Item Coversheet

Resolutions - R7  K




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:June  5, 2019
 



SUBJECT:

A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A SPONSORSHIP AGREEMENT BETWEEN THE CITY AND MIAMI SUPER BOWL HOST COMMITTEE, INC. ("SBHC") FOR EVENTS RELATED TO SUPER BOWL LIV, SCHEDULED TO TAKE PLACE ON FEBRUARY 2, 2020, WHICH SPONSORSHIP AGREEMENT INCLUDES: (1) A WAIVER OF CITY SPECIAL EVENT PERMIT FEES IN THE AMOUNT OF $178,250; (2) A CASH SPONSORSHIP IN THE AMOUNT OF $400,000 IN SUPPORT OF SBHC EVENTS TAKING PLACE IN THE CITY OF MIAMI BEACH; (3) A CITY CONTRIBUTION FOR SBHC EVENT-RELATED PUBLIC SERVICES IN AN AMOUNT NOT TO EXCEED $250,000; (4) A WAIVER OF MBCC FACILITY RENTAL FEES IN THE AMOUNT OF $857,540.80 FOR THE "SUPER BOWL EXPERIENCE" EVENT AT THE MBCC, SUBJECT TO THE NFL'S AGREEMENT TO PROVIDE A PUBLIC BENEFIT CONSISTING OF A MIAMI BEACH RESIDENT DISCOUNT OF FIFTEEN PERCENT (15%), TO BE APPLIED TO THE PURCHASE OF TICKETS TO THE "SUPER BOWL EXPERIENCE" AT THE MBCC; (5) CITY'S MATCH CONTRIBUTION IN THE AMOUNT OF $250,000 FOR THE INSTALLATION OF AN ARTIFICIAL TURF FIELD AT MIAMI BEACH HIGH SCHOOL; AND (6) THE CREATION OF A SUPER BOWL "CLEAN ZONE," TO PROVIDE SBHC WITH COMPETING EVENT PROTECTION WITH RESPECT TO THIRD-PARTY EVENTS REQUIRING A CITY SPECIAL EVENT PERMIT FROM JANUARY 24, 2020 THROUGH FEBRUARY 3, 2020, IN THE AREA GENERALLY BOUNDED BY 22ND STREET TO THE NORTH, 5TH STREET TO THE SOUTH, JEFFERSON STREET (BETWEEN DADE BLVD AND 15TH STREET) AND WASHINGTON AVENUE (BETWEEN 15TH STREET AND 5TH STREET) TO THE WEST, AND BY THE ATLANTIC OCEAN TO THE EAST; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE SPONSORSHIP AGREEMENT.


RECOMMENDATION

The Administration recommends that the Mayor and City Commission approve the Sponsorship Agreement, and authorize the Mayor and City Clerk to execute the Sponsorship Agreement.   

ANALYSIS

In 2010, Super Bowl XLIV, which was held in Miami, generated an attendance of approximately 75,000 people. During the Super Bowl XLIV weekend, the following events were held in Miami Beach: South Florida Super Bowl Host Committee Media Event on February 2, 2010; NFL Super Bowl XLIV Pepsi Music Smash on February 3, 2010; and South Florida Super Bowl Host Committee - Tide Ocean Drive Closure on February 4, 2010.

 

On May 24, 2016, the National Football League (“NFL”) awarded Super Bowl LIV to South Florida, with the Super Bowl championship football game set to take place at the newly renovated Hard Rock Stadium in Miami Gardens, Florida, on Sunday, February 2, 2020.

 

As part of the Super Bowl LIV activation, the “Super Bowl Experience” event will be hosted at the Miami Beach Convention Center (“MBCC”), from January 24, 2020 through February 6, 2020, and will include the following programs: Media Center; Radio Row; and NFL Social Media Command Center. The NFL will utilize all four halls of the MBCC, and adjacent meeting rooms to accommodate the NFL Experience event and associated media. These high-profile activations will remain in place during the entire week of Super Bowl LIV. In addition, the Miami Super Bowl Host Committee (“Host Committee”) plans to host the following events on the beachfront areas of Miami Beach: a media event, a VIP event, a potential event in the main Convention Center park, and a free public beach concert.

 

At the May 17, 2017 City Commission meeting, the Miami Super Bowl Host Committee, Inc. (“Host Committee” or “SBHC”) initially requested that the City waive MBCC facility rental fees, in the amount of $857,540.80, and provide sponsorship support for Super Bowl LIV through a cash sponsorship of $150,000 made to the Host Committee. The City Commission referred the item to the Finance and Citywide Projects Committee (“FCWPC”) for its consideration and, on May 19, 2017, the FCWPC recommended that the City Commission approve the City’s sponsorship, in an amount not to exceed $150,000, and a waiver of Convention Center facility rental fees in an amount not to exceed $857,540.80.

 

On June 7, 2017, the City Commission adopted Resolution No. 2017-29889, accepting the recommendation of the FCWPC at its meeting on May 19, 2017, and authorizing the following in connection with Super Bowl LIV: the waiver of rental fees for Halls A, B, C, D, and adjacent meeting rooms at the MBCC, in an amount not to exceed $857,540.80; and the City’s sponsorship, in an amount not to exceed $150,000, with a sponsorship agreement in a form acceptable to the City Manager and City Attorney, all of which shall be subject to approval and appropriation via the FY 2017/18 budget process; and

 

At the July 25, 2018 City Commission meeting, the Host Committee made additional funding requests, and further requested that the City, as a host city for Super Bowl LIV, designate a “Clean Zone” during the week of Super Bowl LIV, to provide competing event protection for the Host Committee, to ensure that other events are not held in the vicinity of the Super Bowl Experience from January 24, 2020 through February 3, 2020.

 

The Clean Zone would apply to events requiring a City special event permit in the area generally bounded by 22nd street to the north, 5th street to the south, Jefferson Street (between Dade Boulevard and 15th Street) and  Washington Avenue (between 15th Street and 5th Street) to the west, and by the waterline to the east.

 

At the July 25, 2018 City Commission meeting, the Mayor and City Commission approved, in concept, (1) the waiver of City special event permit fees, in the amount of $178,250 (in addition to the MBCC facility waiver in the amount of $857,540.80); and (2) the creation of the “Clean Zone”; subject to further development and discussion of the Host Committee’s proposal for additional City appropriations for a cash sponsorship and contribution for City event-related public services.

 

At the November 14, 2018 City Commission meeting, the Mayor and City Commission adopted Resolution No. 2018-30617, approving an additional cash sponsorship of $250,000, for a total cash sponsorship to the SBHC in the amount of $400,000, and further approved a City contribution in the amount of $250,000, to be applied toward the cost of SBHC event-related public services, provided, however, that the foregoing approval was subject to the negotiation of an appropriate public benefit package and a sponsorship agreement.

 

Since November, 2018, the City and the Host Committee have engaged in substantial discussions regarding the various components of the SBHC’s and the NFL’s activation in Miami Beach for the Super Bowl Experience and related events, including the boundaries and terms for the Clean Zone; the collaboration with the Miami-Dade School Board and the Miami Dolphins Foundation with respect to the installation of the proposed artificial turf field project at Miami Beach High School; and the terms and conditions of the sponsorship agreement with the City and associated public benefits package.

 

The final sponsorship agreement includes, among other terms, the following:

 

(1) a waiver of City special event permit fees in the amount of $178,250 for SBHC events;

 

(2) a cash sponsorship in the amount of $400,000 in support of SBHC events which may take place in the City of Miami Beach;

 

(3) a City contribution for SBHC event-related public services in an amount not to exceed $250,000;

 

(4) a waiver of MBCC facility rental fees in the amount of $857,540.80 for the “Super Bowl Experience” event at the MBCC, subject to the NFL’s agreement to provide a public benefit consisting of a Miami Beach resident discount of fifteen percent (15%), to be applied to the purchase of up to two (2) tickets for the Super Bowl Experience event;

 

(5) City’s match contribution in the amount of $250,000 for an artificial turf field at Miami Beach High School (along with contributions from the Miami Dolphins Foundation and the Miami-Dade County School Board); and

 

(6) the creation of a Super Bowl “Clean Zone,” which shall include competing event protection from January 24, 2020 through February 3, 2020, with respect to events requiring a special event permit in the area generally bounded by 22nd Street to the north, 5th Street to the south, Jefferson Street (between Dade Boulevard and 15th Street) and Washington Avenue (between 15th Street and 5th Street) to the west, and the Atlantic Ocean to the east.

 

The public benefits package offered by the Host Committee is set forth in Exhibit “B” of the Sponsorship Agreement, and includes (1) a Miami Beach resident discount of fifteen (15%), for all SBHC events in the City of Miami Beach (to date, no SBHC events are confirmed); (2) a matching grant in collaboration with the NFL and Miami Dolphins Foundation, in the amount of $250,000, to fund a portion of the costs for the artificial turf field at Miami Beach High School, and should the turf project not be timely approved by the Miami-Dade County School Board, a mutually-agreeable alternative public benefit in an amount equal to the value of the SBHC’s contribution as set forth herein; (3) logo and sponsorship recognition for SBHC events; and (4) forty-eight (48) complimentary tickets to each SBHC event taking place in the City.

 

As the SBHC was unable to confirm, on behalf of the NFL, a Miami Beach resident ticket discount of fifteen (15%) percent for the Super Bowl Experience, the Agreement provides that City’s obligation to waive the MBCC facility rental fee in the amount of $857,540.80 is subject to and contingent upon the NFL providing the 15% discount and memorializing its agreement in the NFL’s license agreement for use of the MBCC.

 

Although the Host Committee was unable to make a commitment on behalf of the NFL with respect to minimum room nights in Miami Beach associated with the Super Bowl or the Super Bowl Experience, the Host Committee anticipates that the events may secure at least 17,000 room nights within the City of Miami Beach, and this benefit, although not contractually binding, is a factor for the City Commission to consider in evaluating the overall public benefits associated with City’s support for the SBHC.

 


CONCLUSION

The Administration recommends that the Mayor and City Commission approve the Sponsorship Agreement, and authorize the Mayor and City Clerk to execute the Sponsorship Agreement.    

KEY INTENDED OUTCOMES SUPPORTED
Maximize The Miami Beach Brand As A World Class Destination

Legislative Tracking
Tourism and Culture

ATTACHMENTS:
Description
Resolution
Sponsorship Agreement