On July 17, 2013, the Mayor and City Commission adopted Resolution No. 2013-28276, authorizing the City and Global Spectrum, L.P., d/b/a Spectra Venue Management (“Global”) to negotiate and execute a Management Agreement between the City and Global for the management of the Miami Beach Convention Center, Colony Theater (the Agreement, as amended and modified, is referred to herein as the "Agreement").

Subsequently, the Administration entered into a Management Agreement with Global with an initial term that commenced on October 1, 2013 through September 30, 2016, with two one-year renewal options. In Resolution No. 2015-29191, the Mayor and City Commission approved Amendment No. 1 to the Agreement, extending the term of the Management Agreement through September 30, 2020.

Pursuant to a letter dated September 23, 2016, the City and Global confirmed the City’s termination for convenience of Global’s responsibilities as manager and operator of the Colony Theatre, as permitted in subsection 12.2(c) of the Agreement. Global’s management responsibilities for the Miami Beach Convention Center did not change.

In September 2018, the City and Global executed Amendment No. 2, extending the term of the Agreement for an additional two years, commencing on October 1, 2020 and expiring on September 30, 2022, for a total term of nine years, including all prior renewals and extensions.

Global, during calendar year 2018, advised the Administration that they incurred approximately two hundred thousand dollars ($200,000) in expenses in employee severance costs, recruiting fees and interim General Manager support costs. Global agreed that such costs could be deemed by Global as a capital contribution, to be amortized on Global’s books over the period from October 1, 2018 to September 30, 2022, and accordingly, the City would not be responsible to Global for reimbursing Global for these costs, even in the event of an early termination of the Agreement.

In September 2019, the Mayor and Commissioners approved Amendment No. 3 to the Agreement, which   increased Global's monthly impress amount for the operation of the Convention Center from $500,000 to an amount not to exceed $1,000,000 to accommodate the current level and projected operating expenses to ensure continuity of operations during the critical initial years following the completion of the Convention Center Project and the symmetry of the management and maintenance of the Miami Beach Convention Center (“MBCC”) campus. This change allowed Global to keep more of the profit in their accounts for operating expenses, rather than transferring full amounts every month, where the City of Miami Beach may have to transfer some funds back to cover large upfront costs during conventions like Art Basel (catering and food costs often come up front, when the monies are not received from the client until reconciliation, following the event). This increase is meant to reduce the amount of administration time spent on transferring funds back and forth to cover these high traffic periods.

Shortly after the execution of Amendment #3, Global agreed to assume to manage and maintain Collins Canal Park and Pride Park, including the mangroves along Collins Canal within the footprint of the park for an annual fee of seventy-five thousand dollars ($75,000) in connection with the management and maintenance of the green spaces and the mangroves. Likewise, with the completion of Collins Canal Park, Global agreed to manage and maintain the two City facilities, formerly the Carl Fisher Clubhouse and Little Stage Theater/Annex (Clubhouse Buildings) for the purposes of dining and catering facilities. The food and beverage management of the two facilities was awarded to Centerplate.

The $620 million renovated and expansion of MBCC is open to great expectations from the local, regional and national communities. After many years of living and working through construction which substantially reduced the availability of MBCC for events, thereby limiting Global's ability to book events and generate revenues under the Management Agreement, the renovated center hosts 500,000 square feet of renovated exhibit space, a 60,000 square foot grand ballroom, 20,000 square foot glass rooftop junior ballroom and 84 meeting rooms. The Center can now host more than 10,000 for a formal dinner, accommodate 800 vehicles in rooftop parking, and will continue to host world-class events.

Global has proposed an Amendment #4 to the Agreement, based on the terms set forth below:

The addition of Pride Park, Collins Canal Park and the Clubhouse Buildings will enhance the attractiveness and value of the MBCC to return and new clients as Art Basel, Miami Boat Show and beyond.

To ensure continuity of operations during the upcoming critical years of recovery from the pandemic, and the hopeful return of international and domestic conventions, conferences and destination meetings, symmetry of the management and maintenance of the MBCC campus is critical.

Accordingly, it is the Administration’s recommendation to approve Amendment No. 4 to the Global agreement to incorporate the addition to the scope of work the maintenance and management of Pride Park, Collins Canal Park and the Clubhouse Buildings, thereby increasing the Management Fee to an amount not to exceed $75,000, annually; to delete from the annual incentive survey, client satisfaction of the fire marshal and valet services as being outside the scope of Global; and to further extend the term of the agreement for a period that is coterminous with COVID-19 related impacts, approximately eighteen (18) months, which would extend the Global term commencing on October 1, 2022, and ending on February 28, 2024. Additionally, the Administration a waiver, by 5/7th vote, of the competitive bidding requirement in Section 2-367(e) of the City Code.

The Administration recommends that the Finance and Economic Resiliency Committee review the terms as set forth in this Memorandum, and favorably recommend that the City Commission approve Amendment #4 to the Agreement. As set forth above, Amendment #4 shall require a waiver of the competitive bidding requirement required by Section 2-367€ of the City Code, finding such waiver to be in the best interest of the City.