ECO ConventionCenterHotel-AncillaryDevelopment 052013

7/30/2019 ECO ConventionCenterHotel-AncillaryDevelopment 052013

1/53


2/53

CONVENTION CENTERHOTEL ANCILLARY

DEVELOPMENTDallas City CouncilEconomic Development Committee

May 20, 2013


3/53

Purpose

Illustrate the opportunity to integrate the DallasConvention Center into a revitalized and transformingLamar corridor.

2


4/53

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

3


5/53

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.

4


6/53

Results

Image courtesy of: Urban Fabric Photography, Justin Terveen

5

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%


7/53

NotableConventions(past 24 months)

6

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


8/53

7

Needs Analysis Completed

7

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


9/53

8


8

Complete

In Progress

Still Needed

Attached Convention Center Hotel Renovate and modernize the Dallas Convention Center




Create Tourism PID





10/53

Convention Center Hotel Site

(November 2007)

9


11/53

Completed Convention Center Hotel

10


12/53

Omni Success to date

11

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


13/53

Additional Omni Success

12

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


14/53

Omni Restaurant Outlets

13


15/53

14


14

Complete

In Progress

Still Needed


Renovate and modernize the Dallas Convention Center Provide pedestrian streetscape to link Convention Center to South Side on Lamar



Create Tourism PID





16/53

16


17/53

Results of Capital Improvement Investments

16

BEFORE

AFTER

17


18/53

Upper Ballroom D

17

18


19/53

Bluffview Meeting Room

18

19


20/53

Upper D Corridor

19

20


21/53

Concept of C Lobby ImprovementsStill to come

20

21


22/53

DCC FACILITY IMPROVEMENT PROGRAMPhase I

21

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

22


23/53

22


22

Complete

In Progress

Still Needed



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



23


24/53

Lamar Corridor

23

N

24


25/53

Lamar Streetscape

24

Pedestrian Improvements on LamarLamar streetscape improvements

25


26/53

South Side

25

Full Circle Bar

Jack Evans

26


27/53

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.

26

27


28/53

Victory Park

27

W HotelVictory Plaza / AAC

Cirque

28


29/53

28


28

Complete

In Progress

Still Needed





Transform the transit station under the Convention Center into a highly visible,well lit pedestrian experience

Create Tourism PID




29


30/53

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

29

30


31/53

Omni/DART Lamar ConnectionUnder the Convention Center

30

31


32/53

Example of similar entrance

32


33/53

Omni/DART Lamar ConnectionUnder the Convention Center

33


34/53

Conceptual Rendering


35/53

35


36/53

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

36


37/53

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.

37


38/53


37

Complete

In Progress

Still Needed






Create Tourism PID

Provide transit to connect South Side on Lamar to the Convention Center, WestEnd and to Victory



38


39/53

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.

39


40/53

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.

40


41/53

Rubber Tire Trolley Service Areas

41


42/53


41

Complete

In Progress

Still Needed






Create Tourism PID


Add additional retail and parking to serve the Omni and other Omni retail Ensure stakeholder involvement in Convention Center opportunities

42


43/53

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.

43


44/53

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

44


45/53

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) $

45


46/53

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

46


47/53

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

47


48/53

Concept Rendering

48


49/53

Below Grade Plan

49


50/53


49

Complete

In Progress

Still Needed






Create Tourism PID




50


51/53

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

51


52/53

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

52


53/53

Questions?

ECO ConventionCenterHotel-AncillaryDevelopment 052013

Documents

Transcript of ECO ConventionCenterHotel-AncillaryDevelopment 052013