Item Coversheet

Resolutions - R7  H




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:November  18, 2020
 



SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, REVISING RESOLUTION NO. 2020-31213 APPROVING THE CITY'S SPONSORSHIP OF THE 2021 COLLEGE FOOTBALL PLAYOFF NATIONAL CHAMPIONSHIP GAME, TO BE HELD IN MIAMI AND MIAMI BEACH FROM FRIDAY, JANUARY 8, 2021 THROUGH MONDAY, JANUARY 11, 2021, AND TO INCLUDE: (1) A CASH SPONSORSHIP IN AN AMOUNT NOT TO EXCEED $400,000; (2) A WAIVER OF CITY SPECIAL EVENT PERMIT FEES, IN AN AMOUNT NOT TO EXCEED $25,000; (4) A CITY CONTRIBUTION FOR EVENT-RELATED PUBLIC SERVICES (POLICE, FIRE AND SANITATION) IN AN AMOUNT NOT TO EXCEED $25,000; (5) A CLEAN ZONE TO PROVIDE COMPETING EVENT PROTECTION; AND (6) A WAIVER OF THE COCA COLA SPONSORSHIP; AND  FURTHER, AUTHORIZING THE ADMINISTRATION TO NEGOTIATE A SPONSORSHIP AGREEMENT WITH THE COLLEGE FOOTBALL PLAYOFF NATIONAL CHAMPIONSHIP HOST COMMITTEE, WITH THE FINAL SPONSORSHIP AGREEMENT SUBJECT TO THE PRIOR APPROVAL OF THE MAYOR AND CITY COMMISSION.

RECOMMENDATION

The Administration recommends approving the City's revised sponsorship.

BACKGROUND/HISTORY

In October 18 2017 City Commission meeting, Resolution 2017-30057 was adopted which stated "a resolution of the Mayor and City Commission of the City of Miami Beach, Florida, supporting the South Florida college football championship game task force ("task force"), in connection with the task force's bid to secure the college football playoff national championship game, to be held in South Florida in January of 2021, 2023, or 2024, by authorizing the following in connection with any awarded college football playoff national championship game: a) the waiver of rental fees for the Miami Beach Convention Center, in an amount not to exceed $857,540.80; b) the waiver of special event permit fees, including application fee, permit fee, vehicle access pass fee, square footage fee, user fee, and police and fire administrative fees, in an amount not to exceed $150,000.00; c) all defined fee waiver amounts are to be determined and returned to the city commission for approval; d) a sponsorship agreement between the task force and the City of Miami Beach in a form acceptable to the city manager and the city attorney; and, e) all sponsorships and waived fees shall be subject to approval and appropriation via the city's fiscal year 2017/2018 budget process. 

 

During the October 16, 2019 City Commission meeting, this item was referred to the Finance and Economic Resiliency Committee for discussion. 

 

Due to there being no committee meetings in November 2019 or December 2019, the item was heard at the January 2020 Finance and Economic Resiliency Committee for discussion.

 

The FERC asked that the item be heard at the February 2020 FERC meeting with the inclusion of all sponsorship deal points from previous years.

 

On February 28, 2020, the Finance and Economic Resiliency Committee recommended approval of the following sponsorship request as the return on investment (ROI) regarding brand exposure as well as the financial return via increased Resort Tax revenues due to increased hotel room rates and occupancies and Food and Beverage spends, would be in the best economic interest of the City.

 

(1) A waiver of City Special Event Permit fees in the amount not to exceed $175,000 (as specific site plans are not currently known). This amount would not include any Boucher Brothers displacement fees - the Host Committee would need to pay those fees for any events taking place directly on the beach front.

 

(2) A cash sponsorship in the amount of $400,000 in support of College Football Playoff and Host Committee events taking place in the City of Miami Beach;

 

(3) A City contribution for College Football Playoff and Host Committee event-related public services (police, fire, sanitation) in an amount not to exceed $250,000 - this amount would not include parking.

 

(4) A waiver of Miami Beach Convention Center facility rental fees in the amount not to exceed $850,000.00, subject to a Host Committee commitment that this event will be free to the public (residents and non residents).  This waiver would not include corkage or internet fees as those are third party suppliers and would be expected to be paid for by the event.

 

(5) A creation of a "Clean Zone," to provide competing event protection with respect to third-party events requiring a City Special Event permit for dates to be determined, 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;

 

(6) A Coca Cola sponsorship waiver during this time.

 

(7) The City of Miami Beach to be recognized on all Host Committee-produced marketing, digital and social collateral as it pertains to any event included in any of the line items above. The administration will work directly with the Host Committee to finalize what those sponsorship recognition pieces will look like.

 

(8) Two (2) tickets for all City of Miami Beach elected officials to all Host Committee initiatives/events taking place within the geographical limits of Miami Beach and a 25% discount for all Miami Beach residents on initiatives/events that are not free to the public.

 

(9) CFPNCHC sponsorship of events with Miami Beach High School students; exploration of paddle board activities in Miami Beach; staging pep rallies and other college competitive activities.

 

During the March 2020 City Commission Meeting, the Commission approved the  sponsorship.

 

In addition, the Commission authorized the Administration to negotiate a sponsorship agreement with the college football playoff national championship host committee, with the final sponsorship agreement subject to the prior approval of the Mayor and City Commission.

ANALYSIS

The College Football Playoff National Championship (CFPNC) is a post season tournament in American college football for the National Collegiate Athletic Association (NCAA) Division I Football Bowl Subdivision, having replaced the prior Bowl Championship Series model to determine a College Football Champion. The CFPNC championship game will be held at Hard Rock Stadium in Miami Gardens on January 11, 2021. 

 

The CFPNC National Championship Game is annually one of the top rated television events, with the game and ancillary events expected to bring over one hundred thousand fans to the City.  Hosting the CFPNC National Championship Game in South Florida further provides a tremendous boost to tourism, with the Game expected to generate a substantial amount in direct and indirect positive economic impact.

 

CONCLUSION

Due to the  impact of COVID-19 on the college football season, domestic travel restrictions, and "New Normal" capacity, social distancing, etc., the CFP has reduced the footprint of their fan activations. CFP will not be utilizing the MBCC, the game will not be broadcast by ESPN from Lummus Park, nor will CFP host concerts, pep-rallies or other high impact activations. The revised schedule of activations includes hosting "Beachwalk at Lummus Park", which consists of live shots for national and local media outlets from the venue during Championship Weekend, and CFP sponsored events for CFP sponsors in Lummus Park. 

 

The CFP will still generate a meaningful economic impact for the City by attracting tourists and providing tremendous media exposure.  In particular, the Fontainebleau Miami Beach will be the team hotel for one of the two teams,  Ritz Carlton South Beach will serve as CFP headquarters as well as hosting many CFP VIPs,  Royal Palm will host CFP Luxury Experience Packages, Loews Miami Beach will host ESPN (which is broadcasting the game) and 1 Hotel South Beach will host many sponsors, and also provide CFP Luxury Experience Packages.  This is all in addition to the many fan and alumni room nights in other Miami Beach hotels. Finally, both CFP and ESPN plan to host hospitality events and programs at Miami Beach hotels and venues.

 

In addition, the Host Committee is investing $20,000 through the Miami-Dade County Public Schools' innovative Middle School Redesign (MSR) initiatives at Nautilus Middle School and Miami Dade County teachers will be invited to participate in the CFP Foundation's free Extra Yard for Teachers Summit.

 

Given the reduction of the CFP and Host Committee activations, the City will no longer need to waive $850,000 in rental fees at the MBCC; the waiver of special event fees is now not to exceed $25,000 and the city contribution for City services is not an amount not to exceed $25,000.  The Host Committee is still seeking the $400,000 cash sponsorship from the City to support this event.  

 

Even though the footprint of this event has been reduced by virtue of the COVID-19 pandemic, I recommend that the City Commission approve this revised sponsorship package. 

This will be the first Miami Beach large event since the COVID-19 global shutdown. Miami Beach hotels, restaurants and retail will see much needed business.  The media coverage will provide positive and extensive exposure precisely at a time when the City truly needs it.  In fact, I would recommend that the City take advantage of the combination of the regular Orange Bowl game on January 2, 2021 and the CFP Championship game on January 11, 2021 to host "re-opening" type events and programs during that window of time when there will be many visitors and national media exposure. 

Applicable Area

South Beach
Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Does this item utilize G.O. Bond Funds?
No No 

Strategic Connection

Prosperity - Market and promote Miami Beach as a world class arts, culture, and quality entertainment destination.
Legislative Tracking
Tourism and Culture

ATTACHMENTS:
Description
Resolution 2020 -31213
Revised CFPNC Proposal