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RESOLUTION 92-20543 r 1 t ' a a RESOLUTION NO. 92-20543 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING BOOKING POLICIES FOR THE MIAMI BEACH CONVENTION CENTER. WHEREAS, the City Commission of the City of Miami Beach has previously approved booking policies for the Convention Center on June 7 , 1989, which policies were revised on October 4 , 1989 and June 6, 1990 ; and WHEREAS, the Convention Center Advisory Board at its meeting of June 25, 1992 recommended to the City Commission certain changes to the booking policies; and WHEREAS, the City Commission has reviewed the proposed changes to the booking policies. NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the booking policies for the Miami Beach Convention Center, a copy of which is attached hereto, are hereby adopted and approved. PASSED and ADOPTED this 8th day if July 1992 . ,y, „ ATTEST: CAAL.AA 441- ts . FORM APPROVED CITY CLERK 11st i LEGAL DEPT. PNB: lm - By C:RESOLUTI\BOOKING.POL Date Vf2— RESOLUTION NO. 92-20543 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING BOOKING POLICIES FOR THE MIAMI BEACH CONVENTION CENTER. WHEREAS, the City Commission of the City of Miami Beach has previously approved booking policies for the Convention Center on June 7 , 1989, which policies were revised on October 4, 1989 and June 6, 1990; and WHEREAS, the Convention Center Advisory Board at its meeting of June 25, 1992 recommended to the City Commission certain changes to the booking policies; and WHEREAS, the City Commission has reviewed the proposed changes to the booking policies. NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the booking policies for the Miami Beach Convention Center, a copy of which is attached hereto, are hereby adopted and approved. PASSED and ADOPTED this 8th day if July 1992 . :doATTEST: FORM APPROVED CITY CLERK if►�/yL. LEGAL DEPT. PNB: lm 6y C:RESOLUTI\BOOKING.POL Date CITY OF MIAMI BEACH CT'' HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33 3 OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 COMMISSION MEMORANDUM NO. -42_ -9Z, July 8, 1992 TO: Mayor Seymour Gelber and DATE: Members of the City Commission FROM: Roger M. Ca4R City Manager SUBJECT: CHANGES TO THE MIAMI BEACH CONVENTION CENTER BOOKING POLICY AS RECOMMENDED BY THE CONVENTION CENTER ADVISORY BOARD ADMINISTRATION RECOMMENDATION The Administration recommends that the City Commission adopt the attached Resolution recommending the Convention Center Advisory Board changes, additions, deletions, etc. , as identified in the attached Booking Policy Statement. BACKGROUND In 1989, a booking policy was developed by the Convention Center Advisory Board and approved by the Greater Miami Convention and Visitors Bureau, the Convention Center Administration, the local users of the Facilities, attorneys representing users and the City Commission. Revisions to this policy were recommended and approved in December 1989 and June 1990. At the City Commission Meeting of April 8 , 1992 , it was requested that the Convention Center Advisory Board address the issue of the Booking Policy, i.e. , the process used to define room nights and the process used to verify and certify peak room nights. A sub-committee was formed and meetings were held on May 14 and 27 , 1992 . Those in attendance were local users, attorneys representing users, the Greater Miami Convention and Visitors Bureau, SMG, City Attorney' s Office and the City Administration. Attached are copies of the minutes of the two (2) sub-committee meetings and the minutes of the June 25, 1992 Convention Center Advisory Board, in which they approved, by a unanimous vote, the booking policy changes as presented by the sub-committee. It should be noted that at the June 25, 1992 meeting of the Convention Center Advisory Board, a discussion occurred which would further amend the Booking Policy. The discussion centered on the extension of the twenty-four (24) month booking window to thirty- six (3 6) months. Currently, any reservations more than twenty-four (24) months before the event are handled through the Greater Miami Convention and Visitors Bureau. This proposed change would extend the period to thirty-six (36) months. The Board took this proposal under advisement and requested information from the Greater Miami Convention and Visitors Bureau, within ninety (9 0) days, as to the inpact of such changes. Once that information is received, the Board will reconsider the proposal. Continued. . . AGENDA I TEM - DATE - r COMMISSION MEMORANDUM PAGE TWO JULY 8, 1992 ANALYSIS The major recommended changes to the Booking Policy are (the underlined words have been added) : Page 1 I - STATEMENT OF PURPOSE Eliminate the wording "generate substantial economic benefits to Dade County and the City of Miami Beach" and substitute the following: Hav• a i•n ' - ! ' !I•-C 1 - u of •.v- ! • Development Tax (CDT) generated. The CDT can be measured accurately and is the only tax that subsides the deficit operation and pays the bonds for the Convention Center. Page 2 II - SCHEDULING PRIORITIES: A. First Priority Events. Added the sentence that first priority events must "have a significant impact in terms of Convention Development Tax generated" . Eliminated that first priority events must use a minimum of 50, 000 net square footage of exhibit space and added that first priority events must use 115, 000 gross square footage of exhibit space. Added to this paragraph that to be a first priority event a minimum of three (3) nights stay is required. This is in addition to using 1500 hotel rooms on peak night. Added the underlined words: Convention Development Tax impact and the hotel room counts are based on prior history and subject to verification of the Bureau or a qualified independent surveyor approved by the Convention Center Advisory Board, provided that such surveyor ' s results shall be subject to review and approval by the Convention Center Advisory Board. Also in this Section II, a paragraph was added that states that within the first priority category, the Bureau will give preference to the event with the most significant impact in terms of Convention Development Tax generated. Page 3 B. Second Priority Events Added that a Second Priority event, for the Convention Center to give preference, must have a significant impact in terms of Convention Development Tax generated (Convention Development Tax impact data shall be provided by the user. ) III. Protection Clause. Increased the protection clause from sixty (60) to seventy-five (75) days. Also added: Upon the recommendation of the Convention Center Advisory Board, a protection clause in excess of seventy- five (75) days may be granted for highly competitive events with significant revenue to the Miami Beach Convention Center. Continued. . . I • COMMISSION MEMORANDUM PAGE THREE JULY 8 , 1992 Page 5 Hotel rooms on Peak Night. This section has been added: One of the criteria used for determining whether an event is a First Priority Event is 1500 "hotel rooms used on peak night" in Dade County. "Hotel rooms on peak night" should be distinguished from "total event nights" used which is the product of the number of hotel rooms used times the number of nights the event is booked in hotels. CONCLUSION The Convention Center Advisory Board voted unanimously to recommend to the City Commission, the changes to the Booking Policy. They will also continue to modify and update the Booking Policy as directed by the convention and trade show industry and bring to the attention of the City Commission. RMC: :T:NL: jh 1:%9 MIAMI BEACH CONVENTION CENTER MIAMI BEACH, FLORIDA BOOKING POLICIES I. STATEMENT OF PURPOSE: The Miami Beach Convention Center (the "MBCC" or the "Center") is a national and international convention, tradeshow, and multi- purpose facility owned by the City of Miami Beach and operated by Spectacor Management Group. The facility was enlarged and remodelled with Convention Development Tax proceeds with the primary objective of promoting and facilitating events and activities which have a significant impact in terms of Convention Development Tax generated. In addition, the facility was developed with a secondary objective of providing services and facilities to respond to the needs of county and local activities which promote business and generally enhance the quality of life for the community the facility serves. Reservations more than twenty-four (2 4) months before the event are normally handled through the Greater Miami Convention and Visitors Bureau (the "Bureau") , subject to approval of the MBCC, and are subject to the guidelines of II (a) below. Reservations less than twenty-four (2 4) months before the event are normally handled by the MBCC and are subject to the policies outlined herein. When booking the MBCC, consideration shall be given by both the Bureau and the Convention Center management to the following factors: (a) Significant impact in terms of Convention Development Tax generated; (b) Total number of hotel rooms required; (c) Projected revenue to the facility both in terms of direct space rental revenue, as well as projected revenue from concessions and other building services; (d) Time of year; (e) Potential for repeat booking; and (f) Previous history and experience of the potential user with respect to use of similar facilities. 1 II. SCHEDULING PRIORITIES: A. First Priority Events. Generally speaking, first priority for scheduling facilities and dates in the MBCC is available to regional, national and international conventions, tradeshows, corporate meetings and similar activities which are not open only to the general public, have a significant impact in terms of Convention Development Tax generated, require in excess of 115, 000 gross square feet of exhibit space in the MBCC, and require a minimum of three nights with 1500 hotel rooms on the peak night in Dade County. Convention Development Tax impact and hotel room counts are based on prior history of the event and are subject to verification by (1) the Bureau, or (2) , at user' s expense, a qualified independent surveyor preapproved by the Convention Center Advisory Board, provided that such surveyor' s results shall be subject to review and approval by the Convention Center Advisory Board. Facility and space scheduling commitments, i. e. , reservations, for First Priority Events, may be made as far in advance as is necessary or appropriate and may supersede requests for other events and activities, unless a lease agreement has been previously executed by the MBCC and the user for such other event. Lease agreements for First Priority Events may be entered into as far in advance as necessary or appropriate at the discretion of the Director of the MBCC (the "Director") . Within the First Priority category, the Bureau will give preference to the event with the most significant impact in terms of Convention Development Tax generated. B. Second Priority Events. Second priority for scheduling facilities and dates in the MBCC is available to consumer or public exhibitions, tradeshows (open to the trade only) , local corporate meetings, special events, entertainment events, business meetings and other activities which essentially draw from or appeal to the general public and/or local or regional attendees and participants. Tentative facility and date scheduling reservations for Second Priority Events are generally made not more than three years in advance and are subject to change to accommodate First Priority Events unless a lease agreement has been previously executed by the MBCC and user for such event. However, large consumer and public exhibitions and trade shows held on an annual basis may at the discretion of the Director obtain tentative scheduling reservations for facilities and dates on a long-term basis, subject to rescheduling or termination to accommodate First Priority Events. Lease agreements for Second Priority Events shall , upon request of the party holding the reservation, be issued twenty-four (24) months prior to the event, but not more than twenty-four (24) 2 . months prior to the event. The lease agreement shall provide that if the Bureau has a potential First Priority Event seeking to lease the facility during Lessee ' s contracted dates and within the fifteen to twenty-four month period prior to the Lessee ' s event, the Lessee shall agree to use its best efforts to move its event a few days either way in order to accommodate the First Priority Event. Within the Second Priority category, the MBCC will give preference to long-standing public shows and tradeshows held on an annual basis with a proven record of success at the MBCC, which have produced significant revenue to the MBCC and have a significant impact in terms of Convention Development Tax generated (Convention Development Tax impact data shall be provided by the user) , and may offer alternate dates in a given year which may result in termination of other second priority scheduling reservations; the foregoing criteria may also be used by MBCC to reschedule or select between Second Priority Events in the case where a scheduling reservation for a First Priority Event impacts tentative scheduling reservations for two or more Second Priority Events. Subject to the priorities set forth above, the Director may exercise his discretion as to the issuance, modification, or termination of scheduling reservations. III. PROTECTION CLAUSE: A Protection Clause shall, upon the recommendation of the Convention Center Advisory Board, be granted to long standing recurring local, regional and international public and trade shows with a proven record of success and which have produced significant revenue to the MBCC. If granted, such Protection Clause will be included in the lease agreement, which will not be issued earlier than twenty-four (24) months prior to the event. The Protection Period shall not exceed a total of seventy five (7 5) days plus the show days. The number of days prior to and after the event shall be the subject of agreement between the Lessee and the Director, but a minimum of fifteen (15) days shall be required on each side of the event. Upon the recommendation of the Convention Center Advisory Board, a protection clause in excess of seventy-five (75) days may be granted for highly competitive events with highly significant revenue to the MBCC. If a Protection Clause is granted, it will read as follows: PROTECTION CLAUSE: Lessor agrees that it will not lease any portion of the Convention Center facility to any Competing Event for the period commencing days 3 before Lessee' s first show day and concluding days after Lessee ' s last show day (the "Protection Period") . A "Competing Event" is hereby defined as an event which has thirty percent (30%) or more of the total number of exhibitors/booths in the event showing/selling product lines the same as or substantially similar to the product lines in the Lessee' s event; provided, however, that a show that is open to the public shall never be deemed a Competing Event with a show open only to the trade, and vice versa. The determination of whether or not an event is a "Competing Event" shall be solely within the discretion of the Director and shall be based upon the product lines in the proposed event' s prior shows. IV. DEFINITION OF TERMINOLOGY: In the process of scheduling facilities and dates, the following terms and definitions shall always apply to scheduling commitments, i.e. , reservations, issued by the MBCC: TENTATIVE: Facilities and dates will be temporarily held pending notification to the contrary by either party. In the event a tentative commitment is released by the MBCC, the requesting party will be notified the facilities and/or dates have been released. SECOND OPTION: Facilities and dates will be reserved tentatively but the tentative reservation will be contingent upon release of a prior reservation which is considered first option. FIRST OPTION: Facilities and dates reserved on First Option are reserved tentatively but a conflicting commitment for the facilities and dates generally will not be made in favor of a second requesting party within the same scheduling priority without first offering the party holding a First Option an opportunity to either execute a lease agreement or release its reservation. A First Option held by a Second Priority Event can always be superseded by a First Priority event, unless a lease agreement has been previously executed. At the discretion of the Director, a party with a First Priority event holding a First Option may be required, within seven (7) days of written notice, to execute a lease agreement and post a deposit at any time that the Director has a good faith 4 r • • . request in writing from another First Priority event for the same dates. CONFIRMED: Facilities and dates are considered as confirmed or under contractual commitment only upon execution of a MBCC lease agreement by the event sponsor and the City of Miami Beach specifying all details of the commitment. However, facilities and dates may be held as "firm" upon receipt of a letter of confirmation signed by both the event sponsor and the Director pending the preparation of a lease agreement. In the event such a letter of confirmation is signed by both the sponsor and the Director, no conflicting scheduling will be made during a reasonable period to permit preparation and execution of a lease agreement. HOTEL ROOMS ON PEAK NIGHT: One of the criteria used for determining whether an event is a First Priority Event is 1500 "hotel rooms on peak night" in Dade County. "Hotel rooms on peak night" should be distinguished from "total room nights" used, which is the product of the number of hotel rooms used times the number of nights the event is booked in hotels. No variance from the Center' s agreement represented in the above terms may be made in any case except upon the prior, express written approval of the Director. V. DEPOSIT SCHEDULES: Deposits are required for all activities upon execution of a formal SMCC lease agreement. FIRST PRIORITY EVENTS: A deposit in the amount of one day' s minimum guaranteed rental per hall, or such other deposit as the Director may authorize, is required upon execution of lease agreement. For events leased several years or more in advance, special arrangements may be negotiated, at Center' s option, for a lesser deposit upon lease execution with the deposit balance due and payable sixty (60) days in advance of the event. SECOND PRIORITY EVENTS: A minimum deposit will be required upon execution of lease agreement as follows: one day ' s minimum guaranteed rental for the first hall, and an additional 33 1/3% of one day' s minimum 5 guaranteed rental for each additional hall . However, first- time events without a past history of success and event sponsors with inadequate references, or prior event sponsorship, a record of slow payment, etc. , may be required, at the Center' s option, to remit up to one hundred percent (100%) of anticipated rental and related expenses upon execution of lease agreement. Events and circumstances not covered in the above scheduling policies may be subject to special conditions as deemed appropriate by the Director. PNB: lm 120789 Rev. 060890 Rev. 070892 Rev. Ref: C:\agreement\bookpol.cvn 6 ORIGINAL .iESOLUTION NO. 92-20543 Approving booking! pbLities:' for the Miami Beach Convention Center. f