Community Venues/ Convention Center Update

1. ORANGE COUNTY Community Venues/ Convention Center Update May 8, 2012

2. COMMUNITY VENUES/CONVENTION CENTER UPDATE • Community Venues • Convention Center Overview • Convention Center CIP

3. COMMUNITY VENUES/CONVENTION CENTER UPDATE • Community Venues • Convention Center Overview • Convention Center CIP

4. HISTORICAL TDT COLLECTIONS

5. TDT HISTORY • In 1978 the voters approved a referendum to: • Impose a Tourist Tax • Build a civic center in phases • Never use general revenues of the county

6. THE EARLY YEARS – 1983 to 1999 • Collections began in 1979 with 2% rate • 1980 collections - $4 million • Tax rate increased • 1986 – third penny • 1990 – fourth penny • 1995 – fifth penny

7. THE EARLY YEARS – 1983 to 1999 • Building the Convention Center • Phase I - 1983 • Phase II - 1989 • Phase III and IIIa - 1996 • Phase IV – 1996

8. THE EARLY YEARS – 1983 to 1999 • Promoting Tourism • Visitor’s Bureau - $105.9 million • Supporting Community Venues • Amway Arena - $50 million • Citrus Bowl - $43.6 million • Supporting Community Events • Sports Commission - $703K • Science Center $300K • Bowl games - $175K • Florida Classic - $150K • Other sports activities - $75K

9. TDT FROM 2000-2002 • Construction began on Phase V to double size of CC • TDT collections began to slow in the spring of 2001 • TDT collections seriously affected by 9/11 in FY ‘02

10. IMPORTANCE OF CASH RESERVES • Phase V was almost Phase 4½ • Collections softened in spring 2001 • Effects of 9-11 event • Cash reserves saved the construction schedule

11. HISTORICAL TDT RESERVES

12. 3 years of community dialog 18 months of negotiations BCC approved Community Venues Agreement on July 26, 2007 Approved by City Council and CRA on August 6, 2007 COMMUNITY VENUES

13. In Millions Events Center $ 480 Performing Arts Center 425 Citrus Bowl 175 Total $ 1,080 COMMUNITY VENUES

14. City’s Responsibility Finance Construct Own and operate Assume all risks COMMUNITY VENUES

15. County’s Responsibility Provide ½ 6th cent of TDT to City to finance $270 million for Events Center Provide surplus TDT revenue from 1 – 5 cent when and if available to finance up to: $130 million for Performing Arts Center $140 million for Citrus Bowl Renovation First payment 2009 $9.6 million COMMUNITY VENUES

16. County’s responsibility From 1 – 5 cent TDT: County keeps “Base Amounts” to meet ongoing obligations and future needs Primarily to own, operate and maintain convention center and provide funding to Visit Orlando to market and promote the county COMMUNITY VENUES

17. Convention Center

18. Total Convention CenterBonds Outstanding $833,680,000 as of March 31, 2012

19. THE GREAT RECESSION • CRA property values decline • Surety rating change required cash funding $72 million debt service reserve • TDT collections decline • Convention Center maintenance & capital budgets slashed

20. COMMUNITY VENUES AGREEMENT • Recently • TDT rebounds above 2% base level • January 2012 city receives $8.3 million (for FY 2011 collections) • County continues to honor its obligations under the agreement

21. AS THE TDT GROWS 100% of growth above 2% will flow to the city

22. FUTURE 1ST-5TH CENT VENUES FUNDING

23. FUTURE 1ST-5TH CENT VENUES FUNDING 4% Future TDT Growth

24. FUTURE 1ST-5TH CENT VENUES FUNDING 4% Future TDT Growth $93m

25. FUTURE 1ST-5TH CENT VENUES FUNDING 5% Future TDT Growth $118m

26. FUTURE 1ST-5TH CENT VENUES FUNDING 6% Future TDT Growth $144m

27. FUTURE 1ST-5TH CENT VENUES FUNDING 7% Future TDT Growth $170m

28. TDT - VOLATILITY • TDT could decline due to events such as terrorist attacks • In 2002 declined by 12.6% • TDT could decline due to recession • In 2009 declined by 15.4% • TDT could decline due to legislative action

29. SUMMARY • County’s 2% will provide resources for OCCC’s capital needs • Current TDT outlook will provide cash flow to the city through 2017 • At 4% growth - $93 million • At 5% growth - $118 million • At 6% growth - $144 million • At 7% growth - $170 million

30. COMMUNITY VENUES/CONVENTION CENTER UPDATE • Community Venues • Convention Center Overview • Convention Center CIP

31. OCCC FACILITIES • 7 million total square feet • 2.1 million square feet exhibition space • 174 truck bays and loading docks • Restrooms: 214

32. MEETING ROOMS AND FACILITIES • 74 meeting rooms • 232 breakout rooms • Valencia Ballroom • Linda W. Chapin Theater • 69 escalators • 55 elevators • 6 moving walkways

33. DINING • 8 food courts • 3 full service restaurants • 2 full service kitchens

34. ECONOMIC IMPACT2012 • 128 Conv./Trade Shows • 35,416 Exhibiting Companies • 1.34 Million Attendees • $2.2 Billion in Economic • Impact to Our Community

35. Estimated Economic Impact of Convention Center $2.2 Billion Annually

36. COMPETITIVE ENVIRONMENT • Convention Centers operate in a highly competitive environment • OCCC ranked Number 1 by Business Review USA • OCCC is a major economic engine for Orange County • We need to continue to protect our investment

37. Client Advisory Board • Florida Nursery, Growers & Landscape Association • American Academy of Pediatrics • American Pet Products Association • Association for Research in Vision and Ophthalmology (ARVO) • Christian Booksellers Association • North American Association of Food Equipment Manufacturers (NAFEM) • Healthcare Information & Management Systems Society • National Training and Simulation Association/IITSEC • Rutherford & Associates • Produce Marketing Association

38. Client Advisory Board • National Rural Electric Cooperative Association • American Foundry Society • Nielsen Expositions • International Association of Amusement Parks & Attractions/IAAPA • Keller Williams Realty • McDonald's Corporation • Experient, Inc. • PennWell Corporation • The True Value Company • K & S Solutions • Meeting Alliance

39. Client Advisory Board • American Osteopathic Association • American Occupational Therapy Association • American Academy of Family Physicians • Oncology Nursing Society • American Academy of Peridontology • American Urological Association • American Association for Cancer Research • American College of Physicians • Association of Professors of Gynecology and Obstetrics • Premiere Shows, Inc. • National Association of Home Builders • ASI Show, Inc.

40. Client Advisory Board • Reed Exhibitions/PGA Worldwide Golf Expositions • Meeting Expectations/COLLABORATE • National Trade Productions, Inc. • InfoComm International, Inc. • Pittsburgh Conference on Analytical Chemistry & Applied Spectroscopy • Orgill Dealers Market • Quest International Users Group for COLLABORATE • American Hospital Association • Society of General Internal Medicine

41. Client Advisory BoardRecommendations • Further Transportation Improvements • Airport to International Drive • International Drive Area Circulator • Convention Center Campus Circulator • Continue Pedestrian Safety Initiatives • Improve OCCC • Enhance Technology (Wi-Fi and Cell Phone Coverage) • Refurbishment and Renovation of Space • Area Entertainment and Retail Expansion

42. Client Advisory BoardRecommendations • Portions of the building are becoming worn & dated. The convention center needs continued refreshment & renovation. • The WD2 to the WF area is the least desirable. The overlook just isn’t very nice (it smells bad). • Need more food outlets in North/South that aren’t on exhibit floor. Keep people in the building; there has to be more options available (bars/restaurants). • Need outdoor open spaces for events or lunches, terraces, etc. • More seating by the food outlets and in public areas. • Meeting Room Chairs – look dated. • Airport flight board especially from departure standpoint for OIA (have BAGS set up for baggage check in). Permanent Baggage station • Board room for Executive use, sound and screen. • Visible recycling bins and signs.

43. COMMUNITY VENUES/CONVENTION CENTER UPDATE • Community Venues • Convention Center Overview • Convention Center CIP

44. CONVENTION CENTER • Convention Center Space – 7.1 million square feet • Building Occupancy – approximately 200,000

45. Goal of CIP and Maintenance Program • Protect the largest taxpayer investment ever made by Orange County • Update and maintain the Convention Center complex to ensure building infrastructure systems are up to code and fully functional • Ensure timely improvements to mitigate impacts of building deterioration that normally occur over time and use • Ensure building space offered to our guests is pleasing, appropriate and inviting

46. BUILDING INFRASTRUCTURE SYSTEMS • Fire Alarm • Fire Protection • Smoke Control • Emergency Power • Electrical • Mechanical • Lighting Controls • Building Automation • Network and Data • Wireless Network • Security • Other life safety systems • People mover systems

47. Other Improvements Stand Alone Types Building Finishes Building Areas/Phases FF&E – Furniture, Fixtures and Equipment Information Systems Miscellaneous

48. CIP V. BUILDING AGE

49. PHASE II: AN EXAMPLE • Phase II Renovations: 22 years AFTER ORIGINAL CONSTRUCTION • 423,000 Gross Square Feet (147,000 sq. ft. in expo halls) • 44,000 sq. ft. in meeting rooms • Main Focus: • Convert Hall F to Ball Room, 48,000 sq. ft. • Upgrade Phase II Kitchen • Upgrade HVAC, electrical fire alarm, fire protection and other building systems • Replace aged roofing system • Replace damaged air wall system in exhibit halls • Upgrade: revise and refresh concourses, meeting rooms and public areas for pleasant and positive client experience • Upgrade and enhance building communications systems • New furniture, fixtures and equipment

50. Convention Center • Five Year Projected CIP = $175 – 195 million • Each CIP project is going through normal review as a part of our annual budget • BCC review will take place during the July budget worksessions