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95-21798 Reso RESOLUTION NO. 95-21798 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,APPROVING A FIRST AMENDMENT TO THE AGREEMENT BETWEEN SPECTACOR MANAGEMENT GROUP (SMG)AND PTG FLORIDA, INC. (PTG) FOR PTG'S USE OF THE JACKIE GLEASON THEATER OF THE PERFORMING ARTS TO PRESENT BROADWAY QUALITY SHOWS AT THE THEATER, AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE AMENDMENT. WHEREAS, on May 6, 1992,the Mayor and City Commission adopted Resolution No.92- 20504, approving an agreement between Spectacor Management Group (SMG) and PTG Florida, Inc. (PTG)for the production of Broadway-quality shows by PTG at the Jackie Gleason Theater of the Performing Arts; and WHEREAS, the initial term of the Agreement was for three (3) theatrical seasons, commencing on July 1, 1993 and ending on June 30, 1996; and WHEREAS,the Agreement also provides for two (2)one-year renewal options, which are subject to the prior approval of the City, at its sole discretion; and WHEREAS, in anticipation of the expiration of the Agreement, and in its desire to continue to have PTG presenting first-class Broadway-caliber shows at the Jackie Gleason Theater of the Performing Arts,the Administration has been negotiating with PTG and would recommend that the Mayor and City Commission herein approve both one-year renewal options under the Agreement at this time, subject to the terms and conditions contained in the attached Amendment to Agreement; and WHEREAS, the attached Amendment was also presented to the Convention Center Advisory Board at its October 19, 1995 meeting, and the Board voted to accept the Amendment, especially recommending that the Agreement between Spectacor and PTG be renewed at this time for the full two-year renewal term. 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 approve the attached First Amendment to the Agreement between Spectacor Management Group and PTG Florida, Inc. for PTG'S use of the Jackie Gleason Theater of the Performing Arts to present Broadway-quality shows at the Theater, and authorize the Mayor and City Clerk to execute the Amendment. PASSED and ADOPTED this 8th day ofNovembe 1995. ATTEST: MAYOR CITY LERK FORS," " "'^"OVED LEC.. ."T. By jodijit C:1 W P W IN601 W PDOCSUtESOLUTNIPTGFIRST.AMD Date / 0/9s- 2 CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 COMMISSION MEMORANDUM NO. F)01 TO: Mayor Seymour Gelber and Members of the City Commission DATE: November 8 , 1995 FROM: Jose Garcia-Pedrosa City Manager SUBJECT: PTG FLORIDA, I . CONTRACT RENEWAL ADMINISTRATION RECOMMENDATION: The City Administration and SMG recommend to the City Commission that the contract between SMG and PTG Florida, Inc. be renewed for two (2) years. BACKGROUND: The original agreement was signed by the City of Miami Beach for five (5) years: three (3) years with two (2) one-year options. SMG and City of Miami Beach Administration together with PTG agree that the contract should be amended to include the following: • Penalty clauses and late cancellations. 2d. In the event that late cancellations such as described in paragraph 2c result in a shortfall of minimum days with at least one performance, liquidated damages described in paragraph 3g will be applied and dates will be deemed to have been rented to PRODUCER thus removing liability of PRODUCER for late cancellations. • Presentation of a "Blockbuster" event. 2h. The OPERATOR and PRODUCER agree that special conditions relating to the presentation of a "Blockbuster" caliber require renegotiation of some terms regarding rental terms and other charges. The OPERATOR and PRODUCER will negotiate such charges in the best interest of the Theater and the City of Miami Beach. A "Blockbuster" is defined as an event with a run of over four (4) weeks that has a sales history that would project substantial use of Theater capacity for four (4) weeks or longer. ANALYSIS: At the October 19, 1995 meeting of the Convention Center Advisory Board, it was unanimously agreed that the contract should be extended with the above stated revisions. PTG Florida, Inc. is by far the largest presenter of touring Broadway events. Routing arrangements are typically made more than one year out and negotiations for bookings begin up to two (2) years out. In order for them to effectively book shows it is preferable to have a two (2) year agreement in place. The amendments as presented clarify language in the contract and provide latitude for booking significant events for the theater. CONCLUSION: The City Administration recommends renewal of the PTG Florida, Inc. contract with the above specified amendments. JGP:MDB:JM: igrlP\ AGENDA ITEM i DATE i t-5- lG 5 . FIRST AMENDMENT TO AGREEMENT THIS FIRST AMENDMENT is made and entered into on the taay of it 7 is 1996 by and between Spectacor Management Group (Operator) and PTG Florida, Inc., a Florida corporation (Producer). WITNESSETH: WHEREAS, Operator manages, operates,and maintains the Jackie Gleason Theater of the Performing Arts (TOPA) on behalf of the City of Miami Beach, under rights granted by and obligations imposed under an Agreement between the City and Operator; and WHEREAS, on May 6, 1992, the City adopted Resolution No. 92-20504, approving an agreement between Operator and Producer for the production of Broadway-caliber shows in the Jackie Gleason Theater of the Performing Arts (Agreement); and WHEREAS, the initial term of the Agreement expires on June 30, 1996 and the City and Operator would recommend the extension of the Agreement for an additional two (2) theatrical seasons, as provided therein; and WHEREAS, the parties now wish to amend the Agreement to include other terms and conditions as well. NOW,THEREFORE,in consideration of the mutual covenants herein contained and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereby agree as follows: 1. The City herein approves the extension of the Agreement for the two (2)one-year renewal options, as provided therein. This renewal term shall commence on July 1, 1996 and end on June 30, 1998. 2. A new Subsection 2(d) is added to the Agreement as follows: In the event that late cancellations such as described above result in a shortfall of minimum days with at least one performance. liquidated damages described in Paragraph 2(g) will be applied and dates will be deemed to have been rented to Producer. thus removing liability of Producer for late cancellations. 3. As a result of the addition of the new Paragraph 2(d) above, the former paragraph 2(d)shall become 2(e);2(e)shall become 2(f); and 2(f) shall become 2(g). 4. A new Subsection 2(h) shall be added as follows: Operator and Producer agree that special conditions relating to the presentation of a Broadway show of a "Blockbuster" caliber may require renegotiation of some terms regarding rental terms and other charges. Operator and Producer will negotiate such changes in the best interests of the Theater and the City of Miami Beach. A "Blockbuster" is defined as an event with a run of over four(4)weeks that has a sales history that would project substantial use of Theater capacity for four(4) weeks or longer. 5. As a result of the addition of the new Paragraph 2(h) above, the former paragraph 2(g) shall become 2(i); and 2(h) shall become 2(j). 6. The parties hereby ratify and confirm all other terms and conditions of the Agreement which remain unchanged. IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed by the respective duly authorized officers and the respective corporate seals to be affixed this>2diday of W , , 199K ATTEST: C TY OF MIAMI ;, ACH R6 LACY 4, 1/ • CITY CLERK Pr NOR L ATTEST: PT' FLORIDA, INC. .,F 'RETARY t M v(Nv 7t 001 117flf1: 1 . Approved and Accepted by: LEGAL DE T. /Al,/ L t Ey SPECTACOR MANAGEMOIT GROUP Date 1 0'4__ C:\WPW IN60\WPDOCS\AGREEMNT.RJA\PTGFIRST.AMD