98-22972 RESO
RESOLUTION NO.
98-22972
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING AND APPROPRIATING A $100,000
GRANT FROM SMG TO THE CITY.
WHEREAS, SMG is the managing entity for the Miami Beach Convention Center and
Jackie Gleason Theater of the Performing Arts, and
WHEREAS, SMG has made a grant of$100,000 to the City; and
WHEREAS, the Convention Center Advisory Board, in its oversight of the Convention
Center and Theater of the Performing Arts, has made it known to the City that it feels that uses of
the above mentioned grant should be for marketing and programming of the facilities; and
WHEREAS, the Convention Center Advisory Board has prepared the attached
memorandum, dated October 20, 1998, outlining suggested uses for said grant monies; and
WHEREAS, the Administration has reviewed the Advisory Board's recommendations, as
set forth in the attached memorandum, and amended the proposed allocation of monies, per the
accompanying Commission Memorandum.
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 accept and appropriate the allocation of a $100,000 grant from SMG to the City.
PASSED and ADOPTED this 18th
of November 1998
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ATTEST:
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CITY CLERK
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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To:
Cc:
From:
Subject:
Date:
MIAMI BEACH CONVENTION CENTER
JACKIE GLEASON THEATER
MEMORANDUM
Mayor Neisen O. Kasdin
Vice Mayor Nancy Liebman
Commissioner Simon Cruz
Commissioner David Dermer
Commissioner Susan Gottlieb
Commissioner Martin Shapiro
Commissioner Jose Smith
Sergio Rodriguez, City Manager
Mayra Diaz Buttacavoli, Assistant City Manager
Doug Tober, General Manager, SMG
Thorn Connors, Sr. VP-Convention Centers, SMG
Miami Beach Convention Center Advisory Board
SMG Grant
October 20, 1998
As you are aware, SMG, management agent on behalf of the City for the Miami Beach Convention
Center and Jackie Gleason Theater, agreed during negotiations of a new management agreement to
present to the City a grant in the amount of$100,000 for the initial three year term, plus an additional
$33,000 per year upon exercise of the two one-year options to the agreement. While SMG's offer
had no specific requirements for the uses of those monies, the Convention Center Advisory Board,
at its meeting of May 13, 1998, expressed its desire to the City to be involved in all decisions
regarding the usage of those monies and that these funds should only be used for the marketing and
programming of the convention center and theater.
At the request of the City administration, the Advisory Board, at its meeting of October 6, 1998,
addressed the issue of marketing and programming recommendations to the City for the usage of
those funds. Prior to discussion of that issue, the Board was shocked to say the least to learn that,
in fact, the City had already earmarked $17,754 of these monies toward completion of the Jackie
Gleason Theater south side landscape and sidewalk (clearly not marketing and programming) leaving
a balance of $82,246 available. The Board by unanimous vote strongly recommends and requests
that the earmarked funds be replaced and the grant monies in their entirety be used for the original
intent, that of marketing and programming of the facilities, and recommends that any use of these
grant funds for purposes other than marketing and programming not be considered in the future.
The Board, in making its prior recommendation regarding the SMG contract and grant, relied upon
the $100,000 being used for specific marketing and program needs for the benefit of the Convention
Center and Theater. More particularly, these funds were contemplated for use in upgrading the
sophistication of electronic marketing and in directly marketing to associations that will impact the
growth of the City through its convention facilities.
Mayor and Commissioners
Page 2
October 20, 1998
Following consideration of the above, below please find those recommendations adopted by the
Board for proposed uses of the $100,000 in SMG grant funding:
1.) Industry Meeting Function Sponsorships - Within the next two years, the NIiami Beach
Convention Center has the opportunity to showcase itself to two of the preeminent industry
associations representing our potential clients. In December 1999, the International Association for
Exposition Management (IAEM) holds its annual meeting in Miami Beach, with approximately 4000
attendees. This organization is comprised of trade and consumer show managers. In January 2001,
we will host the Professional Convention Management Association (PCMA), an association of
meeting planners and conference managers, with an expected attendance of about 5000. We would
suggest sponsorship of high profile receptions to higWight Miami Beach even more prominently and
help spur interest in future bookings from these events. Cost - $25,000 each function, or $50,000
total.
2.) Audience Development Survey - With $10,000 already earmarked for this purpose from the
CBC funds, we would suggest additional dollars being dedicated from SMG's grant to help further
this important project should more money be needed. Approximate cost - $5,000.
3.) In 1995, SMG contributed $75,000 to seed the Jackie Gleason Theater co-promotion fund.
After four years, we have had a net reduction to the fund of $21,966.12, resulting in a balance of
approximately $53,000. We would suggest an infusion of $20,000 to bolster that fund's balance.
4.) We currently lag behind in the development of a website for the Center and Theater. We
would suggest earmarking a contribution toward development of an exciting site for Internet
marketing and information on the buildings. Cost - $25,000.
We thank you for your attention, and look forward to working with you in the future.
~ITY OF MIAMI BEACH
;/TY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
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COMMISSION MEMORANDUM NO.
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TO:
Mayor Neisen Kasdin and DATE: November 18, 1998
Members of the. CityjO mission
Sergio Rodriguez
City Manager A
A RESOLUTI~ ~F THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROPRIATING A $100,000 GRANT FROM
SMG TO THE CITY.
FROM:
SUBJECT:
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
BACKGROUND:
In its proposal for continued management of the Miami Beach Convention Center, SMG offered to the
City a grant in the amount of $100,000 for use at the City's discretion. During the negotiation period
of the agreement, the Convention Center Advisory Board passed a resolution at its regular meeting of
May 13, 1998 recommending to the City Commission that the grant money be used for the marketing
and programming of the Convention Center and Gleason Theater.
At its regular meeting of October 6, 1998, the Advisory Board subsequently drafted an outline of
proposed specific uses for the grant money, the details of which are outlined in the attached
memorandum dated October 20, 1998 to the Mayor and Commissioners. In summation, the Board
recommended that the monies be directed as follows:
o Sponsorship of hospitality functions during the International Association for Exposition
Management (IAEM) event in Miami Beach in 1999 ($25,000) and the Professional Convention
Management Association (PCMA) meeting in January 2001 ($25,000).
o Additional monies toward completion of an updated Audience Development Survey for the
Theater ($5,000)
o Replenishment of monies to the Gleason Theater Co-Promotion Fund ($20,000)
o Contributions toward development of a comprehensive Internet web site for the Center and
Theater ($25,000)
The check for $100,000 was formally presented to the City at its Board of Commissioners meeting on
October 21,1998.
The Administration has also reviewed potential uses for the grant monies. It is recommending the
appropriation in the following manner:
Agenda Item K.. jG
\ l -~ 8' - S 8;
Date
o $17,754 for change order additions to the landscape/sidewalk project on the south side of the
Jackie Gleason Theater
o $5,000 to fund the Commission waiver of a portion of rent for the First Night Miami Beach
event
o $50,000 to fund the anticipated request from the PowWow Host Committee to cover fifty
percent of the base rent for the tourism trade show to be held at the Miami Beach Convention
Center in May 1999
o $5,000 to augment CBC funding for the update of the Audience Development Survey
o $22,246 for sponsorship of Industry Hospitality functions during the IAEM and PCMA
conferences
CONCLUSION:
The Administration recommends that the Commission adopt the Administration's proposed uses in
order to minimize revenue losses and maximize income to the City.
SR:~1>T:dt
Attad'hment
A:\SMGGRANT.MEM
AGENDA ITEM
DATE