Portman Holdings, an Atlanta-based architecture and real estate development company, is planning on constructing a 300-foot tall and 800-room Convention Center Hotel in Miami Beach. The project was approved by the Miami Beach City Commission last Friday.
According to a report by Curbed, the 99-year-lease with Portman Holdings has been favored by the elected body of the Miami Beach City Commission. However, it will still go back to the Commission for a second reading on September 2nd, and will go to voters for approval in November.
In a report by The Real Deal news, it was explained that the proposal will go back to the Commission on November 3rd. This is because the hotel will be built on 2.65 acres of city-owned land, and thus must be approved by at least 60% of Miami Beach voters.
If the proposal is fortunate enough to be approved by the Beach officials and by the local voters, a $400 million hotel complex will soon rise in the area. The project is anticipated to be completed by 2018.
The convention center hotel complex will be offering 95,000 square feet of conference and ballroom space, as well as 37,400 square feet of restaurants and retail space. The complex will be located on the East of the Filimore Miami Beach and the Jackie Gleason Theater.
A 2.5 percent of Portman Holdings' revenues from the complex will be given to the city for the minimum base rent. This is equivalent to $209,279 on its first year, and $418,557 will be added for the next ten years. The city's consultant and managing partner of Strategic Advisory, Jeff Sachs, said that the city can make between $21 million and $44 million for the rent alone. The present value rent would be about $35 million to $74 million in 99 years, reports The Real Deal.
Sachs added that it is not just the Portman Holdings who will be paying for taxes, property taxes and resort taxes will also be entitled to the city of Miami Beach. The city will be paying a whopping $151 million in 30 years and $233 million in 99 years at net present value.