RESOLUTION 92-20543 r
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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 .
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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
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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. . .
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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
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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.
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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
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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.
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ORIGINAL
.iESOLUTION NO. 92-20543
Approving booking! pbLities:' for the Miami
Beach Convention Center.
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