Florida Hospitality Industry Florida Hospitality Industry Statement of Qualifications
Table of Contents I. Paradigm Tax Group.. 3 II. Market Distinctions 4 III. Property Tax Offices.. 5 IV. Hospitality Scope of Services... 6 V. Critical Dates in Florida. 7 VI. Recent Florida Hospitality Results... 8 VII. National Hospitality Clients... 11 VIII. Team Resumes.. 12 IX. Contact Information. 16 2
Who is Paradigm Tax Group? Paradigm Tax Group is the fastest growing, highly successful property tax consulting firm in the USA. We were formerly the National Tax Practice of accounting giant KPMG, LLP. On November 22, 2004, the oldest most established Big Four property tax practice became the newest national property tax firm. Since our formation we have expanded the practice significantly, adding offices and professionals to provide the most thorough local coverage in the industry. 3
Market Distinctions Unique Business Model 200+ years of local jurisdiction assessment knowledge and experience coupled with; 200+ years of hospitality industry knowledge and experience Industry Expertise + Local Relationships = Optimal Representation Unparalleled Hospitality Industry Expertise Knowledge of assets developed from, in-house experience with world-wide industry leaders, former state & local officials and years of negotiations with state & local personnel on appeals and proactive solutions Specifically Trained Full Time Professionals Hospitality professionals focused on cutting edge services and out-of-the- of the box solutions 4
Property Tax Offices NJ Paradigm s Hospitality Practice is headquartered out of our Washington, D.C. office North Florida properties are handled out of Paradigm s Atlanta, GA office. South Florida properties are handled out of Paradigm s Fort Lauderdale, FL office. Atlanta Dallas Indianapolis Phoenix San Jose Austin Denver Kansas City Pittsburgh Seattle Boston Detroit Minneapolis San Antonio Simi Valley Buffalo Ft. Lauderdale Orange County San Diego St. Louis Chicago Honolulu Philadelphia San Francisco Washington DC Cleveland Houston 5
Hospitality Scope of Services Transaction Services Deal Pricing Analysis (DPA Reports for deal closings and deed recordation) Real Estate Transfer Tax Refund Applications within 4 years of deal closing Pre-Acquisition Property Tax Due Diligence Advice Pro Active Assessment Negotiation Cash management tool Traditional Reactive Appeal Representation Assessor, Local Board and State Board Representation Litigation Management Services Assistance with attorney and expert witness selection and case management 6
Critical Dates in Florida July 1 - Tax Roll Approval by Dept. of Revenue August - Assessment Notices Mailed TRIM notices begin mailing the first week of August for North Florida Counties and continue until the third week in August for South Florida Counties. September - Appeal Filing Deadline Taxpayers have 25 days from the date of the TRIM notice to file appeals with the Value Adjustment Board. It is possible to have an August deadline if the county mailed the notice within the first few days of the month, but it is very rare. November 1 - Tax Bills Mailed Or next business day. Early payment discounts are available. January 1 Personal Property Assessment (Situs) Date March 31 - Tax Bills Payment Due Date Delinquent thereafter. 7
Recent Florida Hospitality Results Real Estate Tax Savings Examples Full Service Hotel Duval County, FL Prior Value of $17.40 M Reduced to $14.00 M Reduction of $3.40 M Tax Savings of $56,774 Economy Hotel Orange County, FL Prior Value of $9.01 M Reduced to $6.50 M Reduction of $2.51 M Tax Savings of $47,411 8
Recent Florida Hospitality Results (cont.) Personal Property Tax Savings Example Doral Country Club Miami, FL Tax Year Prior Value Final Value Reduction of Millage Rate Tax Savings 2004 $12,715,947 $9,321,313 $3,394,634 0.0216807 $73,598 2005 $12,659,978 $9,893,885 $2,766,093 0.0213163 $58,963 2006 $13,612,688 $9,266,280 $4,346,408 0.0207468 $86,567 2007 $15,911,850 $9,374,000 $6,537,850 0.0189733 $124,045 $343,172 9
Recent Florida Hospitality Results (cont.) Additional Selected Examples of Real Estate and Personal Property Tax Savings Property Name Jurisdiction Prior Value Final Value Reduction of Tax Savings Ponte Verda Duval County $7,408,200 $5,294,300 $2,113,900 $40,447 Waterfront Inn Sumter County $8,638,811 $5,797,879 $2,840,932 $38,591 Hilton Miami Airport Miami-Dade County $58,000,000 $56,000,000 $2,000,000 $37,788 Hilton Miami Airport (PP) Dade County $4,043,646 $2,439,339 $1,604,307 $29,789 Jacksonville Hotel Duval County $2,198,400 $1,013,409 $1,184,991 $21,720 Hyatt Regency Coral Gables (PP) Dade County $2,101,934 $1,454,450 $647,484 $12,644 Courtyard Flagler Center Duval County $5,103,400 $4,701,900 $401,500 $7,359 Cypress Creek Hampton Inn Broward County $5,551,820 $5,330,420 $221,400 $5,227 Holiday Inn Express Pinellas County $4,300,000 $4,111,800 $188,200 $4,134 $197,699 10
National Hospitality Clients 11
Team Resumes D. Cameron Moore - Atlanta Professional Experience Senior Managing Consultant / Principal Over eighteen years experience in real and personal property ad valorem tax valuation for regional and national clients Experience includes representation of real estate investment trusts, multi-national investment portfolios, multi-family properties, office buildings, retail, health care, manufacturing, national bank operation centers and branch offices, and undeveloped land Property valuation of several Hospitality and Resort property acquisitions in SE and SW Former Senior Manager with KPMG s National Property Tax Practice Former Practice Leader of Compliance Division for major boutique property tax consulting firm. Responsible for the development and implementation of appeal strategies, with general oversight of Compliance Division Professional Designations and Affiliations Approved Agent, Board of Tax Appeals (Kentucky) Approved Agent, State BOE (Tennessee) Member, Georgia Association of Assessing Officials Member, Tennessee Chapter of the International Association of Assessing Officials Professional Designations and Affiliations (continued) Member, Alabama Association of Assessing Officials Registered Real Estate Appraiser (Georgia) Real Estate Sales License (Georgia, Florida) Speaking Engagements Presentation on Assessment and Valutaion of Commercial Property Southeast Tax Forum. Raleigh, NC, July 2006 Educational Background BBA, Finance, University of Georgia, Athens, Georgia Fundamentals of Property Tax Listing and Assessment, University of North Carolina, Chapel Hill, North Carolina Various Appraisal Courses Email Address cmoore@paradigmtax.com 12
Team Resumes Manuel A. Ramos - Ft. Lauderdale Professional Experience Managing Consultant Former Manager, Complex Industrial Properties, KPMG s National Property Tax Practice Former Assistant Director, Property Appraisal Department, Miami-Dade County, Miami, FL Twenty years of experience in appraising tangible business personal property for complex properties such as telecommunications, public utilities, cable and television broadcasting including airlines with market value in excess of $5 billion dollars Experienced in property tax appeals, compliance and settlement negotiations Professional Designations and Affiliations ASA, American Society of Appraisers CFE, Florida Department of Revenue Accredited Senior Appraiser, American Society of Appraisers Certified Florida Evaluator, Florida Department of Revenue Senior Member, American Society of Appraisers Member, South Florida Atlantic Chapter, American Society of Appraisers Professional Designations and Affiliations (continued) License: Florida Real Estate Sales Associate Member, Florida Chapter, International Association of Assessing Officers Member, Institute for Professionals in Taxation Educational Background BBA, Florida Atlantic University, Boca Raton, FL Multiple Appraisal Courses in Valuation of Complex Properties from ASA, IAAO, Wichita State University and Florida Department of Revenue Email Address mramos@paradigmtax.com 13
Team Resumes Bernice T. Dowell - Washington, D.C. Professional Experience Senior Managing Consultant Over twenty years valuing real estate primarily for ad valorem taxation as well as income tax, bulk sales tax, and financial accounting purposes; 17 years working nationally focused on hospitality assets Most recently, co-owner of Cynsur, LLC, providing pricing analysis for over 400 hotel acquisitions Provided valuation of component assets of $820,000,000 acquisition of well-known California trophy resort; successfully defended before IRS Managed property tax litigation of a 1,500-room convention hotel in San Antonio ; jury decision resulted in real estate tax refunds of over $1 million Former Director of Property Tax for Host Marriott Corporation and for ClubCorp USA, Inc. Publications Published research paper entitled Hotel Investment Analysis: In Search of Business Value, Assessment Journal, March/April 1997 issue; Journal of Property Tax Management, Vol. 9, Issue 2, Fall 1997 Quoted in California State Board of Equalization Assessor s Handbook, Section 502, Advanced d Appraisal, Removing Intangible Assets and Rights From the Appraisal Unit, December 1998 Speaking Engagements Presentation on Managing Below the Bottom Line Crittenden Golf Conference, Atlanta, GA, September 2004 Panelist, Hotel Business Enterprise Value Symposium, International Association of Assessing Officers and Starwood Hotels & Resorts Worldwide, Inc., Chicago, IL, November 2005 Panelist, Hotel Valuation: The Players; What, Why & How They Do It!, New Jersey State League of Municipalities, 91 st Annual Conference, Atlantic City, NJ, November 2006 Educational Background B S., Finance/Real Estate, George Mason University, Fairfax, VA M.S., Finance, George Washington University, Washington, D.C. Email Address bdowell@paradigmtax.com 14
Team Resumes John B. Hess - Washington, D.C. Professional Experience Senior Managing Consultant 23 years of property tax management experience serving companies on various matters pertaining to property tax. Most recently, owner of Cynsur, LLC and Professional Tax Solutions, Inc. Was responsible for developing hospitality practice through proactive tax planning strategies via extraction of the Business Enterprise Value from the going concern Former Practice Leader for KPMG s Mid-Atlantic Property Practice responsible for delivery of specialized services to real estate, t hospitality and manufacturing clientele throughout the US National Accounts Director for National Property Practice responsible for customizing property tax management programs for clients based in Washington, DC and NYC with geographically diverse portfolios Specializes in the representation ti of hospitality assets in transfer tax and property tax capacities throughout the United States in conjunction with PTG offices Specializes in manufacturing and R&D properties in Maryland, Virginia and West Virginia Educational Background BA, West Virginia University, Morgantown, WV Pursuing Masters Degree in Integrated Marketing Communications from West Virginia University Email Address jhess@paradigmtax.com Professional Designations and Affiliations Member, Institute for Professionals in Taxation [IPT] 15
Contact Information 10300 Eaton Place Suite 310 Fairfax, VA 22030 Telephone: (703) 877-0781 Facsimile: (703) 877-0784 jhess@paradigmtax.com 10300 Eaton Place Suite 310 Fairfax, VA 22030 Telephone: (703) 877-0782 Facsimile: (703) 877-0784 bdowell@paradigmtax.com John Hess Senior Managing Consultant Bernice Dowell Senior Managing Consultant This document is protected under the copyright laws of the United States and other countries as an unpublished work. This document contains information that is proprietary and confidential to Paradigm DKD Group LLC or its technical alliance partners, which shall not be disclosed outside or duplicated, used or disclosed in whole or in part for any purpose other than to evaluate Paradigm DKD Group LLC. Any use or disclosure in whole or in part of this information without the express written permission of Paradigm DKD Group LLC is prohibited. Paradigm DKD Group LLC (Unpublished). All rights reserved. 16