HomeMy WebLinkAboutRESPONSE - RFP - 7059 HOTEL MARKET CONSULTING SERVICESHHU
kSSOCIATES
Submittal of Qualifications
7059 Hotel Market Consulting Services
2009
Prepared for:
Fort Collins Downtown Develop
Authority and the City of Fort Collins
Prepared by:
RRC Associates, Inc.
4940 Pearl East Circle, Ste 103
Boulder, CO 80301
303/449-6558
We will use STR data, in addition.to other data sources and the professional experience of our
team to:
O evaluate the existing supply of lodging facilities in Fort Collins and the surrounding
communities,
a determine the competitiveness of each hotel with the proposed development,
o analyze the positive attributes of each that could potentially be incorporated into the
proposed project,
o thoroughly research the status of other proposed lodging developments in the area and
determine their impact on the proposed project,
a investigate the demand base in Fort Collins, particularly as. it relates to such entities as
Colorado State University, and major companies including but not limited to Hewlett
Packard, Agilent Technologies, and Eastman Kodak, and
• evaluate the room night demand levels from the major demand drivers and understand
their needs for lodging accommodations.
We will determine the most appropriate brand(s) and "chain scale" that will not only enhance
the proposed hotel's performance, but will also complement the character of downtown Fort
Collins. Included in this profile will be a preliminary assessment of number of rooms, range and
sizes of complimentary facilities, including special meeting/banquet facilities and appropriate
price ranged (ADR)
Team Lead: Hospitium
Deliverable: Preliminary market assessment report.
Working Session #1 with Decision Makers
We will hold a working session to discuss the hotel brand profile and potential partners. This
working session will also be used to present a shortened version of the 'hotel 101'
presentation. The purpose of the meeting will be to identify and confirm initial goals for the
project, including branding, financial, quality, and schedule -based elements. We will discuss
long-term economic development opportunities and define potential tradeoffs in relation to
the hotel program.
Team Lead: RRC/STR
Deliverable: Summary of key meeting findings and conclusions.
RRC Associates, Inc: 8
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Identify/Evaluate/Prioritize Alternative Sites
We will evaluate the various attributes of each alternative site currently under consideration
and determine the appropriate criteria and advice to select the site or range of sites within the .
Downtown area that would most ensure a successful outcome. This could include a weighted
factor for site preferences. The City will process the sites through the conceptual review
process.
Team Lead: Coburn
Deliverable: Summary of site opportunities and constraints in matrix form.
Develop Statement of Public Participation/Consultant Team Evaluation
This process will determine the level of subsidy necessary to develop the hotel. Based on the
brand(s) determined to be most suitable and cohesive with downtown Fort Collins, we will
determine the best potential investment scenarios for the project and formulate income and
expense projections for various scenarios driven by our findings in our market investigation.
We will work with the City and the DDA to assess its resources as determined by available
funding sources, projected hotel operating income and legal constraints. An assessment of risk
allocation will also be determined by the City and DDA's preferences in light of the needs and
resources previously discussed. The objectives of these assignments will enable us to formulate
alternative ownership and financing plans to meet the needs of the City and DDA.
The team will prepare and review plans of finance for public, private, and public/private
ownership structures. We will develop alternative financings,and provide preliminary
evaluations of the implications for each structure. A cash flow analysis will be performed and
will include sources and uses of funds and cash flow summary. We will provide a range of
scenarios to assist in the assessment of potential risks associated with each financing structure.
Our attention will be directed towards determining the proper allocation of risk to ensure the
City and DDA maximize its return on any investment while supporting the feasibility of the
overall development. One additional element required to public -private partnerships is to
determine a funding gap. A "funding gap" is the amount of public subsidy required to increase
a private owner's return on investment to a level that would incentivize a private owner to
develop and own the project.
RRC Associates, Inc. 9
issues which may include: the amount and type of municipal participation,
construction risk, ramp -up risk, debt per key and the accelerated repayment of
debt from reserve funds as well as identify options for meeting these criteria.
e Tax Issues. There are a number of tax issues that will need to be addressed. These
issues may include the creation of an on behalf of bond issuer should the City and
decide it does not want to issue the bonds, the need to avoid an impermissible
"private use" that could cause the bonds to become taxable, the funding of
working capital, and the ability to characterize subordinate bonds as debt and not
equity. We will detail each of these tax issues, among others, and provide an
explanation of the actions taken to eliminate or mitigate such issues.
We will further evaluate the alternatives, describe findings "to date" and provide
recommendations for one of the two alternative approaches.
Team Lead: Swerdling and Associates
Deliverable: Written summary of analysis, meetings and formal recommendation.
Working Session #2 with Decision Makers
We will hold a working session to discuss the recommended approach and determine the
preferred plan of action. This will be a key decision point -and the outcome of this session will
determine whether we move forward with Alternative A or amend the contract and scope and
pursue Alternative B.
Team Lead: RRC/STR
Deliverable: Summary of meeting.
Phase II — Alternative A
Identify Potential Team Members
We would help to direct Ft. Collins to potential development partners including hotel brands
and chain scales that would likely be best in Ft. Collins. We would offer recommendations on
other mixed -use development partners or team members that might be appropriate to round
out the team. Depending on the results of the hotel branding, we would call on our team to
provide recommendations for the best teams to successfully complete the -project. In
particular, STR has positive and ongoing working relationships throughout the lodging industry,
encompassing hotels and hotel developers across a broad spectrum of classes. Through use of
its extensive hotel performance and operations databases, STR will provide invaluable
RRC Associates, Inc. 11
Project Validation
Data from STR will be particularly useful in understanding the operations of similar hotel
properties, as well as confirming revenue and occupancy assumptions. We will review and
evaluate the development costs of other lodging facilities comparable to the proposed project.
Utilizing various development scenarios and analyses, we will determine the size, facilities
program, and market positioning that would maximize return potential for the proposed
project. Overall, we will provide assurance that the proposed development schedule and end
results are realistic and achievable.
Team Lead: Hospitium
Deliverable: Provide written summary, including any recommendations for potential program
changes.
Financial Analysis
Provide validation of all financial pro forma assumptions, fiscal impacts and the revenue
operation of the hotel project.
Team Lead: Swerdling Associates
Deliverable: Provide written summary, including any recommendations for potential program
changes.
Provide Advisement During Negotiations
This would include due diligence review of the potential developers with regard to partners,
financial resources, completed projects, operational capabilities, past or pending
lawsuits/incomplete projects/etc., to be followed by making certain that the developer, the
financing mechanisms and the scope of development are compatible.
Team Lead: Pete Dordick
Deliverable: Verbal communications throughout negotiation process.
RRC Associates, Inc. 13
Appendix A
RRC Associates, Inc. 14
Phase I
t-
Kick -Oft Mooting
Scope Refinement
Preliminary Market Assessment
Brand Profile
Hotel size and amenities
Identification of Key Catalyst
Partners
I dontify/Eval uatelPrioritize
Alternatives
Development parcels
Develop Statement of Pubici
Participation
Alternative A — incentive
package necessary to create
feasible private developer
project
Alternative B — introduce and
Identity attributes of public
partnership with private
operator in event private
venture not feasible
Consultant Team Evaluation
Test assessment; site evaluation,
public meetings with initial
selection of development teams,
determine level of interest and
recommendations for adjustment
Phase II
Alternative A
Identify
Project
j ct Validation and
Financial Analysis
Provide
Candidate
Develop RFP
Provide AsslsWneo
Development
Validation of all
Advisement
Altemativo A
Development
Package
inScreoning and
Assessment of company
P Y
financial pro forma
During
PrlvateDevelopor
Teams/Hotel
Lodging contents
Selection of
and revenues,
assumptions, fiscal
Negotiations
Selection Process
Devolopmont Team
construction costs,
impacts, revenue
With Selected
mooting facilities etc,
operation of hotel
Development
project
Team
Dotailed
Alternative B
Implementation Identity
Public Partnership
Process of public Candidates to
-
Amend contract
partnership to Participate In Project Project Flnanch
—I,
with consultant
assemble site, Partnership Validation/ Plan
team to reflect
select Financial Confirmation Confirmation
revised scope of
services
development Institutions, Hotel Pro -forma Analy:
team, secure hotel Operators
operation, attract
financial institution
Phase II
Alternative B
Provide
Provide
Advisement
Develop RFP
Assistance In
During
Package
Screening of
Negotiations
Qualified
With Selected
Applleatlons
Development
Team
Strategic Evaluation from - �\
DDA. and City Staff
opre
Determneferr ed plan of - RRC
aeon ASSOCIATES OSPITIUM action �^�� � Pete Dordidcr ]D
COBURN
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Ft Collins/DDA Hotel Consulting Budget Allocation
Phase I
Phase 11- Alternative A
Cost Summary
Phase 1 $70,875
Phase I -Alternative A $34,545
Travel/Expenses $19,580
Total $125,000
Team
ISwerdlina Associates $24.800 1
Coburn $20,650
Pete Dordick $17,100
Cost $125,000
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Pete Dordidc, 7D
CONSULTANT BACKGROUND .............................................. 1
RRC Associates/Smith Travel Research..............................................................1
Hospitium.........................................................................................................3
Swerdling and Associates.................................................................................. 4
CoburnDevelopment........................................................................................ 5
PeteDordick, JD................................................................................................6
PROJECT APPROACH............................................................ 7
HotelBrand Profile............................................................................................7
Statement of Public Participation......................................................................8
Pre -qualification Criteria for Teams...................................................................9
Identify Potential Team Members...................................................................10
Assist with Screening and Selecting Development Team.................................10
Projectvalidation............................................................................................10
FinancialAnalysis............................................................................................11
. Provide Advisement During Negotiations........................................................11
RELEVANT EXPERIENCE ......•...................•..,.........• ..............12
RRC Associates/Smith Travel Research. .12
Hospitium.......................................................................................................13
Swerdling and Associates................................................................................14
Coburn Development......................................................................................16
PeteDordick....................................................................................................18
PROJECT TEAM ROLES AND RESPONSIBILITIES............ 18
FEES....................................................................................... 19
APPENDIX — ADDITIONAL FIRM INFORMATION ................ 20
RRC Associates, Inc.
Contents
Consultant Background
A brief history of the background of the proposed project team is provided below. Nolan
Rosall, of RRC Associates, would serve as project manager and key point person for the City and
the DDA. Additional firm information is included in the appendix.
RRC Associates/Smith Travel Research
RRC Associates is a consulting and research firm founded in 1983 and based in Boulder,
Colorado. We have 18 persons on staff, representing a variety of disciplines and advanced
degrees. The group has been blended to allow us to provide competent and cost-effective
consulting and information -gathering services to a wide range of clients. RRC has extensive
experience in economic development and redevelopment. We have frequently designed and
carried out research programs for public- and private- sector clients involved in analyzing
residential and commercial development opportunities and marketing programs. Additionally,
we have conducted numerous fiscal and economic impact studies, projecting service demands
and costs, both in serving projects directly, and as related to secondary impacts.
In 2007, Smith Travel Research (STR) acquired RRC Associates, which now operates as a wholly
owned subsidiary of the international hotel research company. Our association with STR brings
a new perspective and ability to match visitor research with occupancy statistics for a more
complete view of visitation. Our team's perspective and capabilities are augmented by access
to data and research conclusions that STR is constantly developing and updating for clients that
include both hotels and visitor and convention bureaus.
Nolan Rosall, one of the founding partners of RRC Associates, will lead the multi -disciplinary
team in achieving the goals identified in the proposal. Mr. Rosall brings over 30 years of
experience in responsible public and private sector planning, redevelopment, and market
research —much of which was dedicated to successful downtown revitalization efforts.
One significant example of Mr. Rosall's downtown commitment and expertise is his ongoing
role in the revitalization of Downtown Boulder. Starting in 1974, while serving as the Director
of Planning and Community Development for the City of Boulder, Nolan developed the
comprehensive economic development strategy, coordinated the overall planning and urban
design vision, and identified and executed the method of financing the required public
infrastructure and capital improvements. He led the overall successful implementation of the
Pearl Street pedestrian mall, and was instrumental in implementing the full complement of
related public improvements, off-street parking facilities, and private renovations.
RRC Associates, Inc.
CONSULTANT BACKGROUND.........................................................1
RRC Associates/Smith Travel Research...........................................................................1
Hospitium.......................................................................................................................3
Swerdling and Associates................................................................................................4
Coburn Development ...................................:.. ...
..................
.....
..... ....
..........
.....
.."""...... 5
PeteDordick, JD..............................................................................................................6
SCOPE................................................................................................. 7
PhaseI............................................................................................................................7
ProjectKick-Off..........................................:.......................................................................... 7
Finance101...........................................................................................................................
7
Preliminary Market Assessment...........................................................................................
7
Working Session #1 with Decision Makers.................................................:......................... 8
Identify/Evaluate/Prioritize Alternative Sites.......................................................................
9
Develop Statement of Public Participation/Consultant Team Evaluation ...........................
9
Working Session #2 with Decision Makers.........................................................................
11
PhaseII _ Alternative A.................................................................................................11
Identify Potential Team Members....................................................................................1.
11
DevelopRFP Package..........................................................................................................
12
Assist with Screening and Selecting Development Team ...................................................
12
ProjectValidation................................................................................................................
13
FinancialAnalysis................................................................................................................
13
Provide Advisement During Negotiations..........................................................................
13
APPENDIXA .....................................................................................14-
HotelConsulting Work Program...............................:....................................................is
Budget..........................................................................................................................16
Schedule.......................................................................................................................17
RRC Associates, Inc. Contents
Among the key private redevelopment efforts included in the Downtown Boulder program was
the complete renovation and expansion of the historic Hotel Boulderado, as well as the
construction of the upscale St. Julien Hotel. The St. Julien was developed on a former industrial
site owned in part by the Burlington Northern Railroad, and in part by the Boulder Central Area
Improvement District (CAGID), which had acquired the property from a private owner who had
also used the site for industrial purposes. The St. Julien project was made possible through the
proactive participation of a Tax Increment Financing District, which helped assemble the
property, and the participation of the GID which constructed the below -grade multi -level
parking structure supporting the hotel and ancillary meeting space, as well as the parking needs
of the surrounding general retail and office uses.
After leaving his position with the City of Boulder, Nolan remained actively involved in multiple
facets of the ongoing Downtown Boulder revitalization and operations. Among these
responsibilities, Nolan has served as a member of the Downtown Boulder Inc. Board of
Directors and a member of the Downtown Management Commission. Nolan has often played a
significant role in a professional consultant capacity, assisting the City in:
• the drafting of Design Guidelines,
• creation of a Historic District covering major portions of downtown,
• coordinating a preliminary conference center feasibility study for the University of
Colorado which would also incorporate the needs of the City,
• serving as a key consultant in a carrying capacity urban design study which led to a
comprehensive rezoning and upgraded public infrastructure.
Through RRC Associates, Nolan has also implemented an annual Downtown Visitor Survey
which has served multiple market research and strategic information needs for the City of
Boulder, as well as a number of downtown organizations and districts.
Prior to coming to the City of Boulder, Mr. Rosall served as Executive Director of a major urban
renewal/redevelopment authority, which included among several projects a downtown
beautification and a broader downtown revitalization project.
More recently, as part of RRC Associates, Nolan has participated in a variety of central area and
village core strategic revitalization and tourism master plans, which typically feature a variety of
hotel and commercial lodging types and price points. Frequently included in such plans are the
development of strategies and programs designed to improve the appeal and ability to attract
various conference/meeting groups.
Finally, over the past 18 months RRC has joined forces with Smith Travel Research (STR) as
mentioned above. As a partner with RRC, Nolan has worked closely with STR in the application
of various hotel databases and lodging reports. STR has ongoing relationships with every major
hotel brand in North America, for whom they provide extensive data. STR brings the ability to
identify and document key hotel performance metrics for a selected group of comparable
RRC Associates, Inc. 2
downtown communities, including those with major universities as in Fort Collins. The effective
use of this information will be an invaluable resource to the consultant team and to the DDA in
the performance of the work as defined in the proposal.
Hospitium
Hospitium is a hotel consulting firm that specializes in the upscale and luxury sectors of the
lodging industry in North America. Many of these properties incorporate special meeting and
conference facilities. From the early stages of development or deal negotiation through asset
disposition, Hospitium delivers timely and useful research, analysis, and insight that assist the
various needs of owners, developers, management companies, and financial institutions.
Hospitium provides a wide array of advisory services and products, including feasibility studies,
market analyses, due diligence, underwriting, strategic planning, development consulting, deal
sourcing, and transaction guidance.
Stephen Hennis, CHA, is the Managing Director of Hospitium and has over fifteen years of
experience in the analysis of lodging investments. Steve has appraised and evaluated over 500
lodging facilities, and has been involved in the underwriting, negotiation, and acquisition of
over $400 million in luxury hotels and resorts.
Prior to becoming Managing Director of Hospitium, Steve served as Vice President of Hospitality
Investments for Lowe Enterprises and Destination Hotels & Resorts where he worked on
acquisitions, dispositions, and development projects. Steve managed transactions through the
underwriting, negotiation, due diligence, and transition process. Steve previously served as Vice
President and Director of Research for HVS International where he specialized in the analysis
and valuation of large portfolios for cross -collateralized securitizations and oversaw the
redevelopment of HVS' analytical models and report templates. Steve also held positions at
Marriott International, Caesars World, and the award -winning Castle Marne bed and breakfast.
Steve is a graduate of the University of Denver's School of Hotel, Restaurant & Tourism
Management. He holds the Certified Hotel Administrator designation from the American Hotel
& Lodging Educational Institute. Steve is a member of the Appraisal Institute, Johnson Capital's
Global Hospitality Industry Advisory Board, and the Urban Land Institute. He is also a frequent
lecturer at the University of Denver's School of Hotel, Restaurant & Tourism Management, and
a panelist at the International Hospitality Investment Conference, the Americas Lodging
Investment Summit, and the Lodging Industry Investment Council.
RRC Associates, Inc. 3
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Swerdling and Associates
Swerdling & Associates ("S&A") is an independent financial consulting firm based in Denver,
Colorado. The company has been providing financial services to clients for over 25 years and
has extensive experience in structuring, negotiating and underwriting public -private
partnerships. S&A specializes in assisting state agencies, local governments, and real estate
developers determine the best possible financing strategy for their project needs. Their areas
of expertise are in Hotels, Convention Centers/Conference Centers, and Entertainment/Urban
Development Districts.
The firm is experienced in every phase of the development process. S&A works closely with
their clients to negotiate agreements favorable to their interests while satisfying the capital and
credit markets. Their knowledge of available sources of funding, experience in obtaining access
to those sources of funding, and ability to manage the appropriate uses of funding saves their
client's a considerable amount of time and expense.
S&A's efforts are driven by their client's financing requirements. In meeting these
requirements they are fully capable of suggesting and evaluating financing solutions under the
best possible terms. As a totally independent financial consulting firm, S&A fully represents
their client's interest in a financial transaction.
Tax -Exempt Financing
rS&A
is an expert in tax-exempt financings. They have extensive experience in advising state and
local governments, authorities/districts and other issuers on the sale of tax-exempt bonds.
They understand the key factors that impact municipalities during the development process.
They work with clients to ensure that all contracts with developers, construction firms,
operators, property managers and investors in a tax-exempt financing are carefully designed to
comply with the federal tax law. We have experience in all of these matters and will work with
local counsel to identify potential concerns while providing a detailed explanation of actions
that can be taken to mitigate such issues.
Conventional Financing
S&A also severs as a capital advisory firm specializing in debt financing, mezzanine financing,
and equity. With expertise across the capital stack, S&A can help develop and execute financial
structures that enhance value. S&A associates can manage all key financial relationships to
facilitate successful development.
RRC Associates, Inc. 4
Coburn Development
Coburn Development has successfully developed, designed, built and operated a portfolio value
of over $200 million. The firm's continuous annual financial oversight and direct management
is in excess of $35 million with a project capacity of $15-20 million. Principled leadership is part
of Coburn's core, and the result is demonstrated in its successful project track record.
Coburn has a long and successful history of working with public entities. We have partnered
with municipalities and non -profits on work from long-term planning to current projects,
covering market rate, affordable and mixed -use developments. Penny Flats is an example of a
dual effort by Coburn and the City of Fort Collins. Coburn won the RFP from the City of Fort
Collins to redevelop this site, and the public/private partnership has created a visionary solution
for this downtown mixed -use project, which has completed Phase I.
Coburn Development is well versed in public process and function. They work often and well
with public entities on both a corporate and personal level. The company has been retained by
a number of municipalities on issues from long-range urban planning to sustainability
requirements to affordable housing guidelines. There are members of Coburn who currently
serve on various civic groups, including the Crested Butte Town Council and City of Boulder
Planning Board, as well as members who have served in the past on boards such as the City of
Boulder Technical Review Group for Affordable Housing Funding Allocation and the City of
Boulder Downtown Design Advisory Board.
Coburn understands the public process and how.to be effective when working in that arena.
Most importantly, Coburn is steadfast in its commitment to creating great places. Great places
will endure, captivate and contribute through a larger timeframe than any individual or firm.
Creating great places is a guiding principle at Coburn, and a goal they hope will inspire others to
excel.
John A. Koval is the Director of Development for Coburn Development, responsible for the
initial economic determination of project evaluation and viability, and management of the
ongoing development process. He has over twenty years' experience in the real estate industry
with an emphasis on acquisitions, commercial brokerage, property management, development
and construction. John served on the Citizen's Technical Review Group for Affordable Housing
Funding Allocation and on the Capital Improvement Committee for Boulder Valley School
District, and is a past member of the Board of Directors for the Boulder Chamber of Commerce.
Currently, John is a Downtown Management Commissioner.
Dan Rotner is a senior architect and project manager for Coburn Development. Dan is
responsible for community planning and project management, as well as regulating
architectural definition and documentation quality control. He oversees individual projects and
specializes in urban infill development, site design, neighborhood planning, building systems
RRC Associates, Inc.
and specifications, mountain development, and entitlement. Dan has successfully supported
planning and development projects in Fort Collins, Boulder, Denver, Snowmass, and Crested
Butte. He is a Licensed Architect in Colorado.
Pete Dordick, JD
Pete Dordick, JD, has 20+ years of real estate development experience including consulting on
iacquisitions, development and investments, providing client based and in-house legal guidance,
and offering all phases of development expertise from identifying acquisition targets to
analyzing metrics to project management. He is a former principal partner in a Boulder,
Colorado law firm concentrating on real estate development and construction law. Within his
practice he led the development of public private ventures with the State of Colorado,
managed projects involving the BLM, FEMA and the Army Corps of Engineers.
I
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While practicing law he founded a Development & Construction Company that developed and
built hundreds of homes on Colorado's Front Range, luxury homes in the Vail Valley and a wide
range of hospitality, commercial and government projects. Focusing on the hospitality sector
he worked on hotel projects on the Isla de Margarita in Venezuela, Baja Norte, Mexico, the
Bahamas, the US 36 corridor and Denver - where he was the lead developer of and a partner in
the new Element hotel by Westin and Aspen. He has been a development consultant on hotel
projects in Texas, Florida, Alabama and California, North Carolina, the Mall of America, an eco-
hotel concept and a public/private partnership for a University Hotel and Conference Center.
Pete's responsibilities have included site selection, contract negotiations, architectural and civil
engineering oversight, entitlements, financing, horizontal development, project management,
acquisitions and legal. His companies have held both residential and commercial general
contracting licenses necessitating his direct participation in all horizontal and vertical
construction decisions.
He has been published and quoted by HVS, Cornell University Hotel School, a wide range of on-
line hospitality publications and the California Lodging Industry.
In addition to his development experience, his legal work has included the preparation of
Fairness Opinion Letters with concluded hospitality assignments with values totaling over
$200,000,000 and closed acquisitions, sales and investments totaling over $300,000,000.
RRC Associates, Inc. 6
Project Approach
Our main goal in developing the approach we have chosen and in creating a multi -disciplinary
team of experts is to provide the City and the DDA with the technical support necessary to
develop a successful public/private partnership and to provide the Downtown with a multi-
purpose hotel and meeting space. Our approach consists of working hand -in -hand with the City
of Fort Collins and the DDA in creating common goals for the project, including branding,
financial, quality, and schedule -based elements.
As a first phase in the process we would work with the City and the DDA to develop a scope of
work and to establish a schedule of milestone events and deliverables, including hotel branding,
RFQ/RFP development, proposal submitting, interviews and negotiations. Our project
approach below addresses the framework provided in the RFQ, as well as suggests some
additional considerations.
Hotel Brand Profile
STIR and STIR Global are the leaders in providing hotel industry market data, including custom
trend and benchmarking reports. We will use STR's performance data including occupancy,
ADR, RevPAR, supply, demand and revenue for a series of comparable communities to
formulate a hotel brand profile that reinforces the brand of the downtown and broader Fort
Collins community. Through this process we will work with the City and the DDA to define the
comparable communities from STR's database of over 1,300 markets worldwide based on size,
location, presence of a University and other key demographic, economic or physical traits.
We will use STR data, in addition to other data sources and the professional experience of our
team to:
• evaluate the existing supply of lodging facilities in Fort Collins and the surrounding
communities,
• determine the competitiveness of each hotel with the proposed development,
• analyze the positive attributes of each that could potentially be incorporated into the
proposed project,
• thoroughly research the status of other proposed lodging developments in the area and
determine their impact on the proposed project,
• investigate the demand base in Fort Collins, particularly as it relates to such entities as
Colorado State University, and major companies including but not limited to Hewlett
Packard, Agilent Technologies, and Eastman Kodak, and
• evaluate the room night demand levels from the major demand drivers and understand
their needs for lodging accommodations.
RRC Associates, Inc. 7
While we understand that a full market analysis will be required as part of the future hotel
development RFP process, we feel it will be essential at the onset of the project to gather
market -area data as part of the brand profile development. Following a study of economic
trends in Fort Collins and the northern Colorado region, we will forecast demand growth for the
various market segments. We will analyze current and recent projects in high -growth
communities similar to Fort Collins. Our analysis will include facilities reviews and brand
analyses. We will determine the best brand(s) and "chain scale" that will not only enhance the
proposed hotel's performance, but will also complement the character of downtown Fort
Collins.
Statement of Public Participation
A key dimension of the team's approach is that we will work hand -in -hand with the City of Fort
Collins and the DDA in creating common goals for the project, including financial, creative,
quality and schedule -based constraints. In concert with our clients, we determine the best
method to reach their objectives. The truest measure of a project's success is the community's
satisfaction years after its completion.
Some steps in assessing the needs and objectives of the community and turning that
information into a viable urban planning solution include:
0 Define the givens and objectives of this planning effort through meetings conducted
with the stakeholder groups and supporting research.
• Include a broad spectrum of the community in the process and actively solicit input of
public agencies, neighborhood groups, business owners, developers and other parties
with an interest in the future of the downtown.
• Establish a stakeholder's advisory committee at the beginning to provide continuity in
the community representation throughout the process.
• Analyze economic conditions to understand property values, costs, financing, incentives
and sales/leasing projections.
• Determine the appropriate criteria and advice to DDA to select the site within the
Downtown area that would most ensure a successful outcome.
• Understand the context with respect to both the built/ regulatory environment and the
community.
• Engage the public before the design process commences, allowing our team to
understand the issues impacting this planning effort to the greatest extent possible.
• Provide technical advisory assistance for a minimum of 8-10 public meetings organized
by the DDA/City staff.
r
The goal throughout this process will be to support the leadership of Fort Collins and engage
the community on a broad front to allow for a multidimensional solution that serves the
constituency and delivers on the policy objectives set forth by the municipality. Once we have
RRC Associates, Inc. 8
the collected feedback, we can summarize the technical components associated with the City of
Fort Collins planning process and can illustrate the overall process in a detailed format from the
developer's point of view.
Financial support from the Downtown Development Authority (DDA) in Fort Collins will ensure
that the project can be built to the highest quality. Having successfully worked with the DDA on
Tax Increment Financing (TIF), Coburn Development assisted by other team members is able to
outline the detailed steps necessary to secure funds towards the project. Those steps include:
• project presentation outlining eligible components,
• detailed submission to the taxing authority (Larimer County) in order to determine the
eligible amount of money available,
• negotiating the easement and necessary agreements associated with the funding, and
• setting up long-term compliance and monitoring for the invested funds.
Pre -qualification Criteria for Teams
Our team has assisted communities and developers in the use of the RFP/RFQ process to
generate interest in development projects and efficiently select the optimal development team.
In our opinion, this process can be extremely effective in identifying the "best fit" development
team, but it requires forethought and preplanning. We would bring our prior experience and
judgment to the process. Based on similar work in other communities we would expect to
provide the following types of guidance. We would help to direct Ft. Collins to potential
development partners including hotel brands and chain scales that would likely be best in Ft.
Collins. We would offer recommendations on other mixed -use development partners or team
members that might be appropriate to round out the team. We would recommend and then
assist in developing appropriate information that will be shared with all potential development
candidates in advance of finalizing the RFP (to gain efficiency and interest), without requiring all
teams to go out and develop the same information. This step can be important, ensuring that
basic market information and facts are at the fingertips of prospects rather than requiring a
great deal of basic market research. The RFP language is also important in that it
communicates that the community "knows what it is doing and what it wants."
Further, a well -written request for proposals, with appropriate accompanying information, also
means that development teams can rapidly and efficiently assess the opportunity and get
involved with reduced effort. Finally, we can assist in developing appropriate guidelines for
pre -qualifying teams and targeting efforts to get the team that will represent maximum
probability of success in Ft. Collins.
RRC Associates, Inc. 9
I
Identify Potential Team Members
All team members are established in the development community and have longstanding and
proven relationships with development professionals. Depending on the results of the hotel
branding, we would call on our team to provide recommendations for the best teams to
successfully complete the project. In particular, STR has positive and ongoing working
relationships throughout the lodging industry, encompassing hotels and hotel developers
across a broad spectrum of classes. Through use of its extensive hotel performance and
operations databases, STIR will provide invaluable assistance to the consultant team in
identifying the most reliable and attractive candidates to best achieve Fort Collin's downtown
revitalization objectives.
Assist with Screening and Selecting Development Team
Based on the criteria that are developed for teams, and the receipt of proposals, we can
provide assistance in screening and selecting teams. This step will involve assessing submittals
in detail. The past experience of teams, their adherence to the criteria for selection, and
perhaps most important, the financial details of a proposal will all be carefully scrutinized. Our
team has the capability to assist Ft. Collins and the DDA in all aspects of this process, including
providing guidance on communications, scheduling, formats for interviews and evaluation, and
technical reviews of financial aspects of proposals. Together, these efforts will ensure that the
City obtains the best possible development partner, with financial capabilities as well as proven
design and development resources.
Project Validation
Based on the brand(s) determined to be most suitable and cohesive with downtown Fort
Collins, we will determine the best potential investment scenarios for the project and formulate
income and expense projections for various scenarios driven by our findings in our market
investigation. We will review the operations of similar properties, as well as other hotels in the
Fort Collins area, and utilize their performance metrics as a basis for our pro forma. Data from
STR will be particularly useful in understanding the operations of similar hotel properties, as
well as confirming revenue and occupancy assumptions. We will review and evaluate the
development costs of other lodging facilities comparable to the proposed project. Utilizing
various development scenarios and analyses, we will determine the size, facilities program, and
market positioning that would maximize return potential for the proposed project. Overall, we
will provide assurance that the proposed development schedule and end results are realistic
and achievable.
RRC Associates, Inc. 10
Financial Analysis
The engagement will begin by assessing the project's needs as determined by the local and
national hospitality and meetings market. We will work with the City and the DDA to assess its
resources as determined by available funding sources, projected hotel operating income and
legal constraints. An assessment of risk allocation will also be determined by the City and
DDA's preferences in light of the needs and resources previously discussed. The objectives of
these assignments will enable us to formulate alternative ownership and financing plans to
meet the needs of the City and DDA.
The team will prepare and review plans of finance for public, private, and public/private
ownership structures. We will develop alternative financings and provide detailed evaluations
of the implications for each structure. A cash flow analysis will be performed and will include
sources and uses of funds and cash flow summary. We will provide shock scenarios to assist in
the assessment of risks associated with each financing structure.
We will work with the City and DDA in considering the proper mix of public and private
participation as determined by their needs, risks, and resources. Our attention will be directed
towards determining the proper allocation of risk to ensure the City and DDA maximize its
return on any investment. One additional element required to public -private partnerships is to
determine a funding gap. A "funding gap" is the amount of public subsidy required to increase
a private owner's return on investment to a level that would incentivize a private owner to
develop and own the project.
If the recommended plan of finance includes a tax-exempt bond financing, a number of tax
considerations will need to be addressed. These may include the creation of a 501c(3) should
the City decide it does not want to directly issue the bonds; the need to avoid an impermissible
"private use" that would cause tax-exempt bonds to become taxable; the funding of working
capital; and the ability to characterize subordinate bonds as debt and not equity. We have
experience in all of these matters from working on prior transactions and will work with the
City and the DDA to identify all potential tax concerns while providing a detailed explanation of
actions that can be taken to mitigate such issues.
After our analysis, we will assist the City and DDA in the determination of the optimal financing
structure. The optimal financing structure will reflect the City and DDA's specific preferences,
and also adhere to the current requirements of the credit and capital markets.
Provide Advisement During Negotiations
Having a consultant to provide advisement during negotiations can be very helpful in
public/private partnerships, serving the role of the objective third party. We would start at and
include due diligence review of the potential developers with regard to partners, financial
RRC Associates, Inc. 11
Consultant Background
A brief history of the background of the proposed project team is provided below. Nolan
Rosall, of RRC Associates, would serve as project manager and key point person for the City and
the DDA. Additional firm information is included in the appendix.
RRC Associates/Smith Travel Research
RRC Associates is a consulting and research firm founded in 1983 and based in Boulder,
Colorado. We have 18 persons on staff, representing a variety of disciplines and advanced
degrees. The group has been blended to allow us to provide competent and cost-effective
consulting and information -gathering services to a wide range of clients. RRC has extensive
experience in economic development and redevelopment. We have frequently designed and
carried out research programs for public- and private- sector clients involved in analyzing
residential and commercial development opportunities and marketing programs. Additionally,
we have conducted numerous fiscal and economic impact studies, projecting service demands
and costs, both in serving projects directly, and as related to secondary impacts.
In 2007, Smith Travel Research (STR) acquired RRC Associates, which now operates as a wholly
owned subsidiary of the international hotel research company. Our association with STR brings
a new perspective and ability to match visitor research with occupancy statistics for a more
complete view of visitation. Our team's perspective and capabilities are augmented by access
to data and research conclusions that STR is constantly developing and updating for clients that
include both hotels and visitor and convention bureaus.
Nolan Rosall, one of the founding partners of RRC Associates, will lead the multi -disciplinary
team in achieving the goals identified in the proposal. Mr. Rosall brings over 30 years of
experience in responsible public and private sector planning; redevelopment, and market
research —much of which was dedicated to successful downtown revitalization efforts.
One significant example of Mr. Rosall's downtown commitment and expertise is his ongoing
role in the revitalization of Downtown Boulder. Starting in 1974, while serving as the Director
of Planning and Community Development for the City of Boulder, Nolan developed the
comprehensive economic development strategy, coordinated the overall planning and urban
design vision, and identified and executed the method of financing the required public.
infrastructure and capital improvements. He led the overall successful implementation of the
Pearl Street pedestrian mall, and was instrumental in implementing the full complement of
related public improvements, off-street parking facilities, and private renovations.
RRC Associates, Inc.
resources, competed projects, operational capabilities, past or pending lawsuits/incomplete
projects/etc., to be followed by making certain that the developer, the financing mechanisms
and the scope of development are compatible. Pete will have the advantage of having been on
the development side, and can also help identify pitfalls in the financing schemes, capabilities
and contract terms and negotiating positions.
Relevant Experience
RRC Associates/Smith Travel Research
Downtown Boulder Planning and Capacity Studies
In 1996, RRC provided economic analysis and planning services which ultimately contributed to
numerous pivotal decisions on the future of downtown Boulder, including the provision of
substantially more parking, significant downzoning, density bonuses for residential
development, and ensuring the vitality of the retail base. RRC has conducted periodic studies
since then, including updates in 2001 and 2006, which have tracked development and
economic vitality indicators of the downtown area, to help inform ongoing planning and policy
decisions. In 2006, RRC also conducted a similar planning and capacity study in the University
Hill district of Boulder.
Additionally, for 12 years, RRC Associates has conducted a survey of visitors to the Pearl Street
Mall, Boulder's downtown pedestrian shopping area. The project utilizes interviewers to
conduct surveys of randomly -selected pedestrians and asks about visitor type, spending
patterns, satisfaction with attributes/strengths and weaknesses, mode of transportation, prior
visits, suggestions for improvement, and many other issues. The results are heavily used to
shape the overall strategy and marketing of the area.
Reference: City of Boulder and Downtown Boulder Inc.
Molly Winter, Executive Director of City of Boulder Downtown and University Hill
Management Division/Parking Services, 303-413-7317
Sean Maher, Executive Director, Downtown Boulder Inc., 303-449-3774
Durango Business Improvement District
In 2008-2009, RRC was retained by the Durango Business Improvement District and the City of
Durango to conduct a market assessment and strategic management plan for its downtown.
This year -long process involved extensive research in the form of focus groups, resident and
visitor surveys, and collection and analysis of secondary economic data such as sales, property,
and lodging sector information. An evaluation of the organizational structure of the BID and
affiliate agencies such as the Chamber of Commerce, economic development agency, tourism
board, and local government was an integral part of the strategic management plan and
developing a vision for the future of the BID. Phase I (Market Assessment) and Phase II
(Downtown Management Plan) can be viewed at www.downtowndurango.org.
RRC Associates, Inc. 12
Reference: City of Durango & Downtown Durango Business Improvement District
Bob Kunkel, Central Business District Coordinator, 970-375-5000
Snowmass Village Strategic Plan
In 2007, working with a special committee of Snowmass Village business representatives,
citizens, and town staff and elected officials, RRC Associates developed the Snowmass Village
Strategic Plan, a wide-ranging planning document aimed at positioning Snowmass Village
effectively as a tourism destination. The Plan evaluated target market segments, competitive
strengths and weaknesses, desired retail and lodging mix, conference and performing arts
opportunities, modeling techniques to assess progress and establish performance goals,
marketing functions, and related issues.
Reference: Town of Snowmass Village
Russell Forest, Town Manager, 970-923-3777 ext 606
Susan Hamley, Marketing Director, 970-922-2296
Hospitium
Berkeley Charles Hotel
Performed a market study for the proposed development of a 300-room luxury hotel adjacent
to UC Berkeley. The project will also house a restaurant and lounge, 40,000 square feet of
meeting space, and UC Berkeley's Center for Executive Education, which is part of the Haas
School of Business. The $170 million project is being developed by a partnership between
Carpenter & Company and UC Berkeley. The City of Berkeley is expected to provide a subsidy
based on the findings from the market analysis. The project is currently on hold due to the lack
of available financing.
Reference: Peter Diana, Vice President & General Counsel, Carpenter & Company,
617.864.2800, pdiana@carpenterholdings.com
Estancia La Jolla Hotel & Spa
Performed market analysis, recommended positioning, and investment return analysis for a
proposed 210-room hotel, spa, and 21,000-square-foot conference center adjacent to UC San
Diego. In an effort to maximize the potential client base for the property, we evaluated ways to
capture demand from the various market segments in the region. Consequently, the project
was designed and positioned to appeal to leisure guests, business travelers, and conference
goers alike. The property was developed by Lowe Enterprises on land owned by UCSD. It
opened in June 2004.
Reference: Bernie Siegel, Principal, KSL Capital Partners (formerly Executive Vice President of
Hospitality Investments at Lowe Enterprises)
RRC Associates, Inc. 13
Marriott Pueblo
Performed an analysis of the sale price of the Marriott Pueblo. The project was developed in
1998 with land provided by the City of Pueblo. The hotel includes 164 rooms, a restaurant and
lounge, and 21,000 square feet of function space. Based on the terms of the original
development agreement, the developer was required to compensate the City if the sale
proceeds exceeded a certain threshold. Thus, the City required an evaluation of the sale price
to determine if it was at market levels. We determined that the sale price was valid and the
property transaction was completed.
Reference: Michael Tedesco, Executive Director, Urban Renewal Authority of Pueblo,
719.542.2577, mtedesco@pueblourbanrenewal.org
Swerdling and Associates
Hyatt Denver Convention Center Hotel I Denver, Colorado
Bob Swerdling served as lead underwriter in the project. The goal of the City and County of
Denver in financing the hotel project was to implement a high-grade financing structure. In
■ order for the project to obtain bond insurance, the financing included an annual, subject to
appropriation, payment from the City and County of Denver (City Payment) in an amount equal
to less than 50% of the annual debt service. The annual City Payment was structured in such a
manner than it would not have an impact on the City's general fund. They were projected to be
less than the tax revenue that the City collected from hotel's operations (sales taxes; occupancy
taxes and property taxes/PILOT payment).
In 2006, Robert Swerdling led negotiations for the refunding of the original transaction and was
able to provide substantial economic benefits to both the City and the Authority. As part of the
restructuring, there was a reduction in reserve requirements from $40.0 million to $12.0
million, and an increase and acceleration of the return of the City Payment (a $19.0 million
benefit from 2006 to 2010). The Authority also realized a $9.0 million present value debt
service savings. The project successfully opened in December of 2005.
Reference:
Cheryl Cohen-Vader, Chief Deputy Director (2008-2004) Denver International Airport, Revenue
Department Manager City of Denver (prior to 2004)
7350 East 29th Street, Suite 300
Denver, CO 80238
(303) 250-0628
cheryl.cohen-vader@diadenver.net
Baltimore Hilton Convention Center Hotel I Baltimore, Maryland
Led by Mr. Swerdling, Piper Jaffray was the lead -senior managing underwriter on the Mayor
and City Council of Baltimore Convention Center Hotel Revenue Bonds.
RRC Associates, Inc. 14
Mr. Swerdling worked closely with the City, its financial advisor and the rating agencies to
develop a capital structure which sought to balance the City's goals of attaining the lowest cost
of capital by securing the ratings required for a "AAA" bond insurance policy while at the same
time minimizing the impact of the City's financial participation on its general fund. The final
structure included $247.5 million in "AAA" insured senior lien bonds (insured by XL Capital
Assurance Corporation) and $53.44 million in subordinate lien bonds. The subordinate lien
bonds were uninsured and rated "Ba1/BB" and were included in the capital structure to reduce
the amount of senior debt per hotel room, one of the two major concerns of the ratings
agencies. The project successfully opened in August of 2008.
Reference:
Stan Milesky, City Finance Director
Mayor and City Council of Baltimore
8930 Stanford Blvd.
Colombia, MD 21045
Phone: (410) 313-2195
smileskv@howardcountvmd.gov
Austin Convention Center Hotel I Austin, Texas
Bob Swerdling served as lead underwriter in the project. The original capital structure for the
financing of the 800-room hotel contemplated the issuance of non -rated bonds and did not
include any ongoing financial support from the City. However, due to certain fundamental
changes in the capital markets including the demise of the hedge fund Long Term Capital
Management and the Russian credit defaults which caused a dramatic shift in investment
monies away from the high yield sector, the plan of finance was reengineered. As a result, Bob
Swerdling worked closely with the City and its financial advisor to develop an alternative plan of
finance for the construction of the City's convention center hotel which met the criteria of the
evolving capital markets at the time.
The negotiations with bond insurers and the sale and marketing of the 2001 Austin bonds were
extremely onerous due to minimal municipal financial participation and unstable capital
markets. Despite the uncertain market conditions and lack of municipal support, Bob
Swerdling, the City and its financial advisor were able to structure a financing that included a
sizable subordinate bond that was insured by ZC Specialty, a "AA" rated multi -line non -
municipal insurance provider. The final structure included the June 2001 sale of investment
grade rated senior debt in the amount of $109 million, AA -rated credit enhanced subordinate
debt in the amount of $135 million and the placement of deeply subordinated third tier debt in
the amount of $20 million. The City's financial participation was limited to a $15 million
upfront contribution and ongoing governmental financial support for the bonds was not
required.
RRC Associates, Inc. 15
I
LJ
Led by Bob Swerdling, Piper Jaffray maintained a working relationship with the City of Austin
and in 2006 completed a refunding of the 2001 bonds. As a part of the scope of services, Bob
Swerdling spent a considerable amount of time working with staff and their financial advisor to
evaluate various financing options which included both traditional and alternative credit
enhancers. As a result of the relationships that were developed during the original financing of
the hotel, Bob Swerdling was able to negotiate a $24.0 million cash rebate of the original
insurance premium from the bond guarantor (ZC Specialty) for refunding the bonds early.
During the refunding process, Bob Swerdling spent a significant amount of time negotiating
with the rating agencies, the mono -line bond insurers, the original bond insurer and investors
to finalize and market the bonds which were rated and sold with AAA insurance without any
municipal participation.
Reference:
David Dawson, Counsel
Austin Convention Center Enterprise
401 Congress Avenue, Suite 2100
Austin, TX 78701
Phone: (512) 370-2847
ddawson@winstead.com
Coburn Development
Penny Flats
Sitting on three-quarters of a city block in downtown Fort Collins, Penny Flats represents a dual
effort by Coburn and the client, the City of Fort Collins. Coburn won the RFP from the City of
Fort Collins to redevelop this site, and the public/private partnership has created a visionary
solution for this downtown mixed -use project, which has just begun construction.
Under Construction
Mixed Use: Retail, Office, & Residential
Building Area: 200,838 sq.ft.
Residential Floor Area: 171,592 sq.ft.
Number of Dwellings: 147
Non -Residential Floor Area: 29,246 sq.ft.
Project Cost: $ 50,000,000 (estimated)
Client: Penny Flats, LLC / City of Fort Collins
Reference:
Anne Aspen, Project Manager
Fort Collins Downtown Development Authority
aaspen@fcgov.com
970-419-8383 -
RRC Associates, Inc. 16
Red Oak Park
Red Oak Park is a 100% affordable project in Boulder, CO, and represents collaboration
between Boulder Housing Partners, a public housing agency, and Coburn Development.
Working together, the team has successfully designed a new, pedestrian -oriented site plan,
identified funding sources, determined optimum construction methods, and is implementing
the project. This visionary reuse of a mobile home park will be a national model for affordable
housing redevelopment.
Under Construction
Mixed Use: Retail, Office, Community Space & Residential
Building Area: 99,000
Residential Floor Area: 80,600
Number of Dwellings: 79
Non -Residential Floor Area: 18,400
Project Cost: Projected
Client: Boulder Housing Partners
Reference:
Stuart Grogan, Development Manager
GroganS@bouldercolorado.gov
720-564-4644
Rodeo Place
In the Town of Snowmass Village, Colorado, is another highly successful partnership between
Coburn and a Colorado municipality. Coburn is providing design solutions, consulting on
development issues, completing construction contract administration, and working with
modular housing providers to create affordable units for the town. Coburn worked hand -in -
hand with the Town to shepherd the project through the concept and approval phases, as well
as helping to ensure the built project meets expectations.
References:
Russell Forest
Town Manager
Town of Snowmass Village
970-923-3777 ext 606
rforrest@tosv.com
Joe Coffey
Housing Manager
Town of Snowmass Village
970-923-2360 ext 510
jcoffey@tosv.com
RRC Associates, Inc. 17
Pete Dordick
Project description: University of South Alabama Hotel and Conference Center
List of deliverables: Developer to deliver a completed hotel and conference center and operate
the center for the benefit of the University
Outcomes: In process, delayed by the economy
References:,Ker Ferguson, Director, University of South Alabama Office of Technology Transfer:
Director, USA Research & Technology Park. (251) 460-6384.
Project Team Roles and Responsibilities
We have provided team roles and responsibilities in the table below as a rough outline of how
we initially see the team members fitting into the scope. However, we would anticipate
refining these roles through discussions with the City, the DDA and the team if chosen for this
project.
Team Member
Areas of Expertise
Responsibilities
Budget
RRC Associates/ Public private partnerships
Hotel brand profile
$40,000-$45,000
Smith Travel
Downtown development -
Pre -qualification criteria
Research
RFQ/RFP process
Project validation
Hotel industry databases
ID qualified development teams
Public participation
Assistance with screening and selection
Advisement during negotiations
Hospitium
Lodging investment analysis
Hotel brand profile
$20,000-$25,000
Public/private finance
Project validation
ID qualified development teams
S&A
Public/private finance
Statement of public participation
$20,000425,000
Hotel development
ID qualified development teams
Financial analysis
Coburn
Real estate development
Statement of public participation
$15,000-$20,000
Development
Public/private partnerships
ID qualified development teams
Pete Dordick
Real estate development consulting
Project validation
$15,000-$20,000
Legal services
Advisement during negotiations
ID qualified development teams
Total Not to Exceed
$125,000
RRC Associates, Inc. 18
Fees
Per the request for qualifications, we understand that the DDA has budgeted approximately
$125,000 to complete the project through 2010. We have provided an allocation of the
proposed budget by expertise above but anticipate that the final fee would be negotiated
based upon the scope of services stipulated in the contract. We anticipate that the final budget
would be based on milestones and deliverables, ensuring the success of the project. Per the
RFQ, we have provided hourly rates for those team members with pre-set rates. Because we
have compiled a team of professionals in the development industry, we would further allocate
the budget based on the specific expertise of each team member and not define roles based on
hourly rates.
Hourly Fees
RRC Associates/STR
Nolan Rosall
$180/hr
Chris Cares
$180/hr
Hospitium
Steve Hennis
$200/hr
Swerdling and Associates
Bob Swerdling
NA
Eric Iravani
NA
Coburn Development
John Covall NA
Dan Rotner NA
Pete Dordick, JD $275/hr
RRC Associates, Inc. 19
Hotel Market Consulting Services — i0•
Appendix -Additional Firm Information
RRC Associates, Inc. Appendix
RRC Associates, Inc. and Smith Travel Research
Nolan Rosall
Chris Cares
Sarah McClain
RRC
ASSOCIATES
An STIR Company
RRC Associates, Inc. Appendix
Among the key private redevelopment efforts included in the Downtown Boulder program was
the complete renovation and expansion of the historic Hotel Boulderado, as well as the
construction of the upscale St. Julien Hotel. The St. Julien was developed on a former industrial
site owned in part by the Burlington Northern Railroad, and in part by the Boulder Central Area
Improvement District (CAGID), which had acquired the property from a private owner who had
also used the site for industrial purposes. The St. Julien project was made possible through the
proactive participation of a Tax Increment Financing District, which helped assemble the
property, and the participation of the GID which constructed the below -grade multi -level
parking structure supporting the hotel and ancillary meeting space, as well as the parking needs
of the surrounding general retail and office uses.
After leaving his position with the City of Boulder, Nolan remained actively involved in multiple
facets of the ongoing Downtown Boulder revitalization and operations. Among these
responsibilities, Nolan has served as a member of the Downtown Boulder Inc. Board of
Directors and a member of the Downtown Management Commission. Nolan has often played a
significant role in a professional consultant capacity, assisting the City in:
• the drafting of Design Guidelines,
• creation of a Historic District covering major portions of downtown,
• coordinating a preliminary conference center feasibility study for the University of
Colorado which would also incorporate the needs of the City,
• serving as a key consultant in a carrying capacity urban design study which led to a
comprehensive rezoning and upgraded public infrastructure.
Through RRC Associates, Nolan has also implemented an annual Downtown Visitor Survey
which has served multiple market research and strategic information needs for the City of
Boulder, as well as a number of downtown organizations and districts.
Prior to coming to the City of Boulder, Mr. Rosall served as Executive Director of a major urban
renewal/redevelopment authority, which included among several projects a downtown
beautification and a broader downtown revitalization project.
More recently, as part of RRC Associates, Nolan has participated in a variety of central area and
village core strategic revitalization and tourism master plans, which typically feature a variety of
hotel and commercial lodging types and price points. Frequently included in such plans are the
development of strategies and programs designed to improve the appeal and ability to attract
various conference/meeting groups.
Finally, over the past 18 months RRC has joined forces with Smith Travel Research (STR) as
mentioned above. As a partner with RRC, Nolan has worked closely with STR in the application
of various hotel databases and lodging reports. STR has ongoing relationships with every major
hotel brand in North America, for whom they provide extensive data. STR brings the ability to
identify and document key hotel performance metrics for a selected group of comparable
RRC Associates, Inc. 2
I
NOLAN L. ROSALL A.i.c.P.
RRC
ASSOCIATES
An STB Company
Nolan has a varied and extensive background in both public and private sector planning and analysis. He has been
principally responsible for a wide range of tourism -related research and master planning for ski resorts, convention
and visitors' associations, and municipalities, as well as national level strategic planning and forecasting for the
National Ski Areas Association and Canadian Ski Council. He has also administered numerous Public Planning
projects, starting with his involvement as Planning Director for the City of Boulder in the 1970s, and continuing
through his private sector work. Nolan was with Boulder during the initiation of both the Pearl Street Mall and the
Danish Plan (Boulder's original growth management system), as well as the adoption of the first Boulder Valley
Comprehensive Plan. Nolan has coordinated several large-scale PUD and development projects, including their
public processing before a wide array of local, regional, and federal agencies. He also has extensive experience in
moderating focus group discussions and other types of public meetings. Nolan is a founding partner and President of
RRC Associates (Rosall Remmen Cares, Inc.).
Education
Master of City and Regional Planning: Cornell University, 1966
Bachelor of Arts, Sociology -City Planning: Rutgers University, 1964
Professional Experience (also see over)
1993topresent PRESIDENT/FOUNDING PARTNER, RRC Associates, Boulder, CO
Representative Projects
National and Regional Associations
Tourism and Ski Area Visitor Research
National Ski Areas Association (NSAA)
Vail/Beaver Creek, CO
Colorado Ski Country USA
Steamboat Springs, CO
Canadian Ski Council
Copper Mountain, CO
South Lake Tahoe Visitors Authority
Breckenridge Ski Resort, CO.
Pacific Northwest Ski Areas Association (PNSAA)
Winter Park, CO
Reno -Sparks Convention & Visitors Authority
Park City and Alta, UT
North and South Lake Tahoe Resorts, CA
Ski Area Feasibility and Impact Assessments
Heavenly Ski Area, CA
Vail Mountain Master Plan
Jackson Hole, WY
Steamboat Mountain Master Plan
Vermont/NH Resorts
Lake Catamount, Colorado Socioeconomic Impact
and Skier Demand Analysis
Economic Impact Studies
Lake Eldora Master Planning and Annexation
Boulder Economic Base Study
Downtown Boulder Market Demand
Public Participation Processes/Planning
South Lake Tahoe Economic Base Study
Boulder Compatible Development
South Lake Tahoe Retail Leakage Analysis
Celestial Seasonings Corporate Headquarters
Snowmass Village Strategic Plan
Marriott Courtyard Hotel Special Use Permit
Public Service Company Land Plan
Real Estate Feasibility Analyses
Vail Village Redevelopment
Pringle Square, Salem, OR
Pearl Street East PUD
Cafritz Holdings, Steamboat Springs, CO
Boulder Tech Center, Boulder County
Vail/Lionshead Residential Demand, CO
Moab Real Estate Feasibility Analysis, UT
Steamboat Grand Interval Ownership, CO
over
NOLAN L. ROSALL A.i.c.P.
RRC
ASSOCIATES
An M Company
Further Work Experience
1979to 1983 VICE PRESIDENT/PARTNER, Gage Davis Associates, Inc., Boulder, CO
Principal -in -charge of ski area and tourism research, public sector planning, and a variety of large-scale development
and redevelopment projects in resorts and communities in the Rocky Mountain region.
197410 1979 DIRECTOR OF PLANNING AND COMMUNITY DEVELOPMENT, City of Boulder, CO
Directed planning programs in a nationally -recognized community of 80,000 people. Responsibilities included a major
downtown pedestrian mall redevelopment project, Boulder Valley Comprehensive Plan, growth management systems,
annexation and capital improvement program. studies, shopping center redevelopment, neighborhood planning, and
community development.
196910 1974 EXECUTIVE DIRECTOR, Redevelopment Authority, Reading, PA
Directed major downtown, industrial park, and neighborhood urban renewal programs which received HUD-AIP National
Design Awards.
1967 ASSISTANT PLANNING DIRECTOR, Reading, PA
1966 SENIOR PLANNER, Hartford, CT
1965 RESEARCH ASSOCIATE, University of Puerto Rico/Ford Foundation, San Juan, Puerto Rico
Professional Organizations
American Planning Association
AICP certified, Charter Member
Downtown Boulder Inc.
RRC
ASSOCIATES
C. CHRIS CARES A.i.C.P. Ao
Chris possesses a diverse background in public and private planning. A founding partner of RRC Associates, he
specializes in practical applications of research techniques including survey and qualitative research, modeling and
applied analysis to solve problems in city planning, administration, and business applications. Chris has extensive
experience in moderating focus group discussions and other types of public meetings. His research and
recommendations have helped to shape the design and marketing strategies of major resorts and other developer
clients, and he has coordinated the planning and public processing of numerous large resort and mixed -use projects.
His work has also involved public sector clients. Housing needs assessments and parks and recreation needs
assessments are particular areas of specialization. Chris has also drafted strategic plans, comprehensive plans, zoning
ordinances, growth management plans, capital improvements programs, and related regulations for towns and cities of
various sizes.
Education
Master of City Planning: Harvard University, 1975
Bachelor of Arts, Political Science: University of Rochester, 1972
University of Michigan, 1971
Professional Experience (also see over)
1963topresent DIRECTOR/FOUNDING PARTNER, RRC Associates, Boulder, CO
Representative Projects
Community/Master Planning
Telluride, CO
Arrowhead at Vail, CO
Rio Grande County, CO
Girdwood, AK
Town of Vail, CO
Breckenridge/Summit County, CO
Crested Butte, CO
Glenwood Springs, CO
Aurora, CO
Housing and Transportation Needs Assessments
Eagle County and Town of Vail, CO
Pitkin/Garfield County, CO
Blaine County, ID
City of Pueblo, CO
San Miguel County, CO
Routt County, CO
Gunnison County, CO
Weld County, CO
Boulder, Lafayette, Longmont and Westminster, CO
Carson City, NV
Public Participation Processes/Planning
Breckenridge, CO
Vail, CO
Broomfield, CO
Pueblo, CO
Tourism and Ski Area Visitor Research
Colorado Tourism Office
Estes Park, CO
Copper Mountain, CO
Vail/Beaver Creek, CO
Cedar Rapids, IA
Colorado Ski County USA
Economic Impact Studies
Boulder Economic Base Study
Southeast Business Partnership
Real Estate Feasibility Analyses
Castle Rock Development Co.
Moab Residential Project Evaluation
Centex Destination Properties
Crested Butte Mountain Resort
over
0
C. CHRIS CARES A.i.C.P.
Further Work Experience
1981 ASSOCIATE, Gage Davis Associates —Boulder, CO
Associate in charge of research studies for major destination resorts in Colorado and Utah
1979 PLANNER, Gage Davis Associates —Boulder, CO
Project manager for a number of resort development projects
1976 PLANNER, City of Boulder —Boulder, CO
1975 PLANNER, Lincoln -Uinta Counties Planning Office —Kemmerer, WY
1974 RESEARCH ASSISTANT, Harvard University
1973 GEOGRAPHY INSTRUCTOR, Plymouth, England
Professional Organizations
American Planning Association
AICP certified
Travel and Tourism Research Association
Treasurer of local chapter
Professional Travel
European Ski Area Study Tour,1982
Other Experience
Instructor
College of Environmental Design
University of Colorado, 1982
Guest Lecturer
National, state and local conferences and seminars
University of Wisconsin Extension Program
RRC
ASSOCIATES
An ST(1 Camµ7nv
I
RRC Associates offers services in research, feasibility planning, and design to local
governments, public agencies and to private developers and corporations. The
company is composed of professionals with extensive experience and qualifications in
addressing the problems and needs of communities. In addition, the firm also serves
ski area and resort operators,, trade associations, tourist organizations, and others
■ ASSOCIATES. interested in the tourism industry. The motivation of our principals and staff, and their
■ active involvement in professional organizations at the state and national level, insure a
high degree of professional skill and creativity. We offer a very personal level of
An STR Company services to our clients.
The firm's principals have prior experience as staff to municipalities and counties, and
through extensive consulting work with a variety of communities and private enterprises, have learned the importance of seeking
solutions to problems which are sensitive to local conditions and tailored to local needs. This understanding of the importance of
local procedures and requirements, and experience in assisting and coordinating public policy makers and staff members at all
levels of government, allows RRC Associates to work effectively in communities representing both developers and public
agencies. The firm emphasizes management techniques which assist the community and its leaders in finding unique solutions
to carefully defined problems. Many of these techniques are applicable to developers who are seeking to determine the most
successful project for a particular parcel of land and need professional assistance in its planning, public processing and
implementation.
RRC Associates strives for a pragmatic approach which balances innovation with working at a reasonable cost. The firm takes
pride in our demonstrated ability to meet our client's time and budget requirements.
SERVICES OFFERED
Survey and Market Research Regulation and Ordinance Evaluation
Market and Strategic Analysis Comprehensive Community Plans
Site Selection Research Zoning and Subdivision Ordinances
User Needs Surveys Historic Preservation Ordinances
Demographic Research Growth Management Ordinances
Community Surveys/Performance Evaluations
Impact Assessment
Land and Development Planning / Design Analysis of Development Plans
Site Analysis and Development Suitability Cost -Revenue Analysis
Program Development and Optimization Environmental Impact Assessment Coordination
Project Feasibility Analysis
Master Development Plans Special Client Services
Planned Unit Developments
Implementation and Phasing Strategies General Consultation
Public Processing and Approvals Project Team Coordination and Management
Design/Development Guidelines Financial Presentation Packages
Goals and Policy Formulation Public Participation Workshops
Housing Needs Assessments, Program Formulation Strategic Project Positioning
Population and Employment Research/ Workouts and Repositioning Strategies
' Analysis/Forecasting
Economic Development Planning
Contacts: Nolan Aosall, nolanCyrrcassoc. com
Chris Cares, chris(yrrcassoc. com
www.rrcassoc.com
4940 Pearl East Circle I Boulder, Colorado 80301 1 303.449.6558 1 www.rrcassoc.com
L-J. L-lj,, t--.J L-J L-j
hotels & management companies
the leader in global hotel benchmarking
We provide the essential, industry -standard performance benchmarking tools for successful hotels. For over 20 years,
hotels have used our reports to accurately track and manage performance against competitors according to the real
conditions in the marketplace. Our reports will assist you in making better business decisions and improving your sales,
marketing and revenue management strategies. Participating with us -is easy, whether you own, manage or operate a small
independent property or a large portfolio of hotels. We offer a broad selection of services to suit your benchmarking needs.
suppliers & investors
your source for timely, accurate and reliable industry data
If your company provides a product or service to the hotel industry, we have timely, accurate and reliable industry data
you can use for well-informed business strategies. We invite you to discover how our products will get you in touch with
the decision makers.
Developing or investing in hotels? We can provide you with invaluable information on existing hotels and future
development. Before you act, make sure you have the very best in business intelligence with our reports designed for
developers, investors, consultants, architects and suppliers.
destination organizations
the data you need to make your destination a success
Hundreds of chambers of commerce, convention & visitors bureaus, hotel associations and tourism offices have
discovered what every major hotel company already knew: no one covers the hotel industry like us. If you are involved in
the development and promotion of your destination, you can rely on our data to see where your market stands compared
to competitive destinations.
media & educational institutions
supporting the hotel industry of today and tomorrow
Members of the media and academia come to us for the most up-to-date information on the performance and growth of
the global hotel industry. We proudly support the future talents of the industry, assisting students and professors with
research projects.
RRC
ASSOCIATESSU
An STR Company
Development Research
RRC Associates has frequently designed and carried out research programs for public- and private -sector
clients involved in analyzing residential and commercial development opportunities and marketing programs.
These projects have typically been in situations where the client had identified a number of general questions in
need of answers that would affect the development program or process.
RRC assists in the refinement and formulation of questions into a research program designed to provide specific
results and direction. Because of extensive research activities in a variety of settings, RRC is also able to
provide comparable data to clients concerning individual and household behavior, public processing issues,
and a variety of design considerations.
Our methods are always action -oriented. We ensure that the data are appropriate to the range of issues that have been identified. In addition,
our early discussions frequently result in broadening the range of topics; past experience allows us to anticipate the client's needs in ways
that go beyond the obvious. Our methods assume that the client will be making decisions on the basis of the information collected.
At the conclusion of the data collection phase we emphasize the interpretation of data and the application of the results. Our reports typically
contain specific recommendations designed with the particular client in mind. In most cases they identify a set of actions that, taken together,
begin to form development strategies. But in other instances, we may play the "devil's advocate," presenting alternative ideas or suggestions
for discussion within the client's own management team.
Following are some examples of research efforts in this area:
W=Enprsat, COM=Bde= T
Frasier Meadows -Design and Feasibility Analyses PBoulder,-CO� -
_ _Boulder�=Uffia Renewal°Authority Economlc_Overvlew-Boulijer=..CO —
A(rowh--- At VaiI� YgiI EGO
--� —castle :Pines Village " Gastle Rock CO
Meadows at castK—Rock-CastIFRock
--- South.Lake Tahoe=Retail Market'Analy"sis and,Business=Development�Strategy South L"ake Tahoe CA
T'Downtown:Boulder=andaUniversity H111=De"velopment_Projectlons and Land Use Analyses -Boulder,
-- -- - = Snowmass_Strategic:Plan gnowmas niIIrg ::CO x — --
Housing Needs=Assessments=Evaluations ofYhousingneeds in;resort communitres basedewn surveys and
strategic evaluations, Numerous_xstudies_have"been conductetl.in towes,_cities_and�eounties iriclutling_ Fagle,,.�;
�Routt,�hlo Blaaco,.Sumnit Grand; Garfield;=Pdkins_Gunnlsor;_San_Miguel, Teller Boulder,_Adams, and Jefferson
�C-.ountes; Estes�Park and=Loveland, Colorado=Santa Fe_County, New°Mexlco;�Central Oregon; Grass -Valley and
=-Mammoth Lakes "California Lee an P Beach -Counties FIorlda,°and the -Sun Valley/Ketchum area In Idaho
4940 Pearl East Circle i Boulder, Colorado 80301 1 303.449.6558 1 www.rrcassoc.com
RRC
ASSOCIATES-,
An STR Company
Real Estate Market Feasibility Assessments
RRC Associates has an extensive background with real estate feasibility studies and research.
Such analyses might include price per square foot of existing sales, days on the market,
building permit activity, other proposed residential developments, competitive analysis, likely
buyer profiles and demographics, and retail/commercial analysis. Based on the patterns and
findings from our research, we typically make observations and provide guidance regarding
development assumptions, including sales prices and absorption, unit types and sizes, phasing,
mixed use feasibility, and potential retail/commercial uses.
Typical projects in this field include:
• Prospect/Pre-Construction Research. Surveys of potential buyers to evaluate unit
sizes (square footage and number of bedrooms), amenities, interest in purchase,
potential use of the property (personal use, rental, business use), whole
ownership versus fractional, price range, timing of potential purchase, and other
purchase factors prior to construction.
• Buyer Research. An analysis of.feedback from buyers on a variety of issues,
including the sales process, importance of factors in the purchase decision, other
resort destinations considered for purchase, demographics, satisfaction with
specific unit features and resort amenities.
• Non -Buyer Research. Research of sales leads who did not purchase: reasons for
interest in the property, evaluation of the sales process, why the customer did not
buy, whether the customer bought elsewhere, and other factors.
• Broker and Developer Focus Groups/Interviews. In-depth conversations with key
players in the region regarding their opinions and perceptions of the development
and strategies to obtain better buy -in from this group. Valuable feedback in terms
of sales velocity, price points, amenities desired, and other key information is
collected from area brokers and developers in these interviews.
• Market Feasibility. Evaluation of market feasibility of proposed resort
developments taking into account indicators of demand and supply (sales
volumes, price trends, buyer profiles, comparable and competitor projects,
economic and demographic trends, local broker opinions, etc.).
Identification of potential customers and sales leads through ski resort customer
research, mining of assessor databases for second homeowners, and involvement
with and knowledge of other resort areas' second homeowner communities.
Some of our clients include:
• Atira Development Group (CO)
• Booth Creek Resorts—
,
Northstar (CA); Loon Mountain (NH)
• Cafritz Interests (DC)
• Cloudrock, Moab (LT)
• Commercial Concepts, Inc. (OR)
• Crested Butte Mountain Resort (CO)
• East West Resorts —Hyatt Main St. Station
Breckenridge
Grand Targhee Resort
Cloudrock Resort
• Grand Elk Ranch and Club (CO)
• Grand Targhee Resort (WY)
• Intrawest Destination Properties (CO)
• McStain Property Development (CO)
• South Lake Tahoe Retail Study (CA)
• Steamboat Grand Resort — Steamboat Springs (CO)
• Teton Springs Resort (WY)
• Vail Resorts Development Company — Lionshead
Projects; Breckenridge Base Area (CO)
11
4940 Pearl East Circle I Boulder, Colorado 80301 1 303.449.6558 1 www.rrcassoc.com
RRC STRATEGIC PLANNING
PLANNED UNIT DEVELOPMENTS
ASSOCIATES PUBLIC PROCESSING
An STR Company
COMMERCIAL AND RESIDENTIAL
Alexander Dawson School
Boulder, Colorado
Arrowhead at Vail
Vail, Colorado
Adolph Coors Co.
Golden, Colorado
Arrowhead at Vail
Edwards, Colorado
Berry Creek Ranch
Edwards, Colorado
Crested Butte Mountain Resort
Crested Butte, Colorado
Celestial Seasonings Inc.
Boulder, Colorado
Eagle Ridge
Steamboat Springs, Colorado
Eldora Ski Area
Nederland, Colorado
First Financial Center
Steamboat Springs, Colorado
Fruehauf Investments
Boulder, Colorado
Marriott Hotel Corporation
Washington, DC
The Myron Stratton Home
Colorado Springs, Colorado
River Valley Ranch/Hines Resorts
Carbondale, CO
Teton Springs
Teton County, Idaho
Thistle Community Housing _
Boulder, Colorado
W.W. Reynolds Company
Boulder, Colorado
REPRESENTATIVE CLIENTS
downtown communities, including those with major universities as in Fort Collins. The effective
use of this information will be an invaluable resource to the consultant team and to the DDA in
the performance of the work as defined in the proposal.
Hospitium
Hospitium is a hotel consulting firm that specializes in the upscale and luxury sectors of the
lodging industry in North America. Many of these properties incorporate special meeting and
conference facilities. From the early stages of development or deal negotiation through asset
disposition, Hospitium delivers timely and useful research, analysis, and insight that assist the
various needs of owners, developers, management companies, and financial institutions.
Hospitium provides a wide array of advisory services and products, including feasibility studies,
market analyses, due diligence, underwriting, strategic planning, development consulting, deal
sourcing; and transaction guidance.
Stephen Hennis, CHA, is the Managing Director of Hospitium and has over fifteen years of
experience in the analysis of lodging investments. Steve has appraised and evaluated over 500
lodging facilities, and has been involved in the underwriting, negotiation, and acquisition of
over $400 million in luxury hotels and resorts.
Prior to becoming Managing Director of Hospitium, Steve served as Vice President of Hospitality
Investments for Lowe Enterprises and Destination Hotels & Resorts where he worked on
acquisitions, dispositions, and development projects. Steve managed transactions through the
underwriting, negotiation, due diligence, and transition process. Steve previously served as Vice
President and Director of Research for HVS International where he specialized in the analysis
and valuation of large portfolios for cross -collateralized securitizations and oversaw the
redevelopment of HVS' analytical models and report templates. Steve also held positions at
Marriott International, Caesars World, and the award -winning Castle Marne bed and breakfast.
Steve is a graduate of the University of Denver's.School of Hotel, Restaurant & Tourism
Management. He holds the Certified Hotel Administrator designation from the American Hotel
& Lodging Educational Institute. Steve is a member of the Appraisal Institute, Johnson Capital's
Global Hospitality Industry Advisory Board, and the Urban Land Institute. He is also a frequent
lecturer at the University of Denver's School of Hotel, Restaurant & Tourism Management, and
a panelist at the International Hospitality Investment Conference, the Americas Lodging
Investment Summit, and the Lodging Industry Investment Council.
RRC Associates, Inc. 3
RRC
ASSOCIATES
An STIR Company
REAL ESTATE DEVELOPERS
Alpine Mountain Ranch
Arrowhead at Vail
Atira Development Group
Bachelor Gulch
Berry Creek Ranch
The Broadmoor
Cafritz Interests
Castle Rock Development
Centex Destination Properties
Cloudrock
Commercial Concepts, Inc./Pringle Square
CNL Resort Properties
Crested Butte Mountain Resort
Desert Highlands Association
East West Partners
Frisco River Pines
Grand Targhee Resort
Hines Resorts
Aspen Highlands Village, The Village at Winter Palk,
Rlfe! ValleyRanch, Glacief Village, Montana
Intrawest Corporation
Lake Catamount
Mackenzie House Inc.
McStain Enterprises
Mt. Bachelor
Premier Resorts
Slifer Smith & Frampton Real Estate
Teton Springs
Vail Resorts Inc.
W.W. Reynolds Company
Whistler/Blackcomb
Wonderland Custom Builders
I
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11
REPRESENTATIVE CLIENTS
MARKET RESEARCH
FEASIBILITY ANALYSIS
IMPACT ASSESSMENTS
Steamboat Springs, Colorado
Edwards, Colorado
Eagle, Colorado
Beaver Creek, Colorado
Edwards, Colorado
Colorado Springs, Colorado
Steamboat Springs/Washington, DC
Denver/Castle Rock, Colorado
Scottsdale, Arizona
Moab, Utah
Salem, Oregon
Orlando, Florida
Crested Butte, Colorado
Desert Highlands, Arizona
Vail/Denver, Colorado
Frisco, Colorado
Alta, Wyoming
Aspen, Colorado
Vancouver, British Columbia
Steamboat Springs, Colorado
Denver, Colorado
Boulder, Colorado
Bend, Oregon
Sun Valley, Idaho/Steamboat Springs, Colorado
Vail, Colorado
Victor, Idaho
Vail, Colorado
Boulder, Colorado
Whistler, British Columbia
Boulder, Colorado
Hospitium
Steve Hennis
OOSPITIUM
RRC Associates, Inc. Appendix
STEPHEN R. HENN/S, CHA
EMPLOYMENT
Hospitium Arvada, Colorado
2006-Present Managing Director
Destination Hotels & Resorts Englewood, Colorado
2000-2006 Vice President, Hospitality Investments
HVS International Boulder, Colorado
1994-2000 Vice President, Director of Research
Marriott International Denver, Colorado
1993-1994 Sales & Marketing
Castle Marne Denver, Colorado
1992-1993 Innkeeper
Caesars Tahoe Lake Tahoe, Nevada
1991 Accounting/Sales & Marketing
EDUCATION
University of Denver Bachelor of Science in Business Administration
Daniels College of Business Hotel, Restaurant, & Tourism Management
Appraisal Institute National Uniform Systems of Professional Appraisal Practice
National USPAP Update
Business Practices and Ethics
Basic Appraisal Principles
Basic Appraisal Procedures
General Appraiser Site Valuation & Cost Approach
General Appraiser Income Approach, Part 1
General Appraiser Income Approach, Part 2
General Appraiser Sales Comparison Approach
■ Real Estate Finance, Statistics, and Valuation Modeling
■ General Appraiser Report Writing & Case Studies
Servicing & Inspecting the Construction Loan
Small Hotel/Motel Valuation
{ Stephen R. Hennis
CLIENTS SERVED
Accor
AEW Capital Management
Ashford Financial Corporation
Bank Midwest
Banc One
Bankers Trust
BCTC
Bear Stearns
Berkeley Federal Bank & Trust
Blackstone Group
Boykin Lodging Company
Brown Development
CNL Hospitality Properties
CSM
Capital Company of America
Capitol Hotel Group
Carousel Entertainment
Carpenter & Company
Choice Hotels International
CitiCorp
Citizens National Bank of
Evansville
Columbia Sussex Corporation
Condor Hotel Development
Cornerstone Companies
Credit Suisse First Boston
Darden Development Group
Destination Hotels & Resorts
Doubletree Hotel Company
Driftwood Ventures
First Chicago
First Federal Lincoln Bank
First National Bank of
Santa Fe
First Security Commercial
Mortgage
General American Life
Insurance
GMAC Commercial Mortgage
Goldman Sachs
HMB Partners
HEI Hotels
Hines Interests
HMG Lodging Management
Hodges Ward Elliott
Horizon Hospitality Group
Hospitality Associates
Hospitality Properties Trust
Host Marriott
Hudson Group
HVS International
Inn -Vestments
ITT Sheraton
ITLA Funding
KSL Capital Partners
Lehman Brothers
Lodgian
L.C. Fulenwider
Lowe Hospitality Group
Magnolia Hotels
Manor Care, Inc.
Marriott International
Maurice Robinson &
Associates
MeriStar Hotels & Resorts
Mitchell, Axton & McCarty
NBD Bank
National Bank of Arizona
Nomura Asset Capital
Corporation
Omni Hotels
Paine Webber
Patriot American Hospitality
Piper Jaffray & Co.
Promus Hotel Company
Pueblo Department of Urban
Renewal
Remington Hotel Corporation
RockBridge Capital
Sage Hospitality Resources
Salomon Brothers
SCS Advisors
Servico Hotels & Resorts
Shaner Hotel Group
Snyder Nationwide
Real Estate
Sonnenblick Goldman
Starwood Lodging Trust
Stonebridge Companies
Strategic Hotel Capital
Studio Ventures
Suburban Capital Markets
Sunway Hotel Group
Sunworld Properties
Tharaldson Enterprises
Trinity Hotel Investors
TransAtlantic Capital
Company
Village Resorts
Wachovia
Wall Street West
The Weglarz Group
Wells Fargo Bank
Westin Hotels & Resorts
Westmont Hospitality
Wheat Ridge 2020
White Lodging Services
Woodbine Development
Stephen R. Hennis I
I
I
■
I
PROJECTS
PORTFOLIOS
■ • $2.4 billion acquisition of CNL Hotels & Resorts properties by Ashford Hospitality Trust
• $777.5 million disposition of Renaissance properties by Walton Street Capital and
Rockpoint
• $144 million acquisition of Sunstone Hotel Investors properties by Trinity Hotel Investors
• $405 million acquisition of CNL Hotels & Resorts properties by Whitehall Street
• $1.27 billion acquisition of Equity Inns by Goldman Sachs
• $1.7 billion acquisition of White Lodging Services properties by RLJ Development
• $1 billion financing of Tharaldson Hotels by Goldman Sachs
• $530 million merger of American General Hospitality and CapStar Hotel Company to form
MeriStar Hotels & Resorts and MeriStar Hospitality
• $1.4 billion financing of Patriot American Hospitality's acquisition of Wyndham
International
• $271 million acquisition of Red Lion properties by Boykin Lodging Company
• $106 million public stock offering for Boykin Lodging Company by Lehman Brothers
• $149 million acquisition of Marriott properties by Hospitality Properties Trust
• $130 million refinancing of Choice Hotels International properties by Lehman Brothers
• $1 .2 billion merger of Impac Hotel Group and Servico Hotels & Resorts to form Lodgian
• $180 million refinancing of Columbia Sussex Hotels by Nomura Securities
• $135 million acquisition of Wyndham Garden properties by Hospitality Properties Trust
0 $134 million acquisition of Hotels of Distinction by Starwood Lodging Trust
• $172 million acquisition of Residence Inn properties by Hospitality Properties Trust
• $177 million acquisition of Courtyard properties by Hospitality Properties Trust
• $1 12 million refinancing of Shaner Hotel Group properties by Nomura Securities
• $64 million refinancing of Servico hotels by Lehman Brother
• $149 million acquisition of Equitable Life Assurance Society properties by Host Marriott
{ Stephen R. Hennis
PROPERTIES
UNITED STATES
Arizona
Arizona Biltmore Resort & Spa
Boulders Resort & Spa
Proposed Clarion Suites Scottsdale
Comfort Inn Phoenix Turf Paradise
Courtyard Phoenix Airport
Courtyard Scottsdale Old Town
Econo Lodge Flagstaff West
Econo Lodge Tolleson
Embassy Suites Paradise Valley
Proposed Hampton Inn Phoenix Midtown
Proposed Hilton Garden Inn Scottsdale
Holiday Inn Phoenix Airport East
Howard Johnson Flagstaff
Hyatt Regency Phoenix
L'Auberge de Sedona
Proposed Magnolia Camelback
Proposed Marriott Phoenix Airport
Arkansas
Fairfield Inn Fayetteville
California
Argent Hotel
Proposed Bel Jardin Hotel
Proposed Berkeley Charles
Biltmore Los Angeles
Carmel Valley Ranch
Century Plaza Westin
Clift Hotel
Courtyard Anaheim at Disneyland
Doubletree Modesto
Doubletree Sacramento
Estancia La Jolla Hotel & Spa
Proposed Fairfield Inn Temecula
Givenchy Resort & Spa
Pointe Hilton Tapatio Cliffs
Pointe South Mountain Resort
Proposed Residence Inn Mesa
Residence Inn Phoenix Airport
Rodeway Inn Tempe
Royal Palms Resort & Spa
Proposed Sedona Creekside
Proposed Sedona Rouge
Sheraton El Conquistador
Sleep Inn Mesa
Sunspree Resort
Tempe Mission Palms
Westin Kierland Resort & Golf Club
Wyndham Garden Phoenix Airport
Wyndham Garden Phoenix North
Wyndham Garden Chandler
Sleep Inn Fayetteville
Hilton Los Angeles/Glendale
Hyatt Regency Los Angeles
Hyatt St. Claire
Hyatt Vineyard Creek
Hotel del Coronado
L'Auberge Del Mar Resort & Spa
La Quinta Inn Santa Ana
La Quinta Inn & Suites Anaheim
La Quinta Inn & Suites LAX
La Quinta Resort
Lodge at Sonoma Renaissance
Loews Beverly Hills
Marriott Warner Center
Stephen R. Hennis i__!
I
I
Mark Hopkins InterContinental
Miramonte Resort & Spa
Proposed Monterey Peninsula
Proposed Mountain View Conference Center
Renaissance Esmeralda Resort & Spa
Renaissance Los Angeles Airport
Resort at Squaw Creek
'
Ritz -Carlton Huntington Hotel & Spa
Colorado
Antlers Adam's Mark
Proposed Auraria Campus Hotel
Cliff House
Comfort Suites Colorado Springs
Cornerstone Condominiums
Courtyard Boulder/Louisville
Proposed Courtyard Inverness
Proposed Denver Athletic Club Hotel
Proposed Denver International Business
Center Hotel
Doubletree Colorado Springs
Doubletree Denver
Embassy Suites Denver Airport
Embassy Suites Denver Place
Fairfield Inn Greeley
Fairfield Inn Colorado Springs
Garden of the Gods Club
Hampton Inn Denver Southwest
Grand Hyatt Denver
Proposed Hampton Inn Boulder/Louisville
Holiday Inn Denver Downtown
Holiday Inn Express Greeley
Holiday Inn Select Cherry Creek
Connecticut
Prudential Center for Learning & Innovation
De/aware
Super 8 New Castle
Proposed Riverbend Resort & Spa
Rodeway Inn Mammoth Lakes
Proposed Saggio Hills
St. Regis Los Angeles
Tenaya Lodge at Yosemite
Proposed Terranea Resort
U.S. Grant Hotel
Proposed Homewood Suites Glendale
Hotel Teatro
Inverness Resort & Golf Club
Lodge at Breckenridge
Lodge at Cordillera
Marriott Boulder
Marriott Denver City Center
Marriott Denver Tech Center
Marriott Pueblo
Mountain Lodge at Telluride
Red Lion Denver
Proposed Residence Inn Glendale
Proposed Residence Inn Inverness
Ritz -Carlton Denver
Proposed Sheraton Denver Downtown
Sheraton Denver Tech Center
Proposed Sheraton Gateway DIA
Sleep Inn Colorado Springs
Proposed St. Julien Hotel
Proposed Westin Westminster
Vail Cascade Resort & Spa
Proposed Wyndham Garden Denver Tech
Center
Sheraton Hartford
Stephen R. Hennis
r
District of Columbia
Churchill Hotel
Embassy Suites Chevy Chase
Jefferson Hotel
Hotel George
Hotel Washington
Madison
Mandarin Oriental Washington DC
Florida
Avalon Majestic
Best Western Kissimmee Eastgate
Cheeca Lodge Resort & Spa
Don CeSar Resort & Spa
Delta Orlando
Eden Roc Resort & Spa
Hampton Inn Fort Lauderdale Cypress Creek
Hampton Inn Jacksonville Central
Hampton Inn Pensacola
Hilton Melbourne Beach
Holiday Inn Pensacola University Mall
Inverrary Plaza
Little Palm Island Resort & Spa
Lodge at Ocean Hammock
Mayfair House
Omni Colonnade
Georgia
Proposed Buckhead Village Hotel
Carnegie Building
Comfort Suites Gwinnett Place
Day Inn Atlanta Midtown
Hampton Inn Newnan
Monarch Washington
Renaissance Mayflower
St. Regis Washington
Washington Terrace
Watergate Hotel
Westin Embassy Row
PGA National Resort & Spa
Palm Coast Resort
Radisson Orlando Airport
Radisson Inn Lake Buena Vista
Ritz -Carlton Palm Beach
Ritz Plaza .
Sagamore
Sanibel Harbor Resort & Spa
Savoy
South Seas
Residence Inn Jacksonville Butler Boulevard
Residence Inn West Palm Beach
Renaissance Vinoy Resort & Golf Club
Royal Palm Crowne Plaza
Turnberry Isle Resort & Club
Wyndham Grand Bay
Hampton Inn Peachtree City
Holiday Inn Express Gwinnett Mall
Renaissance Waverly
Underground Atlanta Hotel
Stephen R. Hennis L1
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IHawaii
Coco Palms Resort
Courtyard Kauai
Destination Resorts Hawaii
Grand Wailea Resort & Spa
Idaho
Doubletree Boise Riverside
■ Illinois
rComfort
Inn Champaign
Comfort Inn Danville
Comfort Inn Forsyth
Comfort Inn Galesburg
Comfort Inn Gurnee
Comfort Inn Joliet North
Comfort Inn Joliet South
Comfort Inn Moline
Comfort Inn Morris
Comfort Inn Rockford
Comfort Inn Springfield
Comfort Suites Bloomington
Comfort Suites Peoria
Courtyard & T.G.I. Friday's Bedford Park
Courtyard Bloomington
Courtyard Champaign
Courtyard Peoria
Courtyard Springfield
Crowne Plaza Springfield
Doubletree Guest Suites Glenview
Drake Hotel
Embassy Suites Chicago Downtown
Fairfield Inn Bedford Park
Fairfield Inn Champaign
Fairfield Inn Danville
Fairfield Inn Fairview Heights
Fairfield Inn Forsyth
Fairfield Inn Galesburg
Proposed Kapalawai Resort
Mauna Kea Beach Resort
Radisson Kauai Beach
Fairfield Inn Gurnee
Fairfield Inn Joliet North
Fairfield Inn Joliet South
Fairfield Inn Kankakee
Fairfield Inn Moline
Fairfield Inn Peru
Fairfield Inn Quincy
Fairfield Inn Springfield
Fairfield Inn Tinley Park
Hampton Inn Bedford Park
Hampton Inn Fairview Heights
Hampton Inn Forsyth
Hampton Inn Tinley Park
Proposed Holiday Inn Express Bedford Park
Holiday Inn Express Springfield
Omni Orrington
Renaissance Chicago Downtown
Residence Inn Deerfield
Residence Inn Peoria
Residence Inn Rockford
Rosemont Suites
Sleep Inn Bedford Park
Sleep Inn Springfield
Proposed St. Claire Hotel
Super 8 Danville
Telcordia
Ten West
j Stephen R. Hennis
Indiana
Canterbury Hotel
Comfort Inn Anderson
Comfort Inn Evansville
Comfort Inn Indianapolis
Comfort Inn Kokomo
Comfort Inn Richmond
Comfort Inn Terre Haute
Proposed Candlewood Suites Indianapolis
Courtyard Fort Wayne
Courtyard Goshen
Carlton Lodge Valparaiso
Courtyard Merrillville
Courtyard Mishawaka
Courtyard Valparaiso
Doubletree Guest Suites Indianapolis
Fairfield Inn Indianapolis Airport
Fairfield Inn Kokomo
Iowa
Comfort Inn Cedar Rapids
Comfort Inn Cedar Rapids North
Comfort Inn Des Moines
Comfort Inn Dubuque
Comfort Inn Waterloo
Country Inn & Suites Davenport
Days Inn Cedar Rapids
Fairfield Inn Coralville
Kansas
Comfort Inn Topeka
Comfort Inn Wichita
Days Inn Topeka
Kentucky
Brown
Fairfield Inn Ashland
Fairfield Inn Lexington
Fairfield Inn Lafayette
Fairfield Inn Merrillville
Fairfield Inn& Suites Valparaiso
French Lick Springs
Proposed Hampton Inn Merrillville
Hampton Inn Mishawaka
Hampton Inn & Suites Ft. Wayne
Proposed Holiday Inn Express Merrillville
Howard Johnson Indianapolis
Marriott Evansville
New England Suites Indianapolis
North Meridian Inn Indianapolis
Ramada Inn Indianapolis Airport
Residence Inn Fishers
Proposed Residence Inn Merrillville
Residence Inn South Bend
Super 8 Evansville
Fairfield Inn Council Bluffs
Fairfield Inn Davenport
Fairfield Inn Dubuque
Fairfield Inn Muscatine
Fairfield Inn Sioux City
Fairfield Inn Waterloo
Residence Inn Davenport
Super 8 Waterloo
Fairfield Inn Topeka
Hampton Inn Wichita
Residence Inn Topeka
Proposed Hampton Inn Horse Cave
Hampton Inn Lexington
Super 8 Owensboro
Stephen R. Hennis Lj
Swerdling and Associates
Swerdling & Associates ("S&A") is an independent financial consulting firm based in Denver,
Colorado. The company has been providing financial services to clients for over 25 years and
has extensive experience in structuring, negotiating and underwriting public -private
partnerships. S&A specializes in assisting state agencies, local governments, and real estate
developers determine the best possible financing strategy for their project needs. Their areas
of expertise are in Hotels, Convention Centers/Conference Centers, and Entertainment/Urban
Development Districts.
The firm is experienced in every phase of the development process. S&A works closely with
their clients to negotiate agreements favorable to their interests while satisfying the capital and
credit markets. Their knowledge of available sources of funding, experience in obtaining access
to those sources of funding, and ability to manage the appropriate uses of funding saves their
client's a considerable amount of time and expense.
S&A's efforts are driven by their client's financing requirements. In meeting these
requirements they are fully capable of suggesting and evaluating financing solutions under the
best possible terms. As a totally independent financial consulting firm, S&A fully represents
their client's interest in a financial transaction.
Tax -Exempt Financing
S&A is an expert in tax-exempt financings. They have extensive experience in advising state and
local governments, authorities/districts and other issuers on the sale of tax-exempt bonds.
They understand the key factors that impact municipalities during the development process.
They work with clients to ensure that all contracts with developers, construction firms,
operators, property managers and investors in a tax-exempt financing are carefully designed to
comply with the federal tax law. We have experience in all of these matters and will work with
local counsel to identify potential concerns while providing a detailed explanation of actions
that can be taken to mitigate such issues.
Conventional Financing
S&A also severs as a capital advisory firm specializing in debt financing, mezzanine financing,
and equity. With expertise across the capital stack,.S&A can help develop and execute financial
structures that enhance value. S&A associates can manage all key financial relationships to
facilitate successful development.
RRC Associates, Inc. 4
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■
Louisiana
tLe Pavillon Westin New Orleans Canal Place
Proposed Sleep Inn New Orleans
Mary/and
Courtyard New Carrollton
Marriott's Hunt Valley Inn
Courtyard Rockville
Super 8 Aberdeen
Inn at UMUC
Super 8 Baltimore/Essex
Harbor Court
Super 8 Havre de Grace
Massachusetts
Proposed Ames Hotel
Tremont House Wyndham
Nine Zero
Michigan
Courtyard Benton Harbor
Hilton Northfield/Troy
Fairfield Inn Jackson
Holiday Inn Select Grand Rapids
Fairfield Inn Holland
New England Suites Grand Rapids
Hampton Inn Battle Creek
Residence Inn Kalamazoo
Hampton Inn Kalamazoo
Sleep Inn Charlevoix
Holiday Inn Dearborn
Townsend Hotel
Hilton Grand Rapids
Minnesota
Comfort Inn Brooklyn Center
Fairfield Inn Eden Prairie
Comfort Inn Mankato
Fairfield Inn St. Cloud
Country Inn & Suites Owatonna
Hampton Inn Woodbury
Country Inn & Suites Rochester
Heritage Inn Mendota Heights
Fairfield Inn Bloomington
Holiday Inn Minneapolis West
Fairfield Inn Coon Rapids
Northland Inn
Fairfield Inn Duluth
Missouri
I
Comfort Inn Lee's Summit Fairfield Inn Lee's Summit
Proposed Kansas City Convention Center Four Points St. Louis
Hotel Holiday Inn St. Louis Airport
Courtyard St. Louis Proposed Magnolia Kansas City
Stephen R. Hennis
Montana
Comfort Inn Billings
Comfort Inn Great Falls
Comfort Inn Helena
Nebraska
Cornhusker Hotel
Comfort Suites Lincoln
Doubletree Omaha
Nevada
AmeriSuites Las Vegas Paradise Road
Comfort Inn Las Vegas North
New Jersey
Courtyard Basking Ridge
Courtyard Edison Raritan Center
Hilton Parsippany
Marriott Bridgewater
Marriott Seaview Resort
New Mexico
Best Western High Mesa Inn
Bishop's Lodge
Comfort Inn Santa Fe
Eldorado Hotel
New York
E
Fairfield Inn Bozeman
Fairfield Inn Billings
Fairfield Inn Great Falls
Fairfield Inn Lincoln
Hampton Inn Lincoln
Sheraton Omaha
Residence Inn Las Vegas Hughes Center
Merrill Lynch Conference & Training Center
Radisson Newark Airport
Sheraton Meadowlands
Westin Morristown
La Fonda Hotel on the Plaza
La Posada de Santa Fe
Proposed Monte Sereno Resort
Radisson Picacho Plaza
Algonquin Hotel Hotel Pennsylvania
Barbizon Hotel Marriott Buffalo/Niagara
Dylan Marriott Melville
Empire New York Proposed Metro One Hotel
Gorham New York Park South
Proposed Hotel Gansevoort Ringa Royal
InterContinental Central Park Sheraton Russell
Paramount
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North Carolina
Proposed Candlewood Raleigh
Fairfield Inn Raleigh
Comfort Inn Greensboro
Hilton Charlotte City Center
Courtyard Charlotte Arrowood
Holiday Inn Fayetteville
Courtyard Raleigh
Holiday Inn Raleigh Crabtree
Days Inn Crabtree Valley
Quality Inn & Suites Charlotte
■
Days Inn Raleigh RTP
Quality Suites Raleigh
Fairfield Inn Charlotte Airport
Park Hotel
Fairfield Inn Charlotte Northeast
SouthPark Suites
North Dakota
Comfort Inn Fargo
Fairfield Inn Bismarck North
Comfort Inn Fargo West
Fairfield Inn Bismarck South
Comfort Inn Grand Forks
Fairfield Inn Fargo
Comfort Inn Jamestown
Fairfield Inn Grand Forks
Comfort Suites Fargo
Fairfield Inn Minot
Ohio
Proposed Candlewood Suites Dublin
Fairfield Inn Springfield
Comfort Inn Dayton
Fairfield Inn Youngstown
Comfort Inn Marietta
Fairfield Inn Zanesville
Comfort Inn Marion
Hampton Inn Akron
Comfort Suites Columbus
Hampton Inn Fairborn
Country Inn & Suites Toledo
Hampton Inn Findlay
�.
Courtyard Akron
Hampton Inn Ontario
Courtyard Columbus Crosswoods
Hampton Inn Youngstown
Courtyard Dublin
Holiday Inn Express Middletown
Fairfield Inn Canton
Homewood Suites Columbus
Fairfield Inn Fairborn
New England Suites Dublin
Fairfield Inn Findlay
Residence Inn Akron
Fairfield Inn Lima
Residence Inn Canton
Fairfield Inn Marion
Residence Inn Youngstown
Fairfield Inn Middletown
Tharaldson Inn & Suites Toledo
Fairfield Inn Ontario .
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i Stephen R. Hennis
Oklahoma
Fairfield Inn Norman
Fairfield Inn Stillwater
Fairfield Inn Tulsa
Hampton Inn Oklahoma City
Oregon
Proposed Comfort Suites Lincoln City
Proposed Comfort Suites Troutdale
Doubletree Portland Downtown
Pennsylvania
Hawthorn Suites Philadelphia
Hilton Scranton
Holiday Inn Monroeville
South Carolina
Best Western Oceanwalk Suites Hilton Head
Island
Proposed Candlewood Suites Columbia
Comfort Inn Columbia
Comfort Inn North Charleston
Comfort Inn & Suites Hilton Head Island
Crowne Plaza Hilton Head
South Dakota
Comfort Inn Sioux Falls
Comfort Suites Sioux Falls
Tennessee
AmeriSuites Memphis/Cordova
AmeriSuites Nashville/Cool Springs
Hampton Inn Franklin/Cool Springs
Hampton Inn Memphis Poplar
EArJ
Holiday Inn Express Oklahoma City
Holiday Inn Express Tulsa
Ramada Tulsa
Doubletree Portland Lloyd Center
Doubletree Springfield
Sunriver Resort
Hyatt Regency Penn's Landing
Proposed Grand Bay Philadelphia
Radisson Philadelphia Airport
Fairfield Inn Hilton Head Island
Four Points Hilton Head Island
Hilton Oceanfront Hilton Head
Player's Club Hilton Head Island
Quality Inn Anderson
Wild Dunes Resort -
Fairfield Inn Sioux Falls
Residence Inn Sioux Falls
Hampton Inn Nashville Elmwood Pike
Homewood Suites Germantown
Toeneke Building
Stephen R. Hennis �i
I
ITexas
■ Best Western Houston Westchase
Comfort Suites Lewisville
Comfort Suites Longview
Country Inn & Suites Lewisville
Courtyard Austin North
Courtyard Austin Northwest
Courtyard Austin South
Courtyard Lubbock
Driskill Hotel
Proposed Embassy Suites Austin Northwest
Fairfield Inn Abilene
Fairfield Inn Amarillo
Fairfield Inn Austin North
Fairfield Inn Austin South
Fairfield Inn Bryan
Fairfield Inn Corpus Christi
f
Fairfield Inn Ft. Worth
Fairfield Inn Longview
Fairfield Inn Lubbock
Fairfield Inn Midland
Fairfield Inn Temple
Fairfield Inn Tyler
Fairfield Inn Victoria
Fairfield Inn Waco
Fairfield Inn Wichita Falls
Hampton Inn Abilene
Hampton Inn Corpus Christi
Hampton Inn Ft. Worth
Hampton Inn Lubbock
Utah
Best Western Ogden Park Hotel
Proposed Comfort Suites Salt Lake City
Airport
—
Crystal Inn Brigham City
a
Hampton Inn San Angelo
Hampton Inn Temple
Hawthorn Suites Austin Northwest
Hawthorn Suites Austin Central
Hawthorn Suites Austin South
Hawthorn Suites San Antonio
Holiday Inn San Antonio Northeast
Holiday Inn Austin Northwest Plaza
Holiday Inn Austin South
Holiday Inn New Braunfels
Hotel Icon
La Mansion del Rio
Proposed Mandarin Oriental Dallas
Omni Richardson
Richardson Hotel
Sheraton Gunter
Sofitel Houston
Proposed Spillar Ranch
Stephen F. Austin Hotel
Renaissance Austin
Residence Inn Amarillo
Residence Inn Austin Northwest
Residence Inn Corpus Christi
Residence Inn Lewisville
Proposed Residence Inn Austin/Round Rock
Proposed Westin Austin
Watermark Hotel & Spa
Wyndham Greenspoint
Crystal Inn Salt Lake City
Hilton Salt Lake City
Provo Park Hotel
! Stephen R. Hennis
I
Virginia
Courtyard Fairfax
Courtyard Herndon/Reston
Doubletree Crystal City
Econo Lodge Staunton
Hampton Inn Norcross
Hilton Alexandria Mark Center
Holiday Inn Select Alexandria Old Town
Washington
Comfort Inn Sea-Tac
Comfort Inn & Suites Sea-Tac
Courtyard Seattle North/Lynnwood
Doubletree Bellevue
Doubletree Spokane
Doubletree Yakima
Wisconsin
Comfort Inn Green Bay
Comfort Inn Manitowoc
Comfort Inn La Crosse
Fairfield Inn Appleton
Fairfield Inn Hudson
Fairfield Inn Oshkosh
Wyoming
Comfort Inn Casper
Lansdowne Resort
Marriott Crystal Gateway
Marriott Williamsburg
Quality Suites Arlington
Spring Hill Suites Richmond Virginia Center
Super 8 Staunton
Union Mission Building
Hawthorn Suites Kent
Holiday Inn Renton
Sheraton Tacoma
Skamania Lodge
Suncadia Resort
Fairfield Inn Racine
Fairfield Inn Stevens Point
Residence Inn Appleton
Residence Inn Madison
Super 8 Racine
Teton Mountain Lodge
Stephen R. Hennis i
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CANADA
Ontario
Proposed Grand Bay Toronto
MEXICO
Hyatt Cancun
BRITISH WEST INDIES
Cayman Islands
Radisson Grand Cayman
UNITED KINGDOM
England
Cliveden
Westin Casuarina Resort
Stephen R. Hennis
AUTHOR: ARTICLES
The Lodging Ledger,
"Somber Investment Mood in 1st Quarter," Spring 2009.
The Lodging Ledger,
"Where'd My Value Go?" Spring 2009.
The Lodging Ledger,
"Manhattan Select -Service Hotels Continue to Lure Investors," Spring 2009.
The Lodging Ledger,
"Residential Meltdown & Bank Failures Impact Luxury Development," Spring
2009.
The Lodging Ledger,
"2008 Operating Stats Foreboding," Spring 2009.
The Lodging Ledger,
"2009 Forecasts Revisited," Spring 2009.
The Lodging Ledger,
"Lodging Activity Fell Sharply in 2008," Winter 2009.
The Lodging Ledger,
"Strong Brands Maintain Value Better in Market Downturns," Winter 2009.
The Lodging Ledger,
"Transaction Pace Slow but Steady through 3`d Quarter," Autumn 2008.
The Lodging Ledger,
"We've Been Here Before (Haven't We?)," Autumn 2008.
The Lodging Ledger,
"On the Downward Slope," Summer 2008.
The Lodging Ledger,
"Lodging Development and Residential Risk," Summer 2008.
The Lodging Ledger,
"A Slowdown Cometh," Spring 2008.
The Lodging Ledger,
"2008 RevPAR Forecasts Show Caution," Spring 2008.
The Lodging Ledger,
"Deal Pace Swift despite Economic Slowdown", Winter 2007.
The Lodging Ledger,
"Intimate Luxury Resorts," Winter 2007.
The Lodging Ledger,
"Still Lots of Deals, but Worries Arise," Autumn 2007.
The Lodging Ledger,
"Trading Up for Hilton," Autumn 2007.
The Lodging Ledger,
"When Select Service Hotels Hit the City," Summer 2007.
The Lodging Ledger,
"The Battle for Upper -Upscale Domination," Summer 2007.
The Lodging Ledger,
"Deal Pace Remains Strong through the First Half of 2007," Summer 2007.
The Lodging Ledger,
"The Pending Megatrend That Will Change the Industry," Spring 2007.
The Lodging Ledger,
"High Net Worth Investors," Spring 2007.
The Lodging Ledger,
"Ho Hum... Another Quarter, Another $5 Billion in Deals," Spring 2007.
The Lodging Ledger,
"Skyrocketing Transaction Volume and Pricing," Winter 2007.
The Lodging Ledger,
"Investment Timing is Key," Winter 2007.
The Lodging Ledger,
"Post -Acquisition Capital: Another Big Chunk of Change," Winter 2007.
The Lodging Ledger,
"Deal Climate is Still Hot," Autumn 2006.
The Lodging Ledger,
"The Allure of Luxury Lodging Assets," Autumn 2006.
The Lodging Ledger,
"The Next Wave of Mega -Resorts," Autumn 2006.
The Lodging Ledger,
"Convention Center Hotel Epidemic," April 2006.
The Lodging Ledger,
"So Many Transactions, So Little Time," April 2006.
Hotel Valuation Journal, "Mid -Year Hotel Transaction Activity Update," September 2000.
Lodging, "Quantifying
Franchise Benefits," October 1997
Hospitality Valuation
Journal, "How Much is My Flag Worth?" June 1997.
CONTRIBUTING EDITOR
Hotel Investments Handbook, 1997.
Stephen R. Hennis
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RRC Associates, Inc.
Swerdling & Associates
Bob Swerdling
Eric Iravani
Swerdling & Associates
Appendix
Y
Coburn Development
Coburn Development has successfully developed, designed, built and operated a portfolio value
of over $200 million. The firm's continuous annual financial oversight and direct management
is in excess of $35 million with a project capacity of $15-20 million. Principled leadership is part
of Coburn's core, and the result is demonstrated in its successful project track record.
Coburn has a long and successful history of working with public entities. We have partnered
with municipalities and non -profits on work from long-term planning to current projects,
covering market rate, affordable and mixed -use developments. Penny Flats is an example of a
dual effort by Coburn and the City of Fort Collins. Coburn .won the RFP from the City of Fort
Collins to redevelop this site, and the public/private partnership has created a visionary solution
for this downtown mixed -use project, which has completed Phase I.
Coburn Development is well versed in public process and function. They work often and well
with public entities on both a corporate and personal level. The company has been retained by
a number of municipalities on issues from long-range urban planning to sustainability
requirements to affordable housing guidelines. There are members of Coburn who currently
serve on various civic groups, including the Crested Butte Town Council and City of Boulder
Planning Board, as well as members who have served in the past on boards such as the City of
Boulder Technical Review Group for Affordable Housing Funding Allocation and the City of
Boulder Downtown Design Advisory Board.
Coburn understands the public process and how to be effective when working in that arena.
Most importantly, Coburn is steadfast in its commitment to creating great places. Great places
will endure, captivate and contribute,through a larger timeframe than any individual or firm.
Creating great places is a.guiding principle at Coburn, and, a goal they hope will inspire others to
excel.
John A. Koval is the Director of Development for Coburn Development, responsible for the
initial economic determination of project evaluation and viability, and management of the
ongoing development process. He has over twenty years' experience in the real estate industry
with an emphasis on acquisitions, commercial brokerage, property management, development
and construction. John served on the Citizen's Technical Review Group for Affordable Housing
Funding Allocation and on the Capital Improvement Committee for Boulder Valley School
District, and is a past member of the Board of Directors for the Boulder Chamber of Commerce.
Currently, John is a Downtown Management Commissioner.
Dan Rotner is a senior architect and project manager for Coburn Development. Dan is
responsible for community planning and project management, as well as regulating
architectural definition and documentation quality control. He oversees individual projects and
specializes in urban infill development, site design, neighborhood planning, building systems
RRC Associates, Inc. 5
I
Swerdling & Associates
Statement of Qualification
Firm Overview
Swerdling & Associates ("S&A") is an independent financial consulting firm based in Denver,
Colorado. Our associates have been providing financial services to clients for over 25 years
and have extensive experience in structuring, negotiating and underwriting public -private
partnerships. S&A specializes in assisting state agencies, local governments, and real estate
developers determine the best possible financing strategy for their project needs.
Our firm is experienced in every phase of the development process. We work closely with our
clients to negotiate agreements favorable to their interests while satisfying the capital and
credit markets. Our knowledge of available sources of funding, experience in obtaining access
to those sources of funding, and ability to manage the appropriate uses of funding saves our
client's a considerable amount of time and expense.
Our efforts are driven by our client's financing requirements. In meeting these requirements
we are fully capable of suggesting and evaluating financing solutions under the best possible
terms. As a totally independent financial consulting firm, S&A represents only our client's
interest in a financial transaction.
Tax -Exempt Financing
S&A is an expert in tax-exempt financings. We have extensive experience in advising state
and local governments, authorities/districts and other issuers on the sale of tax-exempt
bonds. We understand the key factors that impact municipalities during the development
process. We work with our clients to ensure that all contracts with developers, construction
firms, operators, property managers and investors in a tax-exempt financing are carefully
designed to comply with the federal tax law. We have experience in all of these matters and
will work with local counsel to identify potential concerns while providing a detailed
explanation of actions that can be taken to mitigate such issues.
Conventional Financing
S&A also severs as a capital advisory firm specializing in debt financing, mezzanine financing,
and equity. With expertise across the capital stack, S&A can help develop and execute
financial structures that enhance value. Our associates can manage your financial
relationships so that you can spend more time with development.
Page 2
I
Firm Overview
Areas of Expertise:
• Hotels
• Convention Centers / Conference Centers
• Entertainment/Urban Development Districts
As part of our package of services, we:
Assess Financing and Legal Constraints
• Assist in establishing
financing objectives and legal
constraints for state and local
governments, and real estate
developers
• Assist bond counsel, city
attorney and city staff to
ensure the final legal structure
will be well received in the
Prepare Financing Plan
• Evaluate and present
financing alternatives
• Recommend bond structure
and security provisions
• Identify cash flow mechanics
for financing
Swerdling & Associates
Statement of Qualification
marketplace for tax-exempt
financings
• Assist in program
development
• Assist in evaluation of local
market conditions
• Review status of prior
development work to date
• Perform shock scenarios to
assist in the assessment of the
risk associated with the
financial obligations
Assist in Negotiation of Business, Credit and Other Deal Points
• Recommend asset manager,
• Coordinate and prepare
operations monitor, and/or
presentations to credit
construction monitor as
enhancers, rating agencies
appropriate
and bond insurers
• Provide consultation on
• Assist in the negotiation of the
management agreement, pre-
guaranteed maximum price
opening and technical service
contract and guaranteed
agreements, room block
completion contract
agreement, indenture, etc.
• Identify performance
standards for hotel operators
• Review title work or form of
lease
Page 3
K
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Swerdling & Associates
Statement of Qualification
Firm Overview
• Assist in the negotiation of the •
Negotiate with credit
Hotel Operating Agreement
enhancement providers and
and the operator's financial
rating agencies
contribution to the Hotel
Market Financing
• Recommend marketing plan
Complete due diligence
• Evaluate and arrange investor
Structure underwriting
tours and presentations
syndicate to price and sell
• Develop and review
bonds
appropriate disclosure
documentation
Coordinate Post Sale Activities
• Coordinate closing activities
• Recommend investment strategies for bond proceeds
• Assist in the monitoring of disbursements
• Assist in ongoing financial cash flow analysis after project opening, as
requested
• Assist with ongoing relations and communications
with rating agencies
and investors, as requested
Page 4
Swerdling & Associates
Statement of Qualification
Biographies
Robert D. Swerdling, Founder and Managing Director
Mr. Swerdling has 25 years of experience in public finance and has been providing services to
municipal clients for over 15 years. During Mr. Swerdling's career, he has successfully
financed over $4.0 billion for state and local governments. He has worked from all corners of
the public financing business; as a public finance client while working for the State of New
Mexico, as an Investment banker while heading Piper Jaffray's Municipal Project
Revenue/Hospitality Group, and as a Credit Analyst while serving as a Director of Municipal
Finance at Standard and Poor's.
Over the past 10 years, Mr. Swerdling's career has focused on public -private partnerships with
a specialization in hospitality financings. Mr. Swerdling served as managing director at Piper
Jaffray and was responsible for running their Municipal Project Revenue/Hospitality Group.
During his tenure at Piper Jaffray, Mr. Swerdling served as lead banker on transactions
including: the Omaha Convention Center Hotel Refunding (2007), Denver Convention Center
Hotel Refunding (2006), the Baltimore Convention Center Hotel (2006), the Austin Convention
Center Hotel (2001), the Denver Convention Center Hotel (2003), the Austin -Bergstrom
Airport Hotel (1999), and the Omaha Convention Center Hotel (2002).
Prior to his investment banking career, Mr. Swerdling was employed as a municipal analyst at
Standard and Poor's. After nearly eight years at Standard and Poor's, Mr. Swerdling held
positions of Director of Municipal Finance and Manager of the Municipal Short -Term Debt
Group.
After receiving a Master's Degree in Economics in 1983 from the University of Chicago, Mr.
Swerdling was an economic and policy analyst for the Department of Finance and
Administration for the State of New Mexico. Mr. Swerdling served as the liaison between the
Governor and Secretary of finance and the Wall Street Firms. Mr. Swerdling also taught
courses in micro and macroeconomic theory as an adjunct professor for the University of New
Mexico.
Eric Iravani, Senior Associate
Mr. Iravani is responsible for providing quantitative and qualitative transaction support. Mr.
Iravani is an active participant in all phases of the project development process including
assessing financing and legal constraints, preparing a financing plan, structuring bond
issuances, assisting in negotiations of deal points, and coordinating post sale activities.
Prior to joining Swerdling & Associates, Mr. Iravani was an Associate for Piper Jaffray's
Hospitality Group and an Analyst for Standard and Poor's Corporate Value Consulting
Group. Mr. Iravani received his Bachelor of Science degree in Business Administration with a
concentration Finance and Accounting from the University of Southern California.
Page 5
Case Studies
Swerdling & Associates
Statement of Qualification
As head of Piper Jaffray's Municipal
Project Revenue/Hospitality
Group, Mr. Swerdling
invested a significant amount of time and resources into the development of public -private
partnerships. He has been at the forefront of this evolving sector
and has been actively
involved with every facet of the project delivery process.
During Mr. Swerdling's tenure at Piper
Jaffray, 17 hotel transactions
were completed totaling
over $3.1 billion in related financings since 1999. The transactions for which Mr. Swerdling
served as lead senior banker are indicated
by a single asterisk and transactions for which he
served as co -lead senior banker are indicated by a double asterisk.
HotelPar An-iount
..
HOTELR•Count
Senior Manager
Denver Convention Center (Ref.)
* $356.20 Hyatt
2006 1,100
Denver Convention Center
* $354.80 Hyatt
2003 1,100
Baltimore Convention Center
* $300.90 Hilton
2006 756
Austin Convention Center
* $265.10 Hilton
2001 800
Austin Convention Center (Ref.)
* $260.20 Hilton
2006 800
Omaha Convention Center
* $109.00 Hilton
2002 450
Sacramento Convention Center
* $92.80 Sheraton
1999 500
Austin Airport Conference Center
* $42.50 Hilton
1999 265
Omaha Convention Center (Ref.)
** $109.80 Hilton
2007 450
Coralville Conference Center
** $86.90 Marriott
2005 286
Lombard Conference Center
$161.30 Westin
2005 500
Vancouver, WA Conf Center
$67.60 Hilton
2003 226
Erie Conference Center
$45.40 Sheraton
2005 203
Bay City, MI Conference Center
$15.50 Doubletree
2002 150
Co -Manager
San Antonio Convention Center
$208.1 Hyatt
2005 1,000
Houston Convention Center
$362.2 Hilton
2001 1,200
Phoenix Convention Center
$350.0 Sheraton
2005 1,000
TOTAL
$3,188.3
Page 6
Swerdling & Associates
Statement of Qualification
Case Studies
Denver Hyatt Convention Center Hotel
$356,155,000
Denver Convention Center Authority
Convention Center Hotel Senior Revenue
Refunding Bonds, Series 2006
$354,825,000
Denver Convention Center Authority
Convention Center Hotel Senior
Revenue Bonds, Series 2003A
In 2003, Mr. Swerdling served as lead underwriter for the Denver Convention Center
Authority's financing of the 1,100 room Downtown Hyatt Convention Center Hotel ("Hotel").
The goal of the City and County of Denver in financing the Hotel was to implement a high
grade financing structure. The structure included an annual subject to appropriation payment
("City Payment") that was projected to be less than the tax revenues collected by the City from
the Hotel's operations. The City Payment was structured in such a manner that it would not
have an impact on the City's general fund.
When the original bonds were sold, the hospitality industry was at the low point experienced
from 2001 through 2003 due to the economic recession and the impact of the events of
September 11, 2001. As a result, the market required significant reserve fund levels including
a $40.0 million "special" reserve fund which was funded annually from the City Payment, to
the extent it was not required to fund debt service shortfalls, over the first six years of
operations. The "special" reserve would be available to address uncertain market conditions
and protect against a City non -appropriation of its annual City Payment.
For the 2006 refunding, Mr. Swerdling led renegotiations with the rating agencies and the
bond insurer to restructure the original terms to provide substantial economic benefits to both
the City and the Authority including:
A reduction in the "special" reserve requirement from $40.0 million to $12.0 million
An increase and acceleration of the return of the City Payment back to the City, a $19.0
million benefit from 2006 to 2010
Page 7
Swerdling & Associates
Statement of Qualification
Case Studies
• The Authority receives $535,000 annually from the release of the City Payment which
may be used to fund capital expenditure shortfalls or at the Authority's discretion, any
purpose relating to the Bonds or the Hotel, a $7.0 million present value benefit
• $900,000 in annual debt service savings
Page 8
Swerdling & Associates
Statement of Qualification
Case Studies
Austin Hilton Convention Center Hotel
$244,605,000
Austin Convention Enterprises, Inc
Convention Center Hotel Revenue
Revenue Bonds (Original Financing)
$260,170,000
Austin Convention Enterprises, Inc
Convention Center Hotel Revenue
Refunding Bonds (Restructuring)
The original capital structure for the financing of the City's 800-room hotel contemplated the
issuance of non -rated bonds and did not include any ongoing financial support from the City.
However, due to certain fundamental changes in the capital markets including the demise of
the hedge fund Long Term Capital Management and the Russian credit defaults which caused
a dramatic shift in investment monies away from the high yield sector, the plan of finance was
reengineered. As a result, Mr. Swerdling worked 'closely with the City and its financial
advisor to develop an alternative plan of finance for the construction of the City's convention
center hotel which met the criteria of the evolving capital markets at the time.
The negotiations with bond insurers and the sale and marketing of the 2001 Austin bonds were
extremely onerous due to minimal municipal financial participation and unstable capital
markets. Despite the uncertain market conditions and lack of municipal support, Mr.
Swerdling, the City and its financial advisor were able to structure a financing that included a
sizable subordinate bond that was insured by ZC Specialty, a "AA" rated multi -line non -
municipal insurance provider. The final structure included the June 2001 sale of investment
grade rated senior debt in the amount of $109 million, AA -rated credit enhanced subordinate
debt in the amount of $135 million and the placement of deeply subordinated third tier debt in
the amount of $20 million. The City's financial participation was limited to a $15 million
upfront contribution and ongoing governmental financial support for the bonds was not
required. Mr. Swerdling spent a considerable amount of time working with staff and their
financial advisors to evaluate financing options which included both traditional and
alternative credit enhancers.
Page 9
Swerdling & Associates
Statement of Qualification
Case Studies
As a result of the relationships that were developed during the original financing of the hotel,
Mr. Swerdling was able to negotiate a $24.0 million cash rebate of the original insurance
premium from the bond guarantor (ZC Specialty) for refunding the bonds early. During the
refunding process, Mr. Swerdling spent a significant amount of time negotiating with the
rating agencies, the mono -line bond insurers, the original bond insurer and investors to
finalize and market the bonds which were rated and sold with AAA insurance without any
municipal participation.
Page 10
Swerdling & Associates
Statement of Qualification
Case Studies
Baltimore Hilton Convention Center Hotel
$300,940,000
Mayor and City Council of Baltimore
(City of Baltimore, Maryland)
Hotel Revenue Bonds
Senior Series 2006A
Subordinate Series 2006 B
In February 2006, the Mayor and City Council of Baltimore issued bonds to fund the
construction of a 756-room full service, convention center hotel. Mr. Swerdling worked closely
with the City, its financial advisor and the rating agencies to develop a capital structure which
sought to balance the City's goals of attaining the lowest cost of capital by securing the ratings
required for a "AAA" bond insurance policy while at the same time minimizing the impact of
the City's financial participation on its general fund.
The final structure included $247.5 million in "AAA" insured senior lien bonds and $53.4
million in "Bal/BB" subordinate lien bonds. The subordinate lien bonds were uninsured and
were included in the capital structure to reduce the amount of senior debt per hotel room, one
of the two major concerns of the ratings agencies. Because the subordinate bonds were not
investment grade Mr. Swerdling prepared and made an investor presentation to potential
investors and fielded analyst questions prior to the bond sale. The subordinate lien bonds
were so well received in the marketplace that the all -in -cost (which includes the cost of bond
insurance on the senior lien bonds) was only 35 basis points higher than that of the senior lien
bonds.
Mr. Swerdling leg negotiations to further reduce the par amount of the senior debt with the
bond insurer to provide a debt service reserve fund surety for one half of the debt service
reserve fund requirement. Another rating agencies concern was the hotel's ability to fund
senior debt service obligations during the hotel's initial operating years in the unlikely event of
a major market occurrence or shock. This concern was alleviated by negotiating with the hotel
operator,
Page 11
and specifications, mountain development, and entitlement. Dan has successfully supported
planning and development projects in Fort Collins, Boulder, Denver, Snowmass, and Crested
Butte. He is a Licensed Architect in Colorado.
Pete Dordick,JD
Pete Dordick, JD, has 20+ years of real estate development experience including consulting on
acquisitions, development and investments, providing client based and in-house legal guidance,
and offering all phases of development expertise from identifying acquisition targets to
analyzing metrics to project management. He isa former principal partner in a Boulder,
Colorado law firm concentrating on real estate development and construction law. Within his
practice he led the development of public private ventures with the State of Colorado,
managed projects involving the BLM, FEMA and the Army Corps of Engineers.
While practicing law he founded a Development & Construction Company that developed and
built hundreds of homes on Colorado's Front Range; luxury homes in the Vail Valley and a wide
range of hospitality, commercial and government projects. Focusing on the hospitality sector
he worked on hotel projects on the Isla de Margarita in Venezuela, Baja Norte, Mexico, the
Bahamas, the US 36 corridor and Denver - where he was the lead developer of and a partner in
the new Element hotel by Westin and Aspen. He has been a development consultant on hotel
projects in Texas, Florida, Alabama and California, North Carolina, the Mall of America, an eco-
hotel concept and a public/private partnership for a University Hotel and Conference Center.
Pete's responsibilities have included site selection, contract negotiations, architectural and civil
engineering oversight, entitlements, financing, horizontal development, project management,
acquisitions and legal. His companies have held both residential and commercial general
contracting licenses necessitating his direct participation in all horizontal and vertical
construction decisions.
He has been published and quoted by HVS, Cornell University Hotel School, a wide range of on-
line hospitality publications and the California Lodging Industry.
In addition to his development experience, his legal work has included the preparation of
Fairness Opinion Letters with concluded hospitality assignments with values totaling over
$200,000,000 and closed acquisitions, sales and investments totaling over $300,000,000.
RRC Associates, Inc.
Swerdling & Associates
Statement of Qualification
Case Studies
Hilton Hotel's Corporation, to provide a $25.0 million debt service guaranty (which, if
required to be called upon, would fund more than one year of senior debt service). Both series
of current interest bonds were secured by the hotel's net income, an annual pledge (subject to
appropriation) of the Hotel's property taxes, the prior year's site specific Hotel Occupancy Tax
and debt service guarantee from city-wide Hotel Occupancy Tax (up to $7 million annually).
Page 12
Swerdling & Associates
Statement of Qualification
Case Studies
Omaha Hilton Convention Center Hotel
$109,750,000
City of Omaha Convention Hotel Corp.
Convention Center Hotel First Tier Revenue
Refunding Bond Series 2007
$102,970,000
City of Omaha Convention Hotel Corp.
Convention Center Hotel First Tier
Revenue Bonds Series 2002
The original financing structure included $102.9 million in "AAA" insured senior lien bonds
and $6.0 million in subordinate bonds, purchased by the manager and developer. The senior
bonds were in part supported by an Appropriation from the City to pay up to 40% of the total
debt service on the bonds. The Omaha transaction was the first hotel financing 100% insured
by one of the four primary, AAA rated mono -line insurers.
The 2007 restructuring provided the Corporation with significant debt service savings and
allowed for projected revenues from Hotel operations to adequately pay future debt service
payments and FF&E funding requirements. The City of Omaha has agreed to fund any
deficiencies on the Series 2007 Bonds, subject to appropriation. Other accomplishments of the
restructuring include: the elimination and cancellation of the developer and manger owned
Subordinate Bonds, renegotiation of the Hotel Operating Agreement and the restructuring of
certain provisions in the indenture which aim to minimize potential cash flow shortfalls.
The highlights of the resulting benefits and improvements are described below.
• Approximately $15.4 million in total present value savings
• Approximately $1.5 million in annual debt service savings
• Elimination of developer owned Subordinate Bonds and cancellation of manage
owned Subordinate Bond
• Restructuring of Hotel Operating Agreement resulting in $150,000-$200,000
reduction in the annual management fee
Page 13
Swerdling & Associates
Statement of Qualification
Subsidized Hotel Financing
In many markets across the country, current occupancy levels and room rates do not support
the rate of return required by private equity investors. Today's development costs typically
exceed levels that can be supported by market rates requiring municipalities to provide
subsidies to private developers to bridge their funding gaps. These subsidies typically include
cash, tax abatements, land contributions and/or infrastructure development.
As a substitute to providing subsidies that, municipalities have looked to the tax-exempt
markets to complete hotel projects that cannot be financed privately. Tax-exempt financing is
generally the least expensive form of project financing and often requires less equity to be
contributed to a project than conventional sources of financing. Under federal tax law, bonds
for a hotel project can only be tax-exempt if the project is owned by a local agency or a
qualified nonprofit corporation. Many municipalities have either moved forward with or are
considering hotel projects to cater towards their existing convention and conference facilities.
There are many advantages to utilizing tax-exempt financing other than the ability to access
the lowest available cost of funds. These include the local agency's ability to retain
ownership -like control over the design, quality and operation of the hotel. In addition, this
increased control allows the local agency to have the ability to define the level of finish at the
hotel, determine the extent to which the hotel is integrated with the convention facility and
define non -compete restrictions based on the current and future needs of the local market.
Under a municipally sponsored hotel project, the local agency becomes the owner of the
project and therefore is the beneficiary of the financial benefits associated with the project.
These financial benefits include:
• Hotel Ownership (Sale Proceeds)
• Increased Tax Revenues
• Annual Profit Distributions
• Job Creation
• Induced Demand for Further Development
For these reasons and due to certain changes in the federal tax code, more municipally
sponsored hotel project are under development across the country. The municipalities that
have implemented this type of structure include: Chicago, Illinois; Austin, Texas; Sacramento,
California; Houston, Texas; Chesapeake Bay, Maryland; Overland Park, Kansas; Myrtle Beach,
South Carolina; St. Louis, Missouri; Denver, Colorado; Omaha, Nebraska; Erie, Pennsylvania;
Bay City, Michigan; Lombard, Illinois; Baltimore, Maryland; San Antonio, Texa.s; and Phoenix,
Arizona.
Page 14
Coburn Development
John Covall
Dan Rotner
COBURN
creating great places-
RRC Associates, Inc.
Appendix
JOHN A. KOVAL
Vice President & Director of Development
Coburn Development, Inc.
COBURN
PROFESSIONAL EXPERIENCE:
creating great places"
Coburn Development, Inc. Boulder, CO
EDUCATION:
1998 — Present, Director of Development
Bachelor of Arts
Primary Responsibilities: determining the economic viability of all projects.
Environmental Design
Additionally, John oversees overall project management and is actively
1987, University of Colorado
engaged with each project throughout its lifecycle. He has more than 20
years of experience in the real estate industry with an emphasis on
REGISTRATION:
acquisitions, commercial brokerage, property management, development and
construction. Also, John is responsible for the day-to-day operation for
Coburn's Boulder office and corporate headquarters. John has managed a
Licensed Real Estate Broker
portfolio of over 200 properties valued in excess of $100 million. John's
State of Colorado
development experience is in excess of $150 million.
Ecobroker designation
Gibbons White, Inc. Boulder, CO
Commercial Real Estate Broker and Property Manager
Commercial sales, leasing and management of over 500,000 sq. ft. New
business development, financial and investment analysis, transaction details,
lease/sales negotiations and day-to-day property supervision. Promoted to
Vice President — Marketing.
Storage Technology Corporation (StorageTek), Broomfield, CO
Property Lease Representative
Leased property portfolio management of over 200 properties representing in
excess of $10 million in annual costs for this Fortune 500 Company.
Conducted national research and trend analysis, administration of analytical
approval process for leases, lease negotiations and on -going lease
administration.
Draper and Kramer, Incorporated
Project Manager — Development Services
Overall project supervision of various projects in excess of $50 million in
development Costs. Structured project pro formas, coordination of project
team, design and construction supervision, implementation f marketing and
management team, ongoing monitoring of project performance.
Coburn Development, Inc. 1811 Pearl Street, Boulder, CO 80302
303-442-3351 www.coburndev.com
Last edit: 9/8/20091
CIVIC CAPACITIES:
• Chairman of the Downtown Boulder Business Improvement District
Board for two terms.
• Member of the Boulder Valley School District Capital Improvement
Committee
• Member of the City of Boulder's Technical Review Group for
Affordable Housing money allocation
• Member of Boulder's Economic Panel/Advisory Committee
• Member of Boulder Chamber of Commerce Board of Directors
• Member of the Community Affairs Committee, Boulder Chamber of
Commerce
• City of Boulder Downtown Commissioner
KEY PROJECTS:
Real Estate Development
•
Steel Yards, Boulder, Colorado
•
Holiday Neighborhood, Boulder, Colorado
•
1505 Pearl Street, Boulder, Colorado
•
12 Maples, Boulder, Colorado
•
Pearl Street Cove, 1637 Pearl Street, Boulder, Colorado
•
Penny Flats, Fort Collins, Colorado
•
Regent Office Center II Elk Grove Village, Illinois
•
The Chicagoan Apartments, Chicago, Illinois
•
Oakland Commons Shopping Center, Bloomington, Illinois
•
Live Oak Office Center I, Sarasota, Florida
Brokerage and/or Management
•
Park Plaza, Broomfield, Colorado
•
Centennial Market Place, Louisville, Colorado
•
Boulder Community Hospital — Medical Pavilion, Boulder, Colorado
•
West End Plaza, Boulder, Colorado
• The Meadows on the Parkway, Boulder, Colorado
DANIEL R. ROTNER, AIA
Senior Architect
Coburn Development, Inc.
PROFESSIONAL EXPERIENCE:
Coburn Development, Inc. Boulder, CO
1998 — Present, Senior Architect
Selected Projects:
• Rodeo Place, Town of Snowmass Village CO` Design and
documentation of modular fabricated single family and multi-
family residences. Construction contract administration. Overall
management of the design team.
• Penny Flats, Fort Collins CO: Project site planning and
entitlement. Design and documentation of mixed us and multi-
family residential buildings. Overall management of the design
team.
• Holiday Neighborhood, Boulder CO: Completion of project site
planning and entitlement for Coburn's portion of the site. Design
and documentation of single family and multi -family residences.
Overall management of the design team
• Pitchfork, Crested Butte CO: Project site planning and
entitlement. Design and documentation of single family and
multi -family residences. Overall management of the design
team.
• Steelyards, Boulder CO: Design and documentation of mixed
use and multi -family residential buildings. Overall management
of the design team.
• Blue Sky Hill, Boulder CO: Design and documentation of single
family homes and buyer customization
• Iris Hollow, Boulder CO: Design and documentation of single
family homes
Saiber Saiber, Inc. Denver, CO
1992 —1998, Project Architect
• Site planning, design and documentation of residential single
family and multi -family housing.
• Design, documentation and construction contract administration
of commercial tenant finish.
Cornerstone Architects, New York, NY
1991 —1992, Job Captain
Coburn Development, Inc. 1811 Pearl Street, Boulder, CO 80302
303-442-3351 www.coburndev.com
COBURN
creating great places"
EDUCATION:
Master of Architecture
1991, Columbia University, Graduate
School of Architecture Planning &
Preservation
Bachelor of Fine Art
1987, Parsons School of Design,
Department of Environmental Design
REGISTRATION:
Licensed Architect
1998, State of Colorado
PROFESSIONAL ORGANIZATIONS:
American Institute of Architects
Member
Last edit: 9/8/20091
I
COBURN
creating great places -
A HISTORY OF COLLABORATION
11
Coburn creates great places for people, for communities, for
life and for work. We develop, design or build. By providing all
three disciplines under one roof, we offer both an effective
and innovative model that ultimately helps our clients save
time and money. We celebrate vision, and have consistently
pioneered environmentally sound methods since our founding
in 1985. The result? Healthy and productive places that
connect people and sustain the earth. Our portfolio includes
new homes and. renovations, residential developments,
affordable housing, commercial buildings, tenant finish, urban
infill and mixed -use urban centers. All planned, designed or
built with the end user in mind.
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enjoy:innovative design
that ins ires"ndeEevates
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Pete Dordick, JD
RRC Associates, Inc. Appendix
AHotelMarketConsulUngServicest ,2009
§ +
Scope
The proposed scope is outlined below. All team members are expected to play a role in each
task, however within this scope, only the team lead has been identified. Additionally, only
meetings with the DDA Board and City Council, and the initial kick-off meeting have been called
out. We anticipate multiple meetings throughout the project with staff that will be scheduled
as the project evolves. The budget and schedule are included in Appendix A. The budget
allocation includes a detailed breakdown of anticipated team member participation in each
task.
We have divided the project into two phases. The first is the 'vertical' phase as laid out on the
diagram in Appendix A. This phase takes us through the decision point in the level of subsidy
necessary to develop the desired hotel. The second phase will follow either Alternative A or
Alternative B. Alternative B would involve revising the scope and amending the contract. The
current scope and budget allocation are for Alternative A as defined in our proposal.
Phase I
Project Kick -Off
We anticipate. having an organizational meeting to discuss the project, make sure everyone is
on the same page and iron out any wrinkles in the program. This meeting has not been
identified on the schedule but a time will be set for a mutually agreeable date near the onset of
the project:
Finance 101
This meeting will be an educational working session with internal staff on hotel financing. It will
be important at the onset of the project to bring everyone to the same basic level of
understanding.
Team Lead: Swerdling Associates
Deliverable: Presentation
Preliminary Market Assessment
The initial step,will be to develop a preliminary market assessment. We will work with the City
and the. DDA to define the comparable communities from STR's database of over 1,300 markets
worldwide based on size, location, presence of a University and other key demographic,
economic or physical traits.
RRC Associates, Inc. 7
Pete Dordick, JD
petedordick@mac.com
Cell: 303-885-3310
Skype: peter.dordick
1871 Folsom Street
Boulder, Colorado 80302
Business Philosophy
"In business you must take the initiative. Start by being an effective and aggressive listener when
planning your objectives with your client and your team. Once you have a plan of action identified keep
analyzing the situation and ask questions that lead to sound information gathering. Build your team and
take action; and be sure to give people the opportunity to actively participate in reaching your goals.
Having every team member take ownership of the project is the surest way to make certain the job is
done right. Always follow through. Once you achieve your goals, look back and learn from your actions
and always credit your team for a job well done."
Current Position
HVS Global Hospitality Services — Consultant. HVS is a global consulting and services organization
focused on the hotel and leisure industries. Consulting on acquisitions, development and investments;
providing client based and in-house legal guidance, offering all phases of development assistance from
identifying acquisition targets to analyzing metrics to project management.
Consultant to a diversified multi state real estate portfolio valued at over $150 million. The needs of the
enterprise means that the focus is broad based; the current requirements include dispositions,
operations, refinancing and new investments opportunities.
Board Member — SolTerrah, a start up green technology company that focuses on commercialization and
marketing of emerging green, solar, water production and power generation technologies.
Skills
•Compelling and effective verbal and written communicator
•Creative vision for new opportunities and problem solving
•Follow through
Career
1986 Congressional Intern - Senator Tim Wirth
1987 Law Clerk - Lamm & Young
1988 Intern - Boulder County District Attorney
1988 Legal and Consulting Services Group
to Director of Development & General Counsel
Present HVS Global Hospitality Services
Experience
Twenty years of proven executive experience in business development, holding simultaneous positions
as VP of Development and General Counsel for over ten years. Range of experience includes:
•Business Formation
•International Real Estate Development
•Operations
•Hotel & Resort Development
•Transit Oriented Development
•Leasing
•Brownfield Development
•Adaptive Re -Use
•Acquisitions and Sales
•Land Use Strategies
•Government Relations
•Troubled Assets
•Investment Strategies
•Construction Documentation
•Project Management
•Strategic Planning
•Power Production Projects
•Finance
■
Fairness Opinion Letters - Concluded assignments for privately held companies with values totaling over
$200,000,000.
Completed acquisitions, sales and investments totaling over $300,000,000.
Founded and grew a development and construction company that developed and built hundreds of
homes on Colorado's Front Range and luxury homes in the Vail Valley as well as a wide range of
hospitality, commercial and government projects. Responsibilities included operations, acquisition
strategies, new product development, marketing, and legal. The companies held both residential and
commercial general contracting licenses, necessitating participation in all horizontal and vertical
construction decisions. Led all entitlement hearings and negotiated development agreements.
Led development projects in California, Colorado and Mexico for Manco Development an Irvine,
California based developer and oversaw all company legal matters. Manco is the co -developer of
Sapphire Tower, a 33-story luxury mixed -use tower in San Diego and the developer of Playa Estrella, a
50-acre hotel resort project in Baja, Mexico. Led planning and financial analysis groups, entitlements and
municipal negotiations.
Lead developer of the new Element hotel by Westin in Denver; responsibilities included site selection,
contract negotiations, architectural and civil oversight, entitlements, partnership financing and
horizontal development management. Acted as the development consultant on new hotels in Texas,
Florida, Alabama and California, the planned Boutique Hotel at the Mall of America, the Pure/Eco hotel
product rollout and the University of South Alabama hotel and conference center.
Published and quoted by HVS, Cornell University Hotel School, Travel News, Hospitality Trends, Hotel
News, Hospitality.Net and the California Lodging Industry.
Career Overview
•Development, business and legal experience domestically and internationally in Sweden, Venezuela,
The Bahamas, Nevis St. Kitts - West Indies and Mexico.
•Negotiator with national credit tenants including Old Navy, Blockbuster, Morton's Steakhouse and
Goody's.
•Conducted entitlement hearings and negotiated agreements with government agencies both
domestically and internationally.
•Developed a multi phased, multi property project whose parties included the State of Colorado, the
Attorney General and the Colorado Department of Transportation.
•Analysis and responses to RFP's for the development of public -private partnerships.
•Grant applications and use of funds programming for affordable housing in Ft. Collins, Colorado.
•Detailed review of catastrophic property damage insurance coverage, federal disaster relief funding,
due diligence and claims for relief in Dade County, Florida.
•Advisement upon and drafting of complex corporate governance documents, PPM's, circulars, project
memoranda and marketing materials.
•Brownfield clean up and development.
•Hospitality, subdivision, commercial, retail and municipal infrastructure development, construction,
sales and leasing.
•Advised on the formation of investment, financial, alternative energy, solar, computer software and
telecommunications companies.
Education
Bachelor of Arts - University of Colorado
Juris Doctor - University of Denver
Memberships
Former Executive Director of the Chicago Youth Success Foundation
Founding Board Member of The Unlimited Fitness Foundation
Past member of the UCLA Children's Hospital fund raising board
Past Co -Chair of Municipal Open Space Committee
References and Writing Samples Available Upon Request
ASSOCIATES,.
City of Fort Collins An STR Company
Purchasing Division
215 N. Mason Street, 2"d Floor
Fort Collins, CO 80524
September 8, 2009
Dear Members of the Selection Committee:
We are pleased to submit our proposal for hotel market consulting services related to the potential
development of a new lodging facility in downtown Fort Collins. We have organized a team that will
provide you with a comprehensive level of expertise to assist you with your project. Particularly in
today's challenging economic environment, a full understanding of the critical components of a
public/private endeavor is necessary to ensure that you are properly informed before proceeding with
such an important investment in the City of Fort Collins. Recent experience in Downtown Fort Collins
with respect to the Corporex Hotel proposal has increased awareness of the need to assemble the most
complete, effective and practical package that would attract the best possible hotel and development
team compatible with downtown redevelopment objectives.
Unlike most advisory groups that analyze proposed publicly subsidized projects, our team consists of
individuals with extensive firsthand experience in developing, financing, and negotiating in the
commercial real estate sector. Our team includes:
RRC Associates and Nolan Rosall with 30 years of experience in responsible public and private sector
planning, redevelopment, and market research —much of which was dedicated to successful downtown
revitalization efforts.
Smith Travel Research (STR) and STR Global are the leaders in providing hotel industry market data,
including custom trend and benchmarking reports with a database of over 1,300 markets worldwide.
Hospitium is a hotel consulting firm that delivers timely and useful research, analysis, and insight that
assist the various needs of owners, developers, management companies, and financial institutions.
Swerdling & Associates ("S&A") brings extensive experience in structuring, negotiating and underwriting
public -private partnerships with areas of expertise in Hotels, Convention Centers / Conference Centers,
Entertainment/Urban Development Districts.
4940 Pearl East Circle • Suite 103 ® Boulder, CO 80301 e 303 449 6558 PHONE . 303 449 6587 FAx ® www.rrcassoc.com
Coburn Development brings a long and successful history of creating urban mixed use communities and
working with public entities, including their recent experience in downtown Fort Collins with the Penny
Flats mixed use project.
Pete Dordick, JD, brings 20+ years of real estate'development experience including consulting on
acquisitions, development and investments, providing client based and in-house legal guidance, and
offering all phases of development expertise from identifying acquisition targets to analyzing metrics to
project management.
Our diversified backgrounds provide a solid basis for understanding the multiple challenges involved in
such complex hotel deals, and also give us a broad knowledge base from which we can develop creative
solutions and provide effective guidance to Fort Collins and the DDA.
We do not have a pre -packaged product that simply reiterates the same conclusion that numerous other
municipalities have heard over the past several years. Given the current state of the lodging industry, as
well as the struggles of numerous other public/private hotel developments that were once deemed
"feasible," it is important that you receive candid advice from multiple perspectives. Our goal is to
provide you with honest insight that will create the most viable project and position it to be a successful
investment for all parties involved.
If you have any questions or need further clarification regarding our proposal, please do not hesitate to
contact us. We look forward to working with you.
Sincerely,
RRC ASSOCIATES
bTM Gtd
Nolan Rosall
Director