HomeMy WebLinkAboutR-88-0975J-88-983
9/29/88
RESOLUTION NO. NS--9 i
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE AN AGREEMENT, IN SUBSTANTIALLY THE
ATTACHED FORM, BETWEEN THE CITY OF MIAMI AND
FANTASMA PRODUCTIONS, INC. FOR REBATES OF
NOVELTY CONCESSION REVENUE nERIVED FROM
MULTIPLE CONCERTS TO BE PROMOTED AND PRODUCED
BY SAID CORPORATION AT CITY OF MIAMI STADIUM
FACILITIES WITHIN A ONE-YEAR PERIOD.
WHEREAS, the Department of Parks, Recreation and Public
Facilities desires to increase the number of concert events held
in the Orange Bowl Stadium, Bobby Maduro Miami Baseball Stadium
and the Marine Stadium; and
WHEREAS, Fantasma Productions, Inc., has expressed interest
in entering into an agreement with the City for a rebate of
novelty concession revenues in exchange for the guaranteed
productions of multiple concerts in City stadiums; and
WHEREAS, said corporation has agreed to hold at least three
(3) concerts City stadiums: the Marine Stadium the Orange Bowl
Stadium and/or the Bobby Maduro Miami Baseball Stadium in any
combination; and
WHEREAS, the first of the guaranteed show is the George
Michael concert, scheduled for October 25, 1988, at the Orange
Bowl Stadium and
WHEREAS, the three concerts guaranteed by Fantasma
Productions, Inc. will increase the City's revenues from stadium
rental, ticket surcharge food and beverage concessions, and
parking;
NOW THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The City Manager is hereby authorized to execute
an agreement, in substantially the attached form, between the
City of Miami and Fantasma Productions, Inc., for rebates of
novelty concession revenues derived from multiple concerts to be
promoted and produced at City of Miami Stadium facilities said
corporation, within a one-year period.
CITY COMMISSION
MEETING OF
OCT 27 1988
RESOLUTION No. 88-9 ( S
ff
PASSED AND ADOPTED this 27th day of October , 1988.
XAVIER L. SUA
MAYOR
ATTEST:
`' PREPARED AND APPROVED BY:
ROBERT F. CLARK
CHIEF DEPUTY CITY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
JORG L. FERN DEZ
CITY ATTORNEY
CITY OF MIAMI, FLORIDA
T11IS AGREEMENT made and entered into this day of
1988, by and between the City of Miami, a
municipal corporation of the State of Florida, hereinafter
referred to as the "CITY" and Fantasma Productions, Inc., a
Florida for profit corporation with its principal office located
2000 S. Dixie Hwy., West Palm Beach, Florida 33401 telephone
(407) 832-6397, hereinafter referred to as the "PROMOTER".
R E C I T A L:
In consideration for PROMOTER presenting at least three
concert events within a one-year period to commence September 1,
1988 at any combination of CITY's Orange Bowl Stadium, Bobby
Maduro Miami Baseball Stadium and Miami Marine Stadium
facilities, CITY will rebate certain percentages of concert tour
novelty concessions revenues received by the CITY.
1. For each concert scheduled in a CITY stadium, CITY
will negotiate with concert tour novelty merchandisers
to obtain CITY's highest possible rate of sales of
concert tour related merchandise. PROMOTER will
receive a rebate from CITY of said sales as follows:
a. If CITY negotiates a feel to be based on a fixed
concession rate based on attendance and/or paid
admission tickets,, then CITY will rebate to
PROMOTER twenty-five percent (25%) of the monies
CITY receives from concert merchandisers.
b. If CITY negotiates a fee based on a percentage of
gross sales, which is equal to or greater than 10%
of gross sales, then CITY will rebate five percent
(5%) of gross sales to PROMOTER.
C. If CITY negotiates a fee based on a percentage of
gross sales and if said percentage is less than
ten percent (10%), then CITY will retain five
percent (5%) and rebate the balance to the
PROMOTER.
88-9'75
1 fee as used herein and in sub -paragraphs b and c referes to the
negotiated fee with the concert tour novelty merchandisers.
2. PROMOTER covenants and agrees to pay to CITY minimum
stadium vise fees for three concert events. Said
minimum use fees are: $15,000 for an Orange Bowl
Stadium concert. and $2,500 for any concert at either
the Marine Stadium or the Bobby Maduro Baseball
Stadium. Attached is Fantasma Check #268 dated August
26, 1988 in the amount of $20,000.00.
3. If PROMOTER does not produce three events within the
term of this Agreement, then the stadium use deposits
held by CITY shall be retained and no refund of said
deposits shall be made to PROMOTER for those concerts
that do not occur. Payment of novelty concession
rebate shall be made at the conclusion of each event.
4. The parties will enter into separate stadium use
agreements for each concert.
5. That any matters not herein expressly provided for
shall be in the discretion of the City Manager or his
designated representative.
6. PROMOTER agrees that there shall be no discrimination
as to race, sex, color, creed, national origin or
handicap in connection with any operations under this
Agreement.
7. All terms and conditions of this written Agreement
shall be binding upon the parties, their heirs and
•assigns, and cannot be waived or waived by any oral
representation or promise of any agent or other person
of the parties here, unless the same be in writing and
mutually signed by the duly authorized agent or agents
executing this Agreement.
S. That the parties intend that no leasehold interest is
conferred upon PROMOTER.
9. If it becomes necessary for CITY to collect any monies
due to by PROMOTER, PROMOTER agrees to pay any and all
reasonable attorney's fees and costs expended in the
collection thereof.
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88-975
OT
10. This instrument and its attachments constitute the sole
and only Agreement of the parties hereto relating to
said agreement, and correctly set forth the rights,
duties and obligations of each other as of its date.
Any prior agreement, promises, negotiation, or
representation not expressly set forth in this
Agreement are of no force or effect.
I1. No amendments to this Agreement shall be binding on
either party unless in writing and signed by both
parties.
IN WITNESS WHEREOF, the parties hereto have individually and
through their proper corporate officials executed this Agreement
the day and year first above written.
ATTEST:
MATTY HIRAI
City Clerk
ATTEST:
Corporate Secretary
APPROVED AS TO INSURANCE
Insurance Manager
APPROVED AS TO FORM AND CORRECTNESS:
Jorge L. Fernandez,
City Attorney
APPROVED BY THE DEPARTMENTAL DIRECTOR
OF PARKS, RECREATION AND
PUBLIC FACILITIES DEPARTMENT
WALTER E. GOLBY- I iCTOR
CITY OF MIAMI, a Muni-
cipal Corporation of the
State of Florida
BY:
CESAR H. ODIO
City Manager
ADVERTISER, Fantasma
Productions Inc., a for
profit Florida Corp a
BY:
f f e5 r�o�-,ti•�
Title
(SEAL)
APPROVED AS TO DEPARTMENTAL
REQUIREMENTS:
Alberto Ruder, Director
Department of Paeks, Recreation
and Public Facilities
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OW
10. This instrument and its attachments constitute the sole
and only Agreement of the parties hereto relating to
said agreement, and correctly set forth the rights,
duties and obligations of each other as of its date.
Any prior agreement, promises, negotiation, or
representation not expressly set forth in this
Agreement are of no force or effect.
11. No amendments to this Agreement shall be binding on
either party unless in writing and signed by both
parties.
IN WITNESS WHEREOF, the parties hereto have individually and
through their proper corporate officials executed this Agreement
the day and year first above written.
ATTEST:
MATTY HIRAI
City Clerk
ATTEST:
Corporate Secretary
APPROVED AS TO INSURANCE
Insurance Manager
APPROVED AS TO FORM AND CORRECTNESS:
Jorge L. Fernandez,
City Attorney.
APPROVED BY THE DEPARTMENTAL DIRECTOR
OF PARKS, RECREATION AND
PUBLIC FACILITIES DEPARTMENT
WALTER E . GOLBY; -7ECTOR
CITY OF MIAMI, a Muni-
cipal Corporation of the
State of Florida
BY:
CESAR H. ODIO
City Manager
ADVERTISER, Fantasma
Productions Inc., a for
profit Florida Corp a
BY:
Title
(SEAL)
APPROVED AS TO DEPARTMENTAL
REQUIREMENTS:
Alberto Ruder, Director
Department of Paeks, Recreation
and Public Facilities
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88-9'75
CORPORATE RESOLUTION
WHEREAS, the hoards rif Directors of Fantasma Productions,
Inc., has examill"d terms, conditions and obligations of the
hropose�] Agreement_ with the City of Miami for novelty concession
rebates at stadium events;
WHEREAS, the lizard of Directors of Fantasma Production,,
Inc., has examined terms, conditions and obligations' of the
proposed contract with the City of Miami for novelty concession
rebates at stadium events, and;
WHEREAS, the Board of. Directors at a duly held corporate
meeting has considered the matter in accordance with the By -Laws
of the corporation;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
FANTASHA PRODUCTIONS, INC., that the President ( ) or Vice -
President ( ) or Secretary ( ) (please check one) is hereby
authorized and instructed to enter into a contract in the name of
and on behalf of this corporation with the City of Miami, and for
the price and upon the terms and payment contained in the
proposed contract submitted by the City of Miami.
IN WITNESS WHEREOF, this 30 day of
_IL•II�
Attest:
Corporate Se4dretary Signature
YyUrV
Print or Type Name
Z
IRMAN, Board of ors
gna e
j-aha tt,# ,1 U- . S-fv ( /
Pr nt or Type Name
(SEAL)
EXHIBIT 1
88-975
3
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
To Honorable Mayor and Members
of the City Commission
FROM
Cesar H. Odio
City Manager
RECOIL MMDATION:
DATE: 0 CT 17 1988 FILE.
SUBJECT. Resolution to Approve Contract:
Fantasma Productions' Novelty
Rebates
REFERENCES:
ENCLOSURES:
It is respectfully recommended that the City Commission adopt the
attached resolution authorizing the City Manager to execute an
agreement, in the attached form, with Fantasma Produtions, Inc.
requiring said promoter to produce at least three (3) concerts
within a one-year period at City of Miami stadiums in return for
a rebate of the City's revenue from concert novelty sales.
BACKGROUND:
The Department of Parks, Recreation and Public Facilities has
prepared the attached legislation concerning a novelty rebate
agreement with Fantasma Productions, Inc. Staff has been =
negotiating with this promoter to bring more revenue -generating
concerts to City stadiums and has obtained their guarantee to =
produce at least three (3) such events within a year. The =-
concerts are to be held in any of the City's three stadiums, and =_
the George [Michael concert on October 29, 1989 is the first under _
the proposed agreement.
In return, the City will rebate a portion of the revenue it
receives f=om the sale of novelties to Fantasma for each concert
it produces. The portion of novelty revenue to be rebated is
variable, depending on fees negotiated with novelty merchandisers
for each concert tour. Where the City receives a flat fee (a
fixed concession rate based on attendance, such as $1 per cap)
from the merchandiser, the City will rebate 25% of the monies it
receives to Fantasma. Where the City receives a percentage of
gross sales from novelties, we would rebate up to a maximum of
five per cent (5%) to Fantasma as follows: if City receives 10%
qr more of gross novelty sales, then Fantasma will receive 5% of
gross novelty sales or one-half of the City's revenue; if the
City receives less' than 10% of gross novelty sales, then City
retains 5% of gross novelty sales and Fantasma will receive the
balance.
Honorable Mayor and Members
of the City Commission
page 2
For each concert produced by Fantasma, the City will generate
substantial additional revenue from stadium use fees, the ticket
surcharge, food and beverage concessions, and parking operations.
Anticipated revenue for the three concerts, based on contractual
arrangements similar to those negotiated for the George Michael
Concert, would be $562,500 ($187,500 x 3), assuming that acts of
comparable popularity are booked and that all events are held at
the Orange Bowl.
The above figure compares favorably with the total revenue figure
of $400,000 which the City received last year from three concerts
produced by Cellar Door Concerts, Inc. under a similar novelty
rebate agreement, the primary difference being the new ticket
surcharge.
This action .is recommended because these rebate agreements serve
as inducements to bring more events into City stadiums in the
face of increasing state and local competition from other concert
venues. Additionally, every major concert held in a City
facility encourages other promoters to bring their shows to us.
This item is a companion to the resolution authorizing the terets
and agreement with Fantasma Productions, Inc. for the George
!Michael Concert.
Attachments: Resolution
Agreement
88-975