HomeMy WebLinkAboutR-01-0226J-01-173
03/8/01
RESOLUTION NO. 01- 226
A RESOLUTION OF THE MIAMI CITY COMMISSION
AUTHORIZING THE CITY MANAGER TO EXECUTE AN
AGREEMENT, IN A FORM ACCEPTABLE TO THE CITY
ATTORNEY, WITH 21ST CENTURY CINEMAS FOR THE
TEMPORAY USE AND MANANAGEMENT OF TOWER
THEATER, LOCATED AT 1508 SOUTH WEST 8TH
STREET, MIAMI, ON AN INTERIM BASIS FOR AN
ADDITIONAL SIX (6) MONTH PERIOD, UNTIL SUCH
TIME AS A REQUEST FOR PROPOSALS IS ISSUED
AND AN AGREEMENT FOR LONG-TERM MANANAGEMENT
OF THE TOWER THEATER IS EXECUTED.
WHEREAS, the City of Miami (the "City") is owner of certain
real property located at 1508 South West 8th Street, Miami,
Florida, (the "Tower Theater"); and
WHEREAS, on September 28, 2000, the City Commission adopted
Resolution 00-823 ratifying and confirming the City Manager's
execution of a use agreement (the "Use Agreement") with 21St
Century Cinemas, Inc. (the "User") for the use of the Tower
Theater, on an interim basis, while the City undertakes a
competitive bidding process; and
CITY C SSM
MEETMG OF
MAR 0 3 2001
Reaaion No.
01-226
WHEREAS, the Use Agreement expires on February 21,
2001; and
WHEREAS, due to a delay in issuing the Request For
Proposals, it is necessary to extend the use period for which
21St Century Cinemas, Inc. is operating the theater; and
WHEREAS, as a condition to agreeing to continue operating,
the User has requested some amendments to the use agreement to
provide for: 1) the City assumption of additional maintenance
responsibilities including pest control, garbage collection and
ground services; 2) an increase from 60%-40% to 50%-50% in net
revenue sharing from City sponsored special events in which
admission is charged; and 3) reimbursement by the City to User
of the actual costs incurred for User's services and rental of
additional equipment provided during City sponsored special
events in which there is no admission charge; and
WHEREAS, the User has further requested that the City
continue to waive the ticket surcharge so that he may keep
admission rates low.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE
CITY OF MIAMI, FLORIDA:
Page 2 of 4 01— 226
Section 1. 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 a Temporary Use Agreement, in substantially the attached
form, with 21St Century Cinemas, Inc., to provide for the User's
continued operation of the theater on an interim basis, for an
additional six (6) month period, while the City completes the
RFP process.
Section 3. This Resolution shall become effective
immediately upon its adoption and signature of the Mayor.'
1 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 4
61- 226
PASSED AND ADOPTED this $th day of March
2001.
JOE CAROLLO, MAYOR
In accordance with NAiarni Coda 1,ec. 2-35, since the Mayor did not indicate approval of
this legislation by signing in the designated place provided, said legislation now
becomes effective with the elapse of ten (10) days from the date of commission action
regarding same, without the Mayor exercising a vote.
ATTEST:
WALTER FOEMAN
CITY CLERK
APPROVED AS TO FORM AND CORRECTNESS: RRECTNESS:
-00
KDRO VILARELLO
ATTORNEY
5105:BSS:ELF
S
Wal er J. Foeman, City Clerk
Page 4 of 4 oi— 226
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO:
The Honorable Mayor and Members
of the City Commission
FROM
Gimen
City Manager
RECOMMENDATION:
DATE:
SUBJECT:
Use Agreement
of Miami &
REFERENCES: Cinemas, Inc.
ENCLOSURES:
12
FILE:
between the City
21 ST Century
The administration recommends that the Miami City Commission approve the attached
Resolution authorizing the City Manager to execute a Use Agreement (the "Agreement"), in
substantially the attached form, with 21St Century Cinemas, Inc. (the "User"), for the User's
continued operation of the Tower Theater located at 1508 SW 8 Street, Miami, Florida on an
interim basis, for an additional six (6) month period while the City completes the RFP process.
BACKGROUND:
The City of Miami (the "City") is owner of certain real property located at 1508 S.W. 8th Street,
Miami, Florida, (the "Tower Theater"). On September 28, 2000, the City Commission adopted
Resolution 00-823 ratifying and confirming the City Manager's execution of a use agreement
(the "Use Agreement") with 21" Century Cinemas, Inc. (the "User") for the use of the Tower
Theater. The Use Agreement will expire February 21, 2001.
The City and the User find it to be in the best interest of the parties to allow the Tower Theater to
remain open on an interim basis, for an additional six (6) month period while the City completes
the RFP process.
The Office of Asset Management has been working on a new RFP for the property.
Unfortunately, due to lack of quorum, Asset Management was unable to address the Cultural and
Fine Arts Board until January 8, 2001. At this meeting the Board took no action but indicated
they would provide their comments to the draft RFP within two weeks. As of February 9, 2001,
no comments had been received. Consequently, Asset Management will be issuing the RFP soon
and the comments of the board, if any, may not be included.
01- 226
Honorable Mayor and Members
Of the City Commission
Page 2
Due to the delay in issuing the RFP, it is necessary to extend the use period in which 21 st Century
Cinemas, is operating the theater. As a condition to agreeing to continue operating, the User has
requested some amendments to the use agreement to provide for the following: (1) City
assumption of additional maintenance responsibilities including pest control, garbage collection,
and ground services; (2) an increase from 60-40 to 50-50 in net revenue sharing from City
sponsored special events in which admission is charged; and (3) reimbursement by City to User
of the actual costs of User's services and rental of additional equipment provided during City
sponsored Special Events in which there is no admission charge. The User would additionally
like the ticket surcharge to continue to be waived so he may keep admission rates low.
Following a review of the User's unaudited operating statements for the last four (4) months of
operation which indicates the User is operating in the "red", we believe it is in the best interest of
the City to execute a new temporary use agreement with the User incorporating the above
requested changes. This will permit the theater to remain open while the City completes the RFP
process.
Highlights of the Agreement:
Term: Six months commencing February 22, 2001
Fee to the City: $1.00/month
Insurance: User is responsible to provide general liability insurance of
1,000,000/per occurrence combined single limit for body injury
and property damage. Excess Umbrella of a $1,000,000.
Automobile liability with a limit not less than $1,000,000
combined single limit for body injury and property damage.
Worker's Compensation in the forms and amounts required by the
Florida Law.
City Responsibilities: City, at its sole cost, shall provide the following services:
a) Heating, ventilation and air conditioning as required for the
comfortable use and occupation of the Property;
b) Water and sewage facilities;
c) Electric current for normal use and lighting;
01- 2`6
Honorable Mayor and Members
Of the City Commission
Page 3
d)
e)
fl
g)
h)
i)
D
Indoor and outdoor lighting;
Elevator service;
Security & Fire alarm monitoring services;
City's Equipment;
Sprinklers;
Garbage collection;
Grounds services including lawn, shrub and tree maintenance
and removal of any rubbish or obstructions from the Property;
Maintenance
Responsibilities: City, at its sole cost, shall maintain in good order and repaired all
major building systems including the HVAC, theater equipment,
plumbing, alarms, concession and sprinklers.
User Responsibilities: The User, at its sole cost, shall provide the following services:
a) Daily cleaning services for the Property;
b) Employ, train, pay, supervise, discharge and determine the
compensation of all employees necessary for the operation of
the Property;
c) Purchase all supplies required for the operation of the Property,
including but not limited to, office supplies, cleaning supplies,
and food and beverages;
d) All marketing and advertising required for its operations except
for city -sponsored events.
Ticket Surcharge: Waived
Termination
Without Cause: Either party may terminate the agreement, without cause, upon
providing not less than 90 days notice.
Termination
With Cause: The City may terminate the agreement, with cause, upon
providing not less than 30 days notice.
CAG & Mayor CC —Use Agreement 2
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