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HomeMy WebLinkAboutM-77-0260bdaeph Rs GraStie city Manager Itudia-Cdt. Charles L. cruthpton Assistant City Manager MAR i 8 477 Trade Fair of The Americas (Site Location) Report w/letter The attached report is an evaluation of possible sites for the Trade Fair of the Americas which is Scheduled for the first quarter of next year Dinner Key Auditorium, the initial choice, has some compli- cations now, due to the recent Public Works Grant which has altered the original construction schedule: The Fair now falls about midway in the construction time period. There- fore, minimal renovation will be ready at the time the Fair is to take place, also, the air conditioning will not be available. The Miami Beach Convention Hall does not fit the dates. The Miami Free Trade Zone site creates timing concerns as well as no on —site air conditioning. The Port of Miami also presents timing concerns as regards the building now under construction. The Miami International Merchandise Mart has the better t)otential for accommodating the Fair than the other sites reviewed. Also, it will be the least costly in total budget dollars. The difference between expenses and revenues is also less for this site. It is my recommendation that we use the Miami International Merchandise Mart site for the Trade Fair of the Americas in March of 1978. —1 -morrow 1,• 2,4,1 THE DINNER KEY AUDITORIUM Owned by the City of Miami, the D.K.A. Would be a first choice, though hot fully adequate for the TRADE FAIR. The total space aVailabie within the D.IC,A, of 80,000 square feet Would have to be reduced by a factor of 30% for aisles and passageways, leaving 56,000 square feet of total exhibit space. Of this amount, the City is com- mitted to offering each participating country 1,000 square feet of rent free space for national ethibits Which was requested by the National Export Directors in the December Workshop, With 23 countries expected to participate in the TRADE FAIR, total area is thereby reduced by 23,000 square feet, leaving a net rentable exhibit area of 33,000 square feet. This is insufficient. Temporary structures of 10,000 square feet each would have to be erected on the grounds adjoining the b.K.A, at a rental cost of $50,000 per structure. It is estimated that five temporary structures would be required to augment the b.K.A. space and provide ancillary uses. The City could then rent space to the exhibitors at rates ranging from $60.00 to $75,00 per square meter (10 square feet). These rentals would just cover rental and construction costs for the structures. Inherent in this arrangement is the risk to the City of not being able to rent 100% of the space in the structures. The selection of the D.K.A. as a site for the TRADE FAIR is now contingent on the present renovation work, in accord with the recent Public Works Grant. The FAIR now falls midway in the construction period now being conducted. The expected completion date of this work is set for September, 1978. 2. TIIE :•MIAMI BEACH CONVENTION CENTER. The Miami Beach Convention Center meets virtually all of the space and accommodation requirements for the TRADE FAIR, but not the most critical requirement of availability during March of 1978. The earliest reservation open in 1973 is for the period of May 17-June 15. Inquiries made of major department stores and buyers organ- izations regarding a postponement of the TRADE FAIR until mid May, have produced unanimously negative replies regarding these dates. Moat of the buying for American Department Stores in any calendar year, and orders placed by buyers in May or June are expected for delivery the following Spring, missing the peak selling period of late Fall and the Holiday season. Page 2 of 5 TRADE FAIR OF THE AMERICA8 s,tTE, 8tt C'TI01V Two considerations crucial to the success of the TRADE FAtR OF THE AlMtAIGAs are closely interrelated; tithing and site selection. Consultations with major chain stores and buyers associations show that February and March are the two optimum months in the United States, and of these March is better suited to Latin American exhibitors. The TRADE FAIR OF THE AMERICAS has therefore been scheduled for March 8-19* 19`78. This time span covers the minimum duration requested by the National Export Directors of ten consecutive days, including two weekends, With this scheduling decided, the related question of a fair site available to the City in this time frame becomes para- mount, The options* with their respective advantages and disadvantages follow: SITES CONSIDERED 1, The Dinner Key Auditorium 2. The Miami Beach Convention Center 3. The Port of Miami 4. The Miami Foreign Trade Zone 5. The :Miam1. International ,Merchandise .Mart PARAMETERS OF SITE REQUIREMENTS AND Ft1NCTION• A. Availability during March, 1978. B. 70,000 - 80,000 square feet of net exhibit space. C. Air Conditioning. D. Accessibility of site to exhibitors, buyers and general public. E. Security. F. Availability of bonded warehouse services. G.. Reasonable (less than prohibitive)' cost. Page 1 of 5 Tkt Dn 1Et2 ktY AobttokttiM Owned by the city of Miami, the D.K,A, would be a fitst Choice) though hot fully adequate for the TRADE FAIR, The total space available within the D,K,A, of 80,000 square feet would have to be teduced by a factor of 30% for aisles and passageways, leaving 56,000 square feet of total exhibit space, Of this amount, the City is coP mitted to offering each participating country 1,000 square feet of rent free space for national exhibits which was requested by the National Export Directors in the December Workshop, With 23 countries expected to pattiCipate in the TRADE FAIR, total area is thereby reduced by 23,000 square feet, leaving a net rentable exhibit area of 33,000 square feet. This is insufficient. Temporary structures of 10,000 square feet each would have to be erected on the grounds adjoining the D.X.A. at a rental cost of $50,000 per structure, It is estimated that fiVe temporary structures would be required to augment the D.K.A. space and provide ancillary uses. The City could then rent space to the exhibitors at rates ranging from $60.00 to $75.00 per square meter (10 square feet). These rentals would just cover rental and construction costs for the structures. Inherent in this arrangement is the risk to the City of not being able to rent 100% of the space in the structures. The selection of the D.K.A. as a site for the TRADE FAIR is now contingent on the present renovation work, in accord with the recent Public Works Grant. The FAIR now falls midway in the construction period now being conducted. The expected completion date of this work is set for September, 1978. 2. THE MIAMI BEACH CONVENTION CENTER. The Miami Beach Convention Center meets virtually all of the space and accommodation requirements for the TRADE FAIR, but not the most critical requirement of availability during :larch of 1978. The earliest reservation open in 1973 is for the period of May 17-June 15. Inquiries made of major department stores and buyers organ- izations regarding a postponement of the TRADE FAIR until mid May, have produced unanimously negative replies regarding these dates. Most of the buying for American Department Stores in any calendar year, and orders placed by buyers in May or June are expected for delivery the following Spring, missing the peak selling period of late Fa11 and the Holiday season. Page 2 of 5 Othet contideratiohs in the rental Of the Msbl td are hot only the rental fee (out of pocket 'costs) but also the use of union cohdeSsiohaires# ticket sellerst e1ec= tticiahs, janitors# and audio -Visual technicians. Total i2ental ?ee $ 68r 000, 00 Total union personnel and Misdellaneous 132 000 ,q0. TOTAL ISTIMATDD COST $200,000.00 Some (perhaps all) of these costs might be defrayed through the Tourist Development Authority, 3. Tilt PORT OF MIAtMI Two alternatives ate available to the City on Dodge Island. One would be the exclusive use of temporary air conditioned structures and the other, the use of an open air shed type structure now under construction. The primary advantage of selecting either alternative on Dodge Island would be the seaside, water ambience this setting would offer. In addition, there are existing customs facilities and bonded warehouses in the immediate vicinity. If temporary facilities are to be used on Dodge Island, at least ten 10,000 square feet structures must be planned for to provide the 100,000 gross square feet, and discounting 30% for aisles, etc., the required min- imum of 70,000 square feet of net exhibit space. This arrangement, as in the case of the Dinner Key Auditorium, entails the risk of the City's renting, and committing funds in advance, for more space than it can be certain of renting to exhibitors. And in this case, it would involve an advance payment of at least $500,000 plus grounds improvements, utilities, etc. The un-air conditioned but insulated :shed now being built by Dade County on Dodge Island could, with an accelerated construction schedule, be made available for use in February of 1978, three weeks before the inauguration of the TRADE FAIR. This structure will have 150,000 gross square feet, (105,000 net square feet of exhibit space). Individual stand up air conditioning units could be rented. The primary disadvantage of this site for the TRADE FAIR is that any work stoppage or delay in the accelerated construction schedule could make this facility unavailable in time for the Fair's opening. Page 3 of 5 4, MIAMI FOREIGN TRADE ZONE (Miami Free Zone Cotporation) . The M,F,T,Z, located at the intersection of N.W. 97 Avenue and N,t4. 12 Street, 2 miles west of the airport, is also a possible site for the TRADE FAIR, Construction is con., templated to begin mid to late Summer 1977 on this facility and a Warehouse type structure of 130,000 square feet (gross area) could be made available to the City for a special rate of $20,000 for the duration of the TRADE FAIR (30 days), including the time necessary for mounting and dismantling, This covered area is unadorned and u- air conditioned; so decoration would be a large expense and air conditioning prohibitively expensive, By the time of the TRADE FAIR, the M.F.T.Z, is expected to have a U,S. Customs facility and bonded warehousing facilities on location. The Miami Free Trade Zone Corporation, which will admin- ister the M.F,T.Z., has applied to the U.S. Department of Commerce for the authority to establish and maintain a foreign trade zone. This authority is anticipated to be approved by mid year or the end of this summer; and as a result no firm committment on space for the TRADE FAIR could be given, nor will construction start until that time, Another significant reservation regarding this site for the TRADE FAIR is its relative inaccessibility, lack of parking facilities (500 spaces) and generally unknown location. No public transportation to the •t.F.T.Z. exists at present so that all visitors would be required to use shuttle buses or private vehicles. 5. THE MIA2•MI INTERNATIONAL MERCHANDISE MART. The •t.I.M.M. (Mart) is expanding its present facilities, constructing a $2 million Expo -Center, of 121,000 square feet, adjoining the existing building. Construction on the two level, air conditioned Expo -Center will be com- pleted in July of this year with exhibitions scheduled for August. A complete exposition infra- structure., including all types of electrical installations, water connections, overhead sprinkler system, and built-in security will be available in the Expo -Center. Conference rooms, a restaurant, banquet facilities, and a catering service are now in service at the Mart and will be available for the FAIR. Page $ of 5 The Mart is located at the intersection of fit, W. 72 Street and the East-West Expressway, fifteen minutes from bowntown Miami, and has parking spaces for 1,500 cars, of Which 1,000 would be available for FAIR. use. Additional parking area is available nearby (the Jordan Marsh Warehouse on N, W. 12 Street and 't2 Avenue) and could be used with shuttle buses during peak weekend periods, The Mart's location alongside of the 836 Expressway makes this site readily accessible to hotels downtown and hear the airport, The Miami International Merchandise Mart management has expressed active interest in having the TRACE FAIR in its Expo -Center, for the publicity, prestige, and international projection that the FAIR will generate. In consideration of these benefits, the Mart's manage- ment has offered the Expo -Center to the City on an out-of-pocket cost basis that will cover expenses such as electricity and janitorial services.* * Sr_e attached letter. Match 10, 1977 Mr. Evelio Ley Evelio Ley & Associates, Inc. 120 North Biscayne Blvd. Suite 2502 Miami, Fla. 33132 Re: Trade Fair of the Americas Dear Mr. Ley: I enjoyed meeting you and Mr. Rogers yesterday to explore the possibility of using Miami Expo/Center as an alter- native site for the forthcoming Trade Fair Of The Americas, March 8 through 19, 1978. Miami Expo/Center, now under construction and scheduled for opening August 1, 1977, is ideal for such an event. Strategically located directly off the East-West Express- way at N.W. 72nd Avenue, it is just a few minutes from Miami International Airport and no more than 15 minutes to most other centers of commerce in Dade County. Our facility is served by over 5,000 modern hotel rooms in the airport vicinity including the Marriott Hotel, Ramada Inn, Sheraton Hotel, Howard Johnsons, and several Holiday Inns. Miami Expo/Center has been especially designed to accommo- date all types of trade shows which normally require special electrical and mechanical connections and excel- lent lighting. Both the first and second floors, which are connected by escalators, are fully air-conditioned and fire sprinklered. Each floor contains approximately 50,000 sq. ft. of exhibit area not including any of the service areas such as restrooms, meeting rooms, show offices and VIP -Press Room. If set up in a traditional 10'x10' display booth system, the combined area can accom- modate 650 booths. Parking at Miami Expo/Center covers about 17 acres which can accommodate 1500 cars. In the event temporary struc- tures are erected in the parking lot, alternate off -site parking and shuttle bus service would have to be arranged which I'm sure would not pose any problem. I have en- closed under separate cover, detailed information concer- ning our facility. Mr. EVe io Ley Marsh Id, 19/7 Page 2 Our normal rental rate for Miami Expo/Center without equipment or services is $1700 per day. 1 would be most pleased and honored to offer the use of our facil- ity to the City ofMiami at no cost except for out- of-pocket expenses to include such items as additional lighting, air-conditioning, janitorial services, sec- urity and casual labor, Once you have further details as to your show requirements, 1 will be able to esti- mate and document the cost of these expenses. Our supply of equipment, such as display booth units, tables, chairs, etc., would be made available for rental to any exhibitor at modest cost. Our facility would be available March 2nd for exhibitor move -in (or earlier if our show schedule permits.) All exhibits must be removed by March 24th (or later if our show schedule permits.) Naturally, we would expect to receive from the City of Miami appropriate indemnification and hold harm- less agreements, liability insurance, and assurances for adequate police for crowd and traffic control. In the event temporary structures are erected in the parking lot, we would expect that any property damage to the site or the building would be reimbursed by the City. I am personally delighted that the City of Miami will be hosting this forthcoming Inter -American Trade Fair and hope that Miami Expo/Center can share in this activity. Sincerely, �\ // �i � -' Robert A. Lefcort General Manager RAL/sh