grove (Boise, Idaho) • Boston Conv. &t Exhibition Ctr. (Boston, Massachusetts) • Boulder Conference Center (Boulder, Colorado) • Branson Convention Center (Branson, Missouri) • Bridgeport Arena a Event Center (Bridgeport, Texas) • Broward County Conv. Center 8 Hotel (Fort Lauderdale, Florida) • Buena Park Convention Center (Buena Park, California) • Burlingame Conference Center (Burlingame, California) • Calgary Exhibition it Stampede (Calgary, Alberta) • Carbon County Fairgrounds Event Ctr. (Price, Utah) • Cashman Center (Las Vegas, Nevada) • Chandler Convention Center Et Hotel (Chandler, Arizona) • Charleston Civic Center (Charleston, West Virginia • Cincinnati Convention Center (Cincinnati, Ohio) • Coconut Grove Convention Center (Miami, Florida) • Colorado Convention Center (Denver, Colorado) • Crown Center Convention/Hotel Facilities (Kansas City, Missouri) • Davis Conference Center (Layton, Utah) • Denver Headquarters Hotel (Denver, Colorado) • Des Moines Convention Ctr. Aud. (Des Moines, Iowa) • Dubuque Conference Center (Dubuque, Iowa) • Dunn Conference Center (Dunn, North Carolina) • Durango Conference Center (Durango, Colorado) • Evansville Convention Center (Evansville, Indiana) • Evansville Minor League Arena (Evansville, Indiana) • Fairbanks Convention 8 PAC Facilities (Fairbanks, Alaska) • Five Flags Center (Dubuque, Iowa) • Fort Worth Event Facilities (Forth Worth, Texas) • Fox Cities Convention Center 8 Hotel (Appleton, Wisconsin) • Gatlinburg Convention Center (Gatlinburg, Tennessee) • Grand Wayne Center (Fort Wayne, Indiana) • Granbury Conference Center (Granbury, Texas) • Grand Junction Event Center (Grand Junction, Colorado) • Grand Wayne Convention Center (Grand Wayne, Indiana) • Hammond Convention Center (Hammond, Louisiana) • Hartford Convention Center (Hartford, Connecticut) • Havre Multipurpose Event Center (Havre, Montana) • Hawaii Convention Center (Honolulu, Hawaii) • Helena Convention/Event Facilities (Helena, Montana) • Hendersonville Convention Center (Hendersonville, North Carolina) • Hendricks County Hotel/Conf. Center (Hendricks County, Indiana) • Hendricks County Conference Center (Hendricks County, Indiana) • Hollywood Park Conference Center (Hollywood Park, Texas) • Jackson Convention Center Et Hotel (Jackson, Michigan) • Joliet Convention/Arena Facilities (Joliet, Illinois) • Kentucky Fair and Exposition Center (Louisville, Kentucky) • Knight Ctr./Miami Convention Ctr. (Miami, Florida) • Knoxville Convention Facility (Knoxville, Tennessee) • Lake of the Ozarks Events Center (Osage Beach, Missouri) • Lane County Convention Center (Eugene, Oregon) • Lancaster Convention Center (Lancaster, Pennsylvania • Lansing Center (Lansing, Michigan) • Laredo Civic Center (Laredo, Texas) • Las Vegas Convention Center (Las Vegas, Nevada) • Lincoln Conference Center/Hotel (Lincoln, Nebraska) • Los Angeles Convention Center (Los Angeles, California) • Lubbock Civic Center (Lubbock, Texas) • Maryland Convention Facilities (Baltimore, Maryland) • McAllen Convention Facility (McAllen, Texas) • MECCA/Wisconsin Center (Milwaukee, Wisconsin) • Mexico City Convention Center (Mexico City, Mexico) • Miami Beach Convention Center (Miami, Florida) • Midland Convention Center (Midland, Texas) • Minot Community Event Facilities (Minot, North Dakota) • Mississippi Coast Convention Center (Biloxi, Mississippi) • Minneapolis Convention Center (Minneapolis, Minnesota) • Montgomery Civic Center (Montgomery, Alabama) • Moore County Convention Center (Moore County, North Carolina) • Moorhead Conference Center (Moorhead, Minnesota) • Muskegon Exhibition Center (Muskegon, Michigan) • Muskingum County Event Center (Zanesville, Ohio) • Myriad Convention Center (Oklahoma City, Oklahoma) • Myrtle Beach Convention Center (Myrtle Beach, South Carolina) • Nashville Headquarters Hotel (Nashville, Tennessee) • National Western Complex (Denver, Colorado) • New Bern Convention Center (New Bern, North Carolina) • New Iberia Hotel/Conference Center (New Iberia, Louisiana) • New Jersey Exhibition Center (Meadowlands, New Jersey) • Newark Tradeshow Et Conv. Center (Newark, New Jersey) • Norfolk Conference Center/Hotel (Norfolk, Virginia) • Owatonna Events Center (Owatonna, Minnesota) • Palm Beach Convention Center (West Palm Beach, Florida) • Palmer Community Center (Palmer, Alaska) • Pasadena Center (Pasadena, California) • Pensacola Convention Center (Pensacola, Florida) • Pier 48 Exhibition Center (San Francisco, California) • Pier 92/94 Tradeshow Facility (New York City, New York) • Portland Convention Facilities (Portland, Maine) • Prime Osborn Convention Center (Jacksonville, Florida) • Provo Hotel/Convention Center (Provo, Utah) • Puerto Rico Convention Center (San Juan, Puerto Rico) • Quad Cities Event Center (Bettendorf, Iowa) • Queens Convention Center (New York, New York) • Reading Exhibition Center (Reading, Pennsylvania) • Redding Convention Center (Redding, California) • Reno Livestock Events Center (Reno, Nevada) • Reno/Sparks Convention Center (Reno, Nevada) • Roanoke Conference Center (Roanoke, Virginia) • Roland E. Powell Convention Center (Ocean City, Maryland) • Sacramento Convention Center (Sacramento, California) • St. Charles Convention Center (St. Charles, Missouri) • St. Cloud Civic Center (St. Cloud, Minnesota) • St. Paul RiverCentre (St. Paul, Minnesota) • St. Paul Hospitality Facilities (St. Paul, Minnesota) • Salisbury Conference Center (Salisbury, North Carolina) • Santa Fe Civic Center (Santa Fe, New Mexico) • Sarasota Convention Center (Sarasota, Florida) • Scranton Convention Center (Scranton, Pennsylvania) • Sioux Falls Convention Center (Sioux Falls, South Dakota) • South Lake Tahoe Cony. Facility (South Lake Tahoe, California) • Springfield Civic Center (Springfield, Massachusetts) • Springfield Convention Center (Springfield, Missouri) • State Fair Park (Oklahoma City, Oklahoma) • Statesville Civic Center (Statesville, North Carolina) • Stillwater Convention Center (Stillwater, Oklahoma) • Three County Fairgrounds (Northampton, Massachusetts) • Temple Convention Facilities (Temple, Texas) • Tulsa Downtown Hotel Development (Tulsa, Oklahoma) • Vail Conference Center (Vail, Colorado) • Washington State Conv./Trade Ctr. (Seattle, Washington) • Waterbury Exhibition Center (Waterbury, Connecticut) • Watertown Multipurpose Facility (Watertown, South Dakota) • Wilkes-Barre Exhibition Center (Wilkes-Barre, Pennsylvania) • Wisconsin Center District (Milwaukee, Wisconsin) • Woodstock Exhibition Facility (Woodstock, Illinois)