Broward County Commission Regular Meeting
Director's Name: Stacy Ritter
Department: Greater Fort Lauderdale Convention and Visitors Bureau
Information
Requested Action
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MOTION TO AUTHORIZE President of the Greater Fort Lauderdale Convention and Visitors Bureau (“GFLCVB”) or designee to approve reductions to license and ancillary fees charged for the use of the Broward County Convention Center (“Convention Center”) in amounts not to exceed $250,000 per agreement, and to authorize the County Administrator or designee to approve reductions in amounts not to exceed $500,000 per agreement, when deemed appropriate and in the best interest of the County based on competitive reasons, economic conditions, construction at the convention center, and/or other business needs, through the completion of construction at the Convention Center (currently expected in 2025).
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Why Action is Necessary
Board approval is required to authorize the GFLCVB President or County Administrator, to approve modifications to license and ancillary fees for the use of the Convention Center.
What Action Accomplishes
Authorizes the GFLCVB President and the County Administrator to approve reductions to the license and ancillary fees charged for the use of the Convention Center in the amounts specified through the completion of construction at the Convention Center, currently projected in 2025.
Is this Action Goal Related
No
Previous Action Taken
None
Summary Explanation/Background
THE GREATER FORT LAUDERDALE CONVENTION AND VISITORS BUREAU RECOMMENDS APPROVAL OF THIS ITEM.
The GFLCVB is responsible for implementing County policies regarding the marketing of Broward County as a desirable tourist and convention destination, and in overseeing the operation and marketing of the Broward County Convention Center.
ASM Global dba SMG currently operates the Broward County Convention Center pursuant to the Amended and Restated Agreement approved by the Board in 2018. Pursuant to Section 8.3 of the Amended and Restated Agreement, SMG’s General Manager is authorized to execute license agreements for the use of the convention center in accordance with the County-approved Operations Manual and rental rates provided for in the Booking Policy Guidelines approved annually by the GFLCVB.
As a result of the COVID-19 public health emergency, there has been an impact on the meetings industry, and many in-person meetings were cancelled, postponed, or reduced in size. As the meetings industry recovers after the worst of the COVID-19 public health emergency, and to offset the impacts of construction conditions of the Convention Center Expansion and Headquarters Hotel Project (Project), both the GFLCVB and SMG believe that there will be a need to be flexible in adjusting the standard approved rates for the use of the Convention Center for the foreseeable future. Currently, there is no mechanism to authorize either the GFLCVB or County Administration to approve reductions to Convention Center license and ancillary fees on individual license agreements. SMG, GFLCVB and Project management staff are of the opinion that having an ability to reduce or adjust fees for the use of the Convention Center on an as-needed basis will be advantageous to the County and our ability to secure convention and other group business at the Convention Center, and also make it less likely that the Project construction schedule would have to be adjusted to accommodate a particular event.
If this item is approved, the GFLCVB will work with SMG to establish processes and procedures to consider, as deemed appropriate, reductions in license and ancillary fees for the use of the Convention Center and, after approval of those processes and procedures by the County Administrator or designee, to authorize the GFLCVB President to approve reductions in the standard fees as deemed appropriate, in amounts up to $250,000 per agreement, with the County Administrator having authority to approve reductions in the standard fees up to $500,000 per agreement. Approval of this item would enable the County and SMG to offer more competitive license fees to prospective licensees and enable the GFLCVB and SMG to incentivize groups to hold events at the Convention Center rather than other destinations. Unless future action is taken by the Board, this delegation of authority will expire upon completion of construction at the Convention Center, which is currently projected to occur in the Fall of 2025.
Source of Additional Information
Stacy Ritter, President/CEO, Greater Fort Lauderdale CVB, 954-765-4466
Fiscal Impact
Fiscal Impact/Cost Summary
The fiscal impact of the proposed motion cannot be determined at this time. The impact to the County will be dependent upon the number of license and ancillary fee reductions approved by the GFLCVB President and the County Administrator.