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Supplemental 4-13-2011-OCR(P MIAMIBEACH City Commission Meeting SUPPLEMENTAL MATERIAL City Hall, Commission Chambers, 3rd Floor, 1700 Convention Center Drive April 13,201 1 Mayor Matti Herrera Bower Vice-Mayor Jonah Wolfson Commissioner Jorge Exposito Commissioner Michael G6ngora Commissioner Jerry Libbin Commissioner Edward L. Tobin Commissioner Deede Weithorn City Manager Jorge M. Gonzalez City Attorney Jose Smith City Clerk Robert E. Parcher Visit us at www.miamibeachfl.gov for agendas and video "streaming" of City Commission Meetings. SUPPLEMENTAL AGENDA , C7 - Resolutions ATTENTION ALL LOBBYISTS Chapter 2, Article VII, Division 3 of the City Code of Miami Beach entitled "Lobbyists" requires the registration of all lobbyists with the City Clerk prior to engaging in any lobbying activity with the City Commission, any City Board or Committee, or any personnel as defined in the subject Code sections. Copies of the City Code sections on lobbyists laws are available in the City Clerk's office. Questions regarding the provisions of the Ordinance should be directed to the Office of the City Attorney. A Resolution Approving And Authorizing The Mayor And City Clerk To Execute An Agreement With Atkins North America, Inc., As The Successor In Interest To Post, Buckley, Schuh & Jernigan, Inc. For Design, Bid And Award, And Construction Administration Services, In The Negotiated Not-To-Exceed Amount Of $330,000, And $39,000 For Reimbursable Expenses, For A Total Not To Exceed Amount Of $369,000, For The South Pointe Park Pier Project, Pursuant To Request For Qualifications (RFQ) No. 04-1 011 I ; With Previously Appropriated Funding From Fund 303. (Capital Improvement Projects) (Resolution, Letter from Atkins, & Certificate of Corporation) Supplemental Agenda, April 13, 201 1 C7 - Resolutions (Continued) C7G A Resolution Accepting The Recommendation Of Gallagher Benefit Services, Inc., The City's Consultant Of Record, Pursuant To That Certain Request For Proposals Issued By Gallagher On Behalf Of The City For A Voluntary Benefits Program For Full-Time And Part-Time Employees, And Authorizing The City Manager To Negotiate And, If Successful, Execute Agreements For The City's Voluntary Benefits Program With The Following Companies; 1 .) Preferred Legal And U.S. Legal, For Discount Legal Service Programs; 2.) Trustmark, For Accident, Critical Illness And Universal Life Plans; And 3.) Colonial Life &Accident Insurance Company, For A Hospital Indemnity Plan; Further Authorizing The Administration To Work Directly With The Selected Individual Plan Carriers To Select One (1) Enrollment Firm To Provide Annual Enrollment Support And Benefit Materials For All Of The City's Benefit Programs, At No Cost To The City; And Further Referring The Discussion Of A Potential New Voluntary Benefit Offering For Active City Employees, Providing For An Unsecured Loan Program Repaid Through Payroll Deductions, To The City's Finance And Citywide Projects Committee. (Human Resources) (Resolution) R7 - Resolutions R7C A Resolution Approving And Authorizing The Mayor And City Clerk To Execute An Agreement Between The City And Broward Stage Door Theater, Inc. For The Operation And Management Of A Portion Of The Byron Carlyle Theater, Pursuant To Request For Proposals No. 24-09/10; Said Agreement Having An Initial Term Of Five (5) Years, Commencing On May 1,201 1, And Ending On April 31, 2016, With An Option To Extend The Agreement For Up To Five (5) Additional Years (In Either One Year Or Multi-Year Increments, As Determined By The City), At The City Sole Discretion. (Tourism & Cultural Development) (Memorandum, Resolution & Agreement) R9 - New Business and Commission Requests R9F The Committee Of The Whole Will Meet During Lunch Recess Of The April 13, 2011 City Commission Meeting At The City Manager's Large Conference Room To Discuss Status Of Pending Legislation Currently Before The Florida Legislature. (Page) (Economic Development) (Memorandum) RESOLUTION NO. A RESOLUTION OF THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND ClTY CLERK TO EXECUTE AN AGREEMENT WlTH ATKINS NORTH AMERICA, INC., AS THE SUCCESSOR IN INTEREST TO POST, BUCKLEY, SCHUH & JERNIGAN, INC., FOR DESIGN, BID AND AWARD, AND CONSTRUCTION ADMINISTRATION SERVICES, IN THE NEGOTIATED NOT-TO-EXCEED AMOUNT OF $330,000, AND $39,000 FOR REIMBURSABLE EXPENSES, FOR A TOTAL NOT TO EXCEED AMOUNT OF $369,000, FOR THE SOUTH POINTE PARK PIER PROJECT, PURSUANT TO REQUEST FOR QUALIFICATIONS (RFQ) NO. 04-10111; WlTH PREVIOUSLY APPROPRIATED FUNDING FROM FUND 303. WHEREAS, on July 14, 2010, the Mayor and City Commission approved the issuance of Request for Qualifications (RFQ) No. 04-1 011 1, for the Design, Bid, Award, and Construction Administration Services for the South Pointe Pier Project (the l'RFQ1'); and . .. . WHEREAS, the RFQ was issued on November 12, 2030, with an opening date of December 13,2010; and . . . . WHEREAS, at its March 9, 201 1 meeting, the City Commission approved Resolution No. 201 1-27606, authorizing the Administration to enter into negdiafions with the top-ranked firm of Post, Buckley, Schuh & Jernigan, Inc.; to negotiate with the .second-ranked firm of Bermello Ajamil & Partners, Inc. should negotiations with the top-ranked firm be unsuccessful; and to negotiate with the third-ranked firm of the Keith and Schnars, shou should negotiations with the first or second-ranked firms be unsuccessful; and WHEREAS, the Administration has successfully negotiated the attached Agreement with Post, Buckley, Schuh & Jernigan, Inc., in the amount of $330,000, of which $270,000 is for design, $5,000 is for bidlaward services, and $55,000 is for construction administration services, plus an additional amount of $39,000 for approved reimbursables; and WHEREAS, Post, Buckley, Shuh & Jernigan, Inc.(PBS '& J) submitted its response to the RFQ as PBS & J and Atkins North America, Inc.; PBS & J was acquired by Atkins North America, Inc. on October I, 2010; and WHEREAS, Atkins North America, Inc. is the successor in interest to PBS & J. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, that the Mayor and City:f2ammission hereby approve and authorize the Mayor and City Clerk to execute an Agreement with Atkins North America, Inc., as the successor in interest to Post, Buckley, Schuh & Jernigarr, Iric,, for design, bid and award, and construction administration services, in the negotiated amol.int 6f $330,000, and $39,000 for reimbursable expenses for a total not-to-exceed amount of $369,000 for the South Pointe Park Pier Project, pursuant to Request for Qualifications (RFQ) No. 04-10/11; with previously appropriated funding from fund 303. PASSED AND ADOPTED THIS DAY OF 201 1. ATTEST: , MAYOR CITY CLI€~~ROVED AS To FORM & LANGUAGE Agenda Item C7C Date q-/3-11 RECEIVED April 06, 2011 205 1 APR -7 Atkins North America, Inc. 2001 Northwest 107th Avenue Miami, Florida 331 72-2507 Telephone: +1.305.592.7275 www.atkinsglobal.com/northamerica City of Miami Beach GI1 '!' Gi- rIiANi BEACH @f'lTAL iEPROY EMENT Capital Improvement Projects 0 Ice PROJECTS 1700 Convention Center Drive Miami Beach, FL 33139 Attn: Matilde E. Reyes, R.A. Sr. Capital Projects Coordinator Re: Company Change of Name from Post, Buckley, Schuh & Jernigan, Inc., d/b/a PBS&J to Atkins North America, Inc. Dear Ms. Reyes: As you may know from previous correspondence, effective April 1, 2011, Post, Buckley, Schuh & Jernigan, Inc., d/b/a PBS&J ("PBS&J") changed its name to Atkins North America, Inc. ("Atkins"). By this letter, we formally request that our future contract be structured to reflect our new company name. I am providing you with the following information to effect the change of name. 1. By this letter, I confirm that PBS&J changed its legal name to Atkins North America, Inc., effective April 1, 20 1 1. 2. As an officer of the company, I confirm that this change of name will have no impact on our future contract with the City. Our business address, corporate structure, federal tax ID number, personnel and management will remain unchanged. Atkins North America, Inc. remains incorporated in Florida and remains a wholly-owned subsidiary of The PBSJ Corporation (which, like PBS&J, completed a name change effective April 1, 2011 to The Atkins North America Holdings Corporation). 3. A copy of the certification from the Florida Secretary of State evidencing the name change and its effective date are attached as Exhibit 1. 4. Our insurance coverage remains unchanged. Please do not hesitate to contact me if you require any additional information in support of this name change. Sincerelv vours. A William P. Pitcher, P.E. Vice President, Port and Coastal Engineering Practice Cc: Ken Jones / Atkins Cc: Humberto Alonso / Atkins Cc: J.R. Steele / Atkins Enclosure: Exhibit 1 I certify the attached is a true and correct copy of the Articles of Incorporation, as amended to date, of ATMJNS NORTH AMERICA, INC., a corporation organized under the laws of the State d Florida, as shown by the records of this office. "Pke document number of this corporation is 233840. Given under my hand and the Great Seal of the State d Florida at Tallahasset;, the Capita!, this the Fifieentk day of Februaoy, 201 1 CR2E022 (0167) THIS PAGE INTENTIONALLY LEFT BLANK RESOLUTION NO. A RESOLUTION OF THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF GALLAGHER BENEFIT SERVICES, INC., THE CITY'S CONSULTANT OF RECORD, PURSUANT TO THAT CERTAIN REQUEST FOR PROPOSALS ISSUED BY GALLAGHER ON BEHALF OF THE CITY FOR A VOLUNTARY BENEFITS PROGRAM FOR FULL-TIME AND PART-TIME EMPLOYEEES, AND AUTHORIZING THE ClTY MANAGER TO NEGOTIATE AND, IF SUCCESSFUL, EXECUTE AGREEMENTS FOR THE CITY'S VOLUNTARY BENEFITS PROGRAM WlTH THE FOLLOWING COMPANIES; 1.) PREFERRED LEGAL AND U.S. LEGAL, FOR DISCOUNT LEGAL SERVICE PROGRAMS; 2.) TRUSTMARK, FOR ACCIDENT, CRITICAL ILLNESS AND UNIVERSAL LlFE PLANS; AND 3.) COLONIAL LlFE & ACCIDENT INSURANCE COMPANY, FOR A HOSPITAL INDEMNITY PLAN; FURTHER AUTHORIZING THE ADMINISTRATION TO WORK DIRECTLY WlTH THE SELECTED INDIVIDUAL PLAN CARRIERS TO SELECT ONE (I) ENROLLMENT FIRM TO PROVIDE ANNUAL ENROLLMENT SUPPORT AND BENEFIT MATERIALS FOR ALL OF THE CITY'S BENEFIT PROGRAMS, AT NO COST TO THE CITY; AND FURTHER REFERRING THE DISCUSSION OF A POTENTIAL NEW VOLUNTARY BENEFIT OFFERING FOR ACTIVE ClTY EMPLOYEES, PROVIDING FOR AN UNSECURED LOAN PROGRAM REPAID THROUGH PAYROLL DEDUCTIONS, TO THE CITY'S FINANCE AND CITYWIDE PROJECTS COMMITTEE. WHEREAS, the City currently provides its full-time employees access to a voluntary benefits program administered by a broker, Comprehensive Companies, which has been providing these benefits since 1991 ; and WHEREAS, these options are provided at no cost to the City and are fully- funded by employee contributions; and WHEREAS, the employees are provided voluntary benefit options which include universal life, disability, critical life insurance, a cancer policy, and discount legal services; and WHEREAS, at the direction of the City Administration, the City's Consultant, Gallagher Benefits Services, Inc. (Gallagher), issued a Request for Proposals (RFP) for a voluntary benefits program for both the City's full-time and part-time employees, including a request for enrollment support to be provided by one (1) independent enrollment firm selected among the carrier(s), at no cost to the City; and WHEREAS, as a result of the RFP, the City received responses from eight (8) individual voluntary benefit plan carriers, and two (2) brokers (the brokers submitted a joint response); and WHEREAS, the proposed voluntary benefits plans included discount legal services, accident and critical illness plans, a hospital indemnity plan, and universal life plans; and WHEREAS, as the proposals submitted for critical illness coverage include coverage for cancer, Gallagher recommended the City not provide duplicate coverage for just one (I) condition, resulting in the elimination of an offering of an individual cancer policy; and WHEREAS, based on the proposals received pursuant to the RFP, Gallagher recommends that the City enter into agreements for a voluntary benefits program, fully-funded by employee contributions with the following firms: 1 .) Preferred Legal Plan and U.S. Legal (the Agenda Item C7 G Date ?-/3-// incumbent), for a choice of discount legal plans; 2.) Trustmark, for Accident, Critical Illness and Universal Life Plans; and 3.) Colonial Life & Accident lnsurance Company (through brokers Citrin Financial and Pearl Benefit Group), for a Hospital Indemnity Plan; and WHEREAS, the Administration has reviewed the recommendations made by Gallagher and recommends accepting its recommendations; and WHEREAS, the Administration will also work directly with the selected individual plan carriers to select one (I) enrollment firm to provide annual enrollment support and customized, printed benefit communication materials for all of the City's benefit programs, at no cost to the City; and WHEREAS, the Administration has also been made aware of a new additional voluntary benefit, providing for an unsecured loan program for active employees repaid through payroll deductions and would recommend that this be referred to the City's Finance and Citywide Projects Committee for further discussion. 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 accept the recommendation of Gallagher Benefit Services, Inc., the City's Consultant of Record, pursuant to that certain request for proposals issued by Gallagher on behalf of the City for a voluntary benefits program for full-time and part-time employees, and authorizes the City Manager to negotiate and, if successful, execute agreements for the City's voluntary benefits program with the following companies; 1 .) Preferred Legal and U.S. Legal, for discount legal service programs; 2.) Trustmark, for Accident, Critical Illness and Universal Life Plans; and 3.) Colonial Life & Accident lnsurance Company for a Hospital lndemnity Plan; further authorizing the Administration to work directly with the selected individual plan carriers to select one (I) enrollment firm to provide annual enrollment support and benefit materials for all of the City's benefit programs, at no cost to the City; and further referring the discussion of a potential new voluntary benefit offering for active City employees, providing for an unsecured loan program repaid through payroll deductions, to the City's Finance and Citywide Projects Committee. PASSED and ADOPTED this day of ,2011. MAYOR Mattie Herrera Bower ATTEST: CITY CLERK Robert Parcher APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION COMMISSION ITEM SUMMARY 2ondensed Title: A Resolution Of The Mayor And City Commission of The City Of Miami Beach, Florida, Approving and 1 Authorizing The Mayor and City Clerk To Execute an Agreement Between The City and Broward Stage Door Theater Company, Inc. For The Operation and Management of a portion of The Byron Carlyle Theater, Pursuant to Request For Proposals No. 24-09/10; Said Agreement Having an Initial term of Five (5) Years, Commencing on May 1, 2011, And Ending on April 31, 2016, with an Option To Extend the Agreement for up to Five (5) additional years (in either One Year or Multi-Year Increments, as determined by the City), at the City's sole discretion. Key Intended Outcome Supported: Maximize Miami Beach as a Brand Destination and Diversify Business Base in Miami Beach Supporting Data (Surveys, Environmental Scan, etc.): The 2009 Community Satisfaction Survey indicated that respondents attended performances at the Byron Carlyle Theater less than I time (0.64) per year on average. Issue: .--. -. Shall the Mayor and the City Commission authorize the Mayor and City Clerk to enter into a Management Agreement with the Broward Stage Door Theater Co, Inc for the Byron Carlyle Theater? Item SummarylRecommendation: I On February 3, 2010, the Mayor and City Commission approved the issuance of Request for proposals (RFP) I No. 24-09/10, for ~anagement andlor ~evelo~ment of the Byron Carlyle Theater Complex. The RFP was issued on February 18, 2010, with an opening date of April 19, 2010. A pre-proposal conference to provide information to the proposers submitting a response was held on March 8, 2010. Additionally, four (4) site visits were offered to potential proposers on March 8, 2010, March 23, 2010, March 30, 2010, and April 8, 2010. This item was presented to the Finance and Citywide Projects Committee at their regular meeting July 29, 2010. The Administration expressed concern with entering into a long-term agreement (initial term of five (5) years, with an option to renew for an additional five (5) year term) essentially rent free. The Committee discussed the item and unanimously recommended awarding the management agreement to Broward Stage Door Theatre Company with benchmarks included. On October 27, 2010, the City Commission adopted Resolution No. 201 0-27538 authorizing the Administration to negotiate with Stage Door Theater. The parties have reached agreement and a copy of the Management Agreement is attached for your review. ACCEPT THE CITY MANAGER'S RECOMENDATION. Advisory Board Recommendation: 1 The Finance and Citywide Projects Committee discussed the item at their July 29, 2010 meeting and I unanimously recommended aw&ding the management agreement to Broward stage Door Theatre company with benchmarks included. Financial Information: I I City Clerk's Office Legislative Tracking: I Max Sklar, TCD Director, Ext. 61 16 1 Source of Funds: OBPl w AGENUk lTEM R7C DATE - Financial Impact Summary: Each fiscal year of the Theater's operation has yielded operating deficits for the Byron Carlyle, with the largest being $195,000 in 2006. It is projected that the Theater will have an operating loss of almost $41,886 in the current fiscal year. The Administration's intent is to eliminate the City's financial obligation while also activating the theater with the privatization of the Byron Carlyle. 1 Total Amount Account Approved MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 331 39, www.rniarnibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: April 13, 201 1 SUBJECT: A RESOLUTION OF THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND ClTY CLERK TO EXECUTE AN AGREEMENT BETWEEN THE CITY AND BROWARD STAGE DOOR THEATER COMPANY, INC. FOR THE OPERATION AND MANAGEMENT OF A PORTION OF THE BYRON CARLYLE THEATER, PURSUANT TO REQUEST FOR PROPOSALS NO. 24-09/10; SAID AGREEMENT HAVING AN INITIAL TERM OF FlVE (5) YEARS, COMMENCING ON MAY 1, 2011, AND ENDING ON APRIL 31, 2016, WITH AN OPTION TO EXTEND THE AGREEMENT FOR UP TO FlVE (5) ADDITIONAL YEARS (IN EITHER ONE YEAR OR MULTI-YEAR INCREMENTS, AS DETERMINED BY THE CITY), AT THE CITY'S SOLE DISCRETION. ADMINISTRATION RECOMMENDATION Adopt the Resolution. FUNDING Each fiscal year of the Theater's operation has yielded operating deficits for the Byron Carlyle, with the largest being $195,000 in 2006. It is projected that the Theater will have an operating loss of almost $42,000 in the current fiscal year. The Administration's intent is to eliminate the City's financial obligation while also activating the theater with the privatization of the Byron Carlyle. KEY INTENDED OUTCOME SUPPORTED Maximize Miami Beach as a Brand Destination and Diversify Business Base in Miami Beach. ANALYSIS The Byron Carlyle Theater Complex (the "Theater"), located at 500 71'' Street, between Byron Avenue and Carlyle Avenue, originally opened in December 1968 as twin cinemas hosting first-run movies in the heart of North Beach. A total of 994 seats were originally built, with the large auditorium having a capacity of 590 seats. In the mid-1970s, the Theater was re- developed into a multiplex cinema; the larger auditorium to the west was subdivided into five (5) smaller theaters. Following the opening of the Regal Cinemas on Lincoln Road, the theater was closed by its owner, Wometco Enterprises, and the City of Miami Beach purchased it in 2001, for $1.7 million. Stage Door Theater Management Agreement for the Byron Carlyle Theater Complex Commission Memorandum April 13, 2011 Page 2 The North Beach Town Center Plan, adopted in July, 2007, identifies a wide range of strategies to attract new development. The most important of the strategies identified includes the assemblage of one or two sites large enough to provide the critical mass of activity necessary to serve as anchors to support smaller site development in the district; to program the Byron Carlyle Theater and the North Beach Bandshell as cultural anchors to bookend both sides of the district; and to provide convenient public parking to lower the cost of development. The Byron Carlyle Theater property was identified as an important piece of the Town Center redevelopment strategy because of the location, size, public ownership and potential to provide a cultural anchor. Undoubtedly, cultural facilities are proven magnets for economic revitalization, both for the business community and for residential development by making the community more attractive. Indeed, the purchase and renovation of the theater was intended for economic development purposes, as well as to assist the local talent by providing a venue for rehearsal, performances, office space, and to ensure that, once established, the arts would be able to remain in a rejuvenated North Beach. However, for the Byron Carlyle Theater to succeed in this role, a few of the other supporting elements of the plan should be underway. BACKGROUND Issuance of RFP/2008: In May of 2008, the City Commission directed the Administration to research and propose alternatives for the privatization of the Byron Carlyle Theater. Subsequently, at the July 9, 2008 Finance and Citywide Projects Committee meeting, the Committee recommended the issuance of a Request for Proposals (RFP) and directed staff to place this item on the July 16, 2008 City Commission agenda. RFP No. 39-07/08 was issued on July 22, 2008 and two proposals were received. The evaluation committee unanimously recommended to reject both proposals and to request the re-issuance of a new RFP for the Management and/or Development of the Byron Carlyle Theater Complex. The Finance and Citywide Projects Committee considered this matter at its meeting on March 10, 2009, and also recommended that the City reject both proposals and issue a new RFP. It was recommended that the new RFP should encourage potentially different uses for the facility, and should request superior evidence of financial capacity of the proposers and demonstrated capacity to sustain the proposed programming. Neighborhoods and Community Affairs Commiffee/2009: This subject was discussed again at the October 2009 Neighborhoods and Community Affairs Committee meeting following a discussion at the September 9, 2009 City Commission meeting regarding the potential marketing of the property by a broker for either rental or sale. At the time, the City had just received an "Opinion of Value" for the property. Much of the subsequent Committee discussion centered on reactivating a movie theater operation at the Byron Carlyle with potentially some food, beverage and alcohol component, rather than selling the facility. Also discussed was the possibility of removing Global Spectrum from managing the facility to make it less expensive for users to rent, as well as whether or not the City should assume responsibility for directly programming the facility, instead of operating it as a rental facility. The Administration advised the Committee that eliminating Global Spectrum andlor having the City program the facility would require additional staff, which carries a cost that is not currently funded. The Committee directed staff to return to the Neighborhoods/Community Affairs Committee with its suggestions for the programming and management of the Byron Carlyle Theater, such as having an organization selected to be responsible for also making the facility available for Stage Door Theater Management Agreement for the Byron Carlyle Theater Complex Commission Memorandum April 13, 2011 Page 3 other programming. It was understood by staff that the expectation was that the organization selected would assume all costs, providing a savings to the City. At the January 19, 2010, Neighborhoods and Community Affairs Committee, the Administration reviewed the history of this item and also explained that a number of organizations toured the facility. Some of the organizations were referred by members of the City Commission, while others were initiated through the Tourism and Cultural Development Department. Committee members present also clarified to the Administration that they would also consider subsidizing costs at the Byron if a resident company were able to activate the space regularly. The Committee unanimously recommended that the Administration immediately issue an RFP for management and/or development of the Byron Carlyle Theater. Additionally, the Committee unanimously recommended the Administration simultaneously work with the City's broker in order to determine if there is a commercial client interested in leasing or purchasing the facility. All options would be presented to the City Commission for consideration. SCOPE OF SERVICES Based on the direction provided at the Neighborhoods and Community Affairs Committee, the City issued RFP No. 24-09/10. Summary: The City was interested in proposals for use of the existing theater portion of the building as a theater or with some similar cultural use. Proposers were encouraged to submit proposals that would address the needs of the community and provide both daytime and nighttime uses if possible. The City would also'consider proposals that incorporate the closed, western portion of the building, or for only the western portion of the building, for a use compatible to the theater use. The City was open to proposals that considered the use of the current theater facility on the eastern portion of the complex only, the unrenovated western portion of the facility only, or for the overall complex. Proposers had the ability to submit proposals for the use or development of the entire complex or only for one of the two portions of the complex. Collaborations among theater, film, dance, and other performing and/or presenting cultural organizations are encouraged. The proposer would be responsible for any and all renovation or alteration to the portions of the facility requested via this RFP, including funding for any renovation or alteration; maintenance and equipment; marketing; coordination of utilization; and any and all other responsibilities as may be required for the proposed use. It was anticipated that the successful proposer would negotiate with the City for a long-term contract with an initial term of five (5) years, with an option to renew for an additional five (5) year term, at the City's sole discretion. RFP PROCESS On February 3, 2010, the Mayor and City Commission approved the issuance of Request for proposals (RFP) No. 24-09/10, for Management and/or Development of the Byron Carlyle Theater Complex. RFP No. 24-0911 0 was issued on February 18, 2010, with an opening date of April 19, 201 0. A pre-proposal conference to provide information to the proposers submitting a response was held on March 8, 2010. Additionally, four (4) site visits were offered to potential proposers on March 8, 2010, March 23, 2010, March 30, 2010, and April 8, 2010. Stage Door Theater Managemenf Agreement for the Byron Carlyle Theater Complex Commission Memorandum April 13, 201 1 Page 4 Based on presentations made and the proposals submitted, the Evaluation Committee unanimously recommended the Administration to initiate discussions with the two (2) top ranked proposers: Broward Stage Door Theatre Co, Inc and New Theatre. FINANCE AND CITYWIDE PROJECTS COMMITTEE RECOMMENDATION This item was presented to the Finance and Citywide Projects Committee at their regular meeting July 29, 2010. The Administration expressed concern with entering into a long-term agreement (initial term of five (5) years, with an option to renew for an additional five (5) year term) essentially rent free. The Scope of Services for this RFP sought proposals with cultural themed uses for the facility. The Committee discussed the item and unanimously recommended awarding the management agreement to Broward Stage Door Theatre Company with benchmarks included. Broward Stage Door Theatre Co, Inc. Broward Stage Door Theatre Co, lnc ("Stage Door Theatre") is a non-profit 501(c)3 that was formed in 1993. The Stage Door Theatre proposes to operate a professional theatre company in the eastern portion of the Byron Carlyle Theater. The Stage Door Theatre proposes a high quality state-of-the-art performing arts facility that will operate with the needs of the residents, city businesses, tourism, and the general public in mind. The performance schedule includes both matinees and evenings, keeping the facility operating both weekdays and weekend. Programming at the theatre would include both musicals and plays, with an awareness of family values and appropriate content for a municipal venue. The Stage Door Theatre is best known for productions of large scale musicals, but has also received critical acclaim for dramas as well. Stage Door Theatre has managed its current location in Coral Springs for seventeen (17) years. It successfully operated a second location in Wilton Manors for seven (7) years. The Stage Door has a proven record of marketing prowess and has shown its ability to develop and maintain a new and loyal audience base. The organization is familiar with the need to generate revenue and create financial stability. Even though the Stage Door Theatre is a 501(c)3 nonprofit corporation, it does not rely on grants and it is fully funded by its revenues. As a team, Derelle Wilson Bunn and David R. Torres, have produced over 200 shows. They have also produced on the national tour level, and Off-Broadway. The Stage Door Theatre's goal is to establish the Byron Carlyle as a facility that contributes to the vibrancy and beauty of the area, while becoming a destination which will further the economic growth and development of the surrounding community. MANAGEMENT AGREEMENT On October 27, 2010, the City Commission adopted Resolution No. 2010-27538 authorizing the Administration to negotiate with Stage Door Theater. The parties have reached agreement on the following terms, which are included in the attached contract: Initial Term: An initial term of five (5) years, commencing on May 1, 2011 (Commencement Date), and ending on the April 30, 2016 (Expiration Date). Stage Door Theater Management Agreement for the Byron Carlyle Theater Complex Commission Memorandum April 13, 201 1 Page 5 Renewal Term: Scope of Services: The City has the option of renewing the Agreement, at its sole discretion, and provided that State Door is in good standing, free of default, and has met its annual benchmarks, for up to five (5) years. The option to renew may be exercised in five (5) one (1) year terms, or in multi-year terms (as the City determines), by providing at least 365 days notice to Stage Door. In the event Stage Door decides not to renew the Agreement, it shall also provide the City with at least 365 days notice prior to the expiration of the initial term. Stage Door agrees to operate, manage, maintain, promote and market the Facility in a manner consistent with other similar first class facilities. Subject to the terms of the Agreement, Stage Door shall be, as agent for the City, the sole and exclusive manager of the City to operate, manage, maintain, promote and market the Facility during the Term. Stage Door shall use the Facility solely and exclusively as the headquarters for its not-for-profit live theatrical production company. The Facility shall be used only as a live theatrical entertainment venue and public auditorium, or any combination thereof, and for such ancillary uses as are customarily related to such primary use, including, without limitation, broadcasting, recording, filming, private parties or functions, food and beverage concessions, in each case in conjunction with an Event or rental function then being held; and sale of merchandise related to any Event then being held. Stage Door agrees to honor all Events or rentals which have been booked prior to the date of approval of this Agreement. City shall remit to Stage Door all rental revenues (if any) from the agreements that have already been booked prior to the Approval Date. The Facility does not include dedicated parking for the building. Patrons of Events may park in public parking lots and garages if and to the extent available, upon paying the applicable parking charges. No other uses shall be permitted without the prior written approval of the City Manager, which approval may be granted or withheld in hislher sole discretion. Stage Door shall operate the Facility on a year round basis, subject to closures for reasonable periods for rehearsal, set design, repairs, maintenance and alterations. All Events and all rentals shall conclude prior to 1:00 a.m. unless otherwise approved by the City Manager Stage Door agrees to maintain the Facility (including, without limitation, all structural components thereof and all electrical, Stage Door Theater Management Agreement for the Byron Carlyle Theater Complex Commission Memorandum April 13, 207 I Page 6 HVAC, life safety, mechanical, plumbing and other systems and equipment) in a good and clean condition consistent with other similar first class facilities and in compliance with all Governmental Requirements, ordinary wear and tear, and casualty loss excepted. Maintenance responsibility shall include, without limitation, preventative and any and all other maintenance and as required in Exhibit "F" of the Agreement. Stage Door shall not make any additions, improvements, or alterations to the Facility without the City Manager's prior written consent. The costs of all Alterations made by Stage Door shall be borne solely by Stage Door from its own funds and shall not constitute Operating Expenses. It is understood by the parties that Stage Door shall not be responsible, nor required to pay for, any other costs related to major capital improvements or infrastructure (i.e. including, but not limited to, plumbing and sewer lines, major electrical, structural, HVAC, roof, etc.) with regard to the Facility. Required Number of Events: In order to ensure the continuous operation of the Facility, Stage Door is required to have at least 200 Events, (75 Events for the first Contract Year of the Term, at the Facility for each Contract Year (and proportionately for any partial Contract Year) during the Term. The aforesaid 200 Events shall be calculated by counting each separate Event in a Run. Public Benefits Program: Resident Ticket Program: Stage Door agrees to provide a discount ticket program available only to City of Miami Beach residents (meaning individuals who permanently reside in the City of Miami Beach), by which a ten percent (10%) discount off of the full face value pricing shall be made available to such City of Miami Beach residents in advance of ticket sales to the general public. Stage Door shall operate a ticket program available to children under the age of twelve (12) years old by which tickets will be sold for sixteen dollars ($16). Summer Camp Program: If it is financially feasible, Stage Door shall, in its sole and reasonable discretion, develop, market, and operate a summer camp program for children in musical theater, stage production, andlor theatrical stage set design. Programs may include writing, directing and acting, and performing in a musical production. Summer camp programs may be offered in 4 and 8 week sessions to children of all ages. Young Ambassador Program: Stage Door shall create and promote a free Young Ambassador Program for Miami Beach students with an interest in the performing arts in order to create a first person perspective of Stage Door Theater Management Agreement for the Byron Carlyle Theater Complex Commission Memorandum April 13, 201 1 Page 7 their experiences in theater and the arts. Selected students will contribute to establishing a vital informational link to their peers regarding the arts both locally and nationally. In addition, the ambassadors will attend performances presented by Stage Door, free of charge, in order to expand their interest in the arts, and be asked to provide reviews for postings on social media sites such as Facebook, Twitter, etc. Ambassadors will receive community service hours for their participation in the Program. Senior/Student Tickets: Stage Door shall participate in Golden Ticket and Culture Shock programs offered by Miami-Dade County. City Event: Stage Door shall participate in "Sleepless Night" and offer a FREE performance(s) during the event. If at any time during the Term of this Agreement, the City, in its sole discretion, determines not to produce and/or sponsor "Sleepless Night," then Stage Door's obligation in this subsection shall apply to any such successor event, as the City may determine, in its sole discretion. Complimentary Tickets: City shall be entitled to receive fourteen (14) complimentary tickets for each Run at the Facility that is open to the general public, including those presented or promoted by Stage Door and including third party rentals subject to the provisions of this Agreement. City may not engage in the sale or re-sale of the complimentary tickets. Under no circumstances shall City be entitled to "roll over" or "carry forward" any unused or un-retrieved complimentary tickets Base Use Fee: Operating Expenses: Capital Fund: Valet Parking: For the Term of the Agreement, Stage Door shall pay City a nominal annual Use Fee for the right to use the Facility, in the amount of One Dollar ($1.00), which shall be payable in advance without demand, commencing on the Commencement Date and thereafter on the first day of each Agreement Year. Stage Door shall pay all costs and expenses related to Operating Expenses. To help defray the cost of certain major capital repairs and replacements to the Facility, Stage Door shall make annual contributions to a Capital Fund to be held and disbursed by City. The annual contribution shall be $5,000 Dollars, paid in equal monthly $5,000 installments. City reserves to itself and its contractors and designees (i) all rights to provide valet parking to the Facility, and (ii) all proceeds from the valet parking operations. Stage Door may pre-purchase parking controlled by the City or pre-purchase valet parking. The Stage Door Theater Management Agreement for the Byron Carlyle Theater Complex Commission Memorandum April 13, 201 I Page 8 City Manager shall have the authority to negotiate and enter into such agreements with respect thereto, as the City Manager deems acceptable. If the City exercises its right to provide valet parking to the Facility, then Stage Door shall have no right to provide valet parking or to contract with other parties for valet parking with respect to the Facility. However, if the City chooses not to offer valet parking services at the Facility, then Stage Door shall have first right of refusal to provide valet parking or to contract with a third party for valet parking at the Facility, at Stage Door's expense. Exterior Signage: Interior Signage: City reserves the name-in-title rights (i.e., the right to name the Facility) and all revenue derived therefrom. Notwithstanding the preceding sentence, Stage Door shall be permitted to change the name of the Facility to "Miami Beach Stage Door Theater" if and only if the City Commission approves and adopts an ordinance amending Chapter 82, Article VI, Sections 82-501 through 82-505, as same may be amended from time to time (hereinafter, the "City's Naming Ordinance1'), exempting the Facility from the requirements of the City's Naming Ordinance. Notwithstanding the preceding paragraph, the City Commission's consent and approval shall be required if Stage Door seeks to change the name of the Facility to anything other than "Miami Beach Stage Door Theater," and any such name change must be approved by a 517 vote of the City Commission. Stage Door agrees that if the name-in-title is changed to "Miami Beach Stage Door Theater," Stage Door shall bear all costs (as part of Operating Expenses) to obtain and install new signage and to remove the existing signage. Further, if the name-in-title is approved, as stated herein, Stage Door agrees to utilize the full name of the Facility in its publications, advertising, promotions, websites, announcements, and other similar and related materials referring solely to the Facility, unless the use of the full name-in-title is otherwise unfeasible due to size or space limitations on such publications, advertising, promotions, websites, announcements, and other similar and related materials, or outside of its direct control. All exterior signage shall be subject to the City Manager's prior written approval as to size, location, materials and aesthetics. Stage Door shall have no right to install any other signage on the exterior of the Facility, except that Stage Door may use the existing marquis sign to advertise upcoming Events. Stage Door shall be entitled to all permanent (meaning for a specific area such as a VIP lounge together with a duration in excess of twelve (12) months) interior signage (and all proceeds derived therefrom shall be Operating Revenues); provided, however, that the names affixed thereon (including, without Stage Door Theater Management Agreement for the Byron Carlyle Theater Complex Commission Memorandum April 13, 2011 Page 9 limitation, any sponsorship names) are subject to the City Manager's prior written approval, which shall not unreasonably be withheld, conditioned or delayed. In no event may any such signage include the names of any company selling the following types of products ("Prohibited Names"): guns, tobacco or sexual products. Nothing contained herein shall preclude Stage Door from allowing sponsors from using temporary banners and temporary signage within the Facility with respect to any Event, so long as the banners and signage do not include any Prohibited Names. Stage Door shall be entitled to all interior signage (and all proceeds derived therefrom shall be Operating Revenues). Annual Plan: Use by City: Commencing upon May I, 2012, Stage Door shall provide to the City on or before June lSt of each year thereafter, an annual management plan, which shall include the annual operating budget for the then current Fiscal Year. The annual plan shall include information regarding Stage Door's anticipated operations for such Fiscal Year, including planned operating and maintenance activities, anticipated capital improvements and capital equipment purchases and an anticipated budget therefore, anticipated Events at the Facility (to the extent known at such time), and planned equipment and furnishings purchases. Accompanying the Stage Door's proposed annual budget shall be the Facility Programmatic Plan for the next fiscal year, detailing the then-known activities planned, and the number of residents and visitors anticipated to be impacted. Accompanying Stage Door's proposed annual budget shall be a detailed list of then-known major capital repairs anticipated for the Facility. The City shall have the right to use the Facility, or any part thereof, subject to availability, for the benefit of the community for such purposes including, but not limited to, meetings, City- sponsored special events, Sleepless Night (or a successor event), receptions, and other purposes, as deemed necessary by the City Manager, in hislher sole and absolute discretion, without the payment of any rental or use fee, except the direct out-of- pocket expenses incurred in connection with such uses shall be paid by the City. City uses of the Facility shall not be competitive with, nor conflict with, Events booked or sponsored by Stage Door, and shall be booked in advance upon reasonable notice. Additionally, upon execution of this Agreement, Stage Door acknowledges and herein agrees to honor all pre-existing scheduled events. Stage Door Theater Management Agreement for the Byron Carlyle Theater Complex Commission Memorandum April 73, 2077 Page 70 Stage Door Employees: Stage Door shall assign to the Facility a competent full-time staff member experienced in the operations of similar facilities, who will be located full time on-site during the Term. The full-time staff member will be supervised by a general manager who is experienced in operating and managing similar facilities. Prior to Stage Door's appointment of the staff member, Stage Door shall consult with the City Manager with respect to the qualifications of the staff member proposed by Stage Door. The staff member shall be accessible to the City Manager at all reasonable times to discuss the management, operation, and maintenance of the Facility. Advisory Board: Within thirty (30) days after the Effective Date, Stage Door shall establish an Advisory Oversight Board dedicated to providing oversight to the operation of the Facility. The City Manager andlor hislher authorized designee shall be a member on the Advisory Oversight Board. ADMINISTRATION RECOMMENDATION The Administration recommends that the Mayor and City Commission of the City of Miami Beach, Florida adopt the Resolution and approve the attached Management Agreement between the City and Stage Door Theater for the Byron Carlyle Theater. T:\AGENDA\2011\4-13-1 I\Stage Door Agreement for Byron - Merno.doc RESOLUTION NO. A RESOLUTION OF THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND ClTY CLERK TO EXECUTE AN AGREEMENT BETWEEN THE ClTY AND BROWARD STAGE DOOR THEATER COMPANY, INC. FOR THE OPERATION AND MANAGEMENT OF A PORTION OF THE BYRON CARLYLE THEATER, PURSUANT TO REQUEST FOR PROPOSALS NO. 24-09/10; SAID AGREEMENT HAVING AN INITIAL TERM OF FlVE (5) YEARS, COMMENCING ON MAY I, 2011, AND ENDING ON APRIL 31, 2016, WITH AN OPTION TO EXTEND THE AGREEMENT FOR UP TO FlVE (5) ADDITIONAL YEARS (IN EITHER ONE YEAR OR MULTI-YEAR INCREMENTS, AS DETERMINED BY THE CITY), AT THE CITY'S SOLE DISCRETION. WHEREAS, the City purchased the Byron Carlyle Theater in 2001 and renovated the facility into a performance theater; and WHEREAS, the City's intent was for the Byron Carlyle to serve as a catalyst to the redevelopment of the 71'' Street corridor in North Beach; and WHEREAS, since reopening the Byron Carlyle in 2003, the City has subsidized the operating deficit of the facility; and WHEREAS, bookings at the Byron Carlyle have historically not been strong enough to activate the space and neighborhood regularly; and WHEREAS, the Neighborhoods and Community Affairs Committee, at its meeting on January 19, 201 0, unanimously recommended that the Administration issue a Request for Proposals for the management of the Byron Carlyle; and WHEREAS, on February 3, 2010, the Mayor and City Commission approved the issuance of Request for Proposals (RFP) No. 24-09/10 for the Management andlor Development of the Byron Carlyle Theater (the RFP); and WHEREAS, on October 27, 2010, the City Commission adopted Resolution No. 201 0-27538, authorizing the Administration to negotiate with Broward Stage Door Theater Company, Inc., as the top ranked proposer pursuant to the RFP; and WHEREAS, the City Manager recommends that the Mayor and City Commission approve the attached Management Agreement between the City and Broward Stage Door Theater Company, Inc. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND ClTY COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve the Agreement between the City and Broward Stage Door Theater Company, Inc. for the operation and management of a portion of the Byron Carlyle Theater, pursuant to Request for Proposals No. 24-0911 0, and authorize the Mayor and City Clerk to execute said Agreement, having an initial term of five (5) years, commencing on May 1,201 1, and ending on April 31,2016, with an option to extend the Agreement for up to five (5) additional years (in either one year or multi-year increments, as determined by the City), at the City's sole discretion. PASSED AND ADOPTED this day of ,2011. ATTEST: MAYOR: JMGIHFIMS T:\AGENDA\2011\4-13-1 l\Stage Door Agreement for Byron - Reso.doc WPRCI1IEDASrn I.. FORM & LANGUAGE ' 8 - - MANAGEMENT AGREEMENT BETWEEN THE ClTY OF MIAMI BEACH, FLORIDA BROWARD STAGE DOOR THEATER COMPANY, INC. FOR THE MANAGEMENT OF A PORTION OF THE BYRON-CARLYLE THEATER THIS AGREEMENT, is made and executed as of this day of ,201 1 (Effective Date), by and between the ClTY OF MlAMl BEACH, a municipal corporation organized and existing under the laws of the State of Florida whose address is 1700 Convention Center Drive, Miami Beach, Florida 33139 (City), and the BROWARD STAGE DOOR THEATER COMPANY, INC., a Florida not-for-profit corporation whose principal address is, 1922 N.W. 83rd Drive, Coral Springs, Florida 33071 (Stage Door). BACKGROUND City is the owner of the Byron Carlyle Theater (the Theater), located at 500 71'' Street, Miami Beach, Florida 33141 ; including that portion of the Theater that is subject to the Agreement and which is more particularly described and depicted in Exhibit "AY'attached hereto and made a part hereof (the "Facility"). Stage Door is a professional theatrical entertainment not-for-profit (501(c)3) company engaged in the business of producing live theatrical productions, and operating, maintaining, and managing live entertainment facilities, including operations and marketing services for such facilities. At its regular meeting on October 27, 2010, the Mayor and City Commission approved Resolution No. 201 0-27538, approving and authorizing the City Administration to negotiate an agreement with Stage Door, as the successful proposer pursuant to Request for Proposals No. 24- 0911 0, for the management of the Facility. City desires to engage Stage Door, and Stage Door desires to accept the engagement, to provide management services for the Facility on the terms and conditions set forth herein. NOW THEREFORE, recognizing the aforestated recitals as true and correct and incorporating herein, and in consideration of the mutual covenants and conditions herein contained, it is agreed by the parties hereto as follows: SECTION 1. Definitions. For purposes of this Agreement, the following terms have the meanings referred to in this Section 1 : "Affiliate(s)" -- an entity that directly or indirectly, through one or more intermediaries, controls or is controlled by, or is under common control with, a specified entity. For purposes of this definition, "control" means ownership of equity securities or other ownership interests which represent more than 51 % of the voting power in the controlled entity. ''W -- as defined in the first paragraph of this Agreement. "City Commission" -- the governing and legislative body of the City. "Citv Aareements" -- those existing agreements between the City and a third party relating to the Facility that are listed on Exhibit "B." "Citv Manager" -- the chief executive officer of the City or such person as may from time to time be authorized in writing by such administrative official to act for himlher with respect to any or all matters pertaining to this Agreement. "Commencement Date" -- as defined in Section 2. "Contract Year" - each one year period beginning May I St, and ending April 3oth "Effective Date" - provided that this Agreement has been approved by the City Commission and executed by City and Stage Door, the date as defined in the first paragraph of this Agreement. "Event" - -- all uses which involve a scheduled beginning and ending time, typically all within the same day (or for evening Events, typically commencing in the evening and concluding before 1:00 a.m. of the succeeding day unless otherwise approved in writing by City Manager). With respect to a "Run" (as such term is hereafter defined), each show within the Run shall constitute an Event. "Event Ex~enses" -- any and all expenses incurred or payments made by Stage Door in connection with the occurrence of an Event at the Facility, including, but not limited to, costs for staffing (including ushers, ticket takers, security and other Event staff) and costs relating to set-up and clean-up. "Expiration Date" -- as defined in Section 2. "Facility" -- as defined in the Background Section of this Agreement and as depicted in Exhibit "A hereto. "Fiscal Year" -- each one year period beginning July lSt and ending June 3oth. iiGovernmental Reauirements" -- all laws, ordinances, rules, regulations, statutes, policies and procedures (including administrative guidelines), and other legal requirements of any governmental body or authority or any agency thereof (including, without limitation, federal, State, County, and municipal). "Staae Door" -- as defined in the first paragraph of this Agreement. "Net O~eratina LossIProfit" --with respect to a Fiscal Year, the excess, if any, of Operating Expenses for such Fiscal Year over Operating Revenues for such Fiscal Year, in the case of a loss, and the excess, if any, of Operating Revenues for such Fiscal Year over Operating Expenses for such Fiscal Year, in the case of a profit. "Operating Expenses" -- any and all expenses and expenditures of whatever kind or nature incurred, directly or indirectly, by Stage Door in promoting, operating, maintaining, insuring and managing the Facility, including, but not limited to: employee compensation and related expenses (e.g., base salaries, bonuses, severance and car allowances), employee benefits and related costs (e.g., relocation and other related expenses pursuant to Stage Door's relocation policy, parking and other fringe benefits), supplies, materials and parts costs, costs of any interns and independent contractors, advertising, all costs of maintaining the Facility as required by this Agreement, marketing and public relations costs and commissions, janitorial and cleaning expenses, data processing costs, dues, subscriptions and membership costs, amounts expended to procure and maintain permits and licenses, sales taxes imposed upon ticket sales or rentals, special assessments imposed upon the Facility by any governmental entity, professional fees directly relating to the operation of the Facility, printing and stationery costs, Event Expenses, postage and freight costs, equipment rental costs, computer equipment leases and line charges, telephone switch and telecommunications services, repairs and maintenance costs (e.g., elevators and HVAC), artist and talent fees, costs, and expenses, show settlement charges, security expenses, travel and entertainment expenses in accordance with Stage Door's normal policies, the cost of employee uniforms, safety and medical expenses, exterminator and waste disposal costs, costs relating to the maintenance of signage inventory and systems, the cost of compliance with Governmental Requirements, all utility costs, all premiums for insurance carried by Stage Door pursuant to Section 14, and all other costs of operating and maintaining the Facility. Operating Expenses shall not, however, include any costs of litigation between City and Stage Door, or any other costs that are specified in this Agreement as costs to be paid by City. All Operating Expenses shall be determined in accordance with generally accepted accounting principles consistently applied and recognized on a full accrual basis. "Operating Revenues" -- any and all revenues of every kind or nature derived from operating, managing or promoting the Facility, including, but not limited to: license and concession fees, rentals, revenues from merchandise sales, advertising sales, equipment rentals, box office revenues, food service and concession revenues (however, if such revenues are collected in the first instance by and retained by the concessionaire, only the amount of such revenues paid by the concessionaire to the Facility shall be included as Operating Revenues), commissions or other revenues from decoration and set-up, security and other subcontractors (however, if such revenues are collected in the first instance by and retained by such subcontractors, only the amount of such revenues paid by such contractors to the Facility shall be included as Operating Revenues), miscellaneous operating revenues, revenues generated from separate agreements with Stage Door Affiliates pertaining to the Facility, sponsorship revenues, and interest revenues, all as determined in accordance with generally accepted accounting principles and recognized on a full accrual basis. For the sake of clarity, the parties acknowledge that revenues from the sale of tickets for Events at the Facility are not Operating Revenues, but are instead revenues of the promoter and/or performer of each such Event. To the extent that Stage Door collects such ticket sale revenue on behalf of a promoter and/or performer, such ticket sale revenue shall be the source of funds from which Stage Door collects the rental charges and other event reimbursements owed by the promoter and/or performer for use of the Facility, which such charges and reimbursements are Operating Revenues hereunder. Operating Revenues shall not, however, include any revenue from valet parking or any other parking charges with respect to the Facility or Events and shall not include any revenues from name-in-title rights (i.e., the right to name the Facility and signage related thereto), all of which are specifically reserved to City."Renewal Term" -- as defined in Section 2. "Run" - -- A sequence of performances of the same production. "Term" -- as defined in Section 2; provided, however, if this Agreement is extended for a Renewal Term, all references to "Term" contained herein shall also include the Renewal Term. SECTION 2. TERM. 2.1 Initial Term. This Agreement shall be for an initial term of five (5) years, - commencing on May 1,201 1 (Commencement Date), and ending on the April 30,201 6 (Expiration Date), unless earlier terminated pursuant to the provisions of this Agreement. 2.2 Renewal Term(s1. At its sole option and discretion, the City may extend this - Agreement for up to five (5) additional one (1) year terms, and/or multi-year terms, but in no event to exceed five (5) years in total, (each such one year term, or multi-year term, as the case may be, a Renewal Term), by providing Stage Door with not less than 365 days prior written notice prior to the Expiration Date, or the expiration date of a Renewal Term, as the use may be, and provided further that Stage Door has met all of the following conditions: (i) not less than 545 days nor more than 730 days prior to the Expiration Date, or not less than 545 days nor more than 730 days prior to the anticipated expiration date of the then current Renewal Term, Stage Door shall provide the City with written notice (the Exercise Notice) stating that Stage Door desires to exercise the renewal option for a Renewal Term. Time shall be of the essence with respect to the Exercise Notice and if Stage Door fails to provide the written notice, as and when required, the renewal option shall expire and shall not thereafter be exercisable; and (ii) both at the time that Stage Door delivers its Exercise Notice and at the time the Renewal Term (for which the option is being exercised) would otherwise commence, Stage Door shall not be in default under this Agreement; and (iii) Stage Door shall have achieved, complied with, and/or otherwise met all of the benchmarks set forth in Exhibit "C" hereto, no later than ninety (90) days prior to the Expiration Date, or within ninety (90) days of the expiration of the then current Renewal Term, as the case may be, and which compliance therewith by Stage Door shall be demonstrated and evidenced to the reasonable satisfaction of the City Manager or hidher designee. As to this condition (iii) only, in the event that Stage Door has not achieved with, and/or otherwise met all of the benchmarks in Exhibit "C" hereto within the prescribed time, or has not demonstrated sufficient evidence of compliance therewith (to the reasonable satisfaction of the City Manager or hislher designee), then the City Commission, at its sole option and discretion, may waive the requirements of condition (iii), and proceed to extend this Agreement. In the event the conditions of (i) through (iii) are not met, then this Agreement shall expire at the end of the Initial Term (i.e. on the originally stated Expiration Date), or upon expiration of the then current applicable Renewal Term, as the case may be, and the provisions of Section 31 hereof shall apply. 2.2.1 Notwithstanding anything in this Section 2, in the event Stage Door decides - not to renew the Agreement, it shall provide the City Manager with written notice of its intent not to renew at least 365 days prior to the Expiration Date, or the expiration date of the then current Renewal Term, as the case may be. SECTION 3. BYRON CARLYLE THEATER FACILITY. The Facility subject to this Agreement shall be those facilities and spaces more specifically described in Exhibit "A, attached and incorporated herein. Subject to the terms of this Agreement, Stage Door shall have the primary use and sole occupation of the Facility and shall be responsible for its management and maintenance, as further set forth herein. SECTION 4. OPERATION AND MANAGEMENT OF THE BYRON CARLYLE. 4.1 General Scope. City hereby engages Stage Door to operate, manage, maintain, - promote and market the Facility during the Term, upon the terms and conditions hereinafter set forth. 4.2 Manager of the Facility. Stage Door accepts the engagement and agrees to operate, - manage, maintain, promote and market the Facility in a manner consistent with other similar first class facilities. Subject to the terms of this Agreement, Stage Door shall be, as agent for the City, the sole and exclusive manager of the City to operate, manage, maintain, promote and market the Facility during the Term. In such capacity, except as otherwise expressly reserved under this Agreement to the City, andlor except for such matters as are subject to the approval of the City or City Manager, Stage Door shall have exclusive authority over the management and operation of the Facility and all activities therein, subject to subsections 4.2.1, 4.2.2 and 4.2.3 hereof. 4.2.1 Permitted Uses. Stage Door shall use the Facility solely and exclusively as - the headquarters for its not-for-profit live theatrical production company. The Facility shall be used only as a live theatrical entertainment venue and public auditorium, or any combination thereof, and for such ancillary uses as are customarily related to such primary use, including, without limitation, broadcasting, recording, filming, private parties or functions, food and beverage concessions, in each case in conjunction with an Event or rental function then being held; and sale of merchandise related to any Event then being held. The Facility does not include dedicated parking for the building. Patrons of Events may park in public parking lots and garages if and to the extent available, upon paying the applicable parking charges. Such uses shall include only the following (the "Permitted Uses"): aJ Performance theater; Carpentry shop; Carpentry and set storage; Theatrical equipment storage; Rehearsal space; fi Stage Door's administrative offices; g) Cafeteria for Stage Door's employees; hJ Food and beverage concession; u Sale of merchandise related to an Event then being held; il Private parties and/or functions in conjunctions with an Event then being held; kJ As an ancillary use, third party rentals as may occur from time to time. No other uses shall be permitted without the prior written approval of the City Manager, which approval may be granted or withheld in hidher sole discretion. Any such other use which the City Manager approves must, however, be in accordance with (i) the Articles of Incorporation and other charter documents of Stage Door; (ii) all laws and regulations applicable to not-for-profit entities; (iii) all applicable Governmental Requirements; and (iv) all ad valorem tax exempt uses of property under Chapter 196, Florida Statutes. 4.2.2 Prohibited Uses. It is understood and agreed that the Facility shall be used - by Stage Door during the Term only for the stated purposes in subsection 4.2.1, and for no other purposes or uses whatsoever. Notwithstanding anything contained in subsection 4.2.1, or any other term or condition of this Agreement: (1) Stage Door will not make or permit any use of the Facility that, directly or indirectly, is forbidden by any Governmental Requirement, or that may be dangerous to life, limb or property; and (2) Stage Door may not commit waste on the Facility, use the Facility for any illegal purpose, commit a nuisance on the Facility, or allow any toxic, hazardous or dangerous substance to be brought into the Facility or stored therein (other than small quantities of materials customarily used in the operation of a live theatrical performance venue, which shall be used and stored in compliance with applicable law). In the event that Stage Door uses the Facility for any purposes not expressly permitted herein, then the City through its City Manager may declare this Agreement in default and, in addition to all other remedies available to City, restrain such improper use by injunction or other legal action, with or without notice to Stage Door. 4.3 Cessation/Suspension of Approved Use(s) and/or Business Activity(ies1. - Notwithstanding anything contained in this Agreement, and except for the Permitted Uses expressly set forth in subsection 4.2.1 (a) - (k), in the event that another particular use($ and/or business activity(ies) has been approved by the City Manager, and the City Manager thereafter, upon reasonable inquiry, determines that the continuation of such use@) and/or activity(ies) is, or may be, inconsistent, contrary to, and/or detrimental to the Permitted Uses set forth in this Agreement, andlor to the health, safety andlor welfare of the residents of and visitors to the City of Miami Beach, then the City Manager, upon thirty (30) days prior written notice to Stage Door of same, may revoke, suspend, andlor otherwise disallow the objectionable uses(s) andlor business activity(ies), and Stage Door shall immediately cease and desist in providing, andlor continuing with, said use(s) andlor business activity(ies) within the time period and in the manner prescribed in the City's notice. In the alternative, the City Manager and/or his designee may allow Stage Door to continue with the subject use(s), or business activity(ies), subject to such additional guidelines, as may be determined and established by the City Manager, in hislher sole and reasonable discretion and judgment. SECTION 5. SCOPE OF SERVICES. 5.1 General. Stage Door shall perform and furnish management services, personnel, - and systems and materials, as are appropriate or necessary to operate, manage, supervise, maintain, promote and market the Facility in a manner consistent with the operations, management, promotions and marketing of other similar first-class facilities. 5.2 Reauired Number of Events; Continuous Operation; Conclusion of Events. In order - to ensure the continuous operation of the Facility, and commencing on the May 1,201 2, Stage Door shall cause at least 200 Events to be held at the Facility for each Contract Year (and proportionately for any partial Contract Year) during the Term. The aforesaid 200 Events shall be calculated by counting each separate Event in a Run. Notwithstanding the preceding sentence, and the City's acknowledgment that, during the first Contract Year (i.e. May 1,201 1 -April 30,2012) Stage Door may require start-up time within which to promote and advertise its first season, Stage Door shall cause at least 75 Events to be held at the Facility for the first Contract Year. Stage Door shall cause the Facility to be open on a year round basis, subject to closures for reasonable periods for rehearsal, set design, repairs, maintenance and alterations. All Events and all rentals shall conclude prior to 1:00 a.m. unless otherwise approved by the City Manager, in writing; provided, however, that Stage Door's employees andlor contractors may be permitted to remain at the Facility beyond 1 :00 AM in the event that same is necessary for purposes of taking down andlor dismantling a production, cleaning the Facility after a performance, etc., so long as Stage Door's activities at the Facility during this time do not disrupt andlor negatively impact the surrounding neighborhood. In the event of such disruption, the City Manager and/or hislher designee shall have the right to either strictly enforce the hours of operation, or impose reasonable guidelines upon Stage Door as a condition to keeping the Facility open for the aforestated purposes (beyond 1.00 AM). Booking Policies. The City and Stage Door agree and acknowledge that the Facility must primarily be used by Stage Door to produce and present in-house live theatrical productions, but that Stage Door may also, from time to time, rent the Facility to third party presenters consistent with the terms herein. In booking the Facility, Stage Door will use such booking policies as are established by the City and provided in Exhibit "Dm hereto. Except as otherwise provided herein, Stage Door 2 shall have the sole authority to approve the scheduling of any Event in the Facility and Events requiring or having co-promotions. Stage Door shall have no obligation, however, to book any type or category of Events (or specific Event) that are unprofitable, as reasonably determined by Stage Door. Notwithstanding the preceding, or any other term or condition of this Agreement, the City Manager shall have the right to prohibit certain Events or uses from occurring at the Facility, upon the City Manager's reasonable determination that such Event or use might present unreasonable safety concerns, or violate (or otherwise not comply with) Governmental Requirements. Notice of any such determination shall be sent by written notice to Stage Door within thirty (30) days after the City Manager has received the quarterly booking report from Stage Door that specifies the potential Event. Attached hereto as Exhibit "E" is a list of Events or rentals which have been booked priorto the date of approval of this Agreement by the Mayor and City Commission (the Approval Date). Stage Door shall honor all such bookings and City shall remit to Stage Door all rental revenues (if any) from the agreements that have already been booked prior to the Approval Date. 5.3 Specific Services. Without limiting the generality of the foregoing, Stage Door shall - perform all of the following services, all without the necessity of first obtaining City's approval (except where otherwise expressly required in this Agreement), and all of which shall be performed by Stage Door in a manner consistent with the management and operation of other similar first class facilities: 5.3.1 employ, supervise, and direct all employees and personnel consistent with - the provisions of this Agreement. All employees shall be employees of Stage Door, its Affiliates or third parties, and not of City. Stage Door shall be solely responsible for assuring that the Facility is adequately staffed with competent, qualified personnel to fulfill its responsibilities under this Agreement; 5.3.2 administer relationships with all third parties (including, without limitation, - entering into contracts and licenses for the food and beverage concessionaire at the Facility) for the use, maintenance and operation of the Facility, initiate and participate in any and all negotiations, renewals and extensions relating to such third party relationships, and enforce contractual agreements concerning any such third party relationships; 5.3.3 negotiate, execute in its name as agent for the City, deliver and administer - any and all licenses, occupancy agreements, sponsorship agreements (excluding name-in- title agreements), rental agreements, booking commitments, concession agreements (excluding valet parking agreements), supplier agreements, service contracts (including, without limitation, contracts for cleaning, decorating and set-up, emergency services, general maintenance and maintenance and inspection of HVAC and other systems and elevators, stage equipment, fire control panel and other safety equipment, staffing and personnel needs, including guards and ushers, telephone, extermination and other services which are necessary or appropriate, and all other contracts and agreements in connection with the management, maintenance, promotion and operation of the Facility; provided that (1) if any such license, agreement, commitment or contract has a term that extends beyond the remaining Term, such license, agreement, commitment or contract shall provide that it is automatically assigned to City as of the expiration or termination date of this Agreement and that the City Manager may terminate any such agreement without payment thereafter at any time upon not less than ten (10) days written notice; (2) Stage Door shall have the sole authority to approve the scheduling of any Event to be held at the Facility, subject to the limitations and requirements of this Agreement; and (3) any contract entered into between Stage Door and a subsidiary and/or Affiliate company shall be at terms and for prices customarily charged by such subsidiary and/or Affiliate company for comparable goods and services elsewhere at rates that are competitive within the industry; 5.3.4 maintain the Facility (including, without limitation, all structural components - thereof and all electrical, HVAC, life safety, mechanical, plumbing and other systems and equipment) in a good and clean condition consistent with other similar first class facilities and in compliance with all Governmental Requirements, ordinary wear and tear, and casualty loss excepted. Maintenance responsibility shall include, without limitation, preventative and any and all other maintenance and as required in Exhibit "F" to this Agreement (entitled "City of Miami Beach Minimum Specifications for Maintenance of the Miami Beach Byron Carlyle Theater"). Stage Door shall maintain in full force and effect service contracts with qualified and licensed service providers with respect to HVAC, roof and elevator systems unless Stage Door warrants and represents to City Manager, in writing, that Stage Door has sufficient trained and qualified employees (in each case with not less than one year's experience) to maintain such systems and that any warranties will not be voided as a result thereof. Stage Door shall keep on-site maintenance manuals and records reflecting all of Stage Door's maintenance activities, all of which shall be available for inspection by the City Manager upon request. Stage Door shall submit to City Manager periodic (not less than quarterly) reports specifying all maintenance work performed during such period, which reports shall be used by the City's Property Management Division (or its consultant) as part of an annual City maintenance inspection and review. Stage Door warrants and represents to City that, prior to the Effective Date, Stage Door inspected the Facility, and Stage Door hereby accepts the Facility "as-is, where-is and with all faults." 5.3.5 rent, lease, or purchase all equipment and maintenance supplies necessary - or appropriate for the operation and maintenance of the Facility; 5.3.6 establish and adjust prices, rates and rate schedules for the aforesaid - licenses, agreements and contracts, and any other commitments relating to the Facility to be negotiated by Stage Door in the course of its management, operation, booking and promotion of the Facility; provided, however, that Stage Door shall, on or before the Commencement Date, submit its proposed initial rates and rate schedule to the City Manager for hisfher review and approval (which reviewfapproval shall not be unreasonably withheld, conditioned or delayed) and, thereafter Stage Door shall consult with the City Manager about any adjustments to the rates and rate schedules at the Facility to be made by Stage Door, prior to Stage Door's implementation of same; 5.3.7 pay when due, on behalf of the City, all Operating Expenses from Stage - Door's own funds; 5.3.8 after consultation with the City Manager and the City Attorney, and subject to - approval by the City Attorney or his designee, institute as agent for the City, the costs of which shall be included as Operating Expenses, such legal actions or proceedings necessary or appropriate in connection with the operation of the Facility (using legal counsel approved by the City Attorney), including, without limitation, to collect charges, rents or other revenues due to the City or to cancel, terminate or sue for damages under, any license, use, advertisement or concession agreement for the breach thereof or default thereunder by any licensee, user, advertiser, or concessionaire at the Facility; institute on Stage Door's own behalf (and not as agent for City) without consultation or approval of the City, the costs of which shall be included as Operating Expenses, such legal actions or proceedings necessary or appropriate in connection with the operation of the Facility, including, without limitation, to collect charges, rents or other revenues due to the City or Stage Door or to cancel, terminate or sue for damages under, any license, use, advertisement or concession agreement for the breach thereof or default thereunder by any licensee, user, advertiser, or concessionaire at the Facility; 5.3.9 maintain a master set of all Event records, booking records and schedules for - the Facility (which shall be available for inspection by the City Manager upon request); 5.3.10 provide day-to-day administrative services in support of its management activities to ensure that the Facility shall be operated, managed, and maintained and performed in a first class manner consistent with similar first class facilities including, but not limited to, acquisition of services, equipment, supplies and facilities; maintenance and property management; personnel management; record-keeping; collections and billing; and similar services; 5.3.1 1 engage in advertising, solicitation, and promotional activities necessary to effectively market the Facility and Events. In connection with its activities under the terms of this Agreement, Stage Door will be permitted to use the logo and brand identity of the City of Miami Beach, and of the Facility, as approved by the City Manager; 5.3.12 operate the Facility's telephone switch and telecommunications services; 5.3.13 act as a collection agent for the City on sales taxes from operation of the Facility and remit to the State of Florida such sales taxes; 5.3.14 comply with all City Agreements; 5.3.15 Except as otherwise approved by the City Manager, Stage Door shall not license or allow the use of any portion of the Facility to other than short-term users (i.e., less than sixty (60) consecutive days). Stage Door shall require that all users of the Facility provide certificates of insurance evidencing appropriate insurance and any other insurance required by the applicable license, use or occupancy agreement. Copies of these certificates shall be furnished to the City Manager prior to any Event or use. Such insurance shall be kept in force at all times by all licensees, users, lessees and concessionaires. All liability policies shall name the City and Stage Door as additional insureds. Stage Door shall also require all users of the Facility to execute (among the terms of the license or occupancy agreement) an agreement to indemnify, defend and hold harmless the City. Stage Door's standard license or occupancy agreement shall, at a minimum, include the insurance and indemnity requirements contained herein; shall further be subject to the prior review and approval of the City Manager and City Attorney's Office; and - if and when approved -shall be attached as Exhibit "G" hereto. 5.3.16 Free Com~limentarv Tickets. City shall be entitled to receive fourteen (14) - complimentary tickets for each Run at the Facility that is open to the general public, including those presented or promoted by Stage Door and including third party rentals subject to the provisions of this Agreement. City may not engage in the sale or re-sale of the complimentary tickets. Under no circumstances shall City be entitled to "roll over" or "carry forwardJJ any unused or un-retrieved complimentary tickets; such that, in case of any Event for which City neglects or otherwise fails to secure the complimentary tickets for any reason other than Stage Door's failure to comply with its obligations under this subparagraph, including reasons that were completely outside the parties' reasonable control, then, City shall be deemed irrevocably to have waived its right or entitlement to those particular complimentary tickets and City shall not be entitled to any remuneration for any lost opportunity. Stage Door shall have sole and exclusive control over seating location decisions for complimentary tickets so long as the complimentary tickets are seats within the top 30% tiered price level (and thus the location may change from Event to Event). On or prior to the Commencement Date, Stage Door shall provide a contact to the City from whom the City can conveniently secure the complimentary tickets. 5.3.1 7 Resident Ticket Program. Stage Door shall operate a discount ticket program - available only to City of Miami Beach residents (meaning individuals who permanently reside in the City of Miami Beach), by which a ten percent (10%) discount off of the full face value pricing shall be made available to such City of Miami Beach residents ("Resident Tickets") in advance of ticket sales to the general public. Stage Door reserves the right to require proof of City residency including, but not limited to, government photo ID, utility bill, school ID or other similarly credible indicia of residency. For these purposes, the foregoing Resident Tickets shall be subject to the following rules: 1) Resident Tickets shall be made available to City of Miami Beach residents at least two (2) calendar days preceding the date upon which tickets first go on sale to the general public and shall remain available for the full duration of the sale period; 2) All tickets shall be sold on a first come, first served basis and shall be available at the Facility box office; 3) The type and location of seating for all tickets shall be determined by Stage Door, in its sole discretion, but shall include a full range of all ticket prices; and 4) Stage Door shall have the right to promulgate additional reasonable rules concerning such sales so long as same are consistent with the terms hereof to assure the efficient operation of the program and compliance with these terms and conditions. 5.3.1 8 Stage Door shall operate a ticket program available to children under the age of twelve (12) years old by which tickets will be sold for sixteen dollars ($1 6). 5.3.19 If it is financially feasible, Stage Door shall, in its sole and reasonable discretion, develop, market, and operate a summer camp program for children in musical theater, stage production, andlor theatrical stage set design. Programs may include writing, directing and acting, and performing in a musical production. Summer camp programs may be offered in 4 and 8 week sessions to children of all ages. 5.3.20 Stage Door shall create and promote a free Young Ambassador Program for Miami Beach students with an interest in the performing arts in order to create a first person perspective of their experiences in theater and the arts. Selected students will contribute to establishing a vital informational link to their peers regarding the arts both locally and nationally. In addition, the ambassadors will attend performances presented by Stage Door, free of charge, in order to expand their interest in the arts, and be asked to provide reviews for postings on social media sites such as Facebook, Twitter, etc. Ambassadors will receive community service hours for their participation in the Program. 5.3.21 Stage Door shall participate in Golden Ticket and Culture Shock programs offered by Miami-Dade County. 5.3.22 Stage Door shall participate in "Sleepless Night" and offer a FREE performance(s) during the event. If at any time during the Term of this Agreement, the City, in its sole discretion, determines not to produce andlor sponsor "Sleepless Night," then Stage Door's obligation in this subsection shall apply to any such successor event, as the City may determine, in its sole discretion. SECTION 6. COMPENSATION TO THE CITY FOR USE OF THE FACILITY (USE FEE). 6.1 Base Use Fee. For the Term of the Agreement, Stage Door shall pay City a nominal - annual Use Fee for the right to use the Facility, in the amount of One Dollar ($1.00), which shall be payable in advance without demand, commencing on the Commencement Date and thereafter on the first day of each Contract Year. If the Commencement Date occurs on a day other than the first day of a calendar month, the first Contract Year shall include the partial month on which the Commencement Date occurs and the following twelve (12) calendar months. The Base Use Fee (and all other amounts due hereunder) shall be paid to City in legal tender of the United States of America at the following address: Tourism and Cultural Development Department, 1700 Convention Center Drive, Miami Beach, Florida 331 39; or at such other place that City may from time to time designate by notice in writing. 6.2 Additional Fees and Charne. In addition to the Base Use Fee as set forth in - subsection 6.1, Stage Door shall also be responsible for payment of the following Additional Fees and Charges: 6.2.1 Taxes; Imposition. Stage Door shall be responsible for all property tax - payments, taxes and impositions. The parties anticipate that the Byron Carlyle Theater is tax exempt; however, in the event that any property tax payment (or any other tax and/or imposition) is required in connection with the Facility, or in connection with Stage Door's use of the Facility and its operations thereon, then Stage Door shall be solely responsible for such payment(s). 6.2.2 Operating Expenses. Stage Door shall pay all costs and expenses related to - Operating Expenses. Stage Door hereby irrevocably and unconditionally guarantees to the City that Operating Revenues shall at all times be sufficient to pay as and when due all Ope,rating Expenses and any and all other amounts that Stage Door is obligated to pay pursuant to this Agreement, and further covenants and agrees that if at any time there are insufficient Operating Revenues to pay all of the foregoing amounts, as and when required, Stage Door shall immediately pay the difference from Stage Door's own funds. This obligation is absolute and unconditional and shall even apply if Operating Revenues are reduced or limited by facts or circumstances not contemplated by the parties or for reasons beyond the parties' control. The provisions of this Section 6.2.2 shall survive any termination or expiration of this Agreement. 6.2.3 Establishment and Use of Capital Fund; Contributions. To help defray the - cost of certain major capital repairs and replacements to the Facility (including, without limitation, all structural components thereof, and all HVAC, life safety, mechanical or other systems, plumbing and sewer lines, roof, etc.), Stage Doorshall make annual contributions to a fund (the "Capital Fund") to be held and disbursed by City, at the sole and reasonable discretion of the City Manager and hislher designee. The annual contribution shall be Five Thousand Dollars ($5,000) for each Contract Year throughout the Term. Contributions to the Capital Fund shall be made in equal monthly installments, commencing on the Commencement Date, and shall be due on or before the first day of each calendar month thereafter throughout the Term. All disbursements from the Capital Fund shall be subject to the approval of the City Manager. The Fund shall be divided into a Capital Sub-Account. The Sub- Account shall be held in an interest-bearing bank account established by the City with all interest being added to, and constituting a part of, the applicable Sub- Account. Nothing in this Section 6.2.3 shall limit Stage Door's obligation to maintain the Facility as required by this Agreement. The Capital Fund is intended only to address specific major capital repairs and improvements and such items are not all-inclusive. Additional work and additional funds will be required. Notwithstanding the preceding paragraph, or this subsection 6.2.3, Stage Doorshall not be responsible for paying for major capital improvements or infrastructure within the Facility. 6.2.4 Sales Tax. Stage Door shall pay and include any and all additional sums for - applicable sales and use tax, now or hereafter prescribed by State, federal or local law, concurrent with and to the extent any sales tax is imposed in connection with any payment due hereunder by Stage Door. SECTION 7 - INTENTIONALLY OMITTED SECTION 8. RIGHTS RESERVED TO CITY 8.1 Riahts of Entry. Representatives, contractors and employees of the City shall have - the right to enter all portions of the Facility to inspect same, to observe the performance of Stage Door of its obligations under this Agreement, to install, remove, adjust, repair, replace or otherwise handle any equipment, utility lines, or other matters in, on, or about the Facility, or to do any act or thing which the City may be obligated or have the right to do under this Agreement. Nothing contained in this subparagraph is intended or shall be construed to limit any other rights of the City under this Agreement. The City shall not unreasonably interfere with the activities of Stage Door hereunder, and the City's actions shall be conducted such that disruption of Stage Door's work shall be kept to a minimum and there shall be no disruption of any Event by City (the City's actions in its proprietary capacity of the foregoing, shall not diminish any rights of City in its governmental capacity). Nothing in this subsection shall be construed to impose upon the City any independent obligation to make repairs, replacements, alterations, additions or improvements or perform any maintenance or create any independent liability for any failure to do so. 8.2 Valet Parkinq. City reserves to itself and its contractors and designees (i) all rights to - provide valet parking to the Facility, and (ii) all proceeds from the valet parking operations. City and its contractors and designees shall have the right to use the driveway entrance and areas located outside the entrance to the Facility for the valet parking operations, and Stage Door shall not interfere with valet parking operations. Stage Door may pre-purchase parking controlled by the City or pre-purchase valet parking. The City Manager shall have the authority to negotiate and enter into such agreements with respect thereto, as the City Manager deems acceptable. If the City exercises its right to provide valet parking to the Facility, then Stage Door shall have no right to provide valet parking or to contract with other parties for valet parking with respect to the Facility. However, if the City chooses not to offer valet parking services at the Facility, then Stage Door shall have first right of refusal to provide valet parking or to contract with a third party for valet parking at the Facility, at Stage Door's sole cost and expense. 8.3 Sianane. The following provisions shall govern the name-in-title rights, interior - naming rights, and the related signage rights with respect to the Facility: 8.3.1 Name-in-Title Rinhts; Exterior Sianane. City reserves the name-in-title rights (i.e., the - right to name the Facility) and all revenue derived therefrom. Notwithstanding the preceding sentence, Stage Door shall be permitted to change the name of the Facility to "Miami Beach Stage Door Theater" if and only if the City Commission approves and adopts an ordinance amending Chapter 82, Article VI, Sections 82-501 through 82-505, as same may be amended from time to time (hereinafter, the "City's Naming Ordinance"), exempting the Facility from the requirements of the City's Naming Ordinance. Stage Door shall own and retain all ownership rights to the name "Miami Beach Stage Door Theater;" provided, however, that, throughout the Term (or other duration) of this Agreement, Stage Door does herebv grant, permit, and consent to the Citv's right to use landlor reproduce) the "Miami Beach Stage Door Theater" name, at no charge, for purposes consistent with the intent and stated uses of the Agreement including, without limitation, for the purpose of identifving and promoting the Facilitv, and/or for such other public purposes as the Citv Manager, in hidher sole and reasonable discretion, mav deem necessarv. In the event that this Agreement is terminated and/or otherwise expires, then the Citv shall discontinue the use of the name "Miami Beach Stage Door Theater" for the Facilitv, effective contemporaneous with the date that Stage Door ceases to manaqe and operate the Facilitv. Notwithstanding the preceding paragraph, the City Commission's consent and approval shall be required if Stage Door seeks to change the name of the Facility to anything other than "Miami Beach Stage Door Theater," and any such name change must be approved by a 517 vote of the City Commission. Stage Door agrees that if the name-in-title is changed to "Miami Beach Stage Door Theater," Stage Door shall bear all costs (as part of Operating Expenses) to obtain and install new signage and to remove the existing signage. Further, if the name-in-title is approved, as stated herein, Stage Door agrees to utilize the full name of the Facility in its publications, advertising, promotions, websites, announcements, and other similar and related materials referring solely to the Facility, unless the use of the full name-in-title is otherwise unfeasible due to size or space limitations on such publications, advertising, promotions, websites, announcements, and other similar and related materials, or outside of its direct control. All exterior signage shall be subject to the City Manager's prior written approval as to size, location, materials and aesthetics. Stage Door shall have no right to install any other signage on the exterior of the Facility, except that Stage Door may use the existing marquis sign to advertise upcoming Events. 8.3.2 lnterior Namin~ Rights; lnterior Signage. Stage Door shall be entitled to all - permanent (meaning for a specific area such as a VIP lounge together with a duration in excess of twelve (1 2) months) interior signage (and all proceeds derived therefrom shall be Operating Revenues); provided, however, that the names affixed thereon (including, without limitation, any sponsorship names) are subject to the City Manager's prior written approval, which shall not unreasonably be withheld, conditioned or delayed. In no event may any such signage include the names of any company selling the following types of products ("Prohibited Names"): guns, tobacco or sexual products. Nothing contained herein shall preclude Stage Door from allowing sponsors from using temporary banners and temporary signage within the Facility with respect to any Event, so long as the banners and signage do not include any Prohibited Names. Stage Door shall be entitled to all interior signage (and all proceeds derived therefrom shall be Operating Revenues). 8.3.3 General Reauirements. All signage (whether interior, exterior, permanent andlor - temporary) shall comply with all applicable Governmental Requirements, and shall be maintained by Stage Door in good condition. SECTION 9. NON-FUNDING BY CITY. 9.1 City shall have no obligation to provide funds for the payment of Operating Expenses. - 9.2 City will have no funding or other payment obligations with respect to the Facility or its - Operating Expenses or its operations other than the costs which the City has specifically agreed to pay under the terms of this Agreement. Additionally, Stage Door and City have entered into this Agreement with the expectation and belief that, as of the Effective Date, no governmental body will impose any ad valorem taxes upon the Facility nor any sales, income, excise or other taxes. Notwithstanding the preceding sentence, the City makes no representation to Stage Door - either express or implied -that any or all of such taxes may or may not be imposed at any time during the Term of this Agreement. SECTION 10. RECEIPTS AND DISBURSEMENTS. 10. Stage Door shall establish and maintain in one or more depositories, one or more - operating, payroll and other bank accounts for the operation and management of the Facility, as Stage Door shall determine. All Operating Revenues collected by Stage Door from the operation of the Facility shall be deposited into the accounts and all Operating Expenses shall be paid by Stage Door as agent for the City from the accounts. Any amounts remaining in the operating accounts upon expiration or termination of this Agreement for any reason, after payment of all other amounts that Stage Door is required to pay under this Agreement through the date of expiration or termination, shall be promptly paid to Stage Door. SECTION 11. ALTERATIONS, MAINTENANCE, AND REPAIRS. 11 .I Stage Door shall not make any additions, improvements, or alterations (collectively - "Alterations") to the Facility without the City Manager's prior written consent. The costs of all Alterations made by Stage Door shall be borne solely by Stage Door from its own funds and shall not constitute Operating Expenses. The City Manager shall not unreasonably withhold, condition or delay hislher consent to any Alterations except that the City Manager may withhold consent, in hislher sole and absolute discretion, with respect to any Alterations that change the structural elements or life-saving systems or that affect the exterior of the Facility; Notwithstanding anything to the contrary, however, Stage Door shall not under any circumstances be permitted to make any Alterations that: (i) adversely affect the structural portions of the Facility, or (ii) fail to comply with any applicable Governmental Requirements; or (iii) interfere in any material manner with the proper functioning of any mechanical, electrical, plumbing, HVAC, life safety or other systems, facilities or equipment of the Facility. Except as required pursuant to Section 5.4, it is understood by the parties hereto that the Stage Door shall not be responsible, nor required to pay for, any other costs related to capital improvements or infrastructure (i.e. including, but not limited to, plumbing and sewer lines, major electrical, structural, HVAC, roof, etc.) with regard to the Facility. I 1.2 Stage Door shall obtain all required permits for Alterations performed by, through or - under Stage Door and shall perform or cause to be performed such Alterations in compliance with all Governmental Requirements. Under no circumstances shall Stage Door make any Alterations which incorporate any Hazardous Substances including, without limitation, asbestos-containing construction materials, into the Facility. Any request for City Manager's consent to any proposed Alterations by, through or under Stage Door shall be made in writing and shall contain plans or other written materials describing the work in detail reasonably satisfactory to City Manager, provided that architectural plans shall not be required unless required for the issuance of a building permit. City Manager shall provide or deny consent within twenty (20) business days following receipt of Stage Door's written request, the failure to provide or deny consent within such twenty (20) business day period shall be deemed a consent. Should the work proposed by Stage Door and consented to by City Manager modify the basic floor plan of the Facility and the building permit therefor require architectural plans, then Stage Door shall, at its expense, furnish City with as-built drawings and CAD disks for such work. Unless City Manager otherwise agrees in writing, all Alterations made or affixed to the Facility (excluding moveable trade fixtures, equipment, personal property and furniture) (including without limitation, all upgrades constructed pursuant to subparagraph (b)), shall become the property of City and shall be surrendered with the Facility at the expiration or termination of this Agreement. With respect to Alterations costing in excess of $200,000 City Manager may require Stage Door to obtain a payment bond for the work. 11.3 Maintenance. The Stage Door shall, at its sole cost and expense, have sole - responsibility for maintenance and repair of all facilities, improvements, and facilities and utilities infrastructure equipment at the Facility. Stage Door shall, at its sole cost and expense, and to the satisfaction of the City, keep and maintain the Facility, and all improvements thereon, in good, clean, and sanitary order. Stage Door shall, at its sole cost and expense, have the sole responsibility for maintaining the grounds of the Byron Carlyle Theater. To that end, the parties herein acknowledge, and Stage Door herein agrees to be bound by, the minimum maintenance standards set forth in Exhibit "F" to this Agreement, entitled "City of Miami Beach Minimum Specifications for Maintenance of the Miami Beach Byron Carlyle Theater." It is further understood that Stage Door shall provide the City with a quarterly maintenance report, in a format to be approved by the City Manager. 11.4 Personal Propertv. A list of City owned personal property included in the - Agreement for use by Stage Door during the Term hereof is attached and incorporated herein as Exhibit "H". Stage Door hereby accepts such equipment in its "as-is" condition, and without any warranty(ies), whether express or implied, by the City. Stage Door shall maintain all City owned equipment and, at its sole cost and expense, acquire and maintain all replacement and such other equipment as may be necessary to maintain the Facility in a condition which satisfies those maintenance standards set forth in Exhibit "G", but shall not have an obligation to improve the condition of the personal property beyond the "as-is" condition in which it was accepted, all of which shall be noted on the inventory. Stage Door shall have the right, at the initial inventory and at any point thereafter, to decline the use and responsibility for any personal property not useful for its operation of the Facility, and may turn such personal property over to the City in the condition in which it was accepted. The City shall have the right to periodically take an inventory of any or all City-owned equipment at the Facility. SECTION 12. RECORDS, AUDITS AND REPORTS. 12.1 Records and Audits. - 12.1 .I Stage Door shall keep full and accurate accounting books and records relating to all Operating Revenues and Operating Expenses, all in accordance with generally accepted accounting principles. Stage Door shall give the City's authorized representatives access to such books and records during reasonable business hours and upon reasonable advance notice. All books and records shall be made available on-site at the Facility or electronically. Stage Door shall keep and preserve for at least three (3) years following each Fiscal Year, or for as long as such records are required to be retained pursuant to Florida Public Records Law (whichever is longer), all sales slips, rental agreements, purchase order, sales books, credit card invoices, bank books or duplicate deposit slips, and other evidence of Operating Revenues and Operating Expenses for such period. In addition, on or before 120 days following each Fiscal Year (commencing [FILL IN] ), Stage Door shall furnish to the City a line item (i.e., by categories) statement of Operating Costs and Operating Revenues (and profit or loss) for the Facility for the preceding Fiscal Year, and including the number of tickets sold and Events held, prepared in accordance with generally accepted accounting principles certified as accurate by Stage Door's Chief Accounting Officer or Chief Financial Officer. 12.2 The City Manager shall have the right at any time, and from time to time, to - cause independent auditors or the City's own accountants or auditors to audit all of the books of Stage Door relating to Operating Revenues, Operating Expenses, tickets and Events including, without limitation, cash register tapes, credit card invoices, duplicate deposit tapes, and invoices. No costs incurred by the City in conducting such audit shall be considered an Operating Expense. 12.3 Annual Plan. Commencing upon May 1, 2012, Stage Door shall provide to - the City on or before June lSt of each year, an annual management plan, which shall include the annual operating budget for the then current Fiscal Year but may not have a complete booking plan or event schedule. The annual plan shall include information regarding Stage Door's anticipated operations for such Fiscal Year, including planned operating and maintenance activities, anticipated capital improvements and capital equipment purchases and an anticipated budget therefor, anticipated Events at the Facility (to the extent known at such time), and planned equipment and furnishings purchases. Stage Door shall have the right from time to time to make any changes it deems necessary or appropriate to any such annual plan so long as the annual plan is consistent with Stage Door's fulfillment of its obligations hereunder. 12.4 Programmatic Plan. - Accompanying the Stage Door's proposed annual budget shall be the Facility Programmatic Plan for the next fiscal year, detailing the then-known activities planned, and the number of residents and visitors anticipated to be impacted. 12.5 Maior Capital Repairs. - Accompanying Stage Door's proposed annual budget shall be a detailed list of then- known major capital repairs anticipated for the Facility. SECTION 13. INDEMNIFICATION. 13.1 Indemnification. - 13.1 .I Stage Door shall indemnify, hold harmless and defend (with counsel approved by the City Attorney) the City, its officers, agents, servants and employees from and against any and all claims, liabilities, demands, causes of action, costs and expenses (including reasonable attorneys' fees at trial and all levels of appeal) of whatsoever kind or nature ("Claims") arising out of (i) error, omission or negligent act or willful misconduct of Stage Door, its agents, servants, contractors, or employees; (ii) any default by Stage Door under this Agreement; or (iii) any other claim arising, directly or indirectly, from the operation or management of the Facility or any Event held therein or rental or use of the Facility; provided that there is expressly excluded from the foregoing obligations any Claims to the extent resulting from the gross negligence or willful misconduct of the City, its officers, agents (excluding Stage Door), contractors (excluding Stage Door) and employees or the use of the Facility by the City, its officers, agents (excluding Stage Door), and employees, pursuant to Section 16 hereof. 13.1.2 In addition, Stage Door shall indemnify, hold harmless and defend the City, its officers, agents, servants and employees, from and against any claim, demand or cause of action of whatever kind or nature arising out of any misconduct of Stage Door not included in the paragraph in the subsection above and for which the City, its officers agents, servants or employees, are alleged to be liable. This subsection shall not apply, however, to any such liability as may be the result of the gross negligence or willful misconduct of the City, its officers, agents, servants or employees. 13.1.3 The provisions of this Section 13 shall survive expiration or termination of this Agreement. SECTION 14. INSURANCE REQUIREMENTS. Stage Door shall maintain, at Stage Door's sole cost and expense, the following types of insurance coverage at all times throughout the Term of this Agreement: 14.1. General liability insurance with not less than the following limits: - General aggregate $2,000,000 Products (completed operation aggregate) $2,000,000 Personal and advertising (injury) $1,000,000 (Per occurrence) $1,000,000 Fire damage $ 100,000 Medical Expense $ 5,000 Liquor Liability (aggregate) $2,000,000 (Per occurrence) $1,000,000 14.2 Workers Compensation lnsurance shall be required under the Laws of the State of - Florida. 14.3 Automobile lnsurance shall be provided covering all owned, leased, and hired - vehicles and non-ownership liability for not less than the following limits: Bodily Injury $1,000,000 per person Bodily Injury $1,000,000 per accident Property Damage $ 500,000 per accident 14.4 Fire lnsurance for the Theater shall be the responsibility of the City. - The policies of insurance referred to above shall not be subject to cancellation or changing coverage except upon at least thirty (30) days written notice to City and then subject to the prior written approval of the City's Risk Manager. Stage Door shall provide the City with a Certificate of lnsurance for each such policy, which shall name the City as an additional named insured. All such policies shall be obtained from companies authorized to do business in the State of Florida with an A.M. Best's lnsurance Guide (latest edition) rating acceptable to the City's Risk Manager, and any replacement or substitute company shall also be subject to the approval of the City's Risk Manager. Should Stage Door fail to obtain, maintain or renew the policies of insurance referred to above, in the required amounts, the City may, at its sole discretion, obtain such insurance, and any sums expended by City in obtaining said insurance, shall be repaid by Stage Door to City, plus ten percent (1 0%) of the amount of premiums paid to compensate City for its administrative costs. If Stage Door does not repay City's expenditures within fifteen (15) days of demand, the total sum owed shall accrue interest at the rate of twelve percent (12%) until paid, and such failure shall be deemed an event of default hereunder. 14.5 Stage Door shall be the named insured under all such policies. The City shall be an - additional insured under the insurance policies described in subsections 14.1,14.2, 14.4, and 14.5 hereof, as its interests may appear, and all such insurance policies shall contain a provision covering the indemnification liabilities hereunder. 14.6 Builder's Risk. Stage Door shall also carry Builder's Risk Insurance during any - period of construction of Alterations or any other period of construction by, through or under Stage Door. 14.7 The terms of insurance policies referred to in Section 14 shall preclude subrogation - claims against Stage Door, the City and their respective officers, employees and agents. SECTION 15. OWNERSHIP OF ASSETS. 15.1 owners hi^. The ownership of the Facility and all buildings and real estate, all - existing (and replacements thereof) technical and office equipment and facilities, furniture, displays, fixtures, vehicles and similar tangible property located at the Facility shall remain with the City. Ownership of and title to all intellectual property rights of whatsoever value held in the City's name shall remain in the name of the City. The ownership of consumable assets (such as office supplies and cleaning materials), personal property, equipment and fixtures purchased with Operating Revenues or City funds shall remain with the City, but such assets purchased with Operating Revenues may be utilized and consumed by Stage Door in the performance of services under this Agreement. The ownership of data processing programs and software owned by the City shall remain with the City, and the ownership of data processing programs and software owned by Stage Door shall remain with Stage Door. Stage Door shall not take or use, for its own purposes, customer lists or similar materials developed by the City for the use of the Facility, unless prior written consent is granted by the City Manager. Ownership of equipment, furnishings, materials, or fixtures not considered to be real property purchased by Stage Door with Operating Revenues for use at and for the Facility shall vest in the City automatically and immediately upon purchase or acquisition, except for those items which by the terms of this Agreemept shall remain the property of Stage Door. The assets of the City as described herein shall not be pledged, liened, encumbered or otherwise alienated or assigned. Notwithstanding anything to the contrary contained in this Agreement, any personalty, furnishings, and movable equipment that is not a fixture and is not integral to the operation of the Facility purchased by Stage Door and used at the Facility shall be the sole property of Stage Door. SECTION 16. USE BY THE CITY The City shall have the right to use the Facility, or any part thereof, subject to availability, for the benefit of the community for such purposes including, but not limited to, meetings, City- sponsored special events, Sleepless Night (or a successor event), receptions, and other purposes, as deemed necessary by the City Manager, in hislher sole and absolute discretion, without the payment of any rental or use fee, except the direct out-of-pocket expenses incurred in connection with such uses shall be paid by the City. City uses df the Facility shall not be competitive with, nor conflict with, Events booked or sponsored by Stage Door, and shall be booked in advance upon reasonable notice. Additionally, upon execution of this Agreement, Stage Door acknowledges and herein agrees to honor all pre-existing scheduled events (see Exhibit "E"), whether booked by the City or otherwise, at the Facility, whether or not such events actually occur on or after the Effective Date and Stage Door's possession and use of the Facility for the purposes set forth herein. SECTION 17. ASSIGNMENTISUBLET. 7 I Except as otherwise specifically provided in this Section 17, Stage Door may not voluntarily or by operation of law, assign, encumber, pledge or otherwise transfer all or any part of Stage Door's interest in this Agreement or subcontract its management duties hereunder without the City's prior written consent, which may be granted or withheld in City's sole and absolute discretion. Any attempt by Stage Door to assign all or any part of its interest and any attempt to subcontract its management duties hereunder without first having obtained City's priorwritten approval shall be void and of no force or effect. In the event of any assignment, transfer, encumbrance or subcontract, Stage Door shall nevertheless remain liable for all obligations hereunder and the transferee shall be jointly and severally liable for all obligations thereafter arising under this Agreement. Any transfer of a controlling interest in Stage Door (whether in a single transaction or multiple transactions) shall be considered an assignment of this Agreement. Stage Door specifically recognizes that City selected Stage Door to be the manager of the Facility as a result of the City's evaluation of Stage Door's specific qualifications and experience in operating similar first class facilities. 17.2 The provisions of subsection 17.1 above shall not prevent Stage Door in the performance of its management duties hereunder to grant licenses and concessions and rental agreements for Events and entering into a concessions agreement for the concession operations at the Facility. SECTION 18. SECURITY. Stage Door shall provide reasonable security to protect the Facility and its equipment, materials and facilities, including any City equipment, furnishings, and fixtures used by Stage Door, and shall be solely responsible to the City for any loss or damage to any City equipment, furnishings, and fixtures so used by Stage Door. SECTION 19. PERMITS; LICENSES; TAXES; APPLICABLE LAWS. Stage Door agrees to obtain and pay for all permits and licenses necessary for the conduct of its business and agrees to comply with all laws governing the responsibility of an employer with respect to persons employed by Stage Door. Stage Door shall also be solely responsible for payment of any and all taxes levied on the Facility and its operations. In addition, Stage Door shall comply with all rules, regulations and laws of the City; Miami-Dade County; the State of Florida; and the U.S. Government now in force or hereafter to be adopted. SECTION 20. UTILITIES; RESPONSIBILITY FOR TAXES AND ASSESSMENTS. 20.1 Utilities. - Stage Door shall be solely responsible for and shall pay (whether to the City or directly to the utility) before delinquency, any and all charges for utilities used at the Facility (including, without limitation, water, electricity, gas, heating, cooling, cable, internet, telephone, sewer, trash collection, etc.). 20.2 Procedure If Taxes Assessed. - Stage Door agrees to, and shall pay before delinquency, all taxes and assessments of any kind assessed or levied, whether upon Stage Door or the Facility, by reason of this Agreement or by reason of any use(s) and/or activity(ies) of Stage Door upon or in connection with the Facility. The parties acknowledge that Stage Door's operation and use of the Facility is for public purposes, and therefore anticipate that, as of the Effective Date, no ad valorem taxes should be assessed by the Miami-Dade County Tax Appraiser. If, however, taxes are assessed by the Property Tax Appraiser, Stage Door shall be solely responsible for payment of same. SECTION 21 FORCE MAJEURE. 21 .I No party will be liable or responsible to the other party for any delay, damage, loss, - failure, or inability to perform caused by "Force Majeure" if notice is provided to the other party within ten (1 0) days of date on which such party gains actual knowledge of the event of "Force Majeure" that such party is unable to perform. The term "Force Majeure" as used in this Agreement means the following: an act of God, strike, war, public rioting, lightning, fire, storm, flood, explosions, epidemics, landslides, lightening storms, earthquakes, floods, storms, washouts, civil disturbances, explosions, and any other cause whether of the kinds specifically enumerated above or otherwise which is not reasonably within the control of the party whose performance is to be excused and which by the exercise of due diligence could not be reasonably prevented or overcome (it being acknowledged that under no circumstances shall a failure to pay amounts due and payable hereunder be excusable due to a Force Majeure). 21.2 Neither party hereto shall be under any obligation to supply any service or services if - and to the extent and during any period that the supplying of any such service or services or the provision of any component necessary therefore shall be prohibited or rationed by any Governmental Requirements. 21.3 In the event of substantial damage to or destruction of the Facility by reason of fire, - storm or other casualty or any eminent domain action or other regulatory action that, in either case, shall render a substantial part of the Facility inoperable for a period of at least ninety (90) days or in Stage Door's reasonable opinion the Facility can no longer be operated in a reasonably profitable manner as a result of the damages or action for a period of at least ninety (90) days from the happening of the fire, other casualty or regulatory action, either party may terminate this Agreement upon written notice to the other. Upon any such termination, the provisions of Section 31 shall apply; and provided City shall receive the entire amount of all insurance proceeds or eminent domain award as applicable. SECTION 22. INSPECTION. Stage Door agrees that the Facility may be inspected at any time upon reasonable notice by authorized representatives of the City, or by any other State, County, Federal or municipal officer or agency having responsibilities for inspections of such operations and/or Facility. Stage Door agrees to undertake immediately the correction of any deficiency cited by such inspectors on the Facility, which is properly the responsibility of Stage Door pursuant to this Agreement. SECTION 23. WAIVER OF INTERFERENCE. Stage Door hereby waives all claims for compensation for loss or damage sustained by reasons of any interference with its operation and management of the Facility by any public agency or official as a result of their enforcement of any laws or ordinances or of any of the rights reserved to the City herein. Any such interference shall not relieve Stage Door from any obligation hereunder. SECTION 24. NO LIENS. Stage Door agrees that it will not suffer, or through its actions or anyone under its control or supervision, cause to be filed upon the Facility any lien or encumbrance of any kind. In the event any lien is filed, the Stage Door agrees to cause such lien to be discharged within ten (10) days therefrom, and in accordance with the applicable law and policy. If this is not accomplished, the City may automatically terminate this Agreement, without further notice to Stage Door. SECTION 25. STAGE DOOR EMPLOYEES, MANAGERS AND BOARD OF DIRECTORS. 25.1 The City and Stage Door recognize that in the performance of this Agreement, it shall - be necessary for Stage Door to retain qualified individuals to effectuate and optimize Stage Door's management and operation of the Facility. Stage Door shall select, train, and employ at the Facility such number of employees as is necessary or appropriate for Stage Door to satisfy its responsibilities hereunder. Stage Door shall recruit employees consistent with standards employed at comparable first class facilities, and Stage Door shall have authority to hire, terminate and discipline any and all personnel employed by Stage Door working at the Facility. Any such personnel, whether employees, agents, independent contractors, volunteers, and/or other, employed, retained, or otherwise engaged by Stage Door for such purpose(s), shall not be deemed to be agents, employees, partners, joint ventures, or associates of the City, and shall not obtain any rights or benefits under the civil service or pension ordinances of the City or any rights generally afforded classified or unclassified employees of the City; further they shall not be deemed entitled to the Florida Worker's Compensation benefits as employees of the City. Additionally, Stage Door, andlor its employees shall never have been convicted of any offense involving moral turpitude or felony. Failure to comply with this subsection shall constitute cause for termination of this Agreement. 25.2 Stage Door shall assign to the Facility a competent full-time staff member - experienced in the operations of similar facilities, who will be located full time on-site during the Term. The full-time staff member will be supervised by a general manager who is experienced in operating and managing similar facilities. From time to time the staff member may provide assistance in connection with consulting andlor management services provided by Stage Door or any of its Affiliates at other facilities managed, owned or leased by Stage Door or any of its Affiliates so long as such assistance does not affect in any material respect the responsibilities and duties of the staff member to the Facility. Prior to Stage Door's appointment of the staff member, Stage Door shall consult with the City Manager with respect to the qualifications of the staff member proposed by Stage Door. The staff member shall be accessible to the City Manager at all reasonable times to discuss the management, operation, and maintenance of the Facility. "Accessible" shall mean available either in person, by telephone, andlor e-mail during business and/or operation hours and within a reasonable time frame during non-business hours in the event of emergency. The City Manager may also request that the staff member be replaced and Stage Door shall duly consider all such requests but shall not be obligated to replace the staff member. 25.3 Within thirty (30) days after the Effective Date, Stage Door shall establish an Advisory - Oversight Board dedicated to providing oversight to the operation of the Facility. The City Manager andlor hislher authorized designee shall be a member on the Advisory Oversight Board. SECTION 26. NO IMPROPER USE. Stage Door will not use, nor suffer or permit any person to use in any manner whatsoever, the Facility for any purpose in violation of any Federal, State, County, or municipal ordinance, rule, order or regulation, or of any governmental rule or regulation now in effect or hereafter enacted or adopted. Stage Door shall not use the Facility for any unlawful purpose and shall comply with all laws, permitting, and licensing requirements now in force or hereafter adopted, applicable to the Facility or the activities, uses, andlor business(es) conducted on the Facility. Stage Door agrees not to knowingly use the Facility for, or to permit operation of any offensive or dangerous activity, nuisance or anything against public policy. Any criminal activity in the Facility knowingly caused by or knowingly permitted by Stage Door shall result in automatic termination of this Agreement. Except as may result from acts of force majeure, Stage Door agrees that it will not allow the Facility to become unoccupied or vacant. Stage Door shall take appropriate precautions to prevent fire on the Facility, maintaining existing fire detection devices and extinguishing equipment at all times. SECTION 27. NO DANGEROUS MATERIALS. Stage Door agrees not to use or permit in the Facility the storage of illuminating oils, oil lamps, turpentine, gasoline (except for small containers [5 gallons or less] for machinery), benzine, naphtha, or other similar substances, or explosives or any kind, or any substance or thing prohibited in the standard policies of fire insurance companies in the State of Florida. SECTION 28. NO CLAIM AGAINST CITY OFFICERS, EMPLOYEES, INDIVIDUALS. It is expressly understood and agreed by and between the parties hereto that all individuals, employees, officers, and agents of the City are acting in a representative capacity and not for their own benefit; and that neither Stage Door nor any occupant shall have any claim against them or any of them as individuals in any event whatsoever in conjunction with any acts or duties which are reasonably related to the performance of their duties. SECTION 29. DEFAULT AND TERMINATION. 29.1. Staae Door's Defaults. The occurrence of any one or more of the following events - shall constitute an Event of Default by Stage Door. 29.1.1 The failure by Stage Door to make any payment required to be made by Stage Door as and when due, which continues for more than ten (1 0) days after written notice from City; 29.1.2 The failure or inability by Stage Door to observe or perform any of the covenants or provisions of this Agreement to be observed or performed by Stage Door, other than as specified in other subparagraphs of this subsection 29.1, which continues for more than thirty (30) days after written notice from City Manager; provided, however, if the nature of the failure is such that more than such period is reasonably required for its cure, then Stage Door shall not be deemed to have committed an Event of Default if Stage Door commences the cure within such period and thereafter diligently pursues the cure to completion and actually completes the cure within an additional sixty (60) day period; 29.1.3 Except as permitted pursuant to Section 17 of this Agreement, the assignment, encumbrance, pledge, or transfer of this Agreement, whether voluntarily or by operation of law, or any subcontract of Stage Door's duties hereunder, which continues for more than fifteen (1 5) business days after written notice thereof from City Manager; 29.1.4 (i) The making by Stage Door of any general assignment for the benefit of creditors; (ii) the filing by or against Stage Door of a petition to have Stage Door adjudged a Chapter 7 debtor under the Bankruptcy Code or to have debts discharged or a petition for reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against Stage Door, the same is dismissed within sixty (60) days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Stage Door's assets located at the Facility or of Stage Door's interest in this Agreement, if possession is not restored to Stage Door within sixty (60) days; or (iv) the attachment, execution or other judicial seizure of substantially all of Stage Door's assets located at the Facility or of Stage Door's interest in this Agreement, where the seizure is not discharged within sixty (60) days. 29.2 Citv's Remedies. - 29.2.1 If an Event of Default by Stage Door occurs, then in addition to any other remedies available to City, City may exercise the following remedies: (i) City may terminate this Agreement by written notice to Stage Door, in which case this Agreement shall terminate and Stage Door shall immediately surrender possession of the Facility to City. Upon termination, City shall be entitled to recover from Stage Door: (1) Operating Expenses that remain unpaid through the date of termination; (2) all other amounts that Stage Door is required to pay under this Agreement through the date of termination. (ii) City may seek specific performance of any of Stage Door's obligations hereunder or seek injunctive relief; (iii) City may exercise any other remedies available at law or in equity. 29.2.2 The various rights and remedies reserved to City in this Agreement or otherwise shall be cumulative and, except as otherwise provided by Florida law, City may pursue any or all of its rights and remedies at the same time. 29.3 Stage Door's Remedies. If an Event of Default by City occurs, then Stage Door may - exercise either of the following remedies: 29.3.1 Stage Door may terminate this Agreement by written notice to City, in which case this Agreement shall terminate and Stage Door shall immediately surrender possession of the Facility to City. Upon termination, Stage Door shall be entitled to recover from City all amounts owed by City to Stage Door as of the termination date and the provisions of Section 31 shall apply; or 29.4 Late Payments. Any payment owed to City or Stage Door under this Agreement - including, without limitation, any other payment owed to City or Stage Door under this Agreement that is not received by City or Stage Door within ten (1 0) days following notice of such amount being due shall bear interest at the rate of 15% per annum ("Default Rate") from the date due until fully paid. 29.5 IN THE EVENT THAT STAGE DOOR CEASES TO BE A NOT-FOR-PROFIT - CORPORATION, THIS AGREEMENT SHALL BE AUTOMATICALLY TERMINATED. SECTION 30. [INTENTIONALLY DELETEDISECTION 31. TERMINATION. 31 .I Effect of Termination. In the event this Agreement expires or is terminated for any - reason: (1) All Operating Expenses and all other obligations for the period up to the date of expiration or termination shall be paid using funds on deposit in the account(s) described in subsection 10.1 and to the extent such funds are not sufficient, Stage Door shall pay all such amounts from its own funds; (2) After all amounts referenced in subparagraph (1) have been paid, Stage Door may retain all remaining Operating Revenues (if any). Upon the expiration of this Agreement or a termination for any reason, all further obligations of the parties hereunder shall terminate except for the obligations which for all periods up to the date of expiration or termination and such other obligations as are stated to survive or be performed after such expiration or termination. All of the foregoing reimbursement and the payment obligations are to be made within thirty (30) days after the termination date. The provisions of this Section regarding the above reimbursement and payment obligations of the City shall survive the termination of this Agreement. 31.2 Surrender of Facilitv. Upon termination or expiration of this Agreement Stage Door - shall surrender and vacate the Facility upon the effective date of such termination (or expiration). The Facility and all equipment and furnishings shall be returned to the City in a good and clean condition consistent with other similar first class facilities and in compliance with all Governmental Requirements, ordinary wear and tear, and casualty loss excepted. SECTION 32. NOTICES. All notices from the City to Stage Door shall be deemed duly served if mailed by registered or certified mail to Stage Door at the following address: Broward Stage Door Theater Company, lnc. 1922 N.W. 83'* Drive Coral Springs, Florida Attention: David R. Torres, President and Derelle W. Bunn, Director All notices from Stage Door to the City shall be deemed duly served if mailed to: City of Miami Beach City Manager 1700 Convention Center Drive Miami Beach, Florida 33139 With copies to: City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Attention: Max Sklar, Tourism and Cultural Development Director Stage Door and the City may change the above mailing addressed at any time upon giving the other party written notification. All notice under this Agreement must be in writing. SECTION 33. NO DISCRIMINATION. The Stage Door agrees that there shall be no discrimination as to race, color, national origin, religion, gender identity, sexual orientation, marital and familiar status, or disability in the operations referred to by this Agreement; and further, there shall be no discrimination regarding any use, service, maintenance or operation of the Facility. All facilities located on the Facility shall be made available to the public, subject to the right of Stage Door to establish and enforce reasonable rules and regulations to provide for the safety, orderly operation and security of the facilities. 33.1 No Discrimination in Employment; Affirmative Action. In connection with the - performance of work under this Agreement, Stage Door shall not refuse to hire, discharge, refuse to promote or demote, or to discriminate in matters of compensation against, any person otherwise qualified, solely because of race, color, national origin, religion, gender identity, sexual orientation, marital and familiar status, or disability. SECTION 34. LIVING WAGE. This Agreement is subject to, and Stage Door shall be required to comply throughout the Term hereof with, the provisions of the City's Living Wage requirements, as codified in Sections 2- 407 through 2-41 0 of the City Code (as same may be amended from time to time). SECTION 35. EQUAL BENEFITS FOR DOMESTIC PARTNERS This Agreement is subject to, and Stage Door shall be required to comply throughout the Term hereof with, the requirements of Section 2-373 of the City Code entitled, "Requirement for city contractors to provide equal benefits for domestic partners" (as same may be amended from time to time). The Agreement is deemed to be a "covered contract," as defined in Section 2-373(a)(6) of the City Code, and shall require Stage Door to providetits employees working pursuant to this Agreement (whether working within the City of Miami Beach city limits, or within the United States, but outside the City limits, if such employees are directly performing work pursuant to this Agreement) "Equal Benefits" (as defined in Section 2-373(a)(8) of the City Code) to its employees with spouses and its employees with "domestic partners" (as defined in Section 2-373(a)(7) of the City Code). Failure by Stage Door to comply with the requirements of Section 2-373 of the City Code (as same may be amended from time to time) shall be deemed to be a material breach of this Agreement which may result in termination of the Agreement, with all monies due or to become due under the Agreement to be returned by the City. The City may also pursue any and all remedies at law or in equity for such breach. Failure to comply with Section 2-373 may also subject Stage Door to debarment, in accordance with the procedures provided in Sections 2-397 through 2-406 of the City Code. SECTION 36. LIMITATION OF LIABILITY. The City desires to enter into this Agreement only if in so doing the City can place a limit on its liability for any cause of action for money damages due to an alleged breach by the City of this Agreement, so that its liability for any such breach never exceeds the sum of $10,000. Stage Door hereby expresses his willingness to enter into this Agreement with Stage Door's recovery from the City for any damage action for breach of contract to be limited to a maximum amount of $10,000, less the amount of all funds actually paid by the City to Stage Door pursuant to this Agreement. Accordingly, and notwithstanding any other term or condition of this Agreement, Stage Door hereby agrees that the City shall not be liable to the Stage Door for damages in an amount in excess of $1 0,000, which amount shall be reduced by the amount actually paid by the City to Stage Door pursuant to this Agreement, for any action or claim for breach of contract arising out of the performance or non-performance of any obligations imposed upon the City by this Agreement. Nothing contained in this paragraph or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon the City's liability as set forth in Section 768.28, Florida Statutes. SECTION 37. NOT A LEASE. It is expressly understood and agreed that no part, parcel, building, structure, equipment or space is leased to Stage Door; that this Agreement is a management agreement and not a lease; and that Stage Door's right to operate and manage the Facility shall continue only so long as the Stage Door complies with the undertakings, provisions, agreements, stipulations and conditions of this Agreement. SECTION 38. MISCELLANEOUS 38.1 VenueIWaiver of Juw Trial. This Agreement shall be governed by, and construed in - accordance with, the laws of the State of Florida, both substantive and remedial, without regard to principals of conflict of laws. The exclusive venue for any litigation arising out of this Agreement shall be Miami-Dade County, Florida, if in state court, and the U.S. District Court, Southern District of Florida, if in federal court. BY ENTERING INTO THIS AGREEMENT, CITY AND STAGE DOOR EXPRESSLY WAIVE ANY RIGHTS EITHER PARTY MAY HAVE TO A TRIAL BY JURY OF ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF, THIS AGREEMENT. 38.2 No Partnership or Joint Venture. Nothing herein contained is intended or shall be - construed in any way to create or establish the relationship of partners or a joint venture between the City and Stage Door. None of the officers, agents or employees of Stage Door shall be or be deemed to be employees of the City for any purpose whatsoever. 38.3 Entire Agreement. This Agreement and all Exhibits attached hereto contain the - entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings, proposals or other expressions of intent with respect thereto. The Exhibits attached hereto are incorporated into and made a part of this Agreement. No other agreements, representations, warranties or other matters, whether oral or written, will be deemed to bind the parties hereto with respect to the subject matter hereof. 38.4 Written Amendments. This Agreement shall not be altered, modified or amended in - whole or in part, except in writing executed by each of the parties hereto. 38.5 Bindina U~on Successors and Assigns; No Third-Party Beneficiaries. - 38.5.1 This Agreement and the rights and obligations set forth herein shall inure to the benefit of; and be binding upon, the parties hereto and each of their respective permitted successors and permitted assigns. 38.5.2 This Agreement shall not be construed as giving any person, other than the parties hereto and their successors and permitted assigns, any legal or equitable right, remedy or claim under or in respect of this Agreement or any of the provisions herein contained, this Agreement and all provisions and conditions hereof being intended to be, and being, for the sole and exclusive benefit of such parties and their successors and permitted assigns and for the benefit of no other person or entity. 38.6 Section Headings and Defined Terms. The headings contained herein are for - reference purposes only and shall not in any way affect the meaning and interpretation of this Agreement. The terms defined herein and in any agreement executed in connection herewith include the plural as well as the singular and the singular as well as the plural, and the use of masculine pronouns shall include the feminine and neuter. Except as otherwise indicated, all agreements defined herein refer to the same as from time to time amended or supplemented or the terms thereof waived or modified in accordance herewith and therewith. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original copy of this Agreement, and all of which, when taken together, shall be deemed to constitute but one and the same agreement. 38.7 Severabilitv. The invalidity or unenforceability of any particular provision, or part of - any provision, of this Agreement shall not affect the other provisions or parts hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provisions or parts were omitted. 38.8 Non-Waiver. A failure by either party to take any action with respect to any default or - violation by the other of any of the terms, covenants, or conditions of this Agreement shall not in any respect limit, prejudice, diminish, or constitute a waiver of any rights of such party to act with respect to any prior, contemporaneous, or subsequent violation or default or with respect to any continuation or repetition of the original violation or default. 38.9 Certain Representations and Warranties. - 38.9.1 The City represents, warrants, and covenants to Stage Door the following: (i) City has full legal right, power and authority to enter into and perform its obligations hereunder; and (ii) this Agreement has been duly executed and delivered by the City and constitutes a valid and binding obligation of the City, enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditors' rights generally or by general equitable principles. 38.9.2 Stage Door represents and warrants to the City the following: (i) Stage Door has full legal right, power and authority to enter into and perform its obligations hereunder, and (ii) this Agreement has been duly executed and delivered by Stage Door and constitutes a valid and binding obligation of Stage Door, enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditors' rights generally or by general equitable principles. 38.1 0 Governing Law. This Agreement will be governed by and construed in accordance with the internal laws of the State of Florida, without giving effect to otherwise applicable principles of conflicts of law. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] IN WITNESS WHEREOF, the parties hereto have caused their names to be signed and their seals to be affixed; all as of this day and year first written above. Attest: CITY OF MIAMI BEACH City Clerk Matti Herrera Bower, Mayor STATE OF FLORIDA 1 SS: COUNTY OF MIAMI-DADE ) The foregoing instrument was acknowledged before me this day of , 201 1, by Mayor Matti Herrera Bower and Robert Parcher, City Clerk, or their designees respectively, on behalf of the CITY OF MIAMI BEACH, known to me to be the persons described in and who executed the foregoing instrument, and acknowledged to and before me that they executed said instrument for the purposes therein expressed. WITNESS my hand and official seal, this day of , 2011. Notary Public, State of Florida at Large Commission No.: My Commission Expires: APPROVED AS TO FORM & LANGUAGE a FOR EXECUTION 4\12-\1\ Date 43 Attest: BROWARD STAGE DOOR THEATRE COMPANY, INC. Secretary President Print Name Print Name STATE OF FLORIDA 1 ) SS: COUNTY OF MIAMI-DADE ) The foregoing instrument was acknowledged before me this day of ,2011, by , on behalf of the BROWARD STAGE DOOR THEATER COMPANY, INC., known to me to be the persons described in and who executed the foregoing instrument, and acknowledged to and before me that they executed said instrument for the purposes therein expressed. WITNESS my hand and official seal, this day of ,2011. ~otar~ Public, State of Florida at Large Commission No.: My Commission Expires: EXHIBIT "A" LEGAL DESCRIPTION OF THE FACILITY LEGAL DESCRIPTION Portion of the land occupied by Byron Carlyle Theater, more particularly described as follows: Lots 11, and 12, TOGETHER WITH: the east 15 feet of lots 1 and 2, all in Block 14, NORMANDY BEACH SOUTH, recorded in Plat Book 21, at Page 54, Public Records of Miami-Dade County, Florida, containing 14,092 square feet more or less. EXHIBIT "B CITY AGREEMENTS EXHIBIT "C" ANNUAL BENCHMARKS The following benchmarks will be judged against base figures determined at the end of the first contract year, or partial contract year, and will be assessed at the end of each contract year thereafter. Stage door should demonstrate the following: I. By the end of the second year, Stage Door should sell 18,000 tickets annually. 2. Every year thereafter, there should be no less than a 5% increase in ticket sales annually until the annual number of tickets sold reaches 24,000. 3. The effectiveness of the Young Ambassador Program as determined by an annual increase of 5% in size of youth audience at Stage Door events. 4. An annual increase of 5% in the number of participants in the Summer Camp Program. Provided that the Summer Camp program is able to operate without a loss in revenue. EXHIBIT "D BOOKING POLICIES EXHIBIT "En PRE-EXISTING BOOKING LIST April 2011. 4/30 - Fundarte 511 In Contract $ 500.00 10/20/2010 Give us Hope (Miami Childrens) 4/10. In Contract $ 600.00 03/30/2010 Lehrman Community Day 4112- School 4/13 In Contract $ 500.00 03/22/2010 Mav 2011. Dance Now! Ensemble 516 & 5/7 In Contract $ 500.00 04/12/2010 5/13 - 10/04/2010 Momentum Dance Company 5/15 In Contract $ 800.00 City Theater 5/22 In Contract October-11 Ability Comedy Explosion Event at Confirmed - Byron Carlyle 1012 1 hold %is event's rent is waived by City Commlsioneks 10/7 - C.0.M.E Dance 1018. Hold no payment November 2011. Sleepless Nights (City of Miami 1113 - Beach) 1115 Hold no payment Januarv 2012. CCHQ Tracy Manning 1/12. Hold no payment THIS LICENSE AGREEHEMT made this 19*. day of July, 2010 ** by and between GldPal 8p0ctrtm, L. p. , (nLicensorn), and Dace NOW! Ensemble ("~icamee. ") Diego Salterjni m Hannah Bangartem ArtbticDiredor Dance Now! Bnsemble P.O. Box 416525 Miami Beach, PL 33141 EMGIL: jnfW&ncenowmiami.org Licensor manages, operates and maintains EFPROef CARLYLE TElWHtE, on behalf of the City of Miami Beach, a Florida municipal corporation (the "Cityn), under rights granted by and obligations imposed under an agreement between City and Licensor. That the Licensor grants unto the Licensee the use and occupancy of BYROB3 CARfiPLg SWEATRE (Venue), upon the following terms and conditions for the sole purpose of: Thursday, May 5,201 1 Technical Load In Rate: $550.00 Frlday, May 6,201 1 Technical Rehearsal Rate: $550.00 Satuday, May 7,201 1 Performance at 8:00 pm Rate: $500.00 TERMS AND CONDITIONS 1: Rant: Licensee shall pay rent to Licensor without demand, together with any and all sales, use and state taxes arising or accruing during the term of the License hold, plus the percentages and other charges as set forth below on the following basis: The Licensee hereby covenants and agrees to pay the following minimum rentals, or such higher rentals as shall be approved by the City Commission on or before 120 days prior to the date licensee takes occupancy under this license; provided, however, that licensee's obligation with respect to such higher rentals shall be limited to an increase of twelve per cent (12%) over the following minimum rentals. Rent. $1,600.00 (Om %%~nm1Pd Sjj. HUIUdlCQd a011axa) ,Plus liwae Bbrs and Wwt &mmnualr. The Licensee is subject to the terms and conditions of this LICENSE AGREBYEN!l'. These Rental Documents comprise Licensee's obligation to rent BXRON CM4Lpfg -TRE and ate in 'full force and effect durbg the rental period. The License Agxeement must be returned to the Glabal Spectrum office 1901 Convention Center Drive, Miami Beach, F1 33139 along with payment of a non-refundable 50% deposit payable to TBE MIZIMI BEM3l COXWBlWICRJ CEBWBR no less than four months (120 days) prior to event date stated on signed Rider to the Venue Contract. The signed documents and security deposit must be received no later than 5:00 PM on the due date designated by the invoice or date will be automatically cancelled. Should the contract be prepared less than forty-five (45) days prior to tbe ~ncomont of the rental poriod, then the Rental Docummnts imnd p~~t in full must be remitted no later than 5:00 RM, on the dw data desiaaated Irp the invoice or the date will automatically be aancerlled. Licensee accepts sole responsibility for compliance with the terms set forth in this contract. By signing thim contract, Lic6nsee takes full responsibility and obligation for all rental monies and additional charges incurred for perEormanco. Licensee is fully msponsiblo for fuU rentar of any cancellation for the above-mant%oned date. Licensor will provide Licensee with a written estintaW of all chargsu for Services provided by Licensor and ncay revise such esUmate from tinm to tinm In the event: Licensee has not completely vacated the pdses and returned said PZSQ~S~S bn the COIltr&Ct&, brmiaat%.on -, Id.GOUS0r m;ag additional reIlt at the ~rovailiw hourly rental rate aa a-roved by City of aaiami Beach for each day ox portion thereof bayond the contracted evacuation time. The Liceaae~ is subjeat to the telpll snd ~tior~rr of this LI- and TO Tdlg VSBUX-. !FImse Ron- Document8 Licensee's &ligation to rent -on Carlyle Theatre and are in fell faree and effect during the ran- period. Lieensam a-ta sole responsibility for compliance with tho teans set forth in this -tract. 2. Premisee and Ilquipaarnt: a) This Agreement grants unto the Licensee the full use of stage, existing stage setting, stage properties, stage lights, dressing rooms, "green room", orchestra pit, orchestra, mezzanine or balcony seats, lobby and entry ways. The Licensee shall take the premises as they are at the time of occupancy by the Licensee. In the event the Licensee finds it necessary to remove or change the location of any stage rigging, settings, curtain or equipment, the changes shall be made by the Licensee at the Licensee's expense; provided, however, that no removals or changes shall be made without prior written consent of the Theater Director. Licensee further agrees to replace and restore all said stage riggings, settings, curtains or equipment to the former location and condition in which the Licensee found them. b) Licensee agrees to pay costs of repair and replacement and all damages of whatever origin or nature which may occur during the term of this agreement in order to restore the licensed premises or other parts of the Licensor's premises affected by the event to a condition equal to that at the time this agreement became effective. Licensee shall deposit with Licensor the sum of Five Hundred dollars and no/100 ($500.00) Dollars to ensure performance of this provision or any other provision of this License Agreement. In the event the Licensee shall fully and faithfully comply with all of the terms, covenants, provisions, and conditions of this License, said security shall be set off against any rent owed to the Licensor at the termination of the License or returned in full if all obligations are fulfilled. In the event of any bankruptcy or other insolvency proceeding against Licensee, it is agreed that all security deposits held hereunder shall be deemed to be applied by Licensor to rent, sales tax and other charges due at date of bankruptcy and/or insolvency. C) Licensee shall not injure, mar, or in any manner deface the premises or any equipment contained therein and shall not cause or permit anything to be done whereby the said premises or equipment therein shall be in any manner injured marred or defaced. Licensee further agrees it will not tape items, drive or permit to be driven nails, hooks, tracks, or screws into any part of said building or equipment contained therein and will not make or allow to be made any alterations of any kind to said building or equipment contained therein. 3. Services: The Licensor shall furnish air conditioning during show hours only, house lights, public address system and water by means of the appliances installed for ordinary purposes, but for no other purposes. Interruptions, delays or failures in furnishing any of the same caused by anything beyond control of the Licensor shall not be chargeable to the Licensor. Licensor will provide one daily cleaning of all public spaces and between show clean-up as possible for events with more than one perfonaance on a single day. It is agreed that the licensor shall provide at Licensee's sole cost and expense, ushers, floor managers, off-duty Miami Beach Police Officers, firemen as nay be required by the Miami Beach Fire Department, stage crew, electricians, technicians, projectionists, sound system licensor, carpenters, machine licensor, and any and all help necessary for the promotion and presentation of the event. ?LL1 employees and services not provided by City of Miami Beach are employees of Licensee. If additional maintenance personnel are required in excess of regular scheduling, due to Licensee use of the Theatre, Licensee will be solely responsible for all cost relating to additional maintenance and personnel. 4. Box Office: Licensor at all times reserves the authority, power and right to control the box office, including but not limited to, ticket: printing, ticket personnel and ticket sales revenue. (a) Ticketing: Licensor will order the tickets/create the event through Ticket Master of Florida as exclusiwm in-house ticketing, distribution and reporting system. Licensee charge for said distribution will be included in "House Feesn. (b) Distzibution: Licensor shall have the right to offer tickets for sales at all of its approved agencies (Ticket Master of Florida). Licensee may request that ticket sales privileges be extended to additional. agencies, and Licensor retains full and final authority to authorize such distribution approval. (c) Licsnm Holds: Licensor agrees to put a designated number of tickets on hold for sale by the Licensee for the purpose of season ticket holders. Licensee must notify the Licensor prior to putting the event on sale in writing as to the number of specific seats to be put on hold. Held seat will not be included in final box office settlement. Consigtmtant tickQts will be issued and used far trade deals or group smlas only. Group sales will be requited to pick-up and pay for tickets at the box officre. Additionally, Licensee assumes all responsibility for collection of funds from such approved agencies. AWY UNSOLD TICKETS CQBRSICietgD TO ADDXFIOBU& AtZWCIES MYST BE TO LICEMSUR 24 gOURS BEEWtE TBB FIR9T MY OF THE EVIbLPT. AHY TICXETS NOT SO RE- WXLL BE W%WIDERED SOLD. (d) Ticket Prices: Licensee agrees that all tickets will be sold at the advertised prices. Such advertised prices shall be mutually agreed upon in writing by Licensee and Licensor. Any changes in ticket prices shall require the prior written approval of Licensor. The approved agency will charge applicable handling charges. (e) Licensor will retain a minimum of fourteen (14) complimentary tickets for each event to be reserved for the City of Miami Beach. (f) CUataasar Crdt: Licensee shall be responsible for the credit worthiness of its patrons. 5. Right to Securer Box Offica Receipts: Licensee covenants and agrees to pay the Licensor on demand all sums due Licensor for any service, accommadations or materials furnished or loaned by Licensor and to authorize and permit Licensor to take such sums from any box office receipts or advance receipts belonging to Licensee in an amount sufficient to secure Licensor against loss in the event Licensee fails to make such payments. Licensor shall have a first lien and security interest on the box office receipts of Licensee to secure the payment of any sums due Licensor from Licensee for the use of the licensed premises, any accommodations, services or materials furnished or loaned by Licensor, or any amounts due under this License. 6. Enculpa~on d fndsarmification Clauae: Licensee agrees that it will indemnify, hold and save the City of Miami Beach ("City") and Licensor, their officers, agents, contractors and employees whole and harmless and at Licensor's option defend same, from and against aJ-1 claims, demands, actiona, damages, loss, cost, liabilities, expenses and judgments of any nature recovered from or asserted against Licensors on account of injury or damage to person or property to the extent that any such damage or injury may be incident to, arise out of, or be caused, either proximately or remotely, wholly or in part, by an act, omission, negligence or misconduct on the part of Licensee or any of its agents, servants, employees, contractors, patrons, guests, licensees or invitee or of any other person entering upon the Premises licensed hereunder with the express or implied invitation or permission of Licensee, or when any such injury or damage is the result, proximate or remote, of the violation by Licensee or any of its agents, servants, employees, contractors, patrons, guests, licensees or invitee of any law, ordinance or governmental order of any kind, or when any such injury or damage may in any other way arise from or out of the occupancy or use by Licensee, its agents, servants, employees, contractors, patrons, guests, licensees or invitee of the Premises licensed hereunder. Licensee covenants and agrees that in case Licensor or City shall be made parties to any litigation against Licensee or in any litigation commenced by any party other than Licensee relating to this License or to the Premises licensed hereunder, then Licensee shall and will pay all costs and expenses, including reasonable attorney's fees and court costs, incurred by or imposed upon Licensor or City by virtue of any such litigation. These terms of indemnification shall be effective unless such damage or injury may result from the sole negligence, gross negligence or willful misconduct of Licensor and/or the City. 7. Ordinances and Regulations: Licensee will comply with all laws, ordinances and regulations adopted or established by federal, state or local governmental agencies or bodies; and by all facility rules and regulations as provided by Licensor, and Licensee will require that its agents and employees likewise comply. Licensee agrees that at all times it will conduct its activities with full regard for public safety and will observe and abide by all applicable regulations and requests by duly authorized governmental agencies responsible fox public safety and by Licensor to assure such safety. Lfcensor further agrees that all portions of sidewalks, entries, doors, passages, vestibules, halls, corridors, stairways, passageways, and all ways of access to public utilities of the premises shall be kept unobstructed by the Licensee and shall not be used for any purpose other than ingress or egress to and from the premises by Licensee. Licensee also shall not use or store or permit to be used or stored in or on any part of the Licensed premises any substances or thing prohibited by law, ordinance, or standard policies of fire insurance companies operating in the State of Florida, without the permission of the Licensor. Illuminating oils, candles, oil lamps, turpentine, benzene, naphtha, or other similar substances or explosives of any kind shall not be placed in or on the licensed premises. It is further agreed that no inflammdble materials, such as bunting, tissue paper, crepe paper, etc., will be permitted to be used as decorations, and decorative materials unless they are treated with flame proofing and are approved by the appropriate inspector of the City of Miami Beach or Dade County, Florida, before the same are installed. In accordance with the City of Miami Beach liquor control regulation ordinance, any event held at BXROM CARLYLE 'PHgATRE which involves the consumption of alcoholic beverages must close the event no later than 5:00 A.M. on each event day. Compliance with this ordinance is mandatory. 8. Aasigmmut and SubI.ett,ing: Licensee shall not assign, transfer, sublet or subject this agreement or its right, title or interest therein without Licensor's prior written approval. 9. Rowers to Vacate Premises: Licensor shall retain the right to cause interruption of any performance in the interest of public safety, and to likewise cause the termination of such perfoxmance when in the judgment of the Licensor such action is necessary in the interest of public safety. Should it become necessary in the judgment of the Licensor to evacuate the premises because of a bomb threat or for other reasons of public safety, the Licensee will retain possession of the premises, for sufficient time to complete presentation of its activity without additional rental charge providing such time does not interfere with another building Licensee. If it is not possible to complete presentation of the activity, rental. shall be forfeited, prorated, or adjusted at the discretion of the Licensor based upon the situation, and the Licensee hereby waives any claim for damages or compensation from the Licensor. Operator reserves the rights to make such announcements as are deemed necessary at any time in the interest of public safety. Licensee agrees that it will cooperate with the delivery of such announcements for public safety, including but not Limited to, announcements to require patrons to leave their seats or to leave the premises. The Licensor reserves the right to eject or cause to be ejected from the premises any person or persons causing a disturbance, and neither the Licensor nor any of its officers, agents or employees shall be liable to the Licensee for any damages that may be sustained by the Licensee through the exercise by the Licensor of such right. 10. Cancellation of mtby licensee: In the event of a cancellation by Licensee of the Event, no deposit refund shall be made. Additionally, Licensee shall be obligated to pay the full amount of fees contemplated to be due hereunder had the Event actually occurred. The parties agree that Licensor will be damaged by any such cancellation, and that the exact amount of such damages would be either impossible or inconvenient to prove, and that the amounts set forth in the preceding sentence are a reasonable estimate of the amount of such damages. The parties further agree that such amount shall constitute cancellation fees, and not a penalty of any kind. The remedies set forth in this section are in addition to, and not in lieu of, any other rights or remedies Licensor may have, at law or in equity, in the event of a breach or cancellation of this Agreement by Licensee. In the following formula, "x" shall represent the number of calendar days from the date the Licensor received notice of cancellation from the Licensee to the first day of the License period and "y" shall represent the percentage of the License fee owed to the Licensox by the Licensee: If "x" equals 1,096 or more calendar days, then "y" equals 25% (3+ years) If 'x" equals 366 to 1,095 calendar days, then "y" equals 50% (over 1 year up to 3 years) If "x" equals 365 or less calendar days, the "y" equals 100% (1 year or less) Licensor shall use reasonable efforts to re-rent the Premises, and license fees received by Licensor in the re-renting of the Premises shall reduce cancellation fees owed by Licensee by a like amount, with such reduction not to exceed the full amount of the cancellation fees owed. 11. Default and Licensor's RlloPedies: Default shall be defined as the untimely performance of any and all clauses in this License or in the event guide which is incorporated by reference into this License. Licensor may exercise any and all remedies enumerated or permitted by law. Licensor may hold a landlord's lien on any and all personal when Licensee is in default and Licensee expressly gives Licensor permission to remove and store at Licensee's expense, any personal abandoned on the demised premises. The Licensee shall pay upon demand all Licensor's expenses and costs incurred in enforcing the Licensee's obligations under this license including but not limited to: staff and leasing agents retained by Licensor, legal costs, charges and/or expenses, including reasonable attorney's fees incurred by Licensor Fn any pre-litigation negotiation, litigation and/or appeal in which the Licensee causes the Licensor to become involved or concerned. Licensor may resort to any one or more of such remedies or rights, and adoption of one or more such remedies or rights, shall not necessarily prevent the enforcement of other remedies or rights concurrently or thereafter. 12. Insurance: As additional consideration over and above the rental payments made by Licensee herein, Licensee shall, at its own expense, comply with all of the following insurance requirements of the Licensor. It is agreed by the parties that the Licensee shall not occupy the predses until proof of the following insurance coverage has been furnished to the City and Licensor. a) Commercial general liability insurance, on an occurrence form, in the amount of Two Million ($2,000,000.00) Dollars per occurrence for bodily injury , death, property damage, and personal injury. The policy must include coverage for premises operations, blanket contractual liability (to cover indemnification section), products, completed operations and independent contractors. If the user's activities involve the sale of alcohol, then liquor liability in the same amount is also required. These policies must name the City of Miami Beach and Global Spectrum as additional insured. b) Automobile liability insurance in the amount of One Million ($1,000,000.00) Dollars per occurrence to provide coverage for any owned and non-owned vehicles used by the licensee on the Facility premises, including loading and unloading hazards. This must name the City of Miami Beach and Global Spectrwn as additional insured. C) Workers' compensation and employer's liability coverage as required by Florida Statute. d) It is understood and agreed that all coverage's provided by the Licensee are primary to any insurance or self-insurance program the City has for this Facility and the Licensee and their insurance shall have no right of recovery or subrogation against the Licensor. e) All policies must be issued by companies Domicile in the State of Florida and assigned a rating of A:X or better, per Best's Key Rating Guide, latest edition. f) The City must receive thirty (30) days written notice prior to any cancellation, non-renewal or material change to the required insurance policies. This written notice must be sent to the City of Miami Beach Risk Management Division, 1700 Convention Center Drive, Miami Beach, FL 33139. g) Evidence of the required insurance policies must be provided to Global Spectrum by submission of an original certificate of insurance thirty (30) days prior to the license period. h) Alternate coverage to satisfy these requirements is subject to prior approval of the Cityr s Risk Manager. Additional insurance coverage, as determined by the City's Risk Manager, may be required for this license. 13. ZuhinisUative Charges: In the event any check, bank draft or negotiable instrument given for any money payment hereunder shall be dishonored at any time, for any reason whatsoever not attributable to Licensor, Licensor shall be entitled, in addition to any other remedy that may be available to make an administrative charge of Twenty ($20.00) Dollars for each such check. 14. audit: Licensee shall make available to Licensor, upon request, all records znnd books related to this Agreement at such time and place as shall be designated by Licensor for examination thereof for the purpose of an audit to be performed by an auditor designated by Licensor. Licensee shall inform licensor of all services retained by it to provide services in connection with Licensee's License of Licensor's premises pursuant to this Agreement, that they must also agree to the aforesaid provision relating to audit upon request of Licensor. IS. Sale of Concessions: Licensor reserves, and at all times shall have the sole right to food and beverage, sundries, programs, novelties, souvenirs and periodicals and to rent and sell opera glasses, and other articles, to conduct check rooms, to control event programs and to supervise the contents thereof, to take photographs, to control or supervise radio, movie and/or television broadcasting or recording and transcription rights and equLpment, and other privileges, and Licensee shall not engage in or undertake the sale of any of the aforesaid articles or privileges, without the express written consent of Licensor. Licensee agrees to pay to the Licensor 15% of it~ gross sales on ptograms, novelties, souvenirs, etc. 16. Right of Entry: Any duly authorized agent or agents or employees of the Licensor shall have the right at any time to enter into any and all parts of the premises for the purpose of inspecting the same, making or causing to be made, necessary repairs thereto, enforcing all necessary and proper rules for the management and operation of the premises, and enforcing the Licensee's obligations hereunder. 17. Supply of Keys to Director: The Licensor or his representative shall have available to him at all times, total and complete access to all portions of the licensed premises. Licensee shall supply to the Licensor, or his representative, a key or keys to any and all parts of the premises which Licensee desires to secure under lock, such keys and locks to be provided for and installed and removed at the sole expense of Licensee, subject to immediate removal upon termination of this Agreement, or otherwise at the discretion of the Director. In the event the Director determines it to be necessary to remove any locks which have been installed by Licensee, the Director may order such removal, the cost of which shall be borne by Licensee. 18. Wo Box office BaiLaent: In the handling, control, custody and keeping of receipts and funds, whether the same are received through the box office or otherwise, the Licensor is acting for the accormaadation and sole benefit of Licensee and that, as to such receipts and funds, the Licensor shall be responsible only for gross neglect or bad faith. 19. Licensor's Discretion: Any matter not expressly provided for herein shall be within the reasonable discretion of the Licensor. (a) All legal proceedings arising from this license shall be in the courts situated in Dade County, Florida. (b) If any section, subsection, clause or provision of this License is held invalid, the remainder shall not be affected by such invalidity. (c) This License may only be altered, changed or amended, by an instrument in writing signed by both parties hereto. (d) No waiver of any covenant or condition of this License by either party shall be deemed to imply or constitute a further waiver of the same covenant or condition or any other covenant or condition of this License. (e) This License contains and embodies the entire agreement of the parties hereto and no representations, inducements or agreements oral or otherwise, between the parties not contained and embodied herein shall be of any force and effect. (f) In any conflict between the License and other written provisions the license shall prevail. (g) CAECKLIS!F/QI~ESTIONAIRE and RIDER TO VENUE CONTRACT are hereby incosporated into this agreement by reference unless otherwise amended by separate addendum. (h) All federal, state, and local laws and/or regulations related to copyright, trademarks, etc. must be complied with by the Licensee and all exhibitors selling such items on the premises. Further, the Licensee agrees to save and completely hold harmless the City of Miami Beach and Global Spectrum, and to pay all costs related to any violation of the above. (i) The licensee acknowledges and understands that this contract in no way affords any rights and does not authorize any signage to be placed outside the boundaries of the Theater property. We strongly suggest that the licensee obtains all appropriate permits and licenses for off-site signage from the City of Miami Beach Building and/or Code Enforcement Department. (j) The Licensee acknowledges and agrees that it is their sole responsibility to provide appropriate information related to the availability of seating for patrons with disabilities. Further the Licensee understands and agrees that information on sqch seating must be included in all promotional and advertising materials relative to this performance. 21. Oths~: Tema and Condikions: The Licensee shall provide at Licensee's sole cost and expense, off-duty Mid Beach Police Officers and off-duty Miami Beach Firefighters and/or Miami Beach Rescue Service as required by the Miami Beach Fire and Police Departments. 22. Borca Ibajsure: Should Licensee be unable to take possession of the Premises or present the Event due to an Event of Force Majeure, neither Licensor nor Licensee shall have any liability under the Agreement and Licensee, as its sole remedy and relief, shall receive a refund of any uncommitted or cancelable advance payments less any expenses incurred by Licensor in preparing for the Event. The term "Event of Force Majeure" shall mean any and all acts of God, strikes, lock-outs, acts of the - public enemy, laws, rules and regulations of governmental or quasi-governmental entities, wars or warlike action, arrest or other restraint of government (civil or military), blockades, insurrections, riots, terrorism or terrorist threats, epidemics, lightning, earthquakes, hurricanes, storms, floods, washouts, fire or other casualty, civil disturbances, explosions, threats of bombs or similar interruptions, confiscation or seizure by any government or public authority, nuclear reaction, radioactive contamination, accidents, or any other causes, whether of the kind herein enumerated or otherwise that are not reasonably within the control or caused by the party claiming the right to delay the performance on account of such occurrence; provided, however, in no circumstances shall the monetary inability of a party to perform any obligation contained in this Agreement be construed to be an Event of Force Majeure. Upon removal or cessation of the Event of Force Majeure, the parties1 respective rights and obligations hereunder shall be reinstated for any and all subsequent sessions of the Event remaining in the Term (if any). LICENSEE: Promoter's Company Name Date: I Date: Print Name / Title i/ LICElYSOWGLLQAL SPECTRUM, L.P. LICENSE AGREEMENT THIS LICENSE AGREEMENT made this ath. day of Sept&r, 2010 ** by and between Global Spectrum, L. P . , ("Licensors1) , and Miami Children's Chom ("'Licensee. ") Miami Children's Chorus Timothy A. Sharp 1533 Sunset DAwe #215 Cord Gables, Fl. 33143 3056627494 Licensor manages, operates and maintains BYRON CARLYLE !CHEWRE, on behalf of the City of Miami Beach, a Florida municipal corporation (the "Cityw), under rights granted by and obligations imposed under an agreement between City and Licensor. That the Licensor grants unto the Licensee the use and occupancy of BYRON CARLYLE THEATRE (Venue), upon the following terms and conditions fox the sole purpose of: Sunday, April 10,2011 e With Oscar Bscalada" Performance at 7:00 PM Rate: $500.00 TERMS AND CONDITIONS 1. Rant: Licensee shall pay rent to Licensor without demand, together with any and all sales, use and state taxes arising or accruing during the term of the License hold, plus the percentages and other charges as set forth below on the fol'lowing basis: The Licensee hereby covenants and agrees to pay the following minimum rentals, or such higher rentals as shall be approved by the City Commission on or before 120 days prior to the date licensee takes occupancy under this license; provided, however, that licensee's obligation with respect to such higher rentals shall be limited to an increase of twelve per cent (12%) over the following minimum rentals. The Licensee is subject to the terms and conditions of this LICENSE AGREEMENT. These Rental Documents comprise Licensee's obligation to rent BYRON CARLYLE mTRE and are in full force and effect during the rental period. The License Agreement must be returned to the Global Spectrum office 1901 Convention Center Drive, Miami Beach, F1 33139 along with payment of a non-refundable 50% deposit payable to THE WAMX BEAClB CONVEN!ELON CENTER no less than four months (120 days) prior to event date stated on signed Rider to the Venue Contract. The signed documents and security deposit must be received no later agreed that all security deposits held hereunder shall be deemed to be applied by Licensor to rent, sales .tax and other charges due at date of bankruptcy and/or insolvency. Licensee shall not injure, mar, or in any manner deface the premises or any equipment contained therein and shall not cause or permit anything to be done whereby the said premises or equipment therein shall be in any manner injured marred or defaced. Licensee further agrees it will not tape items, drive or permit to be driven nails, hooks, tracks, or screws into any part of said building or equipment contained therein and will not'make ox allow to be made any alterations of any kind to said building or equipment contained therein. 3. Services: The Licensor shall furnish air conditioning during show hours only, house lights, public address system and water by means of the appliances installed for ordinary purposes, but for no other purposes. Interruptions, delays or failures in furnishing any of the same caused by anything beyond control of the Licensor shall not be chargeable to the Licensor. Licensor will provide one daily cleaning of all public spaces and between show clean-up as possible for events with more than one performance on a single day. It is agreed that the licensor shall provide at Licensee's sole cost and expense, ushers, floor managers, off-duty Miami Beach Police Officers, firemen as may be required by the Miami Beach Fire Department, stage crew, electricians, technicians, projectionists, sound system licensor, carpenters, machine licensor, and any and all help necessary for the promotion and presentation of the event. All employees and services not provided by City of Miami Beach are employees of Licensee. If additional maintenance personnel are required in excess of regular scheduling, due to Licensee use of the Theatre, Licensee will be solely responsible for all cost relating to additional maintenance and personnel. 4. Box Office: Licensor at all times reserves the authority, power and right to control the box office, including but not limited to, ticket printing, ticket personnel and ticket sales revenue. (a) Ticketing: Licensor will order the tickets/create the event through Ticket' Master of Florida as exclusive in-house ticketing, distribution and reporting system. Licensee charge for said distribution will be included in "House Feesf8. (b) Distribution: Licensor shall have the right to offer tickets for sales at all of its approved agencies (Ticket Master of Florida). Licensee may request that ticket sales privileges be extended to additional agencies, and Licensor retains full and final authority to authorize such distribution approval. (c) Licensee Holds: Licensor agrees to put a designated number of tickets on hold for sale by the Licensee for the purpose of season ticket holders. Licensee must notify the Licensor prior to putting the event on sale in writing as to the number of specific seats to be put on hold. Held seat will not be included in final box office settlement. Consignment tickets will he issued and used for trade deals or group sales only. Group sales will be required to pick-up and pay for tickets at the box office . Additionally, Licensee assumes all responsibility for collection of funds from such approved agencies. ANY UNSOLD TICKETS CONSIGNED TO ADDITIONAL ' further agrees that all portions of sidewalks, entries, doors, passages, vestibules, halls, corridors, stairways, passageways, and all ways of access to public utilities of the premises shall be kept unobstructed by the Licensee and shall not be used for any purpose other than ingress or'egress to and from the premises by Licensee. Licensee also shall not use ox store or permit to be used or stored in or on any part of the Licensed premises any substances or thing prohibited by law, ordinance, or standard policies of fire insurance companies operating in the State of Florida, without the permission of the Licensor. Illuminating oils, candles, oil lamps, turpentine, benzene, naphtha, or other similar substances or explosives of any kind shall not be placed in or on the licensed premises. It is further agreed that no inflammable materials, such as bunting, tissue paper, crepe paper, etc., will be permitted to be used as decorations, and decorative materials unless they are treated with flame proofing and are approved by the appropriate inspector of the City of Miami Beach or Dade County, Florida, before the same are installed. In accordance with the City of Miami Beach liquor control regulation ordinance, any event held at BYRON CARLYLE TLEATRE which involves the consumption of alcoholic beverages must close the event no later than 5:00 A.M. on each event day. Compliance with this ordinance is mandatory. 8. Assignment and Subletting: Licensee shall not assign, transfer, sublet or subject this agreement or its right, title or interest therein without Licensor's prior written approval. 9. Powers to Vacate Premises: Licensor shall retain the right to cause interruption of any performance in the interest of public safety, and to likewise cause the termination of such performance when in the judgment of the Licensor such action is necessary in the interest of public safety. Should it become necessary in the judgment of the Licensor to evacuate the premises because of a bomb threat or for other reasons of public safety, the Licensee will retain possession of the premises, for sufficient time to complete presentation of its activity without additional renta1,charge providing such time does not interfere with another building Licensee. If it is not possible to complete presentation of the activity, rental shall be forfeited, prorated, or adjusted at the discretion of the .Licensor based upon the situation, and the Licensee hereby waives any claim for damages or compensation from the Licensor. Operator reserves the rights to make such announcements as are deemed necessary at any time in the interest of public safety. Licensee agrees that it will cooperate with the delivery of such announcements for public safety, including but not limited to, announcements to require patrons to leave their seats or to leave the premises. The Licensor reserves the right to eject or cause to be ejected from the premises any person or persons causing a disturbance, and neither the Licensor nor any of its officers, agents or employees shall be liable to the Licensee for any damages that may be sustained by the Licensee through the exercise by the Licensor of such right. 10. Canaellartion of Event by Licensee: In the event of a cancellation by Licensee of the Event, no deposit refund shall be made. Additionally, Licensee shall be obligated to pay the full amount of fees contemplated to be due hereunder had the Event actually occurred. The parties agree that Licensor will be damaged by any such cancellation, and that the exact amount of such damages would be either impossible or inconvenient to prove, and that the amounts set forth in the preceding sentence are a reasonable estimate of the amount of such damages. The parties further agree that such amount shall constitute cancellation fees, and not a penalty of any kind. The remedies set forth in this section are in addition to, and not in lieu of, any other rights or remedies Licensor may have, at law or in equity, in the event of a breach or cancellation of this Agreement by Licensee. recovery or subrogation against the Licensor. e) All policies must be issued by companies Domicile in the State of Florida and assigned a rating of A:X or better, per Best's Key Rating Guide, latest edition. f) The City must receive thirty (30) days written notice prior to any cancellation, non-renewal or material change to the required insurance policies. This written notice must be sent to the City of Miami Beach Risk Management Division, 1700 Convention Center Drive, Miami Beach, FL 33139. g) Evidence of the required insurance policies must be provided to Global Spectrum by submission of an original certificate of insurance thirty (30) days prior to the license period. h) Alternate coverage to satisfy these requirements is subject to prior approval of the City's Risk Manager. Additional insurance coverage, as determined by the City's Risk Manager, may be required for this license. 13. Administrative Charges: In the event any check, bank draft or negotiable instrument given for any money payment hereunder shall be dishonored at any time, for any reason whatsoever not attributable to Licensor, Licensor shall be entitled, in addition to any other remedy that may be available to make an administrative charge of Twenty ($20.00) Dollars for each such check. 14. Audit: Licensee shall make available to Licensor, upon request, all records and books related to this Agreement at such time and place as shall be designated by Licensor for examination thereof for the purpose of an audit to be performed by an auditor designated by Licensor. Licensee shall inform licensor of all services retained by it to provide services in connection with Licensee's License of Licensor's premises pursuant to this Agreement, that they must also agree to the aforesaid provision relating to audit upon request of Licensor. 15. Sale of Concessions: Licensor reserves, and at all times shall have the sole right to food and beverage, sundries, programs, novelties, souvenirs and periodicals and to rent and sell opera glasses, and other articles, to conduct check rooms, to control event programs and to supervise the contents thereof, to take photographs, to control or supervise radio, movie and/or television broadcasting or recording and transcription rights and equipment, and other privileges, and Licensee shall not engage in or undertake the sale of any of the aforesaid articles or privileges, without the express written consent of Licensor. Licensee agrees to pay to the Licensor 15% of its gross sales on programs, novelties, souvenixs , eta. 16. Right of Entry: Any duly authorized agent or agents or employees of the Licensor shall have the right at any time to enter into any and all parts of the premises for the purpose of inspecting the same, making or causing to be made, necessary repairs thereto, enforcing all necessary and proper rules for the management and operation of the , premises, and enforcing the Licensee's obligations hereunder. 17. Supply of Keys to Director: The Licensor or his representative shall have available to him at all times, total and complete access to all portions of the licensed premises. Licensee shall supply to the Licensor, or his representative, a key or keys to any and all parts of the premises which Licensee desires to secure under lock, such keys and locks to be provided for and installed and removed at the sole expense of Licensee, subject to immediate removal upon termination of this Agreement, or otherwise advertising materials relative to this performance. 21. Other Perms and Conditions: The Licensee shall provide at Licensee's sole cost and expense, off-duty Miami Beach Police Officers and off-duty Miami Beach Firefighters and/or Miami Beach Rescue Service as required by the Miami Beach Fire and Police Departments. 22. Force Majeure: Should Licensee be unable to take possession of the Premises or present the Event due to an Event of Force Majeure, neither Licensor nor Licensee shall have any liability under the Agreement and Licensee, as its sole remedy and relief, shall receive a refund of any uncommitted or cancelable advance payments less any expenses incurred by Licensor in preparing for the Event. The term "Event of Force Majeure" shall mean any and all acts of God, strikes, lock-outs, acts of the public enemy, laws, rules and regulations of governmental or quasi-governmental entities, wars or warlike action, arrest or other restraint of government (civil or military), blockades, insurrections, riots, terrorism or terrorist threats, epidemics, lightning, earthquakes, hurricanes, storms, floods, washouts, fire or other casualty, civil disturbances, explosions, threats of bombs or similar interruptions, confiscation or seizure by any government or public authority, nuclear reaction, radioactive contamination, accidents, or any other causes, whether of the kind herein enumerated or otherwise that are not: reasonably within the control or caused by the party claiming the right to delay the performance on account of such occurrence; provided, however, in no circumstances shall the monetary inability of a party to perform any obligation contained in this Agreement be construed to be an Event of Force Majeure. Upon removal or cessation of the Event of Force Majeure, the parties' respective rights and obligations hereunder shall be reinstated for any and all subsequent sessions of the Event remaining in the Term (if any). LICENSEE: Promoter's Company Name Miami Children's Chorus, Inc. October 8,201 0 Date: Ye?. /Y'. /& Date: Timothy A. Sharp / Music Director Print Name I Title LZCENSOB GLOBAL SPECTRUM, L.P. LICENSE AGREWNT THIS LICENSE AGREEMENT made this loth. day of , Marah 2011 ** by and between Global spectrum, L . P . , ("Liaensortl) , and Momentum Dance Company ("~f oensee. ") Delma lles Momentum Dance Company P.O. Box 331973 Coconut Orove, Fl. 33233-1 973 305-858-7002 or 305-606-8478 mdanceco@bellsouth.net Licensor manages, operates and maintains BYRON CARL;IILE THEATRE, on behalf of the City of Miami Beach, a Florida municipal corporation (the "City"), under rights granted by and obligations imposed under an agreement between City and Licensor. That the Licensor grants unto the Licensee the use and occupancy of BYRON CARLYLE THEATRE (Venue), upon the following terms and conditions for the sole purpose of: "Carazon Abriendo & Allomenturn Dance Comoanv ~8~. Season Finale " Thursday, May 12,201 1 Technical Day Friday, May 13,201 1 Performance at 8:00 PM Saturday, May 14,209 I Technical Dress Saturday, May 14y2011 Performance at 8:00 PM Sunday, May 15,201 1 Performance at 7:00 PM Rate: $550.00 Rate: $500.00 Rate: $300.00 Rate: $500.00 Rate: $500.00 TERMS AND CONDITIONS 1. Rent: Licensee shall pay rent to Licensor without demand, together with any and all sales, use and state taxes arising or accruing during the term of the License hold, plus the percentages and other charges as set forth below on the following basis: The Licensee hereby covenants and agrees to pay the following minimum rentals, or such higher rentals as shall be approved by the City Commission on or before 120 days prior to the date licensee takes occupancy under this license; provided, however, that licensee's obligation with respect to such higher rentals shall be limited to an increase of twelve per cent (12%) over the following minimum rentals. Rent; $2,350.00 (Two Thousand Three Hundred Dollars),Plus House Fees and Labor Expenses. The Licensee is subject to the terms and conditions of this LICENSE AGREEMENT. These Rental Documents comprise Licensee's obligation to rent BYROE CARLYLE THEATRE and are in full force and effect during the rental period. The License Agreement must be returned to the Global Spatrum office 1901 Convention Center Drive, Miami Beach, F1 33139 along with payment of a non-refundable 50% deposit payable to THE MEAM1 BEACH CONVENTTON CENTER no less than three months (90 days) prior to event date stated on signed Rider to the Venue Contract. The signed documents and security deposit must be received no later than 5:00 PM on the due date designated by the invoice or date will be automatically cancelled. Should the contraat be prepared less than thirty (30) days prior to the aommenaement of the rental period, then the Rental Documents and prepayment in full must be remitted no later Chan 5:00 PM, on khe due date designated by the invoice or the date will automatiaally be aancelled. Licensee accepts sole responsibility for compliance with the terms set forth in this contract, By signing this contract, Licensee takes full responsibility and obligation for all rental monies and additional charges incurred for perfomnae. Liaensee is fully responsible for full rental of any cancellation for the above-mentioned date. Licensor will provide Liaensee with a written estimate of all charges for Services provided by Liaensor and may revise such estimate from time to time In the event Licaensee has not completely vaaated the premises and returned said praises by the kntracted termination time, Licensor may assess additional rent at the prevailing hourly rental rate as approved by tbe City of Miami Beaah for eaah day or portion thereof beyond the aontraated evacuation time. The Liaensee is subject to the tenas and conditions of this LLCBNSE AORIEEWEWSP and RIDW TO THE ~/EST~. These Rental Doouments comprise Liaensee's obligation to rent Byron Carlyle Tbeatre and are in full force and effeat during the rental period. Licensee acaepts sole responeibility for oomplianae with the terms set forth in this contract. Premises and Equipment: a) This Agreement grants unto the Licensee the full use of stage, existing stage setting, stage properties, stage lights, dressing rooms, "green room", orchestra pit, orchestra, mezzanine or balcony seats, lobby and entry ways. The Licensee shall take the premises as they are at the time of occupancy by the Licensee. In the event the Licensee finds it necessary to remove or change the location of any stage rigging, settings, curtain or equipment, the changes shall be made by the Licensee at the Licenseels expense; provided, however, that no removals or changes shall be made without prior written consent of the Theater Director. Licensee further agrees to replace and restore all said stage riggings, settings, curtains or equipment to the former Location and condition in which the Licensee found them. b) Licensee agrees to pay costs of repair and replacement and all damages of whatever origin or nature which may occur during the term of this agreement in order to restore the licensed premises or other parts of the Licensor's premises affected by the event to a condition equal to that at the time this agreement became effective. Licensee shall deposit with Licensor the sum of Five Hundred dollars and no/100 ($500.00) Dollars to ensure performance of this provision or any other provision of this License Agreement. In the event the Licensee shall fully and faithfully comply with all of the terms, covenants, provisions, and conditions of this License, said security shall be set off against any rent owed to the Licensor at the termination of the License or returned in full if all obligations are fulfilled. In the event of any bankruptcy or other insolvency proceeding against Licensee, it is agreed that all security deposits held hereunder shall be deemed to be applied by Licensor to rent, sales tax and other charges due at date of bankruptcy and/or insolvency. C) Licensee shall not injure, mar, or in any manner deface the premises or any equipment contained therein and shall not cause or permit anything to be done whereby the said premises or equipment therein shall be in any manner injured marred or defaced. Licensee further agrees it will not tape items, drive or permit to be driven nails, hooks, tracks, or screws into any part of said building or equipment contained therein and will not make or allow to be made any alterations of any kind to said building or equipment contained therein. 3. Services: The Licensor shall furnish air conditioning during show hours only, house lights, public address system and water by means of the appliances installed for ordinary purposes, but for no other purposes. Interruptions, delays or failures in furnishing any of the same caused by anything beyond control of the Licensor shall not be chargeable to the Licensor. Licensor will provide one daily cleaning of all public spaces and between show clean-up as possible for events with more than one performance on a single day. It is agreed that the licensor shall provide at Licensee's sole cost and expense, ushers, floor managers, off-duty Miami Beach Police Officers, firemen as may be required by the Miami Beach Fire Department, stage crew, electricians, technicians, projectionists, sound system licensor, carpenters, machine licensor, and any and all help necessary for the promotion and presentation of the event. All employees and services not provided by City of Miami Beach are employees of Licensee. If additional maintenance personnel are required in excess of regular scheduling, due to Licensee use of the Theatre, Licensee will be solely responsible for all cost relating to additional maintenance and personnel. 4. Box Office: Licensor at all times reserves the authority, power and right to control the box office, including but not limited to, ticket printing, ticket personnel and ticket sales revenue. (a) Tiaksting: Licensor will order the tickets/create the event through Ticket Master of Florida as exclusive in-house ticketing, distribution and reporting system. Licensee charge for said distribution will be included in "House Fees". (b) Dietribution: Licensor shall have the right to offer tickets for sales at all of its approved agencies (Ticket Master of Florida). Licensee may request that ticket sales privileges be extended to additional agencies, and Licensor retains full and final authority to authorize such distribution approval. (c) Liaensee Holds: Licensor agrees to put a designated number of tickets on hold for sale by the Licensee for the purpose of season ticket holders. Licensee must notify the Licensor prior to putting the event on sale in writing as to the number of specific seats to be put on hold. Held seat will not be included in final box office settlement. Consignment tiakets will ba issued and used for trade deals or group sales only. Group sales will be required to pick-up and pay for tickets at the box of fiae . Additionally, Licensee assumes all responsibility for collection of funds from such approved agencies. ANY UNSOLD TICKETS CONSIGNED TO ADDITIONAL AOENCIES MUST BE RETURNED TO LICENSOR 24 HOURS BEFORE THE FXRST DAY OF THE EVENT. ANY TIMETS NOT SO RETURNED WILL BE CONSIDERED SOLD. (d) Ticket Prices: Licensee agrees that all tickets will be sold at the 3 advertised prices. Such advertised prices shall be mutually agreed upon in writing by Licensee and Licensor. Any changes in ticket prices shall require the prior written approval of Licensor. The approved agency will charge applicable handling charges. (e) Licensor will retain a minimum of fourteen (14) complimentary tickets for each event to be reserved for the City of Miami Beach. (f) Customer Credit: Licensee shall be responsible for the credit worthiness of its patrons. 5. Bight to Seauro Box Office Reaeipts: Licensee covenants and agrees to pay the Licensor on demand all sums due Licensor for any service, accommodations or materials furnished or loaned by Licensor and to authorize and permit Licensor to take such sums from any box office receipts or advance receipts belonging to Licensee in an amount sufficient to secure Licensor against loss in the event Licensee fails to make such payments. Licensor shall have a first lien and security interest on the box office receipts of Licensee to secure the payment of any sums due Licensor from Licensee for the use of the licensed premises, any accormnodations, services or materials furnished or loaned by Licensor, or any amounts due under this License. 6. Exaulpation and Indemnification Clause: Licensee agrees that it will indemnify, hold and save the City of Miami Beach ("City") and Licensor, their officers, agents, contractors and employees whole and harmless and at Licensor's option defend same, from and against all claims, demands, actions, damages, loss, cost, liabilities, expenses and judgments of any nature recovered from or asserted against Licensors on account of injury or damage to person or property to the extent that any such damage or injury may be incident to, arise out of, or be caused, either proximately or remotely, wholly or in part, by an act, omission, negligence or misconduct on the part of Licensee or any of its agents, servants, employees, contractors, patrons, guests, licensees or invitee or of any other person entering upon the Premises licensed hereunder with the express or implied invitation or permission of Licensee, or when any such injury or damage is the result, proximate or remote, of the violation by Licensee or any of its agents, servants, employees, contractors, patrons, guests, licensees or invitee of any law, ordinance or governmental order of any kind, or when any such injury or damage may in any other way arise from or out of the occupancy or use by Licensee, its agents, servants, employees, contractors, patrons, guests, licensees or invitee of the Premises licensed hereunder. Licensee covenants and agrees that in case Licensor or City shall be made parties to any litigation against Licensee or in any litigation commenced by any party other than Licensee relating to this License or to the Premises licensed hereunder, then Licensee shall and will pay all costs and expenses, including reasonable attorney's fees and court costs, incurred by or imposed upon Licensor or City by virtue of any such litigation. These terms of indemnification shall be effective unless such damage or injury may result from the sole negligence, gross negligence or willful misconduct of Licensor and/or the City. 7. Ordinances and Regulations: Licensee will comply with a19 laws, ordinances and regulations adopted or established by federal, state or local governmental agencies or bodies; and by all facility rules and regulations as provided by Licensor, and Licensee will require that its agents and employees likewise comply. Licensee agrees that at all times it will conduct its activities with full regard for public safety and will . observe and abide by all applicable regulations and requests by duly authorized governmental agencies responsible for public safety and by Licensor to assure such safety. Licensor further agrees that all portions of sidewalks, entries, doors, passages, vestibules, halls, corridors, stairways, passageways, and all ways of access to public utilities of the premises shall be kept unobstructed by the Licensee and shall not be used for any purpose other than ingress or egress to and from the prenuises by Licensee. Licensee also shall not use or store or permit to be used or stored in or on any part of the Licensed premises any substances or thing prohibited by law, ordinance, or standard policies of fire insurance companies operating in the State of Florida, without the permission of the Licensor. Illuminating oils, candles, oil lamps, turpentine, benzene, naphtha, or other similar substances or explosives of any kind shall not be placed in or on the licensed premises. It is further agreed that no inflammable materials, such as bunting, tissue paper, crepe paper, etc., will be permitted to be used as decorations, and decorative materials unless they are treated with flame proofing and are approved by the appropriate inspector of the City of Miami Beach or Dade County, Florida, before the same are installed. Tn accordance with the City of Miami Beach liquor control regulation ordinance, any event held at BYROW CARLYLE THEATRE which involves the consumption of alcoholic beverages must close the event no later than S:00 A.M. on each event day. Compliance with this ordinance is mandatory. 8. Assignm~nt and Subletting: Licensee shall not assign, transfer, sublet or subject this agreement or its right, title or interest therein without Licensor's prior written approval. 9. Powers to Vaaate Prcamises: Licensor shall retain the right to cause interruption of any performance in the interest of public safety, and to likewise cause the termination of such performance when in the judgment of the Licensor such action is necessary in the interest of public safety, Should it become necessary in the judgment of the Licensor to evacuate the premises because of a bomb threat or for other reasons of public safety, the Licensee will retain possession of the premises, for sufficient time to complete presentation of its activity without additional rental charge providing such time does not interfere with another building Licensee. If it is not possible to complete presentation of the activity, rental shall be forfeited, prorated, or adjusted at the discretion of the Licensor based upon the situation, and the Licensee hereby waives any claim for damages or compensation from the Licensor. Operator reserves the rights to make such announcements as are deemed necessary at any time in the interest of public safety. Licensee agrees that it: will cooperate with the delivery of such announcements for public safety, including but not limited to, announcements to require patrons to leave their seats or to leave the premises. The Licensor reserves the right to eject or cause to be ejected from the premises any person or persons causing a disturbance, and neither the Licensor nor any of its officers, agents or employees shall be liable to the Licensee for any damages that may be sustained by the Licensee through the exercise by the Licensor of such right. 10. Cancellation of Event by Liaensee: In the event of a cancellation by Licensee of the Event, no deposit refund shall be made. Additionally, Licensee shall be obligated to pay the full amount of fees contemplated to be due hereunder had the Event actually occurred. The parties agree that Licensor will be damaged by any such cancellation, and that the exact amount of such damages would be either impossible or inconvenient to prove, and that the amounts set forth in the preceding sentence are a reasonable estimate of the amount of such damages. The parties further agree that such amount shall constitute cancellation fees, and not a penalty of any kind. The remedies set forth in this section are in addition to, and not in lieu of, any other rights or remedies Licensor may have, at law or in equity, in the event of a breach or cancellation of this Agreement by Licensee. In the following formula, 'x" shall represent the number of calendar days from the date the Licensor received notice of cancellation from the Licensee to the first day of the License period and "y" shall represent the percentage of the License fee owed to the Licensor by the Licensee: If 'x" equals 150 or more calendar days, then "y" equals 25% (5 months to 1 year) Sf 'x" equals 75 to 149 calendar days, then 'yN equals 50% (2.5 months to 5 months) If 'x" equals 1 to 74 or more calendar days, the "y" equals 100% (1 day to 2.5 months 1 Licensor shall use reasonable efforts to re-rent the Premises, and license fees received by Licensor in the re-renting of the Premises shall reduce cancellation fees owed by Licensee by a like amount, with such reduction not to exceed the full amount of the cancellation fees owed. 11. Default and Liaensor's Remedies: Default shall be defined as the untimely performance of any and all clauses in this License or in the event guide which is incorporated by reference into this License. Licensor may exercise any and all remedies enumerated or permitted by law. Licensor may hold a landlord's lien on any and all personal when Licensee is in default and Licensee expressly gives Licensor permission to remove and store at Licensee's expense, any personal abandoned on the demised premises. The Licensee shall pay upon demand all Licensor1s expenses and costs incurred in enforcing the Licensee's obligations under this license including but not limited to: staff and leasing agents retained by Licensor, legal costs, charges and/or expenses, including reasonable attorney's fees incurred by Licensor in any pre-litigation negotiation, litigation and/or appeal in which the Licensee causes the Licensor to become involved or concerned. Licensor may resort to any one or more of such remedies or rights, and adoption of one or more such remedies or rights, shall not necessarily prevent the enforcement of other remedies or rights concurrently or thereafter. 12, Insuxanae: As additional consideration over and above the rental payments made by Licensee herein, Licensee shall, at its own expense, comply with all of the following insurance requirements of the Licensor. It is agreed by the parties that the Licensee shall not occupy the premises until proof of the following insurance coverage has been furnished to the City and Licensor. a) Commercial general liability insurance, on an occurrence £om, in the amount of Two Million ($2,000,000.00) Dollars per occurrence for bodily injury, death, property damage, and personal injury. The policy must include coverage for premises operations, blanket contractual liability (to cover indemnification section), products, completed operations and independent contractors. If the user ls activities involve the sale of alcohol, then liquor liability in the same amount is also required. These policies must name the City of Miami Beach and Global Spectrum, L.P. as additional insured. b) Automobile liability insurance in the amount of One Million ($1,000,000.00) Dollars per occurrence to provide coverage for any owned and non-owned vehicles used by the licensee on the Facility premises, including loading and unloading hazards. This must name the City of Miami Beach and Global Spectrum, L.P. as additional insured. C) Workers1 compensation and employer's liability coverage as required by Florida Statute. d) It is understood and agreed that all coverage's provided by the Licensee are primary to any insurance or self-insurance program the City has for this Facility and the Licensee and their insurance shall have no right of recovery or subrogation against the Licensor. el All policies must be issued by companies Domicile in the State of Florida and assigned a rating of A:X or better, per Best's Key Rating Guide, latest edition. f) The City must receive thirty (30) days written notice prior to any cancellation, non-renewal or material change to the required insurance policies. This written notice must be sent to the City of Miami Beach Risk Management Division,. 1700 Convention Center Drive, Miami Beach, FL 33139. g) Evidence of the required insurance policies must be provided to Global Spectrum, L.P. by submission of an original certificate of insurance thirty (30) days prior to the license period. h) Alternate coverage to satisfy these requirements is subject to prior approval of the City's Risk Manager. Additional insurance coverage, as determined by the City's Risk Manager, may be required for this license. 13. Administrative Charges: In the event any check, bank draft or negotiable instrument given for any money payment hereunder shall be dishonored at any time, for any reason whatsoever not attributable to Licensor, Licensor shall be entitled, in addition to any other remedy that may be available to make an administrative charge of Twenty-Five ($25.00) Dollars for each such check. 14. Audit: Licensee shall make available to Licensor, upon request, all records and books related to this Agreement at such time and place as shall be designated by Licensor for examination thereof for the purpose of an audit to be performed by an auditor designated by Licensor. Licensee shall inform licensor of all services retained by it to provide services in connection with Licensee's License of Licensor's premises pursuant to this Agreement, that they must also agree to the aforesaid provision relating to audit upon request of Licensor. 15. Sale of Concessions: Licensor reserves, and at all times shall have the sole right to food and beverage, sundries, programs, novelties, souvenirs and periodicals and to rent and sell opera glasses, and other articles, to conduct check rooms, to control event programs and to supervise the contents thereof, to take photographs, to control or supervise radio, movie and/or television broadcasting or recording and transcription rights and equipment, and other privileges, and Licensee shall not engage in or undertake the sale of any of the aforesaid articles or privileges, without the express written consent of Licensor. Licensee agrees to pay to the Licensor 158 of its gross sales on programs, novelties, souvenirs, eta. 16. Right of Entry: Any duly authorized agent or agents or employees of the Licensor shall have the right at any time to enter into any and all parts of the premises for the purpose of inspecting the same, making or causing to be made, necessary repairs thereto, enforcing a11 necessary and proper rules for the management and operation of the premises, and enforcing the Licensee's obligations hereunder. 17. Supply of Keys to Director: The Licensor or his representative shall have available to him at all times, total and complete access to all portions of the licensed premises. Licensee shall supply to the Licensor, or his representative, a key or keys to any and all parts of the premises which Licensee desires to secure under lock, such keys and locks to be provided for and installed and removed at the sole expense of Licensee, subject to immediate removal upon termination of this Agreement, or otherwise at the discretion of the Director. In the event the Director determines it to be necessary to remove any locks which have been installed by Licensee, the Director may order such removal, the cost of which shall be borne by Licensee. 19. No Box office Baihnent: In the handling, control, custody and keeping of receipts and funds, whether the same are received through the box office or otherwise, the Licensor is acting for the accommodation and sole benefit of Licensee and that, as to such receipts and funds, the Licensor shall be responsible only for gross neglect or bad faith. 19. Liaenaor's Discretion: Any matter not expressly provided for herein shall be within the reasonable discretion of the Licensor. 20. Mfsaellaneous: (a) All legal proceedings arising from this license shall be in the courts situated in Dade County, Florida. (b) Sf any section, subsection, clause or provision of this License is held invalid, the remainder shall not be affected by such invalidity. (c) This License may only be altered, changed or amended, by an instrument in writing signed by both parties hereto. (d) No waiver of any covenant or condition of this License by either party shall be deemed to imply or constitute a further waiver of the same covenant or condition or any other covenant or condition of this License. (el This License contains and embodies the entire agreement of the parties hereto and no representations, inducements or agreements oral or otherwise, between the parties not contained and embodied herein shall be of any force and effect. (f) In any conflict between the License and other written provisions the license shall prevail. (g) CKECKLIST/QUESTTONAIRE and RIDER TO VENOE CONTRACT are hereby incorporated into this agreement by reference unless otherwise amended by separate addendum. (h) All federal, state, and Local laws and/or regulations related to copyright, trademarks, etc. must be complied with by the Licensee and all exhibitors selling such items on the premises. Further, the Licensee agrees to save and completely hold harmless the City of Miami Beach and Global Spectrum, and to pay all costs related to any violation of the above. (i) The licensee acknowledges and understands that this contract in no way affords any rights and does not authorize any signage to be placed outside the boundaries of the Theater property. We strongly suggest that the licensee obtains all appropriate permits and licenses for off-site signage from the City of Miami Beach Building and/or Code Enforcement Department. j The Licensee acknowledges and agrees that it is their sole responsibility to provide appropriate information related to the availability of seating for patrons with disabilities. Further the Licensee understands and agrees that information on such seating must be included in all promotional and advertising materials relative to this performance. (k) A Guest Services/Security person is positioned at the Stage Door of the Colony Theatre pre-show and during performances. This secures the backstage area for a performers and production only environment. The charge is $15.00 per hour with a four hour minimum. 21. Other Tecms and Conditiona: The Licensee shall provide at Licensee's sole cost and expense, off-duty Miami Beach Police Officers and off-duty Miami Beach Firefighters and/or Miami Beach Rescue Service as required by the Miami Beach Fire and Police Departments. 22. Foroe Majeure: Should Licensee be unable to take possession of the Premises or present the Event due to an Event of Force Majeure, neither Licensor nor Licensee shall have any liability under the Agreement and Licensee, as its sole remedy and relief, shall receive a refund of any uncommitted or cancelable advance payments less any expenses incurred by Licensor in preparing for the Event. The term "Event of Force Majeure" shall mean any and all acts of God, strikes, lock-outs, acts of the public enemy, laws, rules and regulations of governmental or quasi-governmental entitles, wars or warlike action, arrest or other restraint of government (civil or military), blockades, insurrections, riots, terrorism or terrorist threats, epidemics, lightning, earthquakes, hurricanes, stoxms, floods, washouts, fire or other casualty, civil disturbances, explosions, threats of bombs or similar interruptions, confiscation or seizure by any government or public authority, nuclear reaction, radioactive contamination, accidents, or any other causes, whether of the kind herein enumerated or otherwise that are not reasonably within the control or caused by the party claiming the right to delay the performance on account of such occurrence; provided, however, in no circumstances shall the monetary inability of a party to perform any obligation contained in this Agreement be construed to be an Event of Force Majeure. Upon removal or cessation of the Event of Force Majeure, the partiest respective rights and obligations hereunder shall be reinstated for any and all subsequent sessions of the Event remaining in the Term (if any). Date: (r5.?r#* #rr Date: 1-3trr - Artiutic. 'a; mcta Print Name I Title LICENSOR: GLOBAL SPECTRUM, L.P. By: F ~enerd Manager Robert L, Balsam, Jr. LEASE AGREEMENT TKIS LEASE AGREEMENT made this 24-. day of March, 2011 by and between GLOBAL SPECTRUM (mOperstorn) , and. FUNDarte nfieasee. FUNDarte Ever Chavez 7601 Byron Ave. Suite 4c Miami Beach, FI. 33141 306-867-1 145 off 305316-6166 cell ever@undarte.us P(llmTgS SBTB a Operator manages, operates and maintains the BYRON CARLYLE THEATER, on behalf of the City of Miami Beach, a Florida municipal corporation (the nCityn), under rights granted by and obligations imposed under an agreement between City and Operator. That the Operator grants unto the Lessee the use and occupancy of the BYRON CARLYLE THEATER (Venue), upon the following terms and conditions for the sole purpose of: "Teatro de Las Estaciones: Por El Monte Carule" Saturday, April 30,201 1 TechlWorkshop Rate: $550.00 Sunday, May 1, 201 1 TechlPerformance Rate: $500.00 TERMS AND CONDITIONS 1. Rent a sales, use percentages Lessee shall pay rent to Operator without demand, together with any and all and state taxes arising or accruing during the term of the Leasehold, plus the and other charges as set forth below on the following basis: The Lessee hereby covenants and agrees to pay the following minimum rentals, or such higher rentals as shall be approved by the City Commission on or before 120 days prior to the date lessee takes occupancy under this lease; provided, however, that lessee's obligation with respect to such higher rentals shall be limited to an increase of twelve per cent (12%) over the following minimum rentals. The Lessee is subject to the terms and conditions of this LEASE AGRISEhfERP and ~ider to the Vanue Contract (the "Rental Documents). These Rental Documents comprise Lessee's obligation to rent the BYROB CARLYLE THEATER and are in full force and effect during the rental period. Both Copies of The &ease Agreement must be returned to the GLOBAL SPECTRUN office 1901 Convention Center Drive, Miami Beach, F1 33139 along with payment of a non-refundable 50% deposit payable made out to Mid Beach Convention Center no less than four months (120 Bays) prior to event date stated. The signed documents and security deposit must be received no later than 5: 00 PM on the due date designated by the Lease Agreement and Rider to Venue Contract or date will be automatically canceled. The balance shall be due no later than 5:OOpm on the due date designated by the Lease Aqreement and Rider to the Venue Contract or the date will be automatically cancelled. Should the contract be prepared less than forty-five (45) days prior to the camencexaant of the rental period, then the Rental Documents and prepayment ia full muat be remitted no later than 5:00 PX, on the due date designated by the LEASB AGRBEMENT or the date will automatically be cancelled. Lessee accepts sole responsibility for compliance with the terms set forth in this contract. By signing this contract, Lessee takes full responsibility and obligation for all rental monies and additional charges incurred for performance. Lessee is fully responsible for full rental of any cancellation for the above-mentione8 date. Operator will provide Lessee with a written estimate of all charges for Services provided by Operator and may revise such estimate from time to time In the event Lessee has not completely vacated the prdses and returned said premises by the contracted tednation the, Operator may assess additional rent at the prevailing daily rental rate as approved by the City of Miami Beach for each day or gortioa &hereof beyond the contracted evacuation time. The Lessee is subject to the terms and conditions of this IIWE AGREEMENT and RIDBR TO TIiE VENVB CONTRACT/ESTTdrlATE (the -Rental DocumentsA). These Rental Documents comprise Lessee's obligation to rent the Byron Carlyle Theater and are in full force and effect during the rental period. Lessee accepts sole responsibility for campliance with the terms set forth in this contract. 2. Premises and Equipment: a) This Agreement grants unto the Lessee the full use of stage, existing stage setting, stage properties, stage lights, dressing rooms, "green room", orchestra pit, orchestra, mezzanine or balcony seats, lobby and entry ways. The Lessee shall take the premises as they are at the time of occupancy by the Lessee. In the event the Lessee finds it necessary to remove or change the location of any stage rigging, settings, curtain or equipment, the changes shall be made by the Lessee at the Lessee's expense; provided, however, that no removals or changes shall be made without prior written consent of the Theater Director. Lessee further agrees to replace and restore all said stage riggings, settings, curtains or equipment to the former location and condition in which the Lessee found them. bl Lessee agrees to pay costs of repair and replacement and all damages of whatever origin or nature which may occur during the term of this agreement in order to restore the leased premises or other parts of the Operator's premises affected by the event to a condition equal to that at the time this agreement became effective. Lessee shall deposit with Operator the sum of Five Hundred dollars and no/100 ($500.00) Dollars to ensure performance of this provision or any other provision of this Lease Agreement. In the event the Lessee shall fully and faithfully comply with all of the terms, covenants, provisions, and conditions of this Lease, said security shall be set off against any rent owed to the Operator at the termination of the Lease or returned in full if all obligations are fulfilled. In the event of any bankruptcy or other insolvency proceeding against Lessee, it is agreed that all security deposits held hereunder shall be deemed to be applied by Operator to rent, sales tax and other charges due at date of bankruptcy and/or insolvency. C) Lessee shall not injure, mar, or in any manner deface the premises or any equipment contained therein and shall not cause or permit anything to be done whereby the said premises or equipment therein shall be in any manner injured marred or defaced. Lessee further agrees it will not tape items, drive or permit to be driven nails, hooks, tracks, or screws into any part of said building or equipment contained therein and will not make or allow to be made any alterations of any kind to said building or equipment contained therein. 3. Servlceat The Operator shall furnish air conditioning during show hours only, house lights, public address system and water by means of the appliances installed for ordinary puxposes, but for no other purposes. Interruptions, delays or failures in furnishing any of the same caused by anything beyond control of the Operator shall not be chargeable to the operator. Operator will provide one daily cleaning of all public spaces and between show cleanups as possible for events with more than one performance on a single day. It is agreed that the operator shall provide at Lessee's sole cost and expense, ushers, floor managers, off-duty Miami Beach Police Officers, firemen as may be required by the Miami Beach Fire Department, stage crew, electricians, technicians, projectionists, sound system operator, carpenters, machine operator, and any and all help necessary for the promotion and presentation of the event. All employees and services not provided by City of Miami Beach are employees of Lessee. If additional maintenance personnel are required in excess of regular scheduling, due to Lessee1 use of the Theater, Lessee will be solely responsible for all cost relating to additional maintenance and personnel. 4. Box Office: Operator at all times reserves the authority, power and right to control the box office, including but not limited to, ticket printing, ticket personnel and ticket sales revenue. fa1 Ticketing: operator will order the tickets/create the event through TicketMaster of Florida as exclusive in-house ticketing, distribution and reporting system. Lessee charge for said distribution will be included in "House FeesH. The Theater Box-Office must retain a minimum of 50 tickets for each performance. (b) Di strPbutioar operator shall have the right to offer tickets for sales at all of its approved agencies (TicketMaster of Florida). Lessee may request that ticket sales privileges be extended to additional agencies, and Operator retains full and final authority to authorize such distribution approval. (c) Lessee Holds r Operator agrees to put a number of tickets on hold for sale by the Lessee for the purpose of season ticket holders. Lessee must notify the Operator prior to putting the event on sale in writing as to the number of specific seats to be put on hold. Held seat will not be included in final box office settlement. Consignment tickets will be issued and used Por trade deals at group sales only. Group sales will baarequired to pick-up and gay for tickets at the box office. Additionally, Lessee assumes all responsibility for collection of funds from such approved agencies. AWP UNSOLD TXCKBITS CONSIGNED TO ADDITIONAL AGENCIES MUST BE RETURNED TO OPERATOR 24 HOURS BEFORE TEE FIRST DAY 08 THE FVENT. ANY TICKlETS NOT SO RETURNED WILL BE WNSIDERED SOLD. (d) Tickat Prices: Lessee agrees that all tickets will be sold at the advertised prices. Such advertised prices shall be mutually agreed upon in writing by Lessee and Operator. Any changes in ticket prices shall require the prior written approval of Operator. The approved agency will charge applicable handling charges. (e) Operator will retain a minimum of fourteen (14) complimentary tickets for each event to be reserved for the City of Miami Beach until one (1) hour before advertised time of show. (f) Customer Credit: Lessee shall be responsible for the credit worthiness of its patrons. 5. Right to Secure Box Office Receipts: Lessee covenants and agrees to pay the Operator on demand all sums due Operator for any service, accommodations or materials furnished or loaned by Operator and to authorize and permit Operator to take such sums from any box office receipts or advance receipts belonging to Lessee in an amount sufficient to secure Operator against loss in the event Lessee fails to make such payments. Operator shall have a first lien and security interest on the box office receipts of Lessee to secure the payment of any sums due Operator from Lessee for the use of the leased premises, any accommodations, services or materials furnished or loaned by Operator, or any amounts due under this Lease. 6. Exculpation and Indemnification Clause: Lessee agrees that it will indemnify, hold and save the City of Miami Beach ('lCity1') and Operator, their officers, agents, contractors and employees whole and harmless and at Operator's option defend same, from and against all claims, demands, actions, damages, loss, cost, liabilities, expenses and judgments of any nature recovered from or asserted against Operators on account of injury or damage to person or property to the extent that any such damage or injury may be incident to, arise out of, or be caused, either proximately or remotely, wholly or in part, by an act, omission, negligence or misconduct on the part of Lessee or any of its agents, servants, employees, contractors, patrons, guests, licensees or invitee or of any other person entering upon the Premises leased hereunder with the express or implied invitation or permission of Lessee, or when any such injury or damage is the result, proximate or remote, of the violation by Lessee or any of its agents, servants, employees, contractors, patrons, guests, licensees or invitee of any law, ordinance or governmental order of any kind, or when any such injury or damage may in any other way arise from or out of the occupancy or use by Lessee, its agents, servants, employees, contractors, patrons, guests, licenseel;: or invitee of the Premises leased hereunder. Lessee covenants and agrees that in case Operator or City shall be made parties to any litigation against Lessee or in any litigation commenced by any party other than Lessee relating to this Leaee or to the Premises leased hereunder, then Lessee shall and will pay all costs and expenses, including reasonable attorney's fees and court costs, incurred by or imposed upon Operator or City by virtue of any such litigation. These terms of indemnification shall be effective unless such damage or injury may result from the sole negligence, gross negligence og willful misconduct of Operator and/or the City. 7. Ordinances and Regulations: Lessee will comply with all laws, ordinances and regulations adopted or established by federal, state or local governmental agencies or bodies; and by all facility rules and regulations as provided by Operator, and Lessee will require that its agents and employees likewise comply. Lessee agrees that at all times it will conduct its activities with full regard for public safety and will observe and abide by all applicable regulations and requests by duly authorized governmental agencies responsible for public safety and by Operator to assure such safety. Operator further agrees that all portions of sidewalks, entries, doors, passages, vestibules, halls, corridors, stairways, passageways, and all ways of access to public utilities of the premises shall be kept unobstructed by the Lessee and shall not be used for any purpose other than ingress or egress to and from the premises by Lessee. Lessee also shall not use or store or permit to be used or stored in or on any part of the Leased premises any substances or thing prohibited by law, ordinance, or standard policies of fire insurance companies operating in the State of Florida, without the permission of the Operator. Illuminating oils, candles, oil lamps, turpentine, benzene, naphtha, or other similar substances or explosives of any kind shall not be placed in or on the licensed premises. It is further agreed that no inflammable materials, such as bunting, tissue paper, crepe paper, etc., will be permitted to be used as decorations, and decorative materials unless they are treated with flameproofing and are approved by the appropriate inspector of the City of Miami Beach or Dade County, Florida, before the same are installed. In accordance with the City of ~iami Beach liquor control regulation ordinance, any event held at the Byron Carlyle Theater which involves the consumption of alcoholic beverages must close the event no later than 5:OOA.M. on each event day. Compliance with this ordinance is mandatory. 8. Assigmmnt and Subletting: Lessee shall not assign, transfer, sublet or subject this agreement or its right, title or interest therein without Operator's prior written approval. 9. Powers to Vacate Premises: Operator shall retain the right to cause interruption of any performance in the interest of public safety, and to likewise cause the termination of such performance when in the judgment of the Operator such action is necessary in the interest of public safety. Should it become necessary in the judgment of the Operator to evacuate the premises because of a bomb threat or for other reasons of public safety, the Lessee will retain possession of the premises, for sufficient time to complete presentation of its activity without additional rental charge providing such time does not interfere with another building Lessee. If it is not possible to complete presentation of the activity, rental shall be forfeited, prorated, or adjusted at the discretion of the Operator based upon the situation, and the Lessee hereby waives any claim for damages or compensation from the Operator. Operator reserves the rights to make such announcements as are deemed necessary at any time in the interest of public safety. Lessee agrees that it will cooperate with the delivery of such announcements for public safety, including but not limited to, announcements to require patrons to leave their seats or to leave the premises. The Operator reserves the I right to eject or cause to be ejected from the premises any person or persons causing a disturbance, and neither the Operator nor any of its officers, agents or employees shall be liable to Ule Lessee for any damages that may be sustained by the Lessee through the exercise by the Operator of such right. 10. Liquidated DamWigeEI: If Lessee cancels any event, Lessee agrees to pay Operator the following amounts as liquidated damages and not as a penalty. The parties agree that such amounts constitute reasonable provision for liquidated damages: a) If Lessee cancels more than 60 days before the first scheduled day of event, one half of the rental charge shall be payable to Operator as liquidated damages . b) If Lessee cancels less than 60 days before the first scheduled day of the event or enters into any default as defined in Section 12 of this Agreement, the entire rental charge shall be payable to Operator as liquidated damages. c) If Lessee cancels less than 60 days before the first scheduled day of the event or enters into any default as defined in Section 12 of this Agreement, the entire rental charge shall be payable to Operator as liquidated damages. If Operator is able to rent any portion of the cancelled time a credit may be given to the canceled Lessee for recovered expenses. 11, Default and Operator's Remediesr Default shall be defined as the untimely performance of any and all. clauses in this Lease or in the event guide which is incorporated by reference into this Lease. Operator may exer~ise~any and all remedies enumerated or permitted by law. Operator may hold a landlord's lien on any and all personalty when Lessee is in default and Lessee expressly gives Operator permission to remove and store at Lessee's expense, any personalty abandoned on the demised premises. The Lessee shall pay upon demand all Operator's expenses and costs incurred in enforcing the Lessee's obligations under this lease including but not limited to: staff and leasing agents retained by Operator, legal costs, charges and/or expenses, including reasonable attorney's fees incurred by Operator in any pre-litigation negotiation, litigation and/or appeal in which the Lessee causes the Operator to become involved or concerned. Operator may resort to any one or more of such remedies or rights, and adoption of one or more such remedies or rights, ~lhall not necessarily prevent the enforcement of other remedies or rights concurrently or thereafter. 12. Insurance: As additional consideration over and above the rental payments made by Lessee herein, Lessee shall, at its own expense, comply with all of the following insurance requirements of the Operator. It is agreed by the parties that the Lessee shall not occupy the premises until proof of the following insurance coverage has been furnished to the City and Operator. a) Commercial general liability insurance, on an occurrence Corm, in the amount of Two Million ($2,000,000.00) Dollars per occurrence for bodily injury, death, property damage, and personal injury. The policy must include coverage for premises operations, blanket contractual liability (to cover indemnification section), products, completed operations and independent contractors. If the user's activities involve the sale of alcohol, then liquor liability in the same amount is also required. These policies must name the City of Z&Lami Beach and GfiOBAL SPECTI1UM as additional insureds. b) . Automobile liability insurance in the amount of One Million ($1,000,000.00) Dollars per occurrence to provide coverage for any owned and non-owned vehicles used by the lessee on the Facility premises, including loading and unloading hazards. This must name the City of Miami Beach and GLOBAL SPECTRUM as additional insureds. C) Workers1 compensation and employer's liability coverage as required by Florida Statute. d) It is understood and agreed that all coverages provided by the Lessee are primary to any insurance or self-insurance program the City has for this Facility and the Lessee and their insurance shall have no right of recovery or subrogation against the Operator. e) All policies must be issued by companies Domicile in the State of Florida and assigned a rating of A:X or better, per Best's Key Rating Guide, latest edit ion. f) The City must receive thirty (30) days written notice prior to any cancellation, non-renewal or material change to the required insurance policies. This written notice must be sent to the City of Miami Beach Risk Management Division, 1700 Convention Center Drive, Miami Beach, FL 33139. g) Evidence of the required insurance policies must be provided to GLOBAL SPECTRUM by eubmission of an original certificate of insurance thirty (30) days prior to the lease period. h) Alternate coverage to satisfy these requirements is subject to prior approval of the City's Risk Manager. Additional insurance coverage, as determined by the City's Risk Manager, may be required for this lease. 13. Aaministrstive Charges: In the event any check, bank draft or negotiable instrument given for any money payment hereunder shall be dishonored at any time, for any reason whatsoever not attributable to Operator, Operator shall be entitled, in addition to any other remedy that may be available to make an administrative charge of Twenty ($20.00) Dollars for each such check. 14. Audit? Lessee shall make available to Operator, upon request, all records and books related to this Agreement at such time and place as shall be designated by Operator for examination thereof for the purpose of an audit to be performed by an auditor designated by Operator. Leesee shall inform operator of all services retained by it to provide services in connection with Lessee's Lease of Operator's premises pursuant to this Agreement, that they must also agree to the aforesaid provision relating to audit upon request of Operator. 15. Sale of Concessions: Operator reserves, and at all times shall have the sole right: to food and beverage, sundries, programs, novelties, souvenirs and periodicals and to rent and sell opera glasses, and other articles, to conduct check rooms, to control event programs and to supervise the contents thereof, to take photographs, to control or supervise radio, movie and/or television broadcasting or recording and transcription rights and equipment, and other privileges, and Lessee shall not engage in or undertake the sale of any of the aforesaid articles or privileges, without the express written consent of Operator. Lessee agrees to pay to the Operator 15% of its gross salw on programs, novelties, souvenirs, etc. 16. Right of Entry: ?my duly authorized agent or agents or employees of the Operator shall have the right at any time to enter into any and all parts of the premises for the purpose of inspecting the same, making or causing to be made, necessary repairs thereto, enforcing all necessary and proper rules for the management and operation of the premises, and enforcing the Lessee's obligations hereunder. 17. Supply of Keya to Director: The Operator or his representative shall have available to him at all times, total and complete access to all portions of the leased premises. Lessee shall supply to the Operator, or his representative, a key or keys to any and all parts of the premises which Lessee desires to secure under lock, such keys and locks to be provided for and installed and removed at the sole expense of Lessee, subject to immediate removal upon termination of this Agreement, or otherwise at the discretion of the Director. In the event the Director determines it to be necessary to remove any locks which have been installed by Lessee, the Director may order such removal, the cost of which shall be borne by Lessee. 18. No Box office Bailmentr In the handling, control, custody and keeping of receipts and funds, whether the same are received through the box office or otherwise, the Operator is acting for the accommodation and sole benefit of Lessee and that, as to such receipts and funds, the Operator shall be responsible only for gross neglect or bad faith. 19. Operator's Discretion: Any matter not expressly provided for herein shall be within the reasonable discretion of the Operator. 20. Miscallaneous: (a) All legal proceedings arising from this lease shall be in the courts situated in Dade County, Florida. (b) If any section, subsection, clause or provision of this Lease is held invalid, the remainder shall not be affected by such invalidity. (c) This Lease may only be altered, changed or amended, by an instrument in writing signed by both parties hereto. (dl No waiver of any covenant or condition of this Lease by either party shall be deemed to imply or constitute a further waiver of the same covenant or condition or any other covenant or condition of this Lease. (el This Lease contains and embodies the entire agreement of the parties hereto and no representations, inducements or agreements oral or otherwise, between the parties not contained and embodied herein shall be of any force and effect. (fl In any conflict between the Lease and other written provisions the lease shall prevai 1. (9) CHECKLIST/QUESTIONN~IRE and INVOICE are hereby incorporated into this agreement by reference unless otherwise amended by separate addendum. (h) All federal, state, and local laws and/or regulations related to copyright, trademarks, etc. must be complied with by the Lessee and all exhibitors selling such items on the premises. Further, the Lessee agrees to save and completely hold harmless the City of Miami Beach and GLOBAL SPECTRUM, and to pay all costs related to any violation of the above. (il The Lessee acknowledges and understands that this contract in no way affords any rights and does not authorize any signage to be placed outside the boundaries of the Theater property. We strongly suggest that the lessee obtains all appropriate permits and licenses for off-site signage from the City of ~iami Beach Building and/or Code Enforcement Department. (j) The Lessee acknowledges and agrees that *t: is their sole responsibility to provide appropriate information related to the availability of seating for patrons with disabilities. Further the Lessee understands and agrees that information on such seating must be included in all promotional, and advertising materials relative to this performance. 21. Other Terms and Conditions: The Lessee shall provide at Lessee's sole cost and expense, off -duty Miami Beach Police Officers and off -duty Miami Beach Firefighters and/or Miami Beach Rescue Service as required by the Miami Beach Fire and Police Departments. 22. Forcer Mejeursz If the Facility is damaged from any cause whatsoever or if any other casualty or unforeseeable cause beyond the control of Operator or Lessee, including, without limitation, acts of God, fires, floods, epidemics, quarantine restrictions, strikes, failure of public utilities, or unusually severe weather, prevents occupancy and use, or either, as granted in the Agreement, Operator is hereby released by Lessee and Lessee is hereby released by operator from any damage so caused thereby. D T/+/!, Date: Date: LESSEE: ** company ~4 OPERATOR: GLOBAL SPECTIiUM # .-----c ~ehral Manager Robert Balsam LICENSE AGREEMENT THIS LICENSE AGREEMENT made this 17*. day of July, 2010 ** by and between Global Spectrum, L. P. , ("Li~ensor~~) , and Lehrman Community Day School (~~icensee. Janet L. Rapp Lehrman Community Day School 727 77'" St Miami Beach, FI 305-866-2771 Jrapp@LehrmanschooI.org WITNESSETH: Licensor manages, operates and maintains BYRON CARSntE THEATRE, on behalf of the City of Mid Beach, a Florida municipal corporation (the "City"), under rights granted by and obligations imposed under an agreement between City and Licensor. That the Licensor grants unto the Licensee the use and occupancy of BYRON CARLYLE THEATRE (Venue), upon the following terms and conditions for the sole purpose of: "Beautv and the BeastN Tuesday, April 12,201 1 TechlDmss Rehearsal Rate: 500 Wednesday, April 13,201 1 Performance Rate: 500 TERMS AND CONDITIONS 1. Rent: Licensee shall pay rent to Licensor without demand, together with any and all sales, use and state taxes arising or accruing during the tern of the License hold, plus the percentages and other charges as set forth below on the following basis : The Licensee hereby covenants and agrees to pay the following minimum rentals, or suah higher rentals as shall be approved by the City Commission on or before 120 days prior to the date licensee takes occupancy under this license; provided, however, that licensee's obligation with respect to such higher rentals shall be limited to an increase of twelve per cent (12%) over the following minimum rentals. Rent $1000.00 (One Thousand Dollars),Pl~~a Howr Fees d Labor Exsensea. The Licensee is subject to the terms and conditions of this LICENSE AGREEMENT. These Rental Documents comprise Licenseers obligation to rent BYRON CARLYLE TmTRE and are in full force and effect during the rental period. The License Agreement must be returned to the ClobdL Spectrum office 1901 Convention Center Drive, Miami Beach, F1 33139 along with payment of a non-refundable 50% deposit payable to THE btIAMI BEACH COWENTION CENTER no less than four months (120 days) prior to event date stated on sigbed Rider to the Venue contract. The signed documents and security deposit must be received no later than 5:00 PM on the due date designated by the invoice or date will be automatically cancelled. Should the contract be prepared less than forty-five (45) days prior to the conuuencement of the rental period, then the Rental Documents and prepayment in full mast be remitted no latex than 5:00 PM, on the due date designated by the invoice or the date will au.t:omaticdlly be cancelled. Licensee accepts sole responsibility for compliance with the terns set forth in this contract. $500 ..go [Five Hundred. Dollars1 SsmaritJt Deposit payable ta 'PfIg MIAMI By signing this contract, Licensee takes full responsibility and obligation for all rental monies and additional charges incurred for perfo-ce. Licensee is fully responsible for full rental of any cancellation for the above-mmtioned date. Licensor will provide Licensee with a written estiaate of all crharges for Sexvices provided by Licensor and my revise such estimate from time to time In the event Licensee has not completely vacated the premises and returned said prdses by the aontracted termination time, Licensor may assess additional rent at the predlinq hourly rental rate as approved by the City of ~~ Beach for each day or portion thereof beyond the contracted evacuation time. Tha Lioenssle is subjeat to the terms and conditions of this LICENSE -T and RIDER 2.0 THE ~/ESTDfAlZ. These Rental Documents cowrise Licensee's obligation to rant Byron Carlyle Theatre and are in full force and effect during the rental period. Licensee accepts sole responsibility for compliance with the tarms set forth in this contract. Prdses and Equipment: a) This Agreement grants unto the Licensee the full use of stage, existing stage setting, stage properties, stage lights, dressing rooms, "green roomn, orchestra pit, orchestra, mezzanine or balcony seats, lobby and entry ways. The Licensee shall take the premises as they are at the time of occupancy by the Licensee. In the event the Licensee finds it necessary to remove or change the location of any stage rigging, settings, curtain or equipment, the changes shall be made by the Licensee at the Licensee's expense; provided, however, that no removals or changes shall be made without prior written consent of the Theater Director. Licensee further agrees to replace and restore all said stage riggings, settings, curtains or equipment to the former location and condition in which the Licensee found them. b) Licensee agrees to pay costs of repair and replacement and all damages of whatever origin or nature which may occur during the term of this agreement in order to restore the licensed premises or other pa.rts of the Licensor's premises affected by the event to a condition equal to that at the time this agreement became effective. Licensee shall deposit with Licensor the sum of Five Hundred dollars and noI100 ($500.00) Dollars to ensure performance of this provision or any other provision of this License Agreement. In the event the Licensee shall fully and faithfully comply with all of the terms, covenants, provisions, and conditions of this License, said security shall be set off against any rent owed to the Licensor at the termination of the License or returned in full if all obligations are fulfilled. In the event of any bankruptcy or other insolvency proceeding against Licensee, it is agreed that all security deposits held hereunder shall be deemed to be applied by Licensor to rent, sales tax and other charges due at date of bankruptcy and/or insolvency. C) Licensee shall not injure, mar, or in any manner deface the premises or any equipment contained therein and shall not cause or permit anything to be done whereby the said premises or equipment therein shall be in any manner injured marred or defaced. Licensee further agrees it will not tape items, drive or permit to be driven nails, hooks, tracks, or screws into any part of said building or equipment contained therein and will not make or allow to be made any alterations of any kind to said building or equipment contained therein. 3. Services: The Licensor shall furnish air conditioning during show hours only, house lights, public address system and water by means of the appliances installed for ordinary purposes, but for no other purposes. Interruptions, delays or failures in furnishing any of the same caused by anything beyond control of the Licensor shall not be chargeable to the Licensor. Licensor will provide one daily cleaning of all public spaces and between show clean-up as possible for events with more than one performance on a single day. It is agreed that the licensor shall provide at Licenseers sole cost ,and expense, ushers, floor managers, off-duty Miami Beach Police Officers, firemen as may be required by the Miami Beach Fire Department, stage crew, electricians, technicians, projectionists, sound system Licensor, carpenters, machine licensor, and any and all help necessary for the promotion and presentation of the event. All employees and services not provided by City of Miami Beach are employees of Licensee. If additional maintenance personnel are required in excess of regular scheduling, due to Licensee use of the Theatre, Licensee will be solely responsible for all cost relating to additional maintenance and personnel. 4. Box Office: Licensor at all times reserves the authority, power and right to control the box office, including but not limited to, ticket printing, ticket personnel and ticket sales revenue. (a) Ticketing: Licensor will order the tickets/create the event through Ticket Master of Florida as exclusive in-house ticketing, distribution and reporting system. Licensee charge for said distribution will be included in "House Fees". (b) Distribution: Licensor shall have the right to offer tickets for sales at all of its approved agencies (Ticket Master of Florida). Licensee may request that ticket sales privileges be extended to additional agencies, and Licensor retains full, and final authority to authorize such distribution approval. (c) Licensee Holds: Licensor agrees to put a designated number of tickets on hold for sale by the Licensee for the purpose of season ticket holders- Licensee must notify the Licensor prior to putting the event on sale in writing as to the number of specific seats to be put on hold. Held seat will not be included in final box office settlement. Consignment tickets will be issued and used for trade deals or group sales only. Group sdes will be required to pick-up and pay for tickets at the box off ice. Additionally, Licensee assumes all responsibility fox collection of funds from such approved agencies. AEtY UNSOLD TICKETS CONSIGNED TO AWITIONAL ACENCIES MUST BE RETURNED TO LXCENSOR 24 HOURS BEFORE THE FIRST DAY OF 'ERE m. ANY TICKETS NOT SO RETVBElED WTLL BE CONSIDERED SOLD. (d) Ticket Prices: Licensee agrees that all tickets will be sold at the advertised prices. Such advertised prices shall be mutually agreed upon in writing by Licensee and Licensor. Any changes in ticket prices shall require the prior written approval of Licensor. The approved agency will charge applicable handling charges. (e) Licensor will retain a minimum of fourteen (14) complimentary tickets for each event to be reserved for the City of Miami Beach. (f) Customer Crsdit: Licensee shall be responsible for the credit worthiness of its patrons. 5. Right to Secure Box Office Receipts: Licensee covenants and agrees to pay the Licensor on demand all sums due Licensor for any service, accommodations or materials furnished or loaned by Licensor and to authorize and permit Licensor to take such sums from any box office receipts or advance receipts belonging to Licensee in an amount sufficient to secure Licensor against loss in the event Licensee fails to make such payments. Licensor shall have a first lien and security interest on the box office receipts of Licensee to secure the payment of any sums due Licensor from Licensee for the use of the licensed premises, any accommodations, services or materials furnished or loaned by Licensor, or any amounts due under this License. 6. Exculpation and Indemnification Clause: Licensee agrees that it will indemnify, hold and save the City of Miami Beach ("Cityw) and Licensor, their officers, agents, contractors and employees whole and harmless and at Licensor's option defend same, from and against all claims, demands, actions, damages, loss, cost, liabilities, expenses and judgments of any nature recovered from or asserted against Licensors on account of injury or damage to person or property to the extent that any such damage or injury may be incident to, arise out of, or be caused, either proximately or remotely, wholly or in part, by an act, omission, negligence or misconduct on the part of Licensee or any of its agents, servants, employees, contractors, patrons, guests, licensees or invitee or of any other person entering upon the Premises licensed hereunder with the express or implied invitation or permission of Licensee, or when any such injury or damage is the result, proximate or remote, of the violation by Licensee or any of its agents, servants, employees, contractors, patrons, guests, licensees or invitee of any law, ordinance or governmental order of any kind, or when any such injury or damage may in any other way arise from or out of the occupancy or use by Licensee, its agents, servants, employees, contractors, patrons, guests, licensees or invitee of the Premises licensed hereunder. Licensee covenants and agrees that in case Licensor or City shall be made parties to any litigation against Licensee or in any litigation comtnenced by any party other than Licensee relating to this License or to the Premises licensed hereunder, then Licensee shall and will pay all costs and expenses, including reasonable attorney's fees and court costs, incurred by or imposed upon Licensor or City by virtue of any such litigation. These terms of indemnification shall be effective unless such damage or injury may result from the sole negligence, gross negligence or willful misconduct of Licensor and/or the City. 7. Ordinances and Regulations: Licensee will comply with all laws, ordinances and regulations adopted or established by federal, state or local g0vemInental agencies or bodies; and by a11 facility rules and regulations as provided by Licensor, and Licensee will require that its agents and employees likewise comply. Licensee agrees that at all times it will conduct its activities with full regard for public safety and will observe and abide by all applicable regulations and requests by duly authorized governmental agencies responsible for public safety and by Licensor to assure such safety. Licensor further agrees that all portions of sidewalks, entries, doors, passages, vestibules, halls, corridors, stairways, passageways, and all ways of access to public utilities of the premises shall be kept unobstructed by the Licensee and shall not be used for any purpose other than ingress or egress to and from the premises by Licensee. Licensee also shall not use or store or permit to be used or stored in or on any part of the Licensed premises any substances or thing prohibited by law, ordinance, or standard policies of fire insurance companies operating in the State of Florida, without the permission of the Licensor. Illuminating oils, candles, oil lamps, turpentine, benzene, naphtha, or other similar substances or explosives of any kind shall not be placed in or on the licensed premises. It is further agreed that no inflammable materials, such as bunting, tissue paper, crepe paper, etc., will be permitted to be used as decorations, and decorative materials unless they are treated with flame proofing and are approved by the appropriate inspector of the City of Miami Beach or Dade County, Florida, before the same are installed. In accordance with the City of Miami Beach liquor control regulation ordinance, any event held at BYRON CARLYLE THEATRE which involves the consumption of alcoholic beverages must close the event no later than 5:00 A.M. on each event day. Compliance with this ordinance is mandatory. 8. Assignment and Subletting: Licensee shall not assign, transfer, sublet or subject this agreement or its right, title or interest therein without Licensor's prior written approval. 9. Powers to Vacate Premises: Licensor shall retain the right to cause interruption of any performance in the interest of public safety, and to likewise cause the termination of such performance when in the judgment of the Licensor such action is necessary in the interest of public safety. Should it become necessary in the judgment of the Licensor to evacuate the premises because of a bomb threat or for other reasons of public safety, the Licensee will retain possession of the premises, for sufficient time to complete presentation of its activity without additional rental charge providing such time does not interfere with another building Licensee. If it is not possible to complete presentation of the activity, rental shall be forfeited, prorated, or adjusted at the discretion of the Licensor based upon the situation, and the Licensee hereby waives any claim for damages or compensation from the Licensor. Operator reserves the rights to make such announcements as are deemed necessary at any time in the interest of public safety. Licensee agrees that it will cooperate with the delivery of such announcements for public safety, including but not limited to, announcements to require patrons to leave their seats or to leave the premises. The Licensor reserves the right to eject or cause to be ejected from the premises any person or persons causing a disturbance, and neither the Licensor nor any of its officers, agents or employees shall be liable to the Licensee for any damages that may be sustained by the Licensee through the exercise by the Licensor of such right. 10, Cancellation of Event by Licensee: In the event of a cancellation by Licensee of the Event, no deposit refund shall be made. Additionally, Licensee shall be obligated to pay the full amount of fees contemplated to be due hereunder had the Event actually occurred. The parties agree that Licensor will be damaged by any such cancellation, and that the exact amount of such damages would be either impossible or inconvenient to prove, and that the amounts set forth in the preceding sentence are a reasonable estimate of the amount of such damages. The parties further agree that such amount shall constitute cancellation fees, and not a penalty of any kind. The remedies set forth in this section are in addition to, and not in lieu of, any other rights or remedies Licensor may have, at law or in equity, in the event of a breach or cancellation of this Agreement by Licensee. In the following formula, 'x" shall represent the number of calendar days from the date the Licensor received notice of cancellation from the Licensee to the first day of the License period and "y" shall represent the percentage of the License fee owed to the Licensor by the Licensee: If 'x" equals 1,096 or more calendar days, then "y" equals 25% (3-t years) If 'x" equals 366 to 1,095 calendar days, then 'y" equals 50% (over 1 year up to 3 years) If 'x" equals 365 or less calendar days, the "y" equals 100% (1 year or less) Licensor shall use reasonable efforts to re-rent the Premises, and license fees received by Licensor in the re-renting of the Premises shall reduce cancellation fees owed by Licensee by a like amount, with such reduction not to exceed the full amount of the cancellation fees owed. 11. Default and Licansosls Rdes: Default shall be defined as the untimely performance of any and all clauses in this License or in the event guide which is incorporated by reference into this License. Licensor may exercise any and all remedies enumerated or permitted by law. Licensor may hold a landlord's lien on any and all personal when Licensee is in default and Licensee expressly gives Licensor permission to remove and store at Licensee's expense, any personal abandoned on the demised premises. The Licensee shall pay upon demand all Licensor's expenses and costs incurred in enforcing the Licensee's obligations under this license including but not limited to: staff and leasing agents retained by Licensor, legal costs, charges and/or expenses, including reasonable attorney's fees incurred by Licensor in any pre-litigation negotiation, litigation and/or appeal in which the Licensee causes the Licensor to become involved or concerned. Licensor may resort to any one or more of such remedies or rights, and adoption of one or more such remedies or rights, shall not necessarily prevent the enforcement of other remedies or rights concurrently or thereafter. 12. Insurance: As additional consideration over and above the rental payments made by Licensee herein, Licensee shall, at its own expense, comply with all of the following insurance requirements of the Licensor. It is agreed by the parties that the Licensee shall not occupy the premises until proof of the following insurance coverage has been furnished to the City and Licensor. a) Commercial general liability insurance, on an occurrence form, in the amount of Two Million ($2,000,000.00) Dollars per occurrence for bodily injury, death, property damage, and personal injury. The policy must include coverage for premises operations, blanket contractual liability (to cover indemnification section), products, completed operations and independent contractors. If the user's activities involve the sale of alcohol, then liquor liability in the same amount is also required. These policies must name the City of Miami Beach and Global Spectrum as additional insured. b) Automobile liability insurance in the amount of One Million ($1,000,000.00) Dollars per occurrence to provide coverage for any owned and non-owned vehicles used by the licensee on the Facility premises, including loading and unloading hazards. This must name the City of Miami Beach and Global Spectrum as additional insured. c) Workers1 compensation and employer's liability coverage as required by Florida Statute. d) It is understood and agreed that all coverage's provided by the Licensee are primary to any insurance or self-insurance program the City has for this Facility and the Licensee and their insurance shall have no right of recovery or subrogation against the Licensor. e) All policies must be issued by companies Domicile in the State of Florida and assigned a rating of A:X or better, per Best's Key Rating Guide, latest edition. f) The City must receive thirty (30) days written notice prior to any cancellation, non-renewal or material change to the required insurance policies. This written notice must be sent to the City of Miami Beach Risk Management Division, 1700 Convention Center Drive, Miami Beach, FL 33139. g) Evidence of the required insurance policies must be provided to Global Spectrum by submission of an original certificate of insurance thirty (30) days prior to the license period. h) Alternate coverage to satisfy these requirements is subject to prior approval of the City's Risk Manager. Additional insurance coverage, as determined by the City's Risk Manager, may be required for this license. 13. Administrative Chargers: In the event any check, bank draft or negotiable instrument given for any money payment hereunder shall be dishonored at any time, for any reason whatsoever not attributable to Licensor, Licensor shall be entitled, in addition to any other remedy that may be available to make an administrative charge of Twenty ($20.00) Dollars for each such check. 14. Audit: Licensee shall make available to Licensor, upon request, a11 records and books related to this Agreement at such time and place as shall be designated by Licensor for examination thereof for the purpose of an audit to be performed by an auditor designated by Licensor. Licensee shall inform licensor of all services retained by it to provide services in connection with Licensee's License of Licensor's premises pursuant to this Agreement, that they must also agree to the aforesaid provision relating to audit upon request of Licensor. 15. Sale of Concessions: Licensor reserves, and at all times shall have the sole right to food and beverage, sundries, programs, novelties, souvenirs and periodicals and to rent and sell opera glasses, and other articles, to conduct check rooms, to control event programs and to supervise the contents thereof, to take photographs, to control or supervise radio, movie and/or television broadcasting or recording and transcription rights and equipment, and other privileges, and Licensee shall not engage in or undertake the sale of any of the aforesaid articles or privileges, without the express written consent of Licensor. Licensee agrees to pay to the Licensor 15% of its gross sales on programs, novelties, souvenirs, etc. 16. Right of Entry: Any duly authorized agent or agents or employees of the Licensor shall have the right at any time to enter into any and all parts of the premises for the purpose of inspecting the same, making or causing to be made, necessary repairs thereto, enforcing all necessary and proper rules for the management and operation of the premises, and enforcing the Licensee's obligations hereunder. 17. Supply of Keys to Director: The Licensor or his representative shall have available to him at all times, total and complete access to all portions of the licensed premises. Licensee shall supply to the Licensor, or his representative, a key or keys to any and all parts of the premises which Licensee desires to secure under lock, such keys and locks to be provided for and installed and removed at the sole expense of Licensee, subject to immediate removal upon termination of this Agreement, or otherwise at the discretion of the Director. In the event the Director determines it to be necessary to remove any locks which have been installed by Licensee, the Director may order such removal, the cost of which shall be borne by Licensee. 18. No Box office Bailmeat: In the handling, control, custody and keeping of receipts and funds, whether the same are received through the box office or otherwise, the Licensor is acting for the accommodation and sole benefit of Licensee and that, as to such receipts and funds, the Licensor shall be responsible only for gross neglect or bad faith. 19. Licensor's Discretion: Any matter not expressly provided for herein shall be within the reasonable discretion of the Licensor. 20. Miscellaneous: (a) All legal proceedings arising from this license shall be in the courts situated in Dade County, Florida. (b) If any section, subsection, clause or provision of this License is held invalid, the remainder shall not be affected by such invalidity. (c) This License may only be altered, changed or amended, by an instrument in writing signed by both parties hereto. (dl No waiver of any covenant or condition of this License by either party shall be deemed to imply or constitute a further waiver of the same covenant or condition or any other covenant or condition of this License. (el This License contains and embodies the entire agreement of the parties hereto and no representations, inducements or agreements oral or otherwise, between the parties not contained and embodied herein shall be of any force and effect. (f) In any .conflict between the License and other written provisions the license shall prevail. (g) CfLECKLIST/QUESTIONAIRE and RIDER TO VENUE CONTRACT are hereby incorporated into this agreement by reference unless otherwise amended by separate addendum. (h) A11 federal, state, and local laws and/or regulations related to copyright, trademarks, etc. must be complied with by the Licensee and all exhibitors selling such items on the premises. Further, the Licensee agrees to save and completely hold harmless the City of Miami Beach and Global Spectrum, and to pay all costs related to any violation of the above. (i) The licensee acknowledges and understands that this contract in no way affords any rights and does not authorize any signage to be placed outside the boundaries of the Theater property. We strongly suggest that the licensee obtains all appropriate permits and licenses for off-site signage from the City of Miami Beach Building and/or Code Enforcement Department. (1 The Licensee acknowledges and agrees that it is their sole responsibility to provide appropriate information related to the availability of seating for patrons with disabilities. Further the Licensee understands and agrees that information on such seating 'must be included in all promotional and advertising materials relative to this performance. 21. Other Terms and Conditions: The Licensee shall provide at Licensee's sole cost and expense, off-duty Miami Beach Police Officers and off-duty Miami Beach Firefighters and/or Miami Beach Rescue Service as required by the Miami Beach Fire and Police Departments. 22. Force Majeure: Should Licensee be unable to take possession of the Premises or present the Event due to an Event of Force Majeure, neither Licensor nor Licensee shall have any liability under the Agreement and Licensee, as its sole remedy and relief, shall receive a refund of any uncommitted or cancelable advance payments less any expenses incurred by Licensor in preparing for the Event. The term "Event of Force Majeure" shall mean any and all acts of God, strikes, lock-outs, acts of the public enemy, laws, rules and regulations of governmental or quasi-governmental entities, wars or warlike action, arrest or other restraint of government (civil or military), blockades, insurrections, riots, terrorism or terrorist threats, epidemics, lightning, earthquakes, hurricanes, storms, floods , washouts, fire or other casualty, civil disturbances, explosions, threats of bombs or similar interruptions, confiscation or seizure by any government or public authority, nuclear reaction, radioactive contamination, accidents, or any other causes, whether of the kind herein enumerated or otherwise that are not reasonably within the control or caused by the party claiming the right to delay the performance on account of such occurrence; provided, however, in no circumstances shall the monetary inability of a party to perform any obligation contained in this Agreement be construed to be an Event of Force Majeure. Upon removal or cessation of the Event of Force Majeure, the parties' respective rights and obligations hereunder shall be reinstated for any and all subsequent sessions of the Event remaining in the Term (if any). LICENSEE: Promoter's Company Name Date: $/29// / C/.&// Date: Print Name / Title f# LICENSOR: GLQBAL SPECTRUM, L.P. Gened'hnager Robert Balsam EXHIBIT "F" CITY OF MIAMI BEACH MINIMUM MAINTENANCE SPECIFICATIONS FOR MAINTENANCE OF THE MlAM BEACH BYRON CARLYLE THEATER These minimum operating and maintenance standards are intended to be considered as a whole and intended to provide an overall standard for the Facility. Individual discrepancies, as well as deviations, from any individual standard shall not be considered a default of the Agreement; it is the intention of the parties that this Exhibit is merely a guide and that Stage Door is only expected to use good faith efforts to endeavor to meet the standards set forth herein. In the event of a conflict between the terms or conditions of the Agreement and the terms or conditions of this Exhibit, the terms and conditions of the Agreement shall control. PERSONNEL 1. Stage Door shall have the sole responsibility to recruit and employ a full-time general manager and any necessary administrative and accounting personnel that are responsible for the overall management and operation of the Facility. 2. Stage Door shall have the sole responsibility to recruit and employ sufficient personnel to maintain the following functions: general security; janitorial, housekeeping and cleaning for both event and non-event cleanup; maintenance for electrical systems, plumbing; and air conditioner operation; painting and general overall maintenance of the Facility to ensure that the Facility is being maintained consistent with other similar first class facilities operated by Stage Door. 3. Stage Door shall have the sole responsibility to recruit and employ personnel as it deems necessary for the staging and coordinating of Events and productions. 4. Stage Door shall maintain personnel policies that assure employment practices do not discriminate on the basis of race, color, religion, military status, marital status, physical or mental disability, national origin, age, gender, or sexual preference. GENERAL SECURITY 1. Stage Door shall provide for the overall security of the Facility, including during non- event hours. EMERGENCY PROCEDURES 1. Stage Door shall assign an employee and a backup employee to act as an Emergency Liaison to the City. This individual will be required to use good faith efforts to attend any and all meetings, held by the City, that deal with emergency situations, such as extreme weather events, terrorist acts, etc. The Liaison will serve as the point of contact during any emergency crisis. 2. Stage Door shall develop and implement a Hurricane Preparedness Procedure, a copy of which shall be provided to the City. JANITORIAL. CLEANING AND HOUSEKEEPING 1. The Facility shall be reasonably clean at all times. This includes general cleaning during non-event times, as well as during Events. 2. Restrooms are to be cleaned during Events and on a periodic basis during non-event times to assure that they are in a functional and reasonably sanitary condition. 3. Garbage and trash shall be removed on an as-needed basis. Trash receptacles shall be stationed throughout the Facility. 4. Stage Door shall maintain compactor, garbage areas, waste areas, recycling areas, and dumpster areas reasonably clean and debris free in order to comply with applicable codes. 5. Carpets shall be vacuumed and cleaned on an as-needed basis. 6. Flooring shall be cleaned and polished on an as needed basis. 7. Windows shall be maintained in a reasonably clean condition and cleaned on an as needed basis. 8. Treatment for pests and rodents (except termites) shall occur on a quarterly basis as needed to prevent infestation or as required by applicable code. 9. Entrance doors and mirrors shall be maintained in a reasonably clean condition and cleaned on an as needed basis. LANDSCAPING 1. Indoor landscaping shall be maintained in accordance with specifications of the type of plant and should be watered and fertilized as the type of plant demands. 2. Indoor landscaping should be reasonably insect-free. EQUIPMENT MAINTENANCE AND GENERAL MAINTENANCE I. Equipment shall be maintained in a good and workmanlike manner in order to maintain in full force and effect all dealer's and manufacturer's warranties. Stage Door shall develop an annual schedule for equipment inspection and preventative maintenance. 2. Upon termination, cancellation, and/or expiration of the Agreement, Stage Door shall provide all records maintained in accordance with Section 5.3.4. All existing warranties that are transferable will be transferred to the City. 3. Stage Door shall develop a preventive maintenance plan for the building and its major building systems and major equipment. This plan shall be provided to the City Manager annually or when updated. 4. Stage Door shall post and maintain, as required by any applicable governmental code andlor regulation, any and all required professional licenses, certifications, andlor permits. 5. Stage Door shall maintain and inspect all building safety systems including but not limited to: smoke, fire, and CO detector systems, backup generator operation, emergency battery backup functions, emergency lighting, emergency egress, special needs and blackout preparedness equipment. All building safety systems shall be tested on at least an annual basis or as required by federal, state or local codes and regulations, and maintained in operating condition at all times. 6. Stage Door shall develop and implement a system for regular inspections of elevator and escalator controls, motors, suspension systems, and related equipment, and shall maintain such systems substantially in accordance with manufacturer required standards. 7. Stage Door shall develop and implement a plan for inspection and maintenance for the Facility's HVAC systems. This shall include inspection of all HVAC controls on a quarterly basis to verify proper setting and operation as well as any adjustments andlor maintenance that may be appropriate, including, but not limited to filter replacement, blower andlor heat exchanger, proper operation of air intakeslvents, fan units, ducts, etc. 8. Stage Door shall develop and implement a plan for inspection and maintenance of the building envelope and roofing systems. This shall include periodic inspection and maintenance tasks for the roof, roof penetrations, and exterior walls and penetrations. 9. Stage Door has the sole responsibility of maintaining the paint on both, the interior and exterior of the Facility. The City has the sole right to approve (not to be unreasonably withheld, conditioned or delayed) the paint color selections used on the exterior of the Facility. EXHIBIT "G" STAGE DOOR STANDARD AGREEMENT EXHIBIT "H" CITY OF MIAMI BEACH OWNED PROPERTY INCLUDED IN THE AGREEMENT THIS PAGE INTENTIONALLY LEFT BLANK MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 331 39, www.miamibeachfl.gov COMMISSION MEMORANDUM TO : Mayor Matti Herrera Bower and Me e City Commission FROM: Jorge M. Gonzalez, City Manager DATE: April 13, 201 1 SUBJECT: THE COMMITTEE OF THE WHOLE WILL MEET DURING LUNCH RECESS OF THE APRIL 13, 2011 ClTY COMMISSION MEETING AT THE ClTY MANAGER'S LARGE CONFERENCE ROOM TO DISCUSS STATUS OF PENDING LEGISLATION CURRENTLY BEFORE THE FLORIDA LEGISLATURE. Attached, please find information regarding proposals to expand gambling in the State of Florida. Three bills were filed for the 201 1 Legislative Session: Senate Bill 1708 by Senator Dennis Jones would allow five large-scale casinos to set up shop in five regions across the state. These casinos - which would have to have large hotels attached to them - would be allowed to offer a wide array of games, including roulette, craps, poker and slot machines. This bill was postponed two times in the Senate Commerce and Tourism Committee, and on March 30, 2011 Senator Jones withdrew this bill from further consideration, primarily due to opposition from the pari- mutuel industry. This bill would have required the winning casino operators to have at least 1,000 hotel rooms and 500,000 of convention and meeting space. Senate Bill 2050 by Senator Oscar Braynon and House Bill 1415 by Representative Erik Fresen have also filed similar bills that would also expand gambling in Florida. The Senate bill was heard by the Senate Commerce and Tourism Committee on April 5, 201 1. The House is assigned to the Business & Consumer Affairs Subcommittee, which was disbanded after its chair, Rep. Esteban Bovo resigned to run for Miami-Dade County Commission. The bill has not yet been reassigned to other committees. Attachments: Palm Beach Post March 29 Article "Destination casino bill is dead for session" Senate Bill 1708 Staff Analysis Senate Bill 2050 Staff Analysis Agenda Item R(lf Date 4-13-1 1 m Beach fist Print this page Close 'Destination9 casino bill is dead for session By KATHLEEN HAUGHNEY Orlando Sentinel, Tallahassee Bureau Posted: 8:07 p.m. Tuesday, March 29, 201 1 A major effort to sprinkle Las Vegas-style casinos throughout Florida is no longer a safe bet, a top lawmaker said Tuesday. State Sen. Dennis Jones, R-Seminole, who has spearheaded the Senate's gaming efforts the past few years, is withdrawing a proposal to bring five "destination resorts" to the state that would have featured full casino gaming. The decision, in the face of fierce behind-the-scenes opposition from the state's pari-mutuel industry, likely ends the possibility of any major gambling expansion this year. Jones' bill died after Sen. Jeremy Ring, D-Margate, attached an amendment that would have allowed South Florida pari-mutuels to also operate as casinos -with table games and craps in addition to slot machines -- with a tax rate identical to any future destination casinos. "I had no interest in that whatsoever," Jones said, adding that his bill was intended solely to bring vacation and convention business to Florida, not to expand gambling at pari-mutuel facilities. The measure had also been opposed by the Seminole Tribe of Florida, which now operate the only casinos in the state under a five-year, $250-million agreement signed last year. Under that agreement, the tribe can have slot machines, blackjack and other card games - but not craps. Resorts like Las Vegas Sands have been lobbying the state for the past several years to open its doors to Vegas- style casinos. Las Vegas Sands, which has resorts in Las Vegas, Singapore, Macau and Bethlehem, makes about one-third of its profit from gaming. The rest comes from hotel rooms, shows and restaurants on site. Jones and other lawmakers seemed interested in the prospect of bringing big casinos to the state to attract big conventions and high-rolling vacationers. But the pari-mutuels -whose horse and dog tracks are now open largely because of slot machines and poker rooms -- fought the plan. Dan Adkins, vice president of Mardi Gras gaming in Hollywood, said it was simply a matter of parity: If "destination" casinos were allowed, the pari-mutuels should be allowed to match their gaming offerings. The issue is worth look at going forward, he added. "I think the issue needs to be addressed and everyone needs to take a step back and the industry needs to talk," he said. Backers of destination casinos are still holding out hope. Similar bills have been filed by state Rep. Erik Fresen, R- Miami, and Sen. Oscar Braynon, D-North Miami Beach. But supporters acknowledge they will be a tough sell, particularly in a conservative House that has fought gaming expansion in the past. Braynon's bill is set for a Senate committee hearing next week, but the House measure may die in a logistical snafu. The proposal was assigned to a subcommittee that House Speaker Dean Cannon disbanded after its chair, Rep. Esteban Bovo, R-Hialeah, resigned last week to run for the Miami-Dade County Commission. Cannon, who is largely anti-gaming, would need to reassign the bill to a new committee for it to move forward. Fresen said he hopes to speak with Cannon later this week about allowing the bill to proceed. "I wouldn't say the chances are high, but we're not six feet under," Fresen said. Cannon's office did not immediately respond to a request for comment. According to a legislative staff analysis, 13 other states allow commercial casinos. The state's Revenue Estimating Conference has not officially estimated the revenue impact of new casinos, but casino representatives estimate that they would increase corporate income tax and sales tax collections by about $52 million a year. The industry also estimated that five new resorts would generate 140,000 construction jobs and $10 billion in construction expenditures. Las Vegas Sands, which has said repeatedly it would build in Florida, is hoping to target the South Florida market. Wynn Resorts has also expressed interest in opening a Florida casino and hotel. "Las Vegas Sands and the rest of the industry are very much committed to seeing this issue through the rest of session," said Sands lobbyist Nick larossi. larossi acknowledged that the chances of getting a bill to the governor's desk this year may be slim, but added that many controversial issues take years to pass. Las Vegas Sands has been meeting with lawmakers for the past several years. "This is a game-changing initiative in Florida," he said. < ---. - --. - . .. . - . . . .- . -. . . . - . . . Find this article at: Print this page Close Skip the hosde adreigpa'ng yrrurprr~menf de&N$. -- .._ ..* *........... "^." SPEED THROUGH CHECKOUT, CHOOSE PayaPaL The Florida Senate BILL ANALYSIS AND FISCAL IMPACT STATEMENT (This document is based on the provisions contained in the legislation as of the latest date listed below.) Prepared By: The Professional Staff of the Commerce and Tourism Committee BILL: SB 1708 INTRODUCER: Senators Jones and Sachs SUBJECT: Destination Resorts DATE: March 19,201 1 REVISED: ANALYST 1. Pug:h/Oxamendi STAFF DIRECTOR REFERENCE ACTION Cooper CM Pre-meeting RI I. Summary: SB 1740 creates the seven-member Destination Resort Commission (commission) in the Department of Revenue. The principal responsibility of the commission is to license no more than five destination resorts that would offer limited gaming. Limited gaming is defined to include baccarat, twenty-one, poker, craps, slot machines, video gaming of chance, roulette wheels, Klondike tables, punch-board, far0 layout, numbers ticket, push car, jar ticket, pull tab, or their common variants, or any other game of chance or wagering device that is authorized by the commission. The bill divides the state into five geographic districts and authorizes the commission to issue only one license for a destination resort with limited gaming per district. Each district must be represented by at least one commissioner. Licenses would be awarded through an invitation-to-negotiate process. The commission is not required to issue invitations for all five of the locations that the commission is authorized to license. The commission may stagger its issuance of the invitations. A referendum is required for the county in which the resort would be located. The bill establishes a $50 million initial license fee, a $1 million fee for a background check, and a $5 million annual license fee. The bill provides a graduated gross receipts tax rate that would be based upon the infrastructure investment in the resort. The tax rate ranges ftom 10 percent for investments of $2 billion or more, 15 percent for investments of between $1 billion to $2 billion, and 20 percent for investments under $1 billion. BILL: SB 1708 Page 2 SB 1708 also establishes minimum requirements for the destination resorts. It requires that they contain a minimum of 500,000 square feet of meeting and convention space, and a minimum of 1,000 hotel rooms. It also limits the gaming area to no more than 10 percent of the resort. The bill requires that the commission consider only applicants that submit a plan to train and hire Florida residents. Applicants must also use the E-verify system to verify employment eligibility, and they must offer veterans preference in employment. Finally, SB 1708 specifies allocations of tax revenue for Visit Florida, school readiness, and transportation for the disadvantaged. This bill substantially amends ss. 20.21, 120.80, 849.231, and 849.25, F.S.; and creates several unnumbered sections of law. II. Present Situation: Executive Branch Structure Chapter 20, F.S., provides the structural components of state agencies. A "department" is the structure through which authority is exercised and to which money and positions are appropriated. Its principal subcomponent is a "division." Units below that level may be created by departments; above that level they are created by statute. Article IV of the Florida Constitution limits executive departments to 25 in number, excluding those authorized or created in that document. There are five constitutionally created or authorized departmental entities: State Board of Administration, Department of Veterans' Affairs; Florida Fish & Wildlife Conservation Commission; Department of Elderly Affairs; Board of Governors; and the Parole Commission. There are 21 departments authorized by statute: Department of State; Department of Legal Affairs; Department of Financial Services; Department of Agriculture and Consumer Services; Department of Education; Department of Business and Professional Regulation, Department of Community Affairs; Department of Children & Family Services; Florida Department of Law Enforcement; Department of Revenue; Department of Management Services; Department of Transportation; Department of Highway Safety and Motor Vehicles; Department of Environmental Protection; Department of Military Affairs; Department of Citrus; Department of Corrections; Department of Juvenile Justice; Department of the Lottery; Agency for Health Care Administration; and the Department of Health. The Executive Office of the Governor may be considered to be functional equivalent to a department. There appears to be 22 state entities that are subject to the constitutional limitation. Apparently unaffected by the constitutional limitation are a number of entities with powers independent of the nominal department head. Examples of these are the Division of Emergency Management (Department of Community Affairs); the Division of Administrative Hearings (Department of Management Services), and the Financial Services Commission (Department of BILL: SB 1708 Page 3 Financial Services). These entities are established in an existing department, but are not subject to its control, supervision, or direction in any manner, including purchasing, transactions involving real or personal property, personnel, or budgetary matters. The Public Service Commission is excluded from the limitation since it is, by statute and Supreme Court decisions, a legislative branch agency. Tourism and Convention Space According to preliminary estimates1 by Visit Florida, an estimated 82.6 million visitors came to Florida in 2010, an increase of 2.1 percent over 2009 figures.2 For the second half of 2010, direct travel-related employment in Florida increased by 1.8 percent, with more than 15,000 additional jobs in the fourth quarter alone. Domestic visitation to Florida increased by 0.5 percent in 2010, when compared to 2009. During the same period, Canadian travel to Florida increased by 16.2 percent and the overseas market to Florida increased by 13.6-percent. Primary data collected at Florida's 14 major airports in 2010 reflects a 3.5-percent increase in total enplanements from 2009.~ Preliminary estimates of visitors to Florida for the fourth quarter of 2010 show an estimated 20.8 million people visited the Sunshine State. This reflects an increase of 5.1 percent from the same period in 2009. Visit Florida also reported that an estimated 18.0 million domestic visitors came to Florida during the fourth quarter of 201 0, a 4.1 percent increase over 2009. During the same period, Canadian travel to Florida increased by 5.7 percent and the overseas market to Florida increased by 13.5 percent. Primary data collected at Florida's 14 major airports shows a 7.8 percent increase in total enplanements to Florida for the fourth quarter of 2010 over the same period in 2009.~ The following information regarding convention space was obtained from select areas around the state: -0 In Orlando, the Gaylord Orlando Hotel has 400,000 square feet of meeting and convention space and 1,406 hotel rooms and suite^;^ the Peabody Orlando has 300,000 square feet of meeting and convention space; the Orlando World Marriott has 450,000 square feet of meeting and convention space and 2,000 hotel rooms and suite$ and the Walt Disney World Resort has more than 600,000 square feet of space. The Orange County Convention Center in Orlando has 2.1 million square feet of exhibit space. The Tampa Convention Center has 200,000 square feet of exhibit space and 42,000 square feet of meeting space. Jacksonville Convention Center has 78,500 square feet of exhibit space and 48,750 square feet of meeting space. Preliminary estimates are issued 45 days after the end of each calendar quarter. Final estimates are released when final data are received for all estimates in the report. See httu://media.visitflorida.ordnews/news.~hu?id=169, (last visited March 19,201 1). Id. Id. See httu://www.~avlordhotels.com/palms-home.html?intcmu=m-u1=to~nav-re~home. 6 See httu://www.marriottworldcenter.com/ BILL: SB 1708 Page 4 The Miami Convention Center has 28,000 square feet of exhibit space, an additional 34 meeting rooms, a 444- seat and a 5,000-seat auditorium, and a 1 17-seat lecture hall. Economic Impact of Casino-Oriented Destination Resorts Thirteen states now have commercial casino operations, excluding those managed by Indian Tribes or at racetracks, and Massachusetts, Texas, New York, and Rhode Island are considering legislation this year to legalize casino gambling.7 Data on how many casinos are stand-alone operations and how many are "destination resorts"' is not readily available. In the most recent numbers available, the American Gaming Association reported in 2008~ that the commercial casino industry employed more than 375,000 people earning more than $13 billion in total wages. The report also described casinos as significant contributors to the nation's economy, with gross gaming revenues totaling more than $32.5 billion in 2008. Casinos have direct economic impacts on the local and state level. For example, a 2008 economic development impact study on the Chumash Casino Resort in Santa Barbara, calif.," indicated that the casino: Created 1,587 direct jobs and an additional 703 indirect jobs in the county; Generated more than $350 million in sales in the county, and specifically that every $10 in sales at the casino generated $4 in additional sales in the community; and Tourism received a major boost when the casino opened in 2004. The American Gaming Association maintains a database of pertinent economic data" on the 13 states that have commercial casinos and the 12 states, including Florida, with racetrack casinos (nicknamed "racinos"). The two states with commercial casinos closest to Florida - Mississippi and Louisiana - in 2009 reported significant revenues from gaming operations: Mississippi reported at its 30 commercial casinos: o Number of casino employees totaled 25,739; o Casino employee wages were $855.25 million (including tips and benefits); o Gross casino gaming revenue was $2.465 billion; and o The state's gaming tax revenue was $296.34 million. * Louisiana reported at its 14 commercial casinos: o Number of casino employees totaled 17,610; o Casino employee wages were $602.5 1 million; o Gross casino gaming revenue was $2.456 billion; and o The state's gaming tax revenue was $598.14 million. Interim Reuort 201 1-133: Review of Exuansion of Casino Gamine in Other States. Prepared by Senate Committee on Regulated Industries. Published in October 201 0. Available at httu://archive.flsenate.nov/data/Publications/20 1 1 /Senate/reports/interim reuorts/udf720 1 1-1 33ri.udf. "Destination resorts" or "destination resort casinos" are generally defined as mega-centers that feature shopping, conference facilities, restaurants, and live entertainment in addition to casino gaming. Most new casinos are being built in this format. httu://www.americaneamine.orglIndus~ info detail.~fv?id=39. 10 Economic Impact of the Chumash Casino Resort on the Countv of Santa Barbara, prepared by The California Economic Forecast for the Santa Barbara County taxpayers Association. Published February 2008. Available at: httu://www.sbcta.orrz/Final Reuort Chumash.udf . Last visited March 19,201 1. 11 The American Gaming Association has a complete list of what types of gaming operations are in each state, economic development data, and how each state uses its share of the revenues generated. The latest data is ftom 2009. See: http://www.americangaming.org/Industry/state/statistics.cfr-a. BILL: SB 1708 Page 5 The database does not calculate indirect and induced economic benefits from casino operations. Destination resorts are also popular internationally among tourists.12 What is purported to be the largest destination resort east of Las Vegas is under construction in the I3ahamas.l3 The new Baha Mar resort is expected to contribute an additional 10 percent growth in the Bahamian GDP by creating 12,000 jobs paying in the aggregate more than $305 million in annual wages. According to projections, Baha Mar will help raise the average annual income for a Bahamian family from $29,000 to $33,500, and in its first year of operations will contribute almost $1 billion to the local economy. Overview of Florida Gaming Laws and Regulations In general, gambling is illegal in ~1orida.l~ Chapter 849, F.S., governs the conduct of gambling in Florida. Section 849.15, F.S., prohibits the manufacture, sale, lease, play, or possession of slot machines15 in Florida. Section 849.15(2), F.S., provides an exemption to the transportation of slot machines for the facilities that are authorized to conduct slot machine gaming under ch. 55 1, F.S. Florida's gambling prohibition includes prohibitions against keeping a gambling house,16 and running a lottery.17 Section 7, Art. X, of the Florida Constitution, prohibits lotteries, other than pari-mutuel pools authorized by law on the effective date of the Florida Constitution, fiom being conducted in Florida by private citizens." Gaming is permitted at licensed pari-mutuel wagering tracks and front on^,'^ by the state operated lottery,20 which must operate "so as to maximize revenues in a manner consonant with the dignity of the state and the welfare of its citizens,"21 and by the Seminole Indian tribe. Pari-mutuel wagering and Cardrooms The pari-mutuel industry in Florida is made up of greyhound racing, different types of horseracing, and jai alai.22 The regulation of the pari-mutuel industry is governed by ch. 550, F.S., and is administered by the Division of Pari-Mutuel Wagering (division) within the Department of Business and Professional Regulation (department). Chapter 550, F.S., provides specific licensing requirements, taxation provisions, and regulations for the conduct of the industry. 12 An example of websites advertising international casinos and destination resorts is httr,://www.worldcasinodirector?i.com. Last visited March 19,20 1 1. 13 Information posted at htt~://star~lobaltribune.com/20 1 l/destination-resorts-a-new-~eneration-of-tourists-destinations- o~ened-5954. Last visited March 8,201 1. 14 Section 849.08, F.S. 15 Section 849.16, F.S., defines slot machines for purposes of ch. 849, F.S. 16 Section 849.01, F.S. l7 Section 849.09, F.S. l8 The pari-mutuel pools that were authorized by law on the effective date of the Florida Constitution, as revised in 1968, include horseracing, greyhound racing, and jai alai games. The revision was ratified by the electorate on November 5, 1968. l9 See ch. 550, F.S., for the regulation of pari-mutuel activities. 20 The Department of the Lottery is authorized by s. 15, Art. X, Florida Constitution. Chapter 24, F.S., was enacted by ch. 87- 65, L.O.F., to establish the state lottery. Section 24.102, F.S., provides the legislative purpose and intent in regard to the lottery. 21 See s. 24.104, F.S. 22 "Jai alai" or "pelota" means a ball game of Spanish origin played on a court with three walls. See s. 550.002(18), F.S. BILL: SB 1708 Page 6 Pari-mutuel facilities within the state are allowed to operate poker card rooms under s. 849.086, F.S. No-limit poker games are permitted.23 The cardrooms may operate 18 hours per day on Monday through Friday and for 24 hours per day on Saturday and Sunday. The games are played in a non-banking matter, i.e., the house 24 has no stake in the outcome of the game. Such activity is regulated by the department and must be approved by an ordinance of the county commission where the pari-mutuel facility is located. Each cardroom operator must pay a tax of 10 percent of the cardroom operation's monthly gross receipts.25 Slot Machine Gaming Slot machine26 gaming at licensed pari-mutuels is governed by ch. 551, F.S. Pari-mutuel facilities that operate slot machine gaming or engage in other casino-style gaming are generally known as "racinos." During the 2004 General Election, the electors approved Amendment 4 to the state constitution, codified as s. 23, Art. X, Florida Constitution, which authorized slot machines at existing pari-mutuel facilities in Miami-Dade and Broward counties upon an affirmative vote of the electors in those counties. Currently, there are five pari-mutuels in those counties conducting slot machine gaming. Slot machine licensees are required to pay a license fee of $2.5 million for fiscal year 2010-201 I. The annual slot machine license fee is reduced in fiscal year 201 1-2012 to $2 million.27 In addition to the license fees, the tax rate on slot machine revenues at each facility is 35 percent.28 Seminole Indian Compact On April 7,2010, the Governor and the Seminole Tribe of Florida (Tribe) executed a tribal-state compact under the Indian Gaming Regulatory Act of 1988~~ that authorizes the Tribe to conduct Class I11 gaming30 at seven tribal facilities throughout the state. The compact was subsequently ratified by the ~e~islature.~' 23 Section 849.086(8)(b), F.S. Prior to the effective date of ch. 2010-29, L.O.F., the maximum bet was $5. 24 Section 849.086(2)(j), F.S., defines "house" as 'The cardroom operator and all employees of the cardroom operator. 25 Section 849.086(13)(a), F.S. 26 Section 551.102(8), F.S., defines "slot machine" as the term is used in ch. 551, F.S., for the regulation of slot machine gaming at the qualifying Miami-Dade and Broward county pari-mutuels. 27 Chapter 551.106(1), F.S. Prior to the effective date of 2010-29, L.O.F., the license fee was $3 million. 28 Chapter 551.106(1), F.S. Prior to the effective date of 2010-29, L.O.F., the tax rate was 50 percent. 29 The Indian Gaming Regulatory Act of 1988 or "IGRA", Pub. L. 100-497, 102 Stat. 2467, codified at 18 U.S.C. ss. 1166- 1168 and 25 U.S.C. s. 2701 et seq. 30 The Indian Gaming Regulatory Act of 1988 divides gaming into three classes: "Class I gaming" means social games for minimal value or traditional forms of Indian gaming engaged in by individuals for tribal ceremonies or celebrations. "Class I1 gaming" includes bingo and pull-tabs, lotto, punch boards, tip jars, instant bingo, and other games similar to bingo. Class I1 gaming may also include certain non-banked card games if permitted by state law or not explicitly prohibited by the laws of the state but the card games must be played in conformity with the laws of the state. A tribe may conduct Class I1 gaming if: o the state in which the tribe is located permits such gaming for any purpose by any person, organization or entity; and o the governing body of the tribe adopts a gaming ordinance which is approved by the Chairman of the National Indian Gaming Commission. "Class I11 gaming" includes all forms of gaming that are not Class I or Class 11, such as house-banked card games, casino games such as craps and roulette, electronic or electromechanical facsimiles of games of chance, slot machines, and pari-mutuel wagering. 31 Chapter 2010-29, L.O.F. BILL: SB 1708 Page 7 The compact has a 20-year term. It permits the Tribe to offer slot machines, raffles and drawings, and any other new game authorized for any person for any purpose, at all seven of its tribal casinos.32 The compact permits the Tribe to conduct banked card games, including blackjack, chemin de fer, and baccarat, but the play of the banked card games is not allowed at the casinos at the Brighton or Big Cypress facilities. If these banked games are authorized for any other person for any other purpose, except if banked card games are authorized by a compact with the Miccosukee Indians, the Tribe would be authorized to offer banked cards at all seven of its facilities. The authority for banked card games terminates at the end of 5 years unless affirmatively extended by the Legislature or the Legislature authorizes any other person to offer banked card games. In exchange for the Tribe's exclusive right to conduct slot machine gaming outside of Miami- Dade and Broward counties and the exclusive right to offer banked card games at the specified facilities (these grants of authority are known as the "exclusivity provision"), the compact provides for revenue sharing payments by the Tribe to the state as follows: During the initial period (first 24 months), the Tribe is required to pay $12.5 million per month ($1 50 million per year); After the initial period, the Tribe's guaranteed minimum revenue sharing payment is $233 million for year 3, $233 million for year 4, and $234 million for year 5; After the initial period, the Tribe pays the greater of the guaranteed minimum or payments based on a variable percentage of annual net win33 that range from 12 percent of net win up to $2 billion, to 25 percent of the amount of any net win greater than $4.5 billion; After the first 5 years, the Tribe will continue to make payments to the state based on the percentage of net win without a guaranteed minimum payment; and If the Legislature does not extend the authorization for banked card games after the first 5 years, the net win calculations would exclude the net win fiom the Tribe's facilities in Broward County. The compact provides for the expansion of gaming in Miami-Dade and Broward counties under the following limited circumstances: * If new forms of Class 111 gaming and casino-style gaming are authorized for the eight licensed pari-mutuels located in Miami-Dade and Broward counties and if the net win from the Tribe's Broward facilities drops for the year after the new gaming begins, then the Tribe may reduce the payments from its Broward facilities by 50 percent of the amount of the reduction in net win. 32 Gaming Compact Between the Seminole Tribe of Florida and the State of Florida, approved by the U.S. Department of the Interior effective July 6,2010, 75 Fed. Reg. 38833. (hereinafter Gaming Compact) The Tribe has three gaming facilities located in Broward County (The Seminole Indian Casinos at Coconut Creek and Hollywood, and the Seminole Hard Rock Hotel & Casino-Hollywood), and gaming facilities in Collier County (Seminole Indian Casino-Immokalee), Glades County (Seminole Indian Casino-Brighton), Hendry County (Seminole Indian Casino-Big Cypress), and Hillsborough County (Seminole Hard Rock Hotel & Casino-Tampa). 33 The compact defines "net win" as "the total receipts i?om the play of all Covered Games less all prize payouts and free play or promotional credits issued by the Tribe." BILL: SB 1708 Page 8 If new forms of Class 111 gaming and other casino-style gaming are authorized for other locations in Miami-Dade and Broward counties, then the Tribe may exclude the net win from their Broward facilities from their net win calculations when the new games begin to be played. If new games are authorized to any location in Miami-Dade and Broward counties within the first 5 years of the Compact, the guaranteed minimum payment would no longer apply to the Tribe's revenue sharing payments and the $1 billion guarantee would not be in effect. The Tribes payments would be based on the applicable percentage of net win. Revenue sharing payments cease if: The state authorizes new forms of Class III gaming or other casino-style gaming after February 1,20 10, or authorizes Class III gaming or other casino-style gaming at any location that was not authorized for such games before February 1,2010; and The new gaming begins to be offered for private or public use. Ill. Effect of Proposed Changes: SB 1708 creates undesignated sections of law and amends four sections of existing law to establish the Destination Resort Act (act). Definitions SB 1708 provides several definitions used in the act. The bill defines the terms "destination resort" or "resort" to mean: "a freestanding, land-based structure in which limited gaming may be conducted. A destination resort is a mixed-use development consisting of a combination of various tourism amenities and facilities, including, but not limited to, hotels, villas, restaurants, limited gaming facilities, convention facilities, attractions, entertainment facilities, service centers, and shopping centers." The bill divides the state into five districts for the purpose of awarding destination resorts. It defines the following five districts as: District One: Escambia, Santa Rosa, Okaloosa, Walton, Holmes, Jackson, Washington, Bay, Calhoun, Gulf, Franklin, Liberty, Gadsden, Leon, Wakulla, Jefferson, Madison, Hamilton, Taylor, Lafayette, Suwannee, Columbia, Baker, Union, Bradford, Alachua, Gilchrist, Dixie, and Levy counties. District Two: Nassau, Duval, Clay, Putnam, St. Johns, Flagler, Marion, Volusia, Lake, Seminole, Orange, Hernando, Polk, and Osceola counties. District Three: Citrus, Sumter, Pasco, Pinellas, Hillsborough, Manatee, Hardee, DeSoto, Sarasota, Charlotte, Lee, Collier, Monroe, Highlands, Okeechobee, Glades, and Hendry counties. District Four: Brevard, Indian River, St. Lucie, Martin, and Palm Beach counties. District Five: Broward and Miami-Dade counties. The bill defines the terms "limited gaming," "game," or "gaming" to mean: BILL: SB 1708 Page 9 "the games authorized pursuant to the Resort Act in a limited gaming facility, including, but not limited to, those commonly known as baccarat, twenty-one, poker, craps, slot machines, video gaming of chance, roulette wheels, Klondike tables, punch-board, far0 layout, numbers ticket, push car, jar ticket, pull tab, or their common variants, or any other game of chance or wagering device that is authorized by the commission." The bill defines a "qualifier." It provides that a qualifier means: "an affiliate, affiliated company, officer, director, or managerial employee of an applicant for a resort license, or a person who holds a direct or indirect equity interest in the applicant. The term may include an institutional investor. As used in this subsection, the terms "affiliate," "affiliated company," and "a person who holds a direct or indirect equity interest in the applicant" do not include a partnership, a joint venture relationship, a shareholder of a corporation, a member of a limited liability company, or a partner in a limited liability partnership that has a direct or indirect equity interest in the applicant for a resort license of 5 percent or less and is not involved in the gaming operations as defrned by the rules of the commission." Destination Resort Commission SB 1708 amends s. 20.21, F.S., to create the Destination Resort Commission (commission) within DOR.~~ The commission is created in DOR for administrative purposes only, and it is a separate budget entity not subject to control, supervision, or direction by DOR in any manner. The commission would consist of seven members appointed by the Governor and confirmed by the Senate. The bill specifies experience requirements for the commission members, including experience in corporate finance, tourism, convention and resort management, gaming, investigation or law enforcement, business law, or related legal experience. The members would serve 4-year, staggered terms. One member of the commission must be a Florida-licensed certified public accountant with at least 5 years of experience in general accounting. One member must have experience in the fields of investigation or law enforcement. The bill divides the state into five destination resort districts, and requires that each district must be represented by at least one member of the commission who must reside in that district. The bill prohibits the appointment to the commission of elected officials and persons with a direct or indirect financial interest in applicants for a resort license or resort licensees. Members may also not be related to any person within the second degree of consanguinity or affinity to any person licensed by the commission. Members also may not possess the specified criminal history, including any felony or any misdemeanor involving gambling, within the 10 years preceding their appointment. 34 Section 20.21(1), F.S., provides that the agency head of the Department of Revenue is the Governor and the Cabinet. BILL: SB 1708 Page 10 One member of the commission shall be appointed by the Governor to serve as the chair of the commission. The chair shall be the administrative head of the commission and would be responsible for setting the agenda for commission meetings and approving all notices, vouchers, subpoenas, and reports required by the act. The bill also provides for a vice chair to be elected by the members of the commission during its first meeting. The commission would be headquartered in Tallahassee. However, the commission is authorized to establish field offices as it deems necessary. The initial meeting of the commission must be held by October 1,201 1. The commission must meet at least monthly. The commission is required to appoint an executive director of the commission. The executive director must be appointed within 10 days of the commission's initial meeting. The executive director may hire assistants and other employees as necessary to conduct the business of the commission. The bill provides for a comprehensive code of ethics which must be adopted by the commission. Generally, the code of ethics would prohibit members of the commission, the executive director, and employees of the commission fiom having a direct or indirect financial interest in the entities that it would regulate. It would also prohibit engaging in political activity, including using the person's official authority to influence the result of an election. Employees or agents of the commission would be prohibited fiom engaging in outside employment related to the activities or persons regulated by the commission. The commissioners, the executive director, and each managerial employee must file annual financial disclosures. It also specifies the circumstances in which these persons must immediately file disclosures, including matters related to criminal arrests, negotiations for an interest in a licensee or applicant, and negotiations for employment with a licensee or applicant. These persons are also prohibited from engaging in activities that may constitute a conflict of interest. The bill prohibits commissioners, licensees, applicants, or any affiliate or representative of an applicant or licensee fiom engaging directly or indirectly in an exparte communication with a member of the commission concerning a pending application, license, or enforcement action or concerning a matter that likely will be pending before the commission. Any exparte communication must immediately be reported in writing to the chair and placed on the record. Persons who make the ex parte communication must submit to the commission a written description of the communication which identifies the commissioner who received the communication. A commissioner who fails to disclose an exparte communication with 10 days of the communication is subject to removal from office and a civil penalty not to exceed $5,000. Such a violation would be investigated by the Commission on Ethics. A violation of the act by a commissioner may result in disqualification or constitute cause for removal by the Governor. The governor may impose other disciplinary action as determined by the commissioner. Violations by employees may result in termination of employment. If the violation involves an unintentional financial interest in a licensee or applicant, the person would BILL: SB 1708 Page 11 not have violated the act if they divested their financial interest with 30 days after the interest was acquired. Powers and Duties of the Commission The principal responsibility of the commission is to exercise jurisdiction over, and to supervise, all destination resort limited gaming activity in the state. The commission may authorize five destination resorts through an invitation to negotiate process in which respondents submit accompanying applications to demonstrate their qualifications. The commission would investigate the qualifications of the persons who respond to the invitation to negotiate and select the applicant that best serves the interest of the residents of Florida based on the: Potential for economic development presented by the applicant's proposed investment in infrastructure, such as hotels and other nongaming entertainment facilities; and the Applicant's ability to maximize revenue for the state. The commission will have the authority to suspend or revoke the license of any person found to no longer be qualified. The commission also can deny, revoke, suspend, or place conditions on a licensee who violates any provision of the act, a rule adopted by the commission, or an order of the commission. The commission can levy fines that may not exceed $250,000 per violation arising out of a single transaction. In terms of enforcement authority, the commission can issue subpoenas to compel the attendance of witnesses and subpoenas duces tecum to compel the production of records. It can apply to the courts for injunctive relief to enforce the act and any rules adopted by the commission. The bill gives the Florida Department of Law Enforcement and local law enforcement agencies the authority to investigate criminal violations of the act and other criminal violations that occur at the resorts in conjunction with limited gaming. Section 8 of the bill authorizes the commission to employ sworn law enforcement officers. The bill amends s. 120.80, F.S., which sets forth exceptions to the Florida Administrative Procedures Act. The bill exempts the commission from having to comply with the hearing and notice requirements in ss. 120.569 and 120.57(1)(a), F.S, the license application provisions in s. 120.60, F.S., and the waiver and variance provisions in s. 120.542, F.S. The commission is authorized to adopt all rules necessary to implement, administer, and regulate limited gaming. The bill provides a listing of specific areas in which the commission is authorized to adopt rules, these include the types of games, the time and place for the gaming, and the structures where limited gaming is authorized. The commission also can establish procedures to scientifically test slot machines and other authorized gaming equipment. The commission can adopt any rule necessary to accomplish the purposes of the act. The bill preempts the regulation of limited gaming activity at destination resorts to the state through the commission. Awarding Licenses for Limited Gaming at Destination Resorts BILL: SB 1708 Page 12 SB 1708 authorizes limited gaming at destination resorts. A destination resort may not be awarded a resort license unless a majority of the electors in a countywide referendum have approved the conduct of limited gaming in the respective county. Licenses would be awarded through an invitation to negotiate (invitations) process in which applicants reply on forms provided by the commission in response to the invitation to bid. The commission is not required to issue invitations for all five of the locations that the commission is authorized to permit. The commission may stagger its issuance of the invitations. The invitation may specify the district in which the facility would be located. The commission is required, if practical, to hold a public hearing in the county or counties for which the invitation would be issued. After reviewing the replies to the invitation, the commission may select one or more replies and commence negotiations after determining which replies are in the best interest of the state based on the selection criteria. Criteria for the Award of a Destination Resort License Only one destination resort license may be awarded per district. The applicant for a resort license must demonstrate the resort will: Increase tourism, generate jobs, provide revenue to the local economy, and provide revenue to the General Revenue Fund; Provide a minimum of 1,000 hotel rooms; Contain convention and meeting floor space of at least 500,000 square feet; and Limit the area where limited gaming is authorized to no more than 10 percent of the resort development's total square footage. In addition the applicant must demonstrate: A history of, or a bona fide plan for, community involvement or investment in the community where the resort having a limited gaming facility will be located. The financial ability to purchase and maintain an adequate surety bond. That it has adequate capitalization to develop, construct, maintain, and operate the proposed resort and convention center in accordance with the act; and The ability to implement a program to train and employ residents of this state for jobs that will be available at the destination resort, including its ability to implement a program for the training of low-income persons. The commission may assess the quality of the proposed development's aesthetic appearance in the context of its potential to provide substantial economic benefits, including the potential to provide substantial employment opportunities. SB 1708 specifies the information that must be included in the application. The application must be sworn. The required information includes identifying information about the applicant and all qualifiers, which are defined in the bill to mean the affiliate, affiliated company, officer, director, or managerial employee of an applicant, or a person who holds a direct or indirect equity interest BILL: SB 1708 Page 13 in the applicant. Persons with interest of less than 5 percent do not have to be disclosed as a qualifier. An incomplete application is grounds for denial of an application. However, if the commission determines that an application is incomplete, the applicant may request an informal conference with the executive director or his designee. The executive director may grant a 30 day extension to complete an application. The bill provides for institutional investors of an applicant and provides that they do not have to be included in the application. Institutional investors include persons that hold less than 5 percent of the equity securities or 5 percent of the debt securities of an applicant or affiliate of the applicant, and are a publicly traded corporation. Institutional investors must also file a certified statement that they do not intend to influence or affect the affairs of the applicant or its affiliate, and that the securities of the applicant or affiliate that it holds were purchased for investment purposes only. The commission may require that an institutional investor must qualify if it fmds that the investor is in a position to exercise a substantial impact upon the controlling interests of a licensee. The bill also exempts lenders and underwriters as qualifiers. Application Fees The application must be submitted with a nonrefbndable application fee of $1 million dollars to defray the costs of investigating and reviewing the application. The applicant must pay any investigative and review costs that exceed the $1 million fee. Also, the application must include a one-time licensing fee of $50 million, which the commission must refund within 30 days of denying an application. If an applicant withdraws its application after the application deadline, the commission must refund 80 percent of the licensing fee within 30 days after the application is withdrawn. Resort License Conditions SB 1708 outlines the conditions for initial licensure and continuing licensure for resort licensees. The conditions require that the licensee: Comply with the Resort Act and rules of the commission; Allow the commission and the Florida Department of Law Enforcement unlimited access to and the right of inspection for the areas of the resort where limited gaming activities occur; Complete the resort in accordance with the timeframe and plans submitted to the commission in the proposal, unless a waiver has been granted; Ensure that the facilities-based computer system is operational and that all accounting functions are structured to facilitate regulatory oversight, which shall require the systems to provide for real-time information to the commission and Department of Law Enforcement; a Ensure that each game, machine, or device is protected from tampering or manipulation; Submit and comply at all times with a detailed security plan; 0 Keep and maintain daily records of the resort for at least 5 years; and Create and file with the commission a written policy for: BILL: SB 1708 Page 14 o Creating opportunities to purchase from vendors from this state, including minority vendors; o Creating opportunities for employment of residents of this state, including minority residents; o Ensuring opportunities for hiring construction services from minority contractors; o Ensuring opportunities for employment are on an equal, nondiscriminatory basis; o Training employees on responsible gaming and work with a compulsive or addictive gambling prevention program; o Implementing a drug testing program; o Using the Internet-based job-listing system of the Agency for Workforce Innovation in advertising employment opportunities; and o Ensuring that each slot machine pays out at least 85 percent. In addition, the bill provides that the resort licensee shall give employment preference to veterans and use the E-Verify program to verify the employment eligibility of all prospective employees. The bill provides that the resort licensee should be renewed if the licensee demonstrates an effort to increase tourism, generate jobs, and provide revenue to the state and local economy. Bond Each resort licensee must, at its own cost and expense, give a bond in the penal sum35 to be determined by the commission and payable to the Governor. The commission shall set the bond at the total amount of the estimated license fees and taxes estimated to become due for the resort. In lieu of a bond, a licensee may instead pay a like amount of funds to the commission. Limited Gaming Limited gaming may be conducted at a resort licensee, but only within the facility of the resort as approved by the commission. Limited gaming activities may not begin until the resort is completed in accordance with the plans submitted to the commission. The resort licensee may only accept wagers from persons at least 21 years of age who are present in the facility. The facility may not accept wagers using money, except for slot machine gaming. Section 24 of the bill further provides that the facility may be open 24 hours per day, 365 days per year. License Fees Each resort licensee is required to pay $5 million annually to the commission as a license fee. In addition, each resort licensee is required to pay a gross receipts tax on the gross receipts for limited gaming activities at the resort. Once the resort is complete, the licensee must submit all information, as required by the commission, to determine the infrastructure investment and to set the tax rate for the resort. If the total infrastructure investment is $2 billion or more, the gross receipts tax rate is 10 percent. If the total infrastructure investment is at least $1 billion but less than $2 billion, the gross receipts tax is 15 percent. If the total infrastructure investment is less than $1 billion, the gross receipts tax is 20 percent. 35 bLPenal sum" is the stated limit of the bond which, in turn, is the limit of the insurer's liability under the bond. BILL: SB 1708 Page 15 Uses of the Gross Receipts Tax Revenues Pursuant to section 25 of the bill, the revenues fiom the gross receipts tax are deposited into the Destination Resort Trust Fund. These revenues must be used for the following purposes: Ninety-five percent of the money in the fund is deposited to the General Revenue Fund; Two and one-half percent is deposited in the Tourism Promotional Trust Fund for use by the Florida Commission on Tourism; One and one-fourth percent is deposited into the Employment Security Administration Trust Fund for use by the school readiness program; and One and one-fourth percent is deposited into the Transportation Disadvantaged Trust Fund for use by the Transportation Disadvantaged Commission, which oversees locally run programs to provide transportation services to the disabled, elderly, and underprivileged. Fingerprint Requirements SB 1708 provides fingerprint requirements for all applicants and licensees of the commission. The cost for fingerprinting is paid by the applicant. Compulsive or Addictive Gambling Prevention Program Each resort licensee is required to train employees on responsible gaming and to work with a program on responsible gambling to recognize problem gambling. The commission is required to contract for services related to the prevention of compulsive and addictive gambling. The contract for the services must require advertising of responsible gambling and the publication of a gambling telephone help line. Each resort licensee is required to fund the program with a $250,000 annual fee. Suppliers' and Occupational Licenses Suppliers' licenses are required in order to furnish, on a regular or continuing basis, gaming equipment, supplies, devices, or goods or services relating to the realty, construction, or business of a resort licensee. This requirement includes, but is not limited to, manufacturers, distributers, food purveyors, construction companies, and junket enterprises. Each applicant and licensee must pay an annual license fee of $5,000. A person is not eligible for a suppliers' license if the person has committed a felony, knowingly submitted false information to the commission, the applicant is a member of the committee, the applicant is not a natural person, or the applicant has a resort license or pari-mutuel license in either this state or any other jurisdiction. Any person who wishes to become a gaming employee must apply to the commission for an occupational license; no person may be employed by a resort licensee until that person has an occupational license. The application fee must be set by the commission, but an employee occupational license fee may not exceed $50. Occupational licensees must be at least 21 years old to perform gaming related functions and at least 18 to perform non-gaming related functions. A person who has committed a felony or crime involving dishonesty or moral turpitude in any jurisdiction is not eligible for an occupational license. All applicants for suppliers' and occupational licenses must submit to background investigations and comply with the fingerprint requirements in the act. The bill authorized the commission to revoke a license for a violation of the act and commission rules. It provides the duties of each BILL: SB 1708 Page 16 licensee. In addition, the bill outlines when the executive director can issue a temporary suppliers' or occupational license. Quarterly Reports The commission is required to submit quarterly reports to the Governor, President of the Senate, and Speaker of the House of Representatives. The reports must include a statement of receipts and disbursements related to limited gaming, a summary of disciplinary actions taken by the commission, and any additional information or recommendations that the commission believes may improve the regulation of limited gaming or increase the economic benefits of limited gaming to this state. Hearings by the Commission The chair of the commission may assign hearings to two or more members of the commission. Only the commissioners assigned to a hearing can participate in the final decision for the commission on that matter. If only two commissioners are assigned a matter and they cannot decide, the chair may cast the deciding vote. Any party to a proceeding before the commission may request for the matter to be heard before the full commission; the full commission must convene within 15 days to hear the matter. Resolutions of Disputes between Licensees and Patrons If a dispute that involves alleged wins, losses, payments of cash, prizes, benefits, tickets, or other items or a dispute that involves the manner in which a game, tournament, contest, drawing, promotion, race or similar activity was conducted, cannot be resolved between the licensee and the patron, the licensee must immediately notify the commission if the dispute involves $500 or more. If the dispute involves less than $500, the licensee must notify the patron of the patron's right to file a complaint with the commission. The commission may investigate the matter and may require the licensee to pay restitution to the patron. Failure to notify the commission of a dispute or notifying a patron of their right to file a complaint constitutes grounds for disciplinary action against the resort licensee. Enforcement of Credit Instruments SB 1708 permits the use of credit instruments. Resort licensees may accept incomplete credit instruments if they are signed by the patron and the amount is completed in numbers; the resort licensee may complete the incomplete instrument. The resort licensee may accept a credit instrument payable to an affiliate of the licensee. In addition, the resort licensee may accept the credit instrument before, during, or after the patron has incurred the debt with the resort. Voluntary Self Exclusion SB 1708 provides that a person may request to be excluded for all limited gaming facilities by completing a self-exclusion form and submitting it to the commission. The fop requires the patron to include his or her name, date of birth, and other identifying information. The form also requires the individual to indicate how long he or she wishes to be excluded from the limited gaming facilities. BILL: SB 1708 Page 17 Conforming Provisions SB 1708 amends the gambling devices prohibition in s. 849.23 1, F.S., and the bookmaking prohibition in s. 849.25, F.S., to incorporate the limited gaming authorization provided in the bill. Effective Date The bill provides an effective date of July 1,20 1 1. IV. Constitutional Issues: A. MunicipalityICounty Mandates Restrictions: None. B. Public Recordslopen Meetings Issues: A tied public records bill, SB 1712, has been filed to accompany this bill. C. Trust Funds Restrictions: A tied trust fund bill, SB 1710, has been filed to accompany this bill. D. Other Constitutional Issues: The Florida Constitution is silent on the subject of casino gaming. However, the Florida Constitution does not prohibit the Legislature fiom creating laws to authorize, regulate, or tax gaming in the state. With regard to gaming, the Florida Constitution only addresses the subjects of lotteries and slot machine gaming. The Florida Constitution prohibits lotteries, except pari-mutuel pools permitted by state law,36 but specifically allow for state operated lotteries.37 Even though the Florida Constitution does not specifically prohibit any form of gaming other than lotteries that are not state operated, the provision that expanded the pari-mutuel locations that can offer slot machine gaming is being challenged as violating s. 23, Art. X, Florida Constitution. These lawsuits challenge the Legislature's authority to authorize slot machine gaming outside the pari-mutuel facilities enumerated in s. 23, Art. X, of the Florida Constitution, which references pari-mutuel facilities that were existing and had conducted live racing or games in that county during each of the last 2 calendar years before the effective date of the amendment (2004). The trial court upheld the 36 Section 7, Art. X, Florida Constitution. 37 Section 15, Art. X, Florida Constitution. BILL: SB 1708 Page 18 constitutionality in Leon That decision is on appeal to the First District Court of ~~~eals.~~ V. Fiscal impact Statement: A. TaxIFee Issues: Applicants for a destination resort license would pay an application fee of $1 million dollars to defray the costs of investigating and reviewing the application, plus any investigative and review costs that exceed $1 million. The application also must include a one-time licensing fee of $50 million, which the commission must refund within 30 days of denying an application. If an applicant withdraws its application after the application deadline, the commission must refund 80 percent of the licensing fee within 30 days after the application is withdrawn. Each resort licensee would be required to pay $5 million annually to the commission as a license fee. In addition, each resort licensee would pay a gross receipts tax. The tax rate would be dependent on the licensee's investment in infrastructure. Once the resort is complete, the licensee must submit all information, as required by the commission, to determine the infrastructure investment and to set the tax rate for the resort. If the total infrastructure investment is $2 billion or more, the gross receipts tax rate is 10 percent. If the total infrastructure investment is at least $1 billion but less than $2 billion, the gross receipts tax is 15 percent. If the total infrastructure investment is less than $1 billion, the gross receipts tax is 20 percent. Suppliers' licensees would be required to pay an annual license fee of $5,000, while the fee for an occupational licensee may not exceed $50. The state's Revenue Estimating Conference has not met to estimate the revenue impact of SB 1708. However, the casino industry estimates that implementation of SB 1708 may: Generate total non-gaming revenue for the first year of $85.4 million; Induce by the third year $64.5 million in convention and local bed tax collections; and Increase collections of corporate income taxes and sales taxes by nearly $52 million. 38 See Order on Plaintiffs Motion for Summary Judgment, consolidated cases, Florida Gaming Centers, Inc. v. Department of Business and Professional Regulation and South Florida Racing Association, No. 201 0 CA 2257 and Calder Race Course, Inc. v. Department of Business and Professional Regulation and South Florida Racing Association, No. 201 0 CA 21 32 (Fla. 2d Cir. Ct. December 14,2010). 39 See Calder Race Course, Inc. v. Department of Business and Professional Regulation and South Florida Racing Association, ID1 1-130 (Fla. 1'' DCA) and Florida Gaming Centers, Inc. v. Department of Business and Professional Regulation and South Florida Racing Association, 1 Dl 0-6780 (Fla. 1 st DCA). BILL: SB 1708 Page 19 B. Private Sector Impact: The industry estimates that the five resorts, if authorized, would create 140,000 construction jobs and would generate $10 million in construction costs. The industry estimates that the five resorts, if built, would attract 5.26 million out-of- market visitors, including more than 3 13,000 convention visitors. C. Government Sector Impact: Indeterminate. However, the bill authorizes fees projected to be sufficient to pay the costs of administering the act. VI. Technical Deficiencies: None. VII. Related Issues: State revenue-sharing with the Seminole Indian Compact relies on continued exclusivity of casino-style and Class 111 gaming. The authorization for full commercial casinos would constitute a casino style and Class 111 gaming expansion and would affect the revenue-sharing payments that the Tribe is required to make to the state under the compact. Any cessation or reduction of revenue sharing payments upon the expansion of casino gaming would depend on the location of the new casinos. It is important to stress that any cessation or reduction of revenue sharing payments would only occur when the first,Class I11 or other casino-style game is played. The mere authorization of Class I11 gaming or other casino-style gaming would not affect the payments. It is also important to note that the state's expansion of Class-111 gaming or casino-style gaming would not mean that the state had violated its compact with the Tribe. The compact specifies the consequences, particularly the financial ramifications, if the state elects to expand gaming in this state, and does not expressly prohibit any such expansion. If the Destination Resort Commission approves a destination resort with limited gaming in any location outside of Miami-Dade and Broward Counties, all of the Tribe's revenue-sharing payments would stop once the first game is played.40 If the Destination Resort Commission approves a destination resort with limited gaming inside of Miami-Dade and Broward Counties, but the location is not at a pari-mutuel facility, the Tribe would continue to make revenue-share payments, but the Tribe would exclude the net win from their Broward facilities. According to the division, the net win fiom the Tribe's Broward facilities equals approximately 47 percent of the Tribe's total net win. Therefore, if casino-style gaming were expanded and limited to Miami- Dade and Broward Counties, the Tribe's payments would be reduced by approximately 47 percent. 40 See Part XII. A., Gaming Compact, supra n. 29. BILL: SB 1708 Page 20 In addition, if the destination resort with limited gaming is authorized for any location in Miami- Dade or Broward counties within the first 5 years of the compact, the guaranteed minimum payment and the $1 billion guarantee for the first 5 years of the compact would no longer apply. The Tribe's payments would be based on the applicable percentage of net win. Once the new gaming begins at licensed destination resorts, the Tribe may continue to offer the covered games authorized in the compact plus any additional games that are authorized for the destination resorts.41 The Tribe will have to renegotiate a new Compact for Class 111 games when the Compact expires at the end of its 20-year term,42 but it is not clear what reason the Tribe would have to renegotiate the revenue-sharing terms if casino-style gaming is authorized at destination resorts in the state. However, the Tribe would have to negotiate a new com act at the end of the current compact's term before it could continue to offer the covered games. E VIII. Additional Information: A. Committee Substitute - Statement of Substantial Changes: (Summarizing differences between the Committee Substitute and the prior version of the bill.) None. B. Amendments: None. This Senate Bill Analysis does not reflect the intent or official position of the bill's introducer or the Florida Senate. 41 See the definition of covered games at Part III.F.4., Gaming compact, supra at n. 29. 42 See Part XVI.B., Gaming Compact, supra at n. 29. 43 IGRA at 18 U.S.C. s. 2710(d)(l)(C). THIS PAGE INTENTIONALLY LEFT BLANK