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HomeMy WebLinkAboutExhibit ATO: Arthur Noriega V., City Manager FROM: Erick Gavin, Director Venture Miami BACKGROUND CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM DATE: June 30, 2022 FILE: SUBJECT: Non -fungible tokens ("NFT") Program Partnership REFERENCES: ENCLOSURES: The City Commission will review for approval on July 14, 2022, an agreement with Time, LLC ("TIME"), whereby TIME seeks to partner with the City of M iami ("City")to establish a proposed project where fifty-six (56) local artists will design a unique collection of five thousand (5,000) digital art pieces in the form of non -fungible tokens ("NFTs"). The design of the NFTs will be multiple variations of the City Key referred to as "NFKeys to the City." Through this agreement, TIME will lead the primary sale and create a series of additional benefits for the City and the community, including curating experiences and engagement with businesses, non -profits and arts organizations all located within City boundaries. Under the proposed agreement, TIME will retain an initial fee of five hundred fourteen thousand three hundred twelve dollars ($514,312.00) to be paid out from revenue generated from primary sales of the digital art pieces. Any funds in excess of this initial fee will be divided and distributed as follows: (1) City of Miami - 50%; (2) Miami Charities - 10%; (3) Local Miami Artists - 25%; and (4) TIME - 15%. Ten percent of the secondary sale revenues will be divided and distributed in the same manner as the funds in excess of the initial fee generated during the primary sale. As TIME has extensive experience with strategizing the sale of digital assets, creative minting of those digital assets, and implementation alongside artist for their economic benefit, it is in the best interest of the City to waive competitive bidding. RECOMMENDATION In light of the above mentioned, and pursuant to Section 18-85, as amended, it is respectfully recommended that you, as the City Manager, waive competitive sealed bidding methods, via the written findings and reasons stated herein. Said waiver shall need to be ratified, confirmed, and approved by the City Commission, by a four-fifths(4/5ths) affirmative vote, during an advertised public hearing. Approved:; Arthur Norieg'' V City Manager Date: