Arlington High Technology Conference Center

1
Arlington High Technology Conference Center

• Leadership Arlington
• February 18, 2004

2
Conference Center History

• Five years of Study and Validation
• Market Feasibility
• Size and Configuration
• Finance
• Site Selection

3
In the News

• Conference center runners-up go back to drawing
  board Washington Business Journal (August 4,
  2003)
• Plans for Proposed Conference Center Taking
  Shape Washington Post (July 31, 2003)
• Officials Taking a New Look at Stadium and
  Conference Center Sun-Gazette (July 3, 2003)
• Proposed Center Has Arlington Seeing Green
  Washington Post (August 21, 2002)
• Arlington officials explore conference center
  options Washington Business Journal (August
  21, 2002)
• Hotel tax hike may help pay for Arlington
  meeting hall Washington Business Journal
  (April 1, 2002)
• Arlington to Study Proposal for Convention
  Center Washington Post (October 22, 1998)
• Arlington Studies Tech Conference Center
  Washington Post (June 23, 1998)

4
Conference Center

• Top 10 things you need to know about the
  Arlington High Tech Conference Center

5
Number 10
6
Where will it be?
7
Site Selection Criteria

• Metro Access
• Vehicular Access
• Proximity to Hotels
• Size
• Constructability/Cost
• Delegate Spending Potential

• Economic Development Potential
• Parking Availability
• Joint Development Potential
• Image Potential

8
Preferred Site - Pentagon City

• Airport
• Metro
• Hotels
• Highway System
• Shopping
• Monumental View
• Additional Mixed Use Development

9
Site Context
10
Preferred Site Area
11

12

13
Number 9
14
How big is it?
15
Program Definition

• Exhibition Hall 50,000 sf
• Ballroom 30,000 sf
• Meeting Rooms 24,000 sf
• Net Leasable Area 104,000 sf
• Service Support Area 156,000 sf
• Total Gross Area 260,000 sf

Source Conventions Sports and Leisure study
16
Summary of Exhibit Space Demand

• National Trade and Professional Associations

78
Source Conventions Sports and Leisure study
17
Ratio of Exhibit Space to Other

• Historically and certainly the large centers have
  had ratios of 31
• There is an emerging ratio of 11 in many new an
  expanding facilities.
• This niche facility is oriented towards the
  conference that has accompanying and incidental
  exhibit components.

18
Expansion Capacity

• Ability to expand by 50 is critical
• 260,000 gross square foot building expands to
  390,000
• Expansion ability needs to be part of initial
  negotiations

19
Number 8
20
How much will it cost?
21
Costs - Phase 1

• Construction 96,000,000
• Legal
  450,000
• Architectural Engineering 7,079,000
• Site Selection Support
  81,000
• Site Selection Due Diligence
  170,000
• Bond Counsel
  65,000
• Permits Testing
  700,000
• Construction Management 720,000
• Pre-opening Payroll, Training
  640,000
• Pre-opening Management Fee 400,000
• Revenue Source Development 1,802,500
• Reserve for Debt Operating 5,931,404
• Debt Service prior to opening 12,216,990
• Contingency
  1,018,422
• Total 127,955,396

22
Number 7
23
How is it paid for?
24
Funding to Opening Day

• From 2 Addl Transient 32,369,165
• Occupancy Tax For 60 months
• From Debt 95,586,236 Total
  127,955,401

25
Transient Occupancy Tax Projected

• FY 05 6,052,625
• FY 06 6,203,941
• FY 07 6,471,359
• FY 08 6,679,475
• FY 09 6,961,765
• 60 Months Total 32,369,165

26
Debt

• Issuance of Debt of 95,586,236 which include
  Underwriters Discount and Bond Issuance Costs _at_
  6.5 interest for 30 years.

27
TOT role in Sustaining Debt and Operating costs

• 2 Transient Occupancy Tax starting in FY 09
  supports debt service and operating costs coupled
  with reserve from construction period.
• Growth in Transient Occupancy Tax of 2.5
  annually is assumed.
• Some New supply will occur.

28
Number 6
29
Will it make money?
30
Estimated Financial Operating Levels

• Proposed Arlington County Conference Center for a
  Mature Year of Operations (2002 Dollars)

31
Annual Economic Impacts during Stabilized
Operations
(2002 Dollars)
32
Estimated Annual Tax Revenue
Associated with 2008 Operations (2002 Dollars)
County Taxes
Hotel/Motel
1,293,000
Sales
566,000


Meals/Car Rental
756,000


Indirect Taxes
47,000


County Taxes
2,662,000
State Taxes
Sales
1,982,000


Indirect Taxes
165,000


State Taxes
2,147,000
Total Taxes
4,809,000
Source Conventions Sports Leisure
33
Number 5
34
How will it operate?
35
Operator

• After the bricks and mortar are in place, a day
  to day business will be run at this facility.
• A professional operator with credentials in this
  business will be secured to operate it.

36
Number 4
37
Who will use it?
38
38
39
39
40
40
41
Industry Survey Positive Responses
Government 86Large population of
events Corporation 70 to 75Extensive high tech
amenity requirements, even distribution
throughout the year National Association 86Larg
est source of potential facility utilization and
economic impact
Source Conventions Sports and Leisure study
42
Comparison of Total Corporate Inventory

• Companies with 25 or More Employees

40,919
Long Beach/L.A./Riverside/Orange
23,515
Arlington/D.C./Baltimore
18,348
San Mateo/S.F./Oakland/San Jose
15,873
Arlington/Ft. Worth/Dallas
12,771
Atlanta
12,038
Boston
5,452
Covington/Cincinnati
4,072
Kenner/New Orleans
0
10,000
20,000
30,000
40,000
Number of Companies
Source Conventions Sports and Leisure study
43
Market Segments
44

• After the types of organizations that would bring
  out of town attendees (hotel generators) have
  made their planning decisions, the Center is
  marketed for revenue from non-hotel users.
• Banquet Business
• Locally attended exhibit venues

45
Number 3
46
Whats the Technology part?
47
Examples of Technology Applications
in Convention Facilities
Convention Facility
Event
Operations
Marketing

• Computers
• Data Transfer
• Presentations
• Meetings
• Other

• Smart Building
• Security Systems
• LAN WAN
• Booking Admin.

• Facility Website
• CVB Website
• CD-ROMs
• Internet Advertising

48
Technologies Used to Deliver Meeting
and Training Content
49
Number 2
50
It is about more than a conference center
51
Mixed use

• 27 acres three and a half miles from the White
  House
• Could be one of the most special developments on
  the East Coast
• Contribute to the economic sustainability of
  Arlington.

• Conference Center as catalyst for smart growth
• Residential
• Office
• Retail
• Entertainment
• Conference Facilities
• Hotel

52
Number 1
53
12th Street
54
Twelfth Street

• Museum
• Arts facility
• Theatre
• Visitors Orientation Center
• Event and Festival Place
• Commuter Services

• Casual Dining
• Prepared foods Deli
• Live Music Venue
• Retail Business services
• Retail Residential Services