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7/30/2019 ECO ConventionCenterHotel-AncillaryDevelopment 052013
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CONVENTION CENTERHOTEL ANCILLARY
DEVELOPMENTDallas City CouncilEconomic Development Committee
May 20, 2013
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Purpose
Illustrate the opportunity to integrate the DallasConvention Center into a revitalized and transformingLamar corridor.
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Dallas Convention Center
Over $1B Asset for City of Dallas
2.1M square foot campus
More than 1M square foot ofexhibit space
Existing Silver LEED BuildingCertification
$60M Capital ImprovementProject underway
Renovating Existing Exhibit/
Common space Life Safety Systems
Mechanical and ElectricalSystems
Image courtesy of: Urban Fabric Photography, Justin Terveen
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Dallas Convention Center
Dallas Convention Centers Economic Impact Last year (2012), DCC hosted105 events with approximately 1 million attendees bringing the City of Dallas an
economic impact of over $570 million. This is up by over $168 million from theprevious year.
Based on bookings, the DCVB estimates this years (2013) economic impact willbe over $690 million.
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Results
Image courtesy of: Urban Fabric Photography, Justin Terveen
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Current/Projected Booking Information(October 12 September 13)
Total Number of Events 105
Total Number of Attendees 1,182,351
Total Direct Dollar $231,428,359
Total Eco Impact $694,285,078
Budgeted Expenses $63,455,164
Total Room Nights Blocked 406,918
Return on Economic Impact 10.94%
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NotableConventions(past 24 months)
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International Conventions
Convention Name Number ofAttendees
Number of RoomNights
Solar Power International 24,000 4,801
American Meat InstituteFood Marketing InstituteUnited Fresh Produce Association(Joint Convention)
18,000 8,650
Regional / Nationwide Conventions
Convention Name Number ofAttendees
Number of RoomNights
Air-conditioning, Heating and Refrigeration Expo 55,000 12,500
Lone Star Classic Volleyball Tournament 50,000 3,773
Mary Kay, Inc. 31,500 12,500
Local ConventionsConvention Name Number of
AttendeesNumber of RoomNights
Dallas Auto Show 325,000 200
Dallas Safari Club 20,000 1,500
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Needs Analysis Completed
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Complete
In Progress
Still Needed
Attached Convention Center Hotel
Renovate and modernize the Dallas Convention Center
Provide pedestrian streetscape to link Convention Center to South Side on Lamar
Provide pedestrian streetscape to link the Convention Center through the West End
Transform the transit station under the Convention Center into a highly visible, well litpedestrian experience
Create Tourism PID
Provide transit to connect South Side on Lamar to the Convention Center, West End andto Victory
Add additional retail and parking to serve the Omni and other Omni retail
Ensure stakeholder involvement in Convention Center opportunities
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Needs Analysis Completed
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Complete
In Progress
Still Needed
Attached Convention Center Hotel Renovate and modernize the Dallas Convention Center
Provide pedestrian streetscape to link Convention Center to South Side on Lamar
Provide pedestrian streetscape to link the Convention Center through the West End
Transform the transit station under the Convention Center into a highly visible, well litpedestrian experience
Create Tourism PID
Provide transit to connect South Side on Lamar to the Convention Center, West End andto Victory
Add additional retail and parking to serve the Omni and other Omni retail
Ensure stakeholder involvement in Convention Center opportunities
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Convention Center Hotel Site
(November 2007)
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Completed Convention Center Hotel
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Omni Success to date
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The Hotel Closed Out 2012 with:
Occupancy 9% over budget
Revenue Per Available RoomExceeded budget by Over $4.3M
Food and Beverage RevenueExceeded budget by $9M
Total Revenue Exceeded budgetby Approximately $14M
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Additional Omni Success
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In the two years (24 months) prior to the approval of the Omni Dallas Hotel the DallasCVB booked 18 citywide events.
In the two years following the approval of the Omni Dallas Hotel the Dallas CVB hasbooked 44 citywide events.
To date (5/10/13) the Dallas CVB has booked 87 citywide events.
M/WBE SuccessHotel Construction Hotel Operating
Significant joint venture between Balfour Beatty
and two M/WBE firms: Pegasus Texas and H.J.
Russell Co. (BRP JV)
Exceeded goal of 25% for 2012 calendar year at
31.7%
Exceeded goal of 30% for a total of 37.9% of the
project value
Resulted in 27 separate contracts to M/WBE firms
Resulted in 163 separate contracts to M/WBE
firms
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Omni Restaurant Outlets
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Needs Analysis Completed
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Complete
In Progress
Still Needed
Attached Convention Center Hotel
Renovate and modernize the Dallas Convention Center Provide pedestrian streetscape to link Convention Center to South Side on Lamar
Provide pedestrian streetscape to link the Convention Center through the West End
Transform the transit station under the Convention Center into a highly visible, well litpedestrian experience
Create Tourism PID
Provide transit to connect South Side on Lamar to the Convention Center, West End andto Victory
Add additional retail and parking to serve the Omni and other Omni retail
Ensure stakeholder involvement in Convention Center opportunities
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Results of Capital Improvement Investments
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BEFORE
AFTER
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Upper Ballroom D
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Bluffview Meeting Room
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Upper D Corridor
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Concept of C Lobby ImprovementsStill to come
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DCC FACILITY IMPROVEMENT PROGRAMPhase I
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Estimate Approval to Date Complete
Completed Projects
Assessment Study Fee $897,535
Central Plant Improvements / Chilled Water Loop $1,562,313
New Ballroom Upper Level D $17,316,830
Current project costs on awarded projects and in the punch list and change order phase
A Lobby AB Pre-function Upgrades $1,895,471 $1,877,135
A/B Pre-function and Upper D Level Furnishings $419,564 $413,385Subtotal $2,315,035 $2,290,520
Under Construction Now
Fire Alarm and Emergency Lighting Upgrades $4,869,983 $3,395,799
Waterproofing Projects $2,234,980 $767,063
A/B Roof Replacement $6,929,716 $4,244,391
Subtotal $14,034,679 $8,407,253
Projects currently in Design Phase estimate of project costs
C/D/E Roof Replacement $6,929,716 $35,341Area C Concept Design $235,000 $175,384
Upgrades C Lobby, C Ballroom, C Meeting Rooms $13,921,996 $817,205
C Area Furniture Selection $79,800 $7,480
Lamar Streetscape $2,600,000 $61,777
Subtotal $23,766,512 $1,097,187 $19,776,678
Grand Total $59,892,904
All projects are estimated to be complete by January 2015
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Needs Analysis Completed
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Complete
In Progress
Still Needed
Attached Convention Center Hotel
Renovate and modernize the Dallas Convention Center
Provide pedestrian streetscape to link Convention Center to South Side on Lamar Provide pedestrian streetscape to link the Convention Center through the West End Transform the transit station under the Convention Center into a highly visible, well lit
pedestrian experience
Create Tourism PID
Provide transit to connect South Side on Lamar to the Convention Center, West End and toVictory
Add additional retail and parking to serve the Omni and other Omni retail
Ensure stakeholder involvement in Convention Center opportunities
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Lamar Corridor
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N
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Lamar Streetscape
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Pedestrian Improvements on LamarLamar streetscape improvements
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South Side
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Full Circle Bar
Jack Evans
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Link to West End
Lamar Street From Young Street to Ross Avenue $6.7M in combined funding available from the 2009 NCTCOG Sustainable Development Program, the
Citys 2006 bond funds, and available Convention Center bond funds.
Engineering design currently underway.
Construction to start September 2013, anticipated to be complete November 2014
Project includes sidewalks, street trees, landscaping, enhanced crosswalks, traffic signalimprovements, and bicycle facilities.
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Victory Park
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W HotelVictory Plaza / AAC
Cirque
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Needs Analysis Completed
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Complete
In Progress
Still Needed
Attached Convention Center Hotel
Renovate and modernize the Dallas Convention Center
Provide pedestrian streetscape to link Convention Center to South Side on Lamar
Provide pedestrian streetscape to link the Convention Center through the West End
Transform the transit station under the Convention Center into a highly visible,well lit pedestrian experience
Create Tourism PID
Provide transit to connect South Side on Lamar to the Convention Center, West End andto Victory
Add additional retail and parking to serve the Omni and other Omni retail
Ensure stakeholder involvement in Convention Center opportunities
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Omni/DART Lamar ConnectionUnder the Convention Center The goal is to create an area of interest for
people to visit
Opportunities for improvement include: Improved lighting
Cleaner environment
Better way-finding signage
Pedestrian enhancements
Schedule: Lamar Street: Under the Convention Center
Design June 2013 through October 2013
Construction February 2014 through October 2014
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Omni/DART Lamar ConnectionUnder the Convention Center
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Example of similar entrance
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Omni/DART Lamar ConnectionUnder the Convention Center
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Conceptual Rendering
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Tourism Public Improvement District
Tourism PID passed 2012
Administered through a PID board Comprised of local hoteliers and hospitality professionals
Brings $10 million to the Convention and VisitorsBureau to assist with marketing and incentives
Estimated additional HOT tax of $700,000 per year
$500,000 annually for capital improvements to theDallas Convention Center
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Tourism PID Progress Secured an additional 38 meetings for Dallas over the next several years.
These meetings represent more than 1.2 million room nights and $59 million in hotellodging revenues.
Helped Fund Dallas new branding campaign Big Things Happen Here.
TPID funds were used to help develop and produce a multimillion dollar advertising
campaign to promote Dallas to visitors across the country.
Helping local arts organizations promote their performances to out of market visitors.
To date, four arts related organizations have been approved for funding from the TPIDsevents marketing fund. More arts groups and other local organizations are expected tomake use of this unique funding feature of the TPID as it becomes more wellknown.
Helping smaller hotels in Dallas compete with suburban hotels for hotel specificmeeting business.
To date (5/8/13), the TPID has facilitated securing ten hotel specific meetings/groupswithin smaller Dallas hotels.
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Needs Analysis Completed
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Complete
In Progress
Still Needed
Attached Convention Center Hotel
Renovate and modernize the Dallas Convention Center
Provide pedestrian streetscape to link Convention Center to South Side on Lamar
Provide pedestrian streetscape to link the Convention Center through the West End
Transform the transit station under the Convention Center into a highly visible, well litpedestrian experience
Create Tourism PID
Provide transit to connect South Side on Lamar to the Convention Center, WestEnd and to Victory
Add additional retail and parking to serve the Omni and other Omni retail
Ensure stakeholder involvement in Convention Center opportunities
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Transit Connection
The Oak Cliff Streetcar ("TIGER") project is beingconstructed to connect downtown to Oak Cliff, witha terminus at Union Station and at MethodistHospital.
An "Urban Circulator" streetcar loop is being
constructed through the Arts District: fromMcKinney / St. Paul (South to Federal Street) toFederal and Olive (heading East), and North onOlive to McKinney Avenue (to the existingMcKinney Avenue Trolley System).
Future connection between the TIGER project and
the Urban Circulator is pending determination ofDART's "D2" light rail line through downtownDallas.
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Rubber Tire Trolley Downtown Dallas Circulator will provide service throughout downtown connecting users to
surrounding districts and destinations
Neighborhoods served will include Bishop Arts District, The Cedars, Victory and the Design District
The Downtown Circulators are intended to serve visitors, workers and students with enhancedshuttle service
Service will provide easier access for Downtown workers, residents and visitors
The vehicles and bus stops will be uniquely branded to be easily identifiable and accessible
Service is anticipated to launch in August 2013
$1.3M annual operating cost
$400,000 City Participation
$365,730 DART Share
$258,332 Job Access and Reverse Commute (JARC) Grants
$250,000 Downtown Dallas, Inc.
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Rubber Tire Trolley Service Areas
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Needs Analysis Completed
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Complete
In Progress
Still Needed
Attached Convention Center Hotel
Renovate and modernize the Dallas Convention Center
Provide pedestrian streetscape to link Convention Center to South Side on Lamar
Provide pedestrian streetscape to link the Convention Center through the West End
Transform the transit station under the Convention Center into a highly visible, well litpedestrian experience
Create Tourism PID
Provide transit to connect South Side on Lamar to the Convention Center, West End andto Victory
Add additional retail and parking to serve the Omni and other Omni retail Ensure stakeholder involvement in Convention Center opportunities
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Ancillary Development Overview
Original ancillary development anticipated additional debt. Development plan is now to be paid with cash.
Project paid from original hotel construction savings Revenue will offset the approximate $1.6M debt service
payment on the land. Plans include development of 2 acres of land in front of
Dallas Omni Hotel: 350 space below grade parking garageApproximately 15k square foot of restaurant/retail
Land is owned by the City of Dallas Land will be leased to the DCCHDC Omni will manage/maintain the parking, retail and
restaurants as an extension of current hotel operations.
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Ancillary Development Always the Plan
Makes Dallas as a destination more attractive
Clients are requiring more restaurant andentertainment venues within walking distance of
the Convention Center Increases the economic impact of the destination
Enhances convention attendee experience
Enhances the overall Lamar Streetscape Plan
Enhances Lamar entertainment venues
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City of Dallas(Land Owner)
Leases land to theDCCHDC
Matthews SouthwestManages the process for the
Citys goals and needsBalfour, Russell, Pegasus
Design and build development
Once complete, Omni willmanage the development as anextension of current operations
Base Rent + 100% of net operating profitspaid back to City as rent
(will offset land debt service) $
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Ancillary Lease
Thirtynine year land lease to be entered into between City of Dallasand DCCHDC
Two tier rental rate structure, payable in quarterly installments
Rental payments deferred until three months after certificate ofoccupancy is issued for the project
Provision for two 5 year extension options, upon mutual agreement
Base rent of $697,600 subject to Consumer Price Index adjustment
8% of the Fair Market Value (FMV)
FMV appraisal is $ 8,720,000
Base rent plus 100% of the net operating profit from the ancillarydevelopment; projected estimate of $42M over the term of the lease
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Estimated Construction Budget andAncillary Development Schedule
Amount Component
$20 M GarageConstruction
$5 M RetailConstruction
$2 M Landscape andLamar StreetImprovements
$27 M Total EstimatedConstruction
Date Action
May 2013 CouncilConsideration
May 2013 DCCHDCConsideration
May 2013 Notice to Proceed
June 2013 Permit Review
September 2013 Construction toStart
January 2015 ConstructionComplete
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Concept Rendering
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Below Grade Plan
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Needs Analysis Completed
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Complete
In Progress
Still Needed
Attached Convention Center Hotel
Renovate and modernize the Dallas Convention Center
Provide pedestrian streetscape to link Convention Center to South Side on Lamar
Provide pedestrian streetscape to link the Convention Center through the West End
Transform the transit station under the Convention Center into a highly visible, well litpedestrian experience
Create Tourism PID
Provide transit to connect South Side on Lamar to the Convention Center, West End andto Victory
Add additional retail and parking to serve the Omni and other Omni retail
Ensure stakeholder involvement in Convention Center opportunities
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Stakeholder InvolvementDestination Dallas Task Force
Taskforce Members:
Delia Jasso, Chairperson Dallas City Council
Ryan EvansCity Managers Office
John Scovell Woodbine Development Corporation
Jack Matthews Matthews Southwest John Crawford Downtown Dallas
Don Freeman Freeman Companies
Cindy Allen Mary Kay Cosmetics
Ray Hammer Dallas Sheraton
Darren Temple Dallas Convention & Visitors Bureau
Ron King Convention & Event Service
Goals of the Taskforce:
Customer Satisfaction Recommendations
Prioritization of Infrastructure and Capital
Improvements Omni/Convention Center Operational Coordination
CVB Booking Improvements
Convention Center Booking Improvements
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Summary
Omni Dallas Convention Center Hotel Complete
Dallas Convention Center Capital Improvement Planunderway
Streetscape improvements in progress along Lamar fromSouth Side to West End/Victory areas
Planned transformation/renovation of transit under theDallas Convention Center
Improve transportation facilities for our customers
Ancillary development addresses Convention CenterHotel Master Plan and would provide additional retail andparking for the Lamar corridor
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Questions?