Ernest N. Morial New Orleans Exhibition Hall Authority (NOEHA) Special Meeting for Public Hearing Notice and Agenda Monday, October 21, 2019 at 6:00 p.m. Meeting Rooms 220-222 – 900 Convention Center Blvd., New Orleans, LA 70130 The Board of Commissioners will convene and hold a special meeting in Meeting Rooms 220222 located on the 2nd Floor of the Convention Center and accessible by the Lobby B escalators beginning at 6:00 PM. The purpose of the special meeting is to conduct a public hearing on the Convention Center Headquarters Hotel Project. No formal action will be taken. I. CALL TO ORDER II. CONVENTION CENTER HEADQUARTERS HOTEL PROJECT PRESENTATION III. PUBLIC COMMENT: The Louisiana Open Meetings Law provides the public with the opportunity to address this board prior to it taking any action on an agenda item at the meeting. Although the board will not take formal action at this meeting, public comment is invited after the presentation. Members of the public will be allowed four (4) minutes each to make comment about the Headquarters Hotel Project. Please note that this is not a question and answer session where a member of the public can ask questions and demand answers of this Board of Commissioners. IV. ADJOURN NEW ORLEANS ERNEST N. MORIAL CONVENTION CENTER HEADQUARTERS HOTEL SUMMARY OF KEY INDICATORS  1,200 Room Omni Hotel attached to the Convention Center opening in 1st Quarter 2024  Developer Original Financing Plan: o Non-profit ownership; Tax-exempt bond debt; 40-year amortization o Non-profit exemption from property tax o Zero ground lease; $41M cash contribution o Rebate of 10% Hotel Occupancy Tax (HOT) and 4% Non-room Sales Tax o No MCCNO default risk; Reversion of hotel to MCCNO after debt is repaid o Net Value Of Incentives = 24% of project costs vs. 37% U.S. Average  Authority Negotiated Financing Plan: o Payment In Lieu Of Taxes (PILOT) $3-$5M/yr. (estimate) o Ground Lease payment $250,000/yr. + 2% o Rebate of 8.42% HOT and 4% Non-room Sales Tax o Authority to build and own 900 space parking garage  Hotel to lease spaces for $300,000/yr. + 2% o $7M Cash Contribution o No MCCNO default risk; Reversion of hotel to MCCNO after debt is repaid o Net Value Of Incentives = 17% of project costs vs. 38% U.S. Average  Other Material Agreements: o Developer required to fund a capital repair and maintenance fund (10% of Gross Rev) o Room Blocking agreement of 83.33% of inventory (1,000 rooms) o Hotel Operating Agreement – Upper Upscale operating standard  Pre-Development Expense Reimbursement Agreement: o Authority provides for site preparation costs - $26M estimate o Other expenses to be shared at 55% (Developer) 45% (Authority) o Authority to be reimbursed at financial closing  SEB/DBE: The Developer Consortium will comply with SEB/DBE requirements of the Authority o 30% Direct participation o 25% Goods and Services  Proposed Hotel Annual Economic Impact o Net New Hotel Room Nights o Total Annual Economic Impact o City of New Orleans Taxes o City of New Orleans Property Tax o State of LA Taxes o Permanent new jobs 172,000 $282M $ 18M $3-$5M $6M 1,900 Public Support Developer Proposal Authority MOU Hotel Occ. Tax Rebate 10% 8.42% Property Tax Rebate No Taxes Paid $3-$5M taxes to the City annually Authority Cash Contribution $41 Million $7 Million Ground Lease Payment None $250K per year escalating at 2% Parking Developer owns Ownership Hotel reverts to public ownership Authority owns and receives $300K/yr. Hotel reverts to public ownership