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Home My WebLink AboutR-02-0361J-02-289 3/26/02 RESOLUTION NO. 02— 3 61 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENTS, AUTHORIZING THE CITY MANAGER TO PAY TO THE DOWNTOWN DEVELOPMENT AUTHORITY AN AMOUNT NOT TO EXCEED $21,750, REPRESENTING ONE-FOURTH THE COST OF A STUDY TO ANALYZE THE FEASIBILITY OF DEVELOPING A DOWNTOWN CONVENTION CENTER AND POTENTIAL USES FOR THE COCONUT GROVE EXPO CENTER SITE, AS MORE PARTICULARLY SET FORTH IN THE ATTACHMENT; ALLOCATING FUNDS FROM NON -DEPARTMENTAL ACCOUNT CODE NO. 001000.921002.6.270. WHEREAS, the Miami Downtown Development Authority ("DDA") is in the process of gathering information regarding the need for a downtown Miami convention center; and WHEREAS, the City of Miami wishes to assist the DDA in analyzing the feasibility of a downtown venue to host entertainment, conferences, conventions, and trade shows and to analyze potential uses for the Coconut Grove Expo Center; and WHEREAS, the DDA has requested a scope of services for this study from CSL International at a cost of $87,000, to be paid for W ii vl"i'E X01 l* .J N it W j +� CITY CO.i0 ME 1-140 6V APT l 1 2002 Ra -solution IA. 02- 361 by allocations of $21,750 each from the City of Miami, DDA, Miami Sports and Exhibition Authority and Miami Parking Authority; and WHEREAS, funds for the study are available from Non -Department Account Code No. 001000.921002.6.270; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. The City Manager is authorized to pay to the Downtown Development Authority an amount not to exceed $21,750, representing one-fourth the cost of a study to analyze the feasibility of developing a downtown convention center and potential uses for the coconut grove expo center site, as more particularly set forth in the attachments, with funds allocated from Non -Departmental Account Code No. 001000.921002.6.270. Section 3. This Resolution shall become effective immediately upon its adoption and signature of the Mayor!'. ii If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. Page 2 of 3 02- 361 PASSED AND ADOPTED this 11th day of April , 2002. ATTEST: A Zwz� 16 0 MANUEL A. DIAZ, MA ISCILLA A. THOMPSON CITY CLERK ITY ATTORNEY W6129:tr:LB AND CORRECTNESS Page 3 of 3 02- 361 03/21/2002 10:15 3053722919 CITY MIA PUBLIC FAC PAGE 02/11 p`a ,� e CiIY HWGERS OFFICE DOWNTOWN DEVELOF 4ENT Au'r iORITV First Union Financial Car .r 300 S. Bisca r•e Souleve I solt? ujia %an. Florida 33191 Tet f305)i79.6F75 Fax NQ3)37t-2123 E•tdav:dda�thctamlami.r m MEMORANDUM To: Mr. Carlos Gimenez Manag.r, City of Miami From: Patrici,,. Allen Executive Dir tor, 41 Date. February 5, 2002 RE: DOM-114TOWN CONVENTION CENTER STUDY Pursuant to t ie Jar L ary 17th meeting at Commissior er Winton's office, regarding a potential dov ntown convention facility, enclosed please find the scope of services to be perfoi ,ned 1,,)/ CS&L. The total cost for the study including the Coconut Grove Expo :;enter component is $87,000.00 Attached is � -i invoice representing an equal share of the total cost to be borne by the City of N iami, DDA, MSEA and MPA.- In addition please be aware that CS&L has agreed o begin their work based upon receipt of a letter of commitment. Alonso Men, ,ndez, chief of Staff of DDA, will be co-ordinating the receipt of these letters. PA/am Cc.: The 1 morab a Manuel Diaz Mayo , City cf Miami Chair nan, NI SEA The I- oncrable Johnny Winton Comr lissionor City of Miami Chain -ian, DDA Mr. RI drigo *Trujillo, Chair nan, Hotel & Venues Committee, DDA Ms. C Kristina Abrams City c Miarr-ii 02 - 36:x. 03/21/2002 19:15 3053722913 CITY MIA PUBLIC FAC PAGE 03/11 .�1" RN iw++.:vi'.amc.urncrusuw r � DOWNTOWNDEVELOPM) 'IT AUTH011TY First Union Financial Cente 200 s. Biscayne Eouleven Suite 1818 Miami, Florida 33131 Tet: (305) 579.6675 Fax- (305) 371.2423 E -Mail: ddagaddamiaml,co r INVOICE What. Downtown Convention Center Study Cost: X87,000 (To be shared in four equal parts b!tween the City of Miami, Miami Do, vntown Development Authority ")D:DA". Miami Sports and. Exposition Authority "MSEA", and the Miami Parking Authority "MPA") Invoice Arnow it: $2,.,750.00 Make check payal e to Mi imi Downtown Development Authority Please mai your check and/or letter of come -fitment to: Mi Alonsc Menendez Ati (: Dowittown Convention Center Study DI A Miar.ii 20+ S. Biscayne Blvd., #1818 Mi l nJ, FL, 33131 02- 361 03/21/2002 18:15 January 22, 2002 3053722919 Ms. Patricia Allet Executive Direct( r Downtown Devel .,ptxtent Authority First Union Finan, :dal Cor ter 200 S. Biscayne 1 oulevai d, Suite 1313 Miami, Florida 3 131 Dear Ms. Allen: CITY MIA PUBLIC FAC PAGE 04/11 Based on our rec, .tit meeting, I have prepared the following; scope of services and fee estimate to assist the City of 14iami in further analyzing the development of a downtown Miami convention center. The ana psis we uld build on the recent market -m ide study prepared for the Greater Miami Conventi-n and Visitors Bureau which addressed the broad implications of facility development thrc ighout: he Greater Miami and the Beaches area. The study to be conducted for the City would ecus conk the financial, economic, programming, visitor infrastructure needs, potential sites, ani fundiir g alternatives specific to a downtown facility. In addition, HOK Venue will provide arch ;ectuml and site analysis services as described below. -Scope of Services — CSL Initernational The specific sery ,es to ba performed as part of this study include the following: Task 1. / .ialysis of the Downtown Miami Hotel and Visitor Industry Resources Task 2. / .aalysis of Competitive South Florida Convention Facilities Task 3. F ive-Year Event and Attendee Analysis Task 4. 1 Lcility c ize and Configuration Analysis Task 5. 1 inancia.l and Economic Impact Analysis Task 6. I evelopr.lent of a Critical Path Timeline Task 7. 1 ending; Dption Analysis Task 8. "� ammar} of Potential Uses for Coconut Grove Site (Optional) The specific scot :: associated with each of these tasks is summarized below. 02- 361 03/21/2002 18:15 3053722919 CITY MIA PUBLIC FAC PAGE 05/11 Ms. Patricia Allen Page 2 of 8 Task 1. Analysis *f the Downtown Miami Hotel and Visitor Industry Resources The convention, :onfere. ice and trade show industry ha:. grown increasingly competitive, particularly in Sot th Floriia. Communities are increasingly planning state-of-the-art facilities in areas of the city :hat off r entertainment and visitor amenities, along with high quality hotel inventory. This , .an hav,: significant implications on the future development of a downtown Miami center. As part of this ta: Ic, we will analyze the current conditions and future plans for the downtown hotel and entertai ment ricility package, We will incorporai:e the significant planning currently underway by the Dowm awn Development Authority to increase the entertainment industry presence in the c awnto-inn. We will compare the current and potential future conditions in downtown Miami with competitive venues in South Florida. In addition, we will summarize how other market around the country have successfully blended a center with the surrounding hotel and entettait ment fa„ility packages. The analysis cont acted itthis task will provide important data for evaluating the strengths and weaknesses of po ential s.tes for the downtown center. In addition, this analysis will be useful for the City and d :: DDA in their planning efforts to coordi:ir.te downtown entertainment activity development. Task 2. Analysis of Corr petitive South Florida Convention Facilities As noted in the rc :ently campleted convention planning study, there are several venues in South Florida that may ignific;,-ntly impact the success of a downtown Miami center. These include the new West Pal I Beach Center, Broward County, the Miami Beach Center as well as several large privately, o, .-tied hctel facilities. ,As part of this task, we will provide a more detailed evaluation of var aus key aspects of several of these venues to better gauge how a downtown Miami center wo old compete. It is important to note that drawing business from Miami area venues may not s+ rve to i icrease the community -wide impact of convention facilities. However, drawing business ' om other South Florida venues would increase the room night generation and economic activity 'or the ,:ntire Miami and Beaches area. For the recently c .,mpleted market -wide study, we analyzed n detail the Miami Beach Center as well as local priv: Lely ovvtied centers. As part of this task, we will focus on the facilities outside the metropolitan E rea to re search characteristics such as: • Event levf Is, • Room nig. �t genes ition, • Sources o: event activity, • Hotel root i. inventory, and • Other mar :et and :acility sirengths and weaknesses. 02- 361 03/21/2002 18:15 3053722919 CITY MIA PUBLIC FAC PAGE 05/11 Ms. Patricia Aller Page 3 of 8 This analysis, alot ;9 with data from Task 1, will assist us in determining how a downtown Miami center would corr, -)ete in he convention, conference and trade show market against other South Florida venues. Task 3. Five-Yc r Evens and Attendee Analysis Based on the da a prepared in the recently completed market -wide study, the analysis of competitive venin s, and the study of downtown hotel and entertainment facility inventory, we will prepare a f i -year r orecast, of event and attendee levels for a downtown Miami center. These event estirr rtes will incorporate additional market rese=arch to assess the potential impacts of the events of 5 ,pteml:iEz 11 on the short and long-term demand for convention fac=ility space within the industr Thi:; is an important analysis step as the primary research conduc=ted for the study of Greater D liami ar d the Beaches area facilities was completed before this date. Specific data to be prepar(d during this task will include: • event leve by market segment; • attendance and length of event data; • exhibit, m, eting sued banquet space requirements by e,rent type; • hotel roorr night g meration; • seasonalit• data; a td • other such rharacti:ristics. The results of thi: task vr11 include a presentation of the demand profile for a downtown Miami center within the .onvent on, conference and tradeshow industry. We will use this data to help set a timeframe u oder wh ch a downtown center could generate the level of business that would sufficiently justif; the si,giificant investment required for facility construction, Future estimates of facility progra, :i, financial performance and economic unpacts will be based in part on this data. Task 4. Facility ize arnc. Configuration Validation In the recently cc rnpletcc; market -wide study, we identifit:d a target range of exhibit space of between 100,000 ind 150 000 square feet for a downtown center. The analysis completed in the previous -tasks wil serve U define the event potential and ni;cessary success characteristics of the downtown center over th! next five to 10 years The purpose of this task is to use the data prepared in the p ;:vious casks to define and expand on thi; :arget program, providing; estimates of supportable sp, ;;e including: • exhibition ;.pace; • meeting sl rice; • banquet sl lce; 02- 361 03/21/2002 18:15 3053722919 CITY MIA PUBLIC FAC PAGE 07/11 Ms. Patricia Allen Page 4 of 8 • fixed seati ig space; • technologi ,al char. Lcteristics, • space coni guratio t; and • linkages ,% th exist ing space. This data will be used to assess the optimal levels of spare, sizing characteristics and other facility features re luired t) capture the event potential unique to a downtown Miami center. Task S. Financia and1...-onornic Impact Analysis In the recently cc apleted market -wide study, we identified broad ranges of financial operating performance and :otentia. economic impacts for various facilities in the Greater Miami and the Beaches area. T1 purpose of this task is to use the analysis prepared in the previous tasks to further define the .,otential financial performance and economic impacts of a downtown center. We will develor a coax puter-based model incorporatin;3 comparable facility data and the estimated levels o'event itilization and attendance derived from previous tasks. The model will allow for extens (ie seruitivity analysis relative to facility size, location, event levels and development timi ig. Re-enues including rental, food service, telecommunication, audiovisual, other contractual : (trvices. and other such sources will be estimated. Expenses including salaries, utilities, maintena ice, sq,plies, insurance and others will be estimated, Revenues and expenses will be prepared f �r a five-year analysis period. The operation of , convor tion center attracts out-of-town event delegates to the community. The non -local delegat s brought into the community by center operations represents the basis for added local econe rnic and fiscal impacts. As part of this to k, we mill also develop more d'etailed estimates of tots! ,incremental out-of- town delegates t( dowr.t,)wn Miami and the surrounding area generated as a result of center development. W: will teen apply appropriate per -delegate- -spending estimate, using IACVB data adjusted to 1 ►e lova area. The resulting delegate spending levels will be segmented by industry and appy !.d to ec3nomie impact multipliers. The multipliers, pecifii; to the Miami area and provided by leading input/output multiplier models, will be u:..d to (:;timate total economic output, earnings and employment generated as a result of center d( velopm=nt. From these economic impact variables, we will apply appropriate local, regional an , state,nkide tax rates to estimate the added tax revenue generated as a result of the project, Task 6. Develop iient of a Critical Path Timeline 02- 361 03/21/2002 19:15 3053722919 CITY MIA PUBLIC FAC PAGE 09/11 Ms. Patricia Allen Page S of 8 At this point in th study, we will have defined the suppoluble downtown center program, the event and attend ince potential for the program, the characteristics in the downtown area necessary to suppc it the center and other such critical features. The objective of t, is task: s to lay out the significant and specific steps that traditionally have to be undertaken in t project of this type, and to assess the potential timing for each. Project steps to be incorporated into thi., timeline process include: • Site analy; is and selection (a scope for preliminary research into this area is defined below); • Developm+ :nt of c(wntown entertainment amenities; • Project co: ; estimates; • Project fur Ging de ermination; • Determina ion of c.-nter operational structures; • Determine ;onstni ;tion process; • Communit ; appro-al process; • Project de., gn an,:i programming; • Bid proses i. • Pre-marke ing; anc. • Constructi in. Each of these and otherc- -itieal steps in the process will be clefined and set on a timeline so that the potential open rig date for the center can be assessed. Task 7. Funding Optioo Analysis The development ind opt ration of convention centers throughout the country typically involves a significant leve of put (ic funding. Communities are generally willing to provide for such funding given the -)otenti;al economic and tax impacts of tht: project. As part of this a talysis, we will identify and summarizer potential sources of funding for a downtown center The F.nalysis will focus on both financing mechanisms (type of bonds or certificates) and t to project revenue sources (hotel, sales, risstaurant, car rental and other such taxes) that could 1 used to fund potential center developmtmt. The various fund i7g meckanisms analyzed as part of this task will include general obligation bonds requiring 1 ie backing of the full faith and credit oi' the issuing entity, rcvenue bonds requiring a specii r revenue source or sources of revenue, and various other mechanisms. The type of mechanis �i selec,tsd can have a significant impact cn interest rate, debt service reserve funds and debt se rice co-erage ratios required to fund the project. 02- 361 03/21/2002 19:15 3053722919 CITY MIA PUBLIC FAC PAGE 09/11 Ms. Patricia Aller Page 6 of 8 Typically, fundin, ; for co tvention center development is ttead to the industries that benefit from center operations, The ;,utalysis will focus on numerous sources of revenue for project funding including taxes of hotel,, car rental, food and beverage sales, mixed drinks, taxi cabs and other such industries. )rder o." magnitude estimates of revenue potential from each viable revenue source will be pre eared and potential funding sources will be prioritized. As part of the analysis, we will also stuc Ir the p )tential for funding, sources within specific districts within the areas surrounding the c. enter. 'I he viability of various types of private sector participation will also be evaluated. This c iuld iri(lude naming rights, joint development options and up -front funding in exchange for vari, us cent!r service rights. Based on this ana ysis, wo will develop estimates of the antcunt of project funding supported by each source, and ;ompari: this with the annual debt service and operating cost associated with alternative develo :iment s :enarios. Task 8. Summary of Po �ential Uses for Coconut Grove ,site (Optional) As part of this t ask, we will identify potential non -convention uses for the Coconut Grove Convention Centt site. 11 pecifie analysis steps include: • Reviewinj past studies regarding potential re -use of the site. • Interviewi i.g key ocal real estate professionals to develop a set of development options that may r we prrate sector interest. • Interviewi i.g Coconut Grove area hotels and other major area establishments to assess their view as to p )tentially viable development alternatives. • Reviewing current and planned development at similar sites in the region. The objective of :,iis tai is not to prepare detailed market and financial projections related to various develops ;:nt opt ons on the site. Rather, a set of options that appear to have some prospect for succ ,ss wi.il be prepared, Additional detailed analysis of these options would be ., needed as the plat ning fo' the site continued. Scope of Services — HOK:'✓enue We will perform irelimirary site and master planning servic.-s regarding the future development of a downtown I tiami convention center. The services will focus on concepts and themes critical to success �al cent( r development including: • adequate 1 arcel si;:e and configuration, • compatibl : visitor industry surroundings, • access to E !cistin j; iote.l base, 02- 361 03/21/2002 19:15 3053722919 CITY MIA PUBLIC FAC PAGE 10/11 Ms. Patricia Aller.. Page 7 of 8 • potential t( spur ft ture visitor industry development, • road acces • parking av dlabilit. r, and • other such ;:haract+:ristics. The intent of tl is prel minary investigation is to quickly crystallize important industry characteristics wi h the City's thoughts regarding appropriate development of the convention center and its env, :ons to Terve as a guide for future planning and development efforts. Included in this i ivestig;adon will be an analysis of existing; conditions, creation of a series of alternative appro,, ;,hes to guide the City in evaluating futiir-�- development, and visioning ideas for the future of tl ; cent: i and a surrounding district expressed in diagrams and drawings. This effort will bF conducted in a series of on-site design workshops (cbarrettes). Workshop One will establish go., .s, fact;:, needs and existing concepts related to the center and surrounding district developm, at, and will include an analysis of existing physical conditions and constraints. Workshop Two i ill gen-.rate ideas and synthesize site and related issues for the center and surrounding distr �.t, and will include an iterative process for the ongoing development of preferred concept Deliverables fron this in-estigation will be contained in a booklet, 11 by 17 inch format, which will include the procee:c Ings from both charrettes as well as summary and organizational information, and elated :appendices. The intent of the booklet will be to establish a vision and direction for the tting a.rd design of the convention center and surrounding district that can be built upon in a aore c:c nventional master planning effort to include such details as design guidelines, sugg sted zoning and land use revisions, ind detailed design of proposed infrastructure iml roveme its. Professional Pees and Expenses The fees and expo uses foi the above outlined services are surnmarized as follows: CSI Internal onal (Task 1 —7;) CSL Interni onal (Task 8) HOK Venue Fees Expe i&'s $47,000 $8,000 $10,000 9;0 $17,000 $5,000 As noted above, Taal fee; for CSI'. services are shown with Task 8 (Summary of Potential Uses for Coconut Groi ;; Site; )resented separately. Fees and expenses will be billed and are payable on a monthly bw s. Shoald additional work be requested b.yond the scope of services detailed herein, professio gal fees will be billed on an hourly rate basis. Total professional fees for 02-- 361 03/21/2002 18:15 3053722919 CITY MIA PUBLIC FAC PAGE 11/11 Ms. Patricia Alley. Page 8of8 additional service i; will c epend on the number of hours required to complete the services and skill levels of the assigner t personnel. We appreciate th- opportznity to continue our services regarding a downtown Miami center. if you would like to discuss this letter, please contact John Keay at (763) 553-9700, ext. 205. Very truly yours, CSL International CSL Internationa, 02- 361 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO: The Honorable Mayor and Members of the City Commission City enezManager CA -1 3 DATE: APR. - 2;r;;c SUBJECT: Resolution Allocating Funds for Feasibility Study for the REFERENCES- Development of a Mid -Size Convention Center ENCLOSURES: FILE: Recommendation It is respectfully recommended the City Commission adopt the attached Resolution allocating funds in the amount of $21,000 to retain the services of Conventions, Sports & Leisure International ("CSL") to analyze the feasibility of developing a downtown Miami convention center and study potential uses of the Coconut Grove Expo Center. Background The analysis by CSL would build on the recent market -wide study prepared for the Greater Miami Convention and Visitors Bureau which addressed the broad implications of facility development throughout the Greater Miami and the Beaches. This study would focus on the financial, economic, programming, visitor infrastructure needs, potential sites, and funding alternatives specific for a mid-size downtown convention facility containing approximately 150,000 square feet of exhibition space. The DDA has requested a Scope of Services from CSL at a cost of $87,000 to be paid for by allocations of $21,750 each from the City of Miami, DDA, Miami Sports and Exhibition Authority and Miami Parking Authority. In recent years, the downtown inventory of hotels has increased significantly, particularly with the addition of very high quality hotels. Recent investments in hotel facilities support the viability of the downtown area as a visitor's destination. Given the significant increase in visitors to the area, the world-class natural attractions and a developing downtown hotel/visitor atmosphere, it is likely that the profile of the destination and the downtown area will continue to improve. There are several key challenges to developing, marketing, and operating a successful downtown Miami convention center. This study would enable the City to address these challenges and provide an environment in which a downtown center could eventually attract significant convention and trade show events. CSL advises that efforts to address these issues will likely require four to six years. The initiative to evaluate potential sites and land acquisition should begin as soon as possible to prevent viable and desirable sites from being lost as other market and development issues are addressed. r CAG KR/CPA/yp 02-- 361