Escolar Documentos
Profissional Documentos
Cultura Documentos
Submitted By:
Garfield Traub Development Starwood Hotels and Resorts Turner Construction Company Sundt Construction DLR Group
Table of Contents
I II III IV V VI VII
Executive Summary
Sustainability
Development Schedule
Capital Plan
Exhibits
Executive Summary
On July 30, 2008, the City of Tucson (City) and the Rio Nuevo Multipurpose Facilities District (District) entered into a Pre-Development Agreement (Agreement) with Garfield Traub Development, LLC (GTD) for the pre-development planning of a Sheraton-brand Convention Headquarters Hotel (Hotel). The Hotel will be located adjacent to the Tucson Convention Center (TCC) on land owned by the District. The first requirement of the Agreement was for GTD to lead a procurement process for a design-builder of the Hotel. The procurement process would be led by GTD with input from the City and District and would be in compliance with all applicable laws, ordinances and regulations. GTD completed the procurement process with the selection of a design-build team that included a joint venture between Turner Construction Company and Sundt Construction, Inc. as design-builder (Contractor) and DLR Group as architect (Architect). GTD, along with its Hotel operator, Starwood Hotels and Resorts (Starwood) and its selected design-build team, comprised the group that completed the work under the Agreement and are hereinafter referred to as the Team. In addition to the Hotel, the Team would include in its report as part of this Agreement construction of a new east entrance to the Tucson Convention Center as Phase I of hotel construction, and an exhibit hall and meeting space expansion of the TCC along with a new parking garage. The hotel development (including the new east entrance to the TCC), TCC expansion and parking garage are collectively referenced to as the Project. The scope of services under the Agreement included final site determination in connection with the Citys area-wide master planning, preliminary site plan and hotel concept design, preliminary hotel pricing (budget), preliminary hotel operating pro forma, project schedule and a capital plan including a private ownership model and a tax-exempt financing model. The final site selection by the City and agreed to by the Team is south of the original site contemplated by GTD in its initial proposal. This new site meets the requirements of area-wide master planning and provides good connectivity to the Phase I TCC expansion. GTD was also asked to work with Starwood to determine the appropriate number of rooms for the Hotel based upon the phased TCC expansion, with consideration given to the HVS TCC expansion study dated July 23, 2008, and the C.H. Johnson Consulting Convention Center Redevelopment Feasibility Analysis dated March 2007. Starwood and GTD determined that the appropriate room count range for the Hotel should be between 520 to 550 rooms. Due to the significant level of public interest in the Project, the City and District asked the Team to include the public as much as reasonably possible during the concept design stage of this pre-development period. The City and the Team agreed to a series of public meetings including the following:
Pre-Development Agreement Services Report
3
Executive Summary
Design Charrette Public Meeting #1 at TCC Public Meeting #2 at TCC Public Meeting #3 at TCC
November 19, 2008 December 15, 2008 January 26, 2009 March 9, 2009
All of the meetings were well-attended and feedback from the public was incorporated into the final concept design. The ultimate goal of the Pre-Development Period is to provide the City and District a reliable budget for the Project and operating pro forma for the Hotel so that they and their underwriters, financial advisors and strategic partners can determine if the Project is financially feasible and can be capitalized under terms acceptable to the public sector. Team guidelines for this period were as follows: A first-class, full-service Hotel with appropriate meeting space; High quality and contextually appropriate urban design; TCC expansion west of the existing exhibit hall; Parking to replace any displaced surface parking and support the Project; Concept design in as much detail as necessary to give an accurate budget that should not exceed the guaranteed maximum price provided during the design phase after the completion of construction drawings; The Hotel operating pro forma should reflect union operations; A LEED Silver designation for the Hotel is desirable to the City.
Given this initial guidance, the first order of business for the team was to collect all site data available, including a boundary survey, and begin the process of fitting the Project on the site. The site plan, architectural floor plans, elevations, sections and renderings have been developed and continually refined based on the feedback from the Team, the City and District, and the public. The process of reviewing, value-engineering and re-drawing has continued through the period to ensure that the final program results in the most efficient buildings possible on the site. The final space allocation program, after several design revisions, is summarized on the following page in Table 1-1. The final concept design including site plan, floor plans, elevations and renderings is included in a separate package accompanying this report.
Executive Summary
Another important early step in the process was to define building systems in the hotel such as structural, mechanical, plumbing, electrical, lighting, vertical transportation and fire protection. Understanding of these system assumptions by the design-builder are critical for the budgeting process. The team selected highly qualified subcontractors to assist in the process. Design narratives describing these systems and assumptions are included in the separate concept design package. When the initial space allocation program was complete, Starwood prepared an updated operating pro forma. The first operating pro formas were prepared during the initial RFP process and have been refined to reflect the current room count and net meeting room square footage. The final pre-development period operating pro forma, summarized in Table 1-2 on the following page, reflects the current space allocation program, and anticipated opening date of July 2012.
Executive Summary
Average daily rate Occupancy Total revenue Departmental profit Gross operating profit Operating income
From the very beginning of the pre-development period, the budgeting process has been actively underway. Starting with site selection, our design-build team began collecting budget data. They have been studying the site, reviewing concept plans and system narratives, and meeting with subcontractors in order to establish a preliminary budget. Following, in Table1-3, is a summary budget. The complete project budget is shown in Section III of this submission.
Table 1-3 Summary Budget ($000) Convention Center $33,987 $4,744 $38,731 Parking Garage $31,300 $1,887 $33,187
The total Project schedule encompasses the three phases of development: pre-development, design and construction. Approximate timing of the project phases is as follows in Table 1-4: Table 1-4 Summary Project Schedule Pre-development phase complete Capitalization plan approved /NTP-Design phase Start of design phase Construction start east convention center entrance Design phase final GMP Construction start hotel and convention center Grand opening
Pre-Development Agreement Services Report
6
April 2009 May 2009 May 2009 September 2009 December 2009 March 2010 June 2012
Executive Summary
The Sheraton Tucson Convention Center Hotel has been designed to serve the present and future needs of the Tucson Convention Center and the area surrounding it, including the future arena. It is designed to be a truly urban hotel, reflecting both the proud heritage and the future of the City of Tucson. It will be built using the most contemporary and innovative construction technology, and will serve as an industry leader in sustainable design while meeting all industry standards for a first-class, full-service hotel. Garfield Traub Development could not be more proud of its Teams effort during this pre-development period, and is appreciative of the guidance from both the City and District as well as direct input from the public. We have taken a difficult and irregular site and designed a stunning headquarters hotel that is both efficient and compatible with the neighborhood and the Tucson Convention Center. It will serve the City of Tucson for decades to come and will not only enhance the performance of the TCC, but will also serve as the major catalyst for the future development of the Rio Nuevo Multipurpose Facilities District. The concept plan, budget, operating pro forma and development schedule included in this package are diligently researched and realistic. The team is confident the Project can be delivered to the City and District as presented, and looks forward to working with the City and District to make it a reality.
Sustainability Narrative
The Sheraton Tucson Convention Center Hotel team will continue to strive to achieve the highest level of sustainable design for this project and to work with the City of Tucson to implement the appropriate level of pilot programs to lead by example as a City Project. Our Teams commitment to effective, responsible architecture, engineering, planning and interiors services manifests itself through our capacity to implement integrated designs that consider site, building and space as interrelated systems. As a multidisciplinary design firm, DLR Group is uniquely positioned to leverage in-house expertise and custom sustainable design tools to create environmentally, economically and culturally effective facilities. As an introduction to this process one of the first activities will be to host an eco-charette to determine what strategies and ideas could be incorporated into the project. This activity will include all members of the development team, as well as the city and will define our environmental and sustainable goals and milestones to achieve them. Listed below are some specific strategies that the team will undertake by category: LEED Certification The project will be registered with the USGBC upon inception and will apply for LEED silver certification upon completion and commissioning. The intent of the design team is to use the LEED score sheet as a sustainable opportunity matrix, and to incorporate a holistic approach which encompasses site-related issues, water use reduction, optimized energy performance, recycled and renewable materials, indoor environmental quality, and innovation in design. A preliminary LEED 2009 score sheet is included following this narrative. Sustainable Sites The urban location of this project allows for the use of public transportation (modern street car line) and existing infrastructure. Rainwater from the roof and plaza areas will be collected and stored onsite to be re-used for irrigation. Demolition of the existing west entry and the recycling and re-use of existing materials on site to minimize haul off of unused material. Water Efficiency The building will utilize water efficient fixtures to reduce the burden on municipal supply and wastewater systems. The site will also be designed with native landscaping that requires minimal irrigation.
Pre-Development Agreement Services Report DRAFT - CONFIDENTIAL
9
Sustainability Narrative
Energy & Atmosphere The building will have a high performance envelope and energy efficient lighting and mechanical systems allowing it to perform approximately 20-25% better than a typical building. Passive strategies will be incorporated into the mechanical system to capitalize on the seasonal temperature swings such as using the cool nighttime air to help cool the building. The project will also investigate using highly efficient district energy services. Materials & Resources The project will use recycled and regional materials. A construction waste management plan will be used to recycle construction waste such as cardboard, metal and concrete to reduce the amount of material sent to the landfill. Indoor Environmental Quality The building will be designed to maximize interior natural day lighting, reducing the amount of required artificial light.
LEED for New Construction and Major Renovations 2009 Project Scorecard
Project Name: Project Address:
Yes ? No
19 Y Y Y
Sustainable Sites Prereq 1 Credit 1 Credit 2 Credit 3 Credit 1.1 Credit 1.2 Credit 1.3 Credit 1.4 Credit 5.1 Credit 5.2 Credit 6.1 Credit 6.2 Credit 7.1 Credit 7.2 Credit 8 Construction Activity Pollution Prevention Site Selection Development Density & Community Connectivity Brownfield Redevelopment Alternative Transportation, Public Transportation Access Alternative Transportation, Bicycle Storage & Changing Rooms Alternative Transportation, Low-Emitting & Fuel-Efficient Vehicles Alternative Transportation, Parking Capactiy Site Development, Protect or Restore Habitat Site Development, Maximize Open Space Stormwater Design, Quantity Control Stormwater Design, Quality Control Heat Island Effect, Non-Roof Heat Island Effect, Roof Light Pollution Reduction
26 Required 1 5 1 6 1 3 2 1 1 1 1 1 1 1
Points
Comments
? Y Y Y Y ? ? ? ? ? Y ?
Yes ? No
The urban location suggests this credit is possible pending site testing and analysis 3 bus routes and 10 different bus stops w/in .25 miles provide preferred parking for fuel efficient vehicles confirm w/ zoning code (1:key, 1:50gsf assembly)
verify existing imperviousness, rainwater harvesting permeable paving, green roof, rain gardens vegetated swales provide roof on garage? high albedo roof / green roof
4 Y Y
Water Efficiency Prereq 1 Credit 1.1 Credit 1.2 Credit 2 Credit 3 Water Use Reduction, 20% Reduction Water Efficient Landscaping, Reduce by 50% Water Efficient Landscaping, No Potable Use or No Irrigation Innovative Wastewater Technologies Water Use Reduction x 30% Reduction 35% Reduction 40% Reduction
10 Required 2 2 2 2 to 4 2 3 4
Points
? ? Y
11
Yes
No
15 Y Y Y 6
20
Energy & Atmosphere Prereq 1 Prereq 2 Prereq 3 Credit 1 Fundamental Commissioning of the Building Energy Systems Minimum Energy Performance: 10% New Bldgs or 5% Existing Bldg Renovations Fundamental Refrigerant Management Optimize Energy Performance 12% New Buildings or 8% Existing Building Renovations 14% New Buildings or 10% Existing Building Renovations 16% New Buildings or 12% Existing Building Renovations 18% New Buildings or 14% Existing Building Renovations 20% New Buildings or 16% Existing Building Renovations Y 22% New Buildings or 18% Existing Building Renovations ? 24% New Buildings or 20% Existing Building Renovations ? 26% New Buildings or 22% Existing Building Renovations ? 28% New Buildings or 24% Existing Building Renovations ? 30% New Buildings or 26% Existing Building Renovations ? 32% New Buildings or 28% Existing Building Renovations ? 34% New Buildings or 30% Existing Building Renovations 36% New Buildings or 32% Existing Building Renovations g g g 38% New Buildings or 34% Existing Building Renovations 40% New Buildings or 36% Existing Building Renovations 42% New Buildings or 38% Existing Building Renovations 44% New Buildings or 40% Existing Building Renovations 46% New Buildings or 42% Existing Building Renovations 48% New Buildings or 44% Existing Building Renovations On-Site Renewable Energy ? 1% Renewable Energy ? 3% Renewable Energy 5% Renewable Energy 7% Renewable Energy 9% Renewable Energy 11% Renewable Energy 13% Renewable Energy Enhanced Commissioning Enhanced Refrigerant Management Measurement & Verification Green Power
Points
13
Credit 2
Y Y Y Y
Yes ? No
7 Y
14 Required
Points
N Y Y N N Y Y Y Y N Y
Yes ? No
Credit 1 Credit 1.1 Credit 1.2 Credit 1.3 Credit 1.4 Credit 2.1 Credit 2.2 Credit 3.1 Credit 3.2 Credit 4.1 Credit 4.2 Credit 5.1 Credit 5.2 Credit 6 Credit 7
Building Reuse Maintain 55% of Existing Walls, Floors & Roof Maintain 75% of Existing Walls, Floors & Roof Maintain 95% of Existing Walls, Floors & Roof Building Reuse, Maintain 50% of Interior Non-Structural Elements Construction Waste Management, Divert 50% from Disposal Construction Waste Management, Divert 75% from Disposal Materials Reuse, 5% Materials Reuse, 10% Recycled Content, 10% (post-consumer + 1/2 pre-consumer) Recycled Content, 20% (post-consumer + 1/2 pre-consumer) Regional Materials, 10% Extracted, Processed & Manufactured Regionally Regional Materials, 20% Extracted, Processed & Manufactured Regionally Rapidly Renewable Materials, 2.5% of total material cost Certified Wood
1 to 3 1 2 3 1 1 1 1 1 1 1 1 1 1 1
N/A
12 Y Y Y
Indoor Environmental Quality Prereq 1 Prereq 2 Credit 1 Credit 2 Credit 3.1 Credit 3.2 Credit 4.1 Credit 4.2 Credit 4.3 Credit 4.4 Credit 5 Credit 6.1 Credit 6.2 Credit 7.1 Credit 7.2 Credit 8.1 Credit 8.2 Minimum IAQ Performance Environmental Tobacco Smoke (ETS) Control Outdoor Air Delivery Monitoring Increased Ventilation Construction IAQ Management Plan, During Construction Construction IAQ Management Plan, Before Occupancy Low-Emitting Materials, Adhesives & Sealants Low-Emitting Materials, Paints & Coatings Low-Emitting Materials, Flooring Systems Low-Emitting Materials, Composite Wood & Agrifiber Products Indoor Chemical & Pollutant Source Control Controllability of Systems, Lighting Controllability of Systems, Thermal Comfort Thermal Comfort, Design Thermal Comfort, Verification Daylight & Views, Daylight 75% of Spaces Daylight & Views, Views for 90% of Spaces
15 Required Required 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Points
? Y Y Y Y Y Y Y Y Y Y N Y ?
Yes ? No
5 ? ?
Innovation & Design Process Credit 1.1 Credit 1.2 Innovation in Design: Innovation in Design: Provide Specific Title Provide Specific Title
13
6 1 1
Points
? ? ? Y
Yes ? No
Innovation in Design: Provide Specific Title Innovation in Design: Provide Specific Title Innovation in Design: Provide Specific Title LEED Accredited Professional
1 1 1 1
4 ? ? ? ?
Regional Priority Credits Credit 1.1 Credit 1.2 Credit 1.3 Credit 1.4 Regional Priority Credit: Regional Priority Credit: Regional Priority Credit: Regional Priority Credit: Region Defined Region Defined Region Defined Region Defined
4 1 1 1 1
Points
Yes
No
58 44
Project Totals (Certification Estimates) Certified: 40-49 points Silver: 50-59 points Gold: 60-79 points
Points
14
15
Budget Narrative
Although overall control of the budget lies with the developer, all team members have contributed. Our preliminary project budget summary is on the following page and various supporting details are on subsequent pages. Under our design-build delivery system, prior to starting construction our design-builder will issue a hard cost Guaranteed Maximum Price (GMP). This GMP will include direct construction costs, FF&E and IT, construction contingencies, design and permitting fees, and certain indirect construction costs. Our preliminary estimates for each of these hard cost budget categories are shown in the estimate summary immediately following the preliminary budget summary. Starwood Hotels and Resorts provided the IT budget as well as guidance on the FF&E budget. Design and engineering fees were estimated by our architect, DLR Group. All other costs in the hard cost estimate summary were prepared under the guidance of our design builder. In preparing the hard cost conceptual estimate, our design-builders main objective was to develop a complete scope of work, including those items not yet defined but needed to make the building operational. In order to do this, Turner/Sundt used the following information: program narratives, sketches, renderings, diagrams, elevations, sections, soils information from a near by adjoining site, descriptions of building systems, relevant correspondence, information from construction charettes, and other related information divulged from meetings with the design team. Team members also familiarized themselves with the site location, existing utility locations and have a general understanding of the site logistics. Most importantly, in furnishing an initial construction budget, Turner/Sundt felt that communication of all the project team members is more important than the sole interpretation of and budgeting based on the current level of site plans, floor plans, elevations and narratives. After interpreting the information stated above Turner/Sundt established detailed quantity surveys for each projected scope of work. These quantity surveys were then priced using current market condition square foot costs, verification of costs from suppliers and subcontractors, as well as comparing historical information from past similar projects. This hard cost conceptual estimate and the accompanying written descriptions define the intended scope of the project and becomes the basis of comparison for all future budget updates. This exercise is the first step in the budgeting process and provides an executive look at the proposed project and allows the Team an opportunity to discuss early systems and program alternatives to better plan the project to fit within the confines of the desired budget. The soft costs to complete the preliminary budget summary were estimated by the developer, design-builder, and Starwood based on current market rates, comparable projects and recent experience. Starwood provided detail for the operating supplies and equipment and pre-opening budgets, as shown in the pages that follow. The East entrance allowance and impact fees were estimated by the design builder, with the remaining soft cost budget items provided by the developer. Allocations (when necessary) of various budget items between the hotel, convention center and parking garage are primarily made based on square footages or direct construction costs as appropriate. It is our goal that 1% of the hard construction cost will include commissioning of local artists and artwork in conjunction with the City, District, and Tucson Pima Arts Council. The land upon which the Hotel, TCC expansion and parking garage will be built is currently owned by the District. Since there is no current appraisal for the value of the land, and the improvements which will be built on the land will also be owned by the District, we have excluded land from the budget and our capital plan models. Prior to issuance of bonds to finance the component parts of the Project, the District may have the land appraised and include it as both a source and use of funds in the models.
16
442,365 118,045 410,715 971,125 Total Project 131,159,500 12,948,000 10,529,000 10,090,000 47,100,000 $211,826,500 Cost Per S.F.
$135.06 $13.33 $10.84 $10.39 $48.50 $218.12
Hard Costs (1): Direct FF&E (2) Contingencies Design Indirect (4) Total Hard Costs Soft Costs: City Artwork Operating Supplies and Equipment (2) DCSA Fee (Starwood) $800 per key Impact Fees Pre-opening budget (2) East Entrance Allowance Legal and Closing Costs Developer Overhead & Fee 3.5% Construction Manager (2) Soft Cost Contingency 5.0% Total Soft Cost Total Development Budget Hotel Cost Per Key: Total Hotel Cost per Key Direct Construction Cost per Key $318,259 $168,730
0 6,145,000 420,000 1,584,000 5,365,000 3,000,000 350,000 7,948,000 1,125,000 1,240,600 $27,177,600 $239,004,100
$0.00 $6.33 $0.43 $1.63 $5.52 $3.09 $0.36 $8.18 $1.16 $1.28 $27.99 $246.11
0 6,145,000 420,000 1,092,000 5,365,000 0 250,000 5,555,000 778,000 941,350 $20,546,350 $167,085,850
$0.00 $13.89 $0.95 $2.47 $12.13 $0.00 $0.57 $12.56 $1.76 $2.13 $46.45 $377.71
$0.00 $0.00 $0.00 $0.00 $0.00 $25.41 $0.42 $10.98 $1.53 $1.84 $40.19 $328.11
$0.00 $0.00 $0.00 $1.20 $0.00 $0.00 $0.12 $2.67 $0.40 $0.20 $4.59 $80.80
Reconciliation to Public Model "Deposit to Construction Fund": Total Hotel Development Budget Less: Pre-opening budget Deposit to Construction Fund $167,085,850 $5,365,000 $161,720,850
Notes: (1) Further hard cost detail is shown in the Estimate Summary on the following page. Additional detail for the Estimate Summary is available on request. (2) See additional detail in the pages that follow the Budget Control Report later in this section. (3) Construction period financing is not included in this budget because it varies significantly depending on the capital plan assumptions. In the Public Model capital plan, capitalized interest, reserve deposits and costs of issuance are over $40 million and are added to this budget (see Source and Use of Funds in the Public Capital Plan section of this report). In the Public/Private Model capital plan, the final budget includes $8 million of construction period interest and fees. (4) Indirect costs include permits and taxes, contractor insurance and bonding, and contractor general conditions and fee. (5) The parking garage is currently designed to be aesthetically pleasing, sensitive to the needs of the neighborhood, and fit the current available footprint. As a result of this initial design guidance and certain site conditions and relationship to the convention center expansion, the parking garage is somewhat inefficient and costs more per car than a typical parking garage. During the upcoming design phase, out team will work with the City, District, and outside consultants to get a more efficient, cost effective design.
THIS IS A PRELIMINARY PROJECT BUDGET ONLY, SUBJECT TO CHANGE WHEN FINAL GMP IS ISSUED
17
TURNER/SUNDT JOINT VENTURE Tucson Sheraton Hotel Convention Center Conceptual Pricing Estimate Based on Drawings by DLR 2/05/09 & 3/16/09 Estimate Summary 04/09/09
Rooms $/ Key $/ SF GSF / Room $ $ 525 256,071 $/ Key 355.55 $/ SF 843 Add Cost $ $ 60,394 $/ Key 493.46 $/ SF $/ Car SF/ Car $ $ $ $ 62,120 $/ Key 79.41 $/ SF 28,114.66 354.06 $ $ 74,297 330.43
Meeting Rooms
Total Cost/GSF
Parking Garage
Total Cost/GSF
Building Area General Requirements Demolition Sitework Excavation & Foundations Structure Roofing & Waterproofing Exterior Wall Partitions & Finishes Equipment and Specialties Vertical Transportation Plumbing HVAC Fire Protection Electrical Special Systems Buyout Savings ALLOWANCE
378,110 GSF 4.94 0.11 6.83 10.49 36.38 1.87 28.33 34.66 2.66 10.26 15.23 17.39 4.06 19.62 2.48 1,869,000 41,500 2,582,000 3,966,000 13,754,000 707,000 10,711,000 13,106,000 1,006,000 3,878,000 5,757,000 6,574,000 1,534,000 7,418,000 937,000 (2,219,000)
64,255 GSF 4.95 1.15 6.83 9.28 62.55 7.80 23.86 69.10 14.61 6.33 17.26 29.24 2.72 14.26 2.15 318,000 74,000 439,000 596,000 4,019,000 501,000 1,533,000 4,440,000 939,000 407,000 1,109,000 1,879,000 175,000 916,000 138,000 (521,000)
410,715 GSF 4.94 0.39 6.83 13.09 16.06 0.67 4.20 0.42 0.99 0.93 0.74 0.23 0.56 2.51 0.50 2,030,000 159,000 2,805,000 5,376,000 6,597,000 274,000 1,725,000 174,000 406,000 381,000 302,000 94,000 231,000 1,031,000 205,000
118,045 GSF 4.94 4.24 6.83 14.13 29.12 4.11 18.74 34.34 4.76 5.24 11.52 18.92 2.51 14.08 2.61 583,000 501,000 806,000 1,668,000 3,438,000 485,000 2,212,000 4,054,000 562,000 618,000 1,360,000 2,233,000 296,000 1,662,000 308,000
971,125 GSF 4.94 0.80 6.83 11.95 28.63 2.03 16.66 22.42 3.00 5.44 8.78 11.10 2.30 11.35 1.64 4,800,000 775,500 6,632,000 11,606,000 27,808,000 1,967,000 16,181,000 21,774,000 2,913,000 5,284,000 8,528,000 10,780,000 2,236,000 11,027,000 1,588,000 (2,740,000)
7.93 35.40 2.22 25.65 42.56 1.18 7.72 12.82 21.10 3.24 16.98
Subtotal Direct $
136,422 $
189
10.12 0.00 4.59 0.72 0.00 0.83 0.74 0.79 6.61
71,621,500 $
3,826,000 0 1,734,000 271,000 0 315,000 278,000 300,000 2,500,000 (277,000)
264
$ 16,962,000 $
NA
53
$
NA NA NA NA NA NA NA NA
21,790,000 $
176
$
NA NA NA
20,786,000
135
3.94 1.54 1.79 0.50 2.14 0.48 0.42 0.31 2.57
131,159,500
3,826,000 1,500,000 1,734,000 485,000 2,077,000 467,000 412,000 300,000 2,500,000 (353,000)
Starwood's FF&E / IT Guest Rooms BOH/ Public Technology Services Budget- per Starwood "Ving Card" Lock System Budget Audio Visual Budget- Based on Sheraton Standards Low Voltage Cabling (excluded from Tech Budget) Security System (assumes Paging/Radio w. Tech Budget) Signage (interior & exterior)- placeholder Kitchen and Laundry Equipment- placeholder FF&E Buyout Savings ALLOWANCE
(76,000)
Subtotal FFE
17,042
24
6.39 0.00 10.65
8,947,000 $
2,417,000 0 4,028,000 (810,000)
38
9.06 0.00 15.11
2,449,000 $
582,000 0 971,000 (190,000)
654,000 0 545,000
13
5.68 0.00 14.08
1,552,000
670,000 0 1,662,000
13
4.45 0.00 7.42
12,948,000
4,323,000 0 7,206,000 (1,000,000)
Construction Contingency Escalation to March 2010 Design / Estimating Contingency Design / Estimating Contingency Savings ALLOWANCE
Subtotal Contingencies
Design Fees Additional Consultants
10,733
15
15.27 0.29
5,635,000 $
5,775,000 109,000
21
21.79 0.40
1,363,000 $
1,400,000 26,000
3
2.29 0.08
1,199,000 $
940,000 33,000
20
15.04 0.27
2,332,000
1,775,000 32,000
11
10.18 0.21
10,529,000
9,890,000 200,000
Subtotal Design
Building Permit General Conditions Liability Insurance (CCIP) E&O Insurance Builder's Risk Insurance Testing and Inspection - By Owner Payment & Performance Bond Transaction Privilege Tax D/B Contractors Fee
11,208
16
4.84 21.15 6.41 1.59 0.84 0.00 4.93 15.63 13.45
5,884,000 $
1,829,000 7,996,000 2,424,000 601,000 319,000 0 1,865,000 5,909,000 5,086,000
22
6.74 29.48 9.07 2.21 1.20 0.00 6.99 22.12 19.05
1,426,000 $
433,000 1,894,000 583,000 142,000 77,000 0 449,000 1,421,000 1,224,000
2
1.35 5.92 1.56 0.45 0.21 0.00 1.20 3.89 3.28
973,000 $
556,000 2,433,000 642,000 183,000 85,000 0 494,000 1,597,000 1,348,000
15
4.50 19.66 5.90 1.47 0.78 0.00 4.55 14.35 12.40
1,807,000
531,000 2,321,000 697,000 174,000 92,000 0 537,000 1,694,000 1,464,000
10
3.45 15.08 4.48 1.13 0.59 0.00 3.44 10.94 9.39
10,090,000
3,349,000 14,644,000 4,346,000 1,100,000 573,000 0 3,345,000 10,621,000 9,122,000
Subtotal Indirect
49,579
69
26,029,000 $
97
6,223,000 $
18
7,338,000 $
64
7,510,000
49
47,100,000
224,984
312
0.00 0.00 13.81 12.13 0.95 0.53 11.89 2.19 1.66
$ 118,116,500
0 5,223,000 4,586,000 359,000 200,000 4,497,000 829,000 627,000
442
0.00
$ 28,423,000
0 922,000 779,000 61,000 50,000 1,058,000 263,000 151,000
76
0.00
31,300,000
0
288
0.00 25.41
33,987,000
0 3,000,000
218
0.00 3.09 6.33 5.52 0.43 0.36 8.18 1.63 1.16
211,826,500
0 3,000,000 6,145,000 5,365,000 420,000 350,000 7,948,000 1,584,000 1,125,000 $237,763,500
2.67 0.40
256,071
356
$ 134,437,500
493
$ 31,707,000
18
79
32,613,000
330
39,006,000
245
page 1 of 1
4/20/2009 7:57 AM
Turner/Sundt
1.8 (1.5) PAD = Pend. Add'l Docs. BCR POTENTIAL P BCR APPROVED A BCR REJECTED R Owner STATUS Arch Eng TCCO RESP. DATE REQUIRED COMMENTS
ITEM
DESCRIPTION
Courtyard Paver System - Approx $20/sf ILO of Upgraded Concrete Finish Hotel - 30%, Meeting Rooms 70% Add Rooftop Bar - Includes (1) elevator Core & Shell only. TI by others. Add (2) sets of escalators at South entrance for Convention Center Space.
784,500
784,500
4,105,268
4,105,268
26
720,000
720,000
33
Add Plaza Terrace - Drawing A1-3 outside of Meeting Rooms A (Level 137)
323,067
323,067
42
Maximize floor layouts (Delete (3) Floors from Tower and increase typical floor plate)
(1,733,316)
(1,733,316)
4,199,519
4,199,519
35,696,490
19
Page 1
BOH/Public: 1. Meeting rooms carpet flooring and vinyl wallcovering (1) 2. Misc furnishings allowance 3. Shipping, warehousing allowance Total BOH/public $632,000 $600,000 $268,000 $1,500,000
20
21
22
23
Sheraton Tucson Convention Center Hotel The Westin Baltimore at Camden Yards Technology Budget Summary Pre-Opening Budget Summary
Projected Opening Date: July 1, 2012 Technology Budget Total $ Excludes Tech Services & Travel 1,733,683
Hotel Information:
525 keys, including 47 suites 3 Meal Restaurant - Mgd - 125 Seats Lobby Lounge - Mgd - 20 Seats LINK Caf/Grab & Go - 15 Seats Mtg Space - 50,400 sq feet total Pool Grill - Mgd - 15 Seats Destination Bar - Mgd - 20 Seats Fitness Center w/Core Program (not staffed) Spa with 10 treatment rooms - (approx 5,480 sq ft ) - Mgd Assumes Club Lounge & Floors Assumes Valet Parking Service is Outsourced Assumes Business Center is not manned Assumes In House Laundry Assumes No Kids Club Facility Assumes Gift Shop is Outsourced One Pool - Outdoor
Budget Assumptions
IT Budget does not include the Guest Key Lock System Assumes it is in the GC Budget IT Budget does not include the Audio Visual Systesm Assumes it is in the GC Budget IT Budget does not include the Low Voltage Wiring Assumes it is in the GC Budget Assumes full compliance to facility turnover requirements to operator per the mgmt agreement Assumes no expense for overnight stayover of staff / POA's.
24
5 47
Per Rm $
Total Cost
Accounting & Administrative Offices Employee Facilities Engineering Guestroom Floors ( Ice Machines - 26 Floors ) Guest Rooms Sweet Sleeper-Doubles Sleeper Sleeper-King Televisions ( Guest Rooms Only ) LCD 37" Televisions - LCD 46"- Suites- Pres, Gov & Hosp Only Sheraton Club Lounge Amenities Fitness Center ( Sheraton Gym -3 Bay ) Hostar Housekeeping System Housekeeping Supplies Human Resources Office Furniture Pagers & Radios Purchasing / Loading Dock Area Rooms Dept. SPA (5,480 sq ft) - 10 Treatment Rms, Assumes all Fixed Equipment in FF&E Security Service Promise ( Telephone Items ) Uniforms Kids on Request Items Sub Total Operating & Other
$95 $75 $100 $198 $1,415 $1,800 $1,200 $1,000 $2,000 $40 $195 $595 $120 $30 $325 $95 $50 $75 $185 $50 $25 $310 $15 6,532
49,875 39,375 52,500 104,000 742,875 378,000 378,000 567,000 10,000 21,000 102,375 312,375 63,000 15,750 170,625 49,875 26,250 39,375 97,125 26,250 13,125 162,750 7,875 3,429,375
Mtg Rm Sq Feet
Per Rm Cost
Per Seat Per Sq Ft Cost Cost $500 $350 $350 $325 $9 $34
Other
Receiving - Warehousing - Installation Freight Sales Tax Total OS&E Budget 5% 6% 8% 11,704 245,738 294,885 393,180 6,144,543
25
Sheraton Tucson Convention Center Hotel The WestinBudget Summary Pre-Opening Baltimore at Camden Yards Pre-Opening Budget Summary
Projected Opening Date: July 1, 2012 Staff Plan Total $ Pre-Opening Budget Tota $ Excludes Tech Services & Travel
3,618,574 5,364,766
Hotel Information:
525 keys, including 47 suites 3 Meal Restaurant - Mgd - 125 Seats (Plus: 25 Exterior seats) Lobby Lounge - Mgd - 40-60 Seats LINK Caf/Grab & Go - 15 Seats Mtg Space - 30,250 sq feet total Pool Grill - Mgd - 15 Seats Fitness Center w/Core Program (not staffed) Spa with 10 treatment rooms - (approx 5,480 sq ft ) - Mgd Assumes Club Lounge & Floors Assumes Valet Parking Service is Outsourced Assumes Business Center is not manned Assumes In House Laundry Assumes No Kids Club Facility Assumes Gift Shop is Outsourced One Pool - Outdoor
Budget Assumptions
Management Salaries and Hourly Rates based on existing compensation + annual increase Assumes City of Tucson Provides Pre-Opening Office Space at No Charge - 3,000 sq ft TCO must be received 30 days prior to opening to allow for overnight housing of staff Utilities not included. Construction to cover expense until opening day. Assumes full compliance to facility turnover requirements to operator per the mgmt agreement Any costs related to liquor license cost to be funded out of developers budget Assumes no expense for overnight stayover of staff / POA's.
26
$12,000 $8,000
50.0% $2,000
$33 30 2 $1,980
30
$59,400
30 30
$48,000 $15,000
$500 2 $1,000
30
$30,000
$1,124,400
27
The preliminary operating pro forma for this pre-development study was produced by Starwood. Initially prepared by the feasibility team at corporate headquarters, before being finalized and published, it was reviewed and approved by Starwoods development team and regional vice president of operations. Below is a description of the step by step process Starwood undertakes when developing an operating pro forma. 1. Development Team works with Architecture and Design Team (A&D) to develop a space allocation program in conjunction with owner/developer. 2. Development Team generates a Request for Feasibility to be submitted to feasibility outlining the description and vision of the project, programming, general market strategy and overview, attributes of location, project time line and competitive analysis. 3. Feasibility Team begins process by getting an in depth knowledge and understanding of the market and the project through review of all materials that are available such as market reports, Smith Travel Research (STR) data, web research and feasibility/valuation studies. Feasibility Team also discusses the project with internal Starwood resources including Development Team, Regional Operations Team, General Managers/Directors of Sales and Marketing at local Starwood properties as well as external resources such as consultants and local Convention and Visitors Bureau. 4. Following identification of an appropriate competitive set, Feasibility Team generates a historical and forward-looking supply and demand (S&D) analysis utilizing STR data for the competitive set and the market research noted above. The S&D analysis includes a thorough evaluation of all competitive properties and their relative strengths, weaknesses, market mix and historical performance and identifies the projected position of the subject hotel within that competitive set as it relates to average daily rate (ADR) index, occupancy percentage index and revenue per available room (RevPAR) index as well as market mix. This work results in a projected ADR, occupancy and RevPAR for the subject hotel. 5. Upon establishment of the ADR, occupancy and RevPAR, the Feasibility Team begins building the balance of the pro forma utilizing historical operating data of Starwood operated hotels in similar locations, similar space programming attributes, similar ADR/occupancy/RevPAR performance and similar target markets (i.e. if the subject hotel is located at an airport terminal the Starwood comparable hotels used for the pro forma would be airport locations). Generally, at least five comparable hotels are used to create drivers for the development of the subject property pro forma and each pro forma line item is evaluated on multiple drivers including percentage basis, per occupied room and per available room. 6. Throughout the process of items 4 and 5 above the Feasibility Team will be interfacing with internal Starwood team members including operations, sales and marketing and development to vet certain assumptions and factors. 7. Following completion of the initial draft of the pro forma by the Feasibility Analyst the pro forma is reviewed internally by the Feasibility Team, which generally includes two or three individuals reviewing the draft. After
the Feasibility Team has completed its internal review the draft pro forma is then submitted to the Development Team, which then completes an additional review in conjunction with the Feasibility Team. 8. The draft pro forma is then submitted to the Regional Vice President of Operations for review and feedback by the Regional Operations Team. After feedback is incorporate from the Regional Operations Team the pro forma is modified and resubmitted to the Regional Vice President of Operations for approval. The Regional Vice President of Operations is responsible for providing a final Operations Approval of the pro forma. Such approval is required before any transaction can be submitted to Starwoods Senior Leadership Team Development Committee for transaction approval. The resulting pro forma for the Sheraton Tucson Convention Center Hotel is on the following page. Key assumptions are stated in the notes to the pro forma. Competitive set information and the average daily rate and occupancy calculations follow the pro forma.
Total Rooms Banquets & Catering - Food Banquets & Catering - Beverage All Other F&B - Food All Other F&B - Beverage Total Food & Beverage Spa Telecom Rentals & Other Income Total Revenues Change Departmental Profits: Total Rooms Food & Beverage Spa Telecom Rentals & Other Income Total Departmental Profits Undistributed Operating Expenses: Administrative & General Credit Card Commissions Marketing SPG Fees (% of GOR) Chain Marketing Fees (% GRR) Property Operations & Maintenance Energy Total Undistributed Operating Exps GROSS OPERATING PROFIT Fixed Charges: Real Estate Taxes Insurance Total Fixed Charges EBITDA BEFORE MGMT FEES Management Fees: Base Fees Total Management Fees EBITDA Reserve for Replacement NOI
11,197 3,874 85 41 478 15,674 1,995 555 1,263 351 290 1,464 1,250 7,168 8,507 493 493 8,013 584 584 7,429 584 6,844
72.4% 30.5% 26.9% 14.4% 100.0% 53.6% 6.8% 1.9% 4.3% 1.2% 1.9% 5.0% 4.3% 24.5% 29.1% 0.0% 1.7% 1.7% 27.4% 2.0% 2.0% 25.4% 2.0% 23.4%
21,327 7,380 161 77 910 29,856 3,800 1,057 2,405 668 552 2,789 2,381 13,653 16,203 940 940 15,263 1,113 1,113 14,150 1,113 13,037
100.20 34.67 0.76 0.36 4.28 140.27 17.85 4.97 11.30 3.14 2.59 13.10 11.19 64.15 76.13 4.42 4.42 71.71 5.23 5.23 66.48 5.23 61.25
75.7% 31.6% 29.0% 14.8% 100.0% 56.5% 5.7% 1.9% 3.6% 1.2% 1.9% 4.5% 4.0% 21.9% 34.6% 0.0% 1.4% 1.4% 33.2% 2.5% 2.5% 30.7% 2.5% 28.1%
27,767 8,892 203 93 1,061 38,016 3,847 1,278 2,435 807 688 3,001 2,691 14,746 23,270 965 965 22,305 1,681 1,681 20,624 1,714 18,910
118.87 38.06 0.87 0.40 4.54 162.74 16.47 5.47 10.42 3.45 2.94 12.85 11.52 63.12 99.62 4.13 4.13 95.48 7.20 7.20 88.29 7.34 80.95
77.2% 32.0% 30.0% 15.0% 100.0% 57.9% 5.1% 1.9% 3.2% 1.2% 1.9% 4.0% 3.9% 20.4% 37.5% 0.0% 1.3% 1.3% 36.3% 3.0% 3.0% 33.3% 3.5% 29.7%
33,199 10,236 238 107 1,204 44,984 3,962 1,476 2,508 932 807 3,121 3,010 15,817 29,167 994 994 28,173 2,331 2,331 25,842 2,739 23,103
130.87 40.35 0.94 0.42 4.75 177.33 15.62 5.82 9.89 3.68 3.18 12.30 11.87 62.35 114.98 3.92 3.92 111.06 9.19 9.19 101.87 10.80 91.07
77.2% 32.0% 30.0% 15.0% 100.0% 57.9% 4.9% 1.9% 3.1% 1.2% 1.9% 3.9% 3.9% 19.9% 38.0% 0.0% 1.2% 1.2% 36.7% 3.0% 3.0% 33.7% 4.0% 29.7%
35,433 10,932 254 114 1,286 48,019 4,081 1,576 2,583 995 861 3,215 3,215 16,526 31,492 1,024 1,024 30,468 2,489 2,489 27,980 3,318 24,662
134.64 41.54 0.96 0.43 4.89 182.47 15.51 5.99 9.82 3.78 3.27 12.22 12.22 62.80 119.67 3.89 3.89 115.78 9.46 9.46 106.32 12.61 93.71
77.2% 32.0% 30.0% 15.0% 100.0% 57.9% 4.9% 1.9% 3.1% 1.2% 1.9% 3.9% 3.9% 19.9% 38.0% 0.0% 1.2% 1.2% 36.8% 3.0% 3.0% 33.8% 4.0% 29.8%
36,564 11,260 261 118 1,324 49,527 4,203 1,625 2,661 1,026 888 3,311 3,311 17,025 32,502 1,055 1,055 31,447 2,565 2,565 28,882 3,420 25,461
138.94 42.79 0.99 0.45 5.03 188.20 15.97 6.17 10.11 3.90 3.37 12.58 12.58 64.70 123.51 4.01 4.01 119.50 9.75 9.75 109.75 13.00 96.75
Notes to the Pro Forma: 1. This pro forma assumes an underlying monetary inflation rate of 3% p.a. 2. The pro forma is predicated on the following facilities at the subject property: 525 rooms, 3 Meal Restaurant (5,000sf.), Link Caf (500sf.), Pool Snack Bar (263sf.), Lobby Lounge (900sf.), and 35,095 net sq ft of meeting space. 3. The pro forma also assumes the following amenities: Outdoor Pool, Fitness Center (1,520sf.), Spa 5,500sf. (10 Treat. Rooms), Gift Shop (TBD sf.), and Business Center (275 sf.). 4. Forecast insurance includes terrorism insurance costs and was estimated based on Starwood Risk Management 5. Pro forma assumes property is union operated. 6. Projections assume that the convention center and arena will be renovated and expanded by 35,000 SF of exhibit space and 25,000-30,000 SF of meeting space; any departure from these recommendations would require reassessment of our current forecast. 7. Other Operated Departments include Telecom and Spa. Projections assume no parking revenue to the hotel. Telecom revenue estimated at $2.25 POR, 15% profitability. Spa revenue estimated at $2.50 POR, 30% profitability. 8. Replacement costs assumed to be $319k per key or $167M for purposes of calculating insurance costs. Insurance model provided by Starwood Risk Management. 9. Pro forma assumes base management fee ramp of 2.0% of GOR in Year 1, 2.5% of GOR in Year 2, and 3.0% of GOR in Year 3 and thereafter. For purposes of calculating BMF, the First Operating Year is defined as the first 12-month period. No IMF asssumed. 10. Pro forma assumes FF&E reserve stabilizes at 4% of GOR (Year 1 and stub: 2%; Year 2: 3%; Year 3 and beyond: 4%). 11. No real estate taxes included. It is assumed that the hotel will be publicly funded and therefore exempt from real estate taxes.
DISCLAIMER: THIS ANALYSIS DOES NOT TAKE INTO ACCOUNT NOR MAKE PROVISION FOR ANY POSSIBLE RISE OR DECLINE IN LOCAL OR GENERAL ECONOMIC CONDITIONS. THE PROJECTIONS HAVE BEEN PREPARED BASED ON INFORMATION MADE AVAILABLE TO STARWOOD AND STARWOOD'S GENERAL EXPERIENCE IN THE HOTEL INDUSTRY. HOWEVER, NEITHER STARWOOD NOR ANY OF ITS AFFILIATED OR SUBSIDIARY COMPANIES WARRANTS, GUARANTEES, OR MAKES ANY REPRESENTATION WITH RESPECT TO ANY OF THE PROJECTIONS SET FORTH IN THIS ANALYSIS. PROJECTIONS ARE SUBJECT TO UNCERTAINTY AND VARIATION AND THEREFORE ARE NOT REPRESENTED AS RESULTS THAT WILL BE ACTUALLY ACHIEVED. THE PROJECTIONS ARE FOR INFORMATION ONLY AND ARE NOT INTENDED AS INDUCEMENT FOR ACTION OR INVESTMENT. THERE IS NO OBLIGATION TO REVISE OR UPDATE THE PROJECTIONS TO REFLECT SUBSEQUENT CHANGES IN THE INFORMATION OR ASSUMPTIONS ON WHICH THEY WERE MADE. NEITHER THE STARWOOD NAME NOR THIS ANALYSIS MAY BE REPRODUCED IN WHOLE OR IN PART OR INCLUDED IN ANY PROSPECTUS, NEWSPAPER PUBLICITY OR AS PART OF ANY PRINTED MATERIAL OR PART OF ANY OTHER STUDY OR REPORT OR USED IN OFFERINGS OR REPRESENTATIONS IN CONNECTION WITH THE SALE OF REAL ESTATE, SECURITIES, MEMBERSHIPS OR PARTICIPATION INTERESTS TO THE PUBLIC UNLESS SUCH USE IS CONSENTED TO IN WRITING BY STARWOOD.
30
Actual 2006
250 216 142 295 233 299
Actual 2007
250 216 142 295 233 299
Projected 2008
250 216 142 295 233 299
Projected 2009
250 216 142 295 233 299
Projected 2010
250 216 142 295 233 299
Projected 2011
250 216 142 295 233 299
1,435 523,775
Market Occupancy
Total Occupied Rooms Change in Demand Stub Period Occupancy
74.5%
390,138
79.3%
415,135 6.4%
72.5%
388,709 -6.4%
65.8%
374,317 -3.7%
60.8%
345,202 -7.8%
60.8%
345,202 0.0%
63.7%
361,805 4.8%
66.5%
442,408 22.3% 58.6%
65.0%
493,699 11.6%
68.2%
517,699 4.9%
70.3%
533,699 3.1%
70.3%
534,942 0.2%
70.3%
533,699 -0.2%
70.3%
533,699 0.0%
70.3%
533,699 0.0%
70.3%
534,942 0.2%
70.3%
533,699 -0.2%
70.3%
533,699 0.0%
70.3%
533,699 0.0%
95.61
100.68
5.3%
111.89
11.1%
113.00
1.0%
109.61
-3.0%
109.61
0.0%
116.19
6.0%
123.16
6.0% 113.30
126.86
3.0%
130.66
3.0%
134.58
3.0%
138.62
3.0%
142.78
3.0%
147.06
3.0%
151.47
3.0%
156.02
3.0%
160.70
3.0%
165.52
3.0%
170.49
3.0%
71.22
79.80
12.0%
81.11
1.6%
74.32
-8.4%
66.67
-10.3%
66.67
0.0%
74.07
11.1%
81.91
10.6%
82.49
0.7%
89.10
8.0%
94.61
6.2%
97.41
3.0%
100.37
3.0%
103.38
3.0%
106.48
3.0%
109.63
3.0%
112.97
3.0%
116.36
3.0%
119.85
3.0%
2006
2007
2008
2009
2010
2011
129.88
105.5%
146.00
115.1% 12.4%
167.00
127.8% 14.4%
172.00
127.8% 3.0%
177.00
127.7% 2.9%
182.00
127.5% 2.8%
187.00
127.2% 2.7%
193.00
127.4% 3.2%
199.00
127.5% 3.1%
205.00
127.6% 3.0%
211.00
127.5% 2.9%
217.00
127.3% 2.8%
In 2007, based on Actual/Forecasted Growth Rates In 2007, based on 3% Inflation Rate Hotel RevPAR USD
Penetration Change in RevPAR
65.10 61.81
78.55 74.59
95.81 90.98
102.95 97.76
102.86 97.67
102.69 97.51
102.43 97.27
102.64 97.46
102.75 97.57
102.77 97.58
102.69 97.51
102.54 97.36
31
32
Our design-builder has prepared two schedules for inclusion in the package. The first is a pre-construction/design period schedule, and the second is a detail construction period schedule. The one-page pre-construction/design period (startup) schedule begins with the delivery of this Pre-Development Agreement Report and approval of the report by the City and District on April 30. This is very important because the critical start dates for the East entrance to the convention center this year and the hotel and convention center expansion in 2010, are predicated upon our architect starting work on hotel construction documents in early May. These hotel construction documents are divided into three sets of architectural drawings: schematic, design, and construction. The eight-page detail construction period schedule shows the timing of various critical factors necessary to take the hotel from notice to proceed to final occupancy.
33
Activity Description
Early Start
Early Finish
2009 Q1 Q2 Q3 Q4 Q1
2010 Q2 Q3
CONCEPT DESIGN
PREPARE PRE-DEVELOPMENT PACKAGE 02MAR09 CITY REVIEW SIGN GARFIELD/TRAUB DEVELOPMENT AGREEMENT CITY ACCEPT PRE-DEVELOPMENT PACKAGE PREPARE HOTEL CONSTRUCTION DOCUMENTS
FINANCIAL
PREPARE PRE-DEVELOPMENT PACKAGE CITY REVIEW SIGN GARFIELD/TRAUB DEVELOPMENT AGREEMENT CITY ACCEPT PRE-DEVELOPMENT PACKAGE PREPARE HOTEL C
13APR09
06MAY09
02APR10
PRELIMINARY GMP CITY ACCEPT PRELIMINARY GMP FINAL GMP SELL BONDS
EAST ENTRANCE
PRELIMINARY GMP CITY ACCEPT PRELIMINARY GMP FINAL GMP SELL BONDS
DESIGN EAST ENTRANCE START EAST ENTRANCE CONSTRUCT EAST ENTRANCE 2010 GEM SHOW
HOTEL CONSTRUCTION
28JUL09
25JAN10 14FEB10
Run Date
22APR09 07:11
TANT
TURNER / Sundt
Activity Description
Orig Dur
Early Start
Early Finish
J -2
F -1
M 1
A 2
M 3
J 4
2010 J 5
A 6
S 7
O 8
N 9
D 10
J 11
F 12
M 13
A 14
M 15
2011 J J 16 17
A 18
S 19
O 20
N 21
D 22
J 23
F 24
M 25
2012 A M 26 27
J 28
J AUG 29 3
1 12MAR10 12MAR10
NTP
Mobilize Hotel Survey Hotel SIte Civil Relocate Site Utilities - North Excavation North Caissons Backfill North
HOISTING
20 15MAR10 09APR10 10 16MAR10 29MAR10 80 12APR10 15 12APR10 20 03MAY10 40 31MAY10 15 07DEC10 7 27JUL10 02AUG10 30APR10 28MAY10 26JUL10 29DEC10 04AUG10
Mobilize Hotel Survey Hotel SIte Civil Relocate Site Utilities - North Excavation North Caissons Backfill North
5 05AUG10 11AUG10 230 12AUG10 06JUL11 260 28DEC10 60 24OCT08 40 28JUN10 45 27JUL10 2 12OCT10 5 17DEC10 2 17DEC10 5 30DEC10 100 27JAN11 120 21APR11 25 07SEP10 20 12OCT10 2 07DEC10 2 30DEC10
01OCT08 29JUN12 24OCT08 15APR09 15:55
04JAN12 22JAN09 23AUG10 27SEP10 13OCT10 23DEC10 20DEC10 06JAN11 15JUN11 07OCT11 11OCT10 08NOV10 08DEC10 03JAN11
TALL
Lv 1 Podium - Studs/MEP Pilecaps / Grade beams Lvl 1 Basement Walls Lvl 1 Podium Slab on Grade 1 Tower Reshore Hoist Erection 1 Tower Pull Reshore Hoist Foundation Podium Enclosure 1 Podium Finishes
LOBBY LEVEL
Pilecaps / Grade beams Lvl 1 Basement Walls Lvl 1 Podium Slab on Grade 1 Tower Reshore Hoist Erection 1 Tower Pull Reshore Hoist Foundation Podium Enclosure 1 Podium Finishes
50 17AUG10 25OCT10
2 TowerDeckform / Pour Lvl 2 Basement Walls 2 Tower Reshore 2 Tower Pull Reshore
Start Date Finish Date Data Date Run Date
2 TowerDeckform / Pour Lvl 2 Basement Walls 2 Tower Reshore 2 Tower Pull Reshore
Sheet 1 of 9
Date
Revision
Checked
Approved
35
Activity Description
Orig Dur
Early Start
Early Finish
J -2
F -1
M 1
A 2
M 3
J 4
2010 J 5
A 6
S 7
O 8
N 9
D 10
J 11
F 12
M 13
60 04JAN11 100 27JAN11 120 19MAY11 20 09NOV10 2 17DEC10 2 11JAN11 60 13JAN11 120 16JUN11 50 27JAN12 8 07DEC10 2 30DEC10 2 20JAN11 3 24JAN11 5 24JAN11 5 31JAN11 5 07FEB11 5 14FEB11 6 16FEB11 10 04APR11 5 18APR11 5 25APR11 5 02MAY11 5 09MAY11 5 16MAY11 5 23MAY11 5 30MAY11 5 30MAY11 10 06JUN11 5 20JUN11 5 27JUN11 15 06JUL11 7 17DEC10 2 11JAN11 25 13JAN11 2 31JAN11
28MAR11 15JUN11 04NOV11 06DEC10 20DEC10 12JAN11 06APR11 02DEC11 05APR12 16DEC10 03JAN11 21JAN11 26JAN11 28JAN11 04FEB11 11FEB11 18FEB11 23FEB11 15APR11 22APR11 29APR11 06MAY11 13MAY11 20MAY11 27MAY11 03JUN11 03JUN11 17JUN11 24JUN11 01JUL11 26JUL11 29DEC10 12JAN11 16FEB11 01FEB11
36
Sheet 2 of 9
3 Deckform / Pour 3 Reshore
N 21
D 22
J 23
F 24
M 25
2012 A M 26 27
J 28
J AUG 29 3
2 Podium Finishes
3 Deckform / Pour 3 Reshore 3 Pull Reshore 3 Podium Studs/MEP Lvl 3 Podium Fnishes Pool
LEVEL 4 - SUITES
4 Tower Deckform / Pour 4 Tower Reshore 4 Tower Pull Reshore 4 Precast 4 Ductwork 4 Piping/Plumbing 4 Metal Studs/ Jambs 4 Electrical RI 4 Punched 4 Hang Drywall 4 Tape Drywall 4 Paint 4 Casework / Valance 4 Floor Tile 4 Carpet 4 Countertops / Trim 4 MEP Fixtures 4 Accessories 4 OFCI FF&E 4 Punchlist / completion 4 - Final clean rooms 4 OFOI FF&E 4 Corridor Completion
LEVEL 5
4 Tower Deckform / Pour 4 Tower Reshore 4 Tower Pull Reshore 4 Precast 4 Ductwork 4 Piping/Plumbing 4 Metal Studs/ Jambs 4 Electrical RI 4 Punched WIndows/Curtainwall 4 Hang Drywall 4 Tape Drywall 4 Paint 4 Casework / Valance 4 Floor Tile 4 Carpet 4 Countertops / Trim 4 MEP Fixtures 4 Accessories 4 OFCI FF&E 4 Punchlist / completion 4 - Final clean rooms 4 OFOI FF&E 4 Corridor Completion
5 28MAR11 01APR11
Activity Description
Orig Dur
Early Start
Early Finish
J -2
F -1
M 1
A 2
M 3
J 4
2010 J 5
A 6
S 7
O 8
N 9
D 10
J 11
3 02FEB11 6 25FEB11 70 04APR11 15 13JUL11 7 30DEC10 2 20JAN11 25 24JAN11 2 09FEB11 3 11FEB11 70 11APR11 15 20JUL11 7 11JAN11 2 31JAN11 25 02FEB11 2 18FEB11 3 22FEB11 70 18APR11 15 27JUL11 7 20JAN11 2 09FEB11 25 11FEB11
04FEB11 04MAR11 12JUL11 02AUG11 10JAN11 21JAN11 25FEB11 10FEB11 15FEB11 19JUL11 09AUG11 19JAN11 01FEB11 08MAR11 21FEB11 24FEB11 26JUL11 16AUG11 28JAN11 10FEB11 17MAR11
F M A 12 13 14 5 Precast
M 15
2011 J J 16 17
A 18
S 19
O 20
N 21
D 22
J 23
F 24
M 25
2012 A M 26 27
J 28
J AUG 29 3
6 Tower Deckform / Pour 6 Tower Reshore 6 Studs/MEP Rough-in 6 Tower Pull Reshore 6 Precast 6 Punched 6 Room Finishes 6 Final Corridor Finishes
LEVEL 7
6 Tower Deckform / Pour 6 Tower Reshore 6 Studs/MEP Rough-in 6 Tower Pull Reshore 6 Precast 6 Punched WIndows/Curtainwall 6 Room Finishes 6 Final Corridor Finishes
6 08MAR11 15MAR11
7 Tower Deckform / Pour 7 Tower Reshore 7 Studs/MEP Rough-in 7 Tower Pull Reshore 7 Precast 7 Punched 7 Room Finishes 7 Final Corridor Finishes
LEVEL 8
7 Tower Deckform / Pour 7 Tower Reshore 7 Studs/MEP Rough-in 7 Tower Pull Reshore 7 Precast 7 Punched WIndows/Curtainwall 7 Room Finishes 7 Final Corridor Finishes
6 17MAR11 24MAR11
8 Tower Deckform / Pour 8 Tower Reshore 8 Studs/MEP Rough-in 8 Tower Pull Reshore 8 Precast 8 Punched 8 Room Finishes 8 Final Corridor Finishes
LEVEL 9
8 Tower Deckform / Pour 8 Tower Reshore 8 Studs/MEP Rough-in 8 Tower Pull Reshore 8 Precast 8 Punched WIndows/Curtainwall 8 Room Finishes 8 Final Corridor Finishes
2 01MAR11 02MAR11 3 03MAR11 07MAR11 6 28MAR11 04APR11 70 25APR11 02AUG11 15 03AUG11 23AUG11 7 31JAN11 2 18FEB11 25 22FEB11 08FEB11 21FEB11 28MAR11
9 Tower Deckform / Pour 9 Tower Reshore 9 Studs/MEP Rough-in 9 Tower Pull Reshore 9 Precast Lvl 9 Temp Roof 9 Punched
9 Tower Deckform / Pour 9 Tower Reshore 9 Studs/MEP Rough-in 9 Tower Pull Reshore 9 Precast Lvl 9 Temp Roof
9 Punched WIndows/Curtainwall
Activity Description
Orig Dur
Early Start
Early Finish
J -2
F -1
M 1
A 2
M 3
J 4
2010 J 5
A 6
S 7
O 8
N 9
D 10
J 11
F 12
M 13
A 14
M 15
2011 J J 16 17
70 02MAY11
09AUG11
A S O N D 18 19 20 21 22 9 Room Finishes
J 23
F 24
M 25
2012 A M 26 27
J 28
J AUG 29 3
10 Tower Deckform / Pour 10 Tower Reshore 10 Studs/MEP Rough-in 10 Tower Pull Reshore 10 Precast 10 Punched 10 Room Finishes 10 Final Corridor Finishes
LEVEL 11
2 01MAR11 02MAR11 25 03MAR11 06APR11 2 21MAR11 22MAR11 3 23MAR11 25MAR11 6 15APR11 70 10JUN11 15 20SEP11 7 18FEB11 22APR11 19SEP11 10OCT11 28FEB11
11 Tower Deckform / Pour 11 Tower Reshore 11 Studs/MEP Rough-in Lvl 11 temp roof 11 Tower Pull Reshore 11 Precast 11 Punched 11 Room Finishes 11 Final Corridor Finishes
LEVEL 12
11 Tower Deckform / Pour 11 Tower Reshore 11 Studs/MEP Rough-in Lvl 11 temp roof 11 Tower Pull Reshore 11 Precast 11 Punched WIndows/Curtainwall 11 Room Finishes 11 Final Corridor Finishes
2 10MAR11 11MAR11 25 14MAR11 15APR11 10 14MAR11 25MAR11 2 30MAR11 31MAR11 3 01APR11 6 26APR11 70 17JUN11 15 27SEP11 05APR11 03MAY11 26SEP11 17OCT11
12 Tower Deckform / Pour 12 Tower Reshore 12 Studs/MEP Rough-in 12 Tower Pull Reshore 12 Precast 12 Punched 12 Room Finishes 12 Final Corridor Finishes
LEVEL 13
7 01MAR11 09MAR11 2 21MAR11 22MAR11 25 23MAR11 26APR11 2 08APR11 3 12APR11 6 05MAY11 70 24JUN11 15 04OCT11 11APR11 14APR11 12MAY11 03OCT11 24OCT11
12 Tower Deckform / Pour 12 Tower Reshore 12 Studs/MEP Rough-in 12 Tower Pull Reshore 12 Precast 12 Punched WIndows/Curtainwall 12 Room Finishes 12 Final Corridor Finishes
13 Tower Deckform / Pour 13 Tower Reshore 13 Studs/MEP Rough-in 13 Towe Pull Reshore 13 Precast 13 Punched 13 Room Finishes 13 Final Corridor Finishes
7 10MAR11 18MAR11 2 30MAR11 31MAR11 25 01APR11 2 19APR11 3 21APR11 6 16MAY11 70 01JUL11 15 11OCT11 05MAY11 20APR11 25APR11 23MAY11 10OCT11 31OCT11
38
Sheet 4 of 9
13 Tower Deckform / Pour 13 Tower Reshore 13 Studs/MEP Rough-in 13 Towe Pull Reshore 13 Precast 13 Punched WIndows/Curtainwall 13 Room Finishes 13 Final Corridor Finishes
Orig Dur
Early Start
Early Finish
J -2
F -1
M 1
A 2
M 3
J 4
2010 J 5
A 6
S 7
O 8
N 9
D 10
J 11
F 12
M 13
A 14
M 15
2011 J J 16 17
A 18
S 19
O 20
N 21
D 22
J 23
F 24
M 25
2012 A M 26 27
J 28
J AUG 29 3
14 Tower Deckform / Pour 14 Tower Reshore 14 Studs/MEP Rough-in 14 Tower Pull Reshore 14 Precast 14 Punched 14 Room Finishes 14 Final Corridor Finishes
LEVEL 15
7 21MAR11 29MAR11 2 08APR11 25 12APR11 2 28APR11 3 02MAY11 6 25MAY11 70 12JUL11 15 18OCT11 11APR11 16MAY11 29APR11 04MAY11 01JUN11 17OCT11 07NOV11
14 Tower Deckform / Pour 14 Tower Reshore 14 Studs/MEP Rough-in 14 Tower Pull Reshore 14 Precast 14 Punched WIndows/Curtainwall 14 Room Finishes 14 Final Corridor Finishes
15 Tower Deckform / Pour 15 Tower Reshore 15 Studs/MEP Rough-in 15 Tower Pull Reshore 15 Precast 15 Punched 15 Room Finishes 15 Final Corridor Finishes
LEVEL 16
7 30MAR11 07APR11 2 19APR11 25 21APR11 2 09MAY11 3 11MAY11 6 03JUN11 70 19JUL11 15 25OCT11 7 08APR11 2 28APR11 25 02MAY11 2 18MAY11 3 20MAY11 6 14JUN11 70 26JUL11 15 01NOV11 7 19APR11 2 09MAY11 25 11MAY11 2 27MAY11 3 31MAY11 6 27JUN11 15 08NOV11 7 28APR11 2 18MAY11 20APR11 25MAY11 10MAY11 13MAY11 10JUN11 24OCT11 14NOV11 18APR11 29APR11 03JUN11 19MAY11 24MAY11 21JUN11 31OCT11 21NOV11 27APR11 10MAY11 14JUN11 30MAY11 02JUN11 06JUL11 28NOV11 06MAY11 19MAY11
39
Sheet 5 of 9
15 Tower Deckform / Pour 15 Tower Reshore 15 Studs/MEP Rough-in 15 Tower Pull Reshore 15 Precast 15 Punched WIndows/Curtainwall 15 Room Finishes 15 Final Corridor Finishes
16 Tower Deckform / Pour 16 Tower Reshore 16 Studs/MEP Rough-in 16 Tower Pull Reshore 16 Precast 16 Punched 16 Room Finishes 16 Final Corridor Finishes
LEVEL 17
16 Tower Deckform / Pour 16 Tower Reshore 16 Studs/MEP Rough-in 16 Tower Pull Reshore 16 Precast 16 Punched WIndows/Curtainwall 16 Room Finishes 16 Final Corridor Finishes
17 Tower Deckform / Pour 17 Tower Reshore 17 Studs/MEP Rough-in 17 Tower Pull Reshore 17 Precast 17 Punched 17 Room Finishes 17 Final Corridor Finishes
LEVEL 18
17 Tower Deckform / Pour 17 Tower Reshore 17 Studs/MEP Rough-in 17 Tower Pull Reshore 17 Precast 17 Punched WIndows/Curtainwall 17 Room Finishes 17 Final Corridor Finishes
70 02AUG11 07NOV11
Activity Description
Orig Dur
Early Start
Early Finish
J -2
F -1
M 1
A 2
M 3
J 4
2010 J 5
A 6
S 7
O 8
N 9
D 10
J 11
F 12
M 13
A 14
M 15
18 Studs/MEP Rough-in 18 Tower Pull Reshore 18 Precast 18 Punched 18 Room Finishes 18 Final Corridor Finishes
LEVEL 19
25 20MAY11 2 07JUN11 3 09JUN11 6 08JUL11 15 15NOV11 7 09MAY11 2 27MAY11 25 31MAY11 2 20JUN11 3 22JUN11 6 15JUL11 15 22NOV11 7 18MAY11 10 27MAY11 2 07JUN11 25 14JUN11 2 29JUN11 3 01JUL11 6 08JUL11 15 29NOV11 7 27MAY11 2 07JUN11 25 21JUN11 2 08JUL11 3 12JUL11 6 15JUL11 70 01SEP11 15 08DEC11 7 07JUN11 2 16JUN11 25 23JUN11 2 19JUL11
23JUN11 08JUN11 13JUN11 15JUL11 05DEC11 17MAY11 30MAY11 06JUL11 21JUN11 24JUN11 22JUL11 12DEC11 26MAY11 09JUN11 08JUN11 20JUL11 30JUN11 07JUL11 15JUL11 19DEC11 06JUN11 08JUN11 27JUL11 11JUL11 14JUL11 22JUL11 07DEC11 03JAN12 15JUN11 17JUN11 29JUL11 20JUL11
40
Sheet 6 of 9
D 22
J 23
F 24
M 25
2012 A M 26 27
J 28
J AUG 29 3
70 09AUG11 14NOV11
19 Tower Deckform / Pour 19 Tower Reshore 19 Studs/MEP Rough-in 19 Tower Pull Reshore 19 Precast 19 Punched 19 Room Finishes 19 Final Corridor Finishes
LEVEL 20
19 Tower Deckform / Pour 19 Tower Reshore 19 Studs/MEP Rough-in 19 Tower Pull Reshore 19 Precast 19 Punched WIndows/Curtainwall 19 Room Finishes 19 Final Corridor Finishes
70 16AUG11 21NOV11
20 Tower Deckform / Pour Temp Roof -20 20 Tower Reshore 209 Studs/MEP Rough-in 20 Tower Pull Reshore 20 Precast 20 Punched 20 Room Finishes 20 Final Corridor Finishes
LEVEL 21
20 Tower Deckform / Pour Temp Roof -20 20 Tower Reshore 209 Studs/MEP Rough-in 20 Tower Pull Reshore 20 Precast 20 Punched WIndows/Curtainwall 20 Room Finishes 20 Final Corridor Finishes
70 23AUG11 28NOV11
21 Tower Deckform / Pour 21 Tower Reshore 21 Studs/MEP Rough-in 21 Tower Pull Reshore 21 Precast 21 Punched 21 Room Finishes 21 Final Corridor Finishes
LEVEL 22
21 Tower Deckform / Pour 21 Tower Reshore 21 Studs/MEP Rough-in 21 Tower Pull Reshore 21 Precast 21 Punched WIndows/Curtainwall 21 Room Finishes 21 Final Corridor Finishes
22 Tower Deckform / Pour 22 Tower Reshore 22 Studs/MEP Rough-in 22 Tower Pull Reshore
22 Tower Deckform / Pour 22 Tower Reshore 22 Studs/MEP Rough-in 22 Tower Pull Reshore
Activity Description
Orig Dur
Early Start
Early Finish
J -2
F -1
M 1
A 2
M 3
J 4
2010 J 5
A 6
S 7
O 8
N 9
D 10
J 11
F 12
M 13
A 14
M 15
2011 J J 16 17
A S O 18 19 20 22 Precast
N 21
D 22
J 23
F 24
M 25
2012 A M 26 27
J 28
J AUG 29 3
23 Tower Deckform / Pour 23 Tower Reshore 23 Studs/MEP Rough-in 23 Tower Pull Reshore 23 Precast 23 Punched 23 Room Finishes 23 Final Corridor Finishes
LEVEL 24
23 Tower Deckform / Pour 23 Tower Reshore 23 Studs/MEP Rough-in 23 Tower Pull Reshore 23 Precast 23 Punched WIndows/Curtainwall 23 Room Finishes 23 Final Corridor Finishes
3 01AUG11 03AUG11 6 04AUG11 11AUG11 70 15SEP11 15 22DEC11 7 27JUN11 2 08JUL11 25 15JUL11 21DEC11 17JAN12 07JUL11 11JUL11 18AUG11
24 Tower Deckform / Pour 24 Tower Reshore 24 Studs/MEP Rough-in 24 Tower Pull Reshore 24 Precast 24 Punched 24 Room Finishes 24 Final Corridor Finishes
LEVEL 25
24 Tower Deckform / Pour 24 Tower Reshore 24 Studs/MEP Rough-in 24 Tower Pull Reshore 24 Precast 24 Punched WIndows/Curtainwall 24 Room Finishes 24 Final Corridor Finishes
2 08AUG11 09AUG11 3 10AUG11 12AUG11 6 15AUG11 22AUG11 70 24AUG11 29NOV11 15 30NOV11 7 08JUL11 2 19JUL11 25 26JUL11 20DEC11 18JUL11 20JUL11 29AUG11
25 Tower Deckform / Pour 25 Tower Reshore 25 Studs/MEP Rough-in 25 Tower Pull Reshore 25 Precast 25 Punched 25 Room Finishes 25 Final Corridor Finishes
LEVEL 26
25 Tower Deckform / Pour 25 Tower Reshore 25 Studs/MEP Rough-in 25 Tower Pull Reshore 25 Precast 25 Punched WIndows/Curtainwall 25 Room Finishes 25 Final Corridor Finishes
2 08AUG11 09AUG11 3 10AUG11 12AUG11 6 15AUG11 22AUG11 70 30AUG11 05DEC11 15 06DEC11 7 19JUL11 2 28JUL11 28DEC11 27JUL11 29JUL11
26Tower Deckform / Pour 26 Tower Reshore 26 Studs/MEP Rough-in 26 Tower Pull Reshore 26 Precast 26 Punched 26 Room Finishes
26Tower Deckform / Pour 26 Tower Reshore 26 Studs/MEP Rough-in 26 Tower Pull Reshore 26 Precast 26 Punched WIndows/Curtainwall
25 04AUG11 07SEP11 2 08AUG11 09AUG11 3 10AUG11 12AUG11 6 15AUG11 22AUG11 70 08SEP11 14DEC11
41
Sheet 7 of 9
26 Room Finishes
Activity Description
Orig Dur
Early Start
Early Finish
J -2
F -1
M 1
A 2
M 3
J 4
2010 J 5
A 6
S 7
O 8
N 9
D 10
J 11
F 12
M 13
A 14
M 15
2011 J J 16 17
A 18
S 19
O 20
N 21
D 22
15 15DEC11 7 28JUL11
10JAN12 05AUG11
27 Roof Deckform / Pour 27 Precast 27 Roofing 27 Penthouse
J AUG 29 3
3 08AUG11 10AUG11 15 11AUG11 31AUG11 15 22AUG11 09SEP11 150 12SEP11 60 10FEB12 40 06APR12 1 01JUN12 20 04JUN12 12APR12 03MAY12 31MAY12 01JUN12 29JUN12
Elevators
COMPLETION / OCCUPANCY
Elevators Punchlist/Startup Commissioning Substantial Completion / TCO OS&E / Owner Move -in
Punchlist/Startup Commissioning Substantial Completion / OS&E / Owner Move -in PARKING GARAGE Mobilize Parking Garage Site Utilities Excavation Auger Cast Piling Pilecaps Precast Structure Slab on Grade Finishes CONVENTION CENTER
DEMO/SHORING /EXCAVATION
20 28JUN10 40 12JUL10
26JUL10 03SEP10
Mobilize Parking Garage Site Utilities Excavation Auger Cast Piling Pilecaps Precast Structure Slab on Grade Finishes
40 09AUG10 01OCT10 40 16AUG10 08OCT10 45 13SEP10 60 15NOV10 40 10FEB11 12NOV10 09FEB11 06APR11
80 10MAR11 29JUN11
Demoliton Temporary Walls Mobilize Event Center Excavate South Relocate Electrical Vault Demolition Temporaray Walls Excavation Auger Cast Piling Pilecaps Exhall Structural Steel Admin Structural Steel Roof Exhall Metal Deck Admin Metal Roof Deck
Mobilize Event Center Excavate South Relocate Electrical Vault Demolition Temporaray Walls Excavation Auger Cast Piling Pilecaps Exhall Structural Steel Admin Structural Steel Roof Exhall Metal Deck
15 17AUG10 06SEP10 20 31AUG10 27SEP10 20 07SEP10 10 05OCT10 15 19OCT10 15 09NOV10 15 16NOV10 04OCT10 18OCT10 08NOV10 29NOV10 06DEC10
42
Sheet 8 of 9
Activity Description
Orig Dur
Early Start
Early Finish
J -2
F -1
M 1
A 2
M 3
J 4
2010 J 5
A 6
S 7
O 8
N 9
D 10
Admin Concrete on Deck Underground MEP / Backfill Precast Building Enclosure Admin Area MEP Rough-in Site Work / Hardscape Roofing Admin Exterior Wall Slab on Grade Admin Space Finishes Exhibit Hall MEP Rough-in Exhibit Hall Finishes Commissioning / Occupancy TCO Date ExHall Startup / Testing FF&E / Owner Move-in Exhibit Floor Opening + CITY INFRASTRUCTURE
15 07DEC10 20 30DEC10 15 30DEC10 40 30DEC10 40 21JAN11 20 21JAN11 40 21JAN11 15 28JAN11 150 18FEB11 30 18FEB11 10 01JUL11 1 19JUL11 10 19JUL11 22 21JUL11
29DEC10 27JAN11 20JAN11 24FEB11 17MAR11 17FEB11 17MAR11 17FEB11 19SEP11 31MAR11 18JUL11 19JUL11 01AUG11 19AUG11
2011 J F M A M J J 11 12 13 14 15 16 17 Admin Concrete on Deck Underground MEP / Backfill Precast Building Enclosure
A 18
S 19
O 20
N 21
D 22
J 23
F 24
M 25
2012 A M 26 27
J 28
J AUG 29 3
Admin Area MEP Rough-in Site Work / Hardscape Roofing Admin Exterior Wall Slab on Grade Admin Space Finishes Exhibit Hall MEP Rough-in Exhibit Hall Finishes Commissioning / Occupancy TCO Date ExHall Startup / Testing FF&E / Owner Move-in Exhibit Floor Opening
80 25MAR11 18JUL11
43
Sheet 9 of 9
44
This section includes the capital plan alternatives for the Hotel only, including the ballroom and meeting space controlled by the Hotel operator, Starwood. Although our budget section includes estimates for the Tucson Convention Center expansion and the adjacent parking garage, we assume that the City will finance those in a similar manner they have used in the past. Two plans of finance for the Hotel, a publicly-owned, tax-exempt bond financed model, and the public/private partnership model are presented in this section. Each financial model has risk and reward considerations that must be weighed in the context of the Citys financial and political objectives and legal constraints. Either approach will require substantial City financial participation due to the underlying economic characteristics of convention center headquarters hotels and the current worldwide economic climate. We believe that in this economic environment, which will limit the amount of private debt and equity available for the project, the publicly-owned, tax-exempt financial model offers the highest likelihood of successful financing as well as the greatest long-term reward to the City and District. The public/private model described below is not available today due to the current worldwide economic environment, but we have used this model with other projects in the past and if economic conditions improve it may be available in the future. Following is a more detailed discussion of both the tax-exempt and the public/private partnership financing models. The budget and operating pro-forma are essentially the same under either of these financial models except for financing costs, bond issuance costs and reserves as shown in each corresponding Source and Use of Funds Statement.
Tax-Exempt Model
The tax-exempt model assumes that the Hotel is owned by a public entity and is financed with the issuance of taxexempt bonds. Due to current credit and capital market conditions, bonds secured solely by project revenues cannot be issued at a reasonable interest cost. Based on the projected development budget and operating pro forma, even if project revenue bonds could be issued, there would be a financing gap, so in order to finance the Hotel, additional revenue sources and government credit support are required. These additional revenue sources are initially identified as the site specific transient rental tax (6%), the site specific city sales tax (2%) and a new convention center surcharge (2%). Described below are three publicly-owned, tax-exempt financing scenarios. In all cases, government credit support, either from the District or the City, is required. In addition, to create an acceptable risk profile for the owner, it is recommended that additional revenue be pledged to the financing under all scenarios.
45
In each of the following scenarios, the Sources and Use of Funds statement includes a City contribution of $17,661,000. This contribution includes $12,661,000 of design costs that are currently included in the Hotel budget and will be paid during the design period prior to the issuance of a guaranteed maximum price and subsequent sale of bonds, plus approximately half ($5,000,000) of the total transaction privilege tax, building permits and impact fees (total $10,700,000). A portion of these taxes and fees should be applied to the project in the future and not included in the bond model but the amount is unknown today.
Scenario 1:
Hotel net revenues are assumed to be included in the Rio Nuevo Multipurpose Facilities District available revenues under this scenario. This will require modifications of the legislation regarding the District and the existing indenture. The bonds issued are on parity with the 2008 District bonds, and it is assumed that the 1.25x coverage level needed to issue additional bonds is met. Currently there is no capacity in the District for additional bonds. Assuming there is capacity and the changes discussed above are made, the District would issue tax-exempt bonds secured by Hotel net revenues, site specific sales and transient rental taxes, a convention center surcharge, the District Excise Tax Revenues as well as a backstop from the City. The assumed rating for the bonds is A3/A-. At todays rates, the interest cost is approximately 6.62%. The bond issue size is $189.3 million. Without additional revenues, debt service coverage levels would dip as low as 1.05x with only 1.26x coverage in the stabilized year. In order to achieve an acceptable owner risk profile (minimum 1.50x coverage in the stabilized year), the financing requires an additional $4.5 million per year in pledged revenues. At stabilized occupancy, this scenario cash flows a residual to the District of $4.538 million.
Scenario 2:
The City issues tax-exempt Certificates of Participation (COPs) secured by a City covenant to budget and appropriate. The COPs will still be paid from Hotel net revenues, site specific sales and transient rental taxes and a convention center surcharge. The assumed rating for the bonds is AA-/A1. At todays rates, the interest cost is approximately 6.09%. The bond issue size is $184.0 million. Without additional revenues, debt service coverage levels on the debt would dip as low as 1.15x with only 1.36x coverage in the stabilized year. In order to achieve an acceptable owner risk profile (minimum 1.50x coverage in the stabilized year), the financing requires an additional $1.1 million per year in pledged revenues. At stabilized occupancy, this scenario cash flows a residual to the City of $2.216 million.
46
The City issues AA-/A1 rated variable rate debt at an all-in cost (including letter of credit fees) of 5.27% (this rate assumes a 4% interest rate cap is purchased). After three years of Hotel operations, the City refinances the variable rate debt with fixed rate tax-exempt revenue bonds with the same credit profile as the bonds described in scenario 2. With this level of credit support it is assumed the issue would receive an AA-/A1 rating with an interest cost of approximately 6.25% (todays market). Without additional revenues, debt service coverage levels on the debt would dip as low as 1.44x with 1.52x coverage in the stabilized year. As the acceptable owner risk profile is assumed to be a minimum 1.50x coverage in the stabilized year, the financing requires no additional pledged revenues.
Potential Benefits to the City In return for sponsoring the development, the District and City would be the recipient of 100% of the net profits and residual value of the Hotel, estimated to be in excess of $260 million after the maturity of the bonds based on a 10% cap rate. Profits distributed estimated to be between $145 and $218 million over the life of the bonds in the three scenarios above, may be used for the expansion and/or improvement of the Hotel, to retire the Bond financing early, or for any other permitted public purpose. When the financing has been retired, the District/City may choose to sell the Hotel and realize the full value of the asset immediately, or it may continue to have the Hotel operated for debtfree annual cash flow to the District/City. The District/City would also have the option to sell the Hotel at any time after bonds are issued (subject to any make whole provisions) if market conditions are favorable. The cash flows and the residual value would be direct monetary benefits of the Districts/Citys sponsorship of the Hotel and do not take into consideration ancillary benefits to the District/City, its citizens and local hospitality industry, which would also include the generation of visitor spending on other area lodging, transportation, retail and entertainment, and local function-related service providers. The District/City would also directly benefit from taxes paid by visitors, who would come to the community, spend their money and depart, having only minimally impacted community infrastructure like police, fire and health services. Tax-Exempt Summary Scenario 1 Issuer Bond Rating Paramount of Bonds Interest Rate Additional Revenue Pledged (000) Residual Cash Flow 1st Stable Year (000) Total Residual Cash Flow 30-year (000)
Pre-Development Agreement Services Report
In the public/private model, the Hotel rooms tower and possibly some common areas would be owned by a newly formed, single-asset entity such as a limited partnership or a limited liability company. The owners of this new entity would be the Developer and its third-party equity investors. The meeting and ballroom space, some common and support areas, and the underlying land, would be owned by the City or a not-for-profit entity controlled by the City. The City-owned assets would be leased to the private owner of the Hotel and operated seamlessly with the Hotel by the Hotel operator. To determine the actual amount of each ownership piece and the total capital structure under the public/private model, we input the Hotels facilities program, development budget and operating projections into an exclusive public/private financial feasibility model. The purpose of the model is to estimate the amount of private debt and equity available for the Hotel in the financial markets, given currently anticipated debt underwriting criteria from various hotel lenders and expected internal rates of return from hotel equity investors. This analysis results in the amount of total private capital we believe is available for the Hotel. The difference between the amount of total private debt and equity that can be raised and the total development budget for the Hotel is the amount of City financial participation required to complete the project capitalization, and will provide a basis as to the appropriate allocation of the facilities between public and private ownership. After completing our preliminary financial assessment model for the Hotel, we believe the total amount of private capital available today to be equivalent to approximately $103,000,000, or 58.5% of the total Hotel budget of $176,000,000 (note: this includes approximately $8.5 million of construction period interest and fees). This includes $83,000,000 in construction debt and $20,000,000 in equity. The resulting difference between this amount, the operator key money contribution, and the total amount of the total Hotel budget is the amount of required City contribution, or $72,000,000. Our public/private assessment model is included later in this section. Our assumptions for this model are included there and are also detailed in the Deal Terms section under the public/private partnership.
Potential Benefits to the City Because the Hotel would be privately owned under this approach, all or substantially all of the net cash flow from the Hotel and residual value on sale would flow to the private owner. The primary benefits to the City of a privatelyowned Hotel are as follows: 1. Risks of ownership would be shifted to the private sector, 2. Opposition from taxpayers and local hotel owners, if any, can be reduced, 3. The investment from the City would be quantified before the start of construction and there would be no future funding obligation, and 4. The City would exercise a degree of control over minimum replacement reserve requirements and the future operational brand of the Hotel (in the event of a sale of the Hotel).
Pre-Development Agreement Services Report
48
Our team has extensive experience from prior hospitality developments in helping to identify and structure public participation using a variety of sources. Our scope of services includes collaborating with the City and its advisors to investigate all possible sources of funding the public participation, including site specific transient rental taxes, applicable ad valorem taxes, applicable sales taxes, etc., and determining the appropriate combination thereof Moreover, we have been successful in past developments in raising such diverse sources of funds as naming rights, grants, low-interest and no-interest subordinated loans from federal, state and local governments, public/private utility partnerships and nonprofit foundations. To the extent that such funds can be secured for this development, the required City financial participation may be reduced. It should be noted again however, that in the current economic environment this public/private financing model is not available, but it should become available if and when global economic conditions improve.
CONFIDENTIAL DRAFT
Sheraton Tucson Convention Center Hotel Single Tier Tax Exempt Scenario Sources and Uses of Funds (Dollars in Thousands) Scenario 1
Sources of Funds Par Amount of Bonds Interest Earnings on Project Construction Fund Original Issue Discount City Contribution Operator Key Money Contribution Operator Guarantee TOTAL SOURCES OF FUNDS Uses of Funds Deposit to Project Construction Fund Deposit to Capitalized Interest (CIF) Fund Deposit to Debt Service Reserve Fund (DSRF) Costs of Issuance Operating Reserve Pre-opening Expense Rounding Amount TOTAL USES OF FUNDS STATISTICS Ratings Dated Date True Interest Cost (TIC) All-In-Cost Weighted Average Maturity Hotel Opening Date Average Annual Net D/S ($ mils) Total Net D/S ($ mils) Debt Service Coverage DSC (Stabilized Year - 2015) $ Total 189,305 3,580 4,930 17,661 1,000 2,000 $ 218,476
A3 1/1/2010 6.619% 6.745% 24.661 years 1/1/2012 14,859 445,778 1.29x-2.76x 1.50x
50
CONFIDENTIAL DRAFT
2017
2018
7,429 927 309 563 8,639 30 (200) 4,500 22,198 813 7,289 12,803 (6,681) 6,123 584 7,389 7,389
10,828 1,155 385 681 9,503 208 (206) 4,500 27,054 813 8,123 12,803 (558) 12,245 1,059 4,814 4,814
13,567 1,355 452 787 9,979 281 (212) 4,500 30,708 8,220 13,863 (558) 13,305 1,632 7,551 7,551
14,689 1,447 482 841 10,278 394 (219) 4,500 32,412 8,157 13,995 (558) 13,437 1,742 9,075 9,075
15,163 1,492 497 867 10,586 530 (225) 4,500 33,410 8,166 14,128 (558) 13,570 1,796 9,878 449 224 9,205
15,618 1,537 512 893 10,904 668 (232) 4,500 34,399 8,179 14,266 (558) 13,708 1,850 10,663 462 231 9,969
16,086 1,583 528 919 11,231 818 (239) 4,500 35,426 8,193 14,399 (558) 13,841 1,905 11,487 476 238 10,772
51
CONFIDENTIAL DRAFT
2024
2025
16,569 1,630 543 947 11,568 979 (246) 4,500 36,491 8,207 14,540 (558) 13,982 1,962 12,339 491 245 11,604
17,066 1,679 560 975 11,915 1,153 (253) 4,500 37,595 8,216 14,680 (558) 14,122 2,021 13,236 505 253 12,478
17,578 1,730 577 1,005 12,272 1,340 (261) 4,500 38,740 8,232 14,818 (558) 14,260 2,082 14,167 520 520 260 12,866
18,105 1,782 594 1,035 12,640 1,533 (269) 4,500 39,920 8,248 14,962 (558) 14,404 2,144 15,124 536 536 268 13,784
18,648 1,835 612 1,066 13,020 1,740 (277) 4,500 41,144 8,267 15,108 (558) 14,550 2,208 16,118 552 552 276 14,738
19,208 1,890 630 1,098 13,410 1,961 (285) 4,500 42,412 8,279 15,255 (558) 14,697 2,275 17,161 569 569 284 15,739
19,784 1,947 649 1,131 13,813 2,197 (294) 4,500 43,727 7,669 15,401 (558) 14,843 2,343 18,872 586 586 293 17,407
52
CONFIDENTIAL DRAFT
2031
2032
20,378 2,005 668 1,165 2,458 (303) 4,500 30,872 15,547 (558) 14,989 2,413 13,470 603 603 302 11,962
20,989 2,065 688 1,200 2,638 (312) 4,500 31,768 15,696 (558) 15,138 2,486 14,145 621 621 311 12,592
21,619 2,127 709 1,235 2,827 (321) 4,500 32,696 15,847 (558) 15,289 2,560 14,847 640 640 320 13,247
22,267 2,191 730 1,273 3,025 (331) 4,500 33,656 16,003 (558) 15,445 2,637 15,574 659 659 330 13,926
22,935 2,257 752 1,311 3,234 (340) 4,500 34,649 16,159 (558) 15,601 2,716 16,332 679 679 340 14,634
23,623 2,325 775 1,350 3,454 (351) 4,500 35,676 16,311 (558) 15,753 2,798 17,125 699 699 350 15,377
24,332 2,394 798 1,391 3,684 (361) 4,500 36,738 16,471 (558) 15,913 2,882 17,943 720 720 360 16,142
53
CONFIDENTIAL DRAFT
25,062 2,466 822 1,432 3,927 (372) 4,500 37,837 16,627 (558) 16,069 2,968 18,800 742 742 371 16,945
25,814 2,540 847 1,475 4,181 (383) 4,500 38,973 16,790 (558) 16,232 3,057 19,684 764 764 382 17,774
26,588 2,616 872 1,520 4,447 (395) 4,500 40,149 16,952 (558) 16,394 3,149 20,606 787 787 394 18,638
27,386 2,695 898 1,565 4,727 (407) 4,500 41,364 17,119 (558) 16,560 3,243 21,561 811 811 405 19,534
28,207 2,776 925 1,612 5,020 (419) 4,500 42,621 17,281 (558) 16,723 3,340 22,558 835 835 418 20,470
54
CONFIDENTIAL DRAFT
29,054 2,859 953 1,660 5,327 (431) 4,500 43,922 17,451 (558) 16,893 3,441 23,588 860 860 430 21,438
29,925 2,945 982 1,710 5,649 (444) 4,500 45,266 17,617 (558) 17,059 3,544 24,663 886 886 443 22,448
30,823 3,033 1,011 1,762 5,985 (458) 4,500 46,656 17,786 (558) 17,228 3,650 25,778 913 913 456 23,496
31,748 3,124 1,041 1,814 6,338 (471) 4,500 48,094 33,903 (16,502) 17,401 3,760 26,933 940 940 470 24,583
55
CONFIDENTIAL DRAFT
Sheraton Tucson Convention Center Hotel Single Tier Tax Exempt Scenario Sources and Uses of Funds (Dollars in Thousands) Scenario 2
Sources of Funds Par Amount of Bonds Interest Earnings on Project Construction Fund Original Issue Discount City Contribution Operator Key Money Contribution Operator Guarantee TOTAL SOURCES OF FUNDS Uses of Funds Deposit to Project Construction Fund Deposit to Capitalized Interest (CIF) Fund Deposit to Debt Service Reserve Fund (DSRF) Costs of Issuance Operating Reserve Pre-opening Expense Rounding Amount TOTAL USES OF FUNDS STATISTICS Ratings Dated Date True Interest Cost (TIC) All-In-Cost Weighted Average Maturity Hotel Opening Date Average Annual Net D/S ($ mils) Total Net D/S ($ mils) Debt Service Coverage DSC (Stabilized Year - 2015) $ Total 184,065 3,580 5,962 17,661 1,000 2,000 $ 214,268
AA-/A1 1/1/2010 6.091% 6.212% 24.275 years 1/1/2012 13,707 411,213 1.27x-2.65x 1.50x
56
CONFIDENTIAL DRAFT
2017
2018
192,413 111,792 58.10% 138.31 7,429 927 309 563 30 (200) 1,100 10,158 11,570 (6,042) 5,528 584 4,046 4,046
191,625 122,640 64.00% 156.99 10,828 1,155 385 681 151 (206) 1,100 14,094 11,570 (514) 11,056 1,059 1,979 1,979
191,625 133,179 69.50% 169.59 13,567 1,355 452 787 188 (212) 1,100 17,237 12,795 (514) 12,281 1,632 3,324 3,324
191,888 138,159 72.00% 174.50 14,689 1,447 482 841 238 (219) 1,100 18,578 12,919 (514) 12,405 1,742 4,431 4,431
191,888 138,159 72.00% 180.00 15,163 1,492 497 867 304 (225) 1,100 19,198 13,043 (514) 12,529 1,796 4,873 449 224 4,200
191,625 137,970 72.00% 185.40 15,618 1,537 512 893 367 (232) 1,100 19,795 13,168 (514) 12,654 1,850 5,291 462 231 4,598
191,888 138,159 72.00% 190.96 16,086 1,583 528 919 436 (239) 1,100 20,414 13,298 (514) 12,783 1,905 5,725 476 238 5,011
57
CONFIDENTIAL DRAFT
2024
2025
191,888 138,159 72.00% 196.69 16,569 1,630 543 947 511 (246) 1,100 21,055 13,421 (514) 12,907 1,962 6,186 491 245 5,450
191,625 137,970 72.00% 202.59 17,066 1,679 560 975 593 (253) 1,100 21,720 13,553 (514) 13,039 2,021 6,660 505 253 5,902
191,888 138,159 72.00% 208.67 17,578 1,730 577 1,005 682 (261) 1,100 22,409 13,683 (514) 13,169 2,082 7,158 520 520 260 5,857
191,888 138,159 72.00% 214.93 18,105 1,782 594 1,035 769 (269) 1,100 23,116 13,817 (514) 13,303 2,144 7,669 536 536 268 6,329
191,625 137,970 72.00% 221.38 18,648 1,835 612 1,066 864 (277) 1,100 23,848 13,950 (514) 13,436 2,208 8,204 552 552 276 6,824
191,888 138,159 72.00% 228.02 19,208 1,890 630 1,098 967 (285) 1,100 24,607 14,081 (514) 13,567 2,275 8,766 569 569 284 7,344
191,888 138,159 72.00% 234.86 19,784 1,947 649 1,131 1,077 (294) 1,100 25,394 14,217 (514) 13,703 2,343 9,348 586 586 293 7,884
58
CONFIDENTIAL DRAFT
2031
2032
191,625 137,970 72.00% 241.90 20,378 2,005 668 1,165 1,195 (303) 1,100 26,208 14,356 (514) 13,842 2,413 9,953 603 603 302 8,445
191,888 138,159 72.00% 249.16 20,989 2,065 688 1,200 1,322 (312) 1,100 27,053 14,493 (514) 13,979 2,486 10,588 621 621 311 9,035
191,888 138,159 72.00% 256.64 21,619 2,127 709 1,235 1,457 (321) 1,100 27,927 14,630 (514) 14,116 2,560 11,251 640 640 320 9,651
191,625 137,970 72.00% 264.34 22,267 2,191 730 1,273 1,602 (331) 1,100 28,833 14,772 (514) 14,258 2,637 11,938 659 659 330 10,289
191,888 138,159 72.00% 272.27 22,935 2,257 752 1,311 1,756 (340) 1,100 29,771 14,919 (514) 14,405 2,716 12,650 679 679 340 10,953
191,888 138,159 72.00% 280.43 23,623 2,325 775 1,350 1,921 (351) 1,100 30,743 15,062 (514) 14,548 2,798 13,398 699 699 350 11,649
191,625 137,970 72.00% 288.85 24,332 2,394 798 1,391 2,096 (361) 1,100 31,749 15,204 (514) 14,690 2,882 14,177 720 720 360 12,377
59
CONFIDENTIAL DRAFT
191,888 138,159 72.00% 297.51 25,062 2,466 822 1,432 2,281 (372) 1,100 32,791 15,354 (514) 14,840 2,968 14,983 742 742 371 13,128
191,888 138,159 72.00% 306.44 25,814 2,540 847 1,475 2,478 (383) 1,100 33,871 15,503 (514) 14,989 3,057 15,824 764 764 382 13,914
191,625 137,970 72.00% 315.63 26,588 2,616 872 1,520 2,687 (395) 1,100 34,988 15,649 (514) 15,135 3,149 16,704 787 787 394 14,736
191,888 138,159 72.00% 325.10 27,386 2,695 898 1,565 2,908 (407) 1,100 36,145 15,800 (514) 15,285 3,243 17,617 811 811 405 15,590
191,888 138,159 72.00% 334.85 28,207 2,776 925 1,612 3,142 (419) 1,100 37,343 15,956 (514) 15,442 3,340 18,561 835 835 418 16,473
60
CONFIDENTIAL DRAFT
191,625 137,970 72.00% 344.90 29,054 2,859 953 1,660 3,389 (431) 1,100 38,583 16,109 (514) 15,595 3,441 19,548 860 860 430 17,397
191,888 138,159 72.00% 355.25 29,925 2,945 982 1,710 3,650 (444) 1,100 39,867 16,267 (514) 15,753 3,544 20,571 886 886 443 18,356
191,888 138,159 72.00% 365.90 30,823 3,033 1,011 1,762 3,925 (458) 1,100 41,196 16,424 (514) 15,910 3,650 21,636 913 913 456 19,354
191,625 137,970 72.00% 376.88 31,748 3,124 1,041 1,814 4,215 (471) 1,100 42,571 31,268 (15,201) 16,067 3,760 22,745 940 940 470 20,395
61
CONFIDENTIAL DRAFT
Sheraton Tucson Convention Center Hotel Variable Rate Bond Scenario (City Backed Bonds) Sources and Uses of Funds (Dollars in Thousands) Scenario 3
Sources of Funds Par Amount of Bonds Interest Earnings on Project Construction Fund City Contribution Operator Key Money Contribution Operator Guarantee TOTAL SOURCES OF FUNDS Uses of Funds Deposit to Project Construction Fund Deposit to Capitalized Interest (CIF) Fund Deposit to Debt Service Reserve Fund (DSRF) Costs of Issuance Operating Reserve Pre-opening Expense Interest Rate Cap (4%) Rounding Amount TOTAL USES OF FUNDS STATISTICS Ratings Dated Date True Interest Cost (TIC) All-In-Cost $ Total 186,340 3,580 17,661 1,000 2,000 210,581
62
CONFIDENTIAL DRAFT
Sheraton Tucson Convention Center Hotel Variable Rate Scenario (Takeout of the City Bonds) Sources and Uses of Funds (Dollars in Thousands) Scenario 3
Sources of Funds Par Amount of Bonds Reoffering Premium/Original Issue Discount TOTAL SOURCES OF FUNDS Uses of Funds Payoff of the Variable Rate Bonds Costs of Issuance Rounding Amount TOTAL USES OF FUNDS STATISTICS Ratings Dated Date True Interest Cost (TIC) All-In-Cost Weighted Average Maturity Hotel Opening Date Average Annual Net D/S ($ mils) Total Net D/S ($ mils) Debt Service Coverage DSC (Stabilized Year - 2015) $ $ Total 185,155 2,818 187,973
A3 1/1/2015 6.250% 6.384% 21.419 years 1/1/2012 13,525 437,365 1.42x-2.06x 1.50x
CONFIDENTIAL DRAFT
2017
2018
192,413 111,792 58.10% 138.31 7,429 927 563 309 30 (200) 9,058 9,597 (5,017) 4,580 584 3,894 3,894
191,625 122,640 64.00% 156.99 10,828 1,155 681 385 147 (206) 12,990 9,597 (437) 9,160 1,059 2,771 2,771
191,625 133,179 69.50% 169.59 13,567 1,355 787 452 197 (212) 16,147 10,742 (437) 10,305 1,632 4,210 4,210
191,888 138,159 72.00% 174.50 14,689 1,447 841 482 261 (219) 17,501
191,888 138,159 72.00% 180.00 15,163 1,492 867 497 322 (225) 18,116
191,625 137,970 72.00% 185.40 15,618 1,537 893 512 381 (232) 18,708
191,888 138,159 72.00% 190.96 16,086 1,583 919 528 445 (239) 19,322
63
CONFIDENTIAL DRAFT
2024
2025
191,888 138,159 72.00% 196.69 16,569 1,630 947 543 516 (246) 19,959
191,625 137,970 72.00% 202.59 17,066 1,679 975 560 593 (253) 20,620
191,888 138,159 72.00% 208.67 17,578 1,730 1,005 577 677 (261) 21,304
191,888 138,159 72.00% 214.93 18,105 1,782 1,035 594 760 (269) 22,006
191,625 137,970 72.00% 221.38 18,648 1,835 1,066 612 850 (277) 22,734
191,888 138,159 72.00% 228.02 19,208 1,890 1,098 630 948 (285) 23,488
191,888 138,159 72.00% 234.86 19,784 1,947 1,131 649 1,053 (294) 24,270
64
CONFIDENTIAL DRAFT
2031
2032
191,625 137,970 72.00% 241.90 20,378 2,005 1,165 668 1,166 (303) 25,080
191,888 138,159 72.00% 249.16 20,989 2,065 1,200 688 1,288 (312) 25,919
191,888 138,159 72.00% 256.64 21,619 2,127 1,235 709 1,419 (321) 26,789
191,625 137,970 72.00% 264.34 22,267 2,191 1,273 730 1,559 (331) 27,690
191,888 138,159 72.00% 272.27 22,935 2,257 1,311 752 1,708 (340) 28,623
191,888 138,159 72.00% 280.43 23,623 2,325 1,350 775 1,868 (351) 29,590
191,625 137,970 72.00% 288.85 24,332 2,394 1,391 798 2,038 (361) 30,592
65
CONFIDENTIAL DRAFT
2038
2039
191,888 138,159 72.00% 297.51 25,062 2,466 1,432 822 2,219 (372) 31,629
191,888 138,159 72.00% 306.44 25,814 2,540 1,475 847 2,411 (383) 32,703
191,625 137,970 72.00% 315.63 26,588 2,616 1,520 872 2,614 (395) 33,816
191,888 138,159 72.00% 325.10 27,386 2,695 1,565 898 2,831 (407) 34,968
191,888 138,159 72.00% 334.85 28,207 2,776 1,612 925 3,059 (419) 36,161
191,625 137,970 72.00% 344.90 29,054 2,859 1,660 953 3,302 (431) 37,396
191,888 138,159 72.00% 355.25 29,925 2,945 1,710 982 3,558 (444) 38,675
66
CONFIDENTIAL DRAFT
191,888 138,159 72.00% 365.90 30,823 3,033 1,762 1,011 3,828 (458) 39,999
191,625 137,970 72.00% 376.88 31,748 3,124 1,814 1,041 4,113 (471) 41,369
191,888 138,159 72.00% 388.19 32,700 3,218 1,869 1,073 4,414 (485) 42,788
191,888 138,159 72.00% 399.83 33,681 3,314 1,925 1,105 4,731 (500) 44,256
191,625 137,970 72.00% 411.83 34,691 3,414 1,983 1,138 5,065 (515) 45,776
67
Public/Private Model
68
$75,000,000 $0 $0 0.0%
$1,000,000
$83,000,000 50.0% maximum 7.5% Interest only 5 years First lien on assets; Construction guarantee
Permanent Loan Amount Loan to Value Interest Rate Term Amortization Other Holding Period Cap Rate on Sale Inflation Factor
69
142,857 190,476
75.0% 11,191,000 9.5% 86,583,000 6.50% 30 547,263 6,567,161 83,000,000 7.50% 25 613,363 7,360,352 47.2% 47.2% of project cost (Interest only for 60 Mos.)
N/A 0.0%
Rooms Occupancy Average Rate RevPAR Room Revenue % of Total Revenue Total Revenue Gross Operating Profit % of Total Revenue NOI before Real Estate Taxes Real Estate Taxes Net Hotel Cash Flow % of Total Revenue Debt Service - Construction Loan DSC Ratio Debt Service - Permanent Loan DSC Ratio Additional Cap[italized Interest Cash Available for Distribution Cash on Cash Leveraged Return Leveraged IRR
140,556,881
--------------140,556,881 0 78,745,117
--------------61,811,763
70
71
Cost comparisons between convention center headquarters hotels in different cities are difficult and can often be misleading. The typical comparison of cost per key (room) is affected by timing of contract buyout, geographic location, total amount of meeting space, etc. The schedule that follows shows the actual cost per room for several recently completed convention center headquarters hotels and attempts to adjust them to be comparable to the projected cost of the Sheraton Tucson Convention Center Hotel. Our schedule adjusts the cost of each hotel, exclusive of land, financing costs and parking costs, by an inflation adjusted time factor and a geographic location adjustment factor. In addition to the cost comparison to other completed headquarters hotels, we also wanted to compare the Sheraton Tucson to two other recently budgeted headquarters hotels, Portland and Dallas. The schedule comparing the cost per key for these hotels is shown immediately following the completed hotel comparison.
Hyatt Denver Jun. 2003 Amount** 267,500,000 268,839,105 294,378,820 325,582,975 351,381,908 373,969,564 352,391,520 352,391,520 320,000 109.5 386,010,481 1,100 351,000
247,000,000 273,182,000 294,828,722 313,781,006 295,675,842 295,675,842 296,000 102.8 303,832,417 1,000 304,000
236,241,600 254,961,194 271,350,700 255,693,764 255,693,764 338,000 105.2 268,919,304 756 356,000
Time Adjusted Cost/Key (Rounded) Relative Location Factor Location Adjusted Cost Key Count Location Adjusted Cost/Key (Rounded)
* **
Source: Parsons website http://www.parsons.com/about/press_rm/potm/11-2008/index.html retrieved 4/15/09 minus 500 spaces of underground parking assuming $30K/space. Source: http://www.hotelmanagement-network.com/projects/hyatt_denver/ retrieved 4/22/09 minus 600 spaces of underground parking assuming $30K/space. Source: Official Statement Dated June 11, 2001, Austin Convention Center Enterprises, Inc., Convention Center Hotel First Tier Revenue Bonds, Series 2001A.
73
Unadjusted Preliminary Project Budget Less Adjustments (See Note): 1. Parking reduction 2. Retail reduction 3. Traffic Light reduction 4. Transaction privilege tax 5. Pre-opening budget 6. Building permit Adjusted Preliminary Project Budget Number of Rooms Adjusted Budget per Room
Note: These adjustments were made to remove line items that are not in the other project budgets
74
Percentage Changes in Producer Price Indexes (PPIs) for Construction Materials and Components, 2001-2009 12 months through December-2002 2003 2004 2005 2006 2007 2008 Table 1: Changes in Consumer, Producer & Construction Prices CUUR0000SA0 Consumer price index (CPI-U) 2.4 1.9 3.3 3.4 2.5 4.1 0.1 WPUSOP3000 Producer price index (PPI) for finished goods 1.2 4.0 4.2 5.4 1.1 6.2 -0.9 PCUBCON PPI for inputs to construction industries 0.7 3.0 9.1 8.2 4.6 4.8 2.7 PCUBHWY PPI for inputs to highway and street construction 1.0 2.6 10.8 14.1 6.2 10.1 -0.8 PCUBHVY PPI for inputs to other heavy construction 1.0 2.6 13.4 8.8 5.5 6.9 1.4 PCUBBLD PPI for inputs to nonresidential buildings 0.7 2.4 9.3 7.4 4.0 4.8 2.2 PCUBRSM PPI for inputs to multi-unit residential 0.4 2.7 8.9 7.8 4.9 3.8 2.9 PCUBRS1 PPI for inputs to single-unit residential 0.6 3.5 7.0 6.9 4.2 2.5 4.9 Table 2: Changes in PPIs for New Buildings and Components PCU236211 New industrial building construction 7.6 n.a. before 2008; series began 6/07 PCU236221 New warehouse construction 7.5 8.1 4.5 6.3 n.a. before 2005 n.a.; series began 12/05 PCU236222 New school construction 17.3 2.0 12.7 PCU236223 New office construction 4.8 6.1 not available; series began 6/06 PCU23811X Concrete contractors, nonresidential building work n.a. before 2008; series began 12/07 5.0 PCU23816X Roofing contractors, nonresidential building work n.a. before 2008; series began 12/07 13.0 PCU23821X Electrical contractors, nonresidential building work n.a. before 2008; series began 12/07 5.1 PCU23822X Plumbing contractors, nonresidential building work n.a. before 2008; series began 12/07 9.2 Table 3: Changes in PPIs for Specific Construction Inputs WPU057303 #2 diesel fuel 54.4 WPU05810112 Asphalt (at refinery) n.a. WPU139401 Asphalt paving mixtures and blocks 2.0 WPU136 Asphalt felts and coatings -0.6 WPU1361 Prepared asphalt & tar roofing & siding products -1.7 WPU133 WPU1331 WPU1332 WPU1333 WPU1334 WPU1335 WPU1342 WPU072106 WPU137 WPU1392 WPUSI004011 WPU062101 WPU1017 WPU101704 WPU101706 WPU102502 WPU102501 WPU1073 WPU107405 WPU10740501 WPU107408 WPU107409 WPU1076 WPU1079 WPU112 Concrete products Concrete block and brick Concrete pipe Ready-mixed concrete Precast concrete products Prestressed concrete products Brick and structural clay tile Plastic construction products Gypsum products Insulation materials Lumber and plywood Architectural coatings Steel mill products Hot-rolled bars, plates, & structural shapes Steel pipe and tube Copper and brass mill shapes Aluminum mill shapes Sheet metal products Fabricated structural metal Fabricated structural metal for buildings Architectural and ornamental metalwork Fabricated iron & steel pipe, tube, & fittings Fabricated steel plate Prefabricated metal buildings Construction machinery and equipment -0.3 1.6 1.7 -1.1 0.3 1.8 1.9 3.1 3.4 -1.5 1.4 0.6 11.1 2.1 9.1 -1.6 -0.9 2.0 -2.4 -3.3 3.7 0.1 -1.0 4.0 1.9 BLS Series ID to February 2009 since-1/09 11/08 2/08 12/03 0.5 -0.1 -0.6 -0.5 -1.5 -0.7 -0.6 -0.3 -0.1 0.2 -1.2 -1.3 -3.4 0.5 -5.5 -2.5 -5.3 -2.4 -3.4 -0.1 -2.5 1.1 -2.0 3.1 15.1 17.7 31.6 46.4 38.3 29.5 30.4 27.2
1.6 8.9 1.0 7.3 3.8 11.6 1.3 7.3 0.6 5.0 3.5 13.4 0.7 4.7 1.9 8.7
13.0 10.0 3.7 6.3 5.3 1.5 3.2 1.4 1.1 2.5 -0.2 0.7 3.2 2.8 2.0 13.1 3.9 1.7 11.3 3.3 11.6 -0.5 0.6 0.1 -0.1 0.7 1.2 0.6 -0.7 1.3
37.9 18.3 4.3 4.1 4.6 7.6 4.7 5.5 8.7 6.0 8.2 3.0 7.2 20.0 8.6 5.0 5.3 48.8 53.8 66.0 29.6 9.9 15.2 24.7 20.0 23.5 32.6 7.6 35.5 6.0
46.7 17.8 14.3 15.3 16.2 10.1 8.1 7.5 11.3 6.0 14.3 9.4
2.3 34.9 27.6 5.0 5.2 8.1 6.8 2.5 10.1 4.7 4.9 6.0
33.9 -36.9 -0.2 48.3 1.6 33.3 1.4 51.7 2.3 50.7 3.8 3.3 10.0 3.1 4.7 2.2 0.0 4.2 4.6 4.2 4.1 4.5 4.6 0.3 3.3 7.3 1.0 -7.1 16.6
-11.3 -2.0 -1.1 3.1 7.3 -0.1 0.7 0.3 -0.2 -0.2 -0.1 0.4 -0.1 -1.1 0.7 -0.8 0.0 -6.1 -2.9 -2.9 -1.8 -4.2 -1.2 -2.0 -2.9 -1.5 -3.7 -2.1 -6.7 0.3
-35.3 -49.4 -39.8 -8.6 -14.8 20.1 -0.6 56.2 5.0 64.3 1.3 1.0 0.5 2.0 0.6 -4.2 0.2 -1.4 0.0 0.4 -4.1 5.3 4.8 4.7 3.7 5.6 3.6 0.2 0.4 3.4 7.8 1.7 -7.1 12.3
48.4 109.4 91.5 94.8 106.5 40.6 31.7 34.0 46.0 29.0 32.7 20.2 34.6 25.1 11.6 -16.6 48.3 50.2 73.5 106.6 69.4 6.5 31.0 48.2 40.6 60.5 45.5 45.5 72.1 24.7
21.6 -0.7 0.4 18.8 5.5 -22.1 2.6 2.1 -3.5 -1.1 -10.8 -0.7 9.2 6.3 4.2 -3.8 -1.0 1.2 31.0 5.0 0.4 2.8 3.1 3.1 5.5 0.6 2.0 4.9 11.6 7.5 5.5 44.4 12.7 6.5 3.6 3.3 4.9 -2.8 8.6 5.5 3.6
0.9 5.3 8.1 4.3 -1.3 28.6 -3.0 -24.3 -1.7 -5.9 0.2 7.8 5.3 11.4 4.7 7.6 2.0 22.8 -1.5 12.3 5.7 23.2 2.0 25.0 2.3 5.3
-22.5 -9.8 -12.9 -7.5 -11.8 -12.1 -14.9 -33.7 -15.7 -16.4 -2.9 5.1 -6.0 4.0 -2.9 3.2 -4.5 16.9 -3.1 7.9 -5.0 6.7 -8.4 11.6 0.8 4.9
Table 4: Changes in PPIs for Basic Inputs Important to Construction WPU056 Crude petroleum (domestic production) 60.6 14.3 WPU0553 Industrial natural gas 12.2 20.3 WPU066 Plastic resins and materials 9.2 6.4 WPU1321 Construction sand/gravel/crushed stone 2.5 2.4 WPU1322 Cement 1.3 -1.1 WPU1011 WPU1012 WPU101212 WPU102102 WPU102301 Iron ore Iron and steel scrap Stainless and alloy steel scrap Copper ores Copper base scrap -1.3 27.8 3.6 11.2 1.6 64.9 not 37.4 30.7
49.6 0.1 31.5 -13.2 10.8 -7.8 7.7 9.3 12.2 10.5 7.5 2.9 53.1 50.0
51.7 -57.9 -2.8 4.3 9.7 -5.6 8.4 6.6 4.4 -0.6 1.3 29.4 -7.8 -1.7 3.1 12.1 -40.7 n.a. n.a. -52.7
-38.1 -63.7 -9.9 -7.5 -11.3 -8.5 2.3 6.3 -0.4 -0.5
5.4 14.0 35.1 -42.6 not available 4.2 -31.0 -55.4 11.3 3.0 -53.8
Updated 3/18/09 Source: Bureau of Labor Statistics (BLS): www.bls.gov/cpi for CPI, www.bls.gov/ppi for PPIs Compiled by Ken Simonson (simonsonk@agc.org), Chief Economist, Associated General Contractors of America, www.agc.org
75
Change in Producer Prices for Construction vs. Consumer Prices, 2003 - 2009 (December 2003 = 100) Feb. 2009
Nonresidential buildings
Change from 2/08-2/09: -0.1%
77
Concrete Products
Change from 2/08-2/09: 4.8%
78
Gypsum Products
Change from 2/08-2/09: 7.8%
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Ken Simonson Chief Economist Associated General Contractors of America simonsonk@agc.org, 703-837-5313 www.agc.org
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