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Universal Boulevard District
Orlando, FL |
Tourism District Mixed-Use
Components: Retail, Hotel, Convention Center, Mass Transit
Project Value: $2 billion
SAG was the financial advisor to the Universal Boulevard Property Owners Association and Orange County regarding the public and private development of the area surrounding the 10 million square foot convention center, the second largest center in the U.S. Assets to be developed included 5,000 convention hotel rooms; 500,000 square feet of retail, restaurants and entertainment; 10,000 parking spaces; a 3-mile elevated transit system; and seven pedestrian bridges.
SAG focused on both public and private investments. From the public perspective, SAG worked with existing and potential new investors to create a Community Development District (CDD) that would be empowered to self assess to fund infrastructure and to implement an additional 1% sales tax to fund the transit system. From the private investment perspective, SAG worked with the client team to solicit private investment for the hotel and retail components. Investors were identified for Phase I of the retail (250,000 sf) and for the first 1,500 room hotel.
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The Westin Charlotte
Charlotte, NC |
Convention Hotel
Components: 700-room Convention Hotel
Project Value: $170 million
SAG provided pre-development project management services for the City of Charlotte for the development of The Westin Charlotte, a 700-room convention hotel adjacent to the Charlotte Convention Center. The hotel was privately financed, with the City making the project financially feasibly by building the hotel's meeting space and parking. The City also participated in conduit financing. SAG led a multi-faceted team assisting the City with evaluating developer proposals, assessing private developer incentive requests, outlining public-private partnership options, contract negotiations, creating an industry leading hotel room block agreement, and managing the City Council communication process. Over a period of eight months, SAG took the project from concept to reality, significantly reducing the public sector involvement. The hotel opened in 2003.
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Raleigh Marriott City Center
Raleigh, NC |
Convention Hotel
Components: 400-room Convention Hotel
Project Value: $60 million
SAG structured the public-private partnership for the development of the 400-room Raleigh Marriott City Center Hotel adjacent to the new Raleigh Convention Center. The hotel opened in 2008 and was financed privately, with the City providing an upfront grant and a below-market parking arrangement to make the project financially feasible. Our role involved soliciting potential private developer partners, interviewing and short listing candidates, assessing the public versus private finance approaches, negotiating with the top two candidates, negotiating detailed term sheets and contracts with the selected partner, negotiating a room block agreement, and various other activities to create a successful public-private partnership.
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Richardson Renaissance Hotel and Conference Center
Richardson, TX (Dallas suburb) |
Conference Center Hotel
Components: 336-room Conference Center Hotel
Project Value: $30 million
SAG prepared a feasibility study and structured a public-private private partnership for the development of the Richardson Renaissance Hotel and Conference Center in the Galatyn Park area. The multifaceted partnership entailed a privately financed hotel, a city land donation, public conduit financing of the conference center (public debt paid by hotel operating cash flows), and a 20-year nominal lease of parking spaces. The project was developed by J.Q. Hammons Hotels and opened in 2001.
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La Vista Embassy Suites Hotel
and Conference Center
La Vista, NE |
Conference Center Hotel
Components: 257-room Hotel & Conference Center
SAG was engaged by the City of La Vista, NE to help negotiate a public-private partnership for the development of a hotel and conference center. The City had been in preliminary discussions with John Q. Hammons Hotels to build the city's first hotel. SAG represented the City to help structure the transaction with the developer. Ultimately the project was primarily funded by private investment with the City sharing in land costs for the conference center and parking components.
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Norfolk Waterside Convention Center Contract Negotiation
Norfolk, VA |
Management Contact Negotiation
Components: 405-room Hotel; 60,000 sf Meeting Space
SAG represented the City of Norfolk, the Norfolk Redevelopment and Housing Authority, and the Norfolk Convention and Visitors Bureau in their renegotiation of the Norfolk Waterside Convention Center management contract as part of the sale of the hotel between private parties. The convention center and 405-room Marriott was originally developed as a single asset under a public-private partnership with the private sector investing in the hotel and the public sector investing in the convention center. The hotel management company managed both the hotel and convention center. SAG's advisory services encompassed a variety of related agreements, including the Operating Agreement, Catering Agreement, Hotel Room Block Agreement, and other transaction related documents, and addresses issues such as general terms and conditions, allocation of profits/deficits, capital reserve funding, operational control, room block parameters, service standards, insurance, budget process, financial reporting, termination, non-compete provisions and others. The original management contract required the City to fund operating shortfalls and a reserve fund for capital replacements. SAG was able to renegotiate the management contract with the new hotel management company limiting the City's exposure to capital replacement funding only. The private sector assumed responsibility for all operating shortfalls.
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