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<br />.. ..... c...... .....
<br />Laca..s __ bIodu (ram ... bndo. dot SOD.OOll
<br />'" r_ M.... B.... eo....n..... c_ .... -
<br />I localeCl w\tIIlB .- -lkiBt diu.1II:&. 1l.1CaIIIJ.
<br />CkJ ........ .... ~ .. .,... ..
<br />........ 01 two ~ ~ - ..
<br />.., la.lIdIIIca.. 1M alltima poobIic-pri.... ..._
<br />IviDa 1M 100-_ lAows CaDYCDll.. lIood. ..
<br />of Miami Buell II "" ............ witIIlhe pri.....
<br />:II .. <DI>I1nId . 4%1......... C..,....,.. I'bu -. lIoo
<br />__ _. TM ClI)o Iau pan:hucd lit .... r-
<br />....1liml. wbidl k .... Iaac .. lhc .....lcpor r-
<br />0.000 _10 7-. TM IUI1ImiDJ projccl Call 01' U4
<br />.. wID Ioc pri"llly fundcjI, .JII"'lUmoldy 11
<br />:.III 01 .,bleb will Ioc ... _Iapcr aad .pmllD.'.
<br />icJ.
<br />
<br />npo M..rlan HahII
<br />n. CilJ 01 T...... Iau Iocd aclooialiaa .ad
<br />.,0Ii0.... biclo _ vuiDuI c1....1opcIt .i_ 1ll9],
<br />-'1 pn>pOSII r... __ M.rriooI ....... .....
<br />IaaI ..-07 ... P")'CIO '" risIl u ... run r.lth 11III
<br />dll 01 dot CiI;r ","eked de'" DIl Ole hol&'- This JIIDIM>IAI
<br />. vDIOd ""WI! ill. Id.m.'h........ Curnnlly, dot Cil\'
<br />upu1al '" ._ '- I zo.)'CIl InK 10 ...... ....""'
<br />.ea (lobby. CR.) '- aD anclal dY, IppruAimata N
<br />..r. .......1 prapc..,. .ad ulcs lUe. (....nli.l17 . IU
<br />..). TK Cll\' will .I&D Jl'I"C"- pan .r "'" .i", r.. a
<br />I1cy far .. ._ IJ'P"WmlliD& i....-. rea. n..
<br />WC'- Will..... u... I ~~ IUK (..;110 ....., IS-
<br />.. calrN;.,na) fer puldDa ........ ",.,icIccI by "'" Ch)o
<br />. be_._"""..... TM Cit:r -7 .1.. COI11'l<'" III
<br />dOled ...Ur:w., eorawc...ma dw bo1r.l 1M coo""CnrK.
<br />nlCl lad I _I""'" llaq lhc ...."" '" Ihc I.. '.bet,
<br />.~'I~
<br />
<br />II., PI'" H_I7'_
<br />......... ~ody :10 mil.. 101IIII 01
<br />......_ Clticqo. 1IIc vm... Dr Tinlc;r Pili< io
<br />'-... wi. I prinIo d...,- ... conm\IC$ . 35,_
<br />;...n r..... ~ _ .... .1 .djltcDI :lOG-_
<br />U oavico Holiday _ Tbo con..nri.. _lot ..111oc
<br />...... br Ibc Vl1Io.. .... Ieud .. 11>0 hoIel "pin"'" "' I
<br />.......1 ._ 'no vi1lqc II demoli., Iond lor Ihc _I
<br />.. JI'1"'idinI ... ...._ l\oIllCia& "" i_o..'
<br />.DJlI")' __ ......... .., .... baool h ....-. ...
<br />oble _ io J"D"!.... b.' ....11;." .1"'" ...... projecI
<br />.... PrlnIc...... okbt a"" C<l"ily ...,11 pnmde Iho
<br />:_.... 16..-- or.... pm;- ,.".,;,..
<br />
<br />t,...... tinea. H_
<br />TJw City Dr NJIlII BcacIlIs conlinoin, 1HI ;q Ima-
<br />...,. COCIft1IDan calli' pIaa by inct!nDftJ . 4100..RaII
<br />lihDa . he conIavclat lad .nlle.... ID 11M M~lc BIt.eta
<br />..._rioa c....... TIle CiIy io _-iclmr Ihr ck..l_
<br />nth JCCCU lD 1M COIIiVftll:iU. nmtr', balboom. merlin,
<br />pIIU IDd UlCrUaI IUIdIcn. (vlhlE not inc:luch:d In Llbh); .
<br />.) millioD ,.... '" bu/lcl . F"UnI ,II"'" .nd
<br />..-iDI IV,S ...1IiGo or l'"'iad wb Oow '1If'PO'IO'l
<br />leM ~Jh ill oftft.1 oa;upaacy Ul coUcCDOIII.
<br />
<br />h.... ClI)' Ha...
<br />Ia .. c1JoI\ .. pi a """'I b..', .dj".nl ... ill
<br />'DIl"nIioa ...-, IUMa Cily il p......rinC willi .
<br />.riva", c1c"'1oprr .. _1nICt . 6O()..-a Hillon Hotol
<br />""" pulslic He.. II ~ 1l2.4 nu11im1 /rom I Ial
<br />nc:n:.... fi~ eII.aiel bon4 DI incn:'mel\ta1
<br />)cC~poQC}'. r....s """ bo-ac. .nd pn>pt"l' III n~n_
<br />f.n.,...., .., .. '-I ... ............... .......
<br />Esunliall7, Iht CkJ will Ioc fw,cI;'l 40 ,.recOl Dr Iht
<br />'Dial psujcd coo\, wilIIc lho de..1opcs will conln""te IS
<br />minion .. equity .'IId ICPIIC u.c RmllPlnl priva&c SteW
<br />-
<br />
<br />RltbatUoa Re.........
<br />T1w C;,y or Ilic......... 'TX ....s J..... 0, HI""""'"
<br />.te in lho final..... ....,..."- '" dewclop. l30.""""
<br />Rcn.inancc illl Ole 0.... luburb. Ta lIC'iliul& 1M'
<br />d<....lopmnl~ "'" ci17 pba ID I) c.n....... I."" ror Iht
<br />ho<cl. 2) conn",cl dot ....., parld.., dccl. kui", ~ 10 ..
<br />de,..lopCI r.. I nomiJIol ........... lad 3) r",.nc. 11>0
<br />murina IpoI" tDnSaw::DDn wiI.l ciry (,,(lit tAIl iJ to be'
<br />..paill horn b_1 opcn~ (1flll"'.imolCly 17,.1
<br />million).
<br />
<br />STIlATEGIC ADVISOIlVGllou, LLC
<br />
<br />Attached and Adjacent Rooms
<br />Refer 10 the graph entitled M Attached
<br />& Adjacent Rooms." The horizontal
<br />axis presentli lbe number of anached and
<br />adjacenl hold rooIIII (Iolal supply, nol
<br />room block). The vertical Illil presen1l
<br />overnight guests per exhibi, square fooL
<br />Allain, the reruhs are cleu. The more
<br />anached 8IId adjacenl hotel rooms, the
<br />more overnigbt gucstl thaI cm be
<br />anncted to a convcntion center.
<br />Centers with fewill' tbaD 500 total
<br />altached and adjacent rooms bad 0.55
<br />overnight gucslll per square fool, aDd
<br />those with 2,000 to 3,000 lotal attached
<br />and adjacent rooms had 1.36 overnil!bt
<br />guests per square fool Agam. applying
<br />\his ratio to a 500,000 square foot
<br />convcntion cenler would equate 10
<br />275.000 anendees at lbe low end
<br />(500,000 x 0,55) aod 680,000 at the
<br />higb end (500,000 x 1.36)- This is a
<br />significant potential difference of
<br />405,000 overnight guests each year.
<br />The range of 2,000 10 3,000 lolal
<br />rool11l attached and adjacent to the
<br />center 1Ippear1 to offer the greatesl
<br />positive impacl
<br />
<br />Effect of Climate
<br />FUrther research on the data brought
<br />10 light aD inlercsting fact regarding
<br />climate. None of the warm weather
<br />dtic:a utilized in lbe analy.ia possessed
<br />aTtached holels. 1.n conb'UI, III bu( oDe
<br />of the cold weather destinatiODl offered
<br />attached hotels. Tbil would suggc:al that
<br />in order to be competitive:, an IInlched
<br />bolel thaI protects dcle~ates from lbe
<br />wealher migbl be a bascline requiremcut
<br />for cold weather destinations,
<br />
<br />Why Has the Public- Sector
<br />Become Involved?
<br />There is a general rulc.of-Ihumb lbat
<br />suggestli thlt a bolel operating al 70"A.
<br />occuPllDcy wilb I SI00 averasc daily
<br />rate (ADR) can support per key
<br />construction costs of S100,OOO (every
<br />donar of ADR supports Sl,OOO of
<br />conslJUc:tion cost).
<br />However, with the exception of a
<br />handful of markets, ADR" wOD'1
<br />support lbc: construction coslS. This
<br />shomall of ADR's in relation 10
<br />conslJUction costs creates II "gap." As I
<br />result, private.seclor developen cannot
<br />attain lbe return on invesunenl they
<br />require from a purcly prinle-sector
<br />pen;pective.
<br />
<br />32
<br />
<br />But 1oc:.al IOVC...a.cuII UO\IDd the
<br />country undcntmd tbI: positive impKt
<br />these hotell C&D have 011" competitive
<br />position of tbe CIlIIIVmtioD CCDta,
<br />Moreover. the public lleCtDr'l n:turD on
<br />investment tall be aipificanl. Tax
<br />collection&. ill ts::nIa of occupaDCY.
<br />property. food aod bcvcnlC, aala and
<br />income, typica11J fir outweip lbe
<br />inCCDtivC required tIO develop the botel
<br />To elimiDdD dda lap. public-sector
<br />cntitic:a blve chOICIIl 10 partner with
<br />developen ill cralive ways to produc:c: a
<br />wiD-win si1Uatioa - the private-sector
<br />gets lbe bold built and the public:-sec:lOT
<br />geg economic devdopmad. indudiDg
<br />increased UIIlIC .. the convention
<br />center, new jobe and..x menuCl.
<br />
<br />How Does the Process Usually
<br />Work?
<br />When punuiaa . CODvcntiOll
<br />headquarter bou:1 that requires public
<br />participatioa" it 11 1bI pubHc-sectOf WI
<br />mull ISSUJllfl the lead role. First, and
<br />mosl importaDdy. public officials mud
<br />undentancl the acope or tbe commitment
<br />they II1'C aboat to 1IIIdcrtake. This
<br />typically entalla n:aeuda about the local
<br />botel market (iueluelina a specific
<br />recommcnc!atioc 011 lite botel project
<br />itself). the impact a hotel would have 011
<br />the cODventiaa cc:ntcr and the
<br />community. IDIl Ibc rmancial
<br />comrnitmeDt thc public-1Cdor might be
<br />required la mab.. 1bia up-front
<br />knowledle will define bow the procell
<br />moves f~ IDCI is invaluable
<br />throughout the proceIII.
<br />It is allo imponant 10 understand lbl'
<br />these deals take time and some poliTical
<br />risk secma alwa}a 10 be involved.
<br />Why? Some UJUC that the public sector
<br />sbould not be irriolnd in a private
<br />seClor venture. SupporterI argue that
<br />these public incen1iva are DO differeDl
<br />
<br />Attached" Adjacent Rooms
<br />
<br />1M
<br />
<br />
<br />,
<br />I...
<br />I
<br />J ,..
<br />t,..
<br />
<br />...
<br />
<br />-...
<br />
<br />-.....- .......... ....-.a.-
<br />...... r/t......... -..-.-.-.--
<br />
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