AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 82 OF THE CODE OF THE CITY OF MIAMI BEACH, ENTITLED "PUBLIC PROPERTY," BY AMENDING ARTICLE VI, ENTITLED "NAMING OF PUBLIC FACILITIES AND ESTABLISHMENT OF MONUMENTS OR MEMORIALS," BY AMENDING SECTION 82-501 THEREOF, ENTITLED "GENERALLY," TO PROVIDE FOR CERTAIN EXEMPTIONS FROM THE REQUIREMENTS OF THE ORDINANCE; AND BY AMENDING SECTION 82-503 THEREOF, ENTITLED "NAMING OF PUBLIC FACILITIES; CO-NAMING AND RE-NAMING OF STREETS," BY AMENDING SUBSECTION (A) THEREOF, TO EXEMPT THE NAMING OR RE-NAMING OF CERTAIN SPECIFIED CITY-OWNED PUBLIC FACILITIES FROM THE VOTER REFERENDUM REQUIREMENT OF SECTION 82-503(6) OF THE CITY CODE, PROVIDED THAT SUCH NAMING OR RE-NAMING IS FOR A LIMITED TERM OF YEARS; PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE.

The City’s ordinance for the naming of public facilities, as set forth in Section 82-501 through 82-503 of the City Code (the “Naming Ordinance”), includes a robust public input process for the review and approval of the naming or re-naming of the exterior of most City-owned public facilities, including parks.  In addition to a public hearing requirement, review by the Neighborhoods/Community Affairs Committee, and approval by a 5/7ths vote of the City Commission, the Naming Ordinance currently requires voter referendum approval for the exterior naming or re-naming of most City-owned public facilities and parks. 

Although the City’s Naming Ordinance contemplated that a referendum would be required for the permanent naming of a public facility, i.e., in perpetuity, many naming rights opportunities, particularly as part of sponsorship deals for performance or entertainment venues, are increasingly negotiated for a limited term of years.  Such sponsorships may yield substantial additional revenues for the benefit of the City.

Accordingly, the proposed amendments to the City’s Naming Ordinance, sponsored by Commissioner Samuelian, are intended to complement and facilitate the City Commission’s ongoing efforts to identify additional revenue sources through potential corporate sponsorships, by streamlining the approval requirements for term-limited naming rights at certain City facilities, i.e., facilities such as event rental facilities or entertainment venues, which lend themselves to corporate sponsorship opportunities. 

On October 17, 2018, the Mayor and City Commission adopted Resolution No. 2018-30577, accepting the recommendation of the Finance and Citywide Projects Committee at its September 14, 2018 meeting, and directing the Administration to identify alternative revenue streams and issue a competitive solicitation for corporate sponsorships, including specifically naming rights for the Miami Beach Convention Center.

On July 31, 2019, the Mayor and City Commission adopted Resolution No. 2019-30916, and authorized dual negotiations for the selection of a corporate sponsorship marketing consultant, to assist the City in identifying potential sponsorship and naming rights deals. It is anticipated that the final selection of the City’s corporate sponsorship consultant will be made at the January, 2020 City Commission meeting.

On December 11, 2019, the Mayor and City Commission approved the ordinance on first reading. A discussion of the changes since first reading are set forth below.

At the July 31, 2019 City Commission meeting, as part of the discussion of the selection of the City’s sponsorship consultant, the City Attorney explained that the requirement for a referendum of the exterior naming of City facilities was established by the City Commission and codified in Section 82-503 of the City Code.  The referendum requirement for naming of public facilities is not a City Charter requirement.  Accordingly, the approval process for the naming of City facilities may be determined by the City Commission, and the current requirements may be revised via an amendment to Chapter 82 of the City Code.

Prior to 2014, pursuant to Section 82-505 of the City Code, naming rights involving monetary terms were exempted altogether from the referendum requirements of the Naming Ordinance for all city public facilities.  This exemption, however, was eliminated by the City Commission in June, 2014, as Section 82-505 was deleted via Ordinance No. 2014-3875.

THE PROPOSED ORDINANCE AMENDMENTS

The proposed amendment to the Naming Ordinance accomplishes the following:

1- Eliminates the existing exemption in Section 82-501 for the “Altos del Mar Sculpture Park,” as this project never came to fruition and does not exist, and restates the existing exemptions for the remaining facilities that have always been exempt from the Naming Ordinance (specifically, the Bass Museum, the New World Symphony, the Miami City Ballet building, the Miami Beach Botanical Garden, and the Fillmore at the Jackie Gleason).

2- Creates an exemption from the Naming Ordinance in Section 82-501 for the naming of city-owned properties that are subject to long-term leases in excess of fifty (50) years pursuant to public-private partnerships, such as the long-term ground lease for the Miami Beach Convention headquarter hotel, or the City’s long-term ground leases for commercial projects such as The Lincoln (1691 Michigan Avenue) or Lincoln Place (1601 Washington Avenue).

3- Provides an exemption from the referendum requirement for naming rights having a term of less than 20 years (including renewal periods), for certain listed City facilities that lend themselves to corporate sponsorship opportunities (i.e., entertainment venues, rental facilities, and facilities that involve commercial activities), namely:

    i. Miami Beach Convention Center, 1901 Convention Center Drive;
    ii. Colony Theater, 1040 Lincoln Road;
    iii. 10th Street Auditorium/Welcome Center, 1001 Ocean Drive;
    iv. Historic City Hall, 1130 Washington Avenue;
    v. 1701 Meridian Avenue;
    vi. North Beach Bandshell, 7275 Collins Avenue;
    vii. Byron Carlyle Theater, 500 71 Street;
    viii. City-owned and operated parking garages;
    ix. Adaptive Recreation Center, 5601 Collins Avenue (to be constructed); and
    x. 72nd Street Civic Complex, 263-299 72nd Street (to be constructed)

4- Preserves the referendum requirement for the naming of any City park, or for naming rights for all City facilities if the term of the naming rights deal exceeds twenty (20) years, and otherwise leaves intact the City Commission approval requirement for naming, including review by the NCAC Committee and approval by a 5/7ths vote of the City Commission following a duly advertised public hearing, including City Commission review and approval of all of the monetary and other terms of a proposed naming.

The foregoing amendments are intended to complement the City’s efforts to identify corporate sponsorships and generate substantial additional revenue for the City, particularly for a naming rights deal for the Miami Beach Convention Center. For a naming rights deal for a term of years, the referendum requirement creates a very high barrier to entry, and prospective corporate sponsors will likely be unwilling to go through the time and expense (not to mention the risk), of a public referendum process, simply to enter into a sponsorship arrangement. For these reasons, the proposed ordinance amendment exempts term-limited naming rights deals for certain public facilities from the referendum requirement, while still maintaining a high standard of public engagement for the review and approval of all naming rights granted by the City.

DISCUSSION AT FIRST READING AND CHANGES TO THE PROPOSED ORDINANCE

On December 11, 2019, the Mayor and City Commission approved the proposed ordinance on first reading. 

At first reading, Commissioner Steinberg expressed a concern that the new exemption language did not appear to require a monetary contribution, and only exempted certain facilities for any naming of less than twenty years or less.  The new language in Subsection (8), however, is only intended to provide the mechanism for the exemption for listed facilities.  The substantive terms and conditions of every single naming proposal, including the monetary terms thereof, must be vetted through the approval process previously outlined in the Naming Ordinance, including review by the Neighborhood and Quality of Life Committee and approval by a 5/7ths vote of the City Commission, following a public hearing.  For the avoidance of doubt, new language has been added to Section 83-502(a)(2) to ensure that the monetary terms for any naming proposal are reviewed by the City Commission as part of the approval process, including consideration of the proposed uses of any funds to be generated thereby.

In addition, at first reading, Commissioner Richardson asked how the Administration identified the list of public facilities that would be exempted in subsection (8).  The proposed list was generated by focusing on the facilities that lend themselves to sponsorship opportunities, such as the City’s entertainment venues, rental facilities, or venues with commercial operations.  The proposed list excludes parks and recreation facilities (such as the beloved Scott Rakow Youth Center, by way of example), in an effort to keep parks and recreation facilities as “green” as possible, and visually free of corporate sponsorship/advertising.  In addition, the proposed ordinance preserves the referendum requirement for all of the facilities listed in subsection (8) if the proposed term of the naming exceeds 20 years, to ensure that the public retains the right to weigh in on naming rights deals that are either permanent or involve a longer term of years.  Ultimately, however, the inclusion or exclusion of the facilities listed in subsection (8) of the proposed ordinance is a determination for the City Commission to make, at second reading, at its discretion.