The City has been contracting with the Greater Miami Convention and Visitor's Bureau (GMCVB) since 1984 for the purpose of promoting the Miami Beach Convention Center (MBCC) and Miami Beach as a destination.
The GMCVB is primarily responsible for marketing, pursuing and securing MBCC sales. Together with the MBCC management (Spectra), GMCVB is responsible for pursuing booking large and long lead business, with Spectra typically focusing on shorter term business.
GMCVB engages in local, national and international marketing of Miami Beach as the overall destination in an effort to promote tourism. The goal of MBCC and Miami Beach destination marketing is to secure hotel room nights in the City, and to further enhance the City's tourism economy.
Funding for the GMCVB agreement with the City is derived from the Municipal Resort Tax revenue. The GMCVB derives additional funding from Miami-Dade County, City of Miami, Village of Bal Harbour, member fees and cooperative marketing partnerships. The GMCVB's activities are focused primarily in marketing and MBCC group/meeting sales.
In 1984, the City, Miami-Dade County, the City of Miami and the Village of Bal Harbour, entered into an Interlocal Agreement with the GMCVB to perform tourism and convention sales and promotion functions.
On July 7, 1999, the Mayor and Commission adopted Resolution No. 99-23237 approving an agreement with the GMCVB for an initial term commencing on October 1, 1999 and ending on September 30, 2002 with one, two (2) year renewal options, at the City's discretion.
On December 8, 2004, the City Commission adopted Resolution No. 2004-25767, which approved an agreement with the GMCVB for five (5) years from October 1, 2004 - September 30, 2009.
On July 7, 2009, the Finance and Citywide Projects Committee directed the Administration to negotiate a new five (5) year agreement with the GMCVB.
On September 24, 2009, the City Commission adopted Resolution No. 2009-27217 approving a new five (5) year agreement commencing on October 1, 2009, and ending on September 30, 2014.
The 2009 agreement included static goals and the fee earned by the GMCVB was not tied to performance. Prior to the expiration of the 2009 agreement, the City changed the overall direction of the GMCVB contract to a performance based agreement from a fee for services approach. This direction focused on the achievement of key metrics and the overall measurable success of GMCVB in their contractual relationship with the City. The City would establish a base fee and establish an incentive fee to be paid based on the overall achievement of agree-upon annual performance goals.
On September 10, 2014, the City Commission adopted Resolution No. 2014-28745, which accepted the recommendation of the Finance and Citywide Projects Committee to extend the 2009 agreement to September 30, 2014.
The City then renegotiated an incentive based agreement that established a base fee and an incentive fee to be paid based on the overall achievement of annual performance goals. The funding to the GMCVB remained $5,366,000 and the City hired an owner's representative.
On October, 21, 2015, the City Commission adopted Resolution No. 2015-29192, authorized a five (5) year agreement with GMCVB commencing retroactively from October 1, 2015 and ending on September 30, 2020 (the "Agreement").