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HomeMy WebLinkAboutR-88-0039J-88-38 12/28/87 RESOLUTION NO. 138"39 A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A USE AGREEMENT BETWEEN THE CITY OF MIAMI AND UNITED SPORTS OF AMERICAIIN A FORM ACCEPTABLE TO THE CITY ATTORNEYo FOR THE PURPOSE OF USING THE ORANGE BOWL STADIUM FOR A MOTORS PECTACULAR, EVENT ON JANUARY 16, 1988 WITH NO USE FEE FOR TICKET SALES UP TO $225,000, AND TWENTY PERCENT (20%) OF TICKET SALES ON ALL TICKET SALES FROM $225,000 TO $325,000, AND TEN PERCENT (10%) OF TICKET SALES ON ALL TICKET SALES IN EXCESS OF $325,000. WHEREAS, United Sports of America has promoted their "Motorspectacular" event for the past four years in the Orange Bowl Stadium; and WHEREAS, the promoter had lost money on the past two Orange Bowl "Motorspectacular" events; and WHEREAS, in negotiating for the return of the event in 1988, the Department of Parks, Recreation and Public Facilities found - that the promoter refused to accept the 10% rent as specified by City Code for Orange Bowl Stadium events; and WHEREAS, United Sports of America has proposed a stadium use fee of zero for ticket sales less than $225,000; of 20% for all ticket sales from $225,000 to $325,000; and 10% for all ticket sales over $325,000; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is hereby authorized to execute a use agreement between the City of Miami and United Sports of America,in a form acceptable to the City Attorney for the purpose of using the Orange Bowl Stadium for a Motorspectacular event on January 16, 1988 with no use fee for ticket sales up to $225,000; CITY COMMISSION MEETING OF JAN 14 1989 )N No.88-3� A 19 and twenty percent (20%) of ticket sales on all ticket sales from $225,000 to $325,000; and ten percent (10%) of ticket sales on all ticket sales in excess of $325,000. PASSED AND ADOPTED this 14th , /dayoJanuary 1988. XAVIER L. S Z, MA OR ATTEST: MA HIRAI CITY CLERK PREPARED AND APPROVED BY: �er4� 7z • _ ROBERT F. CLARK CHIEF DEPUTY CITY ATTORNEY APPROVED AS /TO FORM AND CORRECTNESS: A A DOUG RTY ATTORN Y 813 -39 CITY OF MIAMI. FLORIDA is INTER -OFFICE MEMORANDUM TO The Honorable Mayor and DATE: 4AN Members of the City Commission SUBJECT! Resolution Authorizing Execution of Orange Bowl Use Agreement for FROM. "Motorspectacular" Cesar H. Odio REFERENCES: City Manager ENCLOSURES. RECOMMENDATION: It is respectfully recommended that the City Commission adopt the attached resolution authorizing the City Manager to execute a stadium use agreement between the City of Miami and United Sports of America for the 1988 Motorspectacular. The agreement calls for a variance from the Orange Bowl Stadium use fee prescribed by City Code. BACKGROUND: The -Department of Parks, Recreation and Public Facilities has been negotiating for a 1988 Motorspectacular event with United Sports of America which has promoted this event for the past four years at the Orange Bowl Stadium. For the past two years the event has resulted in losses for the promoter who desires to continue bringing this event to the Orange Bowl Stadium but not at the 10% stadium use fee prescribed by City Code. United Sports of America has proposed an alternate rental fee which, if acceptable to the City, will enable this event to occur again in the Orange Bowl. Their proposal asks for no rent fee to be charged on ticket sales up to $225,000; and 20% use fee on all ticket sales from $225,000 to $325,000; and 10% use fee on all ticket sales over $325,000. The Department of Parks, Recreation and Public Facilities has analyzed the offer made by United Sports of America and the Department has recommended its acceptance. Based on an estimated ticket sale of $260,000, the City's potential net revenues would be as follows: Stadium use fee $ 6,700 Food a beverage concessions 340000 Parking 7,000 Novelty concessions _3,500 Total potential revenues $51,200 Without this alternate stadium use fee the promoter will not bring the event to the Orange Bowl and may take his event to another Florida venue. 5 _/ l 8-39 FUSE AGREEMENT CITY OF MIAMI TH,S AGREEMENT made and entered into this _„ day of 19 , by and between the CITY OF MIAMI, a Municipal corporation of the State of Florida, hereinafter referred to as the "CITY" and United Sports of America, a Missouri Joint Venture, a for profit organization, with its principal office located at 8880 Ward Parkway, Suite 150, Kansas City, Missouri, 64114, telephone (816) 523-6800, hereinafter referred to as the "USER". R E C I TA Ls In consideration of the covenants and agreements hereinafter set forth, the CITY does hereby grant unto the USER the privilege of entry upon or into the Municipal facility of the City of Miami known as the ORANGE HOWL STADIUM, the said facility to be entered upon or into for the purpose of presenting the Coors Light Motor :spectacular (Mudathon, I ruck 6 Pull, Demolition Derby, Roll- overs, Specialty Acts) for the period commencing at 12:00 Noon on January 16, 1988, and terminating at 1200.Midnight on the 16th day of January 198do not including set up or dismantle time, If required, set up may begin on the 13th January, 1988 at 6:00 PM and dismantle shall be no later than the 19th day of January, 1988. (Set up and dismantle time is normally free of charge unless unusally long periods of time are required). January 17, 1988 shall be used as a rain date at no additional use fee. User shall mean licensee. THE Ui.ER HEREBY GJNVENANTS AND AGREES: I. To pay the City of Nia©i for the use of said facility: 'twenty percent (20%) of ticket sales from $225,000 (after State sales tax) to $325,000 (after state sales i tax) and ten percent (10%) of ticket sales over $325,000 (after State sales tax). CITY has received from USER, check #7749 dated 2/18/87 in the amount of $500 as a non-refundable deposit which shall apply against said use fee. The balance of use fee (if any) plus the 5% State of Florida use tax on the total use fee will be paid at the close of the event. 1 of 8 1% SS-39 L 04 ti 2. To pay the CITY, on demand, such sum or sums as may be due to said CITY for additional services, accommodations or material furnished to said USER. J. That the USER shall pay CITY the cost of any repair, ' rehabilitation, damage correction, replacement or restoration of the premises, or to defray any other unusual but reasonable expense borne by CITY as a consequence of presentation of the event. 4. The Director of Parks, Recreation and Public Facilities, at his sole option and discretion, shall be entitled to demand payment to CITY for the above items at the time of the closing of the ticket gates for the event. ouch monies that are on hand as the "on premises gate receipts" shall be available for payment to the City of Miami to satisfy such sums owed CITY for rental, additional services, accommodations, materials furnished, cost of any repair, rehabilitation, damage correction, replacement or restoration of the premises borne by -..-TY as a consequence of presentation of the event. The Director of Parks, Recreation and Public facilities shall, at his option, be entitled to collect such sums and shall be paid prior to payment of any i other bills or sums of money owed. j "un premises gate receipts" shall be defined as all sums of money collected by the USER or his agent at the I stadium in connection with a particular event. S. That all advanced sums or advanced payments for services shall be forfeited if, through the fault of the USER, the event is not held on the dates and times fcontracted. 6. :*.TY reserves the right to enter upon the premises at any time during the period of use as it deems necessary. 7. C..TY reserves the right to remove from the premises all USER effects remaining in or on the ground of the facility after the end of the contract period, at.the expense of the USER: or to charge storage at the same 2 of 8 88-39 11% It. 10 rate stated in Paragraph l on this Agreement, for each day or part of a day that said effects remain in or on the grounds of the facility after the end of the contract period. For purpose of this provision, "dismantle time" shall be considered to be a part of the contract term. 8. I*o provide a diagram of the proposed event layout to the office of Yire Prevention, 275 N.W. 2nd Street, Miami, X•lorida and obtain fire permits required by section 19- 516 of the Code of the City of Miami, relative to fire safety. 9. That any matters not herein expressly provided for shall be in the discretion of the City Manager or his representative. 10. :hat USER has read the "Rules and Regulations for USE of City of Miami Municipal Facilities" which are attached to the "Application for use of City of Miami Municipal Facilities", that he or she fully understands said Rules and Regulations, and that by the execution of this Agreement he certifies that he will abide by each and every rule and regulation set out therein without the need to have said Rules and Regulations repeated in this Agreement. 11. USER shall indemnify and save harmless forever CITY, and all the CLTY's officers# agents and employees, including all police officers and staffing as specified in Paragraphs 14e and 15 of this Agreement, from all charges or claims resulting in any personal injury, loss of life, or damage to property, from any act, omission or neglect by himself or his employeest USER shall further indemnify CITY as to all costs, attorney's fees, expenses and liabilities incurred in the defense of any such claims and the investigation thereof. 12. LLER agrees that there shall be no discrimination as to race, sex, color, handicap, greed or natural origin in connection with any operation under this Agreement. 3 of 8 88-3;9 4 i. `LHL TY HKKEBY CuVENANTS AUD AGREES& 13. To furnish at ClTY's expense, except as may herein be otherwise provided, light for ordinary uses water for all reasonable purposes and rest room supplies, and nothing else. THE PARTIES HEREBY MUTUALLY COVENANT AND AGREE& 14. ►:hat the following ddditional provisions sha11 be adhered to: a. Occupational license to be secured from the Tax and License Division, 65 S.W. 1 Street. Miami, Florida. b. Certificate of Use Building and Electrical Permit to be secured through City of Miami Building Department, 275 N.W. 2nd Streets Miami. Florida. C. Insurance coverage is required and is to be cleared through the City of Miami General Services Administration at 1390 N.W. 20th Street, Miami, Florida, telephone (305) 579-6740. The policy must be endorsed to name the CITY as a primary additional insured and CITY is to be provided with a copy of the policy and a certificate of same. The company must be acceptable to be CITY. No qualification of the primary additional insured -! provision is permitted. -i P -; d. All parking revenue belongs to CITY. f -> e. UbER agrees to pay for necessary personnel such as electricians, custodians, groundsmen, security, etc.; said personnel will be paid directly by USER with a four (4) hour minimum at rates established by the Director of Parks. Recreation and Public Facilities, for said event. The Director of Parks, Recreation and Public Facilities will provide USER with an estimate of said costs not less than 72 hours prior to the start of said event. 4 of 8 88-39 f. The Director of Parks, Recreation and Public z'acilities, after full discussion of the type of event with USER will contact the City of Miami Police Department for sufficient security prior to, during and after the event. Police to be paid directly by USER. y. USER agrees to pay for cleaning contractor for cleanup of facility after event has ended. The estimated for cleaning is $4,000.00 based on attendance of 50,000. A trash pick-up charge will also be the responsibility of USER. i. USER agrees to include in all advertising for event in the facility that bottles and cans cannot be brought into the facility. j. UsER will install all staging and props, including special lighting, etc., at own expense, same to be approved by Director of Parks, Recreation and Public Facilities. k. Damages will be jointly assessed by the Director of Parks, Recreation and Public Facilities and, if any are confirmed, repair will be paid for by USER. USER shall return the Stadium to CITY in the same condition as it was when it was received. 1. Ticket sellers, takers and ushers are responsibility of USER. m. USER agrees to tear down immediately after event has ended. n. Ticket manifest is to be presented to the Director of Parke, Recreation and Public Facilities at the time of the signing of the contract. o. USER shall furnish to the Director of Parks, Recreation and Public Facilities two hundred (200) tickets for promotional purposes for other stadium events. These seats are to be pulled from Sections P, Q, R, S, T, U, V, No evenly from Rows 17 - 25. CITY shall permit USER to use 5 of 8 .4 4.11 IP up to 5% of the total tickets printed for complimentary purposes. All complimentary tickets issued in excess of the 5% of the total tickets printed shall have a value equal to the ticket price offered to the public and shall be included in the calculation to determine gross ticket sales as described in Paragraph 1 of this Agreement. P. USER guarantees that no damage will be done to the orange Bowl playing field (Prescription Athletic Turf) and that it will be jointly inspected by USER and the Director of Parks, Recreation and Public Facilities to insure that it is returned in the same condition as it was accepted. All monies necessary to repair damage shall be paid by USER. q. Gates are to be opened at least 1.5 hours prior to show time. All tickets and advertising shall indicate gate opening time. CITY reserves the right to open gates or adjust gate opening time as it deems appropriate, based on crowd and conditions. r. USER agrees that he has no concession rights during the duration of this Agreement. s. A miximum capacity of 65,000 will be permitted for this event. t. All filming or video of events in CITY facilities must be approved by the Department of Communications' Film & Video Coordinator, George Detrio. Without such approval, filming/video shall not be permitted. Please. contact George Detrio at (305) 579-6925. 15. Police requirements shall be determined by the Department of Parks, Recreation and Public Facilities and the cost shall be responsibility of USER. 6 of 8 88-3:1 if in the opinion of the police event commander, the USER of the stadium does not actively and conscientiously suppress narcotics actively within the audience, he may summon plain clothes officers in sufficient numbers to effectively control the situation. The promoter will assume the responsibility of paying for the services of these additional officers who may work on duty at their normal hourly rate or off -duty at time and one half pay. If the additional officers are off -duty, they will receive a minimum of four hours compensation or the actual time devoted to the problem, including time spent completing reports, booking prisoners, etc., whichever is greater. 16. if it becomes necessary for the CITY to institute proceedings to collect any monies due it by USER, USER agrees to pay any and all reasonable attorney's fees and costs expended in the collection thereof. 17. All terms and conditions of this written agreement shall be binding upon the parties, their heirs and assigns, and cannot be varied or waived by any oral representation or promise or any agent or other person of the parties hereto, unless the same be in writing and mutually signed by the duly authorized agent or agents executing this Agreement. lb. That the parties intend that this document shall be a license Agreement and that no leasehold interest is conferred upon the USER. 19. This instrument and its attachment constitute the sole and only Agreement of the parties hereto relating to said Agreement, and correctly set forth the rights, duties and obligations of each other as of its date. Any prior agreements, promises, negotiations or representations not expressly set forth in this Agreement are of no force or effect. 7 of 8 88-:3:t 1W 20. L.o amendments to this Agreement shall be binding on either party unless in writing and signed by both parties. JN WITNESS WHEREOF, the parties hereto have individually and through their proper corporate officials executed this Agreement the day and year first above written. Attests city Clerk WiaNESS: APPROVED AS TO iNSUAMCE: :nsur"ce Manager `APPROVED. halter lby Director Parks, kecreation and Public Vacilities Deparment THE CITY OF MIAMI, FLORIDA By Cesar H. Odio City Manager User: United Sports of America, a M ssouri Joint Venture, a for Profit Organ zat on By William R. Ciine Title APPROVED AS TO FORM AND CORRECTNESS: Lucia Dougherty City Attorney 8of8 SS-33