Hotel Key Terms_7-17-18Miami Beach
Convention Center
Hotel
Special Commission
Meeting
July 17, 2018
KEY TERMS
•800 full-service rooms
•185 feet max height
•0.4 parking spaces per room
•Accepts site “AS IS”
•Funds all demolition,
development, Sky bridge
connector, and referendum costs
•No City funding for Hotel
•99-year lease term
2
•No gambling on site & Owner
cannot own gambling facility in
Miami-Dade County
•Room Block Guarantee
•80% of rooms 30 months and out,
18 –30 months, if available
•For up to 14 event days per month
•Price protection based on average
group rate
•60% November voter
referendum approval required
FINAL PROPOSAL COMPARISON
3
Initial
Proposal
Interim
Proposal Final Proposal
Percentage Rent
Rooms & Other Deptartments 2.5%2.5%2.5%
Food & Beverage Non-Union 2.5%2.5%2.5%
Food & Beverage Union 2.5%1.0%1.25%
Net Percentage 2.5%1.9%2.0%
Year 5 Lease Payment Amount $3.3 m $2.5 m $2.6 m
99-year Lease NPV @ 5%$ 80 m $62.2 m $64.8 m
Total City Lease, Surcharge and Tax Impact
Year 5 $11.0 m $10.3 m $10.4 m
NPV @ 5%$240 m $222 m $225 m