82
Memorandum CITY OF DALLAS DATE January 17, 4 Members of Budget, Jennifer S. Gates (Vice Kadane. Philip T. Kingston SUBJECT Budget, Finance & Audit Committee Tuesday, January 21, 2014, 1 :00 p.m. Dallas City Hall - 6ES, 1500 Marilla St., Dallas. TX 75201 The agenda for meeting is as follows: 1. Consideration of minutes from the January 6, 2013 Budget, Finance & Audit committee meeting 2. Dallas Convention Center Hotel Update Dallas & Ron King, Director Convention &

CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

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Page 1: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Memorandum

CITY OF DALLAS

DATE January 17, 4

Members of Budget, Jennifer S. Gates (Vice Kadane. Philip T. Kingston

SUBJECT Budget, Finance & Audit Committee

Tuesday, January 21, 2014, 1 :00 p.m. Dallas City Hall - 6ES, 1500 Marilla St., Dallas. TX 75201

The agenda for meeting is as follows:

1. Consideration of minutes from the January 6, 2013 Budget, Finance & Audit committee meeting

2. Dallas Convention Center Hotel Update

Dallas &

Ron King, Director Convention &

Page 2: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

A quorum of

concerns one

Contemplated or Attorney. Section

this Council meeting.

if the U!V'JUvv!U! the

litigation or matters where legal advice is requested of the City .071 of the Texas Open Meetings Act

2. The or of if the deliberation in an meeting would have a detrimental effect on the position of the City in negotiations with a third person. Section 551.072 of the Texas Open Meetings Act.

nOI'TnlCi gift or the City, if the on the position of City in

Open Act

Page 3: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Budget, Finance & Audit Committee Meeting Record- DRAFT

Meeting Date: 1.06.2014 Convened: 1:03 p.m. Adjourned: 2:27 p.m.

Committee Members Present:

Jerry R. Allen, Chair Jennifer Staubach Gates, Vice-Chair

Tennell Atkins Sheffie Kadane

Philip T. Kingston

Council Members Present:

Adam Medrano

Scott Griggs

Staff Present:

Jeanne Chipperfield Molly McCall La Toya Jackson Michael Frosch

Jack Ireland Dolores Lewis Russell Dyer Craig Kinton

Zeronda Smith Forest Turner Valanda Quaite Adelia Gonzalez

Edward Scott Rick Galceran Theresa O’Donnell Melissa Miles

Lance Sehorn Helendra Ruiz John Rogers Zaida Basora

Michael Frosch Jesse Dillard Robyn Gerard

Stephanie Cooper William Finch Beverly Davis

AGENDA:

1. Approval of the December 2, 2013 Minutes

Presenter(s):

Information Only:

Action Taken/Committee Recommendation(s):

A motion was made to approve the December 2, 2013 minutes. Motion passed unanimously.

Motion made by: Sheffie Kadane Motion seconded by: Tennell Atkins

2. Financial Benefits and Protections of Marriage

Presenter(s): Theresa O’Donnell, Interim Assistant City Manager

John Roger, Assistant City Attorney

Information Only: X

Action Taken/Committee Recommendation(s):

Committee Chair would like to build on the briefing series with a recommendation and speaker from

the Human Rights Campaign. Additionally, Committee Members request a list of actions items in the

next briefing.

3. Unlawful Discriminatory Practices Relating to Sexual Orientation

Presenter(s): Beverly Davis, Assistant Director, Fair Housing Office

Melissa Miles, Assistant City Attorney

Information Only: X

Action Taken/ Committee Recommendation(s):

Committee Chair supported Councilmember Griggs request to include a comparison between

Chapter 34 (Personnel Rules) of the City Code and Chapter 46 (Unlawful Discriminatory Practices

Page 4: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Budget, Finance & Audit Committee Meeting Record- DRAFT

Relating to Sexual Orientation) in the upcoming briefing. Councilmember Kingston would like

additional metrics from Fair Housing regarding their educational efforts on Chapter 46.

4. Comprehensive Energy Conservation & Solar Performance Contracts

Presenter(s): Rick Galceran, Director, Public Works

Information Only: X

Action Taken/Committee Recommendation(s):

5. Best Practices in E3 Government, Finance & Audit- Index Cities and SWOT Analysis

Presenter(s): LaToya Jackson, Assistant Director, Strategic Customer Services

Dolores Lewis, Human Resources

Russell Dyer, Office of Cultural Affairs

Information Only: X

Action Taken/Committee Recommendation(s):

Councilmembers Atkins and Kingston would like additional information on E3 analysis, specifically

metrics, supporting data and costs to implement opportunities.

FYI

5. Upcoming Agenda Items: Risk Consultant and Actuarial Services

Presenter(s): N/A

Information Only: X

Action Taken/ Committee Recommendation(s):

N/A

6. November 2013 Financial Forecast Report

Presenter(s): N/A

Information Only: X

Action Taken/ Committee Recommendation(s):

N/A

__________________________________ Jerry R. Allen, Chair

Budget, Finance & Audit Committee

Page 5: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)
Page 6: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Budget, Finance & Audit Committee

January 21, 2014

Dallas Convention Center Hotel

Update Briefing

Page 7: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Purpose

2

Provide an update on the Convention

Center Hotel Operations, ongoing and

future development opportunities.

Page 8: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Outline

3

Vision for the overall development

Key components of the hotel project

Timeline/Milestones

Convention Center Hotel

Restaurant Development Overview (Phase II Hotel Development)

Omni/DART Lamar Connection

Potential future development

Summary

Page 9: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Vision for Overall Development

4

Build another destination for Dallas

Enhance convention attendee experience

Develop hotel, restaurant, retail, cultural and entertainment elements

Create a Lamar Street entertainment corridor by:

Improving connectivity from Kay Bailey Hutchison Convention Center Dallas (KBHCCD) south into the Lamar Street Entertainment Corridor and north through downtown, to Victory Plaza

Source: December 6, 2010 Economic Development Briefing, Dallas City Council

Page 10: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Key Components of Hotel Project

5

Increase the competitiveness of the KBHCCD

Enhance overall economic benefits generated by the Convention industry to the City of Dallas

Achieve an overall project that can be constructed and operated within the projected revenues and construction budget

1,000 Room Hotel

Provide meeting and banquet space within the hotel

30% Goal for M/WBE utilization during construction

Higher than 25% M/WBE Program construction goal

Select a professional hotel management company/operator to

manage the asset for the City

Page 11: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Timeline

6

Convention Center Hotel:

City Council approved formation of Local Government Corporation

(LGC)– August 2008

Hotel developer selected – September 2008

Omni selected to manage hotel – February 2009

15 year term operator agreement

Locally owned

25% M/WBE utilization commitment from Omni

Voters approved Convention Center Hotel referendum– May 2009

Council approval of bonds to finance hotel – June 2009

Groundbreaking – September 2009

Hotel opened – November 2011

Page 12: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

7

Convention Center Hotel

Organizational & Financial Structure

B/R/P

Design/Builder

MSW Developer

OMNI

•Hotel Operations

•Parking

Operations

•Property

Management

Hotel

Financial Structure

Funding

•Revenue Bonds

•Build America

Bonds

Debt Service

•Hotel Net Operating Revenue

•Economic Development Agreement

•6% State HOT*

•6.25% State Sales Tax*

•7% Local HOT

•Reserve Accounts

*Years 1-10 only

Restaurant

Leases

Hotel LGC

City of Dallas

DCVB

(Citywide Sales &

Marketing Initiatives)

Convention &

Services Dpt.

•KBHCCD

Operations

•Contract

Management

support

Page 13: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Convention Center Hotel Site

8

(November 2007)

Page 14: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Convention Center Hotel Completed

9

December 2013

Standard Guest Room

Pre Function Lobby

Page 15: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

M/WBE Participation

10

Hotel Construction:

• Significant joint venture between

Balfour Beatty and two M/WBE

firms:

• Pegasus Texas

• H.J. Russell Co. (BRP JV)

• Exceeded goal of 30% for a total

of 37.9%

• Resulted in 163 separate

contracts to M/WBE

25% 25% 31% 32.7%

2012 2013

Hotel Operations M/WBE Participation

M/WBE Goal M/WBE Actual

Page 16: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Citywide Events Booked

11 A Citywide event is based upon 2,500+ room nights on peak.

Bookings occur into the future.

12

9

19 20

17

29

31

0

5

10

15

20

25

30

35

FY06-07 FY07-08 FY08-09 FY09-10 FY10-11 FY11-12 FY12-13

Hotel Announced

Hotel Opened

Page 17: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Room Night Reservations

12

57.0

63.5 63.0

69.9

30

40

50

60

70

80

Occupancy Rates (%) (Convention Center Hotel)

Proforma

Actual

2012 2013

• Hotel Occupancy rates have

exceeded proforma in both

2012 and 2013

• 2014 Proforma based on

66% occupancy rates

• Average occupancy rate for

the City of Dallas was

61.8% for 2012 and 65%

for 2013

Page 18: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Room Night Reservations within Dallas

13

750,000

1,000,000

1,250,000

1,500,000

1,750,000

2,000,000

5,000,000

5,500,000

6,000,000

6,500,000

7,000,000

7,500,000

8,000,000

Future Citywide Group

Room Nights Sold by DCVB Total Room Nights Consumed

2009 2010 2011 2012 2013 2009 2010 2011 2012 2013

Page 19: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Food & Beverage Performance (Convention Center Hotel, including ballrooms)

14 0

10,000,000

20,000,000

30,000,000

40,000,000

Food & Beverage Revenues

Proforma

Actual

2012 2013

Page 20: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Omni Dallas Success to date

15

The hotel is expected to close

2013 with:

• Occupancy 7.2% over proforma*

• Food and Beverage revenue

exceeding proforma by $11.08M*

• Total revenue exceeding proforma

by approximately $13.2M *

• Earnings $4.9M *

*Preliminary unaudited

Page 21: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

16

Restaurant Development Overview

Page 22: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Restaurant Development Overview (Phase II Hotel Project)

17

Original hotel ancillary development anticipated additional debt.

Development plan is now to be paid with unspent/existing bond proceeds.

Project paid from original hotel construction budget

Revenue will offset the approximate $1.6M debt service payment on the

land.

Land is owned by the City of Dallas

Land is leased to the Dallas Convention Center Hotel Development

Corporation (DCCHDC)

Current project plan includes development of land in front of the Omni

Dallas Hotel:

350 space below grade parking garage

Approximately 15k square feet of restaurants

Four individual storefront concepts

Omni will manage/maintain the parking and restaurant leases as an

extension of current hotel operations.

Page 23: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

18

City of Dallas (Land Owner)

Leases land to the

DCCHDC

Matthews Southwest

Development and project

management, negotiates leases

Balfour, Russell, Pegasus

Design and build development

Once complete, Omni will manage

the development as an extension of

current operations

Base Rent + 100% of net operating profits

paid back to City as rent

(will offset land debt service) $

Page 24: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Restaurant Development Benefits (Phase II Hotel Project)

19

Makes Dallas as a destination more attractive

Enhances Convention Center Hotel project

Clients are requiring more restaurant and entertainment venues within walking distance of the Convention Center

Increases the economic impact of the destination

Enhances convention attendee experience

Enhances the overall Lamar Streetscape Plan

Enhances Lamar entertainment venues

Page 25: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Conceptual Rendering

20

Page 26: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Restaurant Concepts* (Phase II Hotel Project)

21

Sushi

Brasserie Pizza & Wine

Tex-Mex

*Letters of intent signed, leases currently under negotiation

Page 27: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Omni/DART Lamar Connection

Under the Convention Center

Connects: Omni Dallas Hotel and DART station Omni Dallas Hotel to DFW Airport

Orange Line – Expected 2014

Design District, Victory, West End, Main Street, Cedars, Southside and Cedars DART station (D-Link)

Improvements Includes: Enhanced safety Lighting and signage Pedestrian experience

Schedule: Lamar Street: Under the Convention Center

Design – June 2013 through October 2013

Construction – April 2014 through December 2015

22

Page 28: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Omni/DART Lamar Connection

Under the Convention Center

23

Page 29: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

24

Page 30: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

25

Total Budget $ 4,673,574

Sources: 2009 Convention Center Revenue Bonds $ 2,073,574

NCTCOG Grant Funds $ 600,000

2006 Bond Program $ 2,000,000

Total Sources $ 4,673,574

Uses: Concept (Approved by City Council April 25, 2012) $ 69,986

Design (Approved by City Council May 22, 2013) $ 771,638

Construction (For City Council consideration January 22, 2014) $ 3,831,950

Total Uses $ 4,673,574

DART/OMNI Connection Budget

Page 31: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Lamar Street Entertainment Corridor

26

NYLO Hotel

W Hotel

A Loft

Hotel

Page 32: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

27

Potential Future Ancillary Development

Map

Number

Location

1

Parking Lot C

2

Parking Lot E

3

Convention Center

4

NW Corner of

Lamar & I-30

5

Jefferson Viaduct

Boardwalk

6

Memorial Auditorium

(Arena)

7

NE Corner of

Griffin & Canton

8

MSW Parking Lot

9

Heliport

Supergraphics Location

10

Old Pump Station

Page 33: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Summary

28

Convention Center Hotel performing better than proforma

Convention Center Hotel has met or exceeded established

goals

Citywide convention bookings have increased moving into

the future

Phase II development currently underway

Lamar streetscape improvements in progress

There is potential for future development in the Convention

Center District

Page 34: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Questions?

29

Page 35: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)
Page 36: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Budget, Finance & Audit

Committee Briefing

January 21, 2014

Page 37: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

PHILLIP J. JONES President/CEO Dallas CVB

DAVE BROWN American Airlines Center

Dallas CVB Chairman 2013-2014

2

Page 38: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Year-in-Review

3

Page 39: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

CVB ROOM NIGHTS BOOKED COMPARATIVE 2003-2013

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

FY 02-03 FY 03-04 FY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-13

4

Page 40: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

CVB CITYWIDE MEETINGS BOOKED COMPARATIVE 2003-2013

0

5

10

15

20

25

30

35

FY 02-03 FY 03-04 FY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-13

5

Page 41: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

PERFORMANCE COMPARISIONS

City Supply Demand Occ. ADR Revenue

Dallas 0.6% 4.4% 3.8% 7.8% 12.5%

San Francisco -0.5% 2.9% 3.5% 9.8% 13.0%

Los Angeles -1.8% 1.1% 3.0% 4.9% 6.0%

Orlando 0.4% 2.5% 2.1% 2.1% 4.6%

DC 0.3% 2.2% 1.9% 2.5% 4.7%

Boston 1.3% 3.1% 1.7% 2.9% 6.1%

US 0.7% 2.1% 1.4% 3.8% 6.1%

Atlanta 0.4% 1.4% 1.0% 3.1% 4.6%

New York 2.4% 3.2% 0.8% 3.0% 6.3%

Chicago 1.9% 1.3% -0.6% 2.0% 3.4%

New Orleans 0.5% -0.3% -0.8% 6.8% 6.5%

(11-Month Hotel Performance

Change from Prior Year Sorted by Occupancy)

6

Page 42: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

TOP 5 AGAIN

1. Las Vegas

2. San Francisco

3. Orlando

4. Chicago

5. Dallas 6. San Diego

7. Atlanta

8. Washington, DC

9. New Orleans

10. Anaheim

11. San Antonio

12. Indianapolis

13. Philadelphia

14. Denver

15. Houston

(Destination Rankings by Room Night Bookings)

7

Page 43: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

What visitors do in Dallas

8

Page 44: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

MAJOR DALLAS ATTRACTIONS

• AT&T Performing Arts Center

• American Airlines Center

• Dallas Arboretum and Botanical Gardens

• Dallas Museum of Art

• Dallas World Aquarium

• Dallas Zoo

• Fair Park

• Geo-Deck at Reunion Tower

• George W. Bush Presidential Center

• Klyde Warren Park

• Nasher Sculpture Center

• Perot Nature and Science Museum

• Sixth Floor Museum

SOME OF THE MOST VISITED LOCATIONS IN DALLAS

9

Page 45: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)
Page 46: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)
Page 47: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)
Page 48: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)
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16

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18

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19

Page 55: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

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21

Page 57: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

22

Page 58: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

What that meant for the

City of Dallas

23

Page 59: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

VISITOR IMPACT IN DALLAS 22.6 Million Visitors Spent $3.7 Billion

2.8

3.0

3.2

3.4

3.6

3.8

20.0

20.5

21.0

21.5

22.0

22.5

23.0

07 08 09 10 11 12

Visitor volume, mil (L)

Visitor spending, bils (R)

Visitor Volume and Spending

Sources: Longwoods International, STR, Tourism Economics

City of Dallas

24

Page 60: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

VISITOR IMPACT IN DALLAS $6.2 Billion in Total Sales Revenue

0

100

200

300

400

500

600

700

800

900

1,000Lodgin

g

F&

B

Reta

il T

rade

FIR

E

Recre

ation

Bus. S

erv

ices

Gas

Oth

er

Tra

nsp

Education

Constr

uction

Manu

Com

m.

Induced

Indirect

Direct

Tourism Sales by IndustryCity of Dallas, $ millions

F&B: Food and BeverageFIRE: Finance, Insurance, Real EstateBus. Services: Business ServicesGas: Gasoline StationsOther Transp: Other TransportationManu.: ManufacturingPersonal Serv.: Personal ServicesComm: Communication

25

Page 61: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

VISITOR IMPACT IN DALLAS 50,000 Jobs Supported by Tourism

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

F&

B

Lodgin

g

Recre

ation

Reta

il T

rade

Bus.

Serv

ices

Oth

er

Tra

nsp

FIR

E

Education

Pers

onal S

erv

.

Gas

Gov.

Constr

uction

Induced

Indirect

Direct

Tourism Employment by Industry F&B: Food and Beverage

FIRE: Finance, Insurance, Real Estate

Bus. Services: Business Services

Gas: Gasoline Stations

Other Transp.: Other Transportation

Personal Serv.: Personal Services

Wholesale Tr.: Wholesale Trade

Gov.: Government

26

Page 62: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

VISITOR IMPACT IN DALLAS Tourism Generated $724 Million in Taxes

Within the City, tourism-driven state and local tax proceeds of $365 million helped offset the average household tax burden by $805 per household.

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Page 63: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Customer Perceptions

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Page 64: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

CUSTOMERS Reputation of Dallas Meeting Facilities – Historic Trends

2007 2009 2011 2013

Evaluation Characteristic Rank Rank Rank Rank

Good for Large Trade Shows 8 6 8 10

Excellent Hotel Meeting Facilities 12 12 10 14

Good for International Conventions 16 15 15 14

New/Expanded Convention Center 10 18 14 26

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Page 65: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

CUSTOMERS Ranked as Having Built or Expanded Their Convention Center

Las Vegas

New Orleans

Chicago

Nashville

Indianapolis

Denver

Los Angeles

Orlando

Phoenix

Anaheim

Atlanta

Austin

Philadelphia

San Diego

San Jose

Washington, DC

Charlotte

Boston

San Antonio

Vancouver

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Page 66: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Competitive Standings

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Page 67: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

COMPETITION Current and Recent Projects

• Austin, TX – two new 1,000 room hotels.

• Chicago, IL – new 1,661 hotel rooms.

• Houston, TX – new 1,000 room hotel.

• Indianapolis, IN – recent 1,005 room hotel.

• Los Angeles, CA – recent 1,001 hotel rooms.

• Nashville, TN – new 800 room hotel.

• Orlando, FL – recent 2,150 hotel rooms.

• San Diego, CA – recent 1,190 room hotel.

• Washington, DC – new 1,167 room hotel.

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Page 68: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

COMPETITION Exhibit Space

DRAFT COPYComparison of Prime Exhibit Space – Competitive

and Comparable Facilities

246,100

353,100

503,000

515,000

516,000

538,700

579,000

581,400

726,600

755,700

813,600

862,000

966,300

1,366,000

1,940,600

2,055,100

2,588,500

0 500,000 1,000,000 1,500,000 2,000,000 2,500,000

Austin, TX

Nashville, TN

St. Louis, MO

San Antonio, TX (1)

Boston, MA

San Francisco, CA

Denver, CO

Phoenix, AZ

Dallas, TX

San Diego, CA (1)

Anaheim, CA

Houston, TX

New Orleans, LA

Atlanta, GA

Las Vegas, NV

Orlando, FL

Chicago, IL

Square Feet

Average = 935,700

Median = 726,600

(1) Includes space that is either planned or currently under construction.

Source: Facility floor plans and management, 2013

• The 726,600 square feet

of exhibit space provided

at the DCC ranks at the

mid-point of the major

market competitive and

comparable convention

centers analyzed as part

of this analysis.

• Centers in San Diego,

Boston, Anaheim, San

Antonio, Las Vegas,

Denver and Austin are

being considered for

expansion projects.

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Page 69: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

COMPETITION Meeting Space

DRAFT COPYComparison of Meeting Space –

Competitive and Comparable Facilities

(1) Includes space that is either planned or currently under construction.

Source: Facility floor plans and management, 2013

Average = 175,500

Median = 160,000

• The available meeting

space at the DCC ranks

towards the bottom of the

comparable/ competitive

facility set reviewed.

• Our survey research has

continually demonstrated

that event planners rank

the availability of meeting

space as a top variable

when evaluating and

selecting an event

destination.

• The low DCC ranking

represents a competitive

disadvantage.34

Page 70: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

COMPETITION Ballroom Space

DRAFT COPY

28,400

31,600

37,600

38,100

58,700

62,200

65,100

66,700

75,400

82,200

90,100

96,700

99,000

118,300

161,700

203,500

0 50,000 100,000 150,000 200,000

St. Louis, MO

Houston, TX

Boston, MA

Anaheim, CA

Atlanta, GA

Orlando, FL

Dallas, TX

Austin, TX

Nashville, TN

Denver, CO

San Antonio, TX (1)

New Orleans, LA

San Francisco, CA

Phoenix, AZ

San Diego, CA (1)

Chicago, IL

Square Feet

Comparison of Ballroom Space –

Competitive and Comparable Facilities

Average = 82,200

Median = 71,100

(1) Includes space that is either planned or currently under construction.

Note: The Las Vegas Convention Center does not offer dedicated ballroom space.

Source: Facility floor plans and management, 2013

• The ballroom space offered

at the DCC ranks

somewhat low among the

facilities reviewed.

• Ballroom space is very

often used for a diversity of

event functions, including

general sessions, product

demonstrations, poster

sessions and food

functions.

• Most recent convention

center development and

expansion projects have

included contiguous

ballrooms space of at least

50,000 square feet.

• The largest ballroom at the

DCC is only 27,000 square

feet, much smaller that

ballroom space in

competitive markets.

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Page 71: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

COMPETITION Hotel Rooms Within ½ Mile of Center

DRAFT COPY

1,089

1,690

1,844

3,251

3,776

4,625

5,617

6,594

7,760

8,317

8,614

9,354

10,544

10,803

16,631

18,925

0 3,000 6,000 9,000 12,000 15,000 18,000 21,000

Chicago, IL (1)

Boston, MA (1)

Phoenix, AZ

Houston, TX (1)

Dallas, TX

St. Louis, MO

Austin, TX (2)

Denver, CO

San Diego, CA (1)

Atlanta, GA

New Orleans, LA

San Antonio, TX

Anaheim, CA

Orlando, FL

Las Vegas, NV

San Francisco, CA

Number of Hotel Rooms

Comparison of Hotel Rooms Within ½ Mile –

Competitive and Comparable Markets

Average = 7,500

Median = 7,200

(1) Developing or planning additional headquarter hotel inventory.

(2) Includes planned headquarter hotel inventory.

Source: CSL International, 2013

• Event planners focus very

closely on the availability

and proximity of hotel

rooms in selecting a

destination. The recent

opening of the 1,001-

room Omni has improved

the competitive position of

the Dallas market.

• Even so, the available

rooms within one-half

mile of the DCC ranks

fairly low, and significantly

below the median room

count.

• Careful consideration will

have to be given to the

available room inventory

when evaluating the

potential for adding

conventions and

tradeshows to the market.

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Page 72: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)
Page 73: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

Stakeholders Help Drive

Our Success

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Page 74: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

2013-2014 BOARD OF DIRECTORS

MICHAEL BEKOLAY

Legends Hospitality Management

MARTIN BURRELL

The Burrell Group

AMY W. COWAN

Cowan Roberts Community Relations

LAL DASWANI

Dcustomtailors

TAMMY DEMERY

First National Bank of Omaha

DARLENE ELLISON

Veritex Community Bank

DAVE BROWN - CHAIRMAN American Airlines Center MONICA R. ALONZO – VICE CHAIRMAN Councilmember, City of Dallas Diversity & Inclusion Committee Chair

PEG HALL – CHAIR-ELECT/TREASURER Dentons US LLP Finance Committee Chair BILL BOYD – IMMEDIATE PAST CHAIRMAN AlliedPRA DFW Nominating Committee Chair

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Page 75: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

2013-2014 BOARD OF DIRECTORS

DEAN FEARING

Fearing’s Restaurant

DR. ELBA GARCIA

Dallas County

SONNY GARCIA

E-Rewards, Inc.

JENNIFER STAUBACH GATES

Councilmember, City of Dallas

DEREK GEROW

Bain & Company

DARWIN GIBSON

Janssen Pharmaceuticals, Inc.

SAM GILLILAND

Sabre Holdings

TARA GREEN

Klyde Warren Park

NEVIN GRINNELL

Dallas Area Rapid Transit

BILLY D. HINES

NorthPark Management Company

AMY HOFLAND

Crow Collection of Asian Art

LINDA KAO

SMU Cox School of Business

RON KING

Convention & Event Services

City of Dallas

LAURA MacNEIL

Wells Fargo Bank

LARRY MAGOR

Omni Dallas Hotel

MICHAEL D. MCGILLIGAN

Hilton Dallas Lincoln Centre

PAULINE MEDRANO

Community Leader

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Page 76: CITY OF DALLAS · (Convention Center Hotel) Actual 2012 2013 • Hotel Occupancy rates have exceeded proforma in both 2012 and 2013 ... (Approved by City Council April 25, 2012)

2013-2014 BOARD OF DIRECTORS

DALE MORRIS

Freeman

MARIE PERRY

Brinker International

STEPHAN PYLES

Stephan Pyles

HAROLD RAPOZA

Hilton Anatole Dallas Hotel

EDDIE REEVES

Reeves Strategy Group

PETE SCHENKEL

Dean Foods

LAURIE SPROUSE

Ultimate Ventures

MITZI TALLY

Dallas Market Center

KERRY TASSOPOULOS

Mary Kay Inc.

KEN THORNTON FFE Texas-Superior Expo Services

JERONIMO VALDEZ

Valdez/Washington LLP

TONY VEDDA

North Texas GLBT Chamber of Commerce

ALAN WALNE

Herb’s Paint and Body

DANA WILLIAMS

Southwest Airlines

MARK WOELFFER

Renaissance Dallas Hotel

JEFFREY YARBROUGH

bigInk

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