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HomeMy WebLinkAboutSubmittal-Michael Abati-Olympia Hotel Social Enterprise Proposal Presentation5732 - Submittal -Michael Abati-Olympia Submitted into the public Hotel Social Enterprise Proposal record for item(s) 131.5, On Presentation 7/11/19, City Clerk 1 G. 7 MO now - ____ New Urban International proposes a public/private venture with the City of Miami to convert the Olympia Tower into an independent boutique hotel whereby over 50% of net revenues are distributed to local charity organizations. CONFIDENTIALITY & DISCLAIMER THIS PRESENTATION CONTAINS SELECTED INFORMATION ABOUT NEW URBAN INTERNATIONAL ("NUI") AND ITS AFFILIATES. THIS PRESENTATION HAS BEEN PREPARED AND IS BEING FURNISHED SOLELY FOR INFORMATIONAL PURPOSES AND SOLELY FOR USE BY YOU IN PRELIMINARY DISCUSSIONS WITH NUI. THIS PRESENTATION CONTAINS PRELIMINARY INFORMATION ONLY, IS SUBJECT TO CHANGE AT ANY TIME AND IS NOT, AND SHOULD NOT BE ASSUMED TO BE, COMPLETE OR TO CONSTITUTE ALL THE INFORMATION NECESSARY TO ADEQUATELY MAKE A PARTNERSHIP DECISION. NO REPRESENTATION IS MADE AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION SET FORTH HEREIN. THE CONTENTS OF THIS PRESENTATION ARE NOT TO BE CONSTRUED AS LEGAL, REGULATORY, BUSINESS, ACCOUNTING OR TAX ADVICE. YOU SHOULD CONSULT YOUR OWN ATTORNEY, BUSINESS ADVISOR, ACCOUNTANT AND TAX ADVISOR AS TO LEGAL, REGULATORY, BUSINESS, ACCOUNTING AND TAX ADVICE. THIS PRESENTATION IS CONFIDENTIAL. ANY REPRODUCTION OR DISTRIBUTION OF THIS PRESENTATION, IN WHOLE OR IN PART, OR THE DISCLOSURE OF THE CONTENTS HEREOF, WITHOUT THE PRIOR WRITTEN CONSENT OF NUI, IS PROHIBITED. BY RETAINING THE PRESENTATION, YOU ACKNOWLEDGE AND REPRESENT TO NUI THAT YOU HAVE READ, UNDERSTOOD AND ACCEPT THE TERMS OF THIS PRESENTATION AND ACKNOWLEDGE AND AGREE THAT THE PRESENTATION IS CONFIDENTIAL, NON-PUBLIC AND/OR PROPRIETARY INFORMATION. YOU HEREBY AGREE TO RETURN THIS PRESENTATION TO NUI PROMPTLY UPON REQUEST. { Submitted into the public rr�.wj record for item(s) 131.5, on WIWI 7/11/19, City Clerk TABLE OF CONTENT PROJECT OVERVIEW Project Summary Project Location Repositioning Highlights Design Highlights LEASE PROPOSAL Lease Terms Structure Overview FINANCIALS Project Costs Hotel Operational Proforma Project Returns Preservation Fund Community Fund Submitted into the public record for item(s) D1.5, on 7/11/19, City Clerk mum ►�, Eesti_ �.- 'NW r:f l� ri1 7 New Urban International, LLC 11U1, WWW. NUINTL.COM NUI Submitted into the public record for P ROJ ECT S U MMA R Y item(s) 01.5, on 7/11/19. City Clerk Built in 1926, the Olympia Tower and Gusman Theatre is an irreplaceable piece of Miami's history that is currently in need of $15 million in repairs. New Urban International has created a short and long term plan that will ensure it's legacy for the next 100 years. New Urban International plans include a renovation of the theatre and a repositioning of the residential tower into an upper mid -scale independent boutique hotel. NUI will upgrade rooms, corridors, lobby, life safety systems, and ground floor retail within 12 - 24 months of acquisition with an estimated budget of $5 million. Upon stabilization, over 500 of the net profits will be disbursed to local non -profits that specialize in housing and food insecurities, special needs, and education within the City of Miami. New Urban International will also project manage the much needed exterior preservation. NUI's plan is to sell the existing development rights attached to the Olympia Theatre to establish a historic preservation fund. Construction time is estimated to take 18 months at a cost of $15 million. Any remaining funds will benefit future renovations to the Olympia and other historic assets within the City of Miami. itR `'.' Iwo �loopa Address: 174 E Flagler Street Miami, FL Lot Size: 21,477 Sq. Ft. Zoning: T6-80-0 Year Built: 1926 Tower Area: 74,582 Sq. Ft. Theatre 13,598 Sq. Ft. Area: Total Hotel 80 Suites: Average Unit 385 Sq. Ft. Size: Total Theatre 1,500 Seats: Total Event 5,500 Sq. Ft. Space: Total Retail 3,800 Sq. Ft. Space: Est. TDR's: 493 Units Submitted into the public record for P ROJ ECT O V E RVI EW item(s) D1.5, on 7/11/19. City Clerk HOTEL OVERVIEW The New Urban Initiative will raise the required capital to convert the residential units into a lifestyle boutique hotel with an industrial urban feel and modern technologies. The tower will undergo $5 million renovation in rooms, corridors, retail, and lobby renovations. The current floor plans are well suited for hospitality and will require little to no demolition. The room mix will consist primarily of studio suites and one floor dedicated to shared accommodations. The ground floor will have a small lobby with easy access to new food and beverage outlets to include a cafe and bakery. New Urban International will asset manage the project through it's entirety. SOCIAL ENTERPRISE OVERVIEW The hotel will be operated on a triple bottom-line platform which includes new well paid job openings, reduced carbon footprint, local non-profit support, and an increase in city revenues. New operations will create an estimated 10 full-time jobs and 5 part-time jobs. Our management will look to hire at least 40% or more of those employee from within city limits. In addition, operations will commit an additional two percent (2%) of gross revenue to a historic preservation trust and three percent (3%) to an emergency community fund focused on the City of Miami. Lastly, over 500 of annual operating profits will be dispersed to local non- profit organizations through NUI's parent company the New Urban Initiative. Charitable proceeds will go to supporting local organizations who focus on housing, hunger, special needs, and education. RENOVATIONS & TRANSFERABLE RIGHTS NUI plans to sell the excess development rights attached to the Olympia Theatre to fund the theatre and exterior fagade repairs estimated at $15 million. NUI estimates that there are 413 unused dwelling rights with an $11 million market value. NUI will sell the units and place the proceeds into a historic preservation fund to be used for current and future Olympia preservation renovations. WYNWOOD r� MIDTOWN RAIARAI Mr -At -1 I Submitted into the public record for item(s) D1.5, on 7/11/19, City Clerk 0 A" C 0 M P E T A T I V E M Hotel Name # Rooms Meeting Amenity TA Rating Last Space Level Renovated Olympia Hotel 80 1500 3 Star NA 2019 Holiday Inn 200 1270 3.5 Star 72/128 2012 Yve Hotel 243 1000 3.5 Star 83/128 2013 Langford Hotel 126 1076 4 Star 42/128 2016 Courtyard 233 3000 3 Star 43/128 2016 REPOSITIONING HIGHLIGHTS ➢ Convert to Upper Midscale Hotel ➢ Fully renovate all rooms, corridors, and lobby with a chic industrial design ➢ All new safety systems ➢ F&B will consist of a coffee and pastry cafe ➢ Maintain current footprint ➢ All studios with kitchenettes ➢ Three ADA rooms ➢ Independent branding affiliation Submitted into the public record for item(s) 1131.5, on 7/11/19, City Clerk f ➢ Modern industrial design ➢ Design elements include reclaimed wood, cast iron, and live walls ➢ Inspirational art ➢ Cozy lobby feel ➢ LEED certified ➢ Energy efficient systems ➢ SMART Systems ➢ Latest Technology Submitted into the public record for item(s) 131.5, on 7/11/19, City Clerk DESIGN HIGHLIGHTS W4 OPPORTUNITY HIGHLIGHTS New Urban International, LLC nui WWW.NUINTL.00M ANUI Submitted into the public record for LEASE TERM S item(s) D1.5, on 7/11/19. City Clerk NUI and the Initiative will convert the 10 -story apartment building into a for- profit independent boutique hotel and execute a long term land lease with the City of Miami. The partnership will spend upwards of $5 million on energy efficient system upgrades along with rooms, corridors, and lobby renovations. In exchange for capital improvements and project management, NUI is asking for a three year rent abatement on a 99 year lease. The partnership will also project manage the full restoration and repair of the Gusman Theatre and exterior facade. With an estimated $15 million in repairs, $3 million has already been provided and the remaining balance will come from the sale of excess TDD and TDR rights attached to the property. NUI will manage the sale of unit and will be compensated a reasonable fee. NUI will also implement a new business strategy and third -party management of operations. Management will coordinate with hotel sales & marketing staff for smaller daytime events along with local non-profit organizations and education institutions in order to maximize revenues. Term: 49 years Extensions: 5 10 ear Base Rent: $80,000 $1,000/Unit Rate Increases: Rate increase to begin in Year 6 based on Consumer rice index not to exceed 3% annually. Rent Abatement: Three years Historic Upon stabilization, 2% of gross revenue will be held in an Preservation Fund: interest-bearing account for restoration projects throughout the City of Miami. Community Fund: Upon stabilization, 3% of gross revenue held in trust and distributed to local non-profit organizations within the City of Miami. Employment: NUI will employ 40% of it's employees from within city limits paid above minimum wage with benefits. An estimated 15 full-time and 5 part-time positions will be created. Parking & Theatre The City will donate 100 nearby parking spaces to hotel Deficits: operations for the cost of $1 /space/month. Parking proceeds will go to cover any fiscal deficits from the Theatre while any remaining funds will be disbursed back to the city parking authority. Equity Source Non -Profit Asset Manager For -Profit MANAGEMENT SANDER In In FEEDING' SOUTH FLORIDA STRUCTURE OVERVIEW Submitted into the public record for item(s) D1.5, on 7/11/19, City Clerk DEVELOPMENT D R �F O I r�os�i�4�3Le}/ .ns�nayamei�t, d3c REVENUE DISBURSEMENT Camillus House JE MIAM LIGHTHOUSE AUTISM fo,aLBuND SPEAKS® Aho] VISUALLY IMPAIRED #4L Big Brothers RONALD WDONALDBig Sisters. JHouSE CHARITIES" r - ilk - . . New Urban International, LLC nui WWW.NUINTL.00M NUI Submitted into the public record for item(s) D1.5, on 7/11/19. City Clerk PROJECT COSTS • - - $ per Acquisition Costs % Total Amount Room Purchase Price 1.80 $100,000 $1,250 Closing Costs 0.9% 50,370 630 Acquisition Fee 0.0% 0 0 Total Acquisition Costs 2.7% $150,370 $1,880 Project Costs Guestrooms / Guestrooms Floors 18.90 $1,036,889 $12,961 Lobby Floor 4.8% 265,000 3,313 Conference Facility 0.0% 0 0 Building Systems 17.0% 932,000 11,650 Building Envelope & Exterior 7.20 395,000 4,938 Administration & Other 40.9% 2,243,745 28,047 Other- Outside of Renovation 0.0% 0 0 Total Project Costs 88.8% $4,872,634 $60,908 Total Costs before Financing 91.6% $5,023,004 $62,788 Financing Costs Loan Origination Costs 1.9% $102,942 $1,287 Interest Reserve 6.60 359,452 4,493 Total Financing Costs 8.4% $462,394 $5,780 Total Costs 100.0% $5,485,398 $68,567 Submitted into the public record for item(s) D1.5, on 7/11/19, City Clerk HOTEL OPERATION S Olympia Hotel Mim 610 2019 2020 2021 Number of Rooms 80 80 80 Days Open 366 365 365 Available Rooms 29,280 29,200 29,200 Occupied Rooms 14,640 21,900 24,820 Var Var Var Occupancy 50.0% -16.67% 75.0% 50.00% 85.0% 13.33% Average Daily Rate $140.00 47.37% $151.20 8.00% $157.25 4.00% RevPAR $70.00 22.81% $113.40 62.00% $133.66 17.87% REVENUES % PAR POR % PAR POR % PAR POR Rooms $2,049,600 84.0% $25,620 $140.00 $3,311,280 85.9% $41,391 $151.20 $3,902,895 79.9% $48,786 $157.25 Food & Beverage 0 0.0% 0 0.00 0 0.0% 0 0.00 372,300 7.6% 4,654 15.00 Telecommunications 2,196 0.1% 27 0.15 3,393 0.1% 42 0.15 3,961 0.1% 50 0.16 Parking / Transportation 128,100 5.2% 1,601 8.75 197,374 5.1% 2,467 9.01 230,401 4.7% 2,880 9.28 Retail Leases 120,000 4.9% 1,500 8.20 123,600 3.2% 1,545 5.64 127,308 2.6% 1,591 5.13 Other $65,880 2.7% 824 4.50 101,507 2.6% 1,269 4.64 118,492 2.4% 1,481 4.77 Events ace 75,000 3.1% 938 5.12 115,875 3.0% 1,448 5.29 130,491 2.7% 1,631 5.26 Total Revenue $2,440,776 100.076 $30,510 $166.72 $3,853,028 100.0% $48,163 $175.94 $4,885,847 100.0% $61,073 $196.85 DEPARTMENTAL EXPENSES Rooms 409,920 20.0% $5,124 $28.00 $631,596 19.1% $7,895 $28.84 $737,283 18.9% $9,216 $29.71 Food & Beverage 0 0.0% 0 0.00 0 0.0% 0 0.00 0 0.0% 0 0.00 Telecommunications 29,280 1333.3% 366 2.00 45,114 1329.7% 564 2.06 52,663 1329.7% 658 2.12 Parking / Transportation 128,100 100.0% 1,601 8.75 197,374 100.0% 2,467 9.01 230,401 100.0% 2,880 9.28 Retail Leases 12,000 10.0% 150 0.82 12,360 10.0% 155 0.56 12,731 10.0% 159 0.51 Other 23,058 35.0% 288 1.58 33,497 33.0% 419 1.53 41,472 35.0% 518 1.67 Event Space 48,750 65.0% 609 3.33 75,319 65.0% 941 3.44 84,819 65.0% 1,060 3.42 Total Departmental Expenses $651,108 26.7% $8,139 $44.47 $995,260 25.8% $12,441 $45.45 $1,159,369 23.776 $14,492 $46.71 GROSS OPERATING INCOME $1,789,668 73.3% $22,371 $122.25 $2,857,768 74.276 $35,722 $130.49 $3,726,478 76.376 $46,581 $150.14 UNDISTRIBUTED OPERATING EXPENSES Administrative &General $366,116 15.0% $4,576 $25.01 $346,773 9.0% $4,335 $15.83 $439,726 9.0% $5,497 $17.72 Credit Card Commissions 56,138 2.3% 702 3.83 88,620 2.3% 1,108 4.05 112,374 2.3% 1,405 4.53 Management & Branding Fees 112,745 4.6% 1,409 7.70 181,396 4.7% 2,267 8.28 213,387 4.4% 2,667 8.60 Sales & Marketing 97,631 4.0% 1,220 6.67 154,121 4.0% 1,927 7.04 244,292 5.0% 3,054 9.84 Utility Cost 109,800 4.5% 1,373 7.50 169,178 4.4% 2,115 7.73 197,487 4.0% 2,469 7.96 Repairs & Maintenance 124,440 5.1% 1,556 8.50 191,735 5.0% 2,397 8.76 223,818 4.6% 2,798 9.02 Total Undistributed Operating Expenses $866,870 35.5% $10,836 $59.21 $1,131,821 29.4% $14,148 $51.68 $1,431,085 29.376 $17,889 $57.66 GROSS OPERATING PROFIT $922,798 37.876 $11,535 $63.03 $1,725,947 44.8% $21,574 $78.81 $2,295,393 47.076 $28,692 $92.48 FIXED EXPENSES Insurance $35,000 1.4% $438 $2.39 $75,000 1.9% $938 $3.42 $78,000 1.6% $975 $3.14 Property Tax 66,000 2.7% 825 4.51 68,640 1.8% 858 3.13 71,386 1.5% 892 2.88 Leases & Other Charges 0 0.0% 0 0.00 0 0.0% 0 0.00 0 0.0% 0 0.00 Asset Management Fee 244,078 10.0% 3,051 16.67 385,303 10.0% 4,816 17.59 488,585 10.0% 6,107 19.69 City of Miami Community Fee 0 0.0% 0 0.00 0 0.0% 0 0.00 48,858 1.0% 611 1.97 Historic Preservsation Fee 0 0.0% 0 0.001 0 0.0% 0 0.00 48,858 1.0% 611 1.97 Total Fixed Expenses $345,078 14.1% $4,313 $23.57 $528,943 13.7% $6,612 $24.15 $735,687 15.1% $9,196 $29.64 NET OPERATING INCOME $577,720 23.7% $7,222 $39.46 1 $1,197,004 31.17. $14,963 $54.66 $1,559,706 31.976 $19,496 $62.84 Submitted into the public record for HOTEL O PERATIO NS item(s) D1.5, on 7/11/19, City Clerk Olympia Hotel 2022 80 2023 80 2024 80 Number of Rooms Days Open 365 366 366 Available Rooms 29,200 29,280 29,280 Occupied Rooms 24,820 24,888 24,888 Var Var Var Occupancy 85.0% 0.00% 85.0% 0.00% 85.0% 0.00% Average Daily Rate $161.97 3.00% $166.82 3.00% $171.83 3.00% RevPAR $137.67 3.00% $141.80 3.00% $146.05 3.00% REVENUES % PAR POR % PAR POR % PAR POR Rooms $4,019,982 79.9% $50,250 $161.97 $4,151,926 79.9% $51,899 $166.82 $4,276,484 79.9% $53,456 $171.83 Food & Beverage 383,469 7.6% 4,793 15.45 394,973 7.6% 4,937 15.87 406,822 7.6% 5,085 16.35 Telecommunications 4,079 0.1% 51 0.16 4,202 0.1% 53 0.17 4,328 0.1% 54 0.17 Parking/Transportation 237,313 4.7% 2,966 9.56 245,102 4.7% 3,064 9.85 252,455 4.7% 3,156 10.14 Retail Leases 131,127 2.6% 1,639 5.28 135,061 2.6% 1,688 5.43 139,113 2.6% 1,739 5.59 Other 122,047 2.4% 1,526 4.92 125,708 2.4% 1,571 5.05 129,479 2.4% 1,618 5.20 Event Space 134,405 2.7% 1,680 5.42 138,438 2.7% 1,730 5.56 142,591 2.7% 1,782 5.73 Total Revenue $5,032,423 100.076 $62,905 $202.76 $5,195,409 100.076 $64,943 $208.75 $5,351,272 100.076 $66,891 $215.01 DEPARTMENTAL EXPENSES Rooms $759,402 18.9% $9,493 $30.60 $784,327 18.9% $9,804 $31.51 $807,856 18.9% $10,098 $32.46 Food & Beverage 0 0.0% 0 0.00 0 0.0% 0 0.00 0 0.0% 0 0.00 Telecommunications 54,2431329.7% 678 2.19 55,8701329.7% 698 2.24 57,546 1329.7% 719 2.31 Parking/Transportation 237,313 100.0% 2,966 9.56 245,102 100.0% 3,064 9.85 252,455 100.0% 3,156 10.14 Retail Leases 13,113 10.0% 164 0.53 13,506 10.0% 169 0.54 13,911 10.0% 174 0.56 Other 42,716 35.0% 534 1.72 43,998 35.0% 550 1.77 45,318 35.0% 566 1.82 Events ace 87,364 65.0% 1,092 3.52 89,984 65.0% 1,125 3.62 92,684 65.0% 1,159 3.72 Total Departmental Expenses $1,194,150 23.776 $14,927 $48.11 $1,232,787 23.7% $15,410 $49.53 $1,269,771 23.776 $15,872 $51.02 GROSS OPERATING INCOME $3,838,273 76.37o $47,978 $154.64 $3,962,622 76.37o $49,533 $159.22 $4,081,501 76.37o $51,019 $163.99 UNDISTRIBUTED OPERATING EXPENSES Administrative & General $452,918 9.0% $5,661 $18.25 $467,587 9.0% $5,845 $18.79 $481,614 9.0% $6,020 $19.35 Credit Card Commissions 115,746 2.3% 1,447 4.66 119,494 2.3% 1,494 4.80 123,079 2.3% 1,538 4.95 Management & Branding Fees 219,789 4.4% 2,747 8.86 226,983 4.4% 2,837 9.12 214,051 4.0% 2,676 8.60 Sales & Marketing 301,945 6.0% 3,774 12.17 207,816 4.0% 2,598 8.35 214,051 4.0% 2,676 8.60 Utility Cost 203,411 4.0% 2,543 8.20 210,087 4.0% 2,626 8.44 216,390 4.0% 2,705 8.69 Repairs & Maintenance 230,533 4.6% 2,882 9.29 238,099 4.6% 2,976 9.57 245,242 4.6% 3,066 9.85 Total Undistributed Operating Expenses $1,524,342 30.37o $19,054 $61.42 $1,470,068 28.37o $18,376 $59.07 $1,494,428 27.97o $18,680 $60.05 GROSS OPERATING PROFIT $2,313,931 46.0% $28,924 $93.23 $2,492,554 48.0% $31,157 $100.15 $2,587,073 48.3% $32,338 $103.95 FIXED EXPENSES Insurance $81,120 1.6% $1,014 $3.27 $84,365 1.6% $1,055 $3.39 $87,739 1.6% $1,097 $3.53 Property Tax 74,241 1.5% 928 2.99 77,211 1.5% 965 3.10 80,299 1.5% 1,004 3.23 Leases & Other Charges 80,000 1.6% 1,000 3.22 82,400 1.6% 1,030 3.31 84,872 1.6% 1,061 3.41 Asset Management Fee 503,242 10.0% 6,291 20.28 519,541 10.0% 6,494 20.88 535,127 10.0% 6,689 21.50 City of Miami Community Fee 100,648 2.0% 1,258 4.06 155,862 3.0% 1,948 6.26 160,538 3.0% 2,007 6.45 Historic Preservsation Fee 100,648 2.0% 1,258 4.061 103,908 2.0% 1,299 4.181 107,025 2.0% 1,338 4.30 Total Fixed Expenses $939,900 18.776 $11,749 $37.87 $1,023,287 19.7% $12,791 $41.12 $1,055,601 19.7% $13,195 $42.41 NET OPERATING INCOME $1,374,031 27.3% $17,175 $55.36 $1,469,268 28.3% $18,366 $59.04 $1,531,472 28.6% $19,143 $61.53 Submitted into the public record for item(s) D1.5, on 7/11/19. City Clerk roperty Taxes ase Rent :ommunity Fund reservation Fund Tax I Return otal Revenue otal Expenses let Operating Profit Total City Contributions 3% 2% 6% PROJECTED RETURNS 2019 2020 2021 2022 2023 2024 $66,000 $75,000 $78,000 $ 81,120 $84,365 $ 87,739 $ - $- $ - $ 80,000 $82,400 $ 84,872 $ - $- $48,858 $ 100,648 $155,862 $ 160,538 $ - $- $48,858 $ 100,648 $103,908 $ 107,025 $122,976 $198,677 $234,174 $ 241,199 $249,116 $ 256,589 $188,976 $273,677 $409,891 $ 603,616 $675,651 $ 696,764 Total $ 472,224 $ 247,272 $ 465,907 $ 360,441 $1,302,73C $2,848,574 2019 2020 2021 2022 2023 2024 Total $0 $697,630 $999,369 $4,431,423 $490,806 $543,680 $7,162,90 20% 0 -$139,526 -$199,874 -$886,285 -$98,161 -$108,736 -$1,432,582 $0 $558,104 $799,495 $3,545,138 $392,645 $434,944 $5,730,32 $188,976 $831,781 $1,209,386 $4,148,754 $1,068,296 $1,131,708 1 $8,578,9011 Submitted into the public record for item(s) D1.5, on COMMUNITY FUND 7/11/19, City Clerk M i a m i C h a p i e r New Urban International is committed to effective community change and will dedicate up to 3% of gross revenues to the Transportation Trust Fund of Miami. The Community Fund is a non-profit fund that focuses on the immediate needs of the community. The board consists of three members including Mario Abati and Francisco Rodriguez of NUI and a third board member appointed by the Transportation Trust Fund. The mission of the Community Fund is to address immediate and ongoing transportation needs of the city to include emergency and natural disasters. TRANSPORTATION TRUST FUND The Transportation Trust Fund's mission is to enhance and facilitate the creation, operation, and maintenance, including capital and operating costs, of mass transit and other transportation facilities within the city. Funds will go towards, fixed mass transit routes, the city's trolley system, waterborne mass transit, and public parking garages for transit enhancement purposes. It is further intended that the transportation trust fund money may be expended as the city's share of the cost of an eligible project undertaken or developed by other governmental entities or through a public-private partnership. Community Fund Proceeds Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total $0 Mario Abati $0 $47,225 $97,284 $150,653 $151,568 $446,729 Board of Directors i Francisco Rodriguez - TTF Appointee Executive Director Francisco Rodriguez New Urban International is committed to historic preservation and will dedicate up to 2% of gross revenues to the Preservation Fund of Miami. The Preservation Fund is a non-profit fund that focuses on historic properties within the City of Miami. The board consists of three members including Mario Abati and Francisco Rodriguez of NUI and a third board member appointed by the historic preservation board. The mission of the fund is to address immediate and long term renovation needs of iconic properties. MIAMI HISTORIC PRESERVATION The historic preservation program promotes the identification, evaluation, rehabilitation, adaptive use, and restoration of the City's historic, architectural, and archeological heritage. The preservation program is regulated in Chapter 23 of the City Code. The board established standards that encourage the retention and preservation of historic buildings by respecting architectural design, materials, and workmanship. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total Preservation Fund $0 $0 $47,225 $97,284 $100,435 $101,045 $345,989 Proceeds Board of Directors Francisco Rodriguez H Mario Abati H HEPB Appointee Executive Director Mario Abati Submitted into the public record for item(s) 131.5, on 7/11/19, City Clerk ABOUT THE nl i The New Urban Initiative was started in Miami Florida by husband and wife philanthropists Mario and Ilanit Abati. After decades of volunteer work, they recognized more was needed and a social enterprise was born that combines a for-profit operation with a non-profit mentality. The Initiative aims to build lasting measurable change within the community while creating a cultural change in how business can be done. The Initiative's mission is to acquire cash flowing properties located in dense urban markets whereby over 50% of operating profits go to supporting other local non -profits focused on food and housing insecurities, special needs, and education. Public organizations include Feeding South Florida, Camillus House, Lighthouse for the Blind, Miami Rescue Mission, Jewish Community Services, and more. The initiative raises capital through donations and crowdfunding sources . The Initiative also accepts real estate donations. The ultimate goal is have properties throughout the top 50 U.S. markets with a stabilized annual cash flow of over $4 million with asset classes that include hospitality, apartments, retail, and office. \ ♦'inn i H"', mi—i'" !IS AMI V LIGHTHOO ,, B USE Jewish C.�om�.mau�.nity OFSO�rA F�L'ORIDA A FEEDING' SOUTH FLORIDA Camillus House RONALD MCDGNA[A HOUSE CHARITIES' Mario and Ilanit Abati will be board members with a third to be determined. Mario Abati will also hold the position of Executive Director. The New Urban Initiative will maintain a high degree of transparency, accountability, and efficiency audits and annual filings with the IRS. Budgets are based on previous year revenues with operational budget limited to no more than 20%. Our ultimate goal is acquire and maintain 10 properties throughout the top 50 US markets with an estimated $4M in annually contributions to local markets. Miami Florida is the first Initiative with stabilization expected in 2022. The first five target markets are Miami, Fort Lauderdale, Orlando, Atlanta, and Nashville. Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total Miami, FL $1,200,000 $3,200,000 $4,000,000 $4,080,000 $4,161,600 $4,244,832 $4,329,729 $4,416,323 $4,504,650 $34,537,134 # of Properties 3 8 10 10 10 10 10 10 10 10 Fort Lauderdale, FL $ - $ 800,000 $2,000,000 $3,200,000 $4,000,000 $4,080,000 $4,161,600 $4,244,832 $4,329,729 $26,816,161 # of Properties 0 2 5 8 10 10 10 10 10 10 Orlando, FL $ - $ - MW G$800,000 $2,000,000 $3,200,000 $3,264,000 $3,329,280 $3,395,866 $15,989,146 # of Properties 0 0 MW 0 2 5 8 10 10 10 10 Atlanta, GA $ - $ - $ - $ - $ 800,000 $2,000,000 $2,040,000 $2,080,800 $6,920,800 # of Properties 0 0 0 0 0 2 5 8 10 10 Nashville, TN $ - $ - $ - $ - $ - $ - $ - $ 800,000 $2,000,000 $2,800,000 # of Properties 0 0 0 0 0 0 0 2 5 5 Net Initiative Proceeds $87,063,240 # of Properties 45 Mario and Ilanit Abati will be board members with a third to be determined. Mario Abati will also hold the position of Executive Director. The New Urban Initiative will maintain a high degree of transparency, accountability, and efficiency audits and annual filings with the IRS. Budgets are based on previous year revenues with operational budget limited to no more than 20%. Our ultimate goal is acquire and maintain 10 properties throughout the top 50 US markets with an estimated $4M in annually contributions to local markets. Miami Florida is the first Initiative with stabilization expected in 2022. The first five target markets are Miami, Fort Lauderdale, Orlando, Atlanta, and Nashville. NEW URBAN INTERNATIONAL New Urban International (NUI) is a real estate asset management company located in Miami Florida. NUI currently manages a $75 million dollar portfolio consisting of over 30 projects in various stages of development throughout Coconut Grove, Little Havana, and Shore Crest in Miami. NUI is the exclusive asset manager and logistical advisor for New Urban Initiative and is tasked with managing all property operations in an efficient and effective manner. This starts with an intense focus on top and bottom line financial performance of properties located in the top markets throughout the Americas. NUI's executive team has been engaged in hospitality since 2001 covering every aspect of hospitality and other asset classes from acquisitions and dispositions to management and branding. To date, our team has managed over $350 million in hotel assets including the Sagamore Art Hotel in Miami Beach, Sheridan Riverwalk Tampa, Sheridan Yankee Clipper Fort Lauderdale Beach, the Coco Key Hotel and Water Resort in Orlando, Cambria Suites in Miami, Commodore Place Hotel, and more. In addition to real life experience and an industry pedigree, our executive team holds an extensive collegiate track record that includes multiple graduate degrees and certifications from highly reputable institutions. Mr. Abati holds multiple degrees including graduate degree in International Business from Florida International University along with a Master Certificate in Hotel Revenue Management from Cornell University. MISSION STATEMENT Our mission is to manage urban real estate projects with people, planet, and profit as our top priorities. Submitted into the public HOTEL O PERATOR S O N D E R record for item(s) D1.5, on 7/11/19. City Clerk NUI will create a strategic partnership with experienced hospitality operators to include Sonder Hospitality. Sonder master -leases and/or manages entire buildings or blocks of floors representing over $1.6 billion of prime assets. Sonder fully designs and outfits its spaces and host clients for stays ranging from a few nights to several months. Backed by over $200 million in debt financing and venture capital from Silicon Valley's best and most visionary investors, Sonder is transforming the future of hospitality. Each Sonder is purposefully selected, designed and maintained - customized to reflect the vibe of its neighborhood. Whether your stay is two days, two months or two years, in a studio or a six -bedroom, Sonder ensures a unique, yet consistent experience. And with 24/7 on -demand service, crisp linens, and over 200 other quality standards, Sonder is taking stay further for guests all around the world. �s +i R f - V 'W - — kt Seattle ftc- a.fP Portlend9 Que�.ecGry .. MontrezjL. San Fraror:isca M11Sroieapalis Y &aston Taranto New York City Sen lase,l C7rtaga RetraAt€apenhagen Philadelphia MountainView x L■! Denver VlaAington R.0 ��� 9erlin Amsterdam I Los Angela; '�q Les Wages Londar San Qiega Phae iM shvi MemPJr is le {b ate P s Vie, n 9 At 9 herkstan :Wi6an 1 Runs Savannah19 d Cur—t Marto—L _ lar et Marketr San LitclO }{aan Randa Madrid &ar.elona y g New Orleans T Lisbon 4th- 4liemi - Questions or Comments? Mario Abati MarioAbati@NUIntl.com Submitted into the public record for item(s) D1.5, on 7/11/19, City Clerk