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98-22759 RESO RESOLUTION NO. 98-22759 A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AN AMENDMENT TO THE BOOKING POLICIES FOR THE MIAMI BEACH CONVENTION CENTER CLARIFYING FIRST PRIORITY EVENTS. WHEREAS, the Mayor and City Commission has previously approved Booking Policies for the Miami Beach Convention Center on June 7, 1989, which policies were revised on October 4, 1989, June 6, 1990 and July 8, 1992; and WHEREAS, On January 21, 1998, the Mayor and City Commission requested that the Convention Center Advisory Board (CCAB) review the existing Booking Policies in an effort to give higher priority to cultural, art, and entertainment events held at the Miami Beach Convention Center (MBCC), which are not classified as a priority one; and WHEREAS, the CCAB reviewed the Booking Policies and proposes the attached amendment to the Booking Policies. 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 ATTACHED AMENDMENT TO THE BOOKING POLICIES FOR THE MIAMI BEACH CONVENTION CENTER, CLARIFYING FIRST PRIORITY EVENTS. PASSED and ADOPTED this ~ day of June , 1998. 11 AYOR ATTEST: .~ _~O ~. CITY CLERK SR/MDB/lcd Attachment F:\CMGR\$ALL \COMMEMO.98\BKGPOL. RES APPROVED ~ TO FORM & lANGUAGE & FOR EXECUTION 4f ~/1-:- it( !tomey r;t,)/f~ Dote 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 SMG. The facility was enlarged and remodeled 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 (24) 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. 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. 1 II. SCHEDULING PRIORITIES: A. First Priority Events. Generally speaking, first priority for scheduling facilities and date 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, 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 also require either a minimum of three nights with 1500 hotel rooms on the peak night in Dade County, or be a long standing show with a minimum of 20 consecutive years usage in the MBCC provided that the impact of the Convention Development Tax generated shall still apply as referenced in Section II. A. 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. 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 General Manager of the MBCC (the "General Manager"). 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 P.'iority 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. 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 General Manager, 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. 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 the Lessee's event, the Lessee shall agree to use its best efforts to move its event a few days either way 2 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 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. Subject to the priorities set forth above, the General Manager may exercise his discretion as to the issuance, modification, or termination of scheduling reservations. ill. 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 tradeshows 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 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 offifteen (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. 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 number of exhibitors/booths 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 determination of whether or not 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. 3 IV. DEFINITION OF TERMINOLOGY: 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 the release of a prior reservation which is considered first option. FffiST 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 General Manager, 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 General Manager has a good faith request in writing from another First Priority Event for the same dates. CONFffiMED: 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 General Manager, pending the preparation of a lease agreement. In the event such a letter of confirmation is signed by both the sponsor and the General Manager, no conflicting scheduling will be made during a reasonable period to permit preparation and execution of a lease agreement. LONG STANDING: Long standing show is defined as one which has a minimum of 20 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 MBCC in a calendar year, the first priority designation applies to only one of the show events in the calendar year. 4 HOTEL ROOMS ON PEAK NIGHT: One of the criteria used for determining whether an event is a First Priority Event is 1,500 "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 General Manager. V. DEPOSIT SCHEDULES: Deposits are required for all activities upon execution of a formal1\1BCC lease agreement. FffiST PRIORITY EVENTS: A deposit in the amount of one day's minimum guaranteed rental per hall, or such other deposit as the General Manager may authorize, is required upon execution 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. SECOND PRIORITY EVENTS: A minimum deposit will be required upon execution of the 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 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 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 General Manager. DWT:gm 120789 Rev. 060890 Rev. 070892 Rev. 060398 Rev. f: \convcntr\gina \bkgpol. 9 8 5 CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 .,ttp:\ Ici. miami-beach. fl.LJ5 COMMISSION MEMORANDUM NO. E.:.1.a TO: Mayor Neisen O. Kasdin and Members of the City Com ission DA TE: June 3, 1998 FROM: Sergio Rodriguez City Manager SUBJECT: A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY OF l\HAMI BEACH, FLORIDA, APPROVING AN AMENDMENT TO THE BOOKING POLICIES FOR THE MIAMI BEACH CONVENTION CENTER CLARIFYING FIRST PRIORITY EVENTS. ADMINISTRA TION RECOMMENDATION Adopt the Resolution. BACKGROUND On January 21, 1998 the City Commission requested the Convention Center Advisory Board (CCAB) to review the existing Booking Policy in an effort to give higher priority to cultural, art, and entertainment events held at the Miami Beach Convention Center (MBCC) which are not classified as a priority one. The CCAB reported to the Mayor and City Commission the CCAB's recommendation to remain with the existing Booking Policy. ANALYSIS: Upon further review and discussion, the CCAB reviewed the Booking Policy and proposes the following amendment to the MBCC Booking Policy approved by Resolution No. 92-20543 by the Mayor and City Commission on July 8, 1992: A. First Priority Events. Generally speaking, first priority for scheduling facilities and date 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, 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 also require either a minimum of three nights with 1500 hotel rooms on the peak night in AGENDA ITEM~ DATE fa -3- ~8 1 Dade County, or be a long standing show with a minimum of 20 consecutive years usage in the MBCC provided that the impact of the Convention Development Tax generated shall still apply as referenced in Section II. A. 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 (20) 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. IV. DEFINITION OF TERMINOLOGY: LONG STANDING: Long standing show is defined as one which has a minimum of 20 consecutive year's usage in MBCC. 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 MBCC in a calendar year. the first priority designation applies to only one of the show events in the calendar year. The adoption of the proposed amendment would place the Auto Show as a first-priority event without having to fulfill the requirement of booking 1,500 room nights on a peak day of the event. In the near future, other events such as Antique Show, Jewelry Show and Flea Market would qualify when the event has been in the MBCC for 20 consecutive years and is in good standing. CONCLUSION: The Administration concurs with the recommendation of the CCAB as it allows for the priority in booking of events not meeting 1,500 room-nights when the event has been in the MBCC for 20 consecutive years and is in good standing. The Administration recommends that the Mayor and City Commission approve the Resolution. SR:l\1DB:lcd Attachment F:\CMGR\$ALLlCOMMEMO.98\BKGPOL.SB 2