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2001-24394 RES0 RESOLUTION NO. 2001-24394 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE ADMINISTRATION'S RECOMMENDATIONS, AS SET FORTH IN THIS RESOLUTION, AND APPROVING AN AMENDMENT TO THE BOOKING POLICY FOR THE MIAMI BEACH CONVENTION CENTER CLARIFYING DESIGNATION OF FIRST PRIORITY STATUS, DISCRETION CONCERNING THE ABOVE, AND NON-SUBSTANTIVE FORM REVISIONS; FURTHER AUTHORIZING THE ADMINISTRATION TO RETAIN A CONSULTANT AND DEVELOP A METHODOLOGY FOR VERIFICATION OF HOTEL ROOM NIGHTS BY "NON-CONVENTION" EVENTS SEEKING FIRST PRIORITY STATUS AT THE CONVENTION CENTER. WHEREAS, at its regular meeting on April 27, 2000, the Miami Beach Convention Center Advisory Board (CCAB) unanimously approved a motion to review the Booking Policy of the Miami Beach Convention Center (MBCC) with regard to the granting of First Priority Status to events at MBCC; and WHEREAS, the Administration wishes to further clarify the definition of First Priority events, as weU as the mechanism by which events are verified as First Priority; and WHEREAS, the Administration, SMG, and the City's Attorneys Office met to discuss the proposed changes to the Booking Policy; accordingly, the Administration herein recommends the following revisions and that same, if approved, be incorporated as an amendment to the MBCC Booking Policy. I. The Policy further clarifies that, in order to be considered for First Priority status, an event must have a demonstrated history, and that additional shows developed and patterned after established shows would not be eligible until such hotel usage history for the additional show is demonstrated; 2. The Policy clarifies precedence with regard to conflicts between room night-verified First Priority events and 20-year history (i.e. long-standing) First Priority events; 3. The Policy addresses instances where events which interrupt their regular presentation schedule may have First Priority status and/or Date Protection revoked; 4. Discretion clauses resident in individual sections have been consolidated into a single, stand-alone section, introducing applicability of discretion which provide for variances to any or aU of the entire Policy for special circumstances; 5. A separate addition to the First Priority verification packet, distributed to events wishing to achieve such designation, which describes in further detail the required verification of hotel room usage for both GMCVB-verified events and those verified by an independent auditor; 6. Events and circumstances not covered in the scheduling policies contained within the Booking Policy may be subject to special conditions, as deemed appropriate by the City Manager. No variance from the Center's policies, as represented in the terms contained within the Booking Policy, may be made without first being submitted to the General Manager and CCAB for consideration, but shall be subject to final consideration and approval by the City Manager; and WHEREAS, in addition to the above referenced amendments to the MBCC Booking Policy the Administration would also recommend utilizing a consultant for the development of a methodology for verification of hotel room nights utilized by non-convention events; and WHEREAS, these events normally do not reserve hotel rooms through the Greater Miami Convention and Visitors Bureau or a travel agent, therefore presenting a challenge to the event in documenting qualification toward "First Priority" status. 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 Administration's recommendations, as set forth in this Resolution, with regard to an Amendment to the Booking Policy for the Miami Beach Convention Center; said Amendment clarifying designation of First Priority status, discretion concerning the above, and non- substantive form revisions; and further authorizing the Administration to retain a Consultant and develop a methodology for verification of hotel room nights by "non-convention" events seeking First Priority status at the Convention Center. PASSED and ADOPTED this 16th day of April, 2001. ATTEST: vyji;j MAYOR ~tf~ CITY CLERK APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION ~~J1#- ~ F:\CMGR\$ALLIMDB-LSG. WRKIBOOKPOL.RES ADMIN DRAFT - 4/2001 MIAMI BEACH CONVENTION CENTER MIAMI BEACH, FLORIDA BOOKING POLIOES 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 primaty objective of promoting and facilitating events and activities which have a significant impact in tenns 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 of life for the community the MBCC serves. 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 tenns 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 t) Previous history and experience of the potential user with respect to use of similar facilities. 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, trade shows, cultural shows, corporate meetings and similar activities which are not open only to the general public, and have a significant impact in tenns of Convention Development Tax generated. In order to be considered for a First Priority designation, an event shall: >> require in excess of 115,000 gross square feet of exhibit space contracted in the MBCC; AND EITHER >> require a minimum of three nights with 1500 hotel rooms occuDied on the peak night in Miami- Dade County OR be a long standing show, defmed as one which has a minimum of20 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 1 ADMIN DRAFT - 4/2001 MBCC in a calendar year, the first priority designation applies to only one of the show events in the calendar year. 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. In order to be considered for First Prioritv desil!llation. an event shall have demonstrated the hotel room count history durinl! presentation of the identical event either in Miami-Dade County or. in the case of events which move from citv to city on a rotational basis or are relocatinl! from another location. the hotel room count history of the identical event shall he verified bv the Bureau usinl! I!enerallv accepted industrv standards. ( i.e.. IACVB Cinet svstem or other) for such historv verification. Within the First Priority category, the Bureau will give preference to the event with the most significant impact in tenDs of Convention Development Tax generated. For pumoses of conflict resolution. events havinl! attained First PrioritY desil!llation throum the hotel oeak room nimt verification process shall have precedence over those events havinl! attained First PrioritY desil!llation throul!h the 20 vear nrocess. In the event that First Priority Event status is granted, based in part upon the hotel room on peak night requirement 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 from the most recent date of certification. In the instance that an event interrunts its rel!IIlar schedulinl!. defined as failinl! to take place within six (6) months of its next anticinated nresentation. First Priority status mav be revoked. 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. Within the Second Priority category, the MBCC will give preference to recurring 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). The MBCC may offer alternate dates in a given year which may result in tennination 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. C. Discretion: Subject to the priorities set forth above, the General Manager may exercise his discretion as to the issuance, modification, or termination of scheduling reservations. 2 ADMIN DRAFT - 4/2001 both the sponsor and the General Manager, no conflicting scheduling will be made during a reasonable period to preparation, negotiation, and execution of a Lease Agreement. IV. PROTECTION CLAUSE: A Protection Clause shall, upon the recommendations of the Convention Center AdviSOIy Board, the General Manager, and subject to the approval of the City Manager, be granted to recurring local, 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 MBCe. 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: In consideration for the continuation of a Date Protection clause inclusion in subsequent lease agreements, the Convention Center AdviSOIy Board recommendation and City Manager approval shall consider the following criteria: ~ Required usage of at least 115,000 gross square feet of exhibit space ~ Event history and trending of total revenue to the MBCC ~ Event history and trending of net square footage utilized in the MBCC ~ Event history and trending of attendance in the MBCC ~ Timeliness and adherence to payment tenus at the MBCC ~ Continuous scheduled presentation of the event at the MBCC ~ Compliance by lessee with MBCC 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 highly competitive events with highly significant revenue to the MBCC. ~ instance that an event interruots its resrular schedulinl!. defined as failinl! to take olace within six (6) months of its next anticioated oresentation. its Date Protection status mav be revoked. 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 nwnber of exhibitorslbooths in the same event showing/selling 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 detennination of whether or not 4 ADMIN DRAFT - 4/2001 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. V. DEPOSIT SCHEDULES: Deposits are required for all activities upon execution of a formal MBCC Lease Agreement. A. First PrioritY Events: A deposit in the amoWlt of one day's minimum guaranteed rental per hall, or such other deposit as the General Manager may authorize, is required upon executioo 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. B. ~ond PrioritY Events: A minimum deposit will be required upon execution oflhe Lease Agreement as follows: one day's minimum guaranteed rental for the fIrSt hall, and an additiona133- 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 ofslow payment, etc., may be required, at the Center's option, to remit up to one hWldred percent (100%) of anticipated rental and related expenses upon executioo of Lease Agreement. VI. VARIANCE FROM POLICY: Events and circumstances not covered in the above schedulin2 oolicies mav be subiect to soecial conditions. and as deemed aoorooriate bv the City Mana2er. No variance from the Center's oolicies. as reoresented in the above terms. mav be made without first bein2 submitted to the General Mana2er and CCAB for consideration. REV. 120789,060890,070892,060398,051299,070799, DRAFT 4/2001 5 CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miami.beach.f1.us ~. TO: FROM: SUBJECT: COMMISSION MEMORANDUM NO. 3~ 4-0 ( Mayor Neisen O. Kasdin and DATE: May 16,2001 Members of the City Commission Jorge M. Gonzalez ,\,' / City Manager 0 d'" \\ A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE ADMINISTRATION'S RECOMMENDATIONS, AS SET FORTH IN THIS RESOLUTION, AND APPROVING AN AMENDMENT TO THE BOOKING POLICY FOR THE MIAMI BEACH CONVENTION CENTER CLARIFYING DESIGNATION OF FIRST PRIORITY STATUS, DISCRETION CONCERNING THE ABOVE, AND NON-SUBSTANTIVE FORM REVISIONS; FURTHER AUTHORIZING THE ADMINISTRATION TO RETAIN A CONSULT ANT AND DEVELOP A METHODOLOGY FOR VERIFICATION OF HOTEL ROOM NIGHTS BY "NON-CONVENTION" EVENTS SEEKING FIRST PRIORITY STATUS AT THE CONVENTION CENTER. ADMINISTRATION RECOMMENDATION: Adopt the Resolution. ANALYSIS: At its regular meeting on April 27, 2000, the Miami Beach Convention Center Advisory Board (CCAB) unanimously approved a motion to review the Booking Policy of the Miami Beach Convention Center (MBCC) with regard to the granting of First Priority Status to events at MBCC. This action came as a result of the negotiations and resulting Agreement between the City and Art Basel for the presentation of Art Basel Miami Beach, beginning in December 200 I. At that time, the Administration wished to further clarifY the definition of First Priority events, as well as the mechanism by which events are verified as First Priority. By definition, First Priority booking status may be granted to events which have demonstrated a peak night hotel room usage of at least 1500 rooms countywide, or events which have been produced AGENDA ITEM...f?7 M DATE~ T:\AGENDA \2001 lMA Yl60 1 IREGULARIBOOKPOL.MEM Commission Memorandum Booking Policy May 16, 2001 Page 2 twenty years consecutively at the Miami Beach Convention Center. Verification for the hotel room usage may be certified by either an approved independent auditor, or by the Greater Miami Convention & Visitors Bureau through accepted industry databases. They must also use at least one exhibit hall of the Center. First Priority events receive date hold priority over other events, and can be contracted more than 24 months in advance of the event. Any event not having been designated First Priority is deemed Second Priority, and may not receive contracts until 24 months or less before its presentation date. The Administration, SMG, and the City's Attorneys Office met to discuss the required changes and developed a draft of proposed revisions. The City Administration and the City's Attorneys Office recommends approval of the following substantive changes and be incorporated as amendments to the Booking Policy: 1. The Policy further clarifies that, in order to be considered for First Priority status, an event must have a demonstrated history, and that additional shows developed and patterned after established shows would not be eligible until such hotel usage history for the additional show is demonstrated. 2. The Policy clarifies precedence with regard to conflicts between room night-verified First Priority events and 20-year history (i.e. long-standing) First Priority events. 3. The Policy addresses instances where events which interrupt their regular presentation schedule may have First Priority status and/or Date Protection revoked. 4. Discretion clauses resident in individual sections have been consolidated into a single, stand-alone section, introducing applicability of discretion which provide for variances to any or all of the entire Policy for special circumstances. 5. A separate addition to the First Priority verification packet, distributed to events wishing to achieve such designation, which describes in further detail the required verification of hotel room usage for both GMCVB-verified events and those verified by an independent auditor. 6. Events and circumstances not covered in the scheduling policies contained within the Booking Policy may be subject to special conditions, as deemed appropriate by the City Manager. No variance from the Center's policies, as represented in the terms contained within the Booking Policy, may be made without first being submitted to the General Manager and CCAB for consideration, but shall be subject to final consideration and approval of the City Manager. With regard to Item No.6 above, the Administration's proposed language would allow final consideration and approval for variances from the Booking Policy to rest with the City Manager. However, the prior consideration of both the General Manager and the CCAB would still be required, therefore preserving the input that both entities have as to such issues. Because any potential variance would constitute a deviation from the Booking Policy, and would therefore be an "extraordinary remedy", as it were, the Administration believes that the final policy decision should T:\AGENDA \200 I \MA YI60 1 IREGULAR\BOOKPOL.MEM Commission Memorandum Booking Policy May 16,2001 Page 3 rest with the City, through final approval of same by the City Manager. Again, as a policy decision may be involved, the final approval should not be delegated to SMG, or whatever entity succeeds SMG as the MBCC General Manager, as the Booking Policy extends beyond the contract term of SMG. It should be noted here that the CCAB's recommended amendment only allows for variances to be made solely by the MBCC General Manager (i.e. SMG), with the recommendation of the CCAB. The CCAB held several meetings to discuss the amendments to the Booking Policy. On February 27, 2001, the CCAB agreed to the above substantive amendments to the MBCC Booking Policy except for Item No.6. The following is the alternate recommendation of the CCAB. 6. Authority of the General Manager of the Convention Center, upon recommendation by the CCAB, to grant variances from the MBCC Booking Policy, which would include, among other things, the discretion to waive requirements for an event to qualify for First Priority status. On May 8, 2001, the CCAB voted four in favor, three opposed to authorize the General Manager of the Convention Center, upon recommendation by the CCAB, to grant variances from the MBCC Booking Policy, which would include, among other things, the discretion to waive requirements for an event to qualify for First Priority status. The requesting entity or event can appeal to the City Commission, if it does not agree with the decision of the General Manager of the Convention Center. The City Administration will also be contracting with a consultant for the development of a methodology for verification of hotel room nights utilized by non-convention events. These events normally do not reserve hotel rooms through the Greater Miami Convention and Visitors Bureau or a travel agent, therefore presenting a challenge to the event in documenting qualification as a "First Priority" . The Mayor and Commission should approve the Resolution with the Administration and City Attorney's Office's recommended language to No.6 of the Memorandum. (i.e. Sect. VI of the MBCC Booking Policy). JMG:-Mt:DT:lf Attachments T:\AGENDA\200 1 lMA Y 160 1 IREGULARIBOOKPOL.MEM T:\AGENDA\200 lIMA YI60 1 IREGULARIBOOKPOL.MEM