HomeMy WebLinkAboutExhibitAMENDMENT NO. 1 TO MANAGEMENT AGREEMENT
This Amendment No. 1 to the Management Agreement dated September 10, 2008
(the "Management Agreement") is entered into as of 2009 between the
CITY OF MIAMI (the "City"), a municipal corporation of the State of Florida, and
having its principal office at City Hall, 3500 Pan American Drive, Miami, Florida 33133,
the Bayfront Park Management Trust ("Trust"), a limited agency and instrumentality of
the City of Miami, whose address is 301 N. Biscayne Boulevard, Miami, Florida 33132,
and Live Nation Worldwide, Inc. ("Live Nation"), a Delaware corporation authorized to
transact business in Florida, whose address is 9348 Civic Center Drive, Beverly Hills,
California 90210.
RECITALS
WHEREAS, the Bayfront Park Management Trust ("Trust") was created by the
Miami City Commission to direct, operate, manage and maintain all aspects of Bayfront
and Bicentennial Parks to ensure maximum community participation; and
WHEREAS, on January 10, 2008, the City Commission adopted Resolution No.
08-0026, authorizing the Trust to negotiate a Management Agreement with Live Nation;
and
WHEREAS, on September 10, 2008, a Management Agreement with. Live Nation
for the purpose of managing and operating the Bayfront Park Amphitheater was
executed, which included, amongst other provisions, a requirement that Live Nation
perform several Upgrades to the Bayfront Park Amphitheater; and
WHEREAS, during the permitting process for the Upgrades, the City of Miami
Building Department determined that additional restroom capacity and unproved life
safety equipment were required at the Bayfront Park Amphitheater ("Amphitheater
Improvements"); and
WHEREAS, the Management Agreement contemplates that Live Nation will
provide temporary day -of -show restrooms to augment the existing on-site facilities; and
WHEREAS, the Management Agreement also includes the following language:
Live Nation represents and agrees that prior to the Effective Date Live Nation inspected
the Facility and Live Nation has accepted the Facility "as -is, where -is and with all
faults'; except for violations of Governmental Requirements and defects existent as of the
Occupation Date; and
WHEREAS, the Amphitheater Improvements are governmental requirements,
excluded from Live Nation's acceptance of the "as -is" condition of the Bayfront Park
Amphitheater, as contained in the Management Agreement; and
WHEREAS, on March 10, 2009, at a Special Meeting, the Trust adopted
Resolution No. 09-006, allocating from the Bayfront Park Capital Improvement Budget
Page 1 of 5
165701
V4
an amount not to exceed $500,000 for the Amphitheater Improvements, more specifically
for additional restroom capacity, a generator, site lighting and a fire alarm system; and
WHEREAS, the parties now wish to amend the Management Agreement to
address the construction of the Amphitheater Irnprovements.
NOW THEREFORE, in consideration of the premises, and for other good and
valuable consideration the receipt and sufficiency whereof is hereby acknowledged, the
parties hereto agree as follows:
The Management Agreement is amended as follows:
1. Section I of the Management Agreement is amended to include the following
definitions:
"Amphitheater Improvements" -- the additional restroom capacity, a generator, site
lighting and fire alarm system required by the City of Miami Building Department.
Live Nation shall be responsible for the design and construction of the Amphitheater
Improvements and for the direction of HITT Contracting, Inc., defined below),
retained for the construction of the Amphitheater Improvements.
"Facility" — as defined in the background Section of this Agreement and as depicted
on Exhibit "A" hereto, including all Amphitheater Improvements and Upgrades.
"General Contractor" -- HITT Contracting, Inc., the licensed general
contractor/construction firm hired by Live Nation to construct the Upgrades and
authorized by the City to construct the Amphitheater Improvements.
"Trust Contribution" — the Trust's expenditure, allocated from the Bayfront Park
Capital Improvement Budget, of an amount not to exceed $500,000 for the
construction of the Amphitheater Improvements.
2. Section 8 of the Management Agreement is amended as follows:
8.1 Indemnification.
(a) Live Nation shall indemnify, hold harmless and defend (with counsel
approved by City Attorney) the City, the Trust, and their respective officers, agents,
servants and employees from and against any and all claims, liabilities, demands, causes
of action, costs and expenses (including reasonable attorneys' fees at trial and all levels
of appeal) of whatsoever kind or nature ("Claims") arising out of (i) error, omission or
negligent act or willful misconduct of Live Nation, its agents, servants, contractors, or
employees, including but in no way limited to claims by the General Contractor; (ii) any
default by Live Nation under this Agreement; or (iii) any other claim arising, directly or
indirectly, from the operation, management or construction of the Upgrades or the
Amphitheater Improvements at the Facility or any Event held therein or rental or use of
the Facility; provided that there is expressly excluded from the foregoing obligations any
Claims to the extent resulting from the acts or negligence of the City, the Trust, and their
Page 2 of 5
165701
respective officers, agents (excluding Live Nation acting or working as an agent),
contractors (excluding Live Nation acting or working as a contractor) and employees or
the use of the Facility by the City, the Trust, or their respective officers, agents
(excluding Live Nation acting or working as an agent), employees and invitees. Patrons
of the Facility at Events other than a Trust Use are not invitees of the City or Trust.
(b) Live Nation shall enter into a contract with the General Contractor to
oversee the construction of the Upgrades and the Amphitheater Improvements (the
"HITT Contract"). In the HITT Contract. Live Nation shall require the General
Contractor and any of its sub -contractors to indemnify and hold harmless the City, the
Trust, and their respective officers, agents, servants and employees, in accordance with
the requirements set forth in Section 8.1 (a), above.
(c) The provisions of this Section shall survive expiration or termination of
this Agreement.
8.2 Insurance and bonding.
Live Nation shall secure (and deliver to Executive Director certificates thereof)
prior to the Occupation Date and shall keep in force at all times during the Term of this
Agreement insurance policies in the limits set forth in Exhibit `B". Moreover. Live
Nation shall cause the General Contractor to comply with the insurance requirements set
forth in Exhibit `B", as applicable, and shall cause the General Contractor to provide any
Payment and Performance Bond(s) as may be required by Section 255.05, Fla. Stat.
(2008).
3. Section 9.1 of the Management Agreement is amended as follows:
9.1 Ownership. The ownership of the Facility and all buildings and real
estate, all Amphitheater Improvements, all existing (and replacements thereof) technical
and office equipment and facilities, furniture, displays, fixtures, vehicles and similar
tangible property located at the Facility shall remain with the City and/or Trust. Upon
completion, the Amphitheater Improvements and Upgrades shall be tendered to the City
with all applicable warranties free and clear of any lien or encumbrance. Ownership of
and title to all intellectual property rights of whatsoever value held in the City's name
and/or the Trust's name shall remain in the name of the City and/or Trust. The
ownership of consumable assets (such as office supplies and cleaning materials), personal
property, equipment and fixtures for use at the Facility or for the operation of the Facility
purchased with Operating Revenues or City and/or Trust funds shall remain with the City
and/or Trust, but such assets purchased with Operating Revenues may be utilized and
consumed by Live Nation in the performance of services under this Agreement. The
ownership of data processing programs and software owned by the City and/or Trust
shall remain with the City and/or Trust, and the ownership of data processing programs
and software owned by Live Nation shall remain with Live Nation. Live Nation shall not
take or use, for its own purposes, customer lists or similar materials developed by the
City and/or Trust for the use of the Facility, unless written consent is granted by the
Executive Director. Ownership of equipment, furnishings, materials, or fixtures not
Page 3 of 5
165701
considered to be real property purchased by Live Nation with Operating Revenues for use
at and for the Facility shall vest in the City and/or Trust automatically and immediately
upon purchase or acquisition, except for those items which by the terms of this
Agreement shall remain the property of Live Nation. The assets of the City and/or the
Trust as described herein shall not be pledged, liened, encumbered or otherwise alienated
or assigned. Notwithstanding anything to the contrary contained in this Agreement, any
personalty; furnishings, and movable equipment and trade fixtures that is not a fixture
(excluding trade fixtures) purchased by Live Nation and used at the Facility shall be the
sole property of Live Nation.
4. Section 11.2 of the Management Agreement is amended as follows:
11.2 Government Compliance. Subject to the terms of this Agreement, Live
Nation, its officers, agents and employees, including but in no way limited to HITT
Contracting, Inc. and any and all of its sub -contractors, shall comply with all
Governmental Requirements with respect to the renovations, operation, management and
maintenance of the Facility. The foregoing includes the obligation to make
improvements or Alterations (structural and non-structural, and capital and non -capital)
as required by governmental authorities, the cost of which shall be included in Operating
Expenses. Live Nation shall require any licensee, promoter or user of any portion of the
Facility to comply, and to be financially responsible for compliance, with all
Governmental Requirements. Notwithstanding anything to the contrary contained in this
Agreement, Live Nation shall not be obligated or liable for any matter which is an
Operating Expense Exclusion
5. A new Section 15.19 is added to the Management Agreement as follows:
15.19 Construction and Draw Requests. Live Nation shall be
responsible for the construction of the Amphitheater hMprovements substantially in
accordance with the construction documents approved by the City of Miami Building
Department. Live Nation shall substantiate its expenditures of the Trust Contribution for
the Amphitheater Improvements.
Live Nation shall submit a detailed monthly invoice, which complies with
Florida's Prompt Payment Act, Section 218.70, Fla. Stat. (2008) to the Executive
Director for all costs relating to the construction of the Amphitheater Improvements
performed during the preceding month, along with reasonable substantiating
documentation, as requested by the Executive Director. Provided the work has been
performed, the Trust shall make payment. If the trust disputes any invoice it shall advise
Live Nation no later than thirty (30) days after receipt of any invoice. The parties agree
to thereafter promptly meet in good faith to resolve any such dispute provided that
pending resolution, the Trust shall continue to pay any undisputed amounts.
The City and the Trust have taken all lawful measures to waive public
procurement in accordance with applicable laws so that Live Nation shall not be subject
to the public wocurement bidding and procedure laws otherwise applicable to the City
and the Trust for the Amphitheater Improvements.
Page 4 of 5
165701
6. The Management Agreement is in all other respects ratified and confirmed and
remains unchanged.
INT WITNESS WHEREOF, the parties hereto have executed this Amendment the
day and year above written.
ATTEST: CITY OF MIAMI, FLORIDA, a
municipal corporation and political
subdivision of the State of Florida
By: By:
Priscilla A. Thompson, City Clerk Pedro G. Hernandez, City Manager
ATTEST: BAYFRONT PARK NIANAGEN11ENT
TRUST
a limited agency and instrumentality of the
City of Miami
By:
Jose Gell, Administrative Officer
Approved as to Insurance Requirements
By:
LeeAnn Brehm, Risk Management
Director
By:
Timothy F. Schmand, Executive Director
Approved as to Form and Correctness:
By
Julie O. Bra, City Attorney
LIVE NATION WORLDWIDE, INC.
By:
Name:
Title:
Page 5 of 5
165701