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Home My WebLink AboutMiami Marine Stadium ReportMIAMI MARTha STADI STEERING COMMI JL'TEE REPO T I'® THE CITY OF MIAMI CITY MAl\ AGE TUESDAY, DECEM ]ER 11, 2012 The City of Miami Commission, on May 15, 2012, entered into a Memorandum of Understanding by and between the City of Miami, the Miami Sports and Exhibition Authority and Friends of Miami Marine Stadium, Inc. 501 (c) (3), for the evaluation of renovation and operation options for the Historic Miami Marine Stadium. The Miami Marine Stadium. Steering Committee, advisory to the City Manager, was established and called for in the Memorandum. The Steering Committee membership includes Commissioner Marc David Sarnoff, Camila Alvarez, Stu Blumberg, Richard Bunnell, Luther Campbell, Francisco Garcia, Bertram "Chico" Goldsmith, Thorn Grafton, Robert Holland, Lynn Lewis, Jack Lowell, James Quinlan, Anel Rodriguez, and Parker Thomson. The Committee has met on four different occasions: June 5th, August 28th, September 25th and October 30th, 2012, to assist Friends to identify, in a holistic manner, the uses in and around the Stadium that, over time, can maximize the public utilization of the Stadium and, at the same time, appropriately maximize the economic benefit of the redevelopment of this public area for the City and its residents. This report, composed of two parts, includes an edited version of the summary presented by Friends at the October 30th meeting as an attachment. Tables of financial projections of the interdependent parts of the development proposal and a template of the sublease of lands are included before the supporting material of the summary. Friends of Miami Marine Stadium, Inc. is a not -for -profit corporation, whose purpose is the preservation of the Stadium and its restoration to useful public operation without requiring City financial subsidy. Friends is the only entity which has, since the Stadium closed in 1992, organized and raised funds to preserve the Stadium. Through Friends' efforts, in consultation with the City, local citizens, planning and advocacy groups over the past several years, the cohesive Master Plan was developed. for Virginia Key and funding sources have been identified and vetted. Due to its substantial contributions and efforts to date, the Memorandum of Understanding identifies Friends as the entity that is entitled and responsible to work, with the assistance of the Steering Committee. The City has entered into a Public -Private Partnership with MSEA and Friends for a two year evaluation period in order to identify the viable renovation and operational options for the Stadium Premises. As part of a viable operational plan, for -profit operators and businesses need to be involved with the development of the Stadium Premises. The proposal as outlined by Friends in this report is in compliance with the Memorandum of Understanding, the intent of the Miami Marine Park portion of the Virginia Key Master Plan adopted by the City of July 2010 and the 1963 Deed. The Deed (see page 11) includes a reverter to the lands conveyed by the County to the City for the creation of the Marine Stadium site. That deed states, "land herby conveyed shall be perpetually used and maintained for the operation of a Marine Stadium and allied purposes only..." Friends proposes to restore and return the stadium to perpetual public use and to develop the surrounding lands as per this report for "Marine Stadium allied purposes." Friends is committed to accomplishing this project without subsidies form the City of Miami. This material summarizes the development plan that resulted from the collaboration between the Friends of Miami Marine Stadium and the Marine Stadium Steering Committee. We recommend the approval of the parcels which include the Water Basin as well as Parcels 1, 2A, and 2B to be subleased to Friends to realize this project. 2 Year Year Year3 Yoar4 Year5 REVENUE Stadium Events $1,500,000 51,500,000 $1,900,000 $2,200,000 $2,500,000 Commercial Sub Lease $330,000 $330,000 $330,000 $330,000 $330,000 N/A N/A N/A N/A N/A Misc_ Revenue Total Revenue $1,830,000 $1,830,000 $2,230,000 $2,530,000 $2,830,000 EXPENSES Building Operating Expenses $367,500 $378,000 5390,000 S402,000 $414,000 Contract Services $175,000 $180,000 $186,000 $191,000 S197,000 Payroll Costs $660,000 $690,000 $710,000 $669,000 $732,000 Management Fee - The Heat Group ($120K min. or 7% of gross) $120,000 $120,000 $133,000 $154,000 $175,000 Marine Park - Friends of Marine Stadium Administration $300,000 $309,000 $318,000 $328,000 $338,000 Insurance $300,000 $309,000 $328,000 $338,000 $318,000 Real Estate Taxes $0 50 $0 $0 $0 Interest $0 50 $0 S0 $0 Expenses $1,922,500 $1,965,000 $2,035,000 $2,113,000 52,194,000 RESERVE EXPENSES Capital Reserves $128,000 $128,000 $128,000 $128,000 $128,000 Technology Reserves $20,000 $20,000 $20,000 $20,000 $20,000 Total Expenses S2,070,500 52,113,000 $2,183,000 $2,261,000 $2,342,000 Net Operating Income ($240,500) ($293,000) $57,000 $279,000 $478,000 **Endowment ($7M starting) $6,759,500 $6,476,500 $6,523,500 $6,792,500 $7,280,500 **Not including connpounded interest NOTE TO PROJECTIONS: i. Revenues are estimates based on current assumptions, which may change as more knowledge on the Miami Marine Stadium's marketability is obtained. ?r%a of gross re 4 TYPE OF EVENT Concerts Marine Water Events (A) !Marine Water events (B) Festivals Special Events Special Holidays Graduations Weddings and Filming Architectural Tours TOTAL # of Events per Year # of Event Days per Year 5 3 2 3 3 3 8 10 6 8 9 3 2 3 N/A N/A 29 Revenue $490,000 $170,000 $100,000 $72,000 $10,000 $9,000 $45, 000 $1,500,000 Name Organization Title Event Alan Strauss Miami Sports International Director Existing successful Board -Up Miami Event at the MMS Anthony Albello Oceans Promotions President Experienced promoter of festivals Arie Kaduri NYK Concerts President One of most respected independent promoters in U.S. Arthur Edelstein Soul Station LLC President Promoter Arturo Aballi Miami Rowing Club President High School and Masters Rowing Competitons at the MMS Asa Sealy Carribean American Heritage Florida Director Caribbean Festival Brandon Berry Live Nation Management Concerts Bruce Orosz ACT Productions President Highly respected family and special events producer Carver Donaldson CSM Group VP, Sales Major Events and Festivals Christina LaBuzetta Location Resources President Location scout who works for CSI Miami and other television shows Debbie Gomberg HD Triathlon Director Ran Triathlon at the Marine Stadium Basin which is set to return next year GaryJobson US Sailing President Sailboat Races Geno Chaviano Genco Company President Promoter of concerts at Fillmore; works with Kiwanis Club of Little Havana James Quinlan Rhythm Foundation Chairman of Board Concerts - Latin and World Music JayAlmeida International Business Council of Florida President Latin American Jazz Festival John Valentino AEG Vice President - Florida Concert Series Jonathan Strauss Swim Miami Director Long Distance Swimming Event at Stadium; one of top 20 swims in the world Kevin Mynatt Florida Grand Opera Business Manager Summer Series Kim Bonomo Save Our Sisters Dragon Boat Club President National Women"s Breast Cancer Survivor Dragon Boat Races Lance O'Brien Kulchashok Musik President Nationally recognized promoter of Reggae Music Manny Wong Miami Dragon Boat Club President Dragon Boat Races Maricarmen Tredunio Miami Symphony Orchestra Director Concert Series Mark Weber American Power Boat Association President (Former) Promotor as well as sanctioning body for power boat races Mary Hart U.S. Vintage RaceboatAssociation President Vintage RaceboatRegatta Michael Przystawik Waltzing Waters, Inc. President "Liquid Fireworks" waterfeature; could be accompaniment to events Nicole Wyman Live In the Projects Marketing Promotional Events and special events for Art Basel Peter Huston Promoter Promoter Promoted concert tours for Bonnie Raitt and Crosby ,Stilis, Nash, and Young Raul Esquijarosa Seafest Seafood Festival to be done in conjunction with Boat Show Richard Serotta Reeffest Executive Director Promoted concerts at the MMS Rob Childers Multiirace President Triathlons Rob Noyes Sea Ray Boats Director Of Marketing Interested in hosting "Aquapalooza" event at Stadium Basin Scott Brock Boat Butler USA Chief Executive Officer High profile boat auctions Steve David American Power Boat Association Representative Unlimited Hydroplane Races Teresa Callava Kiwanis Club of Little Havana Marketing Director Does Calle Ocho Festival; wants expands to events at the MMS Wilber Andersen Tri-Events President Currently runs several triathlons a year at the Marine Stadium Basin Description Operating Budget Building Maintenance $30,000 Electrical Parts & Supplies $10,000 Equipment, Repairs, & Maintenance $5,000 F & B Equipment Repair $5,000 Flags $2,000 Floor - Pavers & Tiles $2,000 Furniture Repairs & Maintenance $1,000 Fuel & Propane $1,000 Generator $3,000 Door Hardware $3,000 Hardware Supplies $5,000 Housekeeping Supplies $15,000 Hurricane Supplies $1,000 HVAC Filters $2,0p0 HVAC Parts $5,000 Light Bulbs $5,00Q Lumber, Metal, & Paint $3,000 Material Handling Equip. $1,000 Office Equipment $500 Overhead Door & Grills $2,0Q0 Plumbing $5,000 Roof Inspections $3,000 Tools $5,000 Utilities - Electric $170,000 Utilities - Water $50,000 Utilities -Gas $30,000 Spotlights $3,000 TOTAL $367,500 Description Budget Building Automation System $5,000 Emergency Generator $3,000 F & B Equipment Repair $3,0Q0 Fire Alarm System $10,000 Fire Protection System $6,000 Forklifts $5,000 Grease Hoods $5,000 Grease Traps $5,000 Housekeeping -Non Events $10,000 Landscaping $30,0Q0 Pest Control $3,000 Seat Cleaning $10,000 Waste Removal and Containers $80,000 TOTAL $175,000 Staff Salary► General Manager $125,Q00 Assistant General Manager $90,000 Operations Manager $75,000 Engineer (2) $60,000 Box Office Manager $4S,000 Security Manager $45,000 Event Manager (2) $45,000 Administration Support (2) $35,000 TOTAL $660,000 ESTIMATED CONSTRUCTION COSTS SKANSKA SEPTEMBER 25TH, 2012 $28,925,310 CITY NEEDED RESOURCES OPERATIONS SHORT FALL NET REVENUE MIAMI MARINE STADIUM PARCELS 1 & 2A MARITIME CENTER COMM. PROP. PARCEL 213 COSTS $30,000,000 ($2,070,500) $1,500,000 ($240,500)* FUNDING From Operations From Operations From Endowment & Parcel 2B COSTS FUNDING $50,000,000 - RT/COMM. $11,250,000 - BOATS DISPLAY $61,250,000 Total $5,130, 000 Private Capital Development Private $5,460,000 $330,000 Private Capital Development MIAMI MARINE STADIUM PARCELS 1, 2A, & 2B MARITIME CENTER COMM. PROP. PARCEL 2B FMMS ADMINISTRATIVE COSTS YR 2 COSTS $300,000 YR 1- $100,00 FUNDING From FMMS Capital Reserves Account COSTS/REVENUE FUNDING MAINTENANCE & REPAIR EXPENSES $125,875 From FMMS Capital Reserves Account By development Entity By Development Entity INDUSTRY INNOVATION RESERVES ACCOUNT $20,000 From FMMS Capital Reserves Account By Development Entity By Development Entity INSURANCE COSTS $300,000 From FMMS Operations By Development Entity By Development Entity ESTIMATED PARKING REVENUE ($18/DAY 5D% OCCUPANCY)$300,000 From FMMS Initial Funding $450,000 Gross Revenue By Development Entity FMMS ENDOWMENT CAPITAL RESERVE $7,000,000 Part of Fundraising Campaign of $37,000,000 Part of Fundraising Campaign of $37,000,000 Part of Fundraising Campaign of $37,000,000