RDA Presentation1
Miami Beach Convention Center Hotel
RDA Project Update – March 2024
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Project Summary
Summary of Facilities and Amenities
800 guestrooms, 48 suitesGuestrooms
965,824 gross sq. ft.Gross Building Area
108,963 GSF interior spaces
10,000 GSF outdoor spaces
Meeting / Conference /
Pre-Function Space
•Signature Restaurant
•Lobby Lounge & Bar
•Coffee Bar
•3 Meal Restaurant
•Pool Bar
Food & Beverage (5
outlets)
•2 Pools
•Fitness Center
•Marketplace Grab-and-Go
•Lounge
Amenities &
Recreational Facilities
17,000 GSFGround Floor Retail
320 - Stacked, on propertyParking Spaces
Connection to Convention CenterPedestrian Bridge
MIAMI BEACH CONVENTION CENTER HOTEL
1701 Convention Center Drive, Miami Beach, FL 33139
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Project Milestones
Shovel Ready Job
The Sponsor Team has invested over $25 million to date.
Early Work
Demolition of Fillmore Rehearsal Theatre and Fillmore back-of-house renovation is complete - Fully
operational since October 2023
Installation of new FPL ductbank is complete
New Storm Culvert installed
Tie-ins and demolition of existing FPL ductbank crossing in progress and to be completed March 2024
Demolition of large storm crossing in progress and to be completed March 2024
Hotel
Construction Documents 100% complete after coordinating a design team of over 30 consultants,
including architects and engineers
Foundation Permit Obtained July 2023
Vertical Permit Application submitted July 2023 and issuance expected imminently
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Project Budget Increase
The Project’s budget has increased 63% due to development costs and interest rates.
RFP - 2018 Current Variance
Description $ Total $ Total $ Amount % Change
Hard Costs $263,690,006 $450,898,035 $187,208,029 71%
Soft Costs $73,393,446 $83,356,401 $9,962,955 14%
Pre - Opening / Marketing $7,000,000 $7,600,000 $600,000 9%
Art in Public Places $3,205,078 $5,593,808 $2,388,730 75%
Interest Reserve $12,259,348 $38,124,784 $25,865,436 211%
Contingency $2,559,881 $3,800,225 $1,240,344 48%
Total Development Budget $362,107,759 $589,373,253 $227,265,494 63%
Total Per Hotel Room $452,635 $736,717 $284,082
RFP - 2018 Current Variance
Description $ Total $ Total $ Amount % Change
Interest Rate 3.50% 10.00% N/A 186%
Annual Interest Cost $9,000,000 $40,000,000 $31,000,000 344%
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Financing Plan
Developer has maximized $515 million in private financing,
resulting in a $75 million shortfall.
Sources of Capital $ Amount % of Total
Construction Loan $400,000,000 67.9%
Equity $114,373,000 19.4%
Total Private Investment $514,373,000 87.3%
Shortfall / Grant Required $75,000,000 12.7%
Total Project Cost $589,373,000 100.0%
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Public Benefit
The hotel is projected to pay the RDA, City, and County $75 Million
over the first 3 years of operations and $690 Million over 30 years.
Sources: MB Mixed Use Investment LLC, IMPLAN, GAI Consultants Inc.’, Miami Economic Associates, Inc.
*Numbers are projections
Hotel Generated Public Payments Over 30 Years Over 99 Years
Lease Payments to the City $146 Million $1,107 Million
Payments to the RDA (through 2044) $70 Million $70 Million
Other Payments to the City $275 Million $2,178 Million
Other Payments to the County $198 Million $1,873 Million
Total Public Payments $690 Million $5,228 Million
Job Creation Construction Recurring
Direct 2,075 724
Indirect 577 107
Induced 787 118
Total Job Creation 3,439 949
Fiscal Benefits Construction Recurring
Labor Income All Workers $183 Million $53 Million
Gross Domestic Product (Value Added) $231 Million $99 Million
Total $414 Million $153 Million
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Annual Local Public Revenue Stream
Public Revenue Stream Initial Annual Contribution Over 30 Years Over 99 Years
RDA $4 Million $70 Million $70 Million
City
Lease Payments $3 Million $146 Million $1,107 Million
Voluntary 1% Surcharge $1 Million $38 Million $288 Million
Resort Tax (Hotel 4%, F&B 2%) $6 Million $207 Million $1,572 Million
CDT Allocation (thru 2044) $2 Million $26 Million $26 Million
Property Taxes $0 Million $42 Million $581 Million
City Total $11 Million $459 Million $3,573 Million
County
Convention Devl. Tax (3%) $2 Million $101 Million $935 Million
Local Option Sales Tax (1%) $2 Million $61 Million $466 Million
Property Taxes $0 Million $36 Million $472 Million
County Total $4 Million $198 Million $1,873 Million
Schools (Property Tax) $3 Million $103 Million $780 Million
Other Property $0 Million $12 Million $94 Million
TOTAL LOCAL $22 Million $843 Million $6,390 Million
STATE SALES TAX $10 Million $369 Million $2,794 Million
Grand Total - Public Revenue Stream $32 Million $1,212 Million $9,184 Million
*Numbers are projections
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1) Become Competitive – All major convention cities have an adjacent headquarter hotel.
2) Meet Client Needs – CMCVB target clients demand adjacent hotels to their events.
3) Increased Convention Center Bookings– Case studies demonstrate a 42% average increase in citywide event room
nights.
4) Area Hotel Impact – In cities where new convention hotels have been developed, hotel room night demand exceeded
the increase in room night supply within 1 to 3 years.
5) Room Rate Driver – More conventions booked means more high-rate periods, which means more hotel revenues,
equating to more tax revenues that support City services.
6) Contractual Room Block – Hotel to commit 80% of its rooms to citywide events that are to occur at least 30 months in
the future and, among other items, include price protection to ensure a fair rate is protected.
7) Voluntary Surcharge – A voluntary surcharge of 1% of Rooms Revenue will be collected from the guests and will be
dedicated to marketing of the hotel and Convention Center.
8) Increased Dedicated County Funding– Miami-Dade County is contractually obligated to increase its Convention
Development Tax funding to the City of Miami Beach by up to $1.5 Million annually through 2044 –only if a convention
hotel is developed.
9) Art in Public Places – The hotel will contribute $5.6 Million of the budget to the City’s Art in Public Places fund, to be
used for Art in Public Places projects in the City.
Benefits to the Convention Center District
There are various additional benefits the Hotel project will bring to the
Convention Center District.
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Miami Beach Convention Center Hotel
RDA Project Update – March 2024