Portman-CMC Lays out Key Differentiators in its Proposal to Redevelop the Miami Beach Convention Ctr

MIAMI BEACH, Fla. - June 25, 2013 - PRLog -- MIAMI (May 22, 2013) – Portman-CMC released a “Top 5 Reasons” list for why its plan to develop the Miami Beach Convention Center District is the best plan for the City of Miami Beach and its taxpayers.

The Top 5 Reasons list points out stark differences between the two finalists’ proposals as put forth in their respective Letters of Intent submitted to the Miami Beach City Commission. Both letters are publically available on the City of Miami Beach website here (http://www.miamibeachfl.gov/news/scroll.aspx?id=58484).

The Top Five Reasons:

Portman-CMC plan will cost the public less. Portman-CMC’s plan would require $75.6 million less in public cost than South Beach ACE’s, according to analysis by the city. Total costs for the Portman-CMC proposal are $656.5 million, compared to $715.0 million for South Beach ACE. These numbers however, must be modified as they include components that are not public costs. After deducting Portman-CMC’s $32.1 million of private contribution to the public for open space and South Beach ACE’s $10.6 million private contribution to the public for open space, then deducting South Beach ACE’s $4.4 million in excess proceeds, the total public cost is $624.4 million for the Portman-CMC plan and $700.0 million for the South Beach ACE.  The gap between these numbers is $75.6 million – the difference in the total public costs of the two projects.    

Portman-CMC team’s design fees will cost the public less. The South Beach ACE team is charging the city $8.8 million more than Portman-CMC in fees. Developer fees & staffing are $15.8 million for the Portman-CMC plan and $18.0 million for South Beach ACE. Construction management fees are $9.4 million for Portman-CMC and $11.0 million for ACE. Lead architect fees are $15.0 million for Portman-CMC and $20.0 million for South Beach ACE. The difference in these fees shows South Beach ACE’s plan would charge the city $8.8 million more in fees than Portman-CMC.

Portman-CMC will take 19 months less to construct the full project. South Beach ACE’s schedule for completion of its full project is 19 months longer than Portman-CMC’s, resulting in lost revenue to the city and greater disturbance to the residents. South Beach ACE’s construction schedule begins in July 2014 and ends in August 2018, resulting in 50 months from temporary meeting space to hotel completion. Portman-CMC’s plan starts in January 2015 and ends in July 2017, resulting in 31 months from Convention Center to Gleason/Phase 3 Retail. Therefore, the difference between the two construction schedules is approximately 19 months.

Portman-CMC will give back more money to the public if the project goes under budget. If the Miami Beach Convention Center District Redevelopment Project comes in under budget, under standard practice the teams share in the savings.  Portman-CMC has proposed that it retain only 20 percent of the savings and will give 80 percent back to the city, whereas South Beach ACE is proposing to keep 50 percent of the savings and will only return 50 percent to the city.

The competing scheme is 50 percent taller than Portman-CMC’s thus taking views away from surrounding properties. Portman-CMC’s plan is 124 feet high. South Beach ACE’s plan is 194 feet high, nearly double the height permitted by current zoning. Also, it has been noted that South Beach ACE’s proposed hotel concept may cast a shadow on the Holocaust Memorial.

"Our plan is the most fiscally responsible plan for the City of Miami Beach and its taxpayers," said Jack Portman, vice chairman of Portman Holdings. "The Portman-CMC plan costs the city less money - we charge the city less money and we do this while creating a modern convention center, new hotel, new public square and we invest more private money into culture and arts for the benefit of Miami Beach residents."

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About Portman-CMC

The Portman-CMC team is one of two development groups currently bidding to develop the 52-acre Miami Beach Convention Center District. The team is comprised of top talent from Miami and many of the world’s most qualified expert professionals, representing pioneers in their respective fields, including Portman Holdings, CMC Group, Bal Harbour Shops, Cirque du Soleil, BIG – Bjarke Ingels Group, John Portman & Associates, Fentress Architects, West 8 and Revuelta Architecture International. For more information, please visit www.PortmanCMCMiamiBeach.com.

As requested by the City, the development project calls for a renovation and expansion of the Miami Beach Convention Center; the addition of a multi-purpose space/ballroom; the addition of meeting space; a new convention center headquarters hotel; outdoor public spaces; parking; restaurants; entertainment.