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99-23168 RESO RESOLUTION NO. 99-23168 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AN AMENDMENT TO THE BOOKING POLICY FOR THE MIAMI BEACH CONVENTION CENTER REGARDING FIRST PRIORITY STATUS AND DATE PROTECTION REVIEWS. WHEREAS, the Mayor and City Commission previously approved Booking Policies for the Miami Beach Convention Center on June 7, 1989, which policies were amended on October 4, 1989; June 6, 1990; July 8,1992; and June 3,1998, respectively; WHEREAS, at the regular meeting of the Convention Center Advisory Board (CCAB) on April 22, 1999, questions and concerns were raised by the Administration regarding application in the Booking Policies as to the designation of First Priority Status and Date Protection Clauses in perpetuity; and WHEREAS, the City of Miami Beach after hearing the recommendations of the CCAB and SMG, as the City's operator for the Miami Beach Convention Center, recommends the attached Booking Policy providing for periodic review of First Priority events and Protection Clauses, and making the granting of the Protection Clause subject to final approval by the City Manager. NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission herein approve the attached amendment to the Booking Policy for the Miami Beach Convention Center, regarding First Priority status and Date Protection reviews. PASSED and ADOPTED this 12th day of May ,1999. filL ATTEST: JlAw~ r~ CITY CLERK SRIMDBIDWT:gm F:ICMGR\$ALLICOMMEMO.99\BKGPOLIC.TXT APPROVED AS TO FORM & lANGUAGE & FOR EXECUTION ~~ s17/tjJ Dale . . :\~ 'J MIAMI BEACH CONVENTION CENTER MIAMI BEACH, FLORIDA '", .--. .:.) F':; I' 33 BOOKING POLICIES Ii. '- '. , -,.~, : '. , :~ ur F it:L 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 SMG. The MBCC was enlarged and remodeled in part 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 MBCC 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 oflife for the community the MBCC serves. Reservations more than twenty-four (24) months before an 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 Section II 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 MBCC 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 , ll. 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, trade shows, cultural shows, corporate meetings and similar activities which are not open only to the general public; have a significant impact in tenus of Convention Development Tax generated; require in excess of 115,000 gross square feet of exhibit space in the Miami Beach Convention Center; and also require either a minimum of three nights with 1500 hotel rooms on the peak night in Miami-Dade County or be a long standing show; both as defined in Section IV herein, but provided that the impact of the Convention Development Tax generated shall still apply as referenced in Section II. A 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 pre-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. 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 General Manager of the MBCC (the "General Manager"). Within the First Priority category, the Bureau will give preference to the event with the most significant impact in tenus of Convention Development Tax generated. In the event that First Priority Event status is granted, based in part upon the hotel room on peak night requirement, as defined herein and as set forth above, the Convention Center Advisory Board shall require recertification of said hotel room requirement from First Priority Events every five (5) years; said recertification requirement shall be applicable to First Priority Events as of the May 12, 1999, except for those First Priority Events certified on or after January 1, 1996, which events shall be recertified five (5) years from the latest date of certification. 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 regional attendees and participants. 2 ,. 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 General Manager, 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. 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 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 tenus 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 the 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 General Manager may exercise his discretion as to the issuance, modification, or termination of scheduling reservations. ill. PROTECTION CLAUSE: Effective December 31, 1999, a Protection Clause shall, upon the recommendations of the Convention Center Advisory Board, the General Manager, and subject to the approval of the City Manager, be granted to recurring loca~ regional, and international public and tradeshows with a proven record of success, defined herein as the successful completion of at least two consecutive shows in two years, which have produced significant revenue to the MBCC. If granted, such Protection Clause will be included in the Lease Agreement and, thereafter re- reviewed every three (3) years by the Convention Center Advisory Board and the General Manager, and subject to the approval of the City Manager, in future Lease Agreements. Notwithstanding the foregoing, the granting of a Protection Clause in a Lease Agreement shall not vest any right (s) or reliance on the part of the Lessee as to the granting of said Clause in subsequent or future Lease Agreements, but shall at all times be subject to the review and approval procedures set forth here: 3 ~ ,. In consideration for the continuation of a Date Protection clause inclusion in subsequent lease agreements, the Convention Center Advisory Board recommendation and City Manager approval shall consider the following criteria: );0 Required usage of at least 115,000 gross square feet of exhibit space );0 Event history and trending of total revenue to the Miami Beach Convention Center );0 Event history and trending of net square footage utilized in the Miami Beach Convention Center );0 Event history and trending of attendance in the Miaim Beach Convention Center >- Timeliness and adherence to payment terms at the Miami Beach Convention Center >- Continuous scheduled presentation of the event at the Miami Beach Convention Center );0 Compliance by lessee with Miami Beach Convention Center building operating policies and procedures The Protection Period shall not exceed a total of sixty (60) 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 General Manager, 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 sixty (60) days may be granted for higWy competitive events with higWy 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 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 same event showing/selling product lines in the Lessee's event; provided, however, that a show that is open to the public shaII 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 General Manager, and shall be based upon the product lines in the proposed event's prior shows. Notwithstanding the foregoing, these provisions shall not affect Protection Clauses included in Lease Agreements executed on or before December 31, 1999, but shall apply to the inclusion of Protection Clauses in all future Lease Agreements executed after January I, 2000. '. 4 ... ,. . IV. DEFINITION OF TERMINOLOGY: 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 reseIVed tentatively, but the tentative reservation will be contingent upon the release of a prior reseIVation which is considered first option. FffiST OPTION: Facilities and dates reseIVed on First Option are reseIVed 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 reseIVation. 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 General Manager, 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 General Manager has a good faith 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 General Manager, pending the preparation of a Lease Agreement. In the event such a letter of confirmation is signed by both the sponsor and the General Manager, no conflicting scheduling will be made during a reasonable period to permit preparation and execution of a Lease Agreement. LONG STANDING: Long standing show is defined as one which has a minimum of 20 consecutive years usage in MBCC under the same ownership, is in good standing, which includes being current on all prior debts, and has paid all contractual obligations in a timely fashion to the facility. If the show has multiple events in MBCC in a calendar year, the first priority designation applies to only one of the show events in the calendar year. i.:~ 5 , ,. . HOTEL ROOMS ON PEAK NIGHT: One of the criteria used for determining whether an event is a First Priority Event is 1,500 "hotel rooms on peak night" in Miami-Dade County. "Hotel rooms on peak night" should be distinguished from "total room nights" used, which is the product ofthe number ofhote! rooms used times the number of nights the event is booked in hotels. No variance from the Center's agreement represented in the above tenns may be made in any case except upon the prior express written approval of the General Manager. v. DEPOSIT SCHEDULES: Deposits are required for all activities upon execution of a fonnal MBCC 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 General Manager may authorize, is required upon execution of the Lease Agreement. For events leased several years or more in advance, special arrangements may be negotiated, at the 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 the 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 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 sponsorships, 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 General Manager. REV. 120789,060890,070892,060398,051299,070799 ~. 6 CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 hllp:\\ci.miami-beach.fl.us ~. COMMISSION MEMORANDUM NO. ~ ~ ~- CjCf TO: Mayor Neisen O. Kasdin and Members ofthe City Co mission DATE: May 12, 1999 FROM: Sergio Rodriguez City Manager SUBJECT: A RESOLU ION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AN AMENDMENT TO THE BOOKING POLICY FOR THE MIAMI BEACH CONVENTION CENTER REGARDING FIRST PRIORITY STATUS AND DATE PROTECTION REVIEWS. ADMINISTRATION RECOMMENDATION: Adopt the Resolution. BACKGROUND: On June 3, 1998 the City Commission by Resolution No. 347-98 approved a revision to the Miami Beach Convention Center Booking Policy clarifying and expanding the definition of First Priority events. This Booking Policy is used to determine scheduling priorities for events at the Center, Subsequent to the 1998 revisions, questions have been raised concerning the awarding of First Priority Status in perpetuity, with no clear provision for review of that status, should the size and impact of an event change. Additional questions were raised concerning the award of a Date Protection clause, as provided for in the Booking Policy, in perpetuity. The Date Protection clause allows an event to have a non-compete window of up to sixty days surrounding its event to preclude similar type shows from occurring. In a brief survey of other convention centers around the nation, SMG, operator of the Miami Beach Convention Center, found that generally three schools of thought are employed concerning date protection. Some Centers, including San Francisco and Denver, offer no Date Protection to their users. Miami Beach and Fort Lauderdale were among a group specifically outlining the parameters of the Protection, how and by what authority it is granted, and the time frames of the Protection. The Fort Lauderdale Convention Center is also managed by SMG. Many other Centers, however, including Anaheim, Chicago, and Charlotte, have informal policies that discourage the booking of similar events within an unspecified time of an existing event, typically 30 days either side. Of the facilities surveyed that granted either formal or informal Date Protection, the only instance of Date Protection being awarded by any entity other than the facility director or manager was Atlantic City, where such protection is awarded by contract by the governing authority of the Center. 695 AGENDAITEM.JZ..i H DATE S" - 2/ - 'J7 , ANALYSIS: At its regular meeting of April 22, 1999, the Convention Center Advisory Board (CCAB) addressed the issues of award in perpetuity of both First Priority Status and Date Protection Clauses. Users of the Center were present to state their opinion. The CCAB voted to recommend review of both the First Priority and Date Protection issues every five years. The First Priority review would become effective for the first event taking place after April 22, 2004. The Date Protection review would become effective five years after the issuance of the next event contract. The Administration recommends that the review of the Date Protection Clause issuance be conducted upon executing any future Agreement effective upon the passing of these amendments. The current Booking Policy authorizes the CCAB to grant Date Protection to events at the Center. The Administration further recommends in the proposed Booking Policy that the CCAB provide a recommendation on the granting of Date Protection of an event to be submitted to the City Manager for final approval. The City Manager would grant approval of Date Protection taking into consideration the recommendation of the CCAB and SMG. As to the granting of First Priority, the Administration recommends that an event be reviewed every five years upon submittal of the recertification of hotel room usage. The review of the First Priority will become effective upon the passing of this Resolution. . The CCAB has agreed to further review and develop the criteria to be used in those reviews, especially for Date Protection continuation. These guidelines will be recommended to the Administration and referred to Commission for approval in June 1999. Commissioner Nancy Liebman requested the amendments to be presented to the Commission meeting of May 12, 1999 and for the guidelines to be submitted at the June 9,1999 meeting of the Commission. CONCLUSION: The Administration agrees that the ability to review these items periodically will allow us to continue to maximize the efficient and effective booking of the Convention Center. SR:~:DT Attachments F:\CMGRISALLlCOMMEMO.99\BOOKPL Y.312 696