Item Coversheet

Resolutions - C7  N




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:July  25, 2018
 



SUBJECT:

A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING IN SUBSTANTIAL FORM AND AUTHORIZING THE CITY MANAGER TO EXECUTE, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, A FIVE (5) YEAR SPONSORSHIP AGREEMENT WITH FLORIDA INTERNATIONAL UNIVERSITY FOR THE SOUTH BEACH WINE & FOOD FESTIVAL, DETAILING THE TERMS OF THE CITY'S SPONSORSHIP OF THE EVENT AND THE PUBLIC BENEFITS THEREOF; AND APPROVING A WAIVER OF SPECIAL EVENT PERMIT FEES IN THE APPROXIMATE AMOUNT OF $120,102.24.


RECOMMENDATION

The requested long-term agreement is in line with City partnerships with similar P1 (high hotel room night generating) events, and therefore, the Administration recommends approval of the five year agreement, associated special event waivers, and sponsor and public benefits.

ANALYSIS

The 17th Annual Food Network South Beach Wine & Food Festival ("SOBEWFF"), is a national, star-studded, four-day destination event showcasing the talents of the world’s most renowned wine and spirits producers, chefs and culinary personalities, and will take place in the City of Miami Beach ("City") from Thursday, February 21, 2019 to Sunday, February 24, 2019.

 

SOBEWFF has a long-term history of partnering with the City to provide public benefit, resident access, and sponsor recognition, which has been part of annual, repeating two-year term agreements whereby the City has waived special event permitting fees and received sponsor benefits.  The most recent two-year agreement expired on May 1, 2018.

 

SOBEWFF has become one of the largest and most well-known festivals of its kind in the country, attracting visitors worldwide. The proceeds of SOBEWFF directly benefit the Florida International University (FIU) School of Hospitality and Tourism Management and underline the reputation of the City of Miami Beach as a world-class culinary destination.

 

Over the last 17 years, SOBEWFF has grown to attract more than 8,000 residents and visitors to the event daily, producing increased hotel room night generation year on year. 80% of SOBEWFF total event attendance, allocated to events that take place in the City of Miami Beach, brings in more than 50,000 guests to the City.

 

The 2019 SOBEWFF events will include:

 

  • Goya Foods Grand Tasting Village featuring MasterCard Grand Tasting Tents and Culinary Demonstrations
  • Wine Spectator Trade Tasting presented by Southern Glazer's Wine & Spirits of Florida
  • Barilla's Italian Bites on the Beach
  • Heineken Light Burger Bash presented by Schweid & Sons
  • Fontainebleau Miami Beach presents Wine Spectator's Best of the Best sponsored by Bank of America
  • A Saturday night event
  • Closing event


For 2019 SOBEWFF, the event producer is requesting approximately $120,102.24 in waivers of:

  • Special Event application and permit fees - $750
  • Vehicle beach access pass fees - $9,750
  • Square Footage fees - $55,932
  • Lummus Park user fees - $15,642.54
  • Police Department off-duty administrative fees - $11,596
  • Light pole banner permit fees - $7,500
  • Mini billboard permit fees - $200
  • 20% concession fees - $18,731.70


 

In regards to a new agreement, SOBEWFF is requesting the City enter a five (5) year agreement with SOBEWFF to continue their annual activation from 2019 to 2023.  The long-term agreement would be consistent with previous agreements  and include the waiver of special event fees.

 

Due to the positive relationship SOBEWFF has had with the City, positive community and resident response, and impactful hotel room night generation created by SOBEWFF footprint on Miami Beach, the event producer is requesting consideration of a five (5) year long-term commitment from the City to ensure that they will be allowed to activate, via a special events permit, on Miami Beach, in their current footprint until 2023.  

 

As part of the City's due diligence, similar to requirements for Priority 1 ("P1") events held in the Miami Beach Convention Center and throughout the City of Miami Beach (e.g. Art Basel, Design Miami),  Administration has requested that SOBEWFF provide an audited report documenting Miami Beach hotel room nights associated with SOBEWFF.  Attached for review is the audited room night report indicating 30,576 room nights generated, which would quality SOBEWFF as a P1 event. The City has entered into long-term agreements with both Art Basel and Design Miami which similarly provide very significant room night generation on Miami Beach.

 

The event producer is specifically requesting that the City agree to the following, but not limited to, terms:

 

  • City benefit:
    • Recognition as Platinum sponsorship and general festival recognition with tiered level logo on welcome banners at the Grand Tasting Village;
    • Each City Commissioner will receive two (2) tickets to a designated event on Miami Beach;
    • Print and media recognition is the Official Guide to the South Beach Wine & Food Festival; City logo on thank you advertisement running the weekend of SOBEWFF; recognition in select print promotional materials distributed locally, nationally and internationally; and an opportunity to produce press releases promoting participation;
    • Electronic recognition on SOBEWFF website, Mobile App, Online Auction website, e-Newsletter, and web banner;
    • Gifting opportunities include inclusion in Trade Day and Grand Tasting gift bags;
    • 2019 SOBEWFF Auctions - an opportunity to donate a mutually-agreed upon auction item to one of the SOBEWFF Online Auctions;
    • Opportunity to invite Miami Beach Senior High School Hospitality Students to volunteer for the SOBEWFF family event: Fun and Fit as a Family;
    • Co-marketing opportunities to promote important City initiatives and ties to SOBEWFF;
    • Four (4) Juicy Tidbits e-Newsletter stories to promote the City - circulation of 380,000;
    • Four (4) Facebook or Twitter posts to promote City events. Facebook circulation of 50k, Twitter circulation of 22k; and
    • Opportunity to place City promotional material in the SOBEWFF Official Hospitality Suite - headquarters for VIPs, chefs and seminar presenters.
             

  • Event producer benefit:
    • Waiver of special event application fees, permit fees, vehicle beach access pass fees, square footage fees, Lummus Park user fees, Police Department off-duty administrative fees, Fire Department off-duty administrative fees, temporary occupant content permit fee (if necessary), signage permit fees, banner permit fees, mini billboard permit fees and the 20% concession fees; and
    • A five (5) year commitment to activate SOBEWFF in the current Miami Beach locations including Main Site (Lummus Park beachfront between 10th and 13th Streets), the North Venue (at beachfront between Lincoln Road & 17th Street), Espanola Way, and various hotel venues including the Fontainebleau, Lowes Miami Beach, SLS Hotel, Surfcomber Hotel, W South Beach and 1 South Beach.


  • Miami Beach Public benefit:
    • SOBEWFF is offering Miami Beach residents discounted advance (two week pre-sale period) ticket sales opportunities, the opportunity will consist of a 15% discount applied to the purchase of a maximum of two(2) tickets of a choice of one SOBEWFF large-scale event (over 200 guests) taking place in Miami Beach; and
    • Five hundred (500) tickets to each day of the Festival's family event: Fun and Fit as a Family. A total of one thousand (1,000) tickets will be provided. The tickets are to be distributed to local schools and after-school programs so that Miami Beach children and their families can attend this event to learn about health and wellness.
    •  

Pursuant to the new special event funding guidelines set forth in Ordinance 2018-4171 (to take effect in October 2018), the City Commission, may refer this discussion item for consideration to the Finance and Citywide Projects Committee ("FCWCP") for review.

 

Pursuant to recent direction from FCWCP, and as approved by the full Commission on July 2, 2018, fee waivers in the amount of $25,000 or more will constitute a City sponsorship and will therefore require a sponsorship agreement to be put in place, detailing event deliverables, public benefit, and sponsor recognition among other items.

 

Pursuant to Sec. 12-7(a) of Chapter 12 (Arts, Culture and Entertainment) of the City Code, any request for City Sponsorship of an event shall only be considered through the City Commission's annual budget process. All other requests for City sponsorship, pursuant to 12-7(b) shall require "(I) an advisory recommendation of the Finance and Citywide Projects Committee; and (ii) by a five-sevenths (5/7th) vote, of the City Commission," and 12-7(c) states that 'in considering approval of a Sponsorship for an event, "the City Commission may consider (i) whether the event organizer has exercised good-faith diligent efforts to apply for grant funding that may be available from the City's Visitor and Convention Authority ("CVA" or Cultural Arts Council ("CAC"); (ii) the Event organizer's history and performance in delivering quality Events, (iii) any benefits being directly provided to the general public with respect to the Event, such as free or discounted tickets to persons residing in the City of Miami Beach, seniors, veterans, or member of disadvantaged groups; (iv) whether the event is accessible to the general public (either as a ticketed eVent or otherwise); (v) the demonstrable economic impacts associated with the Event; (vi) the demonstrable media commitments secured by the Event organizer for the Event; or (vii) the efforts undertaken by the Event organizer to mitigate any quality of life impacts associated with the Event, including noise, littering, traffic or parking impacts associated with an Event."

 

Although the ordinance is not effective until October 2018, the event consideration for sponsorship would meet the guidelines in the following manner:

 

1. Has the event applied for CAC or VCA? In this case, the event has not yet applied for CAC or VCA sponsorship, but has communicated with the VCA leadership and fully intends to apply for the maximum amount of funding for large scale events.

 

2. How many years has the event been active on Miami Beach? In this case, the event has been active for 17 years.

 

3. Does the event generate significant room nights on Miami Beach? This event does demonstrate audited room nights on Miami Beach. As part of the City's due diligence, similar to Priority 1 ("P1") events held in the Miami Beach Convention Center and throughout the City of Miami Beach (e.g. Art Basel), the Administration has requested that SOBEWFF provide an audited report documenting Miami beach hotel room nights associated with SOBEWFF.  Attached for review is the audited room night report indicating 30,576, room nights generated, which should quality SOBEWFF as a P1 event.

 

4. What is the public benefit provided by the event? The event is open to the public with advanced discount tickets for City residents.

 

If approved, the sponsorship would be formalized though a five (5) year sponsorship agreement with a term from 2019 to 2023.


CONCLUSION

Administration recommends approval of the five year agreement, associated special event waivers, and sponsor and public benefits.

KEY INTENDED OUTCOMES SUPPORTED
Maximize The Miami Beach Brand As A World Class Destination

Legislative Tracking
Tourism, Culture and Economic Development
Sponsor
Mayor Dan Gelber

ATTACHMENTS:
Description
South Beach Wine & Food Festival Economic Impact
Resolution - Supplemental