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HomeMy WebLinkAboutR-87-0643it J-87-608 7/1/87 RESOLUTION NO.�� A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE TWO (2) AGREEMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, WITH CELLAR DOOR CONCERTS, INC., AND WITH FANTASMA PRODUCTIONS, INC., FOR REBATES OF NOVELTY CONCESSION REVENUES DERIVED FROM MULTIPLE CONCERTS TO BE PROMOTED AT CITY OF MIAMI STADIUM FACILITIES BY CELLAR DOOR CONCERTS, INC., AND BY FANTASMA PRODUCTIONS, INC., 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, Cellar Door Concerts, Inc., and Fantasma Productions, Inc., have both expressed interest in entering into agreements with the City for a rebate of novelty concession revenues in exchange for guaranteeing multiple concerts in City stadiums; and WHEREAS, Cellar Door Concerts, Inc., has agreed to hold two major concerts at the Miami Orange Bowl Stadium and a third at either the Marine Stadium or the Bobby Maduro Miami Baseball Stadium; and WHEREAS, Fantasma Productions, Inc., has agreed to hold two concerts at the Marine Stadium and two additional concerts at either the Orange Bowl Stadium or the Bobby Maduro Miami Baseball Stadium; and WHEREAS, the three concerts guaranteed by Cellar Door Concerts, Inc., and the four concerts guaranteed by Fantasma Productions, Inc., will increase the City's revenues from stadium rental, 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 two agreements, in a form acceptable to the City Attorney, with Cellar Door Concerts, Inc., and with— Fan -a ma CITY COMMI8811 MEETING OF 87-63� � 3 JUt 9 1987 Productions, Inc., for rebates of novelty concession revenues derived from multiple concerts to be promoted at City of Miami Stadium facilities by Cellar Door Concerts, Inc., anti Dy Fantasma Productions, Inc., within a one-year period. PASSED AND ADOPTED this 9th day of July , 1 . ATT XAVIER L. AAREZ MAYOR MAT I HIRAI, CITY CLERK PREPARED AND APPROVED BY: ROBERT F. CLARK CHIEF DEPUTY CITY ATTORNEY APPROVYD^AS TO FORM AND CORRECTNESS: 11CIA/ A. DOUGHERTY ITY ATTORNEY Y allN-29-07 MON 11 :42 PARKS AMC. P. 0?k CIYY or MIAMI, PLOWIQA smvnn-crrice MEMORANOUM .o Honorable Mayor and 114Ti' JUN 3 U 1987 rI«, Members of the City Commission yu.�cn. Multi -Use promoter' n Agreements for City Stadiums �MOM11tRt11tN0l. Cesar lie Odic City Manager cnc�osuRcs Recommendations It is respectfully recommended that the City Commission adopt the attached resolution authorizing the City Manager to execute two agreements, one with Cellar Door Concerts, Inc., and the other with Fantasma Productions, Inc. Each agreement requires the promoter to produce multiple concerts (Cellar Door, three and Fantasma, four) in City stadiums over a one-year Period, in return for rebates of novelty concession revenue derived from those events. Background; — The Department of Parks, Recreation and Public facilities has prepared the attached. legislation, Cellar floor Concerts, Inc&# has guaranteed to promote three concerts and Fantasma Productions, Inc.,, will produce four concerts in a one-year ' period at City stadiums, in exchange for rebates from the novelty concession revenues from their respective events held at the Orange Bow Stadium, Bobby Maduro Miami Baseball Stadium and Marine stadium. Cellar Door will promote two major shows in the Orange Bowl and a third at either the Marine Stadium or the Hobby Madura Miami Baseball Stadium. Fantasma will produce two shows at the Marine Stadium and two additional events at a City- facility to be named. The City will generate substantial additional revenue from these seven shows from stadium rental, food and beverage concessions and Varking operations. 19-/ JUM-29—ST KOM 11242 PARKS REC. Honorable Mayor and Members of the City Commission Pape 2 P . 134 The terms of each Agreement offers twenty-five percent (25%) of whatever the City receives from concert tour merchandisers to the promoter when the City receives a flat fee based on concert attendance. if the City receives novelty concession revenues based on a percentage or gross sales, then the promoter of the given event•. will receive a rebate equal to five percent (5%) of gross sales. The City's rate varies from 10 to 301 of gross sales. The Department of Parks, Recreation and anticipates revenues as follows: Cellar Door Rent, Concessions and Parking $ 1950000 Total Novelty Revenue* 96,000 Promoter Rebate (25%) (24,000) Total City Revenue $ 2671000 * eased on a $1.00 per capita rate Public Facilities Fantasma $ 105,000 48,000 (12,000) $ 141,000 The Department strongly supports the view that these rebate agreements will serve as inducements -to bring more events into City stadiums in the face of increasing local and statewide competition from other concert venues. Every major concert event held in a City stadium helps encourage other promoters to hold their shows with us. Attachments: Proposed Resolution Proposed Agreement 8': _6.1 CITY OF MIAMI, FLOPIDA i THIS AGREEMENT made and entered into this day of , 1987, by and between the Citv of Miami, a municipal corporation of the State of Florida, hereinafter referred to as the "CITY" and Cellar Door Concerts, Inc., a Florida for profit corporation with its nrincinal office located 2190 S.E. 17th Street, Suite 312, Ft. Lauderdale, Florida 33316, telephone (305) 940-0223, 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 June 26, 1987 at any combination of CITY's Orange Bowl Stadium, Bobby Maduro Miami Baseball Stadium and Miami Marine Stadiun 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 -'t concession rate based on attendance and/or paid i 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. ic. 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. I/ As used in this paragraph, "fee" refers to the stadium use fee which the City may elect to receive on a fixed or percentage basil. 2. PROMOTER covenants and aqrees to ray tc) CITY minimum stadium use fees for three concert events. Said minimum 1 use fees are: $15,000 for an Orange Bowl Stadium concert and $2,500 for any concert at either the Marina Stadium or the Bobby Maduro Baseball. Stadium. 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 rehate shall be made at the conclusion of each event. 4. The parties will ranter 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 varied 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. ` 8. 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. - 2 - 87 _6,13 i 10. Thi s instrument and its attachments: rcnst i trite t 1,(, sol t� and only 'Agreement of- the partios hereto rolatinq to said agreement, and correctly set forth tho rights, duties and obligations of each other as of its date. Any prior agreements, promises, no(Intiations, car representations not expressly scat forth in this Agreement are of no force oi- effect . ll.. No amendments to this Agreement shall be binding on either party unless in writinq 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 GENERAL SERVICES ADMINISTRATION CITY OF MIAMI, a Municipal Corporation of the State of Florida BY Cesar H. Odic City Manager PROMOTER: Cellar Door Concerts, Inc., a Florida for profit corporation BY .John J. Boyle President Title (SEAL) APPROVED AS TO FORM AND CORRECTNESS: LUCIA A. DOUGHERTY CITY ATTORNEY 3 - (. e7-s,13. CORPORATE RESOLUTION WHEREAS, the Board of Directors of CELLAR DOOR CONCERTS, INC., has examined terms, conditions and obligations of the proposed Agreement with the City of Miami for novelty concession rebates at stadium events; WHEREAS, the Board of Directors of CELLAR DOOR CONCER'rs, 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 CELLAR DOOR CONCERTS, 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 for novelty concession rebates at stadium events; in accordance with the contract documents furnished by the City of Miami, and for the price and upon the terms and payments contained in the proposed contract submitted by the City of Miami. IN WITNESS WHEREOF, this day of 198 . CHAIRMAN, Board of Directors By (Signature) Print or Type Name Attest: (SEAL) Corporate Secretary Signature Print or Type Name EXHIBIT 1 L 87 CITY OF MIAMI, FLORIDA THIS AGREEMENT made and entered into this day of , 1987, by and betw(­n flio 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 South Dixie Highway, West Palm Belch, Florida 33401, telephone (305) 832-6397, hereinafter referred to as the "PROMOTER" R E C I T A L In consideration for PROMOTER presenting at least four concert events within a one-year period to commence 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 fee 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 (250) of the monies CITY receives from concert merchandisers. b. If CITY negotiates a fee based on a percentage of gross sales, which is either 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. 1/ As used in this paragraph, "fee" refers to the stadium use fee which the City may elect to receive on a fixed or percentage basis. 2. PROMOTER covenants and agrec"s to nav tn CITY minimum stadium u>;e fees for four (4) concert events. Said minimum use fees are: $15,000 for an Oran(je Bowl Stadium concert and $2,500 for any concert at either the Marine Stadium or the fsobhy Maduro Miami Rasel)a11 Stadium. 3. Payment of rebate to PROMOTER will only occur upon completion of four concert events. Tf said four events do not occur within term of this Agreement then no payment will be made to PROMOTER. Payment will bo made within two weeks after completion of the 4th 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 Aqreement shall be binding upon the parties, their heirs and assigns, and cannot be varied 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 anent or agents executing this Aqreement. f 8. 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. 10. This instrument and its attachments constitute the sole and only Agreement of the parties hereto relating to 2 - 8'r said agreement, and correctly srt Iorr.h the richt=, duties and obligations of each other as of its d ite. Any prior agreements, promises, nt-notiations, or representations not expressly set forth in this Agreement are of no force or effect. 11. No amendments to this Agreement shall be binding en either party unless in writino 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 GENERAL SERVICES ADMINISTRATION CITY OF MIAMI, a Municipal Corporation of the State of Florida m Cesar H. Odio City Manaqer PROMOTER: Fantasma Productions, Inc., a Florida for profit corporation BY Jon Stoll President Title APPROVED AS TO FORM AND CORRECTNESS: LUCIA A. DOUGHERTY CITY ATTORNEY - 3 - (SEAL) 8 --6.13 CORPORATE RESOLUTION WHEREAS, the Board of Directors of F:ANTASMA PinDUCTIC`'.S, INC., has examined terms, conditions and obligations of the proposed Aqreement with the C i.ty of Miami foi- novelty ennc-o!-s i nn rebates at stadium events; WHEREAS, the Board of Directors of F?1NI'ASMA PRODUCTIONS, INC., has examined terms, conditions and ohligatinns 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 FANTASMA 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 for novelty concession rebates at stadium events; in accordance with the contract documents furnished by the City of Miami, and for the price and upon the terms and payments contained in the proposed contract submitted by the City of Miami. IN WITNESS WHEREOF, this__ _ day of 198 . Attest: Corporate Secretary Signature Print or Type Name CHAIRMAN, Board of Directors By (Signature) Print or Type Name (SEAL) EXHIBIT 1.