The proposal submitted by Centerplate, was found to be responsive to the requirements of the RFP. Centerplate's proposal also satisfies City’s primary goal to ensure continuity of operations in the overall Miami Beach Convention Center campus.
Knowing Centerplate was the lowest responsible to the RFP 2020-109-WG, the Administration began contract negotiations with Centerplate as exclusive providers of food and beverage for Carl Fisher and MBCC and for the management and operations of Carl Fisher. It was believed that would serve better if the City if the Carl Fisher Clubhouse terms were developed as an amendment to the current Centerplate Food and Beverage agreement.
The City will maintain full authority related to all food and beverage operation and management decisions regarding concepts, food and beverage pricing, quality, sales, marketing and P&L oversight.
The City will also have final say in the staffing levels and personnel of the food and beverage service operation and organizational management.
The current agreement provides the City with increased control over the financial and operational management which will give the City the ability to actively participate ensuring the most effective financial approach is in place and have decision-making ability in delivering a first
class experience for local groups and conventions.
Quality and service standards; staffing, selection of events, financial interests. The City has developed a series of initiatives with Centerplate and Spectra and will now be positioned to ensure those standards are implemented and maintained in all spaces in the Convention Center campus. The City can also be active in the pursuit of local social business and set parameters for pricing going forward, as well as choosing the chef that will be in place.
This new fee structure is anticipated to deliver increase overall "net" revenue to the City. This is due to the fact that the City is reviewing all financial results monthly.
The Administration believes that this amendment will enhance the Convention Center campus and set a solid strategy and success for the Convention Center and the quality of clients it will attract, while providing the community with an exciting new venues.
One key element of the negotiations is the development of a collective financial approach, including the MBCC, designed to emphasize the importance of achieving mutually desired profit levels for the City through effective management by Centerplate.
The proposed financial terms reduce the percentage of fees incurred by the City of Miami Beach in relation to gross revenues generated by Carl Fisher and the MBCC and restructures the share of net profit that is available to Centerplate. This was deemed as advantageous because this approach increases the focus and incentive for having a profitable operation at both Carl Fisher and MBCC.
The highlights of the terms of the agreement are as follows:
1. Financial
a. Management Fee - 4% of Gross Revenue
b. Profit Sharing Distribution - 83% -City of Miami Beach – 17% Centerplate
2. Co-terminus Contract Terms
a. The contract amendment will create a co-terminus expiration date of September 30, 2025 for both the MBCC and Carl Fisher with Centerplate. There are no additional options to extend the agreement beyond this date.
3. Capital Investment
a. Centerplate will invest up to $750,000 in capital improvements designed to increase Carl Fisher’s attractiveness and support a successful operation.
4. Proforma – Financial Modeling
a. The City and Centerplate will develop a five-year financial forecast to be used as a reference point to assess the ongoing overall financial performance of Carl Fisher operations and food and beverage operations at MBCC.
5. Local Chefs Participation
a. Centerplate will develop an agreed upon approach to engage with local Chefs and others to collaborate in public facing events and activities at the clubhouse facilities.
6. Operational Scope
a. Centerplate will provide convention support and as an extension to Miami Beach Convention Center programming provide a la carte options such as Sunday Brunch at clubhouse facility(s).
b. Centerplate will plan pop-up programming as outlined in agreement.
7. Sustainability
a. A comprehensive program will be instituted and designed to reduce non-recyclable or compostable waste to a minimum.
8. COVID-19 Compliance Measure
In addition to the financial terms noted above, the City and Centerplate agreed on other areas that have community and local business impact. The additional terms include provisions related to emergency catering services, public benefit programs, the engagement of local Chef’s and sustainability. The following are highlights in these additional terms:
- Emergency Catering Services
- City will be allowed to use the Carl Fisher as a point of distribution for meals during emergency events.
- City will have access to space with a specified "at cost" structure including no rental charges designed to encourage use of the facility for City sponsored events.
- Centerplate will develop a workforce development program with quantitative employment targets through interface with local high schools and hospitality programs with an emphasis on underserved communities.
- Local Chefs Participation
- Centerplate will develop an agreed upon approach to engage with local Chefs and others to collaborate in public facing events and activities.
- A comprehensive program will be instituted design to reduce non-recyclable or compostable waste to a minimum.
The terms that are proposed for the amendment to the Centerplate agreement that will direct the food and beverage operation of the MBCC and operations of Carl Fisher are advantageous to the City of Miami Beach and create a balanced approach to achieving a positive financial outcome and enhancing the quality of life for our community.