Loading...
HomeMy WebLinkAboutExhibit BMIAMI MARINE STADIUM & FLEX PARK—MIAMI, FL FINANCIAL PROPOSAL Oak View Group OVG Response 8-28-25 PHASE 1 City of Miami (City) and Oak View Group (or a subsidiary thereto) (OVG) to immediately enter into a operating/management agreement for Flex Park for a term of 5yrs, subject to early termination upon commencement of the long-term operating/management agreement for Miami Marine Stadium (following its restoration) and Flex Park, as described below. City and OVG to also enter into an expert consultant agreement for the same term, covering the monthly consulting fee and pre -opening deliverables at Miami Marine Stadium site. During this period City and OVG will • Advance a referendum for the approval of the long-term management agreement • Negotiate and execute the long-term operating/management agreement • Develop an operating business and capital improvement plan with a detailed cost plan for operations, and capital improvements of both the stadium and flex park (such plan to be mutually agreed by the parties) • City will develop and implement a financing plan for the capital improvements for the stadium and flex park with assistance from OVG • City will commence and complete construction of the improvements to the stadium with assistance from OVG • City will commence and complete construction of the improvements to the flex park with assistance from OVG • OVG will operate the existing site PRE OPENING CONSULTING SERVICE FOR MIAMI MARINE STADIUM AND EXISTING FLEX PARK & OPERATIONS OF EXISTING FLEX PARK - Oak View Group (OVG) will be paid a monthly consulting fee of fifteen thousand dollars ($15,000) for completing the pre -opening deliverables at Miami Marine Stadium site. The City shall also reimburse OVG for any pre -approved out of pocket expenses directly related to such consulting services. OPERATIONS OF FLEX PARK - OVG will be paid a monthly management fee of Twelve Thousand Five Hundred Dollars ($12,500) plus 7% of gross revenues (including food and beverage and sponsorships) for operations of existing Flex Park prior to the completion of renovation of the Miami Marine Stadium and the flex park All revenue from the operation of Flex Park (other than the fees described in this paragraph) shall belong to the City. All operating expenses related to the operation of Flex Park shall be funded by the City. PHASE 2 ONGOING OPERATIONS FEE PROPOSAL CONTRACT TERM - OVG proposes an initial term of ten (10) years, with the option for three (3) additional renewal terms of ten (10) years each. Renewal terms shall be subject to mutual agreement by both parties. The initial term will commence at Certificate of Occupancy of Miami Marine Stadium, following its restoration, and upon completion of the Flex Park improvements. BASE MANAGEMENT FEE - OVG shall receive an annual base management fee of four hundred thousand dollars ($400,000) for managing the Miami Marine Stadium and Flex Park. Starting with the 46 year after the opening date of the Stadium, this fee will be subject to an annual increase based on the Consumer Price Index (CPI). INCENTIVE FEES - OVG shall receive an incentive fee equal to seven percent (7%) of Gross Event Revenue. NAMING RIGHTS / SPONSORSHIP / PREMIUM SEATING - OVG's Global Partnerships division will serve as the exclusive sales agent for sponsorship and premium seating for the Stadium and Flex Park. OVG will receive a commission of fifteen percent (15%) of all gross sponsorship and premium seating revenue. Sponsorship will be subject to City approval and compliance with any applicable laws and regulations. PARKING OPERATIONS - Should OVG be engaged to manage parking operations, a separate fee structure will be negotiated for those services. FOOD & BEVERAGE SERVICES - OVG Hospitality will serve as the operator of Food & Beverage services at the Stadium and Flex Park. OVG will retain the right to subcontract these services at its sole discretion. OVG Hospitality will retain seven percent (7%) of gross food and beverage sales. All Food & Beverage revenue (other than the 7% fee) shall belong to the City. All expenses of the food and beverage operation will be the responsibility of the City (on the P&L for the stadium and Flex Park). REVENUES & EXPENSES - Subject to the foregoing fees, the City shall retain all revenues from the operation of the stadium and Flex Park, and shall fund all expenses related to the operation and maintenance of the stadium and Flex Park. CAPITAL INVESTMENT OVG proposes to make a total capital investment of up to ten million dollars ($10,000,000), subject to the mutually agreed upon final program elements of the renovated stadium and Flex Park, to be contributed as follows: Up to five million dollars ($5,000,000) to be paid at the time of the first public event at the renovated stadium. This investment will be amortized over ten (10) years. Up to five million dollars ($5,000,000) to be paid upon the fifth anniversary of the first public event at the renovated stadium. This investment will be amortized over five (5) years. If the management contract terminates prior to full amortization of OVG's investment, the City shall pay to OVG the amount that remains unamortized upon the termination date, as to be further described in the long -form management contract between the City and OVG. The City will contribute the remaining capital necessary to complete the improvements (including purchase and installation of all FF&E) to the Stadium and Flex Park, consistent with the capital plan developed in Phase 1 of the operating period. At a minimum, the City shall fund sufficient amounts to ensure the stadium and Flex Park meet all requirements to become and remain fully operational in accordance with all applicable laws. OVG's obligation to contribute its capital investment, as described above, is subject to and conditioned on the stadium meeting mutually agreed design and programming requirements to be described in the long -form management contract between the City and OVG. The parties shall work together to develop the design plans and FF&E budget for the stadium renovations to ensure all operational expectations are achievable. The City shall be responsible for all design and construction costs (subject to OVG's capital contribution as described above) related to the stadium renovations pursuant to the mutually approved design. OVG will be granted access/control of parking spaces during the contract term to accommodate event expectations. SUBJECT TO BOARD APPROVAL All financial proposals and capital investments are subject to final approval by Oak View Group's Board of Directors.