Background
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Convention Center struggles to compete with other markets effectively without a convention center hotel
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RFP was issued in 2001 to solicit ideas from developers for construction of a HQ hotel
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Two respondents; Marriott (West side of CC) and Hilton (East side of CC) with respective developer partners
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In 2006, Council passed legislation authorizing the Mayor and the WCCA to enter into long-term lease agreements with Marriott International as hotel operator/manager
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The legislation authorized a public TIF subsidy and corresponding bond authority in a public/private format
Development Program
• 1,174 room Marriott Marquis (3rd Marquis in country)
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25,000 sf of retail
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100,000 sf of meeting/ballroom space
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385 parking spaces (valet)
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Below grade tunnel (vehicle and pedestrian) connection between hotel and Convention Center
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Will be constructed on land owned by the District and Convention Center Authority and leased to the Developer for 99 years
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$537 million total project cost
Convention Center HQ Hotel
• Timeline
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Scheduled to break ground in October 2009
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Delivery in early 2013 (42 months)
• Developer committed to contribute $331 million (either equity or debt) and provided guaranty of $350 million
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Funding
• Given importance of project, the District decided to expend its Recovery Zone Bond allocation as follows:
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Facility Bond allocation - $110/$130 million
• Economic Development Bond allocation - $90/$90 million
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District to contribute $134 million from bond proceeds
• Convention Center to contribute $47 million cash and loan $25 million from bond proceeds
• Total government grant and loan contributions to Project equals $206 million
Benefits to the District:
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$200 million PV direct, net fiscal benefit over 20 years
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Creates 1,000+ permanent jobs
• Self-supporting through TIF Revenues and Loan and Lease payments to be paid from project revenues
• Enhances WCCA’s ability to effectively leverage the District’s world-class convention center
• Provides much needed neighborhood amenities; enhances and activates streetscape
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Improves safety in neighborhood
• Catalyst for new development around the Convention Center and provides support for struggling retail in neighborhood
