R7A, R7B, RDA1 and RDA2_MBCC Hotel Miami Beach Presentation 10-30-241
Miami Beach Convention Center Hotel
RDA Project Update –October 2024
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Lost Opportunity
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•$141.9 million in direct new spending by out-of-town attendees and event producer clients annually.
•This direct spending is projected to be generated by booking 13 new P1 top tier citywide conventions,
exhibitions and corporate meetings annually, once the HQ hotel opens in 2027.
•This activity is projected to draw a total of 40,391 out-of-town attendees that will stay overnight along
with an additional 16,156 accompanying family and friend visitors.
•Important segments of this spending will benefit the Lincoln Road restaurant and shopping area, as well
as businesses around the Miami Beach Convention Center. It is projected that the new hotel will help
generate a total of $14.5 million in annual new spending by out-of-town event attendees and their
accompanying family/friends at businesses in and around the Lincoln Road area.
•Associations, event management groups and corporations that will run the projected 13 new P1 citywide
event bookings annually will spend an estimated $13 million in MBCC and other local service providers.
•This report also projects tax receipts to be collected by both Miami-Dade County and the City of Miami
Beach. The various tax rates in total are estimated to amount to generating $8.4 million annually
Projections -Hotel Booking Opportunities
*per GMCVB report August 2024
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Economic Generator
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
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Sources and Uses
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A.Increased project cost from $325M to $589M
B.Timing of pandemic and impact of financing market
C.Increase in construction costs
D.Increase in interest rates.
RDA Grant Need
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•RDA will make grant payments over five years, which will be used to
finance a $75MM grant for the public areas of the hotel
•Accompanying Public Benefits:
o Annual Participation Fee starting at $500,000 in year 6,
with 3% annual increases for 50 years
o One-time additional transfer fee of 2% of gross proceeds
less outstanding debt
o In-Kind Public Benefits per the schedule
•Grant Agreement and Interlocal Agreement approved by County
Commission on October 16th
MBCC Hotel RDA Grant Term Sheet -Summary
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Project SummaryCo
MIAMI BEACH CONVENTION CENTER HOTEL
1701 Convention Center Drive, Miami Beach, FL 33139
Timeline
October 30, 2024 RDA Grant Approval
January 31, 2025 Construction Loan Closing/
Lease Possession
February 14, 2025 Begin Test Piles
March 14, 2025 Begin Foundation
May 12, 2026 Building Top Out
October 18, 2027 Hotel Opening
August 6, 2027 Hotel TCO
August 12, 2026 Building A/C
June 22, 2026 Permanent Power
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Miami Beach Convention Center Hotel
RDA Project Update –October 2024