hri properties world trade center proposal

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HRI PROPERTIES | REQUEST FOR PROPOSAL NO. 8975-01775 RESPONSE 3

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2 THE CRESCENT HOTEL & LUXURY RES IDENCES

New Orleans Building Corporation c/o Bureau of Purchasing Chief Procurement Officer 1300 Perdido, Suite 4W07 New Orleans, LA 70112

RE: World Trade Center Request for Proposals No. 8975-01775

HRI Properties (HRI) is honored to present its proposal to the New Orleans Building Corporation (NOBC) for The Crescent Hotel & The Crescent Tower at the World Trade Center (WTC).

Today, time is running out. The financial viability of a top-flight transformation of WTC requires use of the expiring Louisiana historic tax credits program. While the legislature may renew them, the states financial crisis offers no assurance that will occur, and no lender will provide funds based on a speculation that the legislature will extend them.

This is a massive, complex project. It encompasses over 800,000 square feet. It will cost over $265 million, a figure less, we note, than the $300 million Renaissance St. Louis project that we successfully completed in 2002. Obtaining state historic tax credits, valued at about $40 million of the sources of financing for this project, is vital to the financial viability of this project. Success mandates selecting a developer with a proven track record whom you can trust to deliver on time and as promised.

HRI will provide an authentic New Orleans experience in the design, motif, and presentation of the Crescent Hotel and Crescent Tower (The Crescent). Integral to our philosophy will be a world-class, innovative, and inter-active visitor attraction on the 31st floor that celebrates New Orleans culture and history. This attraction, aimed at local residents as well as visitors, will rival the impact that Manhattans famous New York Experience did for the Big Apple, serving as a memorable, entertaining, intellectual gateway to New Orleans. Were teaming up with Unified Field, the nationally renown inter-active design firm based in New York, who helped make the World War II Museum here so exciting, to ensure that this experience is a must see. When completed, we expect the New Orleans experience to host over 500,000 visitors annually.

The World Trade Center building is iconic. It merits a renaissance that authentically expresses our city and its colorful culture. Every aspect of our proposed design and operation aims to achieve such a renaissance. HRI selected Starwoods Luxury Collection brand specifically because the Starwood brand requires each hotel to be indigenous to its locale, while providing a luxury guest experience unparalleled in New Orleans.

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Our proposal exceeds the minimum DBE requirements. We have hired DMM, the firm recognized by the City of New Orleans Office of Supply Diversity as a model for DBE participation to ensure this happens. DMM implemented the DBE participation plan in the New Orleans East Hospital Service District and was recognized as a model for DBE participation.

As to workforce development, HRI is working with Urban Strategies, a national not-for-profit corporation that works with developers to rebuild neighborhoods and empower residents in distressed urban core neighborhoods, to perform HUD Section 3 services that assure low-income New Orleans residents the opportunity to work on the project both during construction and upon completion. This project will create not only 864 construction jobs, but also an estimated 454 direct permanent jobs. HRIs track record of success at Iberville in hiring former residents shows this is no empty boast.

Our plan assures that all New Orleanians, especially low-income residents, enjoy the fruits of the projects success.

5. Profit. HRIs lease proposal is structured to pay above fair market value for the WTC property through creative revenue sharing structures that we have successfully utilized on the Hyatt French Quarter property in New Orleans with the Canal Street Development Corporation. Over the 99-year lease term, HRI projects that NOBC will receive over $1.9 billion in total lease payments including a $10 million up-front lease payment, base rent, sale participation rent,visitor attraction rent, and percentage rent.

HRI stands out for its commitment. Thus, to ensure that the State Historic Tax Credit is available, well begin demolition and abatement in June 2015. That assures the development team 24 months to complete and a six-month completion time cushion needed to assure that other financial participants close the financing on the project.

NOBC has selected five worthy competitors. But there are distinctions. They matter. Our proposal details our strategy and approach to providing New Orleans a landmark achievement open for the 2018 Tri-centennial. As you review each proposal, we respectfully submit that HRIs most fully and elegantly satisfies your requirements and meets or exceeds your hopes and expectations for a historic achievement that represents for this unique city the next step forward.

Whats the bottom line? HRI will create a unique New Orleans experience. And it can be trusted better than any other party to actually deliver on time, on budget a special project that elegantly express our culture and our history.

Thank you again for the opportunity to make this presentation and to compete for this project.

Yours very respectfully,

Pres Kabacoff Chief Executive Officer

Pivotal considerations define why HRI stands out in this competition. Its track record of success assures certainty on:

1. Performance. You can trust HRI to complete the project on time, on budget, as promised. Its team combines national prominence and local experience. It has a successful history of doing mixed-use projects on this scale, and in New Orleans, HRI has a track record of success with similar development projects. These include the Hyatt French Quarter, the D.H. Holmes Apartments, Hibernia Tower, 225 Baronne and the Iberville Revitalization Project. Each is revitalizing the surrounding neighborhoods and is, or will provide, extraordinary returns to New Orleans. HRI stands out in the competition in offering a proven ability to bring a complex project like this to successful completion.

2. Partnership. Completing this project and doing so properly requires close cooperation with NOBC. HRI has a proven track record of working successfully with the City of New Orleans day-in and day-out on major mixed-use projects. Knowing your partner makes a difference. We know you and you know us. For its hotel partner, HRI selected Starwood Hotels and Resorts, which knows this market and already operates four hotels here, to open a new, four-star hotel called The Crescent that celebrates our culture. That decision shows our business understanding of the market. Selecting Starwoods five-star St. Regis brand would have seemed more glamorous. But to be financially viable, a St. Regis must charge over $400 per night for a room. History, and prudent forecasting, shows that this market will not yet support that price point.

We selected famed restaurateur Dickie Brennan to open a signature lobby restaurant/bar on the ground floor with a New Orleans theme. This restaurant will have tables that flow outside. On the 33rd floor, he will open a revolving sophisticated bar that features craft cocktails and champagne.

Recognizing that this project must be completed by the summer of 2017, success requires the resources of a national player. Thus we selected as our contractor Roy Anderson Contractors. As a locally based subsidiary of Tutor Perini Corporation, one of the nations largest and publicly traded construction firms, it brings local knowledge and national resources.

3. Product. NOBC seeks a project that enhances the unique cultural heritage of New Orleans. HRI has built a national reputation for such work. It stands apart for its innovative success in renovating historic buildings into invigorated, adaptive commercial and residential use that renews cultural vibrancy to surrounding neighborhoods. We built our company on that philosophy. It defines who we are and our work. Armed with an integrated in-house team comprised of 1,400 employees that handles architecture, design, construction, apartment and hotel management, finance, and development, weve completed over 70 large-scale projects costing over $2 billion. Our plan will yield a WTC that authentically expresses our city and celebrates its culture and history.

4. Participation. It is said there are two cities of New Orleans. Rising like a Phoenix after Katrina, one has achieved international acclaim for creating business opportunity and as a place to live. The other, sadly, reflects challenges such as a significant unemployment rate for African American males. HRI is committed to providing job training and job opportunity to meet that challenge.


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K EY F E ATURES

> $267MM MIXED-USE PROJECT funded with all private capital and requiring no subsidies from the City of New Orleans

> 454 NEW FULL AND PART-TIME JOBS CREATED

> 309-ROOM LUXURY COLLECTION HOTEL by Starwood with over 16,000 square feet of meeting space, a separate rooftop pool, fitness center and spa for hotel guests, overlooking the Mississippi River.

> 261 LUXURY RESIDENTIAL UNITS with high ceilings, high-end appliances, stunning views and wonderful amenities, including fitness center, rooftop pool on the 32nd floor reserved for residents only, with access to the hotel services.

> 336-SPACE PARKING GARAGE with ground floor retail space located on the corner of Poydras Street and Convention Center Boulevard and direct access into the WTC building.

> RESTAURANT AND 33RD FLOOR REVOLVING BAR/RESTAURANT. A ground floor restaurant with outdoor dining and a 33rd floor revolving bar and restaurant featuring champagne and craft cocktails with a 360-degree view of the city, both designed and operated by New Orleans own DICKIE BRENNAN & COMPANY.

> VISITOR ATTRACTION Our vision for the 31st floor is to create a world-class visitor attraction including two immersion theaters showing a specially produced synoptical film of the 300-year history of New Orleans. It will be complete with curated displays and explanatory signage integrated with actual views from a newly created observation deck and a gift shop plus rentable event space. This world-class visitor attraction will be named The New Orleans Experience. SMG will operate the attraction and estimates 500,000 annual visitors generating $9 million in revenue.

CELEBR AT ING NEW ORLE ANS

Visitors and residents of New Orleans crave the culture, excitement and beauty the city has to offer. HRI Properties, LLC (HRI) is proposing to restore the iconic World Trade Center building into a world class, mixed-use project that celebrates and honors the rich history of New Orleans. HRIs proposal will create a one of a kind, only in New Orleans project that will transform the Canal Street riverfront into a vibrant hub for locals and tourists to enjoy. HRI has chosen the name The Crescent to represent the finest property of its kind in the Crescent City.

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THE CRESCENT TOW ER LU XURY A PA RTMENTS

The best amenity of the Crescent is its bold and dominating world-class location at the edge of the Mississippi River and in between everything vibrant in the City. This 261 luxury residential building offers a luxurious lifestyle opportunity that will be the first and only one of its kind in New Orleans. Developed by the premier mixed-use developer in New Orleans, HRI Properties, The Crescent will offer a 24hr lifestyle of luxury hotel rooms, luxury residential apartments and world class restaurants and attractions; all in one building.

As property manager for the Crescent Tower, HRI Management will lease and maintain the spacious 114 one bedroom, 139 two bedroom apartments and the 8 two bedroom penthouse suites for the property owner and the residents. The customer service levels and property finishes at Crescent Towers will exceed all current apartment level finishes in the market.

The Crescent Lifestyle experience will include:

PROPERT Y A MEN I T I E S

Luxury Penthouses and Apartments with breathtaking views high above the Mississippi River starting 14 floors above the City

30 9 Room Starwood Luxury Brand Hotel serves as a lower floor amenity

Exclusive 32nd Floor Rooftop pool and fitness center with breathtaking views

Reserved garage parking attached and valet services available

Elevator ride up or down to world famous Brennan family restaurants located on the top of the tower and at ground level

Walk to the French Quarter, Shops at Canal Place, restaurants and bars

Private access elevator lobby with visitor call box

Pet friendly

24 hr on-site management and maintenance staff

UN I T A MEN I T I E S

GE Profile Stainless steel appliances

Mannington Engineered Wood floors

Contemporary Wood Cabinets

Ceasarstone Quartz Countertops

Marrazi Quartz kitchen and bath surfaces

Moen & Kohler Fixtures

Washer/dryer included in every apartment

Blazing fast internet and TV options

THE CRESCENT HOTEL NEW ORLE ANS

The Crescent Hotel New Orleans, A Luxury Collection Hotel by Starwood will house 309 guest rooms, including 17 Junior Suites. Included in the key count, we will have 15 Upscale, One-of-a-Kind Luxurious Suites to include butler services. The hotel rooms will occupy floors 4 through 13 of the former World Trade Center and will be surrounded by top of the line apartment units, dinning and retail outlets. The hotel will have 21,419 sq. ft. of meeting space available for group meetings and social events, including pre-function space. As part of the Starwood Family, we will offer our corporate clientele amenities such as a Club Lounge, Business Center and a Sundry area available 24 hours a day. Additional offerings will be a 1,750 sq. ft. Fitness Center and 3,300 sq. ft. Spa on the 9th floor to include an 800 sq. ft. Childrens Club.

HRI Lodging will operate the hotel with best-in-class employees and business practices, with a goal of exceeding guest, brand, and owner expectations. Our mission will be to surround the guest with luxury and comfort and to provide true Southern and New Orleans hospitality. The hotel will have the best views in the city and our accommodations will feature luxury services, amenities and comfort.

KEY F E ATURES (CON T INUED)


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I N T R O D U C T I O N

1.I N T R O D U C T I O N

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At HRI Properties, New Orleans is a city that we love.

Its where we choose to live. Its where we choose to work. And its where, over 30 years ago, we chose to plant our roots.

Its a city known for renaissance. For reinvention. For rebirth born out of respect for tradition and authenticity.

And in our business, its hard not to be influenced by that.

RENA I S S A NCE . R EBIRTH. R E SPECT.

Its a refrain that seeps into your pores. And as a local company, we see it reflected in everything we do, from our very first project reviving the New Orleans Warehouse District to the projects we complete every day in cities across the nation.

NEW ORLE ANS I S OUR MUSE .

Its not a fad. Not a design style. Not an affectation for us. Its home.

We know it. Were inspired by it. I T S R E A L .

And its our greatest hope that what we build together inspires New Orleans in return.


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WHY SELECT HRI? This proposal reflects HRIs mission of revitalizing cities by creating diverse, vibrant, and sustainable communities, a mission we have carried forth diligently throughout our 32 year history. In satisfying the terms of the RFP, much detail and technical copy is included to illustrate how we will transform our vision into reality, not just by bringing a historic building back into commerce, but by creating opportunities for small and disadvantaged businesses and New Orleans working class citizens, the backbone of our economy, and by creating a world-class attraction to share New Orleans storied history in a manner that can only be achieved at the World Trade Center site. The following section describes HRIs expertise and track record of redeveloping mixed-use properties and highlights the creativity of our plan, which we believe makes us the ideal partner for this project.

The New Orleans Building Corporation (NOBC) is in the fortunate yet challenging position of having five development groups to choose from as a result of the RFQ process. HRI has participated in similar competitions over its 30-year history. We are very excited about the potential of partnering with the City of New Orleans. We believe our proposal for the redevelopment of the World Trade Center (WTC) will have a significant economic impact for the City, and bring an iconic building back into commerce. HRI has an outstanding track record of working with NOBC and staff. As you know, it is essential to know and trust your partners in any business transaction and to feel confident that your partner will deliver a wonderful project on time, especially on the eve of the Tri-centennial in 2018. We believe our proposal will exceed expectations in the areas of short and long term economic benefits to the City. We have a strong and creative commitment to workforce development. Our development teams extraordinary creativity will honor the past, present and future of the City of New Orleans. HRI respectfully suggests a confluence of compelling reasons marks HRI as the right choice and the best development partner for the renaissance of WTC.

CERTA INT Y

Selecting HRI is a decision to opt for certain success. That certainty is manifest in HRIs proven track record of success in achieving performance, partnership, product, participation and profit that benefit all of us in the community and define the exceptional qualities that set New Orleans apart. HRIs financial capacity, ability to move quickly, boots on the ground and commitment to extra steps (e.g. early demolition start prior to financial closing) to ensure the availability of the State Historic Tax Credits mark its confidence and passion.

HISTOR IC E X PER IENCE

HRI is known nationally as a leader in the adaptive re-use of historic structures having successfully completed over 70 large-scale projects with over $2 billion of development costs in its over 30-year history. HRI has developed more projects in New Orleans than any other development company. Unlike most firms, HRI believed that New Orleans could rebound after the devastating impact of Hurricane Katrina and has successfully developed 20 projects with total development costs in excess of $600 million in New Orleans since 2005. The majority of HRIs past projects involve the adaptive re-use of historic structures. Over its 30-year history, HRI has perfected the best practices for these unique historic challenges and has built its organization in New Orleans to successfully manage the historic preservation process. The WTC project is consistent with many other projects HRI has successfully developed both locally and nationally.


CURRENT C I T Y PA RTNER SH IP S

Completing this project and doing so properly requires close cooperation with NOBC and City Hall. HRI is currently working with the City of New Orleans on three important properties that have been financially successful and very transformative: (i) Hyatt French Quarter, (ii) Holmes Apartments and (iii) the Iberville Revitalization Project. All three projects have been challenging and have overcome many of the same development obstacles facing the redevelopment of the WTC. HRI has demonstrated to the City of New Orleans and its staff that HRI is diligent, fair and responsive on these three projects and NOBC can be confident that HRI will achieve the same results on WTC. HRI also has both strong relationships and a track record with (i) the City Council of New Orleans, (ii) the City Planning Department, (iii) the State Historic Preservation Office and (iv) the National Park Service, which will be important for the successful completion of the WTC project.

AUTHENT IC PL A N

One definition of success for the WTC renaissance is whether the result enhances the unique cultural heritage of New Orleans. HRI has built a national reputation for such work. HRIs development plan for the WTC will be unique and authentic to the City of New Orleans. The selection of Starwoods Luxury Collection brand gives HRI the latitude to create a project that celebrates New Orleans rich heritage and the WTCs important place in the development of the City. Guests and visitors to The Crescent will experience a uniquely New Orleans environment like no other currently in the City. They will enjoy sweeping views of the City skyline and river. They will enjoy unparalleled luxury living and accommodations in New Orleans. They can enjoy local cuisine and hospitality at both of Dickie Brennans restaurant and bar outlets. Finally, visitors and locals can enjoy the world-class visitor attraction on the 31st floor that will offer sweeping views of the city, a state of the art visual movie experience dedicated to the history of New Orleans and an innovative, interactive design experience that celebrates its 300 years of rich history.

LU XURY A ND POW ERFUL HOTEL BR A ND

Luxury Collection by Starwood Hotels and Resorts has been selected as the ideal brand given the unique layout, location and history of the building. Featuring more luxury properties than any other hotel company (90 hotels in over 30 countries), Luxury Collection by Starwood understands the allure of uncompromising style as well as its unique operational requisites in the 4-diamond/star category. Starwood Hotels & Resorts brand distribution is one of the industrys largest through global sales, central reservations, marketing and the prestigious SPG repeat guest program with 41 million members which will drive significant business to the property. HRI and Starwood did not select its five-star brand, St. Regis, for the WTC project because we felt like the market for this hotel product was too thin in New Orleans and the over $400 average hotel room rate necessary to make the St. Regis viable was unachievable given the current hotel market conditions. The Luxury Collection enables HRI to create a truly one-of-a-kind hotel property that celebrates the rich culture and history of the City. Starwood has agreed to provide key money to the project, which signifies its commitment and confidence in the success of the hotel component of the project.


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*There are no five star hotels in New Orleans. The Windsor Court and the Ritz-Carlton hotels were built as five-star hotels and both proved to be financial failures. Each of these hotels were acquired by current owners at prices well below what they cost to build. Even then, the Ritz website states that Forbes now ranks it a four star while AAA ranks it below a four diamond hotel. Windsor Court is also a four star, four diamond hotel. The city currently has no five star, five diamond hotels because the market here will not support one. We found opting for a St. Regis tempting, but realized such a choice put the success of the project at risk. Sources: http://www.ritzcarlton.com/en/Corporate/Awards/Default.htm#AAA

http://www.windsorcourthotel.com/awards


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RES IDENT I A L A ND M I X ED-USE E X PER IENCE

The residential component of the WTC project is equal in size and importance to the hotel component of the project. HRI has chosen the name The Crescent Tower for the residential component of the project. HRI has developed, owned and operated more luxury apartments in downtown New Orleans than any other competitor. In addition, HRI is the only company in the City of New Orleans that operates both a hotel and apartments in the same building or complex. HRI has successfully developed four, and currently operates three buildings that include both uses and has two additional mixed-use projects under construction. HRI has structured its hotel and apartment management company to share services between the two uses with the goal of providing outstanding services to both hotel guests and residents alike while benefitting from operational efficiencies. Over the past 30 years, HRI has refined its design and operating approach to mixing uses in a single building to ensure a successful marriage of both project components.

F INA NCI A L BENEF I T S

HRIs lease proposal is structured to pay above fair market value for the WTC property through creative revenue sharing structures that we have successfully utilized on the Hyatt French Quarter and D.H. Holmes properties in New Orleans with the Canal Street Development Corporation. Over the 99-year lease term, HRI projects that NOBC will receive nearly $1.9 billion of total lease payments including a $10 million up-front lease payment, base rent, sale participation and visitor attraction rent and percentage rent.

DBE A ND WORKFORCE DEV ELOPMENT

HRIs proposal for meaningful Disadvantaged Business Enterprise (DBE) participation goes beyond the minimum requirements in the RFP. In addition to the NOBC-required DBE participation on the project, HRIs proposal includes hiring Urban Strategies to perform HUD Section 3 type services for the WTC project that will give low-income New Orleans residents the opportunity to work on the project both during construction and upon completion. HRI has had great success on the Iberville Revitalization Project in this regard by hiring former Iberville residents and low-income New Orleanians who were previously excluded from the local workforce. HRI and Urban Strategies plan to build on their success at Iberville by expanding workforce development services for low-income New Orleanians who want to participate in the operation of The Crescent Hotel and The Crescent Tower. HRI projects that the Project will create 864 construction and 454 permanent jobs. HRI and Urban Strategies goal will be that these jobs go to New Orleanians, especially its low-income residents.

LOCA L T E AM

HRI has assembled a project team with national prominence and deep local experience to make WTC a reality. HRI operates its corporate headquarters six blocks away from the WTC site with an in house team of architects, construction managers, development and finance professionals and its hotel and apartment operational teams. HRI Lodging will manage the WTC hotel operations and is one of the 50 largest hotel management companies in the U.S. with an average experience of 25 years managing Four and Five Diamond hotels and resorts. We have selected Roy Anderson Corp Contractors, a Tutor Perini company, (RAC) to act as our general contractor for the project. HRI believes that the complexity and scale of the WTC construction project requires local knowledge with national resources. RAC brings both of these aspects to the HRI team. Dickie Brennans participation in the operating of the two food and beverage outlets will bring local cuisine and hospitality to the project. Finally, SMG will operate the world-class visior attraction on the 31st floor.


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F INA NCI A L C A PACI T Y

In April 2014, HRI Properties closed a $150 million capital facility with Almanac Realty Investors to enable the company to grow through development opportunities like WTC. HRI plans to work with Capital One Bank as its lead lender for the project, which has a major banking presence in New Orleans and the State of Louisiana. HRI plans to work with the National Trust and Stonehenge Capital to provide tax credit capital to the project. Finally, HRI will utilize its unique access to $20 million of New Markets Tax Credit (NMTC) investment authority on the WTC project. HRI has worked with all of these financial participants on similar projects to the WTC in New Orleans and nationally. HRI has the financial capacity and relationships in place to successfully finance the redevelopment of the WTC site.

PROJECT V ELOCI T Y

Because of HRIs track record, financial strength, historic experience, local team and working relationship with the City, our time frame for completion of the WTC project is fast. Unfortunately, time kills deals. Markets change, world events occur and economic uncertainty is ever present. By selecting HRI, NOBC is assured of a smooth and fast closing process that will ensure successful completion of the project prior to the Tricentennial Celebration in 2018. In addition, HRIs plan is confined to the current property owned by NOBC and does not require and land approval from any adjacent property owners, such as the New Orleans Public Belt Railroad to proceed. Such thinking highlights HRIs ability to grasp what is essential to moving a project forward, getting the job done and achieving proud success.

STATE H I STOR IC TA X CR EDI T R I SK

The current State Historic Tax Credit (SHTC) legislation expires on January 1, 2018. This credit represents over $40 million of project sources for the project. If the project fails to complete prior to this legislative expiration date and there is no extension of the SHTC program, then this critical funding source for the project will be unavailable making the project not viable. HRIs development plan eliminates this risk for NOBC by beginning demolition and abatement activities on the project in June 2015 thus giving the development team 24 months to complete the project and six months of completion time cushion, which will be required by all other financial participants in the transaction in order to close the financing on the project.

W TC GA R AGE

HRIs plan does not require the use of the existing WTC garage to move forward. HRI has designed a new garage structure on the corner of Poydras Street and Convention Center Boulevard to service the project and create a state-of-the-art meeting venue for the hotel with sweeping views of the river and access to Spanish Plaza for special events. In addition, the apartment residents will have direct access from the parking garage into the building so that they can enjoy covered access to their elevators without having to interact with hotel guests. HRIs plan gives NOBC the flexibility to repurpose the WTC garage site in order to develop the corner of Poydras and Convention Center Boulevard tp better serve the tourism needs of the City. HRIs plan also provides convenient parking access for its residents and hotel guests, which will prove important for the projects success.

Given the foregoing points and the detailed information provided in this RFP response, HRI is confident its proposal represents a compelling, lucrative and certain choice for NOBC that will be transformative for New Orleans.


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HR I HOTEL S

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INTRODUCTION

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HRI Properties, LLC, through its wholly owned subsidiary entity, Crescent Tower Partners, LLC (collectively referred to herein as HRI) is pleased to present its proposal for the redevelopment of the long vacant World Trade Center New Orleans as requested by the City of New Orleans Request For Proposal No. 8975-01775 (RFP). This iconic building located at the foot of Canal Street, represents one of the last key undeveloped buildings remaining in New Orleans. Through the vision of Mayor Landrieu and the World Trade Center selection committee, the building is poised to once again become a beacon for New Orleans ongoing renaissance. HRI will make that vision a reality by creating the finest and most exciting development of its kind in the City. Our response to the RFP is designed to meet or exceed all City requirements and reflects the over 30 years of experience HRI has in transformative historic redevelopment work in New Orleans and across the country.

We are especially excited to make the World Trade Center redevelopment a part of the citys tri-centennial celebration in 2018. HRI, a local, homegrown real estate developer with signature projects nationally, is extremely well suited to deliver this exciting project to the citizens of New Orleans. HRI employs over 1,400 employees nationally with its headquarters located right here in New Orleans, just a few blocks away from the Project. HRI is pleased and honored to have been selected to provide our thoughts and vision for the renaissance of this truly authentic New Orleans icon.

HRI will provide an important and substantial subsidy to the project by allocating National Cities Funds (an HRI affiliate) $20 million of New Markets Tax Credit (NMTC) investment authority plus $10 million of additional NMTC allocation provided through our financial partners. The proposed use of a $30 million NMTC allocation will mean almost $9 million of additional sources into the project, at no additional cost to the City. No other respondent to the RFP has NMTC allocation authority.

Starwood, one of the largest hotel companies in the world, will also provide a significant investment to the project, demonstrating their belief in the future of New Orleans, our plans for the Project and their confidence in HRI Lodgings ability to successfully operate the hotel.

HRI has the team, vision, financing, plan, experience and track record to make the renaissance of the former World Trade Center New Orleans finally a reality. Weve completed over $2 billion of difficult development projects and weve completed or have under construction six similar projects to the World Trade Center, including the 225 Baronne project just down the street. We are the team to bring this one home, for our home, New Orleans.


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V I S ION STATEMENT

HRI has assembled a world-class team of architects, designers, contractors and development professionals to create a world class project that celebrates the rich heritage of New Orleans at the World Trade Center site. Our vision for the project is to create a truly authentic New Orleans experience for local residents and worldwide tourists and business travelers to the Crescent City. Visitors today come to New Orleans because it is a great American city rich in history, culture and beauty. New Orleans is unmatched globally in delivering a unique and authentic experience. In response to visitors demands for authenticity, HRI has chosen to name its project The Crescent, which celebrates the rich history of the city and the Projects location along the Mississippi River. The hotel will be named The Crescent, a Luxury Collection Hotel by Starwood, New Orleans. The apartment component will be named The Crescent Tower. The restaurant and bar operation located on both the ground floor and the 33rd floor will be operated by Dickie Brennan & Company. The world-class visitors attraction named The New Orleans Experience will be located on the 31st floor and be operated by SMG.

The Crescent Hotel and Crescent Tower Project will offer a signature experience for hotel guests and its residents. The vacant building will be transformed into a Luxury Collection hotel by Starwood and luxury apartments, both with sweeping views of the majestic Mississippi River, the historic French Quarter, the downtown skyline of the Central Business District and Lake Pontchartrain. Residents and hotel guests will enjoy exclusive views and access to the Spanish Plaza and its unmatched riverside location. The truly unique and authentic visitor attraction will be located on the 31st floor of the building and include a new observation deck experience, a world-class history museum and a film dedicated to the 300-year history of New Orleans and its important role in the development of the United States. HRI, its development partners and design professionals have spent thousands of hours putting together a plan that is not only awe-inspiring but one that is real, achievable and a plan we believe, is compelling. We hope you agree!


MI X ED-USE TR ACK R ECORD OF HR I

Since 1982, HRI has been undertaking some of the most difficult redevelopment projects nationwide. HRIs unique expertise in the financing and development of historic buildings has made the company one of the nations most successful historic developers. HRIs team has completed dozens of adaptive re-use projects where previous teams had failed. Some projects of note are listed below:

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225 BARONNE NEW ORLEANS

After sitting vacant for nearly a decade, HRI was able to derive a creative parking solution for the building where numerous local and national developers had failed in the past. HRI closed financing of the redevelopment in Q4 2013 with construction to be completed by Q2 2015.

AFTER BEFORE

BEFORE

LTV TOWER DALLAS

After two failed attempts by local developers to redevelop this 1960s office tower, HRI worked closely with the City of Dallas and the FDIC to close financing for this $100 million development creating a better-than-brand Hilton Garden Inn and luxury apartments, with self-contained parking for 350 vehicles inside the historic tower. The building was purchased April 2014, and construction began the following day. The project is under construction and set to be complete in the fall of 2015.


1.

AFTER BEFORE

KING EDWARD HOTEL JACKSON, MS

The King Edward Hotel had been vacant for 40 years before HRI redeveloped the building, which opened again in 2010. HRI worked collaboratively with the City of Jackson, MS and the State of Mississippi to finance a world class project in downtown Jackson, MS helping to reinvigorate the entire downtown.


RENAISSANCE GRAND HOTEL ST. LOUIS, MO

HRI and the City of St. Louis worked together to create an 1,083 room convention hotel utilizing two historic structures plus a new-build component. The $300 million project opened in 2003 as a Marriott Renaissance.

AFTER

AFTER

BEFORE

BEFORE

HIBERNIA TOWER NEW ORLEANS

After being vacated by Capital One, the upper floors of the building sat vacant for years. Many local developers attempted to redevelop the building with no success. HRI used its financing and architectural expertise to breathe life back into the building, creating 175 luxury apartments, HRIs new corporate office, third party office tenants and a parking garage, in addition to retaining Capital Ones historic main branch in New Orleans, the former Hibernia National Bank main office. The project was completed in 2012.

TO THE RIGHT

are examples of

buildings bought

speculatively that still

sit vacant, despite

numerous changes in

ownership. HRIs history

is to purchase a building

and begin construction

immediately, often

the day after financial

closing.

PLAZA TOWER JUNG HOTEL SANLIN


right HIBERNIA TOWER


SECTION


TA B L E O F C O N T E N T S

A.DEVELOPMENTPLAN 26

1. Description of the proposed development plan

2. Detailed plans for the project

3. Detailed operational and management plan

B.PROJECTDESIGN 42

1. Sketch plan of the site

2. Site plan

3. Large scale elevations and perspectives

C.DEVELOPMENTTEAM 78

1. Contact and Development Team

2. Evidence of commitments

3. Pending and past litigation

D.FINANCIALARRANGEMENTSANDFUNDINGSOURCES 134

1. Proposed capital structure

2. Completed and in-process projects since 2010

3. Identity of the proposed guarantor

4. Proposed development budget

5. Correspondence - qualified surety company

6. Estimate of project employment

7. Plan for Orleans Parish/local business participation

E.FINANCIALANDLEASETERMS 144

F.DISADVANTAGEDBUSINESSENTERPRISES(DBE)PARTICIPATION 146

DBE goal of 35%

DBE participation plan (Attachment C)

G.OTHERREQUIREMENTS 162

1. Changes from the RFQ

2. Required Documents:

Conflict of Interest Disclosure

Veracity Statement

APPENDIX 166

TA B L E O F C O N T E N T S

1.

leftKINGEDWARDHOTELJACKSON,MS


SECTION


D E V E L O P M E N T P L A N

a. Provide a description of the proposed development plan and development schedule, highlighting any changes to the plan and schedule included in your response to the RFQ, and describe how the proposed plan will generate maximum financial, economic and social benefits, including community benefits. In addition to projected dates for construction start and project completion, the development schedule should include other key milestones, including commencement and completion of the design process, financing, and operational stabilization. Any contingencies that may affect this timeline should be included, together with a plan to mitigate any such contingencies. D E V E L O P M E N T P L A Na.QUESTION 1

DEVELOPMENT PLAN

DESCR IP T ION OF THE PROPOSED R EDEV ELOPMENT PL A N

HRI proposes to redevelop the World Trade Center (WTC) building into a full-service Luxury Collection hotel by Starwood and luxury residential apartments (HRIs RFQ response proposed a Hyatt Andaz, but the Starwood Luxury Collection flag became available when the group proposing a W hotel, also by Starwood, did not advance in the RFQ stage). The hotel will be called The Crescent, a Luxury Collection Hotel and The Crescent Tower. The project will include 309 hotel rooms on floors one through thirteen (increased from 250 rooms in the RFQ), 16,174 square feet of meeting space, nearly 3,000 square feet of commercial space plus 261 luxury apartments on floors fourteen through thirty (295 in the RFQ). A new structure located adjacent to the historic tower will include parking for 336 vehicles, including charging stations for electric vehicles, a new, column-free 5,600-square-foot ballroom on the third level and a rooftop pool/amenity deck on the rooftop.

The former Plimsoll Club located on the 30th floor will become luxury apartments with sweeping views of the river, French Quarter, Algiers Point, Warehouse District and the Central Business District through large, unobstructed floor-to-ceiling windows and eighteen-foot ceiling heights. Given current life safety codes, the total capacity for the Plimsoll Club would have to be restricted to 300 people (including employees). This constraint made its re-use as an event space not viable. The former Top of the Trade Mart space on the 33rd floor will be transformed into an upscale champagne and craft cocktail bar operated by Dickie Brennan & Company. The revolving floor mechanism will be repaired so residents, hotel guests, tourists and locals will once again be able to enjoy 360-degree views of the City. HRI will work closely with its design team to maximize the impact of this space.

Spanish Plaza will be better integrated into the WTC site via a monumental staircase from the third floor balcony at the WTC, connecting the newly constructed meeting space, which overlooks Spanish Plaza. This new additional connection to Spanish Plaza can be enjoyed by hotel guests and the residents of the building in addition to a new access point to the plaza for the neighborhood. Additional foot traffic in the plaza should drive demand for new events and retail, driving additional economics for the City.

On the 31st floor, visitors to New Orleans and local residents will be able to enjoy an authentic New Orleans experience including an inspiring movie about the history of New Orleans along with a state of the art audio visual experience and an observation deck to enjoy unobstructed, 360-degree views of the City. We believe this new experience will capture its fair share of visitors and locals and be among the top visitor attractions in the City, along with the Audubon Zoo, The National WWII Museum, Aquarium of the Americas and the Insectarium. SMG will operate the attraction, which will be concepted by Unified Field, who created many of the World War II museum attractions. The new attraction will also be utilized after hours as a venue for private events, economic development activities, convention center and tourism marketing events that may include audio-visual presentations on the venues two-story movie screens with access to the observation deck featuring the port, downtown, Lake Pontchartrain and a great view of much of Orleans Parish. HRI proposes that the City will financially participate in the success of the venue through an attractive profit-sharing agreement. Based on our analysis with SMG, we believe the venue can generate $10 million per year in annual revenues with the City receiving $2.5 million in visitor attraction rent in additional annual rent from the venue.

BATCH BAR - HYATT FQ



QUESTION 1

RENAISSANCE ST. LOUIS

DEVELOPMENT SCHEDULE HRI will start interior demolition shortly after executing the lease with construction starting upon financial closing, which is expected in December 2015. Construction is anticipated to take approximately 18 months to complete. This schedule is revised from the RFQ in that it starts demolition immediately, thereby completing construction earlier. HRI believes completing the project in July 2017, well ahead of the sunsetting of the state historic tax credit program in January 2018, is critical to attracting lenders and historic tax credit investors to the project. HRI proposes to fund 100% of the early demolition work, at HRIs own risk, to start within 60 days of signing the lease, subject to receiving a demolition permit from the City. A detailed construction schedule provided by Roy Anderson is provided on page 77.

CONT INGENCIE S

In addition to the 60 day financing contigency called out in the RFP, HRI proposes two contingencies to the transaction, (i) the approval of the plans and specifications by the City of New Orleans and (ii) historic approvals (State Historic Preservation Office and the National Park Service) necessary to secure the tax credits for the project. HRI has a long and successful track record of managing this approval process through careful design and working closely with our historic consultants. We have allowed a five-month contingency period in our schedule to have a temporary certificate of occupancy well before the sunset of the state historic tax credit program. We believe, based on our 30+ years of experience, that we are well-positioned to secure all necessary tax credit approvals and complete the project well before the end of 2017.

HRI is confident that it will obtain approval of its plans by City of New Orleans Planning Department through the conditional use process, which is required for this project. Having completed over 50 projects locally, we are confident that we can proceed expeditiously through the various City approval processes. HRI has allowed time in its schedule to deal with reasonable unforeseen events.

DATE MILESTONE

JANUARY 2015 > Architectural schematic design begins

MARCH 2015 > HRI selected to begin negotiating lease

APRIL 2015 > HRI and City execute lease

MAY 2015 > Interior design process begins

JUNE 2015 > Interior demolition begins

NOVEMBER 2015 > National Park Service Part 2 approval > Architectural and Interior Design plans approved by Starwood > Building permit issued

DECEMBER 2015 > Financial closing > Construction commences

JULY 2017 > Construction complete > Hotel and apartments open

JULY 2019 > Operational Stabilization


SECTION


Provide detailed plans for the Project, including plans for services, amenities and securing adequate parking and access. If parking is not requested in the Parking Facility, indicate how parking needs will be addressed. If the respondent desires to obtain parking at the Parking Facility, an acknowledgment of agreement to the Parking Agreement must be included, or a markup of any comments to the Parking Agreement must be submitted.


QUESTION 2

K EY F E ATURES

> $267MM MIXED-USE PROJECT funded with all private capital and requiring no subsidies from the City of New Orleans

> 454 NEW FULL AND PART-TIME JOBS CREATED

> 309-ROOM LUXURY COLLECTION HOTEL by Starwood with over 16,000 square feet of meeting space, a separate rooftop pool, fitness center and spa for hotel guests, overlooking the Mississippi River.

> 261 LUXURY RESIDENTIAL UNITS with high ceilings, high-end appliances, stunning views and wonderful amenities, including fitness center, rooftop pool on the 32nd floor reserved for residents only, with access to the hotel services.

> 336-SPACE PARKING GARAGE with ground floor retail space located on the corner of Poydras Street and Convention Center Boulevard and direct access into the WTC building.

> RESTAURANT AND 33RD FLOOR REVOLVING BAR/RESTAURANT. A ground floor restaurant with outdoor dining and a 33rd floor revolving bar and restaurant featuring champagne and craft cocktails with a 360-degree view of the city, both designed and operated by New Orleans own DICKIE BRENNAN & COMPANY.

> VISITOR ATTRACTION Our vision for the 31st floor is to create a world-class visitor attraction including two immersion theaters showing a specially produced synoptical film of the 300-year history of New Orleans. It will be complete with curated displays and explanatory signage integrated with actual views from a newly created observation deck and a gift shop plus rentable event space. This world-class visitor attraction will be named The New Orleans Experience. SMG with operate the attraction and estimates 500,000 annual visitors generating $10 million in revenue.

Please see Section B for our full site plans and renderings.

33RD FLOOR DICKIE BRENNAN RESTAURANT31ST FLOOR VIEW


QUESTION 2

THE CR ESCENT TOW ER LU XURY A PA RTMENTS

The best amenity of the Crescent is its bold and dominating world-class location at the edge of the Mississippi River and in between everything vibrant in the City. This 261 luxury residential building offers a luxurious lifestyle opportunity that will be the first and only one of its kind in New Orleans. Developed by the premier mixed-use developer in New Orleans, HRI Properties, The Crescent will offer a 24hr lifestyle of luxury hotel rooms, luxury residential apartments and world class restaurants and attractions; all in one building.

As property manager for the Crescent Tower, HRI Management will lease and maintain the spacious 114 one bedroom, 139 two bedroom apartments and the 8 two bedroom penthouse suites for the property owner and the residents. The customer service levels and property finishes at Crescent Towers will exceed all reasonable expectations.

The Crescent Lifestyle experience will include:

PROPERT Y A MEN I T I E S

Luxury Penthouses and Apartments with breathtaking views high above the Mississippi River starting 14 floors above the City

309 Room Starwood Luxury Brand Hotel its services as a lower floor amenity

Exclusive 32 Floor Rooftop pool and fitness center with breathtaking views

Reserved garage parking attached and valet services available

Elevator ride up or down to world famous Brennan family restaurants located on the top of the tower and at ground level

Walk to the French Quarter, Shops at Canal Place, restaurants and bars

Private access elevator lobby with visitor call box

Pet friendly

24 hr on-site management and maintenance staff

UN I T A MEN I T I E S

GE Profile Stainless steel appliances

Mannington Engineered Wood floors

Contemporary Wood Cabinets

Ceasarstone Quartz Countertops

Marrazi Quartz kitchen and bath surfaces

Moen & Kohler Fixtures

Washer/dryer included in every apartment

Blazing fast internet and TV options

THE CRESCENT HOTEL NEW ORLE ANS

The Crescent Hotel New Orleans, A Luxury Collection Hotel by Starwood will house 309 guest rooms, including 17 Junior Suites. Included, we will have 15 Upscale, One-of -a -Kind Luxurious Suites to include butler services. The hotel will occupy floors 4 through 13 of the former World Trade Center and will be surrounded by top of the line apartment units, dinning and retail outlets. The hotel will have 21,419 sq. ft. of meeting space available for group meetings and social events. As part of the Starwood Family, we will offer our corporate clientele amenities such as a Club Lounge, Business Center and a Sundry area available 24 hours a day. Additional offerings will be a 1,750 sq. ft. Fitness Center and 3,300 sq. ft. Spa on the 9th floor to include an 800 sq. ft. Childrens Club.

HRI Lodging will operate the hotel with best-in-class employees and business practices, with a goal of exceeding guest, brand, and owner expectations. Our mission will be to surround the guest with luxury and comfort and to provide true Southern and New Orleans hospitality. The hotel will have the best views in the city and our accommodations will feature luxury services, amenities and comfort.


SECTION


A NARRATIVE BY R ICHARD CAMPANELLA

Every great city ought to have an observation deck. Prior generations visited the Hibernia Bank tower (1923) to see New Orleans from above. After that observation deck closed in the 1960s, people ascended the International Trade Mart (todays WTC) and enjoyed the views from its famous rotating bar but since that facility closed in the early 2000s, only guests and workers in certain downtown high-rises are privy to spectacular vistas of New Orleans.

Our vision for the 31st floor aims to give New Orleans the lofty public observation deck it deserves and more.

Here, visitors and locals alike will find a destination where unparalleled (and unobstructed) vistas of both banksplus nearly all metropolitan neighborhoods, not to mention the river, lake, and surrounding wetlandsmay be enjoyed from a single point.

The horizon views offer a unique opportunity for interpreting the history and geography of our city. Our vision takes maximal advantage of this one-of-a-kind perch through three types of interrelated programming: (1) two immersion theaters showing a specially produced synoptical film of the 300-year history of New Orleans; (2) curated displays and explanatory signage integrated with actual views, so that visitors may learn, see, and orient themselves (indoors and outdoors) amid a curvaceous metropolis that oftentimes perplexes newcomers; and (3) gift shop.

The result will be a new must activity for the visitor, on par with a streetcar ride and the ferry to Algiers, as well as a destination for historical and cultural education and an outing for local school children.

VIS ITOR ATTRACTION THE NEW ORLE ANS E X PER IENCE

DESCRIPTION

The new Visitors Attraction at the top of The Crescent Tower will be a must see destination for anyone visiting the city. Like The New York Experience, which was the longest-running commercial multimedia show in history seen by millions of people over its 15-year span, the New Orleans Experience will be a 21st century multi-purpose visitor center serving multiple audiences from tourists to business people, to economic development professionals and investors.

At the New Orleans Experience, visitors to the city will get a multimedia experience of the vibrant culture of New Orleans, its local celebrities and characters, contemporary and historical, and a taste of the flavors, food, arts, events and music of the city.

Using different exhibition techniques from large-scale indoor and outdoor displays, to mobile devices, gesture-based media environments, real-time visualizations, websites and mobile apps, and a combination of theatrical media presentation and physical artifacts, we will offer a breathtaking panoramic view of New Orleans, over time, space and place.

The New Orleans Experience will also give visitors an understanding of the city through different eyes, like those of a native, by revealing the hidden patterns of the city and capturing its essence. HRI has budgeted $5 million to create The New Orleans Experience.

CONTENT

In addition to themes mentioned previously, the experience will also cover the ongoing revitalization of New Orleans and new developments (which could include the story of the storms, live updates of personal narratives and experiences, and the citys resiliency plans in action). For the different functions for the center, content will be fed from a robust and flexible technology platform, content resource and display system.

Content can be a combination of original content, live data feeds, and sourced from different resources including local institutions, dedicated social media apps and promotional programming. Original content made for the center can be digital videos, audio, interactive media and large-scale displays. In addition we will also provide a robust multi-channel digital content management system to dynamically manage content from on-floor experiences to online, mobile and social media applications.

REVENUE

There are several revenue streams from entrance fees, to event rentals and special events such as corporate and institutional presentations. In addition, different forms of licensing will be explored. For example, for the economic development and investor audience, The New Orleans Experience will provide a paid event forum for presentations of upcoming initiatives, research, product and urban development announcements. SMG estimates the New Orleans Experience will host 500,000 visitors annually and generate over $10 million of revenue annually.

NEW ORLEANS VIEW OVER THE MISSISSIPPI RIVER

a.


SECTION



QUESTION 2

DICK IE BR ENNAN S LOBBY R E STAUR ANT & BA R

The overall concept of the lobby floor restaurant is an upscale casual restaurant/bar with an approachable menu. The menu will feature local cuisine, for which the Dickie Brennan brand is noted, with a straightforward yet sophisticated presentation. Equal attention will be paid to the specialty cocktails and extensive wine and champagne list, including wines on tap. The price point will be on the fine dining spectrum with a per-person average of approximately $60 for dinner.

The first floor will include a covered outdoor dining area, partially enclosed by a wall that showcases a water feature on the interior and a large painted mural with the name of the restaurant and the theater attraction, reminiscent of vintage advertising on brick facades, on the exterior. The water feature will represent Louisianas natural coastline by using oyster shells or tiles as the fountain wall. This feature will also cut down on the street noise and provide additional space for tasteful advertisements to be seen from the nearby buildings and streets.

The outside bar and dining area will offer the complete menu from the restaurant, as well as a selection of small plates, thereby accommodating and attracting guests looking for a leisurely bite and libation during non-traditional dining periods. Also, for lunch this area will be popular with local professionals, offering lunch entres, upscale sandwiches and salads at attractive price points. The outside area can accommodate approximately 175 at one seating. We will offer a walk-up bar for to-go orders for those looking to take their meal on the go to the nearby Spanish Plaza.

The inviting main dining room will have the same menus as its outdoor counterpart, but will be slightly more formal, yet never intimidating. Professional kitchens are something to behold and this will be no different, with large picture windows from the dining room looking into the action of the chefs at work. The restaurant will have a feature wall and lighting that incorporates a maritime theme that is congruent to the location of the restaurant. The color scheme of the restaurant consists of blues, whites, light yellows, natural anchor rope and dark bargeboard woods. The indoor main dining room will seat approximately 110 guests at any one time.

Accessible from the lobby and a covered outside staircase will be a second floor bar with a focus on small plates and upscale drink options. The area will seat 105 guests and will have a similar feel to the downstairs outdoor area, but will cater more to libations for those from the hotel as well as locals looking for a great drink in a comfortable/upscale atmosphere.


a.QUESTION 2


SECTION



QUESTION 2

DICK IE BR ENNAN S CH AMPAGNE BA R

The 33rd floor is the crown jewel of The Crescent and will feature a sophisticated bar and lounge with the best panoramic views in the city. The atmosphere will be upbeat and festive and will attract guests looking for a beautiful place to soak in a sunset as well as those looking for a late night place to enjoy a drink and a view of the lights from the Crescent City. There will be a large selection of champagne and sparkling wine to complement the spectacular 360 degree view. Careful attention will be paid to the wine selection along with a thoughtfully curated cocktail list. Small plates will be offered and the overall feel is one that entices guests to stay and order multiple drinks. The area will be able to accommodate approximately 150 people at any one time.


a.QUESTION 2

WORLD TRADE CENTER

NEW ORLEANS

DOWNTOWN PA RK ING / R ETA IL

All of the projects parking demand will be serviced by a modern 336-space parking garage to be constructed on-site on the up-river side of the building. This state of the art garage will also house a column-free, 5,600 square foot ballroom on the third level which will be connected to the historic tower where the remainder of the meeting space will be located. This third-floor location will afford spectacular views of the river from both the pre-function space adjacent to the ballroom and also around the historic towers third-floor balcony, which wraps around the whole building on the ground floor. Nearly 3,000 square-feet of retail space will be constructed, activating the streetscape for pedestrians and creating an attractive facade at a highly visible intersection.

Our parking solution for the project was the result of an extensive analysis of the existing World Trade Center tower to determine if parking could be made to work within the existing footprint of the building, which is our preferred approach. Given the small footprint of the tower, providing new vehicle ramps within the building was inefficient and not feasible. The existing World Trade Center garage was simply too remote from the building to satisfy the needs of our future residential tenants. Having utilized automobile lifts on an earlier project and witnessed the extreme wait times for parking and retrieving vehicles, not to mention the potentially catastrophic consequences of an equipment failure, it was obvious that constructing a new stand-alone parking garage was the only reasonable solution to the long-term parking needs of the project.


SECTION


Include a detailed operational and management plan, including letters of commitment from proposed operators and the selected hotel flag and/or property managers for each component of the Project, stating their availability and commitment to the Project. Viewed more favorably with respect to this component will be letters showing a greater level of commitment from the proposed flag and/or manager.


QUESTION 3

OPERATIONAL & MANAGEMENT PLAN

The leadership and staff from HRI Lodging (HRIL) and HRI Management (HRIM) will work very closely with the development team and architects from HCI Architecture (HCIA) to design, coordinate and operate The Crescent. This internal coordination and operational cooperation will result in a well-thought-out project that operates efficiently and seamlessly once completed. HRI delivers this unique mixed-use capability along with a 30-year track record of similar, successful projects.

HOTEL OPER ATOR

HRIL, an approved operator for Starwood, has a deep and local operational team with strong luxury hotel experience. HRI will work closely with Starwood throughout the pre-development and development phase to ensure the project meets the very high standards of the Luxury Collection brand. The hotel management function will be provided by HRIL. Starwood has provided its term sheet for the franchising of the Luxury Collection flag, its luxury lifestyle hotel flag, as set forth in the attached letter. HRI believes the Luxury Collection flag is compelling for the WTC project based on its luxury lifestyle focus, strong Starwood reservation system, Starwood Preferred Guest loyalty program that targets higher end groups and transient guests, a market segment which is currently under served in the New Orleans market.

HRIL operates 17 hotels outside of New Orleans, including both branded and independent luxury, full service and select service hotels for HRI and third-party owners. HRIs management profile includes five hotels in New Orleans, including the Hyatt French Quarter, Hyatt Place Convention Center, Hilton Garden Inn French Quarter/CBD, the Federal City Inn & Suites andthe Aloft New Orleans Downtown. Our third-party owners include high net worth individuals, private equity funds and public REITs.

CASA MADRONA, HRIL MANAGED AAA 4 DIAMOND HOTEL

HRIS OPERATING MODEL IS UNIQUE BECAUSE IT IS ONE OF

A FEW FIRMS NATIONALLY THAT IS CAPABLE OF OPERATING

BOTH HOTELS AND APARTMENTS IN THE SAME BUILDING.


a.QUESTION 3


SECTION


RES IDENT I A L M ANAGER

HRIM will operate the residential component of the project. HRIM operates 42 multifamily developments with 4,300 apartment units in New Orleans, LA, Jackson, MS, Richmond, VA, Shreveport, LA, Lafayette, LA, Hammond, LA, New Iberia, LA, Houma, LA, St. Louis, MO and Winston-Salem, NC. HRIMs signature projects include the Hibernia Tower, King Edward and Standard Life apartments and the soon-to-be completed Strand Apartments (225 Baronne) and the LTV Tower apartments which will be completed in the third quarter of 2015. HRIM also operates the D.H. Holmes apartments, currently undergoing a major renovation, in the historic French Quarter.

RESIDENTIAL MANAGERHRIM LE T TER OF COMMITMENT AND STATEMENT OF AVAILABILIT Y

RESTAUR ANT OPER ATOR

Dickie Brennan & Company will assist in the design and will operate the hotel restaurant and 33rd floor bar. The Brennan family is well-known throughout the nation and certainly among locals as some of the finest restaurant operators in the business. We are pleased have them as part of our team.

V I S I TOR AT TR ACT ION OPER ATOR

SMG, founded in 1977, operates the Mercedes-Benz Superdome and Smoothie King Center locally and operates stadiums, convention centers, performing arts theaters, recreational and equestrian centers totaling more than 1.5 million seats. SMG will operate the new visitor attraction on the 31st floor of the building. HRI is excited about opening this new exciting attraction with a world-class operator.

Other HRI affiliates, HCIA with HCID, will serve as the projects architect of record. HCID employs 16 architects, 14 of which are located in New Orleans. HCI Construction will provide construction management services to the Project.


QUESTION 3

HOTEL F L AG

Starwood Hotels, one of the largest hotel brands in the world, with over 1,200 properties in over 100 countries, has provided its term sheet for a Luxury Collection franchise for the project. HRI currently has another Starwood hotel, an Aloft, under construction in New Orleans and has a great working relationship with the brand. Senior executives from Starwood have visited the site and top management is engaged in the transaction.

STAR WOOD LE T TER OF COMMITMENT

February 11, 2015

By email to: [email protected]

HRI Properties Mr. Gary Gutierrez 812 Gravier St., Suite 200 New Orleans, LA 70112

David Aupied SENIOR DIRECTOR OF DEVELOPMENT

GLOBAL DEVELOPMENT GROUP T (985) 626-7237 C (504) 400-7292

E [email protected] 367 Red Maple Dr.

Mandeville, LA 70448

RE: Proposed Luxury Collection Hotel in New Orleans, LA World Trade Center Dear Mr. Gutierrez, I am writing on behalf of Starwood Hotels and Resorts (we,us,our) regarding the proposed development of a Luxury Collection Hotel by HRI Properties (owner) to be located in New Orleans, LA (the project). Based on our understanding of the market and the description of the project, we are pleased to express our interest in exploring this opportunity further with HRI Properties.

We look forward to working with HRI Properties and HRI Lodging to develop the hotel within the Luxury Collection brand standards. Please note that this letter is only an expression of our interest to further evaluate this opportunity and does not create any legally binding obligation on Starwood Hotels & Resorts. Final approval is subject the sole discretion of our Global Development Committee and the owner should not rely on this letter, or any further discussions regarding this potential transaction as an agreement, offer or commitment by Starwood Hotels and Resorts to enter into any transaction with respect to the project.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 1,200 properties in 100 countries and 181,400 employees at its owned and managed properties. Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences with the following internationally renowned brands: St. Regis, The Luxury Collection, W, Westin, Le Mridien, Sheraton, Four Points by Sheraton, Aloft, and Element. The Company boasts one of the industrys leading loyalty programs, Starwood Preferred Guest (SPG), allowing members to earn and redeem points for room stays, room upgrades and flights, with no blackout dates.

Gary, we are extremely excited about the opportunity to be part of this amazing project. We think A Starwood Luxury Collection Hotel is the perfect fit for the transformation of the World Trade Center in New Orleans. We have 100% confidence in your teams ability to see this project through from start to finish. Should you have any questions or wish to discuss this project further, please do not hesitate to contact me directly at 985-626-7237. We look forward to working with you on this opportunity.

Sincerely,

David Aupied Senior Director of Development Cc: Chip Ohlsson Vice President, Development


a.QUESTION 3

L E A SE NEGOT I AT IONS

HRI has extensive experience in negotiating long-term lease structures in publicprivate ventures and anticipates being able to work with the City of New Orleans and its representatives to structure a market rate/term lease for the building. Examples include the successful lease restructuring for the Hyatt French Quarter and D.H. Holmes Apartments projects, which successfully closed in 2012 and 2014, respectively. HRI has provided minimal comments to the draft lease form provided by the City and anticipates executing the lease by the April 30, 2015 deadline. All of HRIs proposed changes to the legal aspects of the proposed lease were intended to make the WTC lease generally consistent with the terms already accepted by the City and HRI on existing leases between the parties. Please see Section E of this document for more specifics.


SECTION


P R O J E C T D E S I G N

b.P R O J E C T D E S I G N

b.Provide, at a minimum, a sketch plan of the site, showing the proposed development. Concept plans should include site layout with a minimum of one hundred feet of context beyond the site boundary (scale 1 = 100), building and unit configuration, including types of uses and square footages, floor plans and quality of materials. NOBC would prefer to see detailed architectural drawings for each floor of the building. If the proposal includes the construction of an additional structure, then NOBC would prefer to see a detailed analysis of the structure, the current zoning and other restrictions affecting the new building, as well as a separate timeline detailing the construction period for the proposed new structure.

QUESTION 1

Provide a site plan with dimensions, first grade level floor plan, typical upper grade floor plans, sample elevations that capture the projects location, character, typical sections with floor-to-floor height indicated, and any other drawings, together with accompanying presentation materials that the developer feels would clarify the development concept. Include seven (7) illustrative three dimensional renderings of concept design.

QUESTION 2

Provide large scale elevations and perspectives depicting how building(s) will look from pedestrian approach (scale to vary from 1/16 to 1/32 per foot) should be provided. At a minimum, perspectives from the approaches from Canal and Poydras Streets will be beneficial in demonstrating the impact the proposed project will have from these view corridors. In addition, provide large scale sections of relevant public private spaces and how these spaces will connect to the exterior.

QUESTION 3

All plans which are submitted as part of the Project Design portion of the RFP should be submitted in an electronic format which allows the Selection Committee to examine them to actual scale digitally.

QUESTION 4


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HCI Architectures design concept adeptly repurposes the landmark historic International Trade Mart office building for mixed-use occupancy. The projects prominent site at the confluence of two major thoroughfares directs a solution to supplement the existing tower with two new focal point additions at the ends of both Canal and Poydras streets. The historic buildings tripartite design will be divided by locating hotel functions at its base while efficiently repurposing its mid-section as livable residential apartments and locating public amenity attractions in the crown of the original structure. The complex mix of uses and program creates challenges for vertical transportation; however, existing elevators are organized to facilitate the different functions attracting both tourists and local residents.

A new access structure, designed to complement the historic tower, takes advantage of the sites prominent location by terminating the approaching lane of Canal Street with a landmark pedestrian feature in the form of a curved, open stairway which invites the public up its steps to a second floor bar enabling views down Canal street. A curved stair above connects to a third floor deck with vistas of the Mississippi river and to the original buildings third floor walkway leading back down to Spanish plaza and the riverfront. This additions horizontal orientation contrasts the verticality of historic tower but incorporates curves recalling the circular elements of its rotating cocktail lounge, adjacent Spanish Plaza fountain and the Rivers curve. The curvaceous new stairways base is centered in a void between wings of the original building and surrounded by a landscaped Plaza with site furnishings to animate the space and allow use as an outdoor dining area to reinforce Convention Center Blvd. as a pedestrian corridor.

Reinventing the original buildings Lobby as Hotel Lobby separates the newly hardscaped plaza from an opposing void on the South side of that wing which becomes the location for the vehicular drop off and porte-cochere. Vehicular entry is framed by a new precast concrete parking structure at the corner of Convention Center Boulevard and Poydras Streets. The new structure not only brings parking in proximity to the new uses but also incorporates retail, hotel ballrooms and amenity uses. Its ground floor level features sheltered sidewalks and transparent storefront to engage the building with the streetscape and enhance walkability at sidewalk level. The retail presence at the corner promotes the sites connection to the Riverwalk beyond. The structures facade of laser cut metal screens reference the shading devices and perforated canopy design features of the existing building in contemporary construction techniques. While Its Crescent shaped corner recalls the elevation of the original, 1948 International Trade Mart building. This vertical place marker and video screen incorporated in building cladding will activate the prominent open space at the end of Poydras street.

PROJECT DES IGN


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INSP IRATION FOR NEW CRESCENT GARAGE

Both new additions are held away at distances to provide a physical separation respecting the historic tower. New addition elevations emphasize horizontal elements and organic curves to also provide visual differentiation. Materials for new construction including concrete, stucco, glass and aluminum reference materials used on the original building but are finished in tones of grey different from Edward Durell Stones Modern icon. This design approach will be developed into a final solution allowing the 1960s era skyscraper of New Formalist style to integrate with contemporary additions resulting in a pleasing and functional design complementing its vibrant new uses.


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