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20170213 Agenda Mayor’s Ad Hoc Blue Ribbon Steering Committee on the Convention Center Hotel 5:00 p.m., Monday, February 13, 2017 City Commission Chambers, City Hall AGENDA 1. ROLL CALL 2. APPROVAL OF MINUTES: a. October 17, 2016 b. November 16, 2016 3. PRESENTATION AND DISCUSSION: CONVENTION CENTER HOTEL TRAFFIC IMPACT ANALYSIS – Jose Gonzalez, Transportation Director 4. DISCUSSION: HOTEL NEEDS ASSESSMENT UPDATE – John Kaatz, Principal, Conventions, Sports and Leisure International 5. PUBLIC INPUT 6. GENERAL PANEL DISCUSSION 7. ADJOURN To request this material in alternate format, sign language interpreter (five-day notice required), information on access for persons with disabilities, and/or any accommodation to review any document or participate in any City-sponsored proceedings, call 305.604.2489 and select 1 for English or 2 for Spanish, then option 6; TTY users may call via 711 (Florida Relay Service). Mayor’s Ad Hoc Blue Ribbon Steering Committee Page 1 of 5 on the Convention Center Hotel 2016/10/17 Meeting Minutes Mayor’s Ad Hoc Blue Ribbon Steering Committee on the Convention Center Hotel 6:30 p.m., Monday, October 17, 2016 City Commission Chambers, City Hall Meeting Minutes In attendance: Commissioner Ricky Arriola, Chair Commissioner Kristen Rosen Gonzalez, Vice Chair Member Jorge Exposito Member Paul Freeman Member Debra Leibowitz Member Saul Gross Member Leslie Tobin Jeff Oris, Administration Liaison Also in attendance: Maria Hernandez, Convention Center District Project Director Rogelio Madan, Principal Planner, Planning Department Jose Gonzalez, Transportation Department Director Josiel Ferrer Diaz, Transportation Manager Chair Ricky Arriola opened the meeting at 6:43 p.m. and welcomed all in attendance. 1. ROLL CALL 2. APPROVAL OF MINUTES a. July 11, 2016 Saul Gross made the following motion: MOTION: TO APPROVE THE MINUTES FOR THE JULY 11th MEETING AS AMENDED Motion was seconded by: Paul Freeman Motion was adopted by a unanimous voice vote. b. August 29, 2016 Maria Hernandez clarified on the August 29th Meeting minutes that pedestrians getting off the street car on 19th street and Washington would enter the Convention Center through an air conditioned walkway on the second floor. Mayor’s Ad Hoc Blue Ribbon Steering Committee Page 2 of 5 on the Convention Center Hotel 2016/10/17 Meeting Minutes Saul Gross made the following motion: MOTION: TO APPROVE THE MINUTES FOR THE AUGUST 29TH MEETING AS AMENDED Motion was seconded by: Paul Freeman Motion was adopted by unanimous voice vote. 3. PRESENTATION AND DISCUSSION: POTENTIAL MASSING OF A HOTEL AND RELATED TRAFFIC MITIGATION ANALYSIS a. Building Massing – Rogelio Madan – Principal Planner, Planning Department Rogelio Madan presented an alternative site plan massing study of the Convention Center site that is inclusive of the Jackie Gleason site. The existing site today includes: The Fillmore Theater, surface parking on the west side of the lot, the 555 City building on the south side, and an open lawn in front of the Fillmore Theater. A potential site, initial idea would be to move the Fillmore Theater to the lawn that is on the east side of the lot - it can be phased so the existing Fillmore Theater can be operational while a new Fillmore Theater is under construction. The rest of the hotel can be built with ballrooms and a loading area to the west side of the lot once the Fillmore Theater is operating and leave some open space on the south side of the lot. The site uses would include: on the south side of the lot – hotel lobby with two levels of parking above it, a grand ballroom on the ground floor, some junior ballrooms, and some break out rooms. The new Fillmore Theater will have a driveway similar to the existing driveway that’s on the site running underneath the theater so you can have loading and drop off. The hotel would be west of the new Fillmore Theater with the massing towards the rear of the site so it wouldn’t be up against the street. It will also have lower buildings on the street that are of similar scale to the buildings that are across the street. Vehicular access to parking would be the north side on the alley off Convention Center Drive. There would be three drop off points: the existing drop off at the Fillmore Theater, one on the south side for Ubers, Taxis, a bus stop, or other types of uses, and another drop of point at Convention Center Drive to serve as the main drop off point on the west side. If traffic is really bad on the east or west side, one can still be dropped off on the Fillmore side and walk to the hotel. One can also be dropped off on the west side and walk through the hotel lobby and the remainder of the site to get to the Fillmore. The potential layout includes several pedestrian access points: west side, east side, and an entrance on the south side (in the middle where a retail or coffee shop can be placed to serve ballroom guests) and an elevator walkway from the hotel into the Convention Center (which would be above the service area; towards the rear of the site). In terms of internal circulation, there will be a central walkway through the ballrooms and on the upper levels and there would be a walkway that one could take from the Convention Center to the Fillmore. Mayor’s Ad Hoc Blue Ribbon Steering Committee Page 3 of 5 on the Convention Center Hotel 2016/10/17 Meeting Minutes In utilizing an alternate site (Fillmore on the west side and the Hotel on the east side), Rogelio Madan stated that there were issues regarding parking. Parking off of Washington Ave would draw more traffic onto Washington Ave and with street car there, there might be some conflicts. Instead, he continued, parking should be off of Convention Center Drive. One way to accomplish this is to raise the ballrooms and have parking underneath the ballrooms in the middle of the lot. Member Saul Gross expressed that it would be better to have the Convention Center hotel on the corner of Washington because he believes it would enliven the street life more than the Fillmore. Discussion continued on how the reconstruction of the Fillmore will affect the Convention Center Hotel and options available for parking. b. Traffic Issues – Jose Gonzales, Transportation Department Director Jose Gonzales stated that a few years ago, traffic engineers, AECOM, did a comprehensive evaluation of a headquarter hotel for the Convention Center. The final outcome of the evaluation was that sizing of a hotel isn’t an issue. The key to reducing vehicular trips is in the booking policy and the program of the Convention Center and what synergies the Convention Center and the hotel are going to have. The Study looked at incremental delays at some of the intersections due to an 800 – 1,200 room hotel. The delays found would be negligible. Josiel Ferrer Diaz indicated that intersections are measured by a level of service from A to F, with A being the best. The adoptive level for the city is D. The letter grades are based on delay (amount of time spent per cycle at a particular intersection waiting). About 12 intersections were assessed during the traffic study; it was even expanded to include major intersections that were known to have problems that are the access points into the city such as Alton & 5th, 41st and so on. For a 1,200 room hotel there would be as little as a 5 second delay at major intersections. Typically traffic will operate in the following manner: a 4 day conference will have middle to major traffic the first day and the last day. During the middle days you will have a lot of internalization due to people walking to and from the hotel site and the conventions providing shuttling that will reduce traffic significantly. Mr. Ferrer indicated the newly discussed footprint will help in spreading out the access points. Without a single access point you have less chances of queuing. Member Saul Gross indicated that he would like to see the Transportation Department flip the way they are looking at the issue. He indicated he would prefer the Department start from a “blank slate” and then tell the Committee what is the best way to mitigate traffic and then build the planning around that. Mr. Gross continued that while he would like to see the hotel be smaller, what the public indicated in the survey is that traffic mitigation is the most important thing they are interested in. Mr. Gross would like to see Transportation organize the queuing and the access from a traffic mitigation point of view then build the planning around that and vice versa. Mayor’s Ad Hoc Blue Ribbon Steering Committee Page 4 of 5 on the Convention Center Hotel 2016/10/17 Meeting Minutes Josiel Ferrer Diaz stated that Transportation was involved in the creation of Rogelio’s plan and can now quantify the impacts on queueing given the access points. He also added that a lot of mitigation strategies have been implemented such as the Traffic monitoring and management program. Traffic during events, signal timing changes are made on the fly to make sure traffic is flowing appropriately the correlations can be make now based on the site. Member Saul Gross suggested that we should proceed from the most important point of mitigating traffic. Gross indicated he agreed that the best way to mitigate traffic is through the programming of the convention center but he stated that through the referendum the public didn’t understand this or just didn’t buy into it. He stated that physical, visual traffic mitigation is easier to understand and that is what he is advocating. He reiterated that he agrees with the concept that conventions will mitigate the traffic but he is concerned that the public won’t accept this or that won’t get this business and we will be stuck with a lot of recreational visitors and traffic will become a mess. Member Jorge Exposito believes that 60% is going to be a push whichever way you look at it. Certain neighborhoods are up and arms in terms of what addition traffic will occur. As it stands right now, we know that a lot of city employees and city property management traffic is cutting through the single family neighborhoods. Traffic mitigations needs to include what is going to be done to avoid the cut through traffic. With today’s technologies and the availability of smart phones, people can look for cut through to avoid traffic. Unfortunately, the cut through becomes the major routes; like Meridian, Prairie Palm view, and 17th street. Mr. Exposito would like the cut through to be included as part of the traffic view to avoid pushbacks from the surrounding neighborhood and they will need to be on board in order to get to the 60%. Josiel Ferrer stated this can be looked at from a planning and traffic planning perspective and stated that we can take a look at mitigation, queueing, and what routing can be taken to avoid cut through traffic and any other issues that may occur. Chair Ricky Arriola would like the committee and the voters to know what can be expected in an 800 room hotel and what additional traffic that would cause. Member Paul Freeman indicated that information that addresses the publics concerns is presented including what would happen when there wasn’t a convention going on, and how the hotel would impact the area at key locations. Discussion continued on traffic mitigation including information the members thought the public was really concerned about how the hotel will impact traffic and not just the statistics currently presented. 4. PUBLIC INPUT There was no public input at this time. 5. GENERAL PANEL DISCUSSION Mayor’s Ad Hoc Blue Ribbon Steering Committee Page 5 of 5 on the Convention Center Hotel 2016/10/17 Meeting Minutes Chair Ricky Arriola asked the committee what path regarding the Convention Center Hotel they would like to take. Member Debra Leibowitz stated she personally likes the plan of building the Fillmore while the existing one it still there and thought it had tremendous potential because it would mitigate a lot of problems in the public. Member Debra Leibowitz believes it needs 800 rooms in order to accomplish anything. A traffic plan needs to be created that will prove to people how traffic will really be mitigated. Chair Arriola and Member Saul Gross agreed with Member Debra Leibowitz statement. Commissioner Kristen Rosen Gonzalez agreed with the comments made by Dirk DeSouza and Laura Quinlan on July 11th meeting regarding tearing down the Jackie Gleason Theatre. Commissioner Kristen Rosen Gonzalez believes that you cannot get to the 60% majority if the Jackie Gleason Theatre is torn down and the traffic won’t be mitigated until all the stop lights are retimed. Commissioner Kristen Rosen Gonzalez would like to include Dirk DeSouza and Laura Quinlan in the process and Member Saul Gross agreed. Discussion continued on traffic mitigation. 6. ADJOURN The meeting was adjourned at 7:45 p.m. Mayor’s Ad Hoc Blue Ribbon Steering Committee on the Convention Center Hotel 2016/11/16 Meeting Minutes Page 1 of 5 Mayor’s Ad Hoc Blue Ribbon Steering Committee on the Convention Center Hotel 6:00 p.m., Wednesday, November 16, 2016 City Commission Chambers, City Hall MEETING MINUTES In attendance: Commissioner Ricky Arriola, Chair Commissioner Kristen Rosen Gonzalez, Vice Chair Member Jorge Exposito Member Saul Gross Member Paul Freedman Member Debra Leibowitz Jeff Oris, Administration Liaison Also in attendance: Roland Aedo, Chief Marketing Officer and Executive Vice President – GMBCVB Jose Gonzalez, Transportation Department Director Josiel Ferrer, Transportation Manager Ricky Arriola opened the meeting at 6:21 p.m. and welcomed all in attendance. 1. ROLL CALL 2. DISCUSSION: HOTEL NEEDS ASSESSMENT SCOPE OF WORK – Rolando Aedo, Greater Miami and the Beaches Convention and Visitors Bureau Rolando Aedo stated in response to the Committee’s request for an updated hotel needs assessment that the GMBCVB has been working with CSL (Conventions, Sports & Leisure) who are recognized as experts in convention center hotel redevelopment and headquarter hotels. Mr. Aedo stated that he has a scope of work ready to go, which will be done at the GMCVB’s expense, to update the hotel needs assessment. He added that a needs assessment was done years ago with small updates since then but that it was time to do a full update. The study will include surveying meeting planners, an overview of current customer hotel needs, potential customer needs, comparable and competitive market data analysis also well as hotel sizing and programming recommendations. The assessment can be completed in no more than 6 to 8 weeks if not sooner. Vice Chair Kristen Rosen Gonzalez expressed that it would be interesting to see an updated study. She further advocated for a 3rd party independent study in addition to that being done by the GMCVB. She further stated that during the campaign, the GMCVB really wanted a Convention Center Hotel and cited the study several times. The GMCVB Mayor’s Ad Hoc Blue Ribbon Steering Committee on the Convention Center Hotel 2016/11/16 Meeting Minutes Page 2 of 5 and another company can do a study and then they can be compared afterward as to what size hotel is needed. Chair Ricky Arriola indicated he was not opposed to the suggestion but that the GMBCVB is an independent third party and they subcontracted out to another independent contractor who evaluates and tells us what our needs are. Rolando Aedo stated that CSL has done work for other entities in the community including directly working for the city. In terms of independence, the GMBCVB sees itself as a facilitator in this process with CSL essentially working for the Committee. in the past and the GMBCVB would facilitate the process. CSL is nationally renown and they have existing relationships with meeting planners, the type of meeting planners that we want to bring the high value conventions to this. He further stated part of the process is interviewing and re interviewing meeting planners that they have spoken to over the years. The GMCVB’s M.O. has always been to be open and transparent but due to the concerns of others, adjustments can be made to the process to make it even more transparent. Chair Ricky Arriola stated that at some point an RFP will be issued to the development community and that this would be the ultimate arbiter of demand. If they don’t think the demand is there, they won’t respond to the RFP. Member Saul Gross indicated he understands that the use of the work “reaffirm” indicates knowing the outcome of the study. He further indicated he has respect for CSL and for the GMCVB but that what shouldn’t happen is the bureau shepherding the study to result in a particular outcome. He felt that if the Committee can shepherding the study and take ownership then it would have more independence. He believed that it would help the process if it was not seen as the GMCVB is cheerleading for a particular outcome since they help book the convention center and have, for years, expressed support for a convention center hotel. Member Gross further stated the effect of the Miami Hotel and Convention Center, and other hotels that have come on line, as well as the enhancements to the convention center itself. He indicated that people perceived a convention center hotel to be a “leg in the stool” for making the convention center successful. He also would like to know the effect of enhancements to the facility itself and whether this is enough to increase bookings, and would like to see a review of a situation where there were two hotel facilities, not necessarily on the same site. Mr. Aedo indicated all of these requests could be added into a scope of work for the study. Vice Chair Rosen Gonzalez made the following motion: That the Committee take an item to the Commission to have a 3rd party independent study. Mayor’s Ad Hoc Blue Ribbon Steering Committee on the Convention Center Hotel 2016/11/16 Meeting Minutes Page 3 of 5 Member Gross clarified that the GMCVB is offering to do a $40-50,000 study done. Chair Arriola summarized the Vice-Chair’s concern that if the GMCVB, whose job is to promote tourism, is possibly biased but if the City contracted with another entity to do the study that it would be more transparent. Vice Chair Rosen Gonzalez asked if the GMCVB would pay for a study the City contracts to be done. Mr. Aedo indicated that would be problematic since the GMCVB has a long relationship with CSL who has significant experience in doing this kind of study. He further reiterated that CSL, at the Bureau’s expense, could work directly with the Committee and the Bureau would take a back-seat to the study so that they would support the process not bias it. Vice-Chair Rosen Gonzalez indicated she would like if Jeff Oris could come forward with several firms that could do the work and then we could proceed from there. Member Jorge Exposito indicated one of the things he believed one of the things the Chair wanted the Committee to do at its inception was to do was to set a timeline for the work. He felt things need to move forward and reiterated that Mr. Aedo said this study would take 6-8 weeks to complete. This would put the Committee into January or February. He believes Commissioner Rosen Gonzalez’s concern have validity but that if the Committee could work the scope of work to make sure that it addressed all of the new issues such as size of hotel, accessibility to room blocks. He then acknowledged the RFP would be the determiner of the validity. He further expressed concerns about other hotels in the market operating as convention center hotels but pricing their rooms to a point that the convention goers could not afford them. In response to concern from Vice Chair Rosen Gonzalez over the need for a hotel, Mr. Aedo indicated the GMCVB surveyed meeting planners and asked about the issues of concern related to the convention center. He further indicated that 90% of the responses were having a convention center hotel. Chair Arriola indicated he was sensitive to the timeline on this item and again stated that ultimately the development community would not respond to an RFP if the study is not realistic. Member Gross suggested a preliminary report be submitted to the Committee for review rather than the bureau and that it’s important who gets the raw data. He compared this to the FIU survey process and indicated this with some other possible protections would maintain the process integrity. Mr. Aedo suggested bringing in the person from CSL who would be doing the study to work directly with the Committee to insure the right data was to be collected and presented. The Committee indicated that it would like a written scope to be di stributed for feedback from the Committee. Mr. Aedo clarified feedback from the Committee would be given to Mr. Oris and information would be given as to whether CSL would go ahead or wait and come back to the Committee to finalize a scope. Chair Arriola indicated it was preferable for information to go to Jeff and to get CSL going right away to minimize delay. (NOTE: There was no additional action taken on Vice Chair Rosen Gonzalez’s motion) Mayor’s Ad Hoc Blue Ribbon Steering Committee on the Convention Center Hotel 2016/11/16 Meeting Minutes Page 4 of 5 3. PRESENTATION AND DISCUSSION: TRAFFIC MITIGATION IN THE CONVENTION CENTER HOTEL AREA –Jose Gonzalez, Transportation Director Josiel Ferrer of the City’s Transportation Department presented traffic mitigation on the convention center hotel area. Mr. Ferrer stated that based on site conditions, there are three primary accesses to the study area for the Convention Center Hotel, they are Julia Turtle Causeway, McArthur Causeway and Collins Avenue/ Indian Creek Drive. There are also six primary corridors for these accesses. There corridors are Alton Hotel, Washington Avenue, 5th Street, Dade Boulevard, Collins Avenue/ Indian Creek Drive, North Michigan Avenue and 17th Street. The site and design analysis was based on hotel size and access as well as network analysis. During peak hours (of traffic; 5:00pm – 6:00pm), at 75% occupancy, an 800 room hotel is comprised of 261 (which is 2.8% increase of all area trips) vehicular trips and a 1000 room hotel is comprised of 326 vehicular trips (which is 3.5% increase of all area trips). Based on an assumed 75% occupancy, 38% of will be transient, 34% will be In-house group and 28% will be Citywide Conventions. Accesses for the hotel include: valet that will serve the Filmore, an Uber/Lyft and Taxi stand along 17th Street and Convention Center Drive, as well as self-parking. Additional accesses have a direct effect in the vicinity of the city. In a City like Miami Beach with limited accesses, the effect of additional entrances to the site will be negligible to the network. Suggested improvements include special optimized traffic signal patterns and timings. On Alton Road and 17th Street. The study suggested to convert Northbound shared through/ right to exclusive right turn lane, add exclusive 58 right turn lane and add an additional left turn lane to provide 58 dual left turns lanes. On Alton Road and N. Michigan Avenue the study suggested to improve right turn radius (free flow lane) as well as implement dual 58 left turn. On Alton Road and 5th Street, the study suggested the improve 58 free right turn signature. The implementation of Traffic Management Technologies to respond to congestions in real-time, working with Conventions and Conference to ensure that Airport Shuttles are provided and improving pedestrian way finding to ensure that those patrons who bring cars do not have the need to use it in internal trips were also suggested based on the study. A Qualitative assessment of traffic impacts related to consumer shows and conventions indicated state that Consumer shows are open to the public, most of the attendees are locals who drive to the Miami Beach Convention Center and park in the area and parking impacts every day of event. High-end trade shows and conventions will be events open only by invitation, attendees will arrive by bus, rental car or taxi, with the highest traffic impacts will be on event start and event end day. In 2014, the Miami Beach Convention Center booked 55 consumer/ trade shows and 5 conventions. At a consumer show, if there are 547,500 attendees over 89 days (this is 6,152 attendees per day on average), the daily trips will be 3,076 (based in 2 persons per car given that not all consumer shows are Mayor’s Ad Hoc Blue Ribbon Steering Committee on the Convention Center Hotel 2016/11/16 Meeting Minutes Page 5 of 5 family oriented). There will be a total of 12,304 vehicles over a course of 4 days. At a convention, if there are 24,185 attendees over 5 events (an average of 4,800 attendees per day), there will be an average of 435 vehicles during peak hours (over 3 hours) either arriving or departing (70% will be buses, 30% will be either car, Taxi, Uber, Lyft). There will be an average of 149 vehicles during peak hours (over 2 hours) on interim days (70% will be buses, 5% will be either car, 25% will be pedestrians). 4. PUBLIC INPUT There was no public input at this time. 5. GENERAL PANEL DISCUSSION There was no general panel discussion at this time. 6. ADJOURN The meeting was adjourned at 7:52 pm. Conventions, Sports & Leisure International 520 Nicollet Mall • Suite 440 • Minneapolis, MN 55402 • Telephone 612.294.2000 • Facsimile 612.294.2045 January 28, 2017 Members of the Ad Hoc Committee on the Convention Center Hotel 701 Brickell Avenue, Suite 2700 Miami, FL 33131 Dear Committee Members: I have prepared the attached scope of services designed to address project questions related to market- support for headquarter hotel development and the relative impact of the current Miami Beach Convention Center expansion/renovation project. Should demand for a headquarter hotel warrant, elements including room count, tower configuration, sellable event space and related issues will be addressed. Implications as to hotel pricing and room block agreements will also be evaluated. The research conducted will be thorough, providing a customer-based foundation to support future development parameters. We look forward to working with you on such an important project for the region. Please feel free to contact me any time at (612) 294-2001 or jkaatz@cslintl.com with any questions regarding this submittal. Sincerely, John T. Kaatz CSL International MBCC HEADQUARTER HOTEL PROGRAMMING SCOPE OF SERVICES MBCC Headquarter Hotel Needs, Sizing and Amenity Analysis Scope of Services Page 1 Research will provide a foundation for our recommendations as to whether a Miami Beach Convention Center (MBCC) headquarter hotel is necessary in order to support the current investment in MBCC expansion. If demand warrants, we will provide data 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. Study Kickoff and Initial Project Planning Task 2. Current Customer Hotel Need Research Task 3. Potential Customer Hotel Need Research Task 4. Comparable and Competitive Market Data Analysis Task 5. Local Hospitality Market Conditions Review Task 6. 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 members of the Mayor’s Blue Ribbon Panel - Ad Hoc Committee on the Convention Center Hotel (Committee), 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 assess the need for and impact of a new headquarter hotel. Customer research will be used to assess the event impact of the current MBCC expansion project, and separately of a new headquarter hotel. This will allow for assessment of relative impact for both expansion and headquarter hotel development. We will 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 MBCC business data as to lost conventions and tradeshows 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 PROGRAMMING SCOPE OF SERVICES MBCC Headquarter Hotel Needs, Sizing and Amenity Analysis Scope of Services Page 2 Event organizer survey results will be analyzed to provide summaries of the following data specific to the impact of the a MBCC renovation/expansion project and potential development of a new headquarter hotel: • impact on booking the MBCC as a result of the $500 million expansion/renovation investment; • 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. Working with the GMCVB, we will prepare a list of city-wide conventions that have considered but not booked the MBCC over the past three to five years. The impact on likelihood to book the MBCC based on (1) the current renovation/expansion project, and (2) a proposed headquarter hotel, will be assessed. We will also undertake some form of in-person or electronic focus group with key event planners in order to assess the impact of specific hotel sizing, siting and other aspects of the project. This more in-depth research will be important to gain insight into the more specific room count, program and siting elements. 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. • Square feet of convention center sellable space. • 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. • Number of convention and tradeshow events, subject to data availability. These data will allow us to place the MBCC product under various headquarter hotel development scenarios within the competitive landscape. Any 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. MBCC HEADQUARTER HOTEL PROGRAMMING SCOPE OF SERVICES MBCC Headquarter Hotel Needs, Sizing and Amenity Analysis Scope of Services Page 3 We will also present case studies for recently developed headquarter hotels in similar markets focusing on public and private funding components, hotel size and room count, average daily rate, occupancy and other factors. We will evaluate room block agreements in effect that protect room inventory in the headquarter hotel for use in attracting city-wide conventions and tradeshows. We will also develop an assessment of the mass transit options in key comparable and competitive markets, focusing on rail, BRT, bus, trolley and other transportation assets. We will interview destination marketing executives to assess the impact (positive and negative) of their existing modes of mass transit. Task 5. Local Hospitality Market Conditions Review Planning continues for a new downtown Miami convention and hotel facility. We will review sellable space, room inventory and other features of this project in terms of their impact on event activity at the MBCC. Other major projects in planning or under development will also be considered. We will work with the Committee, 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 Needs, Sizing and Programming Recommendations Based on the research summarized above, we will develop an assessment as to the need for a new MBCC headquarter hotel. Estimates of city-wide convention and tradeshow event potential will be developed, both for the current MBCC expansion, and for the proposed headquarter hotel. If demand warrants, we will develop recommendations for the various sizing and program elements for the hotel. Various scenarios will be 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 hotel sizing analysis will include scenarios that involve a bifurcated development approach involving a 400 to 500 room property attached to the MBCC, in combination with a separate property of similar size in a beach-front location. The comparative performance of this scenario with respect to a traditional large headquarter hotel scenario will be evaluated. We will also evaluate conditions that exist with respect to protecting headquarter hotel room inventory for use in attracting city-wide events. The impact of securing various types of room block agreements that allow the GMCVB to access headquarter hotel rooms at marketable room rates for out-years in order to generate city-wide events will be assessed. A draft report will be delivered to the Mayors Blue Ribbon Panel - Ad Hoc Committee on the Convention Center Hotel. Based on their review and comment, a final report will be developed. The 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. MBCC HEADQUARTER HOTEL PROGRAMMING SCOPE OF SERVICES MBCC Headquarter Hotel Needs, Sizing and Amenity Analysis Scope of Services Page 4 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 $49,000. 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.