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Home My WebLink AboutR-02-1053J-02-852 9/16/02 RESOLUTION NO. 02-1053 A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE EXTENSION OF THE TERM OF THE AGREEMENT BETWEEN THE CITY AND GLOBAL FACILITIES LIMITED PARTNERSHIP FOR THE MANAGEMENT AND OPERATION OF THE MIAMI CONVENTION CENTER/JAMES L. KNIGHT INTERNATIONAL CENTER FOR AN ADDITIONAL PERIOD OF 5 YEARS COMMENCING ON OCTOBER 1, 2002; AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE AGREEMENT FOR THESE PURPOSES, SUBJECT TO CITY ATTORNEY APPROVAL WHEREAS, the City Commission by Resolution No. 97-662, authorized the City Manager to enter into a Management Agreement with Global Facilities Limited Partnership for the management and operation of the Miami Convention Center; and WHEREAS, the term of the Agreement is five (5) years, ending September 30, 2002, and may be extended by mutual agreement, for one (1) additional 5 -year period, subject to the confirmation of the City Commission; and CITY CQM . MEETUOG S E P 2 6 2002 Resolution Me. 02-1053 WHEREAS, the City and Global Facilities Limited Partnership want to extend the term of the Agreement for an additional period of 5 years; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this section. Section 2. The City Commission authorized' the extension of the term of the Agreement between the City and Global Facilities Limited Partnership for the management and operation of the Miami Convention Center/James L. Knight International Center for an additional period of five (5) years. Section 3. The City Commission further authorized the City Manager to execute and amendment to the Agreement for these purposes, subject to City Attorney approval. 1� The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to those prescribed by applicable City Charter and Code provisions. Page 2 of 3 02-1053 Section 4. This Resolution shall become effective immediately upon its adoption and the signature of the Mayor .21 PASSED AND ADOPTED this 26th day of September 2002. IMANUEL A. DIAZ, ATTEST: P ISCILLA P. THOMPSON CITY CLERK APPROVE�I FORM AND CORRECTNESS :/ NDRO VILARELLO ATTORNEY W6592:tr:AS:BSS z/ If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. Page 3 of 3 02-1053 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO: Honorable Mayor Manuel Diaz and Members of the City Commission CA -13 DATE: SP 16 2V FILE: SUBJECT: Resolution Confirming the Extension of the Management and Operations Agreement, as Amended, with Global REFERENCESSpectrum ENCLOSURES: RECOMMENDATION It is respectfully recommended the City Commission approve the attached Resolution confirming the extension of the Management and Operations Agreement, as amended, with Global Spectrum for the operations of the Miami Convention Center/James L. Knight International Center. BACKGROUND The Miami Convention Center opened on April 27, 1982 and since that time has been privately operated. On September 23, 1997, the City Commission approved Resolution #97-662, authorizing the City Manager to enter into a Management and Operation Agreement with Global Facilities Limited Partnership d/b/a Global Spectrum (formerly known as Globe Facility Services, Inc.) for the operation of the Miami Convention Center/James L. Knight International Center. The Agreement was for a period of five years, with a cancellation clause in the event the facility was sold, and with the option to extend for another five years under the same terms and conditions. The Department of Conferences, Conventions & Public Facilities recommends the extension of the Agreement for the following reasons: • The management fee paid to Global Spectrum has remained the same throughout the term of the Agreement, including the extension. At the request of the City and as a courtesy, KPMG provided a survey of management fees charged to comparable facilities. The management fee of $97,200 paid to Global Spectrum per year ranks as the lowest for comparable facilities. The management fees range from $99,996 — 180,000, with the average rate being $150,000 a year. Attached, is a copy of the survey of management fees conducted by KPMG. • There has been significant growth in the number of concerts/family entertainment events presented at the James L. Knight International Center (JLK). In fiscal years 2000-01, and 2001-2002, Global Spectrum reported an increase of 25% in the number of concerts/family entertainment. 02-1053 Honorable Mayor Manuel Diaz and Members of the City Commission Page 2 • The annual operating expenses allocated to Global Spectrum for the operation of the JLK has not increased in the past three years, without adversely affecting the maintenance of the facility. • There are only three known companies that manage facilities: SMG, Volume Services; and Global Spectrum. Volume Services is a concessionaire that formally operated the concessions at the Orange Bowl and is beginning to branch out into facility management. SMG manages the Miami Beach Convention Center and Jackie Gleason Theater of Performing Arts, which is our main competitor in the concert market. Global Spectrum is a leader in the professional management of facilities worldwide and a partner with the City of Miami in implementing sound business management practices, bringing quality events to the facility, and increasing the economic impact to our community. ti 9 j c2 CAG CPA 02-1053 SEP -03-2002 15:21 CITY CLERKS OFFICE 305 858 1610 J-97-648 9/23/97 RESOLUTION NO. It 7 — 6 6 A RESOLUTION, WITH ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO ENTER INTO A MANAGEMENT AND OPERATIONS AGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM AND ACCEPTABLE TO THE CITY ATTORNEY; INCLUDING BUT NOT LIMITED TO THOSE REQUIREMENTS PRESCRIBED BY CITY CHARTER AND CODE PROVISIONS, BETWEEN THE CITY OF MIAMI AND GLOBE FACILITY SERVICES TO PROVIDE PROFESSIONAL SERVICES FOR THE MANAGEMENT, OPERATION AND MAINTENANCE OF THE MIAMI CONVENTION CENTER FOR A TERM OF FIVE (5) YEARS WITH AN OPTION TO EXTEND THE AGREEMENT FOR AN ADDITIONAL TERM OF FIVE (5) YEARS AT THE SOLE DISCRETION OF THE CITY; AND PROVIDING REQUIREMENT FOR NOTICE OF TERMINATION. WHEREAS, the Miami Convention Center opened on April 27, 1982; and P.02 WHEREAS, it is the intention of the City that the Miami Convention Center shall be placed under a management agreement with a professional management firm having experience in management of convention center or civic facilities; and WHEREAS, the City of Miami entered into an Agreement with Leisure Management, Miami, for the management, operation and maintenance of Miami Convention Center on September 8, 1992, and SEP 2 3 m7 02-1053 SEP -03-2002 15:21 CITY CLERKS OFFICE 305 858 1610 P.03 said Agreement expires on or about September 30,:1997; and WHEREAS, the City Commission, at its meeting of July 24, 1997, directed the City Manager to negotiate an agreement with Globe Facility Services for the management and operation of the Miami Convention Center; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section ?. The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2. The City Manager is hereby authorized to execute an agreement, in substantially the attached form and acceptable to the City Attorney, including but not limited to those requirements prescribed by City Charter and Code provisions, with Globe Facility Services for the management, operation and maintenance of the Miami Convention Center for a term of five (5) years with an option to extend said Agreement for an additional term of five (5) years, at the sole discretion of the City. Section 3. This agreement is subject to continued 02-1053 2 - r SEP -03-2002 15:21 CITY CLERKS OFFICE 305 858 1610 P.04 ownership of the Miami Convention Center by the City of Miami. in the event of the sale of the Miami Convention Center, the City she`ll provide .notice of termination within 36 months to Globe Facility Services. Section 4. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 23rd day of September , 1997. ATTEST: JOE CAROLLO, MAYOR WALTER J. FOEMAN, CITY CLERK APPROVF'q AS O F tD CORRECTNESS: 1/ ;CITY TCRNEY W1 2:Csk:ORS:BSS 2/ This legislation reflects action taken by the City Commission on September 1997. /l TMaF0M TY CLERK This Resolution is amended consistent with the minutes of the meeting of September 23, 1997. 02-105 TOTAL P.04 OcT-06-97 14:24 FROM:MIAMI CONVENTION CENTEX 10:.6v)t)J/GES17 rHk't .4i J Now assume that on the second anniversary of the agreement the Facility operates at a profit of $200,000. In such event the Firm gill be entitled to compensation in the amount of 5133,700, computed as follows: Base compensation: S 97,200 5% of $330,000: 16,500 10% of S200,000: 20,000 Total compensation: $133,700 10.3 The CITY shall pay the FIRM the additional percentage fee not later than 60 days after the CITY's receipt of invoice and audited financial statement. 10.4 PRORATION. Management Fees or additional Percentage fees payable to the Firm, pursuant to this Ageement, shall be computed prorata based on the period of time during which the services Fere performed. The Revenues for the FACILITY shall be defined to include, but not limited to: 1) Rental Revenues: 2) Merchandise: 3) Advertising; 4) Equip,ient rental: 5) Utility; 6) Box Office; 7) Miscellaneous operating; 8) Leasing; 9) and others as determined 10.5 Attached hereto, as Exhibit , is a copy of an inventory of all expendable supplies, equipment and fixed assets of the FACILITY, signed by an authorized representative of each pain, to this Agreement. ARTICLE II 11.1 TERIM. This Agreement shall be for a period of fire (5) years commencing October 1. 1997 and ending September 30, 2002, unless sooner terminat pursuant to the provisions of 2.1.26 hereof or as otherwise provided in the Agreement. 11.2 EXTENSION TERM. The CITY and the FIRM, by mutual agreement, and subject to the confirmation of the City Commission, shall have the right to extend the initial management term for one (1) additional 5 -year period. CITY and FIRM shall notify each other ninety (90) days prior if it desires to extend the initial terms. Failure to reach an agreement regarding the terms of the extension at least 90 days pilior to the expiration of the term shall be deemed an election not to extend. 13 02-1053 One Progress Plaza, Suite 500 St. Petersburg, FL 33701 January 9, 2002 Ms. Christina Abrams, Director City of Miami Dept. of Conference, Convention & Public Facilities 400 Southeast 2nd Avenue Miami, FL 33131 Dear Ms. Abrams: Telephone 727 822 8521 Fax 727 822 7003 It is our understanding that the City of Miami's management contract with Global Spectrum for the James L. Knight Center expires in September of 2002. Prior to making a decision whether to renew the management agreement with Global Spectrum, it is our understanding that you would like to obtain additional information on other management contracts as a point of reference. KPMG's Convention, Sports and Entertainment Practice has assisted numerous clients with their consideration of private management for public assembly facilities and the actual negotiations with those private management companies. Our past projects include operations analyses for the Washington Convention Center Authority, the Tampa Sports Authority, the public assembly facilities in Winston-Salem (NC), the public assembly facilities in Greensboro (NC), the Portland Metropolitan Exposition Recreation Commission, the City of Concord (CA) Pavilion Amphitheater, the Classic Center, the Amarillo Civic Center, and the Westchester Civic Center; management evaluation and private management negotiations for the Pittsburgh Sports and Exhibition Authority, Tampa Convention Center, the Richmond Coliseum, Providence Civic Center, Bossier City Arena, and the Louisiana Stadium & Exposition District; master plans for the New Jersey Sports and Exhibition Authority (NJSEA) and the Mississippi State Fairgrounds; a revenue enhancement study for the Pennsylvania Convention Center and a staffing analysis for the Albuquerque Convention Center. Given our relationship as the City's auditor, we have taken the liberty of summarizing several private management contracts for various public assembly facilities around the country for your review including the existing contract for the James L. Knight Center. For confidentiality purposes, we have excluded the facility names but have provided you with their geographic regions within the U.S as well as various building program characteristics. Hopefully this information will be helpful in your decision making process. logo a WKPMGLLR G Irftrmo La 9nissa . 0 2-1053 Ms. Christina Abrams City of Miami Page two The summary data included herein has been derived solely from information provided by management at the various facilities. We have utilized sources which are deemed to be reliable but cannot guarantee their accuracy. This information is only one factor that the City will consider in its decision regarding the future management of the James L. Knight Center. Because of its special nature, this information is not intended for any purpose other than to provide the City with information on various management agreements for public assembly facilities, and, as such, is restricted to your internal use. We have no responsibility to update this information. None of this information may be used for any other purpose without the prior written consent of KPMG LLP. The procedures we performed are limited in nature and extent and such procedures do not constitute an audit, examination, compilation or review in accordance with standards established by the American Institute of Certified Public Accountants and, therefore, we do not express an opinion or any other form of assurance on the information presented in this material. If you have any questions about this information or require any additional information, please feel free to contact me directly at 727-502-1804. Sincerely, KPMG LLP Susan A. Sieger, Director Convention, Sports and Entertainment Practice Cc: Ken Deon, KPMG LLP 02--1053 Mina Ptt�Ma-� �.v v Exhibit Space (sq. ft.) 44,000 17,000 Ballroom Space (sq. ft.) not supplied 0 Number of meeting rooms not supplied 7 Meeting Room Space (sq. ft.) not supplied 8,316 Arena (capacity) 5,000 0 Start Date of Agreement 10/1/199 4/16/2001 Termination of Agreement 9/30/200 9/30/200 Renewal Option one -year perioc two 3 -year teen Management Fee (first year) -5 $97,200 $99,996 Two components: reduction of deficit Determined by weighing facility's and profit. The facility has performance each fiscal year again approximately $330,000 in deficit. The goals mutually established by the City agrees to pay the managing firm ar municipality and the facility. incentive fee equal to 5% of the amouril Weights: Attendance -20%; by which the firm is able to reduce said Operating Losses -25%• No. of deficit. In addition, the incentive fee fo sages -30%; City Satisfaction -15% profit is calculated as follows: 20% for Room Nights -10% profit ranging from $0 to $100,000; 25% for $100,001 to $200,000; 30%of $200,001 to $300,000; 35% of $300,001 and above. Incentive Fee Incentive Fee cannot exceed $30, Incentive Fee Cap not su lie Capital Investment not suppliec None Performance Bond not mppliec None None The fixed fee is adjusted October 1 of each subsequent contract year an renewal year by applying the percentage change of CPI but not to exceed 3% in any given year. Comments reams» ice" r x y j'5AK__ M h # h 30,000 F F3 T 4y Exhibit Space (sq. ft.) 30,000 Ballroom Space (s . ft.) 0 25,500 Number of meeting rooms 0 12 Meeting Room Space (sq. fit.) 0 31,260 Arena (capacity) 10,000 22,000 Start Date of Agreement 7/1/199 1/1/200 Termination of Agreement 6/30/200 12/31/2003 Renewal Option not su lie two 2 -year renewal Management Fee (first year) $105,000 $84,000 Determined by weighing facility's Determined by weighing facility's performance each fiscal year against performance each fiscal year against goals mutually established by the goals mutually established by the municipality and the facility. Weights: municipality and the facility. Weights: Attendance -20%; Hotel Tax Receipts- Gross Revenues -20%; Attendance - 10% Gross Revenues -25%; No. of 20%; Number of Event Days -200/0; Usages -30%; City Satisfaction -15% Sponsorship & Advertising -10%; Concessions Revenue -109/6; Owner Satisfaction -20%. It is anticipated tha the management company will be paid an additional fee of $30,000 per year for managing the facility. The total weighted incentive fee will be reduced Incentive Fee by an amount equal to this additional fee. Total fee cannot exceed 5192,000. Incentive Fee cannot exceed annual Therefore, if base fee is $105,000, then management fee. Incentive Fee cannot exceed $87,000. Incentive Fee Cap Capital Investment None None Performance Bond $105,000 None The fixed fee is adjusted July 1 of each This is a summary of information from successive contract year by applying the signed agreement and a letter of the percentage change of CPI but not understanding. The management fee i to exceed 3% in any given year. The increased to $105,000 for the second hotel adjacent to the Center offers a and third year of the term. 13,000 sgft ballroom, 10 meetings rooms and 3 board rooms. Comments 02--1 ►3 ��a ? v 180,000 58,500 Exhibit Space (sq. ft.) Ballroom Space (sq. ft.) 30,000 25,000 Number of meeting rooms 32 n/a Meeting Room Space (sq. ft.) 50,000 14,100 Arena (capacity) 0 0 Start Date of Agreement 6/30/2001 approx. 9/1/200 Termination of Agreement 6/30/2003 a rox. 8/31/200 Renewal Option See comments belo two one-year Management Fee (first year) $120,000 $180,00 Based on quantitative and qualitative If actual revenues exceed 80% of performance measures. A budgeted revenues, then 5% of the Quantitative Fee will be calculated as excess (up to 100% of budgeted follows: 25% of the Expense revenues) is paid as a Benchmark Reduction and 25% of the Revenue Incentive Fee. If actual revenues Increase. A Quantitative Fee will be exceed 100% of budgeted revenues, calculated as follows: Customer then 20% of the excess is paid as an satisfaction (up to 5 points); Excess Incentive Fee. The Qualitative Personnel's involvement in community Incentive Fee, which is capped at 1°/ volunteer programs (up to 5 points); of actual revenues for that year, is Quality maintenance and operation (up based equally on client satisfaction, to 5 points); and Achievement of goals community involvement, maintenance (up to 5 points). and operation, and contract Incentive Fee compliance. If actual expenses exceed budgeted expenses in any year, then the City may adjust the incentive fees in any subsequent yeai Total incentive fees cannot exceed thi Total incentive fees cannot exceed the fixed management fee. fixed management fee. Incentive Fee Cap Capital Investment not suppliec None Performance Bond notsuppli& None Expansion scheduled to be completed Facility is currently under in 2003. At the expiration of the construction, with an anticipated initial term, the agreement may be opening date of September 1, 2002. extended for either a one or two year After a $180,000 fixed management extension period (the "First Extensior fee in the first year of operation, the Term"). At the end of the first fee falls to $144,000 per year in year extension tern, the agreement may be two through five. Comments extended for up to two 1-year terms (each a "Subsequent Extension Term). At the expirations of any subsequent extension term, the agreement may Jx extended for up to two 1-year extension periods. 5 R7 0 N e 100,000 not supplie Exhibit Space (sq. ft.) Ballroom Space (sq. ft.) 25,000 not suppli Number of meeting rooms 22 not supplie4 Meeting Room Space (sq. ft.) 23,000 not supplie4 Arena (capacity) 0 18,000 Start Date of reement 7/1/2001 10/1/2001 Termination of Agreement 9/30/200 9/30/2004 Renewal Option two 2 -year renewal two 1 -year renewal Management Fee (first year) $150,000 $120,000 5% of the Facility's share of operatin 5% of net food/beverage concessio revenues from food and beverage an and catering sales exceeding $1 parking services. million; 10% of net merchandising income from Non -University events in excess of $60,000 per year; $1.00 per paid admission for Non - University Events in excess of 190,000 paid admissions per year; Commission on sale of commercial rights is as follows: 6% of first $200,000 of gross revenues from sal of commercial rights, 8% on next $200,000, 10% for gross revenues Incentive Fee generated from the sale of commercial rights ranging from $400,000 to less than $1.1 million and 15% for those in excess of $1.1 million per year. $I 00,OOC Incentive Fee cannot exceed annual management fee. Incentive Fee Cap Capital Investment not suppliec not su li Performance Bond not suppliec not li Pre -opening fee: PHASE I- Pre -opening Services Fee is $9,000. Design/Construction- $7,500 per Facility shall be entitled to a rebate of month (net of reimbursable expenses the Incentive Fee of up to 75% for an effective date through 12/31/01; operating year in which expenses PHASE II -Construction- $9,000 per exceed revenues. In addition, for an month (net of reimbursable expenses operating year in which revenues 01/01/02 - 12/31/02; PHASE III- Pre exceed expenses, the facility shall Opening $11,500 per month (net or reimburse 50% of any incentive fee Comments reimbursable expenses) 01/01/03 rebate received. through opening date. 02-10 0 053 21 =431fla R < '' z G Exhibit Space (sq. ft.) 35,000 63,668 Ballroom Space . ft.) not supplied 0 Number of meeting rooms not supplied 16 Meeting Room Space sq. ft.) not supplied 17,453 Arena (capacity) 7,5001 12,066 Start Date of Agreement 10/1/2001 9/1/20 00 Termination ofAgreement 9/30/20 8/31/2005 Renewal Option one 5 -year renewa not su li Management Fee (first year) $125,000 + other see comments $165,000 40% of the Annual NOI(L) Fee will be performance based using the following weights for the four categories used: Financial Performance (50%), Maintenance of Facility/ quipment and Risk Management (30%), Client Satisfaction (10%), and Diversity (10%). Incentive Fee $25,0 Incentive Fee cannot exceed annual management fee of $165,000. Incentive Fee Cap Capital Investment not Emliec $1,000,000 Performance Bond not su lie not suppli& Other fixed fees are as follows: 10° The management fee in the second of operating revenue from concession year will be $165,000 plus the lower services; $20,000 annually for of: (a) 5% of $165,000 or (b) the parking ramp management; and 250 percentage of $165,000 equal to the of any operating revenue derived percentage increase in CPI. from event related (as opposed to day to day) operation of the Parking Comments Ramp. Transition period is 07/01/01to 09/30/01 during which the private management company will be paid $31,250. 02 1 053 J A M E S L. ICN I H T I NTE RNATIONAL C E NTE R - / P' O2 11 0 —00 - mini 1: Annua R- G P*I aging for" I W. -G .Loo rldwide .am spir ities wo Man 02-1053 TheMagic. of the KNI A Message from the General Manager The fiscal year 2001 proved to be an exceptional one for the James L. Knight International Center. We saw an increase in attendance, event bookings and event days. Our event bookings increased a total of 36% from last year. We have renewed strong relationships with many concert and event promoters and our prospects look strong for future years. Our full time staff saw little change in personnel this past year, which enhances the service we can deliver to our clients. We also have formed a strong core of part time staff that:have.truly become an: asset to _the facility. 1_received numerous accolades from many different clients, on how well the staff performed in assisting their events. _ This facility is unique in that it requires three separate entities (Global Spectrum, Hyatt and the University, of. -Miami) to,work as one.. This .year we have seen our relationship with these enmies.develop further. Nowthat we have all worked together for more two.years; we have an extreme than ly_cohesive team among the three entities``Jhere have been many clients that have�come through the building that have not realized they -have worked with three separate staffs. This is our goal to have seamless-iritegration among all the staffs to benefit the client. This cohesion is a result of -,having a gifted staff in place for the past year. The management team saw very: little change in its structure this year, so we did not have a learning curve to inhibit our progress. We renegotiated our collective bargaining agreement with IATSE Local 545 to provide stagehands for shows in the Knight-Center.;,.,-Th-itnew�collective bargaining agreement is more competitive and mi 'ailow us to`better compete for events that come into -the -marketplace - We look forward to further strengthening our -relationship; with our partners at the Hyatt and University of IVliami and with the many clients and promoters in the coming year. At the en -c ofIh s fiscal year we were alrfacecTwitfi the tragedy that the struck the nat on=on Sp -Member -41: 2001 -Me tragedy has brought very tough economic times to South Florida: Working together we All all overcome this tragedy and grow stronger. We will work together to bring events and tourists back to South Florida, and bring the economy and industry back into prosperous times. LjM G��PEAC°. 5 , 400 SE Second Ave. Miami, FL 33145 305-372-4633 — phone 305-350-7910 — fax 02-1053 www.jlknightcenter.com The Magic of the KNIGH Tz 2000 - 2001 SEASON EVENT HIGHLIGHTS Business Conferences/Conventions/Meetings Many businesses find Miami to be a superb city to hold their international, national or regional meetings. The James L. Knight Center's downtown location and its proximity to so many first class hotel rooms makes it the perfect place to host these meetings. Some of the notable meetings and conferences that were held this year were. • `>Anderson Consulting (now gown as Accenture) Worldwide Partner's Meeting • National Stone Association Conference • Sports Authority Manager's Expo • Society of --Actuaries National= Convention • _.: South Florida -Dental Association Meeting erts/Fa11i This is one of -the market areas where we have seen significant growth in the past two years.—This year's concert season had 5 sellout performances' -and a wide.variety of new events. We played host to the taping of Wheel of .Fortune, -whict was later broadcast, to -over 100 million people. We continued -to host some of the brightest stars in the national and international music industry. We alsohave developed relationships with local promoters to put on shows with local talent. A sample of some of the rich and diverse events presented this year. • Wheel of FortQhd'TWpin •-�,.Jul+olglesias.�2se//outs);-�<_ • Mormon Tabernacle Choir •, .Alejandro Sanz. sellout} •- A Luther Vandross -� _.— , Gypsy`Kings--- - - Cedric the -Entertainer • Cuban Masters - ��, A(, �. 0 �t�A 400 is Second Ave. p—/+'� y1''1, 0 Miami, FL 33145 �,�,►" 305-372-4633 — phone 305-350-7910 — fax www jlknightcenter.c# 2 -10 5 3 x In' e Mv agiie of the KNIG, HT Public Meetings/Tradeshows This category of show is intended for the enjoyment and enrichment of the people of the City of Miami. We have seen an increase in these types of shows from the previous years. This includes shows that are put on throughout the nation by national promoters. Some of the Public Trade shows that were held this year are: • Les Nouvelle Esthetiques • T -Rex Job Fair • Elder Care Options Expo •` HotJobs:com Job Fair • National Association of Catholic Home Educators - Other Events In the past year we hosted many events that do=not fd into our normal categories-�We are especially proud of many of these`events because many of them have special meaning to the community: In several instances these are. local shows with local people and thestaff of the Knight Center get'integrally_involved with the event and provide extra support to ensure the success of the event. We have event developed some new types -of events that we can hold in the Knight Center, like exquisite gala' dinhers, and have increased our scheduled graduations due to our expertise in this very special area. A sampling of some of the special events we hosted: • Miami Dade Mayors Inauguration • Tribute to' Tommy LasordWSA Baseball * Alez Rodriquei's Boys and Girls Club Dinner • Dennis Martinez.Gala Dinner _ •` 11= High Schoof'ar d College Graduations rXLa400 SE Second Ave. Me Miami, FL 33145 SIFr 305-372-4633 — phone 305-350-7910—fax www.jlknightcenter.com 02-105;: °I'he Magic of the KNIGHT CAPITAL IMPROVEMENTS/PROJECTS Since the Knight Center is a 19 year old building there are a significant amount of Capital Projects that are ongoing in order to keep it in its first class condition. We started and completed many of these projects during FY 2001. New Forklift A new forklift was purchased which will allow shows to move into the building more efficiently and will generate revenue as rental equipment to the clients of the facility.:, =_ Computer Based Scheduling Software In November -2000 ournew customized Event Scheduling software was brought on-line. This"enables space' -,rentals to tie tracked and organized in a more professional+ and organized manner. Expansion Joints resealledw. Due to the building's age we had been developing several leaks throughout the building. During the course of the year_all of the expansion joints and many of the.window joints were all resealed to -ensure the integrity of the buildings structure. New Computers Purchased Three new'computers were purchased for 'use in the administrative offices. This will"enable the staff to work more efficiently and run complex programs with the faster machines.` Marketing Collateral Folders Y New marketng_folders.tyere develo _Ped and- for use as collateral . Pr'oduc�s .. pieces to potential clients and sales conferences and meetings. In conjunction with the new Jolders a -website -is bei ng developed and should be online by early2002 Escalator Repair-- - The four escalators: in- the building were given a-,completioverhaul. Electrical Plans Review An ongoing project was started with a local Electrical Engineer to review the electrical layout of the building and ensure that we have the most efficient plan in place. 400 SE Second Ave. G�SpE�++'""'" 305Miami, FL 33145 POW -372-4633 — phone 305-350-7910 — fax www jlknightcenter.com 0 2 -10 5 3 The Magic of the KNIGHT CUSTOMER TESTIMONIALS "The set up was great; the staff should be commended for their attention to detail, rapid response and flexibility. " -Elizabeth Cross DeTullio Vice President, Marketing & Communications The Beacon Council "The spirit of cooperativeness and professionalism at the Knight Center has improved markedly in the -last years. I am„looking forward to working with you and increasing the number of show we presentin your building" -Jon Stoll _'President Fantasma-Productions Inc. T "I know that from the time 1 book a show at the Knight Center through the load out at its conclusion, --I . will -receive the highest level, of pro"ronalism, responsiveness and service_avei/ab1e at any venue anywhere" -Ane. Kaduri President _X j _NYK Productions, Inc. - "I am truly impressed with the man_ neran_which you and your staff synchronized your efforts to assure the success of our -important function. Your staff's professionalism was complemented byytheir courteous and friendly service." -Angel -,Bellamy _ = Director of Human Resources City of Miami "Not only did the Global Spectrum management help usin ways"that even WE did not think of, they sure that our entire'staff:ftad ifie` irtrriost Eton while in Miami" - -Debra Rotolo a [3irector,iCorp "rate Events migagement Hotjobs.com '� 4 "The Knight Center's ability -to llsten-and take -the time -to thoroughly understand the goals and needs of our�school andsthen develop r6bbirimehdi ations is commendable. They fully understand and recognize the uniqueness of each situation and create solutions tailored to us" -M. Gloria Ramos Assistant Principal for Curriculum, Graduation Coordinator. Saint Brendan High School 400 SE Second Ave. G�pBA R:,M. iami, FL 33145 5PE �` 305-372-4633 — phone 305-350-7910 — fax www.jlknightcenter.com 02-105 The Magic of the KNIGH T FINANCIAL OVERVIEW Of all expenses paid out in FY 2000 — 2001, Personnel Expenses and Building Electricity (FPL) comprised of 60% of total expenses. In relation to FY 1999 — 2000's performance, though, Personnel Expenses were down 4% ($19K) and FPL was up 23% ($70K). Computer and Office Equipment expenses were up 36% ($8K) as we began to infuse more efficient technology into the office and repair older pieces of equipment. Sales.and Marketing ozpenses ros6-13% ($4K) in an effort to further market the facility in the -industry. ' Professional Services declined 45% ($12K) due to savings recognized from our relationship with Comcast -'Spectator and a more cost effective-tudit firm was utilized fog the year-end audit.- Building and Equipment Maintenance rose 59% ($50K) •due to necessary repairs to the building. Finally, Contracted Services rose 8% ($1 OK) as our vendors' enacted inflationary cost increases.. As for revenues, 65'Wbf totai revenue was derived from`tie: rental of our two main spaces: The James L Knight international Center and-Riverfront Hall. In relation to FY 1999 2000's perf&r iance,'JI.K Rental revenue increased 20% ($60K) and Riverfront Hall -Rental revenue increased 53% ($96K). This was due an increase in bookings for the -year On a whole, expenses'in.FY 2000 — 2001 were up 8% ($107K) against an increase in revenues of 21% ($194K). Thus, this. produced an overall decrease in our Net Loss figure of 24% ($87K). On the ticketed event side, we hosted 32-ticke#edvents th�spast fiscal year. Our sales figures: reached-$3miRion-in,sales"bif 65K tickets avid. NYK Productions continued to be, our main ticketed -event customer. They brought 6 events to us this pasfiyear. Their sales alone accounted for 36% of sales ($1 million) and-289/osof=tickets,(18k): ��- — - --- - M 400 SE Second Ave. GLOB„ M Miami, FL 33145 = `' 305-372-4633 — phone 305-350-7910 — fax www jllrnightcenter.com 02-1053 24% The Magic of the KNIGHT October 1, 2000 - September 30, 2001 James L Knight International Center/Miami Convention Center Revenue Streams ❑ 5% 111112% 111114% ■1% 05% 1% —1111112% Gross Revenues $976,371 Net Revenues $941,695 G��A� M- 5 � ■ JLK Rental ■ Equipment Rental ❑ Concession Revenue ❑ City Surcharge Revenue ■ Novelty Sales Revenue ■ Ticket Rebates Revenue ■ 32% ■ Box Office Fees ❑ Riverfront Rental - GS ■ Riverfront Rental - Hyatt ■ Ancillary Space Rental ❑ Misc Event & Forfeited Deposit Revenue ■ Interest & Other Income ■ Non -Event Space Rentals 400 SE Second Ave. Miami, FL 33145 305-372-4633 — phone U 2_ 1 Q 5 J 305-350-7910 — fax www.jlknightcenter.com Q ■1` 17% 02 The Magic of the KNIGH T October 1, 2000 - September 30, 2001 James L Knight International Center/Miami Convention Center Expenses 1326% _ _. C, 0- 0- A P. 1.) ■J4% 19% Gross Experues$1,468,465 Net E)perises$1,411,841 ■ Salaries ■ Benefits & Taxes ❑ Sales & Marketing 0 General Office & Admin ■ Management Fee ■ Computers & Equipment ■ Professional Services O FPL ■ Building & Equipment Maintenance ■ Contracted Services 400 SE Second Ave. Miami, FL 33145 305-372-4633 — phone 305-350-7910—fax www.jlknightcenter.com u• 02-105' The Magic of the KNIGIFff- October 1, 2000 - September 30, 2001 James L Knight international Center/ iami Convention Center Ticketed Event Recap (in chronological order) 4,500 4,250 4,000 3,750 3,500 3,250 3,000 2,750 2,500 2,250 2,000 1,750 1,500 1,250 1,000 750 500 250 0 2m i OVOOaO�OVy�O f�� pp ��0,,gtO 07 p;5Oj G Q7'y N0moGm<'0'0- 9a1NAb o 0,. N o,A O4a C, 4° NN;�0 S_ L m 7Op p O y O1 A 0�2 do,6o^iPA G 9. p 9 'PIP o^ Vo �w o. d Sold 64,802 Comp 20,246 Total 85,048 Gross Sales $2,982,647.50 G�pEAC1� M`. 400 SE Second Ave. Miami, FL 33145 305-372-4633 – phone 305-350-7910 – fax Q 2— 1 Q 5 3 www.jUmightcenter.com "`' The Magic of the KNIGHT rotil, , WOOW000- 400 SE Second Ave. Miami, FL 33145 305-372-4633 —phone 305-350-7910 —fax 2 A -1053 www.jUaiightcenter.com �l G `i'tie Magic of the KNIGHT 2001 - 2002 PREVIEW • Completion of the James L. Knight International Center Website. • Complete renovation of the twelve (12) bathrooms in the James L. Knight International Center. • Replacement of the 5 flagpoles located in front of the Center. • Host the Miss Floffda Beauiy Pageant 2002, 2003, 2004 • Renovate the three^elevators in the James L. Knight Center. .OoA tR�61 S � 400 SE Second Ave. Miami, FL 33145 305-372-4633 — phone 305-350-7910 — fax www.jUmighteenter.com 02-1053';:; hf 47 .OoA tR�61 S � 400 SE Second Ave. Miami, FL 33145 305-372-4633 — phone 305-350-7910 — fax www.jUmighteenter.com 02-1053';:;