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2010-27302 ResoRESOLUTION NO. 2010-27302 A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE WAIVER OF THE RENTAL FEES AND BROADCAST LICENSE FEES FOR THE USE OF MEETING ROOMS AND EXHIBIT HALL SPACE AT THE MIAMI BEACH CONVENTION CENTER IN AN AMOUNT PROJECTED TO BE APPROXIMATELY $100,000 FOR USE BY DECUBAS PRESENTS, LLC FOR SEVEN (7) BOXING EVENTS; AND FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE A SPONSORSHIP AGREEMENT ESTABLISHING THE CITY'S ROLE AND SUPPORT. WHEREAS, boxing has a long history at the Miami Beach Convention Center which served as the principal venue for many boxing and wrestling events dating back to the 1950's; and WHEREAS, the Miami Beach Convention Center was the site of the famous Muhammad Ali versus Sonny Liston fight on February 25, 1964, but the sport of boxing changed and the additional costs to produce a boxing event at the Convention Center made it financially difficult to produce a boxing event at the venue; and WHEREAS, following two successful boxing matches at the Fontainebleau Resort, the City began discussions with Ricardo (Rick) DeCubas of Decubas Presents, LLC to see if boxing could be brought back to the Miami Beach Convention Center; and WHEREAS, Decubas Presents, LLC is a nationally known boxing promotional company that stages major professional boxing events throughout the U.S. and around the world. DeCubas Presents was founded by Dan Wise, Roberto Duran, and Luis DeCubas and is managed by Luis and Rick Decubas; and WHEREAS, the City and Decubas Presents were able to find seven (7) dates from April through October of 2010 that were not otherwise being used and those dates are being tentatively held for a series of "Friday Night Fights from the Miami Beach Convention Center"; and WHEREAS, the Administration believes it is in the best interest of the City to waive rent for this boxing series as these events will be held on dates the space at the Convention Center is available and, likely, would remain unused and the City would still generate revenue from concession sales as well as from additional resort tax and parking revenue; and WHEREAS, in exchange for the fee waivers, Decubas Presents has agreed to make the City of Miami Beach a Presenting Sponsor of the boxing series and will provide additional sponsorship benefits, including complementary tickets for the community. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commissioner authorize a waiver of the rental and broadcast license fees for the use of meeting rooms and exhibit hall space at the Miami Beach Convention Center in an amount projected to be approximately $100,000 for use by Decubas Presents, LLC for seven boxing events; and further authorizing the City Manager and City Clerk to execute a sponsorship agreement establishing the City's role and support. PASSED AND ADOPTED this ~3 day of Sti~aAry , 2010. ATT U CITY CLERK AS TO MAO FORM & LANGUAGE T:WGENDA\2010Uanuary 13\Consent\Boxing Rent Waiver RESO.doc t~ FO ELUTION ` (~ ~i ttorn Date COMMISSION ITEM SUMMARY Condensed Title: A Resolution authorizing the waiver of the rental fees and broadcast license fees for the use of meeting rooms and exhibit hall space at the Miami Beach Convention Center in an amount projected to be approximately $100,000 for use by DeCubas Presents, LLC for seven (7) boxing events; and further authorizing the City Manager and City Clerk to execute a s onsorshi a reement establishin the Ci 's role and su ort. Ke Intended Outcome Su orted: Maximize Miami Beach as a Brand Destination and Improve the Miami Beach Convention Center Supporting Data (Surveys, Environmental Scan, etc.): In the 2009 Community Satisfaction Survey, 69.2% of our residents strongly agree/agree that the tourism industry contributes to the quality of life and 13.3% indicated the Indust contributes "too little". Issue• Should the Mayor and City Commission adopt the Resolution and support a rent and broadcast license fee waiver in Item summa Boxing has a long history at the Miami Beach Convention Center. Prior to the construction of the James L. Knight Center and the Miami Arena, the Miami Beach Convention Center served as the principal venue for arena-type events in Miami- Dade County. The Miami Beach Convention Center was the site of the famous Muhammad Ali versus Sonny Liston fight on February 25, 1964. However, the sport of boxing changed with the advent of cable television and casino gaming. Unfortunately, the additional costs we incur that must be passed on to the promoters for additional set-up and production make our venue a secondary choice for these types of events. Following two successful boxing matches at the Fontainebleau Resort, Ricardo (Rick) DeCubas of Decubas Presents, LLC approached the City about the concept of bringing boxing back to the Miami Beach Convention Center. DeCubas Presents, LLC is a nationally known boxing promotional company that stages major professional boxing events throughout the U.S. and around the world. All fights are expected to be televised on ESPN Deportes, ESPN 2, CSI, Eurosport, HBO and Showtime, providing significant exposure to our City. The producer has requested that the City waive rental (and certain other) fees to assist in the production of an event that provides promotional opportunities for the City, in exchange for the City being a designated event sponsor. Considering that these events will be held on dates the space at the Convention Center is available and, likely, would remain unused, the Administration believes it is in the best interest of the City to waive rent and broadcast license rights for this boxing series, which are estimated to be approximately $100,000 for the seven (7) event series from April -October 2010. In exchange for the fee waivers, the City of Miami Beach would be designated a Presenting Sponsor of the boxing series. Among the benefits, the City will have the center ring mat position for the City's logo placement for all fights televised on CSI and Eurosport. The City will also have one light truss banner placement, the opening and closing of the televised show will include beauty shots and footage from Miami Beach, and they will share revenue (50/50 split) on any sponsorship the City obtains. Finally, the City will receive 150 complementary tickets for the community, which would typically go to the elderly, students, teachers or underprivileged members of the City. The Attached letter from Decubas Presents further details the sponsorship package. This series presents an opportunity to promote the destination, while generating foot traffic and revenue during certain slower (shoulder) months. THE ADMINISTRATION RECOMMENDS ADOPTING THE RESOLUTION. Adviso Board Recommendation: N/A Financial Information: Source of Amount Account Approved Funds: ~ 2 3 4 OBPI Total Financial Impact Summary: While the waiver impacts Convention Center revenues, the facility would earn concession revenue from the event. Additionally, attendees would likely spillover to Lincoln Road and other parts of the Cit before and after each event, which will enerate additional resort tax and Arkin revenue. City Clerk's Office Legislative Tracking: Sign-Offs• Departm~ t ' e or Assistant Ci na er City Ma ager MAS ,' HMF JMG I :WIitNUH\ZUIOW~TJ~!dP9 13~SefIL\tloxmg Kent Waiver SUMM.doc ~ ~ MIAMI BEACH U J U AGENDA ITEM C ~-~ DATE ~~~3-'~y m MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City C mission FROM: Jorge M. Gonzalez, City Manager DATE: January 13, 2010 SUBJECT: A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE WAIVER OF THE RENTAL FEES AND BROADCAST LICENSE FEES FOR THE USE OF MEETING ROOMS AND EXHIBIT HALL SPACE AT THE MIAMI BEACH CONVENTION CENTER IN AN AMOUNT PROJECTED TO BE APPROXIMATELY $100,000 FOR USE BY DECUBAS PRESENTS, LLC FOR SEVEN (7) BOXING EVENTS; AND FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE A SPONSORSHIP AGREEMENT ESTABLISHING THE CITY'S ROLE AND SUPPORT. ADMINISTRATION RECOMMENDATION: Adopt the resolution. BACKGROUND: As you know, boxing has a long history at the Miami Beach Convention Center. Priorto the construction of the James L. Knight Center and the Miami Arena, the Miami Beach Convention Center served as the principal venue for arena-type events in Miami-Dade County. Our Halls C & D, formerly known as South and North Halls respectively, hosted many boxing and wrestling events as well as circuses and concerts, dating back to the 1950's. However, due to the proliferation of more traditional arena-type venues, these facilities have presented much more viable options for these types of events. The Miami Beach Convention Center was the site of the famous Muhammad Ali versus Sonny Liston fight on February 25, 1964. Liston defended his title against Cassius Clay (later known as Muhammad Ali), and Clay was declared the winner by technical knockout. This was his first Heavyweight Championship of the World. The day after the fight, Clay announced that he was changing his name to Cassius X, adopting the name Muhammed Ali the following week. Subsequently, on July 29, 1991, Hall C was rededicated as the Muhammad Ali Hall of Champions. The Center was also a regular stop for Championship Wrestling. However, the sport of boxing changed with the advent of cable television and casino gaming. The revenues generated by casinos help to subsidize the mega-fights; virtually all are held in Las Vegas, Atlantic City, and other gaming destinations with the revenues to finance these endeavors. Even in minor casino destinations, i.e. the Miccosukee and Seminole Gaming facilities in South Florida, those gaming entities are able to subsidize events in a way in which the City has not be able to. The cable TV networks have also helped to subsidize the lesser fights, with networks like USA and ESPN creating events in smaller venues that are geared much more toward television than to live crowds. Unfortunately, the additional costs we incur that must be passed on to the promoters for additional set-up and production make our venue a secondary choice for these types of events. January 13, 2010 City Commission Meeting Boxing at the Miami Beach Convention Center Page 2 of 3 Following two successful boxing matches at the Fontainebleau Resort, Ricardo (Rick) DeCubas of Decubas Presents, LLC, the producer, approached the City (Commissioner Wolfson's Office) about our interested in partnering to bring boxing back to the Miami Beach Convention Center. They were referred to our office and we have had an opportunity to review the proposal. DeCubas Presents, LLC is a nationally known boxing promotional company that stages major professional boxing events throughout the U.S. and around the world. DeCubas Presents was founded by Dan Wise, Roberto Duran, and Luis Decubas, and is managed by Luis and Rick DeCubas. DeCubas Presents currently has 17 fighters under contract, which include former Olympians and amateur champions. Following an initial meeting and tour of the Miami Beach Convention Centerwith Decubas Presents, both parties believe it is feasible to develop a boxing series from the Convention Center. Global Spectrum, along with the Tourism and Cultural Development Department, were able to find seven (7) dates from April through October of 2010 that were not otherwise being used. Those dates are being tentatively held for a series of Friday night fights from the Miami Beach Convention Center. DeCubas Presents believes they can attract approximately 2,500 spectators for each event initially, with a potential to increase the number as the series becomes better established and recognized. These fights are expected to be televised on one or more of the following national and international media outlets: • ESPN 2: 98 million homes • ESPN Deportes: 14 million homes • CSI (US Syndicated TV): 49 million homes • Eurosport: 120 million homes throughout Europe • Showtime: 13 million subscribers • HBO: 50 countries and reach over 22 million subscribers As previously mentioned, the costs to the promoter for set-up, breakdown and other production elements make it financially difficult to produce a boxing event, let alone a series, from the Convention Center. The producer has requested that the City waive rental (and certain other) fees to assist in the production of an event that provides promotional opportunities for the City, in exchange for the City being a designated event sponsor. Considering that these events will be held on dates the space at the Convention Center is available and, likely, would remain unused, the Administration believes it is in the best interest of the City to waive rent and broadcast license rights for this boxing series. Rent ($91,000) and broadcast license fees ($9,000) are estimated to be approximately $100,000 for the seven (7) event series. Additionally, the City has identified $25,000 from the targeted initiatives set aside in our agreement with the Greater Miami Convention and Visitors Bureau. The City and the Convention Center would still generate revenue from concession sales. Additionally, attendees would likely spillover to Lincoln Road and other parts of the City before and after each event, which will generate additional resort tax and parking revenue. Moreover, in exchange for the fee waivers and funding, the City of Miami Beach will be designated a "Presenting Sponsor" of the boxing series. Among the benefits, the City will have the center ring mat position for the City's logo placement for all fights televised on CSI and Eurosport. The City will also have one light truss banner placement (for all fights televised on ESPN Deportes, ESPN 2, CSI, Eurosport, HBO and Showtime), the opening and closing of the televised show will include beauty shots and footage from Miami Beach, and they will share revenue (50/50 split) on any sponsorship the City obtains. Finally, the City will receive 150 complementary tickets for the community, which would typically go to the elderly, students, teachers or underprivileged members of the City. The Attached letter from Decubas Presents further details the proposed sponsorship package. January 13, 2010 City Commission Meeting Boxing at the Miami Beach Convention Center Page 3 of 3 CONCLUSION: This series presents an opportunity to promote the destination, while generating foot traffic and revenue during certain slower (shoulder) months. Therefore, the Administration recommends the City Commission adopt the attached Resolution supporting this effort. The Administration will then negotiate our sponsorship agreement. JMG/HMF/mas T:WGENDA\2010Wanuary 13\Consent\Boxing Rent Waiver Memo.doc Jan 07 10 09:59a SRMIR January 6, 2010 Jorge M. Gonzalez, City Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, FL 33139 RE: Boxing Series MBCC Dear Mx. Gonzalez: 3058292490 We would like to thank the City for the opportunity to present a boxing series for the MBCC. As you know Boxing and Miami Beach have been a marriage that has had historic significance. Some of the greatest boxing legends from Cassius Clay, Sonny Liston, Jake La Mona, Sugaz Ray Robinson, and Roberto Duran to name a few have all battled in the halls of the Convention Center. De Cuban Presents, LLC is proposing to revive the great marriage of boxing and Miami Beach via a 4 to 7 fight series that would take place once a month starting as early as April 16`~ and ending on October 22"x' These fights would all be televised through one of the following media outlets: ESPN2 98 Million Homes, ESPN Deportes 14 Million Homes, CSI (US syndicated T~ into 49 Million Homes), Showtime, HBO, and EwroSpaxt (120 Million Homes throughout Europe). What we could offer the city of Mianu Beach would be: • Concession revenue on all events • Parking Revenues • Average Attendance of 2500 people • Provide traffic to Lincoln Road • Media Impressions via Press Conferences, Press, and Advertising Campaigns • SO/50 Revenue Split on sponsors provided by the city or convention center • Center Ring mat position (CSI and EuroSport Only) • One Light Truss Banner (Main Garners view} ESPN2, ESPN Deportes, CSI, Eurosport, HBO, and Showtime + Presenting Sponsor "Presented by the City of Miami Beach" • Opening and Closing on Televised show • 150 Comp Tickets for the Community p.2 Jan 07 10 09:59a SRMIR 3058292490 p.3 We strongly feel that through boxing the City of Miami Beach can beneSt tremendously by receiving exposure through media outlets that have a National and Internarional reach., which in turn should help increase tourism and visibility. Let's bring back the great tradition of boxing back to Miami Beach where it belongs. Sin iy, Ricardo DeCubas DeCubas Presents, LLC Member Cc: George Perez Cc: Hilda M. Fernandez, Asst. City Manager Cc: Maas Sklar, Director Cc: Jonah Wolfson, City Commissioner Jan 07 10 09:59a SRMIR 3058292490 p.4 Manasement Team: Luis De Cubes Managing Member • 27 years Experience in Fmfessional Boxing Business • Has promoted or managed over 10 World Champions, including Roberto Duran, Wilfredo Gomez, Robert Daniel, Yuriorlcis Gamboa and Joel Casamayor. • Promoted/Produced over 200 live fight events on HBO, Showtime, ESPN, Fox Sports, Telemundo, and Univision. • Promoted Fights in major casinos and arenas including, MSG, MGM, Mirage, Caesars Palace, Trump Atlantic City, Target Center, Aladdin Las Vegas, Mandalay Bay, Bay St. Louis Mississippi. Ricardo De Cubes Managing Member • Represented World Wrestling Entertainment in Central, South America & Caribbean. • Created first ever W WE Events in Dominican Republic ,Panama ,and Guatemala . • In 2008 bringing WWE to Columbia, Costa Rica, Chile, and Peru. • Professional Boxing Promoter/Maaager/Trainer for 22 years. • Worked directly with Roberto Duran, Mike Tyson, Wilfredo Gomez. • Created first fighter/promotions agreement with major Las Vegas Casino {MGM). • Pmmoted/produced over 25 major concerts with Spanish Broadcasting System including Gilberto Santa Rosa, Celia Cruz, Victor Manuel, and Tito Puente.