HomeMy WebLinkAboutItem #05 - Discussion Itemc T r !'F `,i1 1P•11, '1_0:?1D 1
INT R•OFFIC i`,1i:.MO 2ANDU;.1
To:
Joseph R. Grassie
City Manager
Jenni
ment
s,.Director
,
f Stadiums and Marinas
June 22, 1979
“JEJEcr: Beer and scoreboard for the
Orange Bowl.
REFERENCES:
(1) Draft Orange Bowl Scoreboard
LNCL°-;uNES:Agreement between City and Miami
Dol(2) Draft No. 2 to
Orange Bowl. Concession Lease and
Agreement between City and Miami
Dolphins, •Ltd..
._(3) Draft Resolution for City
Commission consideration.
It ,is recommended that the City Commission
acceptand approve the enclosed Agreements
between the City' and the Miami Dolphins, Ltd.
and that the City Manager be authorized to
presentthese Agreements to the Miami Dolphins,
Ltd. for execution within a maximum period
of thirty days.
In July of,197.8;the'City Commission passed Resolution No..78-482;.
authorizing theCity.:Manager:toforward draft; scoreboard and:beer •
agreements to the Miami Dolphins`, Ltd. for their consideration.
These documents have now;been<redrafted to incorporate the follow-
ing new provisions:
1.` The Miami Dolphins, `Ltd will install the''new'Orange
.Bowl eb scoreboard system under. the terms and conditions
previouslydiscussed.
. The Miami .Dolphins.,`Ltd. will implement beer ^ales.
under:»the terms and conditions previously'discussed
but will be required to pay the City of Miami 32%
of gross •Peer sales (less taxes)until July 1-,. 1980.
The following new Provisions have also been added to the.
beer document:
•
a The Orange Bowl' concession operation will be
offered for public. bidding when the present
concession :.contract; expires :on July 1, 1980,
after ,which the Miami„Dolphins, Ltd. shall
have.. thirty days to;matchthe highest bid.
Page
2
i
▪ The documents promulgated in 1980 to advertise
the Orange Bowl concession; operation for public
bidding will requirethatbidders post a
$100,000;bid bond, and that bids ofless than
35% of gross (less taxes) on beersales and.
31% of gross (less taxes), on food, soft drinks,
and novelties, will not be accepted. Also,.
bidderswill be advised that the present con-
cessionaire will be given the opportunity to
match the highest bid.
. If the, Miami; -Dolphins, Ltd. do, not choose to
match. the highest bid, the City will reimburse,
them for their unamor;tized investmerit made to
implement beer sales,- according to a schedule -
to be agreed' by -the 'parties.
▪ The 3-year escape clause ,.in .the. Dolphins/City Orange
•Bowl rental agreement of June 8, 1977.shall be
amended. to a U-year escape clause.
Page 2 of 2
•
•
RESOLUTION NO.
A -RESOLUTION ACCEPTING AND APPROVING THE
CITYMANAGER'S ATTACHED PROPOSED AGREEMENTS,
FOR A"SCALED-DOWN SCOREBOARD SYSTEM AT THE
ORANGE BOWL STADIUM AND FOR THE 'SALE OF BEER
AT THE ,ORANGE "BOWL STADIUM; SAID BEER AGREE-
MENT PROVIDING THAT THE PRESENT CONCESSIONAIRE
SHALL.SELL BEER FOR A PERIOD ENDING WITH THE
TERMINATION DATE OF THE EXISTING CONCESSION`
AGREEMENT ON JULY 1, 1980 AT .WHICH TIME THE
CONCESSION OPERATION WILL" BE OFFERED FOR PUBLIC
BIDDING AND THE PRESENT CONCESSIONAIRE BE GIVEN
THE OPPORTUNITY TO MATCH THE HIGHEST BID, AND"
THAT THE MIAMI DOLPHINS, LTD. MODIFY THE.3-YEAR
ESCAPE CLAUSE CONTAINED IN THE PRESENT.; STADIUM"
LEASE. AGREEMENT""BETWEEN THE CITY AND THE MIAMI
.DOLPHINS ,' LTD . TO- A,4-YEAR' ESCAPE CLAUSE; AND
AUTHORIZING, THE CITY MANAGER TO PRESENT THE
AFORESAID-AGREEMENTS:"TO THE"MIAMI,DOLPHINS,
LTD,. FOR CONSIDERATION BY THEM FOR A MAXIMUM
PERIOD .OF. THIRTY DAYS
Section The attached proposed
agreements are hereby
and approved for a scaled -down scoreboard system at the
Stadium and for the sale of beer. at the orange Bowl
Bowl
accepted
Orange Bo
Stadium,"said beer agreement providing that the present concessionaire
11 beer
ending with. the termination
shall
for
se
date
date of
the eistir.g concession agreement on July "1, 1980 at which time the
operation will be offered for public bidding and the
present concessionaire be given the opportunity to match the
concession
bid, and, that the Miami Dolphins, Ltd. modify the
cont
and
highest
3-year escape clause
aired in the present stadium lease agreement between the City
the Miami Dolphins, Ltd. to a '4-year. escape clause.,
Section 2. The City; Manager is<hereby authorized`to
to the Miami Dolphins, Ltd. for their con-
aforesaid agreements
the
sideration for a maximum period
PASSED ANDADOPTED this
f thirty days
day of
present
1979
terra .►.o/ 4
•
ATTEST
RALPII.. G .
PREPARED
AND APPROVED BY:
ROBERT CLARK
APPROVED AS TO FORM AND CORRECTNESS:
GEORGE
ORANGE, BOWL
.:SCOREBOARD AGREEMENT
THIS AGREEMENT, made and entered into this
day of ,197_, between the City of Miami, a
municipal corporation organized and existing under the laws
of the State of. Florida (the "CITY") and the Miami
Ltd, a Florida limited partnership (DOLPHINS).
Dolphins,
WHEREAS, the Cityis the owner of the Miami Orange
Bowl Stadium (the "O1ANGE BOWL") located at 1500 N.W. 3`
Street, Miami,` Florida; and
WHEREAS, the
DOLPHINS is the owner
of " a National'
Football League franchise which utilizes the ORANGE BOWL for
MiamiDolphins professional
football home games; and
WHEREAS,; the CITY and the DOLPHINS are mutually
desirous
of renovating and upgrading the present
ORANGE BOWL
scoreboard system; and
WHEREAS, the CITY has been conducting negotiations`.
with Stewart -Warner Corporation relative to installation and
operation of a scoreboard facility for the ORANGE BOWL,
since authorized to do so by Resolution No. 75-458, passed
and adopted by the City Commission on May8, 1975; and
WHEREAS, Stewart -Warner Corporation has,at the
request of the CITY Administration now designed and offered
for sale to the CITY a scaled -down scoreboardsystem, the
costof which can be amortized over the three year guaranteed
life of the CITY'S current ORANGE BOWL use Agreement with
the DOLPHINS and
WHEREAS, the CITY and the DOLPHINS are willing to
mutually and equally share the cost of installation of the
proposed scoreboard system and also to mutually and equally
share the revenue realized from sale of scoreboard advertiSiflg;
4
covenant, and agree as -follows:
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• • • 4';:kie•-'•-•:Lw.!•tr'H'.• '•••-'1•'-' • . : ..-••*'•-iadttlr47.4:,..".-- .••• - ;....;......-..-_-,:4.,...--..„:7•ey_.,,......•,. ,
f
,,•'-'-',,,d.:--,:-...,. ..-..--....a,,,u ,.-L-d,:,.-..171-•.,.--., Information . • ,,,:.,,
CITY and:..d.'6.:::9.'';:..,...::-:/.H: ; ;,-,•;,...-•••--:::•::•r.:•;,Ipi'07?..-.47...d., _,.".7,-,;.•:;.::;;-.:',.;...-:-••-,';'-'---''''''''ii.:.:M..-41•,::.;•''...--;-1'1',.-....•'•::',;,-,•,....,-i-i-:,-.::•.,-.::,1- enT.1ri'::::.•.;,s,g'....i-7:.•':..-:,:•.•::;.,.:::•,:-...•.,:',,:::„•:.:.,.::.:•.,
..•••.••'-t11a...„•:•••-•••-•.-,...• - :...:.•-•:••,.••,.... ••• inafte..,.., . .... :, ......, Program.,,:...,...;„...,..-;;:...................mr ,...,;.•..,:...,„,::.:-...,,
letter.:,-•:-c47:7
Mr
,,..,,..::,,,,..,,••,...,..,.•.:i...,..;•;;.;,...•..a6...i.jerp._ ...• ,:..:...,.•......,.:....„-..,„,aypoTi..,,,,.- .,,:-6ti,..:,::.....to::,..-.:.-:- i.;:ap4,:....:-...,-:-:-:::..:•:r..,:::-,:.!..,:::::,..-:::,
--..::--0t,:.7,....'-:i.:'-..,j-Oiin--.91.':.1.---:7- :.:'-'.6oitior,.:I':':,.'',:',:'':.'•'''''...,-,,%'-'-':----::::sbt.r17,..7...,,,-:.-,::.:;:'',:'i.':'-'
City
.., : 1-.977.:..,,,...., -.. - -, ..„.,::..., ,.,...-...-,,.....,,,-;:.,:it ew.F.,.,a-,,,d..-,,,.._...--....,,,,; I 1,1:1,.4;;,.-; i',":',.‘.:',-
,.. , .., . f l'. 9 Pl. . ., t, t- .111,Marinas, ..-,-. ,,,-.- ••-•••-• - • ,,,,7...:,......:-frOT,'f:.,•,:.Mr.
Display -..:-.-;,.. '::i1-'1S' !777--;:s-'- 9,...,...--,:::-..--•. •---•,••,:.•:::1...,•.,,:e....l,-::--Y••••L'-.-er•':•'',Oc'•:.:.---- Charles,..,..,:
i:[:-.tt49,,.17..47,-,„:.-•-•:-1.,,-----'„-f--:-::::::::.'--,•.:6---„--6-iiiltiey-'1.f--::':i.',....i'•!-::„-r.:-i-..--,..,.•.-..:.-...- t••:.--•:,:,.-,.:0-pU!.r1,,•P''7-.:---!„-:',. -'----_-----;,-,
.••Dir.,c.....c•-..",'''...--.:! ,:.,.,.,......:..6uipp9,:::-..„..,..,,,,,:-.,,.:......,,..::.....,6±*49r...:::.„„,:.:.:,:::...7,...-.:..,.,,,-:_.,...'..-......-ed...9----sell
Department ...r:iit-.1-:...-,!''-''.:..-,,,..:,-i 6...,,:,...1V117!-.:-..''-'?„.:,-:-..- the .,
t
. .. ...,. •• •••, in -...„ 4- .,.-- • .;:.;..,.... -.:•-y„.--•-••.-•••Corp • --• u.....offe .. • . y ing.
.,..;.•.•:;,, :;•:.__.......:_,..1--. to•• • , ,....„.:., ,.......,..-„••••.-.•.,••,....-.....-e.:,• ,•- •• ,;.;•,;•:, . .: ,.__,:ic" : • .. .• op
f
„:••ri,j.•,!.;:77c--:-:tmea,::::11.4''' ' f'Miami.14'..,-- led and
••-• 2-• -•••:•• -}366a•:'.9...---•••CiSr'''Q • - .-. - instal
- C-J.-, • — ' er2 • •
operating
Assistant • . described scoreboard ' it- - • -•.
previouslysystem,
'
1=
1
(including training of: operating personnel).
That the contract with Stewart -Warner Corporation
b..
design,; manufacture, and installation of an ORANGE BOWL
system, shall be submitted to both parties hereto for review and
approval and, after approval,
hereto as purchasers.
c That unless terminated in accordance with paragraph
1 above, the,DOLPHINS shall retain title to the scoreboard
system and all of its appurtenant and supportiflg parts until the
DOLPHINS have fully amortized their capital investment" in such
system. Upon complete amortization by the DOLPHINS of such capital
of.its appurtenant
shall be executed
y
both parties
investment
title to the scoreboard system and all
and supporting parts shall be conveyed to,the CITY. Provided,
however, upon the expiration of this Agreement
system' and all of its appurtenant and supporting parts shall become
the sole an exclusive property of the CITY and the DOLPHINS
interest therein. The CITY shall
no longer have any
the enire scoreboard
shall
reimburse the
DOLPHINS for. the City's proportion of the cost of purchasing and
installing' the scoreboard system, together with the City's proportion
f mount borrowed by
install the scoreboard y , through
of any interest. on the remaining balance o anya
d system,
of gross
the DOLPHINS to purchase and
deductions from the CITY'S
for
scoreboard
from
scoreboard system as providedin paragraph 5 of this Agreement.
The DOLPHINS shall provide the CITY with evidence satisfactory to
the
the `CITY of t
deduction as
3.
a. That for the entire period of this Agreement the
share
he actual amount of
provided in paragraph ,5 of this Agreement.:
advertising
revenue
interest paid, with each such
SYSTEM OPERATIONS:;
scoreboard system shall be exclusively and unilaterally
operated
and maintained by CITY personnel retained by the CITY. The
system shall be operated, and advertising material presented.
thereon; however, in accordance with procedures and Programs:>
mutually developed by the parties hereto.
b. That those personnel to be trained in scoreboard
system operation and/or maintenance by'Stewart-Warner
be. primarily CITY personnel, but that
Corporation shall
the
DOLPHINS shall have the -right to also appointa maximum o
two:(2) persons to attend this training.
c. That the CITY shall have the: privilege of
the message line portion of
the scoreboard system, on a
reasonable basis, for display of announcements pertaining
to coiningevents at the ORANGE BOWL, or of a public interest
nature.
Agr eemen
Bowl Committee, the DOLPHINS are hereby, advised of certain
restrictions, presentlylegallybinding on the CITY;,. with regard
an. ORANGE -BOWL scoreboard .system and: its :operations;
full
complete
The.
utilizing
That by virtue of the following quote from an
t of July 26,:1976 between the CITY and :the Orange
^he;Cty agrees that it will not,_prior
the Half-time, or during the game itself, visually,:,exhibit
broadcastaudibly,audibly,:any message, picture, sign,, slogan,
as the Scoreboard'.
"The. City agrees that at such time
completed, and ready for use that it` will: be under the,
11` and
control of the said City::
to the game, during,
caricature, advertising, etc., in such ,a way or at a specific
time
game
tit will cause a conflict or distraction with the pre -
shore, the ongoing football game or half-time: pageant,
lions will.be in, good- taste and
and :all � such visua
l . -
suitable for viewing by the general public:"
i, 'SYSTEM -ADVERTISING:
a. -'That the CITY •hereby grants the::DOLPHINS the
•excluc ve rightto sell and contract for the sale;of ad-,
•rert :,irg to be,' displayed •• on ;the scoreboard '
system, except
:that the; CITY: shall have .the right to approve. or -reject. any
advertising client form and/or any advertising copy, signs,'
or displays which approval will not be unreasonably with
held. Said approval or rejection shall be based on reasonable
advertising standards as to content and amount. In this
regard, it is agreed by the DOLPHINS that the CITY has.a
special obligation to Users of the Orange Bowl Stadium' other
than the DOLPHINS to ensure that the advertising displayed
t.events 'of these other Users is not objectionable to them
in terms of either content or amount, or:both. Therefore
advertising advertising on the scoreboard message line unit shall never
be shown, while a game or performance.of any kind is taking
place. Advertising on the scoreboard message line unit
may be shown, in reasonable amounts, commencing one hour
and fifteen minutes before the scheduled time of commence
ment and extending until one hourand fifteen. minutes after
the conclusion of the event; but may only be shown during
intermissions, time-outs, between periods of a sports event
or before
commence'.
or after the event
r any of its activities
b. The DOLPHINS hereby agree to provide the CITY
with copies of the contract forms and advertising rate struct'
sheets to be used for sale advertising on the score-
board, for CITY approval prior to their use. Also, upon
complete execution by all parties to the advertising contracts,
a copy shall be provided to the CITY.
ur.r'.
C. In the event that ,'at termination of-this'Agree-
ment, certain advertising contracts remain unexpired, these.
unexpired advertising contracts shall be assigned by the
DOLPHINS to the. CITY at thetime of termination, and the,
DOLPHINS shall no longer have any interest in the ,said ad
vertising contracts or the revenue therefrom.
O
4 't.i.is A5i60;TiOi.i.,".it will i.Gt.
pormi
of the
it the ORANGE "£A W IJ property ".other ...an the advertising -
_..
'•'• Wi.iCi. the DOLPHINS have` contracted
.. that, during the period
The CITY hereby
aid advertising anywhere
..
Or
ii►GyV►GUuS- Wy���
to purchase adVel"tiu.4 '4 oil the Score)Oa d, Sys eM; exce t - j
that t:f0. CO CessiOiiaire.Alay, in ...a .rmzealate
Vii)2'4Ci3:nC,y- booths
and o:. L-:'.i;:.:l: employees
'aav r ae', he pioduCtS
Ue ii..Cj
area0f
tlio�•r
uni.orems / 1ue�iti: y . 41►G'
DOLPHINS -Shall- be authorizedto
T:.ut file
•
adver ...Sinn sales ,coilmi.s'iOIi_.O
aaverti5:..:icr reVen e
for handling '. the sale
retain an
'L; C.;403J
a.nd contractingJ. 'L0r
sale, o• scoreboard advertising.
5. SYST X REVENUE:
That, aarter deduction by the DOLPHINS of tie
ir
advertising
:percent -(15 %)
operation, maiiitei;.ai.Ce j'"
.r e: scoreboard sys ter•,
the CI
sales commission and' C edUc ion
other d...reet Cest5 asSoC..ai.Cc
and the DOLPHINS shall share equal::
in ... e .renia .i der. of ,all _gross
sh all deduct : ro.;. the CI..
�� S .purchasing
G.4. d the C.IT.. proportion o�. t:.e... cost Oa
co;;,p��.�y1 paid,
L: ,1S
advertisingadvertising reve:iueThes. .uOLDOLPHINSadvert sing revenue until
and installing the scoreboarC. syssystem,together with the �.....ITY
proportion of any interest on ..unas borrowed by the
.i a„' putc..ase ana instai1 6..e. scoreboard syste. .'The
T L er.1iZCG .iuVOlC�?
provide the DV..Pi-i1NS wlt.. 0 complet.e arc. 1,.
shall
of any scoreboard operations mai tehanCe or other, dire costs
a:. s soon as p0s5 .Dle a.ter the, ��: 'ui :culled, wild ''tile DUL.�Ii.NS;si;a+
,
deduct 50a of each suer. invoice .. rom the CI. + b proportion
cost 0: purchasing and `',;.,Astall.ii.C, file scoreboard System :and remit
'� .c. remaining.50% `0.f. eachS1aC:. invoice to tie C. T a . Wi ..ilin tuai . d y
of that inVOice , : toCC.:..ea. With an -accounting
rlceip..
•: ' S �roproportion:Oa. tie cost
rl%iuui�i.Cj ` balance on .....:. C..ITY.
purcna: ing an d installing the scoreboard s`f stein.
DOLPHINS to
C114..
� `^ - r
from the: ' installation and operation G+: the Grange
;;1:; t' .
.w.parties agree that u:uILIM A repr
esents their general
costs and revenues realized
as regards distribution Oi: c
Bowl scoreboard
w.•., . S T i1 . � t�.i�.l7iJJ-: -��i � ACCOUNTS:
T •.�..iiil. YS shall
That file DOLPHINS
available in
place approved by the ,, CITY, / true, accurate , and
CI a
or such o',:hcr
�1, c'iGVCl'..aJa..CJ 5u1ES
coin pl to records and accounts of as
connection a..G:l
w ,th the Orange
c;+ve access to those records and
A. . O
trc`1n:iactidns I
Bowl scoreboard systen, and shall
accounts to authorized l:epresei:ta"
IT,,/
: during reasonable business ours,
al ♦ - 1
-o
Such records and accounts
COLLECTION COSTS .AND i EES
DO Pi I" gY 1 ay the cost of.collection
...u� �r:c ai�.�. iilSS .ar..�� ,.o : pay
reasonableattorney' s .L.ee5 on a..y part of amounts due to the
4..LA1
collectee
.., DOLPHINS under this Agreement .Which must be
past due V and
by attorney after the sane are:
suit or
opportu::ity to
the DOLPHINS
nave i��:�:r. r.O �.a.L..eG iinwriting a
'.
correctcorrectcorrectar.y Gea.uui..• i.L. itis S hGWra FanG,proven by
- result
and
to payoun is due to it t are
. the CITY au�
•
''^'rd party to nee..its, lega.;Oa1;.gati9.1 -to pay
^vi ar.d the •OOL?li.NS` sr all ;equally share
'. as iNJ ur•�.'J tau.:,` then he ci
have had the
G� col.iect loll iJ the sales hird penny.
v' S"'PDTUVi 'CONDITION AND, LIABILITY THEREFOR:
au� CITY .agrees to main
`tern. of n6, in
duringduringduringt• a , uv this Agreeme
COS ViJuu.'�:
•
\,= j^ O: pro r:SS.Onui n.:G Co.iieg.ate
lie incurred; however, by
atL 0a.act:,
uiut!Li •.
•
tne
the DOL?1-iINS
as. a
No liability Of
the ?ara.es ,.
shall
reto, should
be played or 5ta ed the
::o: � events to �1�ay 5
il.gra.emen... ✓ecause of an act O... God
Eti:G `tile
hysical' condition
football
the: 01:ANGB ' BOWL '` become unfit
term of
rein Ca ' • his
urine; rG
pub lic:enem..
9. ihSUiuA CD
Appropriate- insurance nce t0 protect the parties
mutual
yr....,.i. t ._ )o acquired b`y eitlie .partf
:iV�.u..u�c.ua. y:i'..:.$ 5COY1i:IOc'7j.0 ma,
with '...:o W:'itten aCjreeme.nt
t:..: .:id insurance sigai
thy:
other party, and the cost
e shared equally ID,
a:i.e par a.. S .
Of
Both
parties snail named as insured in any policies written to
t of their a. a. the e , and copies
t,:..�: �::��::::� o:. - �..e�r �:...er�s.. lr. �..� scor...�oa..d
Shall oe provided to each party.'
�n3u�u..Cv JO...:..Cieu .0 <
iiir.t the. i.aithiul `perr".Ormance
of each of ` -he
v CJ:'r::ii:iOr.S O.. this .Agreement are the conditions
j.C�rc..o:vie .t is iuucce and acceptcc., and in 't:-.0 event
apGn t%e ,'part o$ eiti.er part, to .comply With the
co:.c:i ions Of tr . s Aggree-ment, ai:ter 30 day notice
terms
t0 ►.i.e defaulting ... r.g Party, ; the :iOT'iCie . u. ... r.�
:.ut. vGpt +Or1.4 .in�a J�.e this Agreement i
not c4.4 d
.CJr3en;ent,
upon which
Oi
ry
4
O� th°
any
terms
O ` such
sil na
if t: e default is
DISCIRI:;INATION' :
ir. connection with any Work to be performed under
artier hereto. agree not to discr.i.:.S:i:iatC
,;j;.it:L: t any person 'because O.r'. race, religion, sex, color, , or
12. BINDING ON SUCCESSORS
This Agic.e ent slab. bind a.1ia DOL?iiINS and their
:iSignS c.drui:iisat.::atOrS,. ..og'.l rejpresl?litat .Vt.S, executors
o :,uccessors, as; he case mash,. 'Ae, o the DO%?iiiN
..1 s :Jl..ccessor gov3rnmena.al belly.
NOTICES':
is understood and Cog led
W: itten notice
and ,`CITY
twee:. , the paart-ies
registered :G.Luil, or ua:livered to;
M;.a.;,i Dolphins , Ltd .
330 3iscayr.e
Xian i, Florida
:.:.air constitute surzicient' noti
i.cC.istorec n.c it Or CI iiVered t.
c;or
City ..o. ..lama.
Dinner Xe f
Miami, ? lorida
`1 Hull
:eret0
and Written
I IIIIII I1 *IPIIIIIIp1111111111 I1
a ^"'�• to CG:�, �.�`'' Wit.. the
• :J I....La. constitute
sufficient notice to the l.�♦,•
'- - except as either pry may notify the other
terms of this Agreement,� '
party of a change Of address by registeret: mail.
114. ASSIGNABILITY:
t
is -mutually
aired that this Acj eement' shall not be assigned
in whole or in part by either
of the
o .her y �_,� as , whose approval. shall
15.
INDEMNIFICATION:
The DOLPIIINS agree to defend, indemnify,. and hold harmless the
factions for d ar sarieS,
CITY against any and all
claims., suits,'
a�- `-'�
the period of time • DOLPHINS hold title, for
party without the express written approval
unreasonably withheld.
not ,be
action
reason of
sa:rising during
life, Or daraage to property,
the operation of the scoreooarl
or as ` a result'
agents of the'
C:TY are negligent In
1 ERL"' OF , ;tne 1�artiOS i e eto nave hereunto sot
heir seals the day and year' first above written.
IN WITNESS
and affixed
ATTEST:
City Clerk
V�ITN� SSI S :
-he rnairlt ena Ce
5ust al.ried ay
except' wi were
and operation
their eo .
their hands
CITY OF MIAMI, a municipal
corporation of the State of ,Florida
By:
City Manager
N. AMI DOLPHINS, LTD.
lirnited partnership
y:_
Miami Dolphins , Ltd.
AP?ROVED A
TO F0Ri AND CORRECTNESS':
Gcorc t 1' Knox, Jr.
City Attorney'
lorida
: ,oseph Robbie
►�ana .n5 General ?artncr
g"
•
•
SAM
SYSTEM COST:
A. Cost to City
B. COst
4
uE, .' iNI►`C1AL ANALYSIS uP' lii5 . „ ,,
Or. A SCALED DOWN O L"1NGD BOWL
SCOBEBOAiD S. S 2,ZX
$179,935
to Dolphins- $179,93
"otal cost'•of system
ANNUAL ` SYSTEM � REVENUE L �� PROJECTION:
A.'
ii .
C.,-.•LeSS
w ....t
t►uiC1:pc+tee._ g1G55: annual, 1CVG'nul: .troll-,
advert: sing
•,eSS" - r Sv...rvC..'v0 DOi?(1nS _ .r.Gr aavertiS+ng.
Sa.eS "COiiuiu.s5. On
stimated .mores.. On: investment
maue' by 'DOlph .nS. on, beha l f
• Ant. C1?ated annU ►1 ilea revenue from
1 .
G.
Less estimated operating cost
t "revenue ".for,*distribution
Net annual revenue to City
E. yet annual
revenue to Dolphins
"359,379
16000
0
24.,0.00
6
000
56, 000
of
ORANGE BOWL CONCESSION
LEASE. AND AGREEMENT
Amendment No. 2
THIS AGREEMENT, made and entered into this
day
i97_ by and between THE CITY OF*MIAMI,
a municipal corporation of the State of Florida (hereinafter
referred L. as the "CITY"), and MIAMI DOLPHINS, LTD., a
Florida limited partnership (hereinafter referred to as.°
"PARTNERSHIP") .`
WI T .N E.S S E T H:
;7iEREAS,
as ;;'re City of Miami and Restaurant and Waldorf Associates, Inc.
into ., lease ar�reement'
:,SaChuse � �
ent tied;"Crane Bowl Concession Lease and Agreement". and
on May -15, 1968, the name of the Restaurant
and ;:a1dorf Associates, Inc. was changed to the Restaurant
� . Industries, 1 68 said "Waldorf"
Associa es.dustries, Inc., and on July 15, 9
Corporat,o. merged with Restaurant Associates Industries, Inc.,
a
n August 4, 1967, certain parties, then known
Corporation,
a Delaware corporation; and
--
,,r;..�,c�AS, Resolution No. 43270, passed and adopted by
the :•:ia:,,i City Commission on April 15, 1971, authorized extension
of the existing agreement between the City of Miami andy Restaurant
Associates Industries, Inc. for an additional five year period,
with an option to renew for, a further three year period, and
Amend: -rent ,Io. 1 to the original agreementimplemented the
as authorized; and
extension
Wii1F.REAS, Resolution No. 73-623, passed and adopted by
tiie :•:iami City Commission on July 26, 1973, consented to the
assignment 'of the said Orange Bowl Concession Lease and Agreemen
as Amended, to the Miami Dolphins, Ltd.; and
Dolphins
games
WHEREAS, on June 8, 1977 the parties, hereto entered into
an ".Agreement for use
of the Miami', Orange Bowl Stadium by the Miami
for playing of Miami Dolphins professional football home
through and including the. year 1986;: and
WHEREAS, the said Agreement, of June'8, 1977 contains a..;
provision (paragraph 2 (b)) which says, "at any time during the;.:.
term ofthis Agreement that appropriate financing is approved for
the construction of a major new stadium facility
National
within PARTNERSHIP'S
Football League franchise area by any'governmental unit or
private agency or firm, PARTNERSHIP shall have the option to cancel
upon three year's written notice to CITY, provided
tilh
this Agreement
however such cancellation shall not become effective un such
Stadium is completed'` and ready for occupancy. by
WI-EREAS, the parties hereto.. agree that Paragraph 2 (b)
of the Agreement of June 8, 1977, shall be modified to provide that
1/
PART:IE
four year '`s
in the
Paragra
and.
PARTNERSHIP"; and
RSHIP shall have' the option to cancel this Agreement upon
written notice to CITY, . " and that any
other references
agreement of June 8, 1977, to the subject matter contained in
ph 2(b) thereof shall also be considered 'similarly .modified;,
WHEREAS,' on January 11, 1978, the City Commission passed
and adopted Ordinance No. 8735 (incorporated and attached thereto
by reference) authorizing the sale of beer and/or malt beverages
at the Miami Orange Bowl, thus necessitating certain amendments
the OrangeBowl Concession Lease and Agreement;
NOW, THEREFORE, in consideration of the
hereinafter contained to be observed and performed, the
s hereto do hereby covenant and agree as, follows:
1. SALE OF BEER AND/OR MALT BEVERAGES
covenants
partie
page
The parties hereto
6 of the original Orange
of August
4 , 1967 , shall
premises and mutual
agree that paragraphs 31 and 32:on'
Bowl Concession Lease and Agreement
be amended:'. to read as follows::
any find
be sold, offered,
31. That no.wines , liquors, or alcoholic beverages of
or nature, other than beer and/or malt beverages, shall
ffered or given away on any portion of the Orange
CITY
Bowl property except as may be otherwise governed b
Beer and/or malt beverages shall, however be
ncession stand locations` and vended in the grandstands,',
but must only be served to the customer in a paper" or light
plastic cup. Further, CITY hereby prohibits the sale of beer
and/or malt beverages before during or after any high`, school"
event, including but not limited to high school football and -soccer;
or after any;musical event of the type
ordinance.
sold
at
co
and" also before, duririg,
which historically requires`, extraordinary security measures
based upon prudent police protection (such as events commonly
referred to as Rock Concerts). CITY mayalso prohibit the sale
of beer`and/or -malt beveragesat other Orange ;Bowl ,events (except
professional football or college or university football) when
CITY deems it prudent to do so. This right of prohibition' shall
not be unreasonably applied, and CITY shall notify PARTNERSHIP
in writing at, leastone week in advance'. of the
any event at which this right of prohibition i
by CITY.
y
both
opening date of
s'.to be exercised
rovided, however,
CI.) Intoxicating beverages may be'.
served or dispensed at receptions or
social gatherings held inthose areas
of the _ stadium, specifically ;designated"
by the CityManager, including but not
limited to- the third -level pressbox
structure, the fourth -and fifth levels
of the ,"new""pressbox structureand the
area designated as the "Pro Club" located.`
above Gate 14.
(ii) A reception or social gathering
at which intoxicating beverages are
served may not last more thana specified
time designated by the City ManagerIn
this regard, receptions or social .gather
ingsat which intoxicating beverages are.`.
served' may; take place on the day of each
Miami Dolphins official NFL pre -season,
and
season, or post -season football game from
approximately two hours before official
game time.
(iii) Refreshments, including alcoholic
beverages,-may.be served at the Orange Bowl
reception or -social gathering in the;. designated
areas 'provided,there-shall be no charge for
such refreshments,, -including the alcoholic;.
beverages, ,and Provided further, no one
leaving such designated area,may carry,any
alcoholic beverage from. such designated .area
into any other part of the'stadium.,
The PARTNERSHIP.shall make any additions, improvements,
alterations.' incident to the sale of beer and/or malt beverages;
and the "Prior written approval for
alterations must be obtained °from'.
work
is undertaken.
such additions, improvements, and
the, City Manager before
any such
The parties estimate the cost of the additions, improve
ments, alterations, and equipment to implement the ,sale.of beer
at the Orange Bowl will be approximately $330,000, and approxi-
mately $210,000 of that amount represents improvements or altera-
tions specifically to the Orange Bowl Stadium. The CITY will
share the initial cost of providing for the sale of beer by funding
up to a maximum of $210,'000 and the PARTNERSHIP will share up to
maximum of $120,000. Provided, however, if the final cost of
to be less than '$330,000, then any reduction
sharedproportionately by the CITY and
of all paid invoices for work done or purchases
a
implementation.
of cost shall be
Certified copies
proves
4
the PARTNERSHIP.
made in connection with implementation of beer sales shall be -provided
to the CITY. The PARTNERSHIP shall actually make the entire $330,000
expenditure of funds for all required additions, improvements,
alteration, and equipment necessary to implement the sale of beer
and the CITY shall reimburse the PARTNERSHIP for
at the Orange Bowl,
the
of any interst
to purchase and
period through d
CITY'S share of these costs, together with the CITY'S proportion
balance borrowed by the PARTNERSHIP
on the remaining
install the beer sales equipment, over a seven year
eductions from the CITY'S percentage'of the gross
d from beer sales., PARTNERSHIP hereby, agrees to pay
of gross revenues (less taxes) from.
revenue receive
the CITY thirty-two percent (32%)
beer sales from the time ofimplementation of this contract through
July,l, 1980.
satisfactory
each such deduction by the PARTNERSHIP. Credits shall be applied°
annually
The PARTNERSHIP shall provide the
to the CITY of the actual amount
CITY with evidence
of interest paid, with
upon submission`' of documentation by the' PARTNERSHIP,
the annual guarantee payment on concession sales ($150,000, plus
tax, at present) which the PARTNERSHIP is required to pay to the
CITY
each year prior to August lst. The PARTNERSHIP shall keep
available
in its office, or such other place approved by the CITY,
true, accurate, and complete recordsof all money spent and money
borrowed in connection with implementatiOfl of beer sales at the
Orange 13ow1 Stadium, and shall give access to those records and,.
o:authorized representatives of the CITY, during reasonable
to. examine and audit such records and accounts The
retain all :right ," title and interest to all equip -
purchased and used in connection with beer sales
business hours,
PARTNERSHIP shall
ment and fixtures
accounts t
at the Orange Bowl. and the CITY shall be conveyed all right-, title
and interest to all additions, improvements, and alterations to the
Orange Bowl, (i) upon the expiration or termf ination othis, Agreement,
or (ii) upon .complete amortization by the PARTNERSHIP of the capital
investrie,nt by the,PARTNERSHIP in the additions,
tions,`and'equipment necessary to implement,t
the Orange recognize Exhibit A attached: hereto,'
as a listing, which' is. current as of the date of this Agreement,,
Bowl.
The parties
improvements, alters. -
the sale. of beer a
of improvements, additions, alterations,` and equipment required
to implement the sale of beer at the Orange Bowl,; andassigninent
of the responsibility for payment thereof betweefl the CITY and,
the
PARTNERSHIP. The parties hereto recognize Exhibit B attached
hereto, as
as regards
a gross example which they agree represents their intentions
the dollar flow of amortization and costs "relative t
revenue from beer sales at` the Orange Bowl.
It is hereby understood by the parties hereto that the
shall offer the Orange Bowl Stadium concession' operations fore`
bidding when the present concession contract expires on
1,1980. It is"further understood by the parties hereto that
CITY
public
July
after bids are received by the CITY the PARTNERSHIP shall, as provided
8, 1977, : be given first:,
in paragraph 12
option to negotiate a new concession agreernerit with the CITY at.
rate of' the highest bid received by the CITY. PARTNERSHIP shall
of' their Agreement of June
have thirty (30) days from date of offer
this option. If PARTNERSHIP declines to exercise
the CITY shall subsequently reimburse the PARTNERSHIP for its un-
t
amorti
equipment
schedule,
reimb
to all
sale
ed investment in the improvements, additions, alterations, and
necessary to implement the sale ofbeer, according to
to of-fer
bidding ;a
the
bids
CITY
of less than thirty-one percent.(31%) of gross revenues (less
to it by the CITY to exercise
this
option,
the
said
of' ',payments to be agreed upon by the '-,,parties- heret
,po. Upon
ursement the CITY .shall acquire all rights, title,:and interest:
e•quipment fixtures purchased by PARTNERSHIP to implement the
of beer at the Orange Bowl
In the process of` preparation of-bid',proposal dn
ocumets
the Orange Bowl Stadium,concession operations for public
the present concession contract expires on July. I. 1980.,
shall clearly state in those bid proposal documents that
•
taxes)' on food, soft drinks, and novelties, and less than thirty-five
(355) of Cross revnues (less taxes) on beer, will not be
accepted by the CITY. CITY shall also require bidders to provide a
y100,000 bid bond at the time of their bid subrnissiOfl, and: advise them
t holder of the concession ;,agreement ,has
newcontract by matchingthe
percent
in the
text that the Curren
the first right to assumption of the
highest
bid submitted..
Upon execution of this ,Amendment , PARTNERSHIP shall•
promptly apply for any ,required licenses from appropriate govern -
authorities and CITY shall cooperate with PARTNERSHIP :in
mental
licenses.
the acquisition of these
Nothing in this paragraph
cumvent or relieve PARTNERSHIP from t
in conformity; to existing
laws .
shall be construed to.cir-
he requirement of operating
32. That no bottles or cans shall be permitted
the hands of Orange Bowl spectators.
PARTNERSHIP to reach.,
contained must be poured into paper
light plastic cups before serving to customers
in'bottles or cans
Beverages'.
cups or.
-6-
AMENDMENT OF TERMINATION CLAUSE IN AGREEMENT
OF JUNE 8, 1977.
a. The parties hereto further
of the agreement of' June`8, 1977 shall
"(b) ,At anmfinancing of' this . Agreement
that appropriateproved for the
construction of a major new stadium facility within
PARTNERSHIP'S; National Football League franchise
area by any governmental unit or, private agency or
firm, PARTNERSHIP shall have an option to cancel
this Agreement uponfour year's written notice to.
CITY, provided however such cancellation shall not
become effective until such Stadium is completed,
and ready for occupancy by PARTNERSHIP."'
b. The parties hereto further agree that if the above
paragraph 2(b) of their Agreement of June 8, 1977 is exercised
then this Agreement shall terminate;`immediately
service of notice of cancellation, and
reimburse the PARTNERSHIP for itsun-
in the improvements,'additions, alterations,
necessary to implement the sale of beer at the Orange
according to a` schedule of payments to "be agreed upon
revised
by the PARTNERSHIP
coincident with the
date of
shall subsequently
the CITY,
amortized investment
and equipment
Bowl Stadium,
by the
agree that paragraph 2(b
be amended to read as follows:
parties hereto.
3, ORIGINAL AGREEMENT
The Lease and Agreement entered into on the 4th day o
August, 1967, between the parties,
shall remain in full force and
nd Amendment No. 1 thereto,
effect and
shall not be deemed tc
repealed, amended, or modified in any way except as hereinabove'
specifically provided.
Amendment
• IN WITNESS WHEREOF, the parties hereto have; caused his
No. 2 to. Agreement to be executed in their names ,.by their
duly authorized officers, and the corporate seals be affixed
thereto, all as of the day and year first above written
•;CITY; OF,MIAMI,. a municipal'-
corporation of Florida.
4
MIAMI DOLPHINS, LTD.`
limited Partnership.
WITNESSES:
APPROVED ASTO: FORM AND CORRECTNESS:
-8-
J .
v.
1.
1.
IMPa0VZX.uNTS, ALT%;:ZATIO S," ADDITIONS,"
AND Q IPMEN': REQUIR D TO I..,..,EME`T BB -LA SALT S
i►: T:iD: "OI ANGZ BOWL, AND t1SSiG\:;Z`. " 0?
Note: Those items cc:lineal:a "Paid <<3y
City"are to be construed as per.mu-ie;it.
to ' the :staC:iunl while items
fixtures
� r . a are ;ion-
liSt�:u a5 'Paid 3 By .iO�.��u+.uS
permanera ziatutes.
uan..1 uV.
0 5cratOrs
•
_,,;..?In;.r, syste:a"
'-ooku;D 10 , 000; C:ty
.i �. �.V i.r y\rui i.
2 9 , 622 City
"'"i:L'� cs.uiJ5
i
7 11,270 DO1'?h�.ns:
equipment
7 4,200
DolPhi3a
G � o: ;
7 16,800 Do1�ri1:S
i •.:4 .. .J �i4.L!.J
i : erato shelving
11,000 City
21400 Dolpi.i1�s�.
;,ee 1%.cF:, for hawkers 3G0
14 2 , 8 0p Dolphins
11 - . �,.::i .oi hawkers .rooms
�:x+::ting r . i.gerators:
2,365 City:
4,000 City
8 1,C
convert re back rooms G00 ity
counters 2G7,600 City:
:i.i:e.C,:o';in r.:St-'aae4 rooms .
g . 600City
u• .
9.
.v.
.
+�
..I•
14
15.
15.
r U .
47,7414.5
;:. cizops•.
2.. Carts ar rest-1)acks.
Y M .
Y .I
::.oe:c:; and
Wauriller.`';
6% . I/ua.i. g .i �{..c:ein s-
2
ost
47, 000 Cit`f
1i6,125', City:
2,500
4,000
1,820
o1phi:1S '
Do1pi.i 5
Dolpa a•S .;
4,000 Dolphins'
,000 Do2p..in:.
1,500 Do.pal as
3,Guu
12 8,400 1)olailins
600
•
2
25.
26.
27
�141111 i1: r+VU4.i•il: i
Sales Tax
Contingency - 10$
Crane Total` -
Co t
250
200
$323,7.90
ity $210,912
Dolphin s:.4re $117 , 878
Pal
Dolphins
Dolphins
DOZ. pliil5
Pace 2 O:: 2
EXHIBIT
EXAMPLE OF PARTIES INTENTIONS REGARDING.
DOLLAR FLOW OF AMORTIZATION AND COSTS
RELATIVE TO REVENUE FROM BEER SALES
AT THE ORANGE BOWL.
I. Cost of ;.morovement", Alterations, and Equipment
A. CITY
:?.. DOLPHIfS.
TOTAL;.
II. annual Dollar 'Flow of :Amortization and Costs, from beer sales
4
A.
$210,000
$120,000
$330,000'
iTntil .Jul; 1980
1, Gross'revenue ,from sale of 80.0.000 fourteen
.'ounce cups of beer at $1.00.per. cup
2, Less - 1/7 of City:investment
3. Less - 1/7'of.Dolphins investment
Revenue after investment recovery
:. Les 32 due to City •under'new agreement.-
(reduction for interest requirement, not
included),
•Less cost of beer for 800 ,000
5, Less cost of sales of 800,000 cups`
at 15% of gross revenue
Less
cost of corporate overhead a
6% of :gross revenue
Net
to concessionaire
B. From July 1, 1980 through July 1, 1987.
1, 2' and 3 (above) rernain.:thesame;
4. Less'- 35% due to. City under new agreement
(reduction for interest requirement
t. no
Lncluded)
and 7 ( above) remain the same:
t to ,concessionair
800,000
000
7<,143
0
$752:","857
$240 ,914
$20.1,168
$120,000
$ `4 8 , 000
$142,775
$752, 857
63
500
369168
120189