This agenda supports the Board's goal of increased economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs.
On October 3, 2017 the DPA approved 1) a new design for the headquarters hotel, 2) a new design agreement between MSW and Broward, and 3) entering into exclusive negotiations with Omni Hotels and Resorts as the preferred hotel operator (flag) for the Convention Center Headquarters Hotel.
On February 27, 2018, the DPA heard presentations from County staff and from the MSW development team on the anticipated project costs and financing alternatives for the two major components of the projects. The DPA expressed support for the County financing the hotel project.
On August 14, 2018, the DPA heard presentations from County staff and from the MSW development team on the updated design proposal for the Project that provided for an expansion of contiguous exhibition space. The DPA expressed support for the new design. The DPA also approved an amendment to the current design contract with MSW that will allow the design work for the hotel to proceed in tandem with the design work for the convention center.
Staff has negotiated a draft Technical Services Agreement with Omni Hotels (Exhibit 1 - to be distributed under separate cover on Friday, January 4, 2019) for the provision of advisory technical services during the design phase of the Headquarters Hotel project, which includes schematic design through the completion of construction drawings. The technical services provided are necessary to ensure that the hotel design both conforms to Omni's design standards and that it results in the development of a AAA 4-diamond rated hotel.
The design phase of the project includes schematic design, development design and construction drawings. Schematic design produces drawings of a site plan, floor plans, elevations and often illustrative sketches or computer renderings. These are necessary for submission to the City of Fort Lauderdale (City) for their Design Review Committee (DRC) process. Design development involves finalizing the site plan and design and specifying such items as materials, window and door locations and general structural details. Construction documents include a complete set of architectural drawings (site plan, floor plans, sections, details, etc.) that are combined with structural drawings, mechanical and electrical drawings that have enough detail for the City to review and issue a building permit.
The agreement is for a not to exceed amount of $400,000; $200,000 of which is for services during the schematic design phase and the balance of $200,000 for services during the remaining design phases through completion of the construction drawings for the project. If the County were to terminate the agreement prior to the end of the schematic design phase, Omni is still entitled to receive the full $200,000 payment for that phase of services.
The payments are structured as follows: $100,000 per month for the first two months, $0 per month for the 3rd and 4th months and $20,000 per month for the fifth through 14th months of the Agreement term. Schematic design is expected to be completed by May 2019. Negotiations for the final management agreement are expected to be concluded by April 2019.
Omni always negotiates all of its agreements up front, including technical services, pre-opening, management, operating and maintenance, room block etc. In recognition of the fact that schematic design has already started and Omni's input is needed during this process, Omni has agreed to bifurcate the negotiation process and accommodate this separate technical services agreement. As a show of good faith the County has agreed to upfront the payments in the first two months of the agreement for the schematic design services. As these payments can be construed as advance payments that are not currently on the advance payment exemption list in the Administrative Code, Board approval is required for this agreement.
|