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2011-27640 Reso RESOLUTION NO. 2011 -27640 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AMENDMENT NO. 2 TO THE MANAGEMENT AGREEMENT BETWEEN THE CITY AND LIVE NATION WORLDWIDE, INC., DATED JUNE 22, 2007, FOR THE JACKIE GLEASON THEATER OF THE PERFORMING ARTS (NOW KNOWN AS THE FILLMORE MIAMI BEACH AT THE JACKIE GLEASON THEATER); SAID AMENDMENT ALLOWING FOR LIVE NATION TO CONTINUE TO BE PERMITTED TO EXTEND HOURS OF OPERATION AND LIQUOR SALES, SUBJECT TO COMPLIANCE WITH CERTAIN CONDITIONS, AND FURTHER AUTHORIZING THE CITY MANAGER TO ADMINISTRATIVELY APPROVE FUTURE REQUESTS FOR SUCH EXTENSION OF HOURS AND LIQUOR SALES, CONSISTENT WITH SUCH CONDITIONS. WHEREAS, on June 22, 2007, the City entered into an Agreement with Live Nation Worldwide, Inc. (Live Nation) to manage the Jackie Gleason Theater of the Performing Arts (now named and known as the Fillmore Miami Beach at the Jackie Gleason Theater) (the Venue), with an initial term of ten (10) years, commencing on June 22, 2007, and ending on August 31, 2017 (the Agreement), and WHEREAS, Section 2.1(b) of the Agreement restricts Live Nation from serving food or beverages after midnight; and WHEREAS, Live Nation requested an amendment to the aforestated food and beverage restriction, as there were a number of potential events it was unable to book (due to this restriction); and WHEREAS, on December 9, 2009, the City Commission adopted Resolution No. 2009- 27278, approving Amendment No. 1 to the Agreement, which permitted Live Nation to extend hours of operation and liquor sales at the Venue for a trial period (12 months), subject to certain conditions; and WHEREAS, the trial period expired on December 31, 2010, and Live Nation has requested that it be extended, and /or otherwise continue to be permitted; and WHEREAS, the Administration recommends that the City Commission now approve Amendment No. 2 to the Agreement, which would continue to permit Live Nation to extend hours of operation and liquor sales at the Venue, subject to the conditions below, and would further authorize the City Manager to administratively approve such requests in the future; again, subject to the following conditions: 1. Any sale, distribution, and or service of food and beverages, including alcohol, at the Venue shall cease at no later than 2:00 AM. 2. The Venue will be closed to the public no later than 3:00 AM; accordingly, all patrons within the Venue should also leave by 3:00 AM. 3. No DJ -only performances shall be allowed for the extended hours. 4. Live Nation shall provide the City Manager or his /her authorized designee with a written status report following each event in which permission to serve alcohol after midnight has been granted. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve and authorize the Mayor and City Clerk to execute Amendment No.2 to the Agreement between the City and Live Nation Worldwide, Inc., dated June 22, 2007, for the Jackie Gleason Theater of the Performing Arts (now knows as the Fillmore Miami Beach at the Jackie Gleason Theater); said Amendment continuing to permit the extension of the hours of operation and liquor sales, subject to Live Nation's compliance with certain conditions, as set forth in the Amendment, and further authorizing the City Manager to approve future requests for extension of hours and liquor sales, consistent with such conditions. PASSED AND ADOPTED this 13th day of April, 2011. . ,/ k i i& Attest: M ',.t9I,Luik C'etkett,, CITY CLERK T:\AGENDA\2011 \4 -13 -11 \Live Nation Amendment No 2 Reso.doc APPROVED AS TO FORM & LANGUAGE & FO = ECUTION uV � J ' ttorne i a COMMISSION ITEM SUMMARY Condensed Title: A Resolution approving Amendment No.2 to the Agreement with City of Miami Beach and Live Nation Worldwide, Inc., dated June 22, 2007, for the Jackie Gleason Theater of the Performing Arts allowing for a trial period where Live Nation would be permitted to extend hours of operation and liquor sales with certain conditions, and further authorize the City Manager to approve future amendments allowing the extension of hours consistent with the conditions of the attached Amendment. Key Intended Outcome Supported: Maximize Miami Beach as a Destination Brand Supporting Data (Surveys, Environmental Scan, etc.): The 2009 Community Satisfaction Survey reported more than one -fifth of all resident respondents feel there are "too few" family friendly activities (24.6 %) and cultural activities (24.1%). Additionally, on average, residents attended 10.61 cultural activities per year and 7.19 family friendly activities per year. Issue: I Should the City allow for an additional twelve (12) month trial period for Live Nation to host events and sell alcohol past midnight? Item Summary /Recommendation: On May 16, 2007, the City Commission adopted Resolution No. 2007 -26548 authorizing the City Administration to execute a Management Agreement with Live Nation for the Fillmore Miami Beach at the Jackie Gleason Theater. The Management Agreement with Live Nation was executed on Friday, June 22, 2007. The Term of the Agreement is 10 Years, with one 5 -year renewal option at the discretion of Live Nation. There is a second 5 -year renewal option upon mutual agreement. The initial Term began on Thursday, June 21, 2007 and ends on August 31, 2017. Live Nation requested an amendment to the food and beverage restriction in place in the Agreement for a maximum of twelve (12) events per calendar year. Section 2.2(b) restricts Live Nation from selling, distributing, or serving food and/or beverages after midnight. As you may know, this provision was included in the agreement to address concerns raised by the nightlife industry at the time. This request was considered by the Finance and Citywide Projects Committee and the Nightlife Industry Task Force (NITE) in a series of meeting in late 2008 and 2009. Subsequently, The City Commission adopted Resolution No. 2009 -27278 on December 9, 2009 approving Amendment No. 1 to the Management Agreement. On August 17, 2010, the NITE Task Force met and discussed the progress of the aforementioned Amendment. Live Nation advised NITE that, to date, they have been unable to book any events during the trial period that required the extension of hours as defined in the Amendment. However, Live Nation requested another year trial period. NITE agreed that another year for the trial was warranted and recommended in favor of another amendment. The following summarizes the proposed trial program: 1. Any sale, distribution, and or service of food and beverages, including alcohol, at the Venue shall cease at no later than 2:00 AM. 2. The Venue will be closed to the public no later than 3:00 AM; all patrons within the Venue should also leave by 3:00 AM. 3. No DJ -only performances shall be allowed for the extended hours. 4. "Blackout" dates for the trial period are New Years Eve and five days of the Winter Music Conference normally held the last week in March. 5. The trial events will not count toward the annual contractually required number of events. It is recommended that the Commission approve the trial program. Advisory Board Recommendation: The NITE Task Force met on August 17, 2010 and agreed that another year for the trial was warranted and recommended in favor of another amendment. Financial Information: Source of Funds: Amount Account 1 OBPI Total City Clerk's Office Legislative Tracking: Max Sklar, Tourism and Cultural Development Director Sign -Offs: Department Director AA an ity - ager , City Manager T:WGENDA\2011 \4 -13 -11 \Live Nation Amendment No 2 Summ...c miAmIBEAcH AGENDA ITEM C 70 DATE 9 /3 // Cr) 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 Commission FROM: Jorge M. Gonzalez, City Manager DATE: April 13, 2011 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AMENDMENT NO. 2 TO THE MANAGEMENT AGREEMENT BETWEEN THE CITY AND LIVE NATION WORLDWIDE, INC., DATED JUNE 22, 2007, FOR THE JACKIE GLEASON THEATER OF THE PERFORMING ARTS (NOW KNOWN AS THE FILLMORE MIAMI BEACH AT THE JACKIE GLEASON THEATER); SAID AMENDMENT ALLOWING FOR LIVE NATION TO CONTINUE TO BE PERMITTED TO EXTEND HOURS OF OPERATION AND LIQUOR SALES, SUBJECT TO COMPLIANCE WITH CERTAIN CONDITIONS, AND FURTHER AUTHORIZING THE CITY MANAGER TO ADMINISTRATIVELY APPROVE FUTURE REQUESTS FOR SUCH EXTENSION OF HOURS AND LIQUOR SALES, CONSISTENT WITH SUCH CONDITIONS. ADMINISTRATION RECOMMENDATION Adopt the resolution. ANALYSIS On May 16, 2007, the City Commission adopted Resolution No. 2007 -26548 authorizing the City Administration to execute a Management Agreement with Live Nation for the Fillmore Miami Beach at the Jackie Gleason Theater. The Management Agreement with Live Nation was executed on Friday, June 22, 2007. The Term of the Agreement is 10 Years, with one 5 -year renewal option at the discretion of Live Nation. There is a second 5 -year renewal option upon mutual agreement. The initial Term began on Thursday, June 21, 2007 and ends on August 31, 2017. Following a $3.5 million renovation, Live Nation opened the venue in October 2007 with Ricky Martin. Live Nation continues to book the venue for a variety of entertainment. A discussion item was placed on the September 10, 2008 Commission agenda regarding the variety and number of events being booked by Live Nation at the Venue. During the discussion of the aforementioned item, a desire was expressed to see more events at the venue with a greater variety in the type of events. Following the September 10, 2008, City Commission meeting, Live Nation requested an amendment to the food and beverage restriction in place in the Agreement. Section 2.2(b) restricts Live Nation from selling, distributing, or serving food and /or beverages after midnight. As you may know, this provision was included in the agreement to address concerns raised by the nightlife industry at the time. Live Nation has advised us that there have been a number of potential events that they have been unable to book due to this restriction. For example, events with two performances in one night would have the second performance impacted. Live Nation originally requested the ability to host events and sell food and /or beverages after midnight, including alcoholic beverages, for a maximum of twelve (12) events during a trial period. Live Nation Amendment April 13, 2011 City Commission Meeting Page 2 of 2 This request was considered by the Finance and Citywide Projects Committee and the Nightlife Industry Task Force (NITE) in a series of meeting in late 2008 and 2009. Subsequently, The City Commission adopted Resolution No. 2009 -27278 on December 9, 2009 approving Amendment No. 1 to the Management Agreement. This amendment permitted Live Nation to extend hours of operation and liquor sales at the Venue for a trial period, subject to the following conditions: 1. Any sale, distribution, and or service of food and beverages, including alcohol, at the Venue shall cease at no later than 2:00 AM. 2. The Venue will be closed to the public no later than 3:00 AM; accordingly, all patrons within the Venue should also leave by 3:00 AM. 3. No DJ -only performances shall be allowed for the extended hours. 4. Live Nation shall provide the City Manager or his /her authorized designee with a written progress report halfway through the trial period, or July 1, 2010. On August 17, 2010, the NITE Task Force met and discussed the progress of the aforementioned Amendment. Live Nation advised NITE that, to date, they have been unable to book any events during the trial period that required the extension of hours as defined in the Amendment. However, Live Nation requested another year trial period. NITE agreed that another year for the trial was warranted and recommended in favor of another amendment. It is important to note that Live Nation is a live entertainment promoter and has publicly maintained that they are not interested in operating the Fillmore as a nightclub. As you may know, they have operated the Fillmore at a loss for 2008, 2009 and 2010. They continue to look at opportunities to build their business and the removal of this restriction provides them with additional opportunities. Due to other projects, the aforementioned Amendment was never formally memorialized. At that time, the intent was to take the amendment directly to the Commission for consideration. Live Nation and the City recently completed drafting the attached Amendment No. 2 to the Management Agreement for the Fillmore Miami Beach at the Jackie Gleason Theater (formerly the Jackie Gleason Theater of Performing Arts) and are presenting the Amendment to the City Commission for consideration. The Administration is placing this item directly on the City Commission agenda for consideration instead of taking it back to the Finance and Citywide Projects Committee to expedite the potential approval. Additionally, the Administration is recommending that the City Manager be authorized to approve future amendments for this specific use only and consistent with the conditions approved by the City Commission. This would be subject to annual review to ensure compliance with the established conditions. Any deviation from the approved conditions would require further review and approval from the City Commission. CONCLUSION The Administration recommends the adoption of the attached Amendment No. 2 to the Agreement between the City of Miami Beach and Live Nation Worldwide, Inc., dated June 22, 2007, for the Jackie Gleason Theater of the Performing Arts. At the end of the trial period, Staff will assess whether there have been any issues or concerns related to the extended hours for alcoholic beverage sales. The City Manager would be authorized to approve future amendments consistent with conditions in the attached Amendment. JMG /HMF /MAS T:\AGENDA\2011\4 -13 -11 \Live Nation Amendment No 2 Memo.doc