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HomeMy WebLinkAboutSummary FormDate: 10/2/2007 AGENDA ITEM SUMMARY-7FORM FILE ID: o (' Q l G Requesting Department: Public Facilities Commission Meeting Date: 11/7/2007 District Impacted: 3 Type: ® Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item ❑ Other Subject: Resolution authorizing waiver of certain revenues from calculation of gross sales and ticket surcharge in connection with University of Miami agreement for use of the Orange Bowl Purpose of Item: A resolution authorizing a waiver from calculation of total gross sales and ticket surcharge the value of 3800 tickets sold by the University of Miami ("UM") to Florida International University ("FIU") for the September 15, 2007 game between the UM and FIU, which tickets were sold at a nominal price for use by students of FIU. Background Information: See attached NO Bud eg,t Impact Analysis Lacs `0,euen.,e vb 4s,$00 /n . I. Rgt 3 11 Is this item related to revenue? toss. 9,1Vo i.i Acc4 • tot wow 4-Kb Is this item an expenditure? If so, please identify funding source below. General Account No: Special Revenue Account No: CIP Project No: NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds? Start Up Capital Cost: Maintenance Cost: Total Fiscal Impact: $0.00 $0.00 Final Approvals (SIGN AND DATE) ta',,,1�..r CIP N A Budge -..AA ‘Al1.�---h'~i If using or receiving capital funds Grants NA Risk Management (7 4 Purchasing C h te.ff'C.._� 1,,) /1, Dept. Directo City Manager, Paee 1 of 2 Subject: Resolution authorizing waiver of certain revenues from calculation of gross sales and ticket surcharge in connection with University of Miami agreement for use of the Orange Bowl The City and the University of Miami ("UM") entered into an agreement on June 22, 1990 ("Agreement") for the UM's use of the Orange Bowl for the staging of its football games. The Agreement provides for the UM to pay a Use Fee equal to 10% of the total gross actual ticket sales actually received by UM, less any applicable taxes and less the ticket surcharge to the admission price. The Agreement further limits the number of complimentary tickets allowed to be distributed in any given game to 750 for which no use fee or ticket surcharge shall be charged. For all complimentary tickets issued in excess of 750 per game, the UM shall pay the applicable Use Fee based upon the value of the complimentary ticket, but no ticket surcharge shall be due. There is no provision within the Agreement which addresses the payment of the ticket surcharge and percentage of gross sales on discounted tickets. In the spirit of cooperation of two home teams, the UM sold FIU 2500 tickets at $1 per ticket and 1300 tickets at $10 per ticket. Given the location of these tickets, 800 of these tickets would have sold for $47 each and 3000 would have sold for $20 each. The UM has requested that the value of the 3800 tickets be excluded from the calculation of the Use Fee and ticket surcharge. Assuming all these tickets would have been sold at their full market value, the loss of revenue to the City would be $9,760 in percentage rent and $3800 in ticket surcharge. Page 2 of 2