HomeMy WebLinkAboutM-78-0448E
rd: Joseph R. Gtassie
City Manager
CI
Charles L. Crumpton
Assistant City Manager
':try OF fat.\i4t, t":_OPIOA
+,jl-rty.Ol t=fO 1:15MORA OUtei
1-ovrt. duly 7, 1978
FILE'
FI n�cc:r Implementation of sale of beer
• and acquisition of scaled=down
scoreboard system for Orange
Bowl thtough cooperative effort
1-r""C" between City and Miami Dolphins,
Ltd.
Since the last discussion of these subjects with the City Commission,
the terms of possible agreement have been altered to reflect various
comments of the Commission.
Following are the salient points addressed by the enclosed documents:
I. Beer Sales.
1. City would make no cash investment. Dolphins would make entire
initial investment of approximately $330,000 and City's share
of investment (approximately $210,000,plus interest at rate
borrowed by Dolphins) would be deducted over a three year period
from City's 30,5% of gross concession revenue.
2. Present concession agreement date remains as is.
3. City would eventually own entire beer distribution system and
realize revenues of approximately $200,000 per year for first
three years and approximately $250,000 per year thereafter.
4. If a new concession agreement is not consummated with the Dolphins
when current agreement expires, City would reimburse 75% of
Dolphins' investment.
II. Scoreboard.
1. City would make no cash investment. Dolphins would make entire
initial investment of approximately $360,000, and City's estimated
share of the investment (approximately $180,000 plus interest at
rate borrowed by Dolphins) would be deducted over a three year
period from City's share of advertising sales revenue.
2. City would eventually own entire scoreboard system and would
begin realizing revenue of approximately $65,000 per year in
fourth year.
3. Term of this Agreement would coincide with Dolphins' rental
Agreement to end in 1986, but would be terminated if Dolphins
terminate rental Agreement.
' Joseph R. Grassie
4. ,, City Manager
4, City personnel would operate and maintain system with costs
of smile deducted from advertising revenue before 5O/5b
distribution of revenue tirade to parties.
Dolphins would sell advertising on scoreboard and receive 15%
commission for performing this function, This 15% would be
deducted from advertising revenue before 50/50 revenue dis-
tribution was made to parties.
6. City would have the right to review and approve advertising
firms and copy,
III,. General:
1. Improvements to the Orange Bowl by almost $700,000 with no
cash investment.
2. City would realize $200,000 annual net revenue immediately,
and over $300,000 after the fourth year of the agreements.
Enc.: 1. Resolutions authorizing execution of Enclosures 2 and 3.
2. Amendment No. 2 to Orange Bowl Concession Agreement of
August 4, 1967.
3. Agreement for City and Miami Dolphins, Ltd. to jointly
install Orange Bowl scoreboard system and share costs and
revenues.
OR GE BOWS,
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 Dolphins,
Ltd, a Florida limited partnership (DOLPHINS).
WHEREAS, the City is the owner of the Miami Orange
Bowl Stadium (the "ORANGE 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
Miami Dolphins 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 May 8, 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 scoreboard system, the
cost of which can be amortized over the three year guaranteed
life of the CITY'S current ORANGE BOWL use Agreement with
the DOLPIINS; 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 advertising;
NOW, THEREFORE, the parties hereto represent,
covenant, and agree as follows;
1, TERM:
That the term Of this Agreement shall commence on
the date first shown above as the date on which it Was ilade
and entered into, and it shall refrain in full force and
effect for a term which shall coincide with the term of the
Agreement of June 8, 1977 between the CITY and the DOLPHINS,
under which the DOLPHINS play their NFL football home games
in the ORANGE BOWL. The aforesaid Agreement is operative
through and including the 1986 regular football season as
defined therein.
2. TERMINATION:
That, should the DOLPHINS exercise the provision
of paragraph 2(b) of the ORANGE BOWL use Agreement of
June 8, 1977 between them and the CITY, whereby they are
given the option to terminate that Agreement upon three
years written notice to CITY under certain specified cir-
cumstances, it is hereby agreed that this Agreement will
also terminate and be considered null and void on the same
date that the cancellation of the Agreement of June 8, 1977
becomes effective. In the event of cancellation in accor-
dance with this paragraph, the entire scoreboard system and
all of its appurtenant and supporting parts shall become
the sole and exclusive property of the CITY and the DOLPHINS
shall no longer have any interest therein.
3. SYSTEM PURCHASE:
a. The DOLPHINS shall make the entire expenditure
of funds necessary to purchase and install the scoreboard system
but the CITY and the DOLPHINS will each be responsible to pay
one-half of the cost of designing., manufacturing, and instal-
ling the scoreboard system, as hereinafter provided, described
in a letter of July 12, 1977, from Mr, John G. Finlayson,
Program Manager, Information Display Systems, Stewart -Warner
Corporation, to Mr, R. L. Jennings, Director, Department of
Stadiums and Marinas, City of Mimi; and referred tO in a •
subsequent letter of bedeinber 22, 1977, from Mr. W. O. Boss
of Stewart -Warner Corporation to Mr. Charles L. Crumpton,
Assistant City Manager, City of Miami, which offered to sell
the previously described scoreboard system, installed and
operating (including training of operating personnel).
b. That the contract with Stewart -Warner Corporation
for design, manufacture, and installation of an ORANGE BOWL
scoreboard system, shall be submitted to both parties hereto
for review and approval and, after approval, shall be executed
by both parties hereto as purchasers.
c. The DOLPHINS shall retain title to the scoreboard
system and all of its appurtenant and supporting parts until
the DOLPHINS have fully amortized their capital investment in
such system. Upon complete amortization by the DOLPHINS of
such capital investment, title to the scoreboard system and all
of its appurtenant and supporting parts shallbe conveyed to the
CITY. Provided, however, upon the expiration of this Agreement
or in the event of cancellation in accordance with paragraph 2
of this Agreement, if earlier, the entire scoreboard system and
all of its appurtenant and supporting parts shall become the sole
and exclusive property of the CITY and the DOLPHINS shall no
longer have any interest therein. The CITY 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 of any interest on the remaining balance of any
amount borrowed by the DOLPHINS to purchase and install the
scoreboard system, through deductions from the CITY'S share of
gross advertising revenue from the scoreboard system as provided
in paragraph 6 of this Agreement. The DOLPHINS shall provide
the CITY with evidence satisfactory to the CITY of the actual
amount of interest paid, with each such deduction as provided
in paragraph 6 of this Agreement,
4 SYSTEM OP12ATIONS
a. That for the entire period of this AgreeMent
the 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 Corporation
shall be primarily CITY personnel, but that the DOLPHINS shall
have the right to also appoint a maximum of two (2) persons to
attend this training.
c. That the CITY shall have the privilege of utilizing
the message line portion of the scoreboard system, on a reason-
able basis, for display of announcements pertaining to coming
events at the ORANGE BOWL, or of a public interest nature.
d. That by virtue of the following quote from an Agree-
ment of July 26, 1976, between the CITY and the Orange Bowl
Committee, the DOLPHINS are hereby advised of certain restrictions,
presently legally binding on the CITY with regard to an ORANGE
BOWL scoreboard system and its operations;
"The City agrees that at such time as the scoreboard is
completed and ready for use that it will be under the full and
complete operational control of the said City. The City agrees that
it will not, prior to the game, during the half-time, or during the
game itself, visually exhibit or broadcast audibly, any message,
picture, sign, slogan, caricature, advertising, etc., in such a
way or at a specific time that will cause a conflict or distraction
with the pregame show, the ongoing football game or half-time
pageant, and all such visual exhibitions will be in good taste
and suitable for viewing by the general public."
5. SYSTEM ADVERTISING;
A, That the CITY hereby grants the DOLPHINS the
exclusive right to sell and contract for the sale of advertising
to be displayed on the scoreboard system, eXeept 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 withheld. 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 at events of these other Users is not
objectionable to them in terms of either content or amount, or
both. Therefore, 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 schoreboard message line unit
may be shown, in reasonable amounts, commencing one hour and
fifteen minutes before the scheduled time of commencement and
extending until one hour and fifteen minutes after the conclusion
of the event; but may only be shown during intermissions, time-
outs,
event
copies
sheets
between period of a sports event, or before or after the
or any of its activities commence.
b. The DOLPHINS hereby agree to provide the CITY with
of the contract forms and advertising rate structure
to be used for sale of advertising on the scoreboard
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.
c. In the event that this Agreement is cancelled, in
accordance with paragraph 2 hereof, but certain advertising
contracts remain unexpired, these unexpired advertising contracts
shall be assigned by the DOLPHINS to the CITY at the time of
termination, and the DOLPHINS shall no longer have any interest
in the sail advertising contracts or the revenue therefrom,
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d, The CITY hereby covenants that, during the period
of this Agreehenty it will hot permit paid advertising anywhere
on the ORANGE HOWL property other than the advertising of the
firms or individuals with which the DOLPHINS have contracted
to purchase advertising on the scoreboard system; excepting
that the concessionaire may, in the immediate area of their
vending booths and on their employees uniforms, identify and
advertise the products being sold.
e. That the DOLPHINS shall be authorized to retain an
advertising sales commission of fifteen percent (15%) of gross
advertising revenue for handling the sale, and contracting for
sale, of scoreboard advertising.
6. SYSTEM REVENUE:
That, after deduction by the DOLPHINS of their fifteen
percent (15%) advertising sales commission, and deduction of all
operation, maintenance, or other direct costs associated with
the scoreboard system, the CITY and the DOLPHINS shall share equally
in the remainder of all gross advertising revenues. The DOLPHINS
shall deduct from the CITY'S share of advertising revenue until
completely paid, the CITY'S proportion of the cost of purchasing
and installing the scoreboard system, together with the CITY'S
proportion of any interest on funds borrowed by the DOLPHINS to
finance, purchase and install the scoreboard system. The CITY
shall provide the DOLPHINS with a complete and itemized invoice
of any scoreboard operations, maintenance or other direct costs
as soon as possible after they are incurred, and the DOLPHINS shall
deduct 50% of each such invoice from the CITY'S proportion of the
cost of purchasing and installing the scoreboard system and remit
the remaining 50% of each such invoice to the CITY within ten days
of receipt of that invoice, together with an accounting of the
remaining balance on the CITY'S proportion of the cost of
purchasing and installing the scoreboard system,
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The parties agree that EXHMIT A repr'esetts their general
intentions as regards distribution of costs and revenues realized
from the installation and Operation of the Orange Bowl scoreboard
System.
7. RECORDS AND ACCOUNTS:
That the DOLPHINS shall keep available in its office,
or such other place approved by the CITY, true, accurate, and
complete records and accounts of all advertising sales transactions
in connection with the Orange Bowl scoreboard system, and shall
give access to those records and accounts to authorized representa-
tives of the CITY, during reasonable business hours, to examine
and audit such records and accounts.
8. COLLECTION COSTS AND FEES:
That the DOLPHINS agree to pay the cost of collection
and reasonable attorney's fees on any part of amounts due to the
CITY by the DOLPHINS under this Agreement which must be collected
by suit or by attorney after the same are past due and the DOLPHINS
have been notified in writing and have had the opportunity to
correct any default. If it is shown and proven by the DOLPHINS
that the failure to pay the CITY amounts due to it are as a result
of failure of a third party to meet its legal obligation to pay
amounts due, then the CITY and the DOLPHINS shall equally share
all cost of collection from the said third party.
9. STADIUM CONDITION AND LIABILITY THEREFOR:
The CITY agrees to maintain the ORANGE BOWL and the
scoreboard during the term of this Agreement, in physical condition
suitable for the playing of professional and collegiate football
games. No liability of any kind shall be incurred; however, by
either of the parties hereto, should the ORANGE BOWL become unfit
for events to be played or staged therein during the term of this
Agreement because of an act of God or public enemy.
ib . INgt Ct
Appropriate insurance to protect the parties' Mutual
inVestMent in the scoreboard rtiay be acquired by either party,
with the written agreement of the other party, and the cost of
the said insurance shall be shared equally by the parties. Both
parties shall be named as insured in any policies written, to
the extent of their interest in the scoreboard, and copies of the
insurance policies shall be provided to each party.
11. DEFAULT:
That the faithful performance of each of the terms
and conditions of this Agreement are the conditions upon which
this Agreement is made and accepted, and in the event of any
failure upon the part of either party to comply with the terms
and conditions of this Agreement, after 30 days' notice of such
default to the defaulting party, the nondefaulting party shall
have the option to terminate this Agreement if the default is
not cured.
12. DISCRIMINATION:
In connection with any work to be performed under
this Agreement, the parties hereto agree not to discriminate
against any person because of race, religion, sex, color, or
national origin.
13. BINDING ON SUCCESSORS:
This Agreement shall bind the DOLPHINS and their
heirs, assigns, administrators, legal representatives, executors
or successors, as the case might be, of the DOLPHINS; and CITY
or its successor governmental body.
14. NOTICES:
It is understood and agreed between the parties hereto
that written notice by registered mail, or delivered to:
Miairi Dolphins, Ltd.
330 Biscayne Boulevard
Miarri, Florida
shall constitute sufficient notice to the DOLPHINS, and written
notice by registered mail or delivered to;
City Manager
City of Miami City Hall
Dinner Key
Miami, Florida
shall constitute sufficient notice to the CITY; to comply with the
terms of this Agreement, except as either pary may notify the other
party of a change of address by registered mail,
15, ASSIGNABILITY!
It is mutually agreed that this Agreement shall not be assigned
in 'Whole or in part by either party Without the express written approval
of the other party, whose approval shall not be unreasonably withheld.
16, INbEMNIVICATION:
The DOLPHINS agree to defend, indemnify, and hold harmless the
CITY against any and all claims, suits, actions for damages, or costs of
actions arising during the period of time the DOLPHINS hold title, for
any personal injury, loss of life, or damage to property, sustained by
reason of or as a result of the operation of the scoreboard except where
agents of the CITY are negligent in the maintenance and operation thereof.
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands
and affixed their seals the day and year first above written.
ATTEST:
City Clerk
WITNESSES:
As to Miami Dolphins, Ltd.
APPROVED AS TO FORM AND CORRECTNESS:
George F. Knox, Jr.
City Attorney
THE CITY OF MIAMI, a municipal
corporation of the State of Florida
By:
City Manager
MIAMI DOLPHINS, LTD., a Florida
limited partnership
By:
Joseph Robbie
Managing General Partner
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MIME
Eki1tBIT A
SAMPLE FINANCIAL ANALYSIS of INSTALLATION
OF A SCALED DOWN ORANGE BOWL
SCOREBOARD SYSTEM
I. SYSTEM COST:
A. Cost to City - $179,935
B. Cost to Dolphins- $179,935
Total cost of system $359,879
II. ANNUAL SYSTEM REVENUE PROJECTION:
A. Anticipated gross annual revenue from
advertising - $160,000
B. Less - 15% fee to Dolphins for advertising
sales commission - 24,000
C. Less - estimated interest on investment
made by Dolphins on behalf of City - 18,000
D. Anticipated annual net revenue from
advertising
E. Less - estimated operating cost
F. Net revenue for distribution
G. Net annual revenue to City
H. Net annual revenue to Dolphins
$118,000
6,000
$112,000
$ 56,000
$ 56,000
day of
ORANGE OWL CONCESSION
LEASE AND AGREEMENT
Amendment No.
THIS AGREEMENT, made and entered into this
197 , by and between THE CITY OF
MIAMI, a municipal corporation of the State of Florida
(hereinafter referred to as the "CITY"), and MIAMI DOLPHINS,
LTD., a Florida limited partnership (hereinafter referred to
as "PARTNERSHIP").
W ITNESSET H:
WHEREAS, on August 4, 1967, certain parties, then known
as the City of Miami and Restaurant and Waldorf Associates, Inc.
a Massachusetts Corporation, entered into a lease agreement entitled
"Orange Bowl Concession Lease and Agreement"; and
WHEREAS, on May 15, 1968, the name of the Restaurant and
Waldorf Associates, Inc. was changed to the Restaurant Associates
Industries, Inc., and on July 15, 1968, said "Waldorf" Corporation
merged with Restaurant Associates Industries, Inc., a Delaware
corporation; and
WHEREAS, Resolution No. 43270, passed and adopted by the
Miami City Commission on April 15, 1971, authorized extension of
the existing agreement between the City of Miami and Restaurant
Associates Industries, Inc. for an additional five year period,
with an option to renew for a further three year period, and
Amendment No. 1 to the original agreement implemented the extension
as authorized; and
WHEREAS, tesolution No. 73-623, passed and adopted by
the Miami City Commission on July 26, 1973, consented to the
assignment of the said Orange Bowl Concession Lease and Agree-
ment, as Amended, to the Miami Dolphins, Ltd.; and
(WHEREAS, on January 11, 1978, the City Commission passed
and adopted Ordinance No. 8735 (incorporated and attached hereto
by reference) authorizing the sale of beer and/or malt beverages
at the Miami Orange Bowl, thus necessitating certain amendments
to the Orange Bowl Concession Lease and Agreement;
NOW, THEREFORE, in consideration of the premises and
mutual covenants hereinafter contained to be observed and per-
formed, the parties hereto do hereby covenant and agree as
follows:
1.
SALE OF BEER AND/OR MALT BEVERAGES
The parties hereto agree that paragraphs 31 and 32 on
page 6 of the original Orange Bowl Concession Lease and Agreement
of August 4, 1967, shall be amended to read as follows:
31. That no wines, liquors, or alcoholic beverages
of any kind or nature, other than beer and/or malt beverages, shall
be sold, offered, or given away on any portion of the Orange Bowl
property, except as may be otherwise governed by CITY ordinance.
Beer and/or malt beverages shall, however, be both sold at con-
cession stand locations and vended in the grandstands, but must only
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be ser'ted to the customer ih a paper or light plastic Cup&
Turther, 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;
and also before, during, or after any musical event of the type
which historically requires extraordinary security measures
• based upon prudent police protection (such as events commonly
referred to as Rock Concerts): CITY may also prohibit the sale
of beer and/or malt beverages at 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 least one week in advance of the opening date of any event at
which this right of prohibition is to be exercised by CITY.
Provided, however,
(i) Intoxicating beverages may be
served or dispensed at receptions or
social gatherings held in those areas
of the stadium specifically designated
by the City Manager, including but not
limited to the third -level pressbox
structure, the fourth and fifth levels
of the "new" pressbox structure and 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 than a specified
time designated by the City Manager. In
this regard, receptions or social gather-
ings at which intoxicating beverages are
served may take place on the day of each
Miami Dolphins official NFL pre -season,
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, and alterations incident to the sale of beer and/or
malt beverages; and the prior written approval for such additions,
tprovements` and alterations Must be obtained ftoft the City
Manager b efore any such work is undertaken.
The patties estimate the cost of the additions,
improvements, alterations, and equipment to implement the sale
of beer at the Orange Bowl will be approximately $330,000, and
approximately $210,000 of that amount represents improvements
or alterations 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 a maximum of $120,000. Provided, however, if
the final cost of implementation proves to be less than $330,000,
then any reduction of cost shall be shared proportionately by the
CITY and the PARTNERSHIP. Certified copies of all paid invoices
for work done or purchases 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 nec-
essary to implement the sale of beer at the Orange Bowl, and the
CITY shall reimburse the PARTNERSHIP as a deduction from the CITY'S
30.5% of gross revenue from concession sales for whatever interest
the PARTNERSHIP is required to pay on the remaining balance of the
CITY'S proportion of the amount borrowed by the PARTNERSHIP. The
PARTNERSHIP shall provide the CITY with evidence satisfactory to
the CITY of the actual amount of interest paid, before credits
are applied by the CITY. Credits shall be applied annually, upon
request and submission of documentation by the PARTNERSHIP to the
$150,000 (plus tax) annual guarantee payment on concession sales
which the PARTNERSIIP is required to pay to the CITY each year
prior to August 1st, and also to each other concession payment
made to the CITY by the PARTNERSHIP. The PARTNERSHIP shall keep
available in its office, or such other place approved by the CITY,
true, accurate, and complete records of all money spent and money
borrowed in connection with implementation of beer sales at the
Orange tow1 Stadium, and shall give access to these rectirds aiicl
v
aeCoUnts to authorized representatives of the CITY, during
reasonable business hours, to examine and audit such records
and accounts. The PARTNERSHIP shall retain all right, title
and interest to all equipment and fixtures purchased and used
in connection with beer sales at the Orange Bowl and the CITY
shall be conveyed all right, title and interest to all additions,
improvements and alterations to the Orange Bow, (i) upon the
expiration or termination of this Agreement, or (ii) upon complete
amortization by the PARTNERSHIP of the capital investment by the
PARTNERSHIP in the additions, improvements, alterations, and
equipment necessary to implement the sale of beer at the Orange
Bowl. The parties recognize Exhibit A attached hereto, as a
listing, which is current as of the date of this agreement, of
improvements, additions, alterations, and equipment required to
implement the sale of beer at the Orange Bowl, and assignment
of the responsibility for payment thereof between the CITY and
the PARTNERSHIP. The parties hereto recognize Exhibit B attached
hereto as a gross example which they agree represents their
intentions as regards the dollar flow of amortization and costs
relative to revenue from beer sales at the Orange Bowl.
In the event that the CITY and PARTNERSHIP are unable
to negotiate successful provisions of a new concession agreement
as provided in paragraph 12 of the June 8, 1977, agreement for
use of the Orange Bowl Stadium by the Miami Dolphins for playing
of Miami Dolphins Professional Football Games through and includ-
ing the year 1986, the parties hereto agree that PARTNERSHIP will
be reimbursed by the CITY, seventy-five (75%) percent of the
amount spent by PARTNERSHIP as their share of the cost of
implementing the sale of beer at the Orange Bowl as described
herein. Upon said reimbursement the CITY shall retain all rights,
title and interest to all equipment fixtures purchased by
PARTNERSHIP to implement the sale of beer at the Orange Bowl.
5 -
fi
Upon execution of this Amendment, PARTNRRSHIP shall
promptly apply for any required licenses from appropriate
governmental authorities, and CITY shall cooperate with
PARTNERSHIP in the acquisition of these licenses.
Nothing in this paragraph shall be construed to
circumvent or relieve PARTNERSHIP from the requirement of
operating in conformity to existing laws.
32. That no bottles or cans shall be permitted by
PARTNERSHIP to reach the hands of Orange Bowl spectators.
Beverages contained in bottles or cans must be poured into
paper cups or light plastic cups before serving to customers.
2. ORIGINAL AGREEMENT
The Lease and Agreement entered into on the 4th day
of August, 1967, between the parties, and amendment No. 1
thereto, shall reamin in full force and effect and shall not be
deemed to be repealed, amended, or modified in any way except as
hereinabove specifically provided.
IN WITNESS WHEREOF, the parties hereto have caused this
Amendment No. 2 to Agreement to be executed in their names by their
duly authorized officers, and the corporate seals to be affixed
thereto, all as of the day and year first above written.
CITY OF MIAMI, a municipal
corporation of Florida
By:
Attest:
City Manager
City Clerk
MIAMI DOLPHINS, LTD., a Florida
limited Partnership
WITNESSES: Bv:
Title
Attest;
Title
APPROVED AS TO FORM AND CORRECTNESS;
6
•
EkHtBIT A
......................_...............
LISTING OF IMPROVEMENTS, ALTERATIONS, ADDITIONS,
AND EQUIPMENT REQUIRED TO IMPLEMENT BEER SALES
AT THE ORANGE BOWL, AND ASSIGNMENT OF RESPONSIBILITY
FOR PAYMENT THEREOF BETWEEN THE CITY AND THE IOLPHINS.
Note: Those items delineated "Paid By
City" are to be construed as permanent
fixtures to the stadium while items
listed as "Paid By Dolphins" are non-
permanent fixtures.
Item Quantity Cost Paid By
1. Walk-in refrigerators 12 $ 47,000 City
2. K-way pumping system 116,125 City
3. Electrical hookup 10,000 City
4. Concrete slabs 12 9,622 City
5. Fast -fill equipment 7 11,270 Dolphins
6. Cup drops 7 4,200 Dolphins
7. Heat sealers 7 16,800 Dolphins
8. Refrigerator shelving 11,000 City
9. Beer racks for hawkers 300 2,400 Dolphins
10. Tables for hawker rooms 14 2,800 Dolphins
11. Repair existing refrigerators 2,365 City
12. Plumbing 4,000 City
13. Convert rest -back rooms 8 1,600 City
14. New serving counters 26 7,600 City
15. Shields in rest -back rooms 8 1,600 City
16. Store room and desk 2,500 Dolphins
17.. Signs and menu boards 4,000 Dolphins
18. Cash drawers 26 1,820 Dolphins
19. Zum Zum rails 4 4,000 Dolphins
20. N.F.L. Gift shops 2 2,000 Dolphins
21. Carts for rest -backs 6 1,500 Dolphins
22. Locks and security 3,000 Dolphins
23. Crescor warmers 12 8,400 Dolphins
24, Adding machines 6 600 Dolphins
Page 1 of 2
04
tItHItiT A (oritinuod)
Item 0400q Cost Paid
25. Heat lamps 8 8 1,250 Dolphins
26. Telephones 12 1,200 Dolphins
27. Walkie-talkies 20 8,000 Dolphins
28. Coin counter 1,800 Dolphins
Total $288,452
Sales Tax - 4% 11,538 Dolphins
Contingency - 10$ 28#800 Dolphins
Grant Total - $328,790
City share $210,912
Dolphin share - $117,878
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 Improvement, Alterations, and Equipment:
1. CITY - $210,000
2. DOLPHINS - $120,000
TOTAL - $330,000
II. Annual Dollar Flow of Amortization and Costs:
1. Gross revenue from sale of 800,000 fourteen
ounce cups of beer at $1.00 per cup
2. Less - 1/3 of City investment
3. Less - 1/3 of Dolphins investment
Revenue after investment recovery
4. Less - 30.5% due to City under concession
agreement (reduction for interest
requirement not included)
5. Less - cost of beer for 800,000 cups - $201,168
6. Less - cost of sales of 800,000 cups
at 15% of gross revenue - $120,000
7. Less - cost of corporate overhead
at 6% of gross revenue - 48,000
Net to concessionaire $110,382
$800,000
70,000
40,000
$690,000
$210,450