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2011-27725 Reso RESOLUTION NO. 2011 - 27725 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ACCEPTANCE OF A TOTAL OF THIRTY -THREE THOUSAND DOLLARS ($33,000) IN CASH AND IN -KIND DONATIONS FROM THE SPONSORS SET FORTH IN THIS RESOLUTION, MADE TO THE CITY FOR SLEEPLESS NIGHT 2011, A FREE CITYWIDE ARTS AND CULTURAL EVENT; AND FURTHER APPROPRIATING SAID FUNDS FOR SLEEPLESS NIGHT; AND ALSO ACCEPTING AND APPROPRIATING FUTURE DONATIONS FOR THIS PURPOSE; AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO MAKE SUCH EXPENDITURES AND /OR REIMBURSEMENTS FROM THE AFORESTATED DONATIONS, IN FURTHERANCE OF AND CONSISTENT WITH THE AFORESTATED EVENT. WHEREAS, in 2007, the City produced the first Sleepless Night, an all- night, free, citywide celebration of the arts, presented by the City of Miami Beach Tourism and Cultural Development (TCD) Department and Cultural Arts Council (CAC); and WHEREAS, "Sleepless Night" is a collaboration of all of the City's major cultural institutions, theaters, galleries and arts organizations, along with hotels, shops, clubs, restaurants, and individual artists and presenters; and WHEREAS, the event includes indoor and outdoor art exhibits, installations, performances, fashion shows, tours, dance, theater, music, film and other cultural offerings, all presented without admission charge; and WHEREAS, in furtherance of Sleepless Night 2011, to be held on November 5, 2011, the following entities have made Donations to the City, totaling $33,000 in cash and in -kind services, and shall be recognized as sponsors of "Sleepless Night" 2011: o Catalina Hotel and Beach Club (Host Hotel); o Classical 89.7; o Ford; o Monster Energy Drink; and WHEREAS, it is hereby recommended that the Mayor and City Commission accept the aforestated donations on behalf of the City for Sleepless Night 2011, and that the City Manager be further authorized to accept future sponsorships on behalf of the City (which may be made following the effective date of this Resolution) in furtherance of "Sleepless Night" 2011; and WHEREAS, it is further recommended that the Mayor and City Commission hereby authorize the City Manager or his designee to make any necessary reimbursements and /or expenditures of the aforestated donations, as well as future donations, in furtherance of and consistent with the aforestated "Sleepless Night" 2011 event. NOW THEREFORE, BE IT DULY RESOLVED BY THE E MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby authorizes the acceptance of a total of thirty -three thousand dollars ($33,000) in cash and in -kind donations from the sponsors set forth in this resolution, made to the City for Sleepless Night 2011, a free citywide arts and p 9 y nd cultural event; and further appropriating said funds for Sleepless Night; and also accepting and appropriating future donations for this purpose; and authorizing the City Manager or his designee to make such expenditures and /or reimbursements from the aforestated donations, in furtherance of and consistent with the aforestated event. PASSED and ADOPTED this /L/41 day of 50(164‘c , 2011. ATTEST: • 0'01 / • .6e41 1?-6 AYOR Lu CITY CLERK T:\AGENDA\2011 \9- 14 -11\ Sleepless .. 4 Vpotsdrt ;4 = stance RESO.doc • %P I" s * INCORP ORATED' * 8 V s Qp r. 4� ... ... �; APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION . 1'0 i /7 tom f ate • COMMISSION ITEM SUMMARY Condensed Title: A Resolution authorizing the acceptance of thirty -three thousand dollars in cash and in -kind donations (including sponsorships) made to the City for Sleepless Night 2011 a free citywide arts and cultural event; and further y p g yw appropriating said funds for Sleepless Night; and accepting and appropriating future donations for this purpose; and authorizing the City Manager or his designee to make such expenditures and /or reimbursements from the aforestated donations, in furtherance of and consistent with the aforestated event. Key Intended Outcome Supported: Increase community ratings of cultural activities. 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: Should the City accept sponsorships for Sleepless Night? Item Summary /Recommendation: In 2007, The City produced the first Sleepless Night, an all- night, FREE, citywide celebration of the arts, presented by the City of Miami Beach Tourism and Cultural Development (TCD) Department and Cultural Arts Council (CAC). This innovative citywide showcase of culture first began internationally when Paris hosted the first "Nuit Blanche" event in 2002. Sleepless Night 2007 provided guaranteed audiences for artists and arts institutions (many of them local), allowing them to expand their reach and capacities; introduced tens of thousands of people to new artists and art forms; and, very importantly, provided over 100,000 customers to Miami Beach businesses. The 2009 event once again exceeded expectations. Approximately 130,000 residents and visitors (30,000 more than we had in 2007, according to City estimates) enjoyed 150 free cultural offerings at 80 locations spread throughout the city and the 13 -hour night. The event provided direct employment to 400 artists and technicians. In 2009 our host hotel, the Catalina Hotel and Beach Club, and its sister properties in the South Beach Hotel Group, were completely sold out; the Catalina alone counted 1,053 room nights for the event. Occupancy rates citywide were down 1.7% Friday, November 6 and 2% Saturday, November 7 (compared to the same weekend in 2008). However, the previous weekend (October 30 and 31) occupancy was down 12.7% Friday and 9.9% Saturday, and the weekend following Sleepless Night (November 13 and 14) occupancy was down 4.9% Friday and 11.4% Saturday. These lower occupancy rates, attributable to the sluggish economy as well as to the huge increase in numbers of available rooms, nevertheless show measurable improvement - as much as 9.4% - due to Sleepless Night. The event's strong publicity value is also measureable. Even using the lowest national industry valuation of 23 cents per impression, Sleepless Night's 919,153,810 media impressions garnered the city $211,405,376 in marketing value to promote Miami Beach as a cultural destination. The $123,611 actually spent on marketing the event bought $1,369,424 in dollar value advertising, including $989,075 in 30- second television spots on Comcast and Atlantic Broadband channels. On November 29, 2010, the Knight Foundation awarded the City a $200,000 matching grant for Sleepless Night 2011 and 2012 ($100,000 in each year). The grant was one of only 27 proposals funded out of more than 950 applicants, and was the third largest grant awarded in that year's program. To date, the City has secured sponsorships totaling $33,000 in cash from Ford, New York Times, Classical South Florida and Monster Energy Drink. Advisory Board Recommendation: N/A Financial Information: Source of Funds: Amount Account 1 OBPI Total Financial Impact Summary: These sponsors are providing a total of $33,000 in funding and in -kind contributions to offset the costs for Sleepless Night. City Clerk's Office Legislative Tracking: Max Sklar, Tourism and Cultural Development Director Si • n -Offs: D : ZIEM D ector Assistant City Manager City Manager • T.WG3 NA\2011 • - - -11 \Sleepless Night Spo orship Acceptance Summ.doc • Oar T AGENDA ITEM 6 7 Nor MIAMI DATE 7-/V-// a_4 MIAMI BEACH 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 y Commission FROM: Jorge M. Gonzalez, City Manager DATE: September 14, 2011 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ACCEPTANCE OF THIRTY - THREE THOUSAND DOLLARS ($33,000) IN CASH AND IN -KIND DONATIONS (INCLUDING SPONSORSHIPS) MADE TO THE CITY FOR SLEEPLESS NIGHT 2011, A FREE CITYWIDE ARTS AND CULTURAL EVENT; AND FURTHER APPROPRIATING SAID FUNDS FOR SLEEPLESS NIGHT; AND ACCEPTING AND APPROPRIATING FUTURE DONATIONS FOR THIS PURPOSE; AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO MAKE SUCH EXPENDITURES AND /OR REIMBURSEMENTS FROM THE AFORESTATED DONATIONS, IN FURTHERANCE OF AND CONSISTENT WITH THE AFORESTATED EVENT. ADMINISTRATION RECOMMENDATION Adopt the resolution. ANALYSIS In 2009, the City presented the second edition of Sleepless Night, the all- night, free, citywide celebration of the arts, presented by the Department of Tourism and Cultural Development (TCD) and Cultural Arts Council (CAC.) The event was produced in -house by TCD staff in response to the 2005 and 2007 Community Satisfaction Surveys in which residents expressed their desire for more free cultural activities. The third edition of Sleepless Night is scheduled for November 5, 2011. The idea for Sleepless Night grew from our desire to offset any impact from the opening of the Arsht Center in downtown Miami. Prior to the Center's opening, our Jackie Gleason Theater of the Performing Arts was the county's venue of choice for Broadway road shows, opera, ballet, and major classical music concerts. Most of those bookings and their accompanying economic impact were lost with the opening of the Arsht Center, which resulted in the City pursuing other options for the facility. As you know, Live Nation was competitively selected to manage the Gleason. Sleepless Night was created by the CAC (which counts cultural marketing as one of its primary concerns) to restore confidence in the city's commitment to the arts and to strengthen our reputation as the region's prime cultural tourism destination. The highly successful international Nuit Blanche model (which first appeared in Paris in 2002) was chosen because it offered the opportunity to reach all of the diverse populations of South Florida, and to create community by removing the barriers that often disenfranchise some segments of the population. Additionally, Nuit Blanche had been triumphant at addressing Sleepless Night September 14, 2011 City Commission Meeting Page 2 of 4 Florida, and to create community by removing the barriers that oftendisenfranchise some segments of the population. Additionally, Nuit Blanche had been triumphant at addressing the ultimate issue facing the arts today, audience - building, by engaging the public with a wide range of cultural presentations woven into the fabric of a social event. Similar events are held in other major international cities, including Madrid, Rome, Paris and Montreal, to name a few. Sleepless Night 2007 Sleepless Night 2007 provided guaranteed audiences for artists and arts institutions (many of them local), allowing them to expand their reach and capacities; introduced tens of thousands of people to new artists and art forms; and, very importantly, provided over 100,000 customers to Miami Beach businesses. The event created a tremendous amount of civic pride, a shared sense of community, and positive, constructive opportunities for youth. It also created a dream destination for the cultural tourist, who for the price of airfare and a hotel room, could choose from over 100 free, first -class performances and exhibitions. Businesses reported increased activity. The Sleepless Night 2007 event was funded by a combination of grants (Miami Beach VCA); CAC funds; City marketing funds; Greater Miami Convention and Visitors Bureau funds; and corporate sponsors (Bustelo, Springbac Drink, etc.). The total event budget was $396,000, and a priority was placed on marketing the event to attract visitors (local, national and international). Sleepless Night 2009 The 2009 event once again exceeded expectations. Approximately 130,000 residents and visitors (30,000 more than we had in 2007, according to City estimates) enjoyed 150 free cultural offerings at 80 locations spread throughout the city and the 13 -hour night. The event provided direct employment to 400 artists and technicians. All of the city's cultural institutions, theaters, galleries and arts organizations, along with many restaurants, hotels, shops and clubs, collaborated with us to present outstanding local, national and international artists. An increased number of free shuttle buses with onboard arts programming once again connected the four main zones of activity (North Beach, Collins Park, Lincoln Road/City Center and Ocean Drive) and remote parking ) p 9 locations for the duration of the event. Included were free museum admissions, indoor and outdoor art and sound installations and performances, architectural tours, theater, dance, music, slam poetry, film, video, fashion, circus acts, comedy and more. All of the indoor events, which included children's shows, full- length plays in Spanish and in English, music and dance concerts and comedy, played to capacity crowds and received standing ovations. An increased number of outdoor events assured availability of quality arts experiences for all. The programming was designed to appeal to every audience, from pre - schoolers to seniors; because it covered the entire spectrum of arts and entertainment, it appealed to all ages, ethnicities, and socioeconomic and education levels. The 2009 event had a budget of $685,000. Funding was provided through grants (from the National Endowment for the Arts, the Knight Foundation, the State of Florida, and the Miami - Dade Tourist Development Council); the GMCVB; the Miami Beach VCA; City marketing funds and corporate sponsors (Audi, Red Bull, Classical South Florida Radio, Bustelo and Ocean Drive Association). Once again, funds were budgeted to market the event locally, nationally and internationally. In addition to the 30% increase in total attendance, Sleepless Night 2009 garnered nearly a billion positive media impressions for Miami Beach and enabled many Miami Beach businesses to achieve record - breaking sales figures for the night. Sleepless Night ht g September 14, 2011 City Commission Meeting Page 3 of 4 EVENT IMPACT Sleepless Night was intended to provide an economic impact to the City in the normally slow first week of November. According to the study "Arts & Economic Prosperity: The Economic Impact of Nonprofit Arts Organizations and Their Audiences in the City of Miami Beach," commissioned by the Miami -Dade Department of Cultural Affairs and the City's Cultural Affairs Program and conducted by Americans for the Arts, "All nonprofit arts attendees" [ "all" referring to residents and non - residents]" spend an average of $46.96 per person (not including the cost of admission)" Thus, roughly $6,104,000 in dollars spent can be directly attributed to the 130,000 Sleepless Night attendees. Further, the first Sleepless Night (2007) fueled a 12.4% increase in hotel occupancy over the same day in the previous year, as well as a 4% increase in Average Daily Rate and a 16.9% increase in Revenue per Available Room. In 2009 our host hotel, the Catalina Hotel and Beach Club, and its sister properties in the South Beach Hotel Group, were completely sold out; the Catalina alone counted 1,053 room nights for the event. Occupancy rates citywide were down 1.7% on Friday, November 6 and 2% on Saturday, November 7 (compared to the same weekend in 2008). However, the previous weekend (October 30 and 31), occupancy was down 12.7% (Friday) and 9.9% (Saturday), and the weekend following Sleepless Night (November 13 and 14) occupancy was down 4.9% (Friday) and 11.4% (Saturday). These lower occupancy rates, attributable to the sluggish economy as well as to the huge increase in numbers of available rooms, nevertheless show measurable improvement - as much as 9.4% - due to Sleepless Night. The event's strong publicity value is also measureable. Even using the lowest national industry valuation of 23 cents per impression, Sleepless Night's 919,153,810 media impressions garnered the city $211,405,376 in marketing value to promote Miami Beach as a cultural destination. The $123,611 actually spent on marketing the event bought $1,369,424 in dollar value advertising, including $989,075 in 30- second television spots on Comcast and Atlantic Broadband channels. FUNDING As previously noted, the vast majority of funding for Sleepless Night is from outside sources. The 2009 event was one of only 31 projects (out of more than a thousand applications) funded in the Knight Foundation's highly competitive and prestigious Knight Arts Challenge. Knight, looking for arts projects "with the transformative power to create community," awarded Sleepless Night 2009 a $150,000 matching grant. Audi of America quickly jumped on board as title sponsor, and was joined by the National Endowment for the Arts, the State of Florida, Department of State, Division of Cultural Affairs and the Florida Arts Council, Miami -Dade County Cultural Affairs Division, the Ocean Drive Association, Classical South Florida radio, the Miami Beach VCA, the GMCVB, Red Bull, Comcast, Whole Foods Market, Cafe Bustelo and others. On November 29, 2010, the Knight Foundation awarded the City a $200,000 matching grant for Sleepless Night 2011 and 2012 ($100,000 in each year). The grant was one of only 27 proposals funded out of more than 950 applicants, and was the third largest grant awarded in that year's program. To date, the City has secured sponsorships totaling $33,000 in cash from Ford, New York Times, Classical South Florida and Monster Energy Drink. In addition to the Knight Sleepless Night September 14, 2011 City Commission Meeting Page 4 of 4 pending grant applications with the VCA and Miami -Dade County. The City continues to negotiate with other potential sponsors. The projected budget is provided below. The event budget will be adjusted according to available funds, with reductions to artist fees, printing and marketing /advertising line items made as needed. PROJECTED REVENUE 2011 NOTES CMB - CAC Marketing Funds $ 94,000.00 VCA, NEA, State of Florida, Miami -Dade Grants $ 110,000.00 County Knight Foundation Grant $ 100,000.00 Year 1 of 2 GMCVB $ 150,000.00 Burger King, Ford, NYT, Classical South Corporate Sponsorships $ 33,000.00 Florida, Monster Other anticipated sponsorships $ 118,000.00 TOTAL INCOME $ 605,000.00 PROJECTED EXPENSES 2011 City Services $ 40,000.00 Fire, Police, Sanitation, Prop Mgmt Artist Fees, Festival Coordination, Technical Professional Services $ 305,000.00 Services, Shuttle Busses, Legal Production and Equipment Staging, Sound, Lights, Backline, Barricades, Rental $ 75,000.00 Banner Stands, Theatrical Expenses Printing Services $ 30,000.00 T- Shirts, Flyers, Programs, Posters Marketing and Advertising $ 135,000.00 Marketing, Advertising and Public Relations Artist Travel Expenses, ADA Other Operating Expenses $ 20,000.00 Accommodations, Misc. TOTAL EXPENSES $ 605,000.00 CONCLUSION Staff has worked diligently to identify funding sources to off -set the costs of producing this event that provides a spectacular cultural experience for our residents, and promotes the City as a cultural destination. The Administration recommends the adoption of the attached Resolution authorizing the acceptance of these donations, their appropriation to cover costs of Sleepless Night, as well as the acceptance and appropriation of future donations. JMG /HMF /MAS /GF T:\AGENDA\2011 \9 -14 -11 \Sleepless Night Sponsorship Acceptance Memo.doc