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LTC 302-2003 CITY OF MIAMI BEACH Office of the City Manager Letter to Commission No. To: From: Subject: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez ~ ~ City Manager ~v~ Miami Beach Convention Center Discretionary First Priority Criteria Date: December 17, 2003 Pursuant to Resolution 2001-24394, the Mayor and City Commission approved an amendment to the booking policy for the Miami Beach Convention Center (MBCC) clarifying designation of First Priority status, City Manager discretion concerning same, and further authorized 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. Charles Ilvento was contracted and his recommendations are attached. Said recommendations were shared with the Greater Miami Convention and Visitors Bureau, Hotel Association and Convention Center Advisory Board (CCAB) and based on their input, revisions were made, primarily removing the scoring system, and are in the attachment titles "Discretionary First Priority Criteria for the Miami Beach Convention Center". On December 9t~, the CCAB reviewed and recommended approval of the proposed Discretionary First Criteria for the MBCC. This criteria will be utilized and assist in guiding my Discretionary decisions concerning award of First Priority Designation. To date, Art Basel Miami Beach is the only Convention Center user that has received the Discretionary Award of First Priority Designation. If you have any questions, please do not hesitate to contact me. J MG\C~C-~ra r F:\cmgr~$ALL\LTC-03\DiscretionaryFirstPriorityStudy,CMC.rar,doc c: Christina M. Cuervo, Assistant City Manager Doug Tober, SMG General Manager Donna Shaw, Department of Tourism and Cultural Development Director RESOLUTION' biO, 2001-2~394 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH. FLORII)A. ACCEPTING THE ADMINISTRATION'S RECOMME~A~I~. AS SET FORTH IN THIS RESOLtrrio , APO · s TO ~T~ A CONS~T~ ~ DE.LOP A ~ODOLOGY FOR VE~CA~ OF HOTEL R~M ~ ~ ~NON~~ION" E~ SEEING F~T P~O~Y STATUS AT T~ CO~ION 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 well 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. 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; 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; The Policy addresses instances where events which interrupt their regular presentation schedule may have First Priority status and/or Date Protection revoked; 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; 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 mom usage for both GMCVB-vefified events and those verified by an independent auditor; Events and circumstances not covered in the scheduling policies contained within the Booking Policy may be subject to special conditions, as de~,,ed 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 CC.aB 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 WHF~REAS, 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 conce~fing the above, and non- substantive form revisions; and further authorizing the Administration to reta/n 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 th/s 16th day of April, 2001. ATTEST: MAYOR CITY CLERK APPROVED A~ TO FORM & LANGUAGE & FOR EXEGUTION F:~-~OR~$ALL~IDB-LSG.WRK'tBOOKPOL.RES ADMIN DRAFT - 4/2001 MIAMI BEACH CONVENTION CENTER MIAMI BEACH, FLORIDA BOOKING POLICIES STATEMENT OF PURPOSE: Tho Misrni Beach Convmlion Center (the "MBCC" or th~ "Center") is e national ami in~mational convention, tradeshow, and mma.purvo racm ownod by City of Miami Beach and operated by SMG. The MBCC was enlarged and remodeled in part with Convention D~velopment Tax proceeds with the primary objoctivc of promoting and facilit~tlng events and a~ivitics which have a significant impact in !~'*~ of Convention D~vclopment Tax generated. In addition, tbo MBCC was d~vclopod with a moondaty obje~vo of providing services rout facilities to respond to tho neech of County and local activities which promote business and gmendly ~ tho quality of lifo for tho community ~ MBCC sc~s. When booking tbo MBCC, comidm~on shall bo given by both tho Bureau and the Conventio~ C. zn~ management to the following factor~: a) b) c) d) O Signiflc~t impact in terms of Couventim D~velopment T~x gnmet~.__; Total number of howl roo~ required; Projected r~enuc to tbo MBCC both in roms of dirmt space r~ad r~vmu~, as well ss projo:~xl revenue from concessions and other building grvic~s; Tin~ of year; Potential for top,at bo~n~; and ]h~'~vious history and experiell~ of tho pot~_ rial ~ with respect to uso of ~ facih'ti~. II. SCHEDULING PRIORITrgS: A. Mr~.JPrioritv Events: Generally speaking, first priority for sched, lin~ fa~ilitie~ and a~-~--~ in thc MBCC is availablc to ~gional, national and international convemions, trade shows, cultural shows, corporate meetings and similar activities which ar~ not open only to thc general public, and have a significant impact in terms of Convcntion Devclopn~nt Tax genorate~ In order to be considered for a Firs~ Priority d~signation, an went sh~ll- ~, require in excess of 115,000 grins square feet of ~xhibit spac~ conuacted in tbo MBCC; AND EITHER ~. r~quiro a minimum of th~ nights with 1 $00 hotel rooms OCcupied on tho Peaknight in Miami- OR bo a long stana!n~ show, dd'm~d as one which has a mi,~imum of 20 cemecufive ~ usag~ in MBCC under the same ownership, is in good standing, which inch~s being current on all prior debts, and has paid all contractual obligations in a tirn~ly f_a. shion to the facility. If the show has multiple cwnts in ConverSion D~clopment Tax ;,~,~ct and hotcl room counts are based on prior hislory of thc evmt and are subject to verification by (1) the Bureau; or (2) at us~'s expense, a qu~lifled independent surveyor pre-approved by the Convention Center Advisory Board, provided that such surv~dor's results shall be subj~t to review and approval by the Convention Center Advisory Board. In order to be considered for First Priorlt~ designation, an event shall have demonstrated the hotd room count history durine uresontation of the.identical event .dgher in Miami-Dado County or, in the case ofeven~ which move from cit~ to ciW on a rotj~ti0n~l basis or are relocatinR from another location, the h~tel room count history of the ~denfical ~ve~t shall be verified by the Bureau u~inn eenerafl¥ ngcepted ~ndustry st~d?rds. ( i~, IACVB Cine~ system or other] for svch history, verification. Within tho First Priority cat~gory, the Bu~,au will give pr~ferea~ to th~ event with tbe moat significant impact in terms of Convention Development Tax generated. For puruo~e~ of conflict re~olution, eve~nt~ havine ,-*;ned First ]¥1oritv.d,~io~*fio- through the hot~ neak room night verification oro~ess shah have pr~,~g~ over thosg ~ven~ hax~ng, attained First priority, desitnation ~hrQu~h the 20 vent nrocess. In the event that First Priority Event status is ~-,mted, b~d in part upon the hotd room o~ peak night re~ as set forth above, the Conventio~ Crater Advisory Board sludl requh'e re~fl~cation of s aid hotel room R~lui~-~mient from First Priority Events every five (5) year~ fi'om the must recent ~ of eerdficafion. In ~e inst~ tha~ ~n event interFuots its reeular scheduline, defined a~ failinz to ~nke ulace wi~in six_(6) month~ of its a,~xt nn~c~ioated nre~entagion, First Priority status may be r~vgked. B. $~co~d Pri0.ritv Eventg Second priority fo~ s~he&dia$ facilities and d~__t~_ in the MBCC is available to consumer or public e~hibifiom, lzadeshows (opm to the trade oaly), local corporate meetings, special evgms, anter~siament events, busi~ss rackings, ami other a~ivitics which essmfially draw f~m or appeal to the general public and/or local regional attend~s and participants. Within the Se~nd Priority category, the MBCC will give prefe~oe to rmm~g public shows *,~ tradeshows held on an ~--ual basis with a provca rw, ord of success at the MBCC, which have predm~ si~t, nificant revenue to the MBCC, and have a significant ~a~oa~t in t~f~s of Convmfion Devalol~iient Tax generated (Conventio~ Development Tax impact data shall be provided by the user). The MBCC may offer alternate dates in a given year which may result in termination of other Soeoad Priority scheduling reservations. Thc foregoing trivia may also be usod by h~ MBCC to ~ or s~loct betwoe~ ~ Priority F, vents in tho case where: a sc, ho~din~ reservation for a First Priority Event impacts tentative scheduling reservations for two or more Second Priority Events. C. ~ Subject to the prioritim sot £o~ alcove, the General Manager may exetmi~ his diseretion ns to thc issuance, modificnfio~g or tc~minnfion of scheduling reservations. 2 ADMIN DRAFT - 4/2001 both the sponsor ~fl_ thc General Manager, no conflicting scheduling will bc m~lo during a reasonable period to preparation, negotiation, ~d exo~n~tion of a Lease Agreenm~ IV. PROTECTION CLAUSE: A Protectim Clauso shall, ulxm the rec~~ of tho Coaveation Center Advisory Board, tho ~ Manager, and subject to tho approval of th~ City Manager, bo gran~l to recurring local, reg/onal, and international public and Iradeshows with a proven reo~ of suc~ss, defined lmafin as the successful compl~ion of at least two consecutive shows in two years, which have produced___ si~ificant revenue to the MBCC. If granted, such Protection Clause will be included in thc Lcas~ Agreement and, thereafter re-reviewed cve~y three (3) years by the Convention Cente~ Advisory Board and tl~ G~cral Manager, and subject to thc approval of tl~ City Manager, in futu~ Leosc Agt~mb~. Notwithstanding tho foregoing, the granting of a Protection Clause in a Lense Agreement sholl not vest fray fight (s) or reliance on the part of thc Lessee as to tl~ granting of said Clause in subsequent or future Lease Agreements, but shall at ~11 times bo subject to the reviow and approval procc&u~ set foflh here: In eonsidexafion for rig eootinn~fion of a Dat~ Protection dame i~lusion in subsequent leas~ agreements, the Convention Center Advisory Board recommemhtion ami City Manager approval shall consider th~ following criteria: Th~ Protection Period shl] not cxceod a total of sixty (60) days, plus il~ show deys. Thc number of days prior to and after thc event shall bo the subject of agreement bOcwc~a tl~ Lessc~ and tho C-cmxal Maflag~, b~t 81 miqiml~m of fifu~ (15) days shol[ bo required oil ~ sido of th~ ~wenL Ul~t rig recommandatlon of the Convention Cent~' Advisory Board, a Protection Clause in excess of sixty (60) days may be granted for highly competitive events with highly significant revenue to thc MBCC. In ~ke i~nee that an.event interrupt~ its reLruhr schedulim~, defined as failin~ to take Place wi*hln Six (6~ months of ~ ~e~ antidvmted pre--ration, its l~t¢ Protection status rosy be revoked. If a Progcfion Chusc is granted, it will read as follows: PROTECrlON CLAUSE: Lessor agrees that it will not le~ any portion of th~ Conv~tion Cent~ facility to any Competing Event for the period co,,~gn¢ing . days before Less~'s first show day, and conch~ding ... days after Lcssc~'s last show day (tl~"Proto~onPcriod~. A Event" is boreby deft-ed as an event which has thirty p~xcent (30%) or more oftbo total numbor of exhibitors/booths in the sam~ event showing/selling product lines in the Leaseo's oveng provided, however, that a show that is open to tho publio shall nev~ be dg~med a Comlgting Evont with a show open only to the trade, and vice versa. Tho detc~ ~,ination ofwhoth~ or not ADMIN DRAFT - 4/2001 an event is a "~ Eve~" shall be solely ~ the disa'etioa of the General Manager, and shall be b~sed upon the produ~ lines in the proposed event's prior shows. DEPOSIT SCItEDULES: Deposits ar~ required for all a~tivities upon execution of a fomud MBCC Lease Agreeing. A. Fir~ Priorltv Evems: A d~posit in the ~mount of one day's minimum ~teed r~l per hall, or such other deposit as the G~rai MsmsSer may aut~rize, is r~quired ~on execuli~m d the Lease Agr~ment. For events lcs~sed several years or more i~ advance, special mmn~mm~s may be n~gotiau:d, at the C~a~'s optie~, for a lesser deposit upon le~se execution, with the deposit bshmce due md payable sixty (60) days in udv~nce of the event. B. ~e~ond Prloritv Ev~s: A minimum dqoosit ~s~ll be required ul~m ex~mfi~ oftbe Lease Agreeme~ as follows: org day's mininmm guaranteed rental for tl~ first hall, ami an additicm133- 1/3% of oho day's l!ninimum guaralltood l~tttal for each additional hall. However, fi~t-time events without a past history of success, and cvent spomors with inadequate references, or prior event sponsorships, a record of slow payment, etc., may be required, at the C~nter' s option, to r~ait up to one hundred pcccent (100%) of anticipated rental and related expenses upon executiou o£ Lease VI. VARIANCE FROM POLICY: Ev-,~-ts gnO ~ircum*t.~e~ not c~ in ~ a~ S~ulh* ~ mv h mbi~ t~s~ conditions, an¢M ~ed aDD.Dilate by the C~ Mnn*~. No variance ~om t~ ~Mr's DO,Jells, aS ~O~t~ in ~ above ~s. may ~ made ~hoot fi~ ~R subm~ to ~e ~erM ~aRer and CC~ for ~Midera~n. REV. 120'/89, 060890, 070892, 060398, 051299, 070799, DRAFT 4/2001 CITY OF MIAMI BEACH CITY HALL '1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:~=l,mlami.-beach.fl,us co., ISS,O. 32 TO: FROM: SUBJECT: Mayor Neisen O. Kasdin and DATE: May 16, 2001 Members of the City Commbsion Jorge M. Gonzalez ~/'~ City Manager 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. ADMINISTRATION RECOMMENDATION: Adopt the Resolution. 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 2001. 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 d~monstrated a peak night hotel room usage of at least 1500 rooms countywide, or events which have been produced AGENDA ITEM T:,u~,GENDA~.001XMAY 1601XREOULARXBOOKPOL MEM Commission Memorandum Booking Policy May 16, 2001 t~age 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 al'ter 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 mom 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 eon*ained 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 lanlP-~age 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 bo 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:LttGF--NDAk2001 ~/Ltt Y 160 I~.R. EOULAR~BOOKI~OL.MEM Conunission Memorandum Booking Policy May 16, 2001 Page 3 res~ 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 SM(i, 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. 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 moms through the (lreater 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:I~B:DT:If Allachments T:'~GENDAk200 I~.{AY 1601'~REGULAR'~'BOOKPOL'MEM T:'x. AGENDAL2001 \MAY 160 l~REOULAR~BOOKPOL.h4EM AFTERACTION Ma), 16, 2001 City of Miami Beach City Clerk=s note: Cross reference: Service America 6:29:55 p.m. R7M Commission Memorandum No. 324-01 A Resolution 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 ANon-Conventior~ Events Seeking First Priority Status at the Convention Center. (City Manager=-s Office) ACTION: Resolution No. 2001-24394 adopted. Motion made by Commissioner Smith to adopt the Administration=s recommendation; Seconded by Commissioner Liebman; Voice vote: 4-3; Opposed: Vice-Mayor Garcia, Commissioner Bower and Cruz. Mayra Diaz Buttacavoli to handle. Mr. Stu Blumberg spoke. Mr. William D, Talbert, III spoke. Mr. Joe Fontana, Chairman of the Miami Beach Convention Center Advisory Board, spoke. Mr. Bob Goodman spoke. Commissioner Dermer feels there should be some objective criteria developed so that the City Manager can make consistent and fair decisions. Mayor Kasdin wants guidelines incorporated as an amendment to this resolution. Administration and Legal to come back with standards and/or objective criteria to assist the City Manager in evaluating and recommending variances to the policy. Mayra Diaz Buttacavoli to handle. City Clerk=s Note: Included with this item is a copy of the Miami Beach Convention Center Booking Policies Prepared by the Office of the City Clerk M 5$CMB\CITYCLERXAFTERACTx2001L~FERACTIONSXA~ 160 I.DOC MIAMI BEACH CONVENTION CENTER ALTERNATE FIRST PRiORITY CRiTERIA ]{VALUATION PROCEDURE R~port OctOber 17, 2002 CHARLES L. ILVENTO, P.A. CHARLES L. ILVENTO, P.A. CE.T,F~ED PU~UC ACCOU.TA~T THE SENATOR BUILDING 13899 BISCAYNE BOULEVARD-SUITE 144 MIAMI, FLORIDA 33181-1600 TELEPHONE (305) a_~. 1120 FAX (305) 868-.4357 E-MAIL ~ MEMBER: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTAN'I S November 20, 2002 Mr. Douglas W. Tober, General Manager Miami Beach Convention Center 1901 Convention Center Drive l~inmi Beach, FL 33139 Dear Mr. Tober: In accordance with the terms of our engagement, enclosed is our report entitled the Miami Beach Convention Center Alternate First Priority Criteria Evaluation Procedure. We appreciate the opporttmity to again be of service to the City of Miami Beach, SMG and you. Sincerely yom, Charles L. Ilvento, P.A. Miami Beach Convention Center Alternate First Priority Criteria Evaluation Procedure Introduction In this proposal we have made every effort to expand the reach of the Alternate First Priority Status Evaluation Procedure to include many factors that can be measured when trying to assess the value a particular show or event may have on the City as a whole. The Questions such as, which areas of the local economy should benefit, and to what degree, should be addressed. What other activities are taking place before, during, and after the event. Due to the event-taking place whom are the people coming to the community? And what can we look ahead to from them? By taking each factor and breaking it down into elements that cover as many of the aspects of a show or event activities as possible, we have allowed for a process to weigh each applicants request for First Priority Status, in a consequential way. Both subjective and objective criteria will have to be employed to compose a complete evaluation. Subjective criteria because many of the positive and negative aspects of an event, as well as the true impact an event will have is not be known prior to the event taking place. Empirical information from past shows at other places, planned events surrounding the main event, duration of the event, and of the type and economic status of the attendee and exhibitor can help the assessing body make educated projections as to what they can expect from the event. We have developed a scoring system using a list of seven (7) elements (criteria) with an assigned weight of 10-25 for each item relative to each other and the economic impact on the Miami Beach Convention Center (Center) and the Miami-Dade Community. The sum of the seven scores is the value ranking of the event. Once the event has been valued, the scoring can be used as an ongoing benchmark to rate past performance and, in some cases, as a standard against which other events are judged. We have tried to build in a degree of flexibility so that the evaluators can be free to value each aspect according to their own beliefs and relative sense as to what is important. Furthermore, elements that do not apply can be left out without affecting the overall validity of the process. 1 Charles L. ]lvento, CERTIFIED PUBLIC ACCOUNq'ANT Miami Beach Convention Center Alternate First Priority Criteria - continued Elements 1. Type of Event (10 points) a. Public or Private Attendance b. Attendee Demographics c. Exhibitor Demographics d. One-time or Recurring 2. Economic Impact to Center (10 points) a. Facility Rental b. Food and Beverage c, Other Ancillary i. Electrical ii. Telecommunications iii. Internet / Networking iv. Audio Visual v. Production Labor d. Facility Labor Demands 3. Economic Impact to City (25 points) a. Parking Income b. Hotels i. Attendees ii. Exhibitors c. Restaurants / Nightlife d. Event Contractors e. Local Transportation i. Shuttle Services ii. Taxi Services iii. Rental Curs f. Tax Generation i. Convention Development Tax ii. Resort Tax iii. Sales Tax 4. Ancillary Events (10 points) a. Related Events and Conferences b. Hospitality Functions / Spouse Programs / Attractions 5. Infrastructure Demands (15 points) a. Quality of Life Effects b. Security Requirements c. Other City Services Effects 6. References (10 points) a. Miami Beach / Miami-Dade County History b. Other Venue History c. Other Destination History 7. Prestige Value (20 points) a. Extent of Mass Media Coverage b. Tourism Promotional Value c. Commerce Promotional Value 2 Charles L. Ilvento, P.A. CERTIFIED PUBLIC ACCOUNTANT Miami Beach Convention Center Alternate First Priority Criteria - continued Element Explanation Type of Event (10 Points) The Type of Event covers aspects of the show that relate to what demands the facility is likely to experience and what kinds of attendees and exhibitors can be expected. Other benefits or detractors may stem from the hosting of one show versus another. Community profile, reoccurrence and nature of the venue all are components to be evaluated in the Type of Event element. Economic Impact to Center (10 Point s) In this element the evaluator is making an assessment as to the revenue potential of the show to the Center. Not only in terms of rental but also considering other ancillary fees and revenue potential that the Center can garner from the services that the show will require. The economic impact on concessionaires and other Center based stakeholders should also be a consideration. Economic Impact to City (25 Points) To a large degree the Center must also consider the overall economic impact the show will have to the City at large. Tax generation and City fees, inclusive of the additional sales tax revenue from visitors and increased local consumption patterns can provide a significant amount of revenue to the City and the local businesses. The propensity of the various attendees and exhibitors to spend money in local business, hotels, shops, restaurants, etc. and frequent local tourist attractions, use local public transportation, taxis, rental cars and entertainment establishments needs to be weighed and included in the overall assessment of the show as a net revenue contributor to the local economy. Ancillary Events (10 Points) Another important aspect of some shows is the value of ancillary events and conferences that may surround the event like spouse programs and golf tournaments. These may or may not be side events directly managed or a part of the event under review but rather shows and conferences from other sponsors that take advantage of the attendee population resident at the main show. The venues for these other ancillary shows could 3 Charles L. Ilvento, P.A. CERTIFIED PUBLIC ACCOUNTANT Miami Beach Convention Center Alternate First Priority Criteria - continued be at local hotels, arenas and parks and support the large event. Side events of this type may be considered a positive, from the additional economic impact they may provide, or they may be considered a detriment depending on the nature and history these side events have. Infrastructure Demands (15 Points) The stress that a show may place on the various City services is considered in the evaluation process. Expenses associated with additional crowd control, policing, security, parking and traffic are considered in this section. More intangible aspects of the effects that an event may have relate to the quality of life aspects that may positively or negatively impact the local flavor of the City and the lives of the resident population. References (10 Points) The candidate event should provide references from other locations that it has used. The evaluation should consider not only the references themselves but the quality of the references and the sources from which they come. A basket of references that cover not only the previous venue convention center but also the references from that City, its police and perhaps any civic organization that the past venue impacted showing the good citizenship and positive economic impact the event has had in other places where it has been held. Prestige VaLue (20 Points) Is the event under consideration a high profile event with good name recognition and a good reputation? The evaluation must try to assess the importance of having the City and the event linked in the press. All the positive results that may be derived from the association should be considered. It may be that the value of having the event lies in the other high profile events that traditionally follow this one. Also, positive publicity surrounding a high profile event may have had the effect of long term increases in local tourism and free positive publicity for the area as a whole increasing general business activity. 4 Charles Li Ilvento, P.A. CER'nFaE~> PUBLIC ACCOUNTANT Miami Beach Convention Center Alternate First Priority Criteria - continued Conclusion With these Elements we have sought to provide a framework and guideline that the Center can use to fairly assess the merits of an event seeking First Priority Status. The total point value for all seven elements is one hundred (100). By assigning one or more evaluators and allowing them to rate or grade each candidate event on the basis of the Elements provided, this becomes a process whereby results can be tabulated to arrive at an overall score out of the total possible 100 points. The City then utilizes this score along with other criteria to determine whether an event is given First Priority Status. 5 Charles L. Ilvento, P.A. CERTIFIED PUBLIC ACCOUN"rANT