Welcome and Introductions

Transcription

1 Welcome and Introductions

2 Request for Proposals for Joint Development Pre-Proposal Meeting Miami Intermodal Center Program State of Florida Department of Transportation January 15, 2003

3 Agenda! Welcome and Introductions Nick Serianni! Objectives of MIC Joint Development Procurement Nick Serianni! Purpose for Pre-Proposal Meeting Nick Serianni! MIC Program Description Steven Thompson! MIC Joint Development Market Analysis Tom Moriarity! Presentation by World Trade Center Miami Ana Maria Fernandez Haar! Presentation by Empowerment Trust, Inc. Tina Millan-Clegg! Developer Incentives Nick Serianni! Proposal Requirements Nick Serianni! Selection Process and Schedule Nick Serianni! Questions

4 Objectives of MIC Joint Development Program! Generate revenue for transportation improvements! Effectively integrate transportation and commercial development at the MIC! Facilitate the build out of the MIC Core! Create area-wide economic development opportunities

5 Purpose for Pre-Proposal Meeting! Provide general information on the RFP! Provide an opportunity for clarifications! Describe the procurement process! Provide additional information not contained in the RFP

6 MIC Program Description! Transportation elements! MIC Core/transportation hub! Joint/commercial development! MIC program summary schedule

7 Transportation Elements! Right-of-way acquisition, utility relocations and environmental remediation! Consolidated rental car facility! Automated people mover! Area roadway improvements! MIC Core/transportation hub

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12 MIC Core/Transportation Hub

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16 Joint/Commercial Development

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18 MIC Program Summary Schedule

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20 Economic Research Associates! MIC Market Analysis! Key Economic Indicators! Office Market Conditions! Industrial Market Conditions! Hotel Market Conditions! Demand Analysis! Program Summary

21 MIC Market Analysis - Qualification Economics Research Associates (ERA) has completed several market and economic analyses for the Miami Intermodal Center since The market information which follows is based on the most recent market update, completed in August, 2001, and submitted to the MIC Planning Team prior to September 11, the national economic slowdown, the recent economic downturn in South America (which affects international travel and trade in Miami) and other factors. MIC proposers reviewing this information should recognize that this data may not accurately reflect current market conditions.

22 Key Economic Indicators: Miami-Dade Population & Employment! 2.2 Million Residents, Annual Increase: 25,000! Diversified Regional Economy: Services, Trade, Government; Gateway to Latin America! 65,800 New Jobs ( ) Fueling Demand for Office & Industrial Space! State Forecasts 90,000 New Jobs ( ): 15,000/Year! ERA: 211,000 New Jobs ( ): 14,000/Year! Expanding High-tech: InternetCoast Initiative, Telecom Hotels

23 Key Economic Indicators: Miami-Dade Visitor Trends! Significant Economic Impact: 9.8 Million Annual Visitors in 1999, Including 5.4 Million International Visitors! 900,000 Convention Delegates Generate $1 Billion in Expenditures, 2.4 Million Roomnights! 1.9 Million Visitors Stayed in Airport/West Dade! MIA: 33.9 Million Passengers in 1999: 2.7% Sustained Annual Growth ( )

24 Office Market Conditions Miami-Dade (2000)! Inventory: 31.7 Million Sq. Ft.! Employment Growth Fueling Strong Demand! Average Annual Net Absorption for Miami-Dade: 871,500 Sq. Ft. Since 1995! Declining Vacancies: 8.6% at the end of 2000 & Increasing Rents Despite 2.85 Million Sq. Ft. of New Construction! Average Rents: $23.38 PSF (end of 2000)! Years to Stabilize: 4.3

25 Airport/West Dade Office Market Conditions! Inventory: 6.6 Million Sq. Ft. (21% of County)! Average Annual Net Absorption: 285,000 Sq. Ft. Since 1995 (33% of County)! Additions to Supply: 1.6 Million Sq. Ft. Since 1995! Declining Vacancies Since 1998: 10.6% (end of 2000)! Increasing Rents: $20.89 PSF Average! Years to Stabilize: 4.2! 2001 Deliveries are 30% Pre-leased: 1.1 Million Sq. Ft.! Waterford at Blue Lagoon! Build-to-Suits: Burger King, Visa International! Proposed Projects: World Trade Center at Radisson Mart Plaza

26 Industrial Market Conditions Miami-Dade! Inventory: 164 Million Sq. Ft.! Demand Generators: New Residential, Import/Export, Latin American Trade, Airport Cargo, Relocations! Market is Stable: 5.5% Vacancy! Average Annual Net Absorption: 2.0 Million Sq. Ft. Since 1990! Years to Absorb Vacant/New Inventory: 4+! Under Construction: 1.7 Million Sq. Ft.! Average Rents: $5.86 PSF! Depth of Market for Telecom Hotels: How Much Vacant Space Converted?

27 Airport/West Dade Industrial Market Conditions! Inventory: 49.9 Million Sq. Ft. (30% of County)! Vacancy: 7%! Strongest Net Absorption: 1.2 Million Sq. Ft. (2000)! Annual Average Absorption: 575,000 Sq. Ft.! Highest Average Rents: $8.44 PSF (end of 2000)-- Hybrid Product! Years to Absorb Vacant/New Inventory: 6! Under Construction: 450,000 Sq. Ft.! County: 3,000 Acres of Vacant Industrial Land! County: New Development to Absorb 111 Acres Per Year ( )

28 Hotel Market Conditions Miami-Dade! Inventory: 41,500 Rooms! 14th Largest Lodging Market in U.S. (2000)! Drivers: Tourism, Conventions, International Trade! Stable Annual Occupancies: 68.6%! Additions to Supply: 6,200 Rooms (15%)! Under Construction: 3,900 Rooms! Luxury, Upscale Product to Brickell, South Beach, Coconut Grove! Supply/Demand Imbalance Near-term

29 Hotel Market Conditions Airport/West Dade: Business-Class! Inventory: 2,365 Rooms! Great Performance: 79% Annual Occupancy (1999 data), $95 ADR (2000 data)! Revenue/Available Room: $76 Airport/West Dade: Limited Service! Inventory: 1,776 Rooms! Even Better: 82% Annual Occupancy, $70 ADR! Revenue/Available Room: $57! Loss of 850 Rooms in Submarket Due to MIC Land Acquisition! Limitations: Availability of Capital

30 Demand Analysis Multi-tenant Office (Tables 35-37)! Employment-based Demand Model! Assumes Constant 35% Apportioned Share to Airport/West Dade, ! Assumes MIC Captures 25% to 40% of Demand Variables Driving Demand! Conservative Employment Forecasts! Availability of Vacant Land! Near-term Recession/Slower Growth! Emergence of Non-traditional Office Environments Program: 1.9 Million to 2.1 Million Sq. Ft.

31 Demand Analysis Flex-tech/Industrial (Tables 38-39)! Employment-based Demand Model! Assumes Constant 35% Apportioned Share to Airport/West Dade, ! Assumes MIC Captures 10% to 205% of Demand Variables Driving Demand! Conservative Employment Forecasts! Availability of Vacant Land (County: 3,000+ Acres)! Near-term Recession! Demand for Telecom Hotels Uncertain Program: 1.5 Million to 1.9 Million Sq. Ft.

32 Demand Analysis Hotel (Tables 40-41)! Primary Drivers of Demand: Airport/West Dade Visitors, On-site Employees! Assumes Constant 2.1% Annual Growth Rate in Visitor Market, ! Assumes Airport/West Dade Capture of Visitors Remains Unchanged: 18.3% Variables Driving Demand! Conservative Employment Forecasts Reduces Demand for Roomnights! Breakeven Annual Occupancy: 70% Program: 1,900+ Hotel Rooms

33 Demand Analysis Retail (Tables 42-43)! Oriented to On-site Users: Employees, MIC Employees, Hotel Guests, Commuters & MIC/MIA Passengers! Assumes Minimum Annual Employee Expenditures of $2,400! Required Productivity (Sales): $350 Per Sq. Ft.! Tenant Types: Convenience, Service, Restaurants Variables Driving Demand! Construction Phasing! Critical Mass of Tenants! Locational Considerations: Visibility, High Traffic Program: 100,000 Sq. Ft.

34 Program Summary (20 Years) MIC Core! Multi-tenant Office: 500,000 to 800,000 Sq. Ft.! Retail: 100,000 Sq. Ft.! Hotel: 700 to 900 Rooms! Business Park/Flex-tech: N/A Subtotal: 1,300,000 to 1,800,000 Sq. Ft. Associated Outparcels! Multi-tenant Office: Up to 1,400,000 Sq. Ft.! Retail: N/A! Hotel: 1,000 to 1,200 Rooms! Business Park/Flex-tech: 1,500,000 to 1,900,000 Sq. Ft. Subtotal: 3,800,000 to 4,500,000 Sq. Ft.

35 10 Minute Break

36 Presentation World Trade Center Miami

37 WORLD TRADE CENTER MIAMI BRIEFING

38 World Trade Center Miami! History! Mission --Foster and Enhance Two-Way Trade Activities for Members --Promote Miami as the Trade and Logistics Center of the Americas

39 World Trade Center Miami Economic Impact! $1 Billion in International Sales Produced by WTC Shows in Last 2 Years! $38 Million in Local Economic Impact from Trade Activities! Contact with over 22,000 International Executives

40 Expertise: Trade Shows! Americas Food and Beverage Trade Show and Conference! Air Cargo Americas! SeaCargo Americas! Americas Property and Investment Show! Others-Under Development

41 Expertise: E-Commerce Products! Weekly Trade Opportunity Alerts! Trade Information Services! floridaproducts.org! worldtrade.org! wtca.org! tradecard.com

42 Expertise: Trade Advocacy! Logistics Issues --4 th Runway at Miami International Airport! Free Trade Area of the Americas! Trade Promotion Authority! Andean Trade Preference Act

43 Expertise: World Class Services! Appointments! Connections! Briefings! Information! Off-shore Programs! Trade Missions! Discounts

44 Expertise: World Class Events! International Achievement Award Dinner! State of the Ports Luncheon! Trader/Maker Alliance! Incoming Buyer Missions

45 World Trade Centers Association! Licenses World Trade Centers! Founded in 1968! 301 Centers in 91 Countries! 2 Million Members and Affiliates! Dedicated to Enhancing Global Trade

46 Association License Requirements! Signature Real Estate Facilities Dedicated to International Trade Activities! International Trade Services for Local Community

47 Types of World Trade Centers! Global Centers! Regional Centers! Small Markets! Single Use Facilities! Airport Centers

48 Value of WTCM Brand to a Real Estate Project! WTC Economic Impact Analysis Study 2001! WTCS Enjoy Increased Rents and Hotel Room Rates as Compared to Comparable Properties --Rental Rates: 48%+ --Hotel Rates: 58%+

49 Value of WTCM Brand to a Real Estate Project! Brand Associated with State-of-the- Art Facilities Worldwide! Known Internationally as Centers of Excellence in E-Commerce! Record of Licenses Valued at Millions (USD)

50 Use of World Trade Center Designation/ Brand! WTCM has Exclusive Rights to Establish WTC Project in Miami-Dade! WTCM Has Exclusive Use of WTCA s Trademarks, Trade Names and Service Marks in Respective Area

51 World Trade Center Miami Requirements! Building Branding! Place World Trade Center Miami Name, Logo and Appropriate Signage in Highly Visible Area on the Exterior of the Building! 5,000 sq. ft.! Free Parking for 10 Staff! Meeting and Conference Room Facilities! Right of First Refusal to Operate an Office Colony! Trade Show Space

52 World Trade Center Miami Benefits to Developer! Real Estate Premiums! Brand Naming Rights! Global Recognition! $840,000 of Advertising at Miami International Airport! $1 Million in Donated Advertising! Assistance in Recruiting Tenants Globally! World Class Events! Development Potential for One-Stop Center for International Trade and Logistics

53 Tenant Recruitment: Miami s Competitive Edge Multinational Corporations & Banking Institutions International Trade & Support Services Foreign Trade Offices International Trade & Financial Associations Latin American & Pan-regional Media Companies, e.g:! Discovery Latin America! Weather Channel! Ideas Publishing Group (Vogue, Newsweek, Glamour, Motor Trend and other titles, en español)! Telemundo Internacional

54 World Trade Centers! World Trade Centers Enjoy Free Rental Rates and Other Donated Services Globally --Denver/Brookfield --Moscow --Arab Block Nations --Washington, D.C. --Hong Kong --Sao Paulo, Brazil --San Diego

55 Presentation Empowerment Trust, Inc.

56 Miami Dade Empowerment Trust Leverage federal, state, and county funding in order to create new job and business opportunities, and improve the sustainability of the economically impacted neighborhoods of the Empowerment Zone.

57 Employment Tax Credits " Tax Credit of 20% wages for hiring EZ residents " Maximum of $3,000 per year/per employee " Excess credits can be carried forward

58 Workforce Development! $1 million investment in training & education for ! Focus on construction trades! Custom tailored training

59 Other Resources! Banking Partnership! Brownfield Economic Development Initiative! Brownfield Survey

60 Developer Incentives! Lease back and financial contributions! DRI exemption! Site acquisition! Zoning modifications! Improved roadways and site access! Utilities relocations

61 Proposal Requirements! General information! Format of proposal! Communication with FDOT

62 General Information! Proposals due March 3, 2003 by 2:00 pm EST! Received at Earth Tech offices! Non-refundable application fee of $5,000.00! Loose-leaf notebook (8 ½ x 11 inch)! One original and 10 copies

63 Format of Proposal! Letter of introduction and executive summary! Letter of intent! Disclosure letter! Individual tabbed sections

64 Individual Tabbed Sections! Tab 1 - Proposer entity structure and organization chart! Tab 2 - Proposer financial information! Tab 3 - Qualifications of proposer! Tab 4 - Proposer development plan! Tab 5 - Financing plan

65 Tab 1 Proposer Entity Structure and Organization Chart! Composition of the team! Authorized point of contact and key individuals! Relationships among the firms! Ownership interest and functions of equity participants

66 Tab 2 Proposer Financial Information! Financial capability and capacity! Audited financial statements! Lender credit ratings! Confirmation of bonding limits

67 Tab 3 Qualifications of Proposer! Seeking multi-disciplinary team:! Design! Build! Finance! Market! Manage, operate and maintain! Key managers proposed for the MIC! Specific information on five (5) relevant projects! References

68 Tab 4 Proposer Development Plan! Base plan (required)! Alternative plan (optional)! Required elements:! Physical development plan! Management plan! Schedule! Estimate of development costs! Hotel management and marketing plan! Transportation facility maintenance plan

69 Tab 5 Financing Plan! Sources and uses of funds pro forma! Distinguish between guaranteed rent and participation rent! Distinguish between transportation facilities and commercial uses! Term of lease

70 Communication With FDOT! All communication in writing directed to FDOT official contact person: Nick Serianni! Deadline for written inquiries January 20, 2003! Deadline for responses to written inquiries January 27, 2003

71 Selection Process and Schedule! Committee structure! Initial feasibility determination! Oral presentations! Selection of proposer! Negotiation of lease! Schedule of important events

72 Committee Structure Technical Review Committee! Members include FDOT employees and consultants! Evaluates proposals and oral presentations! Makes recommendations to Selection Committee! Initial feasibility determination! Final ranking of proposers

73 Committee Structure Selection Committee! Comprised of FDOT District 6 management! Acts on recommendations from Technical Review Committee! Initial feasibility determination! Final ranking of proposals

74 Initial Feasibility Determination! Determination based on whether proposals meet threshold criteria! Threshold criteria include! Financial capability of proposer! Qualifications of proposer! Completeness of proposer development plan

75 Oral Presentations! Limited to proposers meeting initial feasibility determination! Focus on objectives of the joint development procurement! Presentations limited to one hour! 30 minutes presentation! 30 minutes discussion with Technical Review Committee

76 Selection of Proposer! Based on oral presentations and content of feasible proposals! Evaluation criteria include:! Financial feasibility of proposal (50 points)! Integration of all component parts of MIC Core (25 points)! Proposer approach and capabilities (25 points)

77 Selection of Proposer (continued)! Technical Review Committee evaluates, scores and recommends a ranking of feasible proposals! Selection Committee acts on recommended rankings! Proposers notified of results! Lease negotiations begin with first ranked proposer

78 Schedule of Important Events! Deadline for written questions 01/20/03! Deadline for responses 01/27/03! Proposals due 03/03/03! Initial feasibility determination 03/25/03! Oral presentations 04/15/03! Selection of proposer 04/17/03

79 Questions