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HomeMy WebLinkAboutPresentation2RESPONSE TO REQUEST FOR LETTERS OF INTEREST RFLI NO. 44014 MANAGEMENT AND OPERATION OF THE BAYFRONT PARK AMPHITHEATER SEPTE IBER 19, 2007 RESPONSE TO REQUEST FOR LETTERS OF INTEREST RFLI NO. 44014 MANAGEMENT AND OPERATION OF THE BAYFRONT PARK AMPHITHEATER TABLE OF CONTENTS I. EXECUTIVE SUMMARY 3 II. AEG QUALIFICATIONS 6 III. OPERATIONS • PROGRAMMING 23 MARKETING 28 NAMING RIGHTS AND SPONSORSHIP 34 OPERATIONS 35 FOOD & BEVERAGE 38 IV. CAPITAL IMPROVEMENTS 39 V. FINANCIAL PROPOSAL 40 VI. FORMS & STATEMENTS 42 EXECUTIVE SUMMARY AEG Live is honored to present this response to the City of Miami/Bayfront Management Trust's Request for Letters of Interest for the management and operation of Bayfront Park Amphitheater. You will see from our response that AEG Live is committed to provide the City with an exceptional financial compensation and capital improvement program as well as the highest level of programming and operating expertise. AEG Live specializes in the development and operation of unique, iconic venues in the world's great cities as well as the presentation of the world's finest entertainers. This year, AEG Live added London's 02 to our venue roster. The 02, AEG's redevelopment of London's Millennium Dome, is the largest entertainment destination in London's history. The O2's debut concert season includes such superstars as Bon Jovi, The Rolling Stones, Justin Timberlake, Scissor Sisters, Barbra Streisand, Prince and My Chemical Romance. Later this year, AEG will open NOKIA Theatre L.A. LIVE, a new 7,100-seat theatre within L.A. LIVE, a $2.5 billion / 5.6 million square foot downtown Los Angeles epicenter for music, sports and leisure unlike any other. AEG Live owns, operates or exclusively books over twenty five venues in the United States and Europe. In 2006, AEG and its subsidiaries sold more than $500 million in tickets and presented over 2,500 events, making it the second largest entertainment company in the world, We have extensive experience in the Miami; Fort Lauderdale market, having presented events at such venues as the BankAtlantic Center, the AmericanAirlines Arena and the Jackie Gleason Theater. AEG Live, unlike other major promoters in the Miami market, owns no other venues in the market and therefore, the development of Bayfront Park Amphitheater will receive AEG Live's full and undivided attention and programming focus. While promoters who own other venues in the market are likely to direct the big shows to their owned venues (where they can realize incremental parking and other ancillary revenues), AEG Live's priority will be the successful development and operation of Bayfront Park Amphitheater. I. EXECUTIVE SUMMARY AEG Live has had the honor of working with city governments large and small to create great entertainment destinations that complement the local community, increase jobs and visitors to the area and create national and international visibility. We are proud of the successful public/private partnerships we have created with cities such as Los Angeles, London, Berlin and Grand Prairie, Texas. AEG will invest up to Four Million Dollars ($4,000,000) for improvements 10 the venue. The improvements will include: • Replacement of existing bench seating with state-of-the-art individual fixed seats for 6,000 patrons • New roof structure over the stage that will have capacity to support state-of-the-art rigging • Upgrades to the concession areas with the creation of cement pads that will have access to drains and power for temporary food preparation areas • Additional restrooms • 20 corporate boxes AEG will pay the City a guaranteed annual rent of Four Hundred Thousand Dollars ($400,0-00) with an annual escalator of 3% plus an annual percentage rent equal to five percent (5%) of annual "Gross Sales" over Four Million Dollars ($4,000,000 escalated annually by 3%). Naming Rights- AEG shall have the right to rename the Venue (with or without use of "Bayfront") as part of a name -in - title sponsorship agreement (i.e. Nokia Amphitheatre). City to receive 25% of net revenue from such naming rights. AEG will create a diverse, world -class season of concerts and events to appeal to a wide cross section of the Miami market. Events will include concerts, sponsored concert series, family shows, and festivals. In order to accomplish this, AEG Live will utilize the expertise of our national and international hooking team. Are 4 1. EXECUTIVE SUMMARY We will develop customized, multi -media marketing campaigns to create awareness of the venue to both the entertainment industry and consumers. Our cross -platform campaigns including advertising, publicity and new media will generate renewed interest in the venue and the park overall. AEG Live will create a management team to operate the venue to meet our high standards for customer service, security, maintenance and community relations. The following sections provide details on our qualifications as well as our programming, marketing, operations, sponsorship and capital improvement strategies for Bayfront Park Amphitheater as well as a summary of our financial proposal. AEG Live is extremely excited and committed to adding Bayfront Park Amphitheater to our select portfolio of iconic venues. 11. AEG QUALIFICATIONS AEG LIVE, the live -entertainment subsidiary of Anschutz Entertainment Group ("AEG"), is dedicated to all aspects of live entertainment and multi -media production. AEG Live is the industry leader in the development of iconic entertainment destinations, record -breaking tours, festivals and exhibitions, innovative marketing and promotions, and multi -channel broadcast production services. AEG owns, operates or exclusively books: The 02 — London, UK arena and surrounding sports & entertainment district NOKIA Theatre L.A. LIVE NOKIA Theatre — Times Square, NYC NOKIA Theatre at Grand Prairie Grand Prairie, TX STAPLES Center — Los Angeles, CA The Colosseum Caesars Palace — Las Vegas, NV WAMU Theatre — Seattle, WA Prudential Center — Newark, NJ Indigo2 at The 02 — London, UK Sprint Center — Kansas City, MO 6 11. AEG QUALIFICATIONS Anaheim Arena — Anaheim, CA Bluebird Theater — Denver, CO Crew Stadium — Columbus, OH El Rey Theatre — Los Angeles, CA Hartford Civic Center — Hartford, CT Ogden Theatre — Denver, CO Palladium Ballroom — Dallas, TX Pizza Hut Park — Frisco, TX Royal Oak Music Theatre — Detroit, MI Target Center — Minneapolis, MN Toyota Park — Bridgeview, IL Toyota Sports Center — El Segundo, CA Warehouse Live — Houston, TX The Home Depot Center — Carson, CA The Joint, Hard Rock Hotel & Casino — Las Vegas, NV 4i 7 11. AEG QUALIFICATIONS Venues Currently in Development by Anschutz Entertainment Group: Citizen's Business Bank Arena — Ontario, CA Club NOKIA at L.A. Live — Los Angeles, CA 2,500-seat club within L.A. Live Echelon Place — Las Vegas, NV operator and exclusive booking agent 02 World — Berlin, Germany arena and surrounding sports & entertainment district New Las Vegas Arena — 20,000-capacity sports and entertainment arena on the Las Vegas Strip. The second largest concert promotion and touring cornpany in the US, AEG LIVE currently has ten regional offices: Los Angeles, New York, London, Nashville, Houston, Dallas, St. Louis, Denver, Seattle and San Diego. Arew 11L II. AEG QUALIFICATIONS AEG LIVE is a subsidiary of Anschutz Entertainment Group, one of the leading providers of live entertainment and sports in the world. AEG owns or operates some of the world's best arenas and theatres and a collection of companies dedicated to producing, promoting and presenting world -class live entertainment. As part of its international portfolio, Anschutz Entertainment Group owns or part owns a range of sports franchises in the US and Europe, including basketball, ice hockey and soccer teams. The Anschutz Corporation also owns all or part of Anschutz Film Group, Walden Media, Bristol Bay Productions, Regal Entertainment Theater Group, AEG -TV, AEG Teleworks, Creative Battery and Clarity Media Group. AEG employs more than 3,000 staff in over 45 operating companies worldwide. 9 11. AEG QUALIFICATIONS In 2006, AEG and its subsidiaries sold more than $500 million in tickets and presented over 2,500 events around the globe, making it the second largest entertainment company in the world. We have extensive experience in the Miami/Fort Lauderdale market, promoting events at such venues as the BankAtlantic Center, the AmericanAirlines Arena and The Jackie Gleason Theater. In fact, AEG has been serving the Miami market since 1999. In 1999, our sister company Regal Entertainment Group began operating the art -deco inspired Regal South Beach Cinema 18 in Miami Beach. In the past several years, our peers in the entertainment industry have honored AEG with Outstanding Arena (STAPLES Center), 2003 Best New Major Concert Venue (Home Depot Center), 2005 Best New Major Concert Venue (NOKIA Theater Times Square) and Promoter of the Year awards. 10 II. AEG QUALIFICATIONS Our programming team, led by Senior Vice President Larry Vallon, creates event programs that feature the world's greatest entertainment specifically designed to attract patrons of all ages, proximity and ethnicity. From rock and roll legends to up and coming club acts, comedy to family entertainment, AEG has presented an enormously wide breadth of talent including: American Idol Min legend George Strait limy Buffett Madonna James Taylor Black Crowes Nana Tustin Timberlake Arcade Fire Area? Franklin Beck Luis Miguel U2 The Dixie Chicks Willie Nelson Usher Barney Boll Dylan Kanye West Duran Duran foo Fighters Green Day Gwen Stelani Mares Alan Jackson Rod Stewart Yanni Celine Dion Tony Bennett Iladiohead Elton kiln JOIN Mayer Tim McGraw & FRO Hill A'ndreaBoce//i Bon foul Keith Urban Prince White Stripes Fleetwood Mac JerrySeinleld The Wiggles 11 11. AEG QUALIFICATIONS AEG LIVE's event production and promotion leadership is underscored by the fact that many renowned artists and entertainment companies look to AEG LIVE to produce and market their tours on a national level including: Alan's Morissette Alicia Keys And 1 Barney Barry Manilow BET's Scream Tour Bon Jovi Britney Spears Cheetah Girls Christina Aguilera DancingWitn the Stars Dixie Chicks Fleetwood Mac George Strait Gretchen Wilson Journey, REO and Styx Justin Timberlake Kenny Chesney Lionel Richie Loggins a Messina Melissa Etheridge Neil Diamond Nickelback Paul McCartney Pop Tarts Presents American Idols live! Prince Real Men of Comedy Roil Stewart So You Mink You Can Dance T/be Color Purple The Eagles Trace Adkins Tutankhamun and the Golden Age of the Pharaohs Usher Yanni 11. AEG QUALIFICATIONS AEG LIVE hosts the most critically acclaimed music festivals in the U.S. The Coachella Valley Music & Arts Festival held in the Southern California desert, has three times been named 'Festival of the Year" by Pollstar Magazine. In addition, AEG LIVE, along with partner Festival Productions, hosts the New Orleans Jazz & Heritage Festival, possibly the best-known music festival in the world, and named "Festival of the Year" four times by Pollstar. Stagecoach, AEG Live's two day country music festival, featured over fifty performers in 2007 including George Strait, Kenny Chesney, Alan Jackson, Brooks & Dunn and Willie Nelson as well as a wide variety of other displays and activities including saddle making, blacksmiths, rodeo gear, lasso and trail boss seminars, to name just a few. 13 II. AEG QUALIFICATIONS AEG's Network LIVE offers fans unparalleled access to the artists they want via broadband, TV, radio, satellite radio, satellite television, digital movie theatres and mobile phones throughout the U.S. and the world. Network LIVE combines the energy and immediacy of the live moment with a level of access to live entertainment that can only be delivered to audiences across an on -demand digital network. Network LIVE's groundbreaking concert broadcasts include Linkin Park and The Rolling Stones Live from Rio's Copacabana Beach. In addition, AEG Ehrlich Productions is one of the industry's most accomplished producers of specials, concerts and notable live events including the recent 2007 Emmy Awards telecast. Ken Ehrlich has produced 25 Grammy Award telecasts and created and produced the "MTV Movie Awards," "VH1 Honors" and VH1's acclaimed "Divas" series. Additional credits include "Genius: A Night for Ray Charles," "Sports Illustrated's 20th Century Sports Awards" and "The Fifth Annual Latin Grammy Awards," as well as "The Blockbuster Awards," "The Alma Awards" and "Fashion Rocks," among numerous other awards shows and tributes. LIIICIN MAY 14TH • <):UOI'M E PARK A ONE NIGHT ONLY 1 COMING; 10 SttECT 1IIEAIRES ,,r` r I cx 14t tea.®®ma. , LIVE ON PAY -PER -VIEW rfl, rr,,,,tt 4l191C Ci4t tri r IL 14 II. AEG QUALIFICATIONS AEG is the country's expert in creating major special events that captivate audiences and generate national and worldwide attention. Over the past thirteen years, AEG's special events team has been responsible for producing and hosting such award -winning events as: The Super Bowl XXXVI Half Time Show featuring U2 Pope John Paul II's 1999 American Visit 2004 Grammy Awards VIP Party VERB Action Day (US Center for Disease Control & Prevention) NBA All -Star Weekend ESPN Boxing HBO Boxing Davis Cup Tennis ESPN X-Games The Academy Awards The Emmy Awards The Grammy Awards Democratic National Convention reig = 15 I1. AEG QUALIFICATIONS No other promoter is as qualified as AEG to work with the City of Miami to develop Bayfront Park Amphitheater into a national and internationally renowned venue. Our team is currently developing such prominent facilities as: L.A. LIVE - A 5.6 million square foot sports and entertainment district in downtown Los Angeles. Located adjacent to STAPLES Center, the L.A. LIVE project, considered the largest development in Los Angeles' history, will be host to an exciting mix of venues and facilities. L.A. LIVE includes: • NOKIA Theatre L.A. LIVE • STAPLES Center Club NOKIA - AEG Live/Goldenvoice's 2,350-guest club for new breaking artists and club events Los Angeles' legendary Conga Room — a mecca for Latin and World performers plus a broadcasting studio with live, weekday Latin music programming (Latv) and daily radio broadcasts (Power 10GFM) NOKIA Plaza - a one acre open air plaza designed with "plug -and -play" broadcast technology ESPN broadcast studios - home to Sports Center and live broadcasts on ESPN and its affiliates • L.A. LIVE's own broadcasting center for local entertainment coverage, news and music programming • Premiere dining destinations to suit every taste Luxurious accommodations at the Ritz -Carlton at L.A. LIVE hotel. the Ritz -Carlton Residences at L.A. LIVE and the JW Marriott Hotel • Filmed entertainment and movie premieres at Regal Cinemas • Los Angeles' favorite Lucky Strike bowling • And a home for the celebration of music history, The GRAMMY Museum II. AEG QUALIFICATIONS The 02 Arena and Redevelopment District - A $2 billion, 28-acre development in conjunction with the UK government at the site of the Millennium Dome and adjacent property located in the eastern part of London along the Thames River. Opened in July 2007 -- London, England The Berlin National Arena — A 50-acre mixed -use project located in the heart of Berlin containing a world -class 16,000 seat indoor arena capable of housing sports, cultural and entertainment events. -- Berlin, Germany Las Vegas Sports and Entertainment Arena — a 20,000-seat state-of-the-art arena being developed on the Las Vegas Strip in conjunction with Harrah's Entertainment. — Las Vegas 17 AEG TEAM BIOGRAPHIES RANDY PHILLIPS President & CEO, AEG Live Randy Phillips serves as President & CEO, AEG Live, the live -entertainment subsidiary of Los Angeles -based AEG comprised of affiliates specializing in producing and presenting live contemporary music performance, touring for a variety of programming and multi -media production. Phillips guides and oversees the day-to-day operation, strategic planning and development of all entertainment properties, events and tours. The company's national promotion divisions are currently producing tours and productions including Celine Dion A New Day...Presented By Chrysler now appearing at the Colosseum at Caesars Palace in Las Vegas and "Tutankhamun and the Golden Age of the Pharaohs," an international tour of the artifacts of King Tut. Recently promoted concert tours have included artists such as•Prince, Usher, Kenny Chesney, Rod Stewart, Paul McCartney, Justin Timberlake and Christina Aguilera and Dixie Chicks. Goldenvoice, the company's southern California -based regional promotion division created and operates the award winning annual Coachella Valley Music & Arts Festival. Phillips previously worked as an Executive Producer for The Rock Palace on NBC Network Television, where he helped to establish himself as a leading business executive in the entertainment industry. As a partner with Stiefel-Phillips Entertainment, one of the premiere management and production companies, Phillips also managed the careers of leading artists in both music and film including Rod Stewart, Prince, Guns N' Roses and Tony Braxton. Stiefel-Phillips' film credits include "Midnight in the Garden of Evil," "That was Then, This is Now" and The Talking Heads' "Stop Making Sense." AEG TEAM BIOGRAPHIES In addition, Phillips has served as President and CEO of Gasoline Alley Music, a joint venture record and publishing company with MCA Records. He was instrumental in the success of hit groups Shai and Sublime, each receiving multi - platinum honors. Phillips was then named Chief Operating Officer of Red Ant Entertainment, a division of Alliance Entertainment, and subsequently became its CEO reporting directly to Townsend Ziebold, Chairman of Entertainment at Wasserstein/Parella, a Wall Street based investment firm. Most recently, Phillips was CEO of Phillips Digital Media, an independent consulting and management firm whose clients included multi -platinum recording artist Dream, Deutsch Entertainment (DEAL)/Entertainment 1 (El), Internet PLC (Smart Flash), AOL Latin America and Detour Media. THOMAS MISERENDINO Chief Operating Officer, AEG Live As COO of AEG, Tom Miserendino is responsible for the day-to-day operations of the live entertainment division. In addition to overseeing all administrative functions for the division, he is intimately involved in structuring and negotiating strategic deals, including venue ownership and leases and artist and event agreements. Mr. Miserendino also plays a significant role in determining the strategic direction of the organization. From 1998 through 2001 Mr. Miserendino was the COO of TBA Entertainment, a strategic communications and entertainment company. From 1981 through 1998, Mr. Miserendino was the President and Chief Operating Officer or Eric Chandler, Ltd, the holding company for varied interests in entertainment, including concert promotion, Olympic and music merchandising, radio ownership, entertainment facility management, and sports action film production. AEG TEAM BIOGRAPHIES JOHN MEGLEN President & Co -CEO, Concerts West John Meglen is a founding partner and President of Concerts West, an AEG company and one of the world's largest producers and promoters of live music events and tours. A music industry veteran with more than 20 years of experience, John co-founded Concerts West, LTD. in September 1998 to bring top -line artists to stages across the country, including recent tours by Paul McCartney, the Dixie Chicks, Bon Jovi, Eagles, Britney Spears, Andrea Bocelli, Yanni, Christina Aguilera and Justin Timberlake, Prince, Usher and Celine. Dion's extended stage production "A New Day...". With past founding and executive positions with Pace Touring, BCL Entertainment in Toronto and Concerts West, Inc., John has launched past tours for artists including Pink Floyd, Paul Simon, David Bowie, Nine Inch Nails, Fleetwood Mac, Ozzfest with Ozzy Osbourne, Rolling Stones, The Beach Boys, Bad Company, the Commodores, Three Doc. Night; the Moody Blues, John Denver and Neil Diamond. Performance Magazine named John ''Promoter of the Year" in 1997, and he was the recipient of the legendary "Bill Graham Award" for Promoter of the Year in 2002. AEG TEAM BIOGRAPHIES LARRY VALLON Senior Vice President, National Booking, AEG Live Larry Vallon began his career in live entertainment in 1969, handling marketing and production for top Southern California promoters Concert Associates. In 1972, he became a junior partner in the firm, and produced major concerts in Southern California, Arizona, and Hawaii featuring the Rolling Stones, The Who, Elton John, Pink Floyd, and many more. In 1978, he formed Larry Vallon Presents, and quickly became the leading producer of major concerts in California and the Southwest. He closed LVP in 1982 to accept the position of Senior Vice President at the newly remodeled ($22 million) Universal Amphitheatre. He oversaw talent acquisition for Universal Concerts' venues as the company expanded in the area of amphitheatre construction, operation and promotion in Denver, Dallas, Atlanta, Cleveland, the Northwest, Toronto, and concert production through Universal Concerts Canada. After participating in the sale of Universal Concerts to an investment-banking consortium that formed House of Blues Concerts, Larry Vallon then became the Senior Vice President of House of Blues Concerts. From there, he joined AEG in his current position of Senior Vice President of National Booking in April of 2004. w 21 AEG TEAM BIOGRAPHIES SHAWN TRELL Senior Vice President and General Counsel, AEG Live Shawn Trell oversees all legal and business affairs of AEG: Trell is responsible for drafting and negotiating contracts for AEG for its operations in the US and in Europe. This includes all corporate sponsorship and marketing related agreements, vendor agreements, venue license agreements, talent agreements, production and distribution agreements, location agreements and other key agreements associated with AEG's business. Trell has been with AEG companies for over five years. Most recently, he assisted in the negotiation and execution of an agreement with the Egyptian government for "Tutankhamun, The Golden Age of the Pharaohs" and was a finalist for a 2005 Insights Media & Entertainment Counsel of the Year Award. Trell is a graduate of Hobart College with a degree in economics and he received his law degree from the Georgetown University Law Center. PROGRAMMING AEG LIVE is committed to provide Bayfront Park Amphitheater with a programming plan that will effectively build event nights and audiences. Our goal is to maximize the number of events that can sell out the venue creating excitement for guests, the artists and the local community. The Bayfront Park Amphitheater programming mix will include a variety of events such as: Concerts Sponsored Concert Series Family Shows Festivals Television Productions Award Shows Christmas Festivals Community Nights AEG Live will utilize the expertise of Senior Vice President Larry Valion and our national and international programming team in order to maximize Bayfront Park Amphitheater's booking clout nationwide. No other programmer in the country has as much experience launching new venues and revitalizing old venues as Larry Valion. Over his thirty six year career, Larry has created the programming for such venues as Universal Amphitheatre, Denver's Paramount Theatre, Atlanta's HiFi Buys Amphitheatre and pioneered the presentation of Latin events in Los Angeles back in 1982. Voted by the live industry as ''Talent Buyer of the Year" five times, no one is better suited to ensure that Bayfront Park Amphitheater is effectively represented to the live industry. 1 irreir r`4 23 PROGRAMMING AEG LIVE will fund the programming guarantees and show expenses to provide Bayfront Park Amphitheater with a programming plan that will effectively build event nights and audiences. Our investment will ensure that Bayfront Park Amphitheater attracts a wide range of top level entertainment in order to attract patrons from throughout the market, in all age groups and ethnicities. With AEG LIVE, Bayfront Park Amphitheater will enjoy a year-round season of top live entertainment from many genres. The season will include top rock, pop, Latin, classical and urban artists as well as festivals to appeal to world music fans such as Jamaican, Haitian and other ethnic festivals. Our goal is to maximize the number of events that can sell out the venue creating excitement for guests, the artists and the local community. The following list provides a sample schedule of the world -class performers that would be sought for an annual season. It is important to note that Bayfront Park Ampitheater will be AEG Live's signature venue in the Miami -Fort Lauderdale market, ensuring that this iconic venue receives the dedication and focus necessary to build compelling and profitable seasons for Miami residents. Other promoters own their own venues in the market and have other venue contractual obligations. Since they realize parking and other revenue streams at their owned venues, they are more likely to extend offers for their proprietary venues rather than take shows to Bayfront Park Amphitheater. AEG Live, however, owns no other venues in the market and therefore, the development of Bayfront Park Amphitheater will receive our full and undivided attention. afialw L 24 PROGRAMMING LATIN La Academia Alejandro Fernandez Cachao Lopez Cafe Tacuba Daddy Yankee Banda Montero Diego Torres Dyango Gilberto Santa Rosa Isabel Pantoia Juanes Los Tigres Del Norte Paloma San Basilio Paulina Rubio Ricky Martin Thalia Willie Chirino ROCK 3 Doors Down Allman Brothers Band Barenaked ladies Brian Selzer Donald Fagan Elvis Costello Heart John Fogerty Journey Nelly Furtado Ringo Starr a His All Star Band Rob Thomas Robert Plant Sheryl Crow Steely Dan Steve Miller Band Stevie Nicks Matchbox 20 Santana Styx The Black Crowes Tod Amos Widespread Panic Wilco Melissa Etheridge URBAN/R&B/REGGAE B.B. King's Blues Festival Anthony Hamilton Babyface Brian McKnight Earth Wind a Fire Jill Scott Kanye West Ketn Mary J. Bilge 25 PROGRAMMING COUNTRY Alison Krauss + Union Station/terry Douglas Brad Paisley Chris Tomlin Dolly Parton Gretchen Wilson Kenny Rogers Pat Green Willie Nelson Wyuonna Brooks a Dunn POP Aaron Neville & The Meters Ashlee Simpson Backstreet Boys Beach Boys Family a Friends Bonnie Raitt Daryl Hall & John Oates Donna Summer Harry Connick Jr. James Blunt lames Taylor Linda Ronstadt Michael Buhle' Paul Simon Rick Springfield Steve Winwood The Cheetah Girls Tom tones ALTERNATIVE ROCK All American Rejects Beck Ben Folds Ben Harper Dashboard Confessional David Gray Death Cab For Cutie Flaming Lips Franz Ferdinand Interpol John Mayer Story 0f The Year Sum 41 The Polyphonic Spree The Raconteurs The Used Train Wilco The Shins COMEDY Cedric The Entertainer D. 1. Hughley 26 PROGRAMMING George Carlin JAII George Lopez "Smooth lau Christmas" Guillermo Guedes Diana Krall Jackie Mason Sergio Mendes Kathy Griffin Al larreau/George Benson Lewis Black Tony Bennett Mike Epps Chris Boite Ray Romano FAMILY Graham Norton Barney Lypsynka Dora, The Explorer Eddie Iuard Sesame Street Lice Kat Williams David Copperfield Russell Peters The Wiggles CHRISTIAN MercyMe Third Day MARKETING AEG's venue, event and attraction marketing programs are the most sophisticated in the world. Our expertise goes far beyond typical event advertising and promotions. Key strengths that make AEG's events sellouts are: Targeted group sales Effective advertising Internet marketing - Multi -market expertise Compelling promotions AEG Live's marketing team will create a cross -platform, multi -media campaign that will revitalize the venue in the eyes of consumers and artists alike. The campaign will re -introduce the venue to the industry and concert fans, highlight the venue's role in the community and announce the upcoming concert season. Our relaunch campaign to the live industry will be created to reach a number of important target audiences including: - booking agents, artist managers, record company decision -makers, - television production companies, location scouts, production managers and production industry associations, - special events planners, public relations firms and charity staff decision -makers, - radio station managers, promotion and marketing directors. MARKETING The relaunch campaign tactics will include: -Direct sales to our comprehensive contact lists by our programmers; -Press releases and story ideas pitched to industry trade publications; -Print advertising in industry trade publications and coordination of venue listings in all trade directories; - Creation of a new, state-of-the-art Website with lead generation features and a corresponding email database program and campaign for lead follow-up; -Invitations to events at the facility and tours of the venue's capabilities; and - Creation of a compelling venue brochure/rental kit. Our relaunch campaign to local consumers will include: PUBLICITY - A comprehensive PR campaign will be executed and continue through to the individual events. This aspect of our marketing campaign will be a_Iocal effort focused on getting the public to the Amphitheater. Our efforts will emphasize the amphitheater's location, how to get there, public transportation, and the location and ease of parking. National entertainment news outlets will be targeted such as Celebrity Access, Rolling Stone and Blender Magazine. Miami area musicians, celebrities, luminaries and tastemakers will be enlisted to participate by way of testimonials and appearances. MARKETING A press campaign will be undertaken with all the local papers with stories targeting many different groups within the community. Sample targets include but are not limited to Miami Herald, El Nuevo Herald, Ft Lauderdale Sun - Sentinel, Palm Beach Post, New Times, El Popular; local TV WPLG, WFOR, WTV.J, WLTV, WSCV, WSVN, WBFS, WBZL and key radio stations. Promotional items to be hand delivered throughout the campaign to local radio drive time and TV news personalities and local music writers to create anticipation for the grand re -opening, announcement of the line-up and upcoming concerts. INTERNET/ Online Promotions - We will work with top national, regional, lifestyle and fan -created websites to secure online features and promotions. Promotions will be adapted for each music genre and lifestyle target as we announce the line-up and begin selling tickets. All online promotions will contain prominent venue and ticket purchasing links. We are committed to measuring and understanding the success of our work. Everything we do incorporates intelligent campaign metrics and actionable reporting as the highlights below illustrate. We will work closely with Tickemaster.com to feature the venue and highlight upcoming shows on the website, via email and throughout their family of sites. • MARKETING Some of AEG LIVE's noteworthy online project successes include: CELINE DION A NEW DAY... / http://celirle,aec_Live.comi A New Day... featuring Celine Dion is beginning its fourth and final year at The Colosseum at Caesars Palace, Las Vegas. Since opening in March 2003, the show has attracted record crowds and continues to transport more than 4,000 audience members each night to a unique world of performance, passion and theatrical innovation, with Celine joined on stage by an elite international cast of dancers. A New Day..., created by DRAGONE and produced by AEG; is performed 200 evenings a year. Launch campaign began May 2002 and sold over 28,000 tickets through December 2002 prior to paid advertising beginning. During this window website promotions generated approximately 35,435,000 impressions and partner websites delivered 5.5MM emails promoting the show. BON JOVI 2005 World Tour / http://bonjovi.aegLive.com/ Promoted by AEG, the 2005 tour is a true collaboration with artist management and Island Records. Over 3 million albums sold in its first 6 months, 56 sold out US arenas in 41 cities, sold out stadiums in Japan and Europe culminating in a US stadium tour this summer. AEG created and managed the official Bon Jovi tour website portion of BonJovi.com generating over 3MM impressions and sold over 20,000 tickets. In addition to the basic tour itinerary the site boasts a content depot of viral tools including banners, buddy icons, flyers and wallpaper. Of the content downloaded our tracking -shows that the banners alone generated 3.6MM additional impressions across third party and fan based sites. Promotions were executed on 65 regional websites including local papers, radio stations and entertainment sites generating 20MM impressions a month. aer 31 MARKETING COACHELLA / http://coachella.com/ Celebrating its seventh year, this year's lineup featured Red Hot Chili Peppers, Bjork and Rage Against The Machine, Coachella 2007 was definitely one of the standout festivals this year and one to remember in years to come. NPR even went so far as to deem Coachella "...one of the most respected of American rock music festivals". At Coachella Community at http://community.coachella.com/homepage.php ticket purchasers could interact with other ticket buyers to connect and communicate with each other based on similar interests, geographical location, favorite bands, etc. The main Coachella website (www.coachella.com) is interactive and informative with a 2-minute time lapse video of the past festival and a message board. Coachella's myspace page (http://www.myspace.com/coachella) currently has 50,000 friends. We ran contests, posted news and lineup announcements and photos on this page. Myspace is also where we ran the "opening slot on Coachella" contest where we had thousands of entries and one lucky band and one lucky DJ got to play Coachella. E MAIL and MOBILE - Email and mobile communications have become increasingly important tools to create more personal and deeper relationships with the most active live event fans. In order to capitalize on this, we will start early, through all of our touchpoints with consumers, to create a comprehesive, segmented database for e-mail and mobile text communications. Through these channels, we will cultivate and develop relationships, communities and on going communication with locals to give them a sense of ownership. E-mail and text communications will include compelling e-cards and SMS/MMS messages with details on how to be the first to know about venue, show announcements, pre -sales, general public ticket sales, special offers and upcoming events. Fans select email, SMS/MMS(mobile phones) or all as their preferred method of cornn-munication. 32 MARKETING VIP PROGRAMS AND PREMIERE SEATING PROGRAM - AEG LIVE will create a VIP seating program that will generate increased revenue and build loyalty among frequent event -goers and corporate clients. The VIP seating programs offer patrons tiered packages of VIP benefits including reserved seating in preferred sections of the amphitheater, pre-sale/early notification for every public event, access to a members -only area and other VIP benefits. The diversity of the programming seasons we create will allow us to create customized campaigns for segmented target audiences. Our segmented audience marketing will include traditional media, publicity, promotions with local restaurants and clubs and outreach campaigns to all ethnicities, seniors groups, seniors, gay, lesbian, and family/parent organizations, just to name a few. 33 NAMING RIGHTS AND SPONSORSHIP AEG LIVE will increase venue revenues by creating and selling innovative naming rights and sponsorship visibility packages that will attract the nation's blue-chip marketing companies. Adding venue -appropriate sponsors not only allows us to generate substantially increased revenue, but also creates high -visibility cross -marketing opportunities to promote our events to sponsor companies' customers and employees. AEG's marketing team leads the field in revenue enhancement for venues. Their successful approach relies on their preeminent expertise in several areas: AEG has sold more naming rights than any other company AEG sold the largest naming rights deal in history AEG sold the largest theater naming rights deal ever - AEG sold the largest Las Vegas sponsorship in history - AEG has sold more luxury suites than any other company in the world - AEG has generated more premium seat revenue than any other company or team in the world OPERATIONS AEG LIVE is confident in its abilities to operate the venue at optimal efficiency given its experience with operating venues such as the NOKIA Theater at Times Square and NOKIA Theater at Grand Prairie. AEG Live operates a diverse portfolio of venues around the world including clubs, theaters, arenas and stadiums. Because of this diversity, we offer no cookie cutter approach to the operation of any venue. One of AEG LIVE`s greatest strengths is its ability to enter a community, gauge the operation of a given facility and design a program to meet the community needs in the operation of a particular entertainment venue. For Bayfront Park Amphitheater, AEG LIVE will provide all the necessary event -related operations and services required to book, promote and produce events at the venue. In addition to negotiating with and securing artists for each event, these services include: Providing all production elements for each event including procuring and paying for front and back of house personnel such as: • Ushers • Ticket takers • Security • Box office staff • Stagehands OPERATIONS • Technicians • Customer service representatives • Cleaning crews • Concession operators Creation and coordination of venue and stage requirements including: • Required equipment rentals such as additional sound and light equipment • Creating required stage designs • Coordination and implementation of security, fire and medical assistance plans for events • Securing all authorizations and rights from third parties necessary to stage an event including municipal permits and performing rights/licenses. Artist and VIP requirements: • Fulfilling all artist production needs and catering for artist personnel and event staff; • Operation of V.I.P. area for amphitheater members and sponsors before and during events. AEG shall provide all the elements necessary for the promotion of events including: • Placing all event advertising via print, radio, television,•Internet, mobile, press, public relations and other media as appropriate; i'`l 36 OPERATIONS • Coordinating promotions for individual events; • Managing all ticketing services including the sale of group, season subscription and VIP tickets and negotiating and developing ticket pricing strategies for each event; • Organizing and arranging VIP and sponsor meet & greets; • Fulfilling individual event sponsorship benefits such as on -site promotional displays, signage and tickets. AEG will also: • Secure event insurance covering claims arising from the production and promotion of events; • Be responsible for all changes to the venue incurred in connection with an event; • Be responsible for ongoing, normal venue maintenance costs (subject to facility due diligence prior to completion of an agreement). FOOD & BEVERAGE AEG Live will coordinate the development of improved food and beverage operations at the Amphitheater. In order to accommodate modern food service, part of the capital improvement commitment is to create permanent food and beverage locations throughout the venue footprint with the addition of concrete pads, electrical connections and drainage. Jesi jJr� 38 CAPITAL IMPROVEMENTS AEG Live will commit up to $4 million dollars in capital improvements in order to improve the venue's infrastructure and ability to present today's top performers and productions as well as to provide greater comfort for patrons. Our capital improvement program will include: • Replacement of existing bench seating with state-of-the-art individual fixed seats for 6,000 patrons • New roof structure over the stage that will have capacity to support state-of-the-art rigging • Upgrade to the concession areas with the creation of cement pads that will have access to drains and power for temporary food preparation areas • Additional restrooms • 20 corporate boxes FINANCIAL PROPOSAL 1. Parties: AEG Live LLC ("AEG") or assignee and City of Miami. 2. Project: Operation and programming of the Bayfront Amphitheatre ("Venue") 3. Capital Improvements: AEG will invest up to Four Million Dollars ($4,000,000) for improvements to the Venue. The improvements will include: • • replacement of existing bench seating with state-of-the-art individual fixed seats for 6,000 patrons New roof structure over the stage that will have capacity to support state-of-the-art rigging Upgrade to the concession areas with the creation of cement pads that will have access to drains and power for temporary food preparation areas Additional restrooms • 20 corporate boxes 4. Compensation to the City: AEG will pay the City a guaranteed annual rent of Four Hundred Thousand Dollars ($400,000) with an annual escalator of 3% plus an annual percentage rent equal to five percent (5%) of annual "Gross Sales" over Four Million Dollars ($4,000,000 escalated annually by 3%). "Gross Sales" is defined to mean the gross receipts actually received by AEG with respect to the Venue from: • Sale of food and beverages • Sale of artist merchandise (net of taxes, artist share and vendor fees) FINANCIAL PROPOSAL ▪ Facility fees • Ticket service charge rebates and service fees collected at box office sales • Rental fees from third parties • Sale of corporate boxes • Sale of Venue and event sponsorships other than a name -in -title sponsorship Plus: Naming Rights- AEG shall have the right to rename the Venue (with or without use of "Bayfront") as part of a name- in -title sponsorship agreement (i.e. Nokia Amphitheatre). City to receive 25% of net revenue from such naming rights. 5. Facility Fees- AEG shall have the right to impose and retain (subject to percentage rent obligation) a facility fee on the sale of event tickets. 6. Term — Initial term of 10 years with one 5 year option. 7. Indemnity and Insurance: AEG will indemnify, defend and hold harmless the City and Trust and their respective officials, employees, and agents and each of them from and against all losses, costs, penalties, fines, damages, claims, expenses, (including attorney's fees) and liabilities arising out of or relating to, or caused by, the submission of its proposal or the performance of services by AEG. AEG will hold harmless and indemnify the City and Trust from its negligence in the provision of services and for any fines which may result from the fault of AEG. AEG will provide insurance in accordance with the requirements set forth in Section 1.3 of the RFLI. i4v-11 , 41 FORMS & STATEMENTS See attached. 42