R7S-Approve Amended And Restated Booking Policy Guidelines For MBCCCOMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Accepting The Recommendation Of The Finance And Citywide Projects Committee, And Approving
Amended And Restated Guidelines For The Miami Beach Convention Center.
lntended Outcome
The City of Miami Beach approved the Booking Policy for the Miami Beach Convention Center on June 7, 1989,
which was subsequently revised on October4, 1989, June 6, 1990, July 8, 1992, June 3, 1998, May 12, 1999,
July 7, 1999, and April 16, 2001. The renovation and expansion of the Miami Beach Convention Center
Renovation will begin immediately following Art Basel in Miami Beach 2015 and is expected to be completed in
2018. Group business generally books their events more than 24 months (2 years) into the future and the City
needs to decide, in very near future, what if any changes to the Booking Policy should be considered in order to
set booking goals for the Greater Miami Convention and Visitors Bureau (GMCVB) and Spectra (formerly Global
Spectrum). The current Booking Policy includes First Priority designation for long standing shows, defined as one
which has a minimum of 20 consecutive yea/s usage in Convention Center under the same ownership
(Grandfathered First Priority) and this is a rather unique aspect of our policy and not something found in other
destination's booking policies. The Convention Center is below the national average as it pertains to the total
number of annual conventions held in the Center.
The Amended and Restated Booking Policy Guidelines include the following:1. Clarifies room night requirements for First Priority designation;2. lncludes a second and third priority booking category with corresponding room night requirements;3. lncludes the addition of a Marquee Events category, which upon the written recommendation of the City
Manager and a 5/7ths vote of the City Commission, grant First Priority status to unique, high profile events
that the City determines will bring significant benefit to the City and/or Miami-Dade County in terms of overall
economic impact;
4. Requirement of an executed License Agreement with the Convention Center to be considered a confirmed
booking;5. Reduction of move-in and move-out days required for an event;6. allows for the rooms night verification to be used as a method of confirming peak room nights generated as a
result of the event.
City staff and the City Attorney finalized the Booking Policy, and the CCAB unanimously recommended in favor of
the revisions. Finally, the City, Spectra (formerly Global Spectrum) and National Marine Manufacturers
Association (Miami lnternational Boat Show) executed a Termination and Release Agreement, which terminated
the License Agreement with the Miami lnternational Boat Show for 2016 and gave them a Right of First Refusal
lor 2018 and 2019.
A6ENDA rrem RJ S
lmprove Alliance With Key Business Sectors, Namely Hospitality, Arts, & lnternational Business With A Focus On
Enhanced Entertainment, & Tourism
Supporting Data (Surveys, Environmental Scan, etc.): The 2009 Community Satisfaction Survey reported
of resident respondents feel the tourism industry contributes "about the right amount" to the quality of life,
13.3% indicated the tourism industry contributes "too little" to the of life.
Item Summary/Recommendation :
The Finance and Citywide Projects Committee discussed the Convention Center Booking Policy at several
meetings and ultimately recommended approval of the revisions to the Convention Center Booking Policy at the
April8,2015 meeting.
Financial lnformation:
Source of
Funds:
Financia! lmpact
Max Sklar, Tourism, Culture and Economic Development Director
E MIAMIBEACH oerc 14'lS977
r915.2015
City of Miomi Beoch, ,l700 Convention Center Drive, Miomi Beoch, Florido 33,l39, www.miomibeochfl.gov
COMMISSION MEMORANDUM
TO:
FROM:
Honorable Mayor Philip Levine and
Jimmy L. Morales, City Manager
DATE: September 2,2015
SUBJECT: A RESOLUTION OF THE MA AND CITY COMMISSION OF THE CIry
OF MIAMI BEACH, FLORIDA, ACGEPTING THE RECOMMENDATION OFTHE FINANCE AND CITYWIDE PROJECTS COMMITTEE, AND
APPROVING AMENDED AND RESTATED BOOKING POLICY GUIDELINES
FOR THE MIAMI BEACH CONVENTION CENTER.
RECOMMENDATION
Adopt the Resolution.
FUNDING
N/A
BACKGROUND
The City approved the Booking Policy for the Miami Beach Convention Center on June
7, 1989, which was subsequently revised on October 4, 1989, June 6, 1990, July 8,
1992, June 3, 1998, May 12, 1999, July 7, 1999, and April 16,2001. The most recent
revision on April 16,2001 was approved pursuant to Resolution No. 2001-24394 which
clarified designation of First Priority status and City Manager discretion concerning
same. The Booking Policy has not been revised since 2001.
As you know, in April 9,2014, Request for Qualifications No. 2014-1 42ME for the Design
Criteria Professional (DCP) services for the Miami Beach Convention Center Renovation
was awarded to Fentress Architects. Construction is anticipated to begin immediately
following Art Basel in Miami Beach 2015 and is expected to be completed in middle
2018. Group business generally book their events more than 24 months (2 years) into
the future. With that in mind, the City needs to decide, in very near future, what if any
changes to the Booking Policy should be considered in order to set booking goals for the
Greater Miami Convention and Visitors Bureau (GMCVB) and Spectra (formerly Global
Spectrum).
ln considering potential changes the type of event (convention, trade show and
consumer shows) determines what demands the facility and surrounding area are likely
to experience and what kinds of attendees and exhibitors can be expected. 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
the City Commission
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Convention Center Booking Policy
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amount of revenue to the City and the local businesses. The propensity of the various
attendees and exhibitors to spend money in local businesses, hotels, shops, restaurants,
tourist attractions, use of local public transportation (taxis, and rental cars) and
entertainment establishments need to be considered and included in the overall
assessment of the show as a net revenue contributor to the local economy. The purpose
of the Convention Center is not to make money, but to generate business for our hotels
and restaurants, which in turn generates resort tax revenue.
Below is a table event im
Example
2014 Average
Attendance *
Economic lm
Building Revenue
arnve
Traffic I* Excludes Aft Basel and the Boat Show with 70,000 and 140,000 in attendance
respectively.
The current Booking Policy includes First Priority designation for long standing shows,
defined as one which has a minimum of 20 consecutive year's usage in Convention
Center under the same ownership (Grandfathered First Priority). lf the show has
multiple events in MBCC in a calendatyear, the first priority designation applies to only
one of the show events in the calendar year. This is a rather unique aspect of our policy
and not something found in other destination's booking policies. These grandfathered
events include Antique Show, Miami lnternational Boat Show, Jewelry lnternational
Show, Miami Auto Show and the Home Show. With the exception of Jewelry
lnternational Show, all are consumer shows. The Convention Center is below the
national average as it pertains to the total number of annual conventions held in the
Center.
ln considering Booking Policy changes, the City Commission should also be aware that
Grandfathered First Priority shows are currently able to obtain License Agreements for
use of the Convention Center up to 36 months prior to the show. Group business
(conventions) typically book shows at least 24 months in advance. A large group
attempting to book during a date pattern conflicting with a Grandfathered First Priority
show, even if they contract for more hotel rooms on peak, would not be able to book in
the Convention Center unless the Grandfathered First Priority agrees to move their
dates. There have been examples in the past where Grandfathered First Priority shows
have accommodated the destinations desire to book another show during their dates,
but there are also examples where the destination has lost conventions as a result of
this policy.
The Administration believes that peak room nights should be the overarching
requirement used to determine whether an event receives First Priority designation.
Additionally, the Booking Policy also allows for the rooms night verification to be used as
a method of confirming peak room nights generated as a result of the event. The City
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Convention Center Booking Policy
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has a prescribed verification process that is used which allows an independent third
party accounting/auditing firm licensed in the State of Florida to be used to verify the
peak room nights. Audited reports will be submitted to the City along with the statement
from the auditor indicating their validation of the method of data collection, the accuracy
of the data as determined by their testing of the data, and their agreement with the
conclusions of room night consumption as presented by the client.
The Administration worked with Spectra (formerly Global Spectrum), the GMCVB and
Strategic Advisory Group to prepare revisions to the Booking Policy that prioritizes room
night generating business. A draft of these changes is attached at Exhibit "1". The
following highlights the changes being recommended:
o Addition of a second and third priority booking category. Addition of a Marquee Events category, which upon the written recommendation
of the City Manager and a 5/7ths vote of the City Commission, grant First Priority
status to unique, high profile events that the City determines will bring significant
benefit to the City and/or Miami-Dade County in terms of overall economic
impact.. Requirement of an executed License Agreement with the Convention Center to
be considered a confirmed bookingo Reduction of move-in and move-out days required for an event
The Finance Committee discussed the Convention Center Booking Policy at several
meetings and ultimately recommended approval of the revisions to the Convention
Center Booking Policy at the April 8, 2015 meeting, with a provision that final review is
done by City Attorney's Office. The Committee also requested an agreement between
the city and the Boat show be finalized before the item goes to commission.
Staff worked with the City Attorney to finalize the Booking Policy and also presented the
final version to the CCAB. The CCAB unanimously recommended in favor of the
revisions. Finally, the City, Spectra (formerly Global Spectrum) and National Marine
Manufacturers Association (Miami lnternational Boat Show) executed a Termination and
Release Agreement, which terminated the License Agreement with the Miami
lnternational Boat Show for 2016 and gave them a Right of First Refusal for 2018 and
2019.
CONCLUS!ON
The Administration recommends the Mayor and City Commission approve the Amended
and Restated Convention Center Booking Policy.
JLM/KGB/MAS
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T:\AGENDAV0l S\September\TCED\Booking Policy City Commission Memo.docx
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RESOLUTION TO BE SUBMITTED
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