2016-326-E Visitors Bureau - Conventions Sports & Leisure for feasibility study of potential new convention center, etc. in OC

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DocuSign Envelope ID: 137AC14B-6250-4081-9084-0BF0B086A047 Ms. Laurie Paolicelli June 3, 2016 Page 6 of 13 Step 6: Preliminary Assessment of Hotel Issues The purpose of this step is to gain an understanding of the current and future market potential for hotel growth in Orange County, as well as to develop a foundation for assessment of potential public/private opportunities with new/existing lodging partners for a hotel/conference center project as one potential scenario. Throughout this process, we will meet and coordinate with key stakeholders, convention and hospitality industry professionals, economic development representatives, public sector officials and others. We will conduct the following: • Evaluation of macroeconomic trends and local economic indicators. • Assess recent trends with local lodging demand and directional trends of key economic indicators that influence the lodging industry. • Identify competitive hotels in the area. • Research occupancy and average daily rate of the local hotel marketplace. • Identify and evaluate proposed new lodging competitors in the market area and their potential impact. • Evaluate potential induced demand from the proposed subject convention/event facility and/or other major proposed developments in the area. • Preliminarily assess order-of-magnitude occupancy, average daily rate, and RevPAR for the market and one or more potential new hotel properties that could be developed/incentivized as part of a new initiative. • We will discuss project/development opportunities that may be market-indicated. • We will preliminarily evaluate various program/project scenarios and the potential impact on the amount of public sector financial support required. The hotel and event space programs most suitable for increasing Orange County visitor and event activity will also be discussed. Task 2. Market Supportable Facility Development Options The purpose of this task is to synthesize findings of the previous task to analyze and translate market demand into market supportable visitor-oriented event facility development options in Orange County. Further, we will incorporate results of previously conducted analyses and/or master planning efforts, suggesting potential enhancements based off of current and projected future market conditions. It is likely that the facility focus will be multi-use in nature, integrating a variety of functional components to allow for accommodation of a diversity of event types. In particular, our analysis will address space needs in terms of the following: • exhibit, meeting, ballroom and multipurpose space; • fixed and temporary seating levels; • size of support space and other functional areas; • amount and type of other revenue-producing areas; • space configuration and aesthetic features; • theme and branding possibilities; • infrastructure needs; • possibilities for future expansion and spin-off development; and, • important technological and other amenities.