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2016-29287 Reso RESOLUTION NO. 2016-29287 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE TO ADOPT A RENTAL FEE WAIVER GRANT PROGRAM FOR THE COLONY THEATRE IN AN EFFORT TO INCENTIVIZE LIVE THEATER IN MIAMI BEACH, SAID PROGRAM TO BE FUNDED BY THE COMMUNITY BENEFIT FUND AND ADMINISTERED BY THE TOURISM, CULTURE AND ECONOMIC DEVELOPMENT DEPARTMENT, FOLLOWING REVIEW AND RECOMMENDATION BY THE MIAMI BEACH CULTURAL ARTS COUNCIL. WHEREAS, the Miami Beach Cultural Arts Council (CAC) was established by the Mayor and City Commission on March 5, 1997; and WHEREAS, the mission of the CAC is to develop, coordinate, and promote the visual and performing arts in the City of Miami Beach for the enjoyment, education, cultural enrichment and benefit of the residents of, and visitors to, 'Miami Beach; and WHEREAS, the Mayor and City Commission adopted the Cultural Arts Master Plan on June 3, 1998, identifying the following program areas for the CAC: cultural arts grants; marketing; facilities; advocacy and planning; and revenue development; and WHEREAS, the CAC recognizes the need to incentivize live theater in Miami Beach by offering a rental fee waiver grant program for the Colony Theatre; and WHEREAS, funding is available through the Community Benefit Fund, which is managed by the Tourism, Culture and Economic Development Department following review and recommendation by the CAC; and WHEREAS, the Finance and Citywide Projects Committee reviewed and approved said rental waiver grant program at its meeting on January 22, 2016. 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 adopt a rental fee waiver grant program for the Colony Theatre in an effort to incentivize live theater in Miami Beach, funded by the Community Benefit Fund and administered by the Tourism, Culture and Economic Development Department, following review and recommendation by the Miami Beach Cultural Arts Council. PASSED and ADOPTED THIS 10th day of February 2016. ATTEST: Md 2'117 40 , CITY CL _RK •°�„ �,��'4 A, T �• if ...• \i ..... .• 4. , i Z i . 10 - ORATED' 4 li-. N/ .-/c34 44 .1• .. ..' . ,\� 144 �C E 26 .4/ APPROVED AS TO • FORM&LAL GUAGE &FOR EC.UTIO atow.v.. tZ$ cV City Attorney Date T:\AGENDA\2016\February\TCED1Colony Theater Rental Grant Program\Colony Rental Fee Waiver Reso.doc COMMISSION ITEM SUMMARY Condensed Title: A Resolution Adopting A Rental Fee Waiver Grant Program For Live Theater At The Colony Theatre Funded By The Community Benefit Fund And Administered By TCED Following Review And _Recommendation By The CAC. Key Intended Outcome Supported: Maximize the Miami Beach Brand as a World Class Destination. Supporting Data (Surveys, Environmental Scan, etc.): Two out of three residents (65%) believed the City offered the right amount of cultural activities, while 30% said there were too few. The percentage of residents who believe there are too few cultural activities has increased from 24% in 2009 to 30% in 2014. Item Summary/Recommendation: At the December 9, 2015 Commission meeting, Commissioners Steinberg and Malakoff referred a discussion of how to incentivize local theater in Miami Beach to both the Cultural Arts Council (CAC) and the Finance and Citywide Projects Committee. This discussion was prompted by the announcement of a major new professional theater company, Miami New Drama, under the direction of multiple-award winning director and playwright Moises Kauffman and Michel Hausmann, and the challenges faced by its month-long run of The Golem of Havana, which opened on January 16, 2016. The subject was discussed at length by the CAC at its meeting on January 7, 2016. The FCWP Committee recommended that the Community Benefit Fund be made available to fund a new rental fee waiver program for the Colony Theatre in an effort to incentivize live theater productions in Miami Beach, said program to be administered by TCED following advisement from the CAC. The City will reevaluate the Community Benefit Fund after the first year of this new program to determine if any changes to the surcharge are required to maintain a positive balance in the fund. It is recommended that the City Commission adopt the grant program as indicated. Advisory Board Recommendation: The Cultural Arts Council approved the proposed grant program at its meeting on January 7, 2016. Financial Information: Source of Amount Account Approved F�di 1 1, 7 2 O Total Financial Impact Summary: Funding is available from the Community Benefit Fund for this p rY 9 Y grant program. 601-7000-229155 City Clerk's Office Legislative Tracking: Max A. Sklar, Tourism, Culture, and Economic Development Director Sign-Offs: Dep rtme t Director Assistant Cit Manager City Manager T:WGENDA\2016\February\TCED\Colony Theater Rental Grant Program\Colony Rental Fee Waiv r Sumr..'^^-— - -– - Agenda Item C 7/1 Date 2-/O-/G MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov COMMISSI I N MEMORANDUM TO: Mayor Philip Levine and Members o'the City Co III mission FROM: Jimmy L. Morales, City Manager , DATE: February 10, 2016 SUBJECT: A RESOLUTION OF THE MAYOR D CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEP ' NG THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE TO ADOPT A RENTAL FEE WAIVER GRANT PROGRAM FOR THE COLONY THEATRE IN AN EFFORT TO INCENTIVIZE LIVE THEATER IN MIAMI BEACH, SAID PROGRAM TO BE FUNDED BY THE COMMUNITY BENEFIT FUND AND ADMINISTERED BY THE TOURISM, CULTURE AND ECONOMIC DEVELOPMENT DEPARTMENT FOLLOWING REVIEW AND RECOMMENDATION BY THE MIAMI BEACH CULTURAL ARTS COUNCIL. ADMINISTRATION RECOMMENDATION Adopt the Resolution. FUNDING Funding is available through the Community Benefit Fund. 601-7000-229155 ANALYSIS At the December 9, 2015 Commission meeting, Commissioners Steinberg and Malakoff referred a discussion of how to incentivize local theater in Miami Beach to both the Cultural Arts Council (CAC)and the Finance and Citywide Projects Committee. This discussion was prompted by the announcement of a major new professional theater company, Miami New Drama, under the direction of multiple-award winning director and playwright Moises Kauffman and Michel Hausmann, and the challenges faced by its month-long run of The Golem of Havana,which opened on January 16, 2016. The subject was discussed at length . by the CAC at its meeting on January 7, 2016. This item was discussed at the January 22, 2016 Finance and Citywide Projects Committee meeting and was unanimously approved by the Committee members. The Committee also briefly discussed a CAC recommendation to transfer the management of the Colony to a professional resident theater company, and recommended further research and discussion. BACKGROUND The CAC has long lamented the dearth of live drama in Miami Beach. The City is home to the region's major ballet company, orchestra, art fair and museum; live theater is the missing component of the well-rounded cultural personality that sets Miami Beach apart from the rest of the region. In 2014 the CAC proposed engaging the various small local theater groups by adding an additional twelve Community Benefit Fund rent waivers at the Gleason Room at the Fillmore specifically earmarked for live theater, and developed a marketing plan and accompanying grants program to insure the effort's success. The plan was subsequently approved by the Mayor and Commission per Resolution No. 2014-28732. It has not been realized, however, because the increase in the number of rent waivers must be approved as part of the new contract between the City and Live Nation. The Community Benefit Fund at the Jackie Gleason Theater was established by Resolution No. 83-17447 to provide discounted show tickets to senior citizen and student residents. It is funded by a$1.50 surcharge on each ticket sold. The fund's purpose was further defined by Resolution No. 92-20454 to"present and promote performances, programs, shows and entertainment at reduced prices or free admission for the residents of Miami Beach." Resolution No. 98-22762 created the Community Benefit Fund Rent Waiver program,which pays the operator for theater rental fee waivers for up to twelve non-profit organizations per calendar year. Management of the rent waiver program was transferred from the Convention Center Advisory Board to the Miami Beach Cultural Arts Council (CAC)in 2009. The CAC stipulates that rent waiver recipients be required to offer free or discounted tickets to Miami Beach residents. At this writing the balance in the Community Benefit Fund is$816,261. Funds are currently used only for the discount ticket program and to pay the operator for the twelve rent waivers available each calendar year. The fund nets between$38,000 and $108,000 annually after the rent waiver and discount ticket program costs are deducted. The CAC is proposing utilizing the fund for greater community benefit by making drama-specific rent waivers available for the Colony Theatre. Rent waivers at the Fillmore currently cover up to four consecutive days' rental fees per organization per year. To stimulate longer-run professional shows,the CAC proposes extending the waiver to cover four days per week of an extended run production at the Colony, and to allow organizations to apply more than once a year. The CAC would continue to review each application and make recommendations designed to stimulate the creation of a robust and loyal theater audience. Fiscal Year Opening Surcharge Grants Paid Balance Revenue Interest Earned Ending Balance FY 07/08 $ 188,666 $ 103,977 $ 8,373 $ 7,019 $ 293,996 FY 08/09 $ 293,996 $ 54,365 $ 9,621 $ 16,941 $ 341,042 FY 09/10 $ 341,042 $ 74,645 $ 6,899 $ 28,400 $ 394,186 FY 10/11 $ 394,186 $ 103,387 $ 5,427 $ 26,200 $ 476,800 FY 11/12 $ 476,800 $ 119,244 $ 4,793 $ 23,400 $ 577,436 FY 12/13 $ 577,436 $ 105,607 $ 4,195 $ 40,400 $ 646,838 FY 13/14 $ 646,838 $ 127,093 $ 4,565 $ 41,200 $ 737,295 FY 14/15 $ 737,295 $ 122,269 $ 3,578 $ 84,000 $ 779,142 FY 15/16 Projected $ 779,142 $ 101,323 $ 3,000 $ 84,000 $ 799,465 The City will reevaluate the Community Benefit Fund after the first year of this new program to determine if any changes to the surcharge are required to maintain a positive balance in the fund. CONCLUSION The Mayor and City Commission should adopt the recommendation of the Finance and Citywide Projects Committee to adopt a rental fee waiver grant program for the Colony Theatre funded by the Community Benefit Fund and administered by the Tourism, Culture and Ec no 'c Development Department following review and recommendation by the CAC. I ' . JLM/ e:/ (.F T:WGENDA\20••\February\TCED\Colony Theater Rental Grant Program\Colony Rental Fee Waiver Memo.doc