Broward County Commission Regular Meeting
Director's Name: Stacy Ritter
Department: Greater Fort Lauderdale Convention and Visitors Bureau
Information
Requested Action
title
MOTION TO AUTHORIZE County Administrator to approve and execute agreements between Broward County and the Florida High School Athletic Association, Inc., and between Broward County and Miami Beckham United LLC, in connection with Broward County hosting the 2021 and 2022 Florida High School Class 4A-8A football state championships (each a “Yearly Event”), in a maximum estimated amount of $420,000 per Yearly Event, subject to review for legal sufficiency of all such agreements by the Office of the County Attorney; authorize the President of the Greater Fort Lauderdale Convention & Visitors Bureau (“GFLCVB”) to execute amendments and modifications to such agreements provided there is no increase in the County’s potential financial contribution towards any Yearly Event, subject to review for legal sufficiency by the Office of the County Attorney; and authorize the County Administrator or her designee to take all necessary administrative and budgetary actions to implement the aforementioned agreements.
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Why Action is Necessary
Pursuant to Section 13.32 of the Broward County Administrative Code, GFLCVB Sponsorships in excess of $500,000 require Board approval or appropriate delegation of authority.
What Action Accomplishes
Authorizes the County Administrator to approve and execute agreements relating to the 2021 and 2022 Class 4A-8A football state championship events to be held in Broward County and authorizes the GLFCVB President to execute amendments to such agreements, provided there are no increases in County financial contributions.
Is this Action Goal Related
Yes
Previous Action Taken
None.
Summary Explanation/Background
THE GREATER FORT LAUDERDALE CONVENTION & VISITORS BUREAU (“GFLCVB”) RECOMMENDS APPROVAL OF THIS ITEM.
This item supports the value of the Board of County Commissioners (“Board”) of “prominently marketing Broward County as a brand, while increasing public understanding of programs and services” and the Board’s goal to “consistently and effectively market and brand Broward County programs and services, locally and globally, through effective collaboration.”
Pursuant to Section 13.32 of the Broward County Administrative Code, the GFLCVB is authorized to utilize Tourist Development Tax funds in the form of sponsorships of events and activities to occur within Broward County where a primary purpose is the attraction of tourists to the County. These sponsorships usually come in the form of financial incentives to the event organizers as an inducement to hold their event in Broward County.
The Florida High School Athletic Association (“FHSAA”) selects destination partners to host their championship events in all sports. Based on the history of the FHSAA’s football championship events, there may be 25,000 or more attendees at the games, with more than half of the teams participating coming from outside of the local destination. Subject to obtaining a final written agreement with the County, the FHSAA has agreed that the County will host the 2021 and 2022 Class 4A-8A high school football state championship games which will take place in December of 2021 and 2022 at the DRV PNK Stadium in Fort Lauderdale (home of the Inter Miami CF Soccer Team).
The ability to not only fund but also host events is intended as a new opportunity for the GFLCVB and the County to directly attract tourists to Broward County. Additionally, unlike many events where the County expends TDT funds in the form of sponsorships, if these events are successful, there is a possibility of revenue being generated for the County that may offset the hosting expenses.
As is typical for agreements with the FHSAA and for similar large sports events, the form agreement provided by the FHSAA provides for a guaranteed rights fee to be paid to the FHSAA by the County as well as a revenue share from ticket sales and other activities at the event. The GFLCVB is coordinating with the operator of DRV PNK Stadium and will, if this item is approved, enter into a license and use agreement to have the events held at the venue.
Potential revenue generation from hosting the events will come in the form of a share of ticket sales, plus the sale of corporate and other sponsorships. Based on the GFLCVB’s internal review, even if the events do not generate ticket sales and overall attendance results equal to previous years (attendance fluctuates based on the schools that are playing in the championship games as well as external factors such as potential inclement weather and lingering COVID-19 concerns), the potential costs associated with hosting the events are similar to the level of sponsorship funding that could have been offered to attract these events to the County and will still yield positive results from overnight stays and related economic activities. The GFLCVB estimates that the maximum expenditures that would be incurred by the County are $420,000 per Yearly Event.
Discussions have commenced between GFLCVB staff, the FHSAA, and Miami Beckham United LLC, the operator of DRV PNK Stadium. This item, if approved, would authorize the County Administrator to approve and execute agreements between the County and the FHSAA, and agreements between the County and Miami Beckham United LLC, for each Yearly Event; and authorize the President of the GFLCVB to enter into amendments to such agreements (provided there is no increase in the estimated expenses to be incurred by the County), with all such agreements and amendments to be reviewed for legal sufficiency by the Office of the County Attorney. It is expected that agreements will be drafted and finalized over the summer recess.
Source of Additional Information
Stacy Ritter, President/CEO, Greater Fort Lauderdale CVB, 954-765-4466
Fiscal Impact
Fiscal Impact/Cost Summary
Potential $840,000 in Tourist Development Tax expenditure for the hosting of both the 2021 and 2022 football championship events if no revenues are obtained from ticket sales, sponsorships, and other revenue-generating activities. Unknown revenue to the County based on a to-be-negotiated share of ticket sales, corporate and other sponsorships, and other revenue-generating activities associated with the events.