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C7G-Accept Recommendation Execute Letter Of Agreement - Art Basel ZoneCOMMISSION ITEM SUMMARY Condensed Title: A Resolution accepting the recommendation of the Finance and Citywide Projects Committee approving and authorizing the City Manager to execute a Letter of Agreement between the City and MCH Swiss Exhibition Ltd (MCH), outlining terms and conditions for use of certain public property during Art Basel Miami Beach, and the formal establishment of an "Art Basel Zone". Key Intended Outcome Supported: Increase community ratings of cultural activities. Supporting Data (Surveys, Environmental Scan, etc.): The 2009 Community Satisfaction Survey reported more than one-fifth of all resident respondents feel there are "too few'' family friendly activities (24.6%) and cultural activities (24.1 %). Additionally, on average, residents attended 10.61 cultural activities per year and 7.19 family friendly activities per year. Issue: Shall the City Commission authorize the City Manager to enter into a letter agreement with Art Basel Miami Beach and direct the Administration to include a corresponding amendment in the City's Special Event Guidelines to reflect the Art Basel Zone? Item Summary/Recommendation: As ABMB grew in popularity, so did the number of requests for temporary art displays or for use of public property in the immediate area of the convention center. The City and ABMB informally established an Art Basel Miami Beach Zone to protect the ABMB brand and limit third party use of public property in this area. At this time, the City and ABMB would like to formally memorialize the Art Basel Miami Beach Zone. In order to accomplish this, an amendment to the Special Event Guidelines is required. The Special Event Guidelines would need to be amended to establish an "Art Basel Zone" which, if such recommended amendment is approved by the Mayor and City Commission would include: The establishment of a zone, the effective term and duration of which is only intended to run concurrent with the actual ABMB Event dates for years 2011, 2012, 2013, and 2014, as same are set forth in the MCH License, and which zone is intended to be bounded by 23rd Street to the north; by Lincoln Lane South to the south; by Alton road to the west; and by the Atlantic Ocean to the east (hereinafter the Art Basel Zone). The Art Basel Zone, if approved, shall be established for the purpose of precluding the City from issuing a special event permit, for the use of public property within the Art Basel Zone during the term/duration that such Zone is in effect, without first obtaining the prior written consent of MCH. Notwithstanding the establishment of the Art Basel Zone, (i) special events held on private property, and (ii) demonstrations, pickets, and free speech activities, as such terms are defined in the Guidelines, and as same may be amended from time to time, shall be EXEMPT from the requirements of this letter of understanding and, accordingly, shall NOT require MCH's approval. The City shall use reasonable commercial efforts to inform MCH of any special event applications for use of public City-owned property outside the Art Basel Zone that the City may receive for the installation and/or display of art and/or art works during the term/duration of, the ABMB Event for, respectively years 2011, 2012, 2013, and/or 2014. Financial Information: Source of Amount Funds: 1 OBPI Total Financial Impact Summary: N/A Ci Clerk's Office Le islative Trackin Max Sklar, Ext. 6116 Si n-Offs: Department Director MIAMI BEACH Account 179 Approved AGENDA ITEM --:-C_7_~-­ DATE 'f-/1-1 ?_ m MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov TO: FROM: DATE: SUBJECT: COMMISSION MEMORANDUM Mayor Matti Herrera Bower and Members of the City Commission Jorge M. Gonzalez, City Manager \}~ April11, 2012 0 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE AND APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A LETTER OF AGREEMENT BETWEEN THE CITY AND MCH SWISS EXHIBITION L TO (MCH), OUTLINING TERMS AND CONDITIONS FOR USE OF CERTAIN PUBLIC PROPERTY DURING ART BASEL MIAMI BEACH, AND FOR THE ESTABLISHMENT OF AN "ART BASEL ZONE." ADMINISTRATION RECOMMENDATION As directed by the Finance and Citywide Projects Committee, the Administration recommends the approval of a letter agreement between the City of Miami Beach and Art Basel Miami Beach outlining terms and conditions for use of public property by Art Basel Miami Beach and the formal establishment of an Art Basel Zone. BACKGROUND Art Basel Miami Beach (ABMB) was established in 2000 as the sister event of Switzerland's Art Basel, the world's most prestigious art fair for the past 42 years. In just ten years, ABMB has become the preeminent contemporary art fair in the western hemisphere, and an established destination for artists, galleries, collectors, museum groups and other individuals interested in top-notch art. Each year, ABMB spends millions of dollars producing the fair and economists have estimated $400 million to $500 million in related economic impact as a result of the fair. As ABMB grew in popularity, so did the number of requests for temporary art displays or for use of public property in the immediate area of the convention center. The City and ABMB informally established an Art Basel Miami Beach Zone to protect the ABMB brand and limit third party use of public property in this area. The boundaries of the zone include 23rd Street to the north; Lincoln Lane South to the south; Alton road to the west; and the Atlantic Ocean to the east. At this time, the City and ABMB would like to formally memorialize the Art Basel Miami Beach Zone. In order to accomplish this, an amendment to the Special Event Guidelines is required. The Special Event Guidelines would need to be amended to establish an "Art Basel Zone" which, if such recommended amendment is approved by the Mayor and City Commission would include: 180 City Commission Memorandum Art Basel Miami Beach Letter Agreement Apri/11, 2012 Page2 a.) The establishment of a zone, the effective term and duration of which is only intended to run concurrent with the actual ABMB Event dates for years 2011, 2012, 2013, and 2014, as same are set forth in the MCH License, and which zone is intended to be bounded by 23rd Street to the north; by Lincoln Lane South to the south; by Alton road to the west; and by the Atlantic Ocean to the east (hereinafter the Art Basel Zone). b.) The Art Basel Zone, if approved, shall be established for the purpose of precluding the City from issuing a special event permit, for the use of public property within the Art Basel Zone during the term/duration that such Zone is in effect, without first obtaining the prior written consent of MCH. Accordingly, the City shall provide MCH with at least thirty (30) calendar days prior written notice of any special event applications received by the City for the use of public property within the Zone during the ABMB Event date(s) (the City's Approval Request). MCH shall have ten (1 0) calendar days from the date of the City's Approval Request to approve or deny the Request. MCH's approval or denial of the Request must be in writing and, if a denial, must specifically set forth the reason(s) therefore. In the event that MCH fails to approve or deny a Request within the ten (10) day time period and, further, in accordance with the procedures set forth herein, then MCH shall have waived its right to deny such Request, and the City may proceed with the event (that was the subject of such Request) as if approved by MCH, and without any further notice and/or other obligation to MCH. c.) Notwithstanding the establishment of the Art Basel Zone, and/or any other term or condition in this letter of understanding, (i) special events held on private property, and (ii) demonstrations, pickets, and free speech activities, as such terms are defined in the Guidelines, and as same may be amended from time to time, shall be EXEMPT from the requirements of this letter of understanding and, accordingly, shall NOT require MCH's approval. d.) The City shall use reasonable commercial efforts to inform MCH of any special event applications for use of public City-owned property outside the Art Basel Zone that the City may receive for the installation and/or display of art and/or art works during the term/duration of, the ABMB Event for, respectively years 2011, 2012, 2013, and/or 2014. e.) The City shall take into consideration the needs and requirements of the ABMB Event as plans for the City's proposed expansion and renovation of the MBCC are developed. The Finance and Citywide Projects Committee considered this matter at their March 1, 2012, meeting and recommended in favor of the letter agreement and the formal creation of the Art Basel Zone. The item is being presented to the Mayor and Commission for consideration as recommended by the Finance and Citywide Projects Committee. The Administration will include a corresponding amendment in the City's Special Event Guidelines to reflect the Art Basel Zone at the May 2012 City Commission Meeting if the attached Resolution is approved. CONCLUSION As directed by the Finance and Citywide Projects Committee, the Administration recommends the approval of a letter agreement between the City of Miami Beach and Art Basel Miami Beach outlining terms and conditions for use of public property by Art Basel Miami Beach and the formal establishment of an Art Basel Zone. JMG/HMF/MAS 181 RESOLUTION NO.------ A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE AND APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A LETTER OF AGREEMENT BETWEEN THE CITY AND MCH SWISS EXHIBITION L TO (MCH}, OUTLINING TERMS AND CONDITIONS FOR USE OF CERTAIN PUBLIC PROPERTY DURING ART BASEL MIAMI BEACH, AND FOR THE ESTABLISHMENT OF AN "ART BASEL ZONE." WHEREAS, Art Basel Miami Beach (ABMB) was established in 2000 as the sister event of Switzerland's Art Basel, the world's most prestigious art fair for the past 42 years; and WHEREAS, ABMB has become the preeminent contemporary art fair in the western hemisphere, and an established destination for artists, galleries, collectors, museum groups, and other individuals interested in top-notch art; and WHEREAS, economists have estimated $400 million to $500 million annually in related economic impact as a result of ABMB; and WHEREAS, in the past, during the ABMB event, the City and ABMB have informally established a zone around the Convention Center area, to protect the ABMB brand and limit third party use of public property in this area, due to a growing number of requests for temporary art displays or for other uses of public property in the immediate area of the Convention Center; and WHEREAS, the City and ABMB would like to formally memorialize the establishment of an "Art Basel Zone" by amending the City's Special Event Requirements and Guidelines to establish such zone; and WHEREAS, at its regular meeting on March 1, 2012, the Finance and Citywide Projects Committee recommended approval of the first step in this process; that is, approval of a letter agreement between the City and MCH outlining terms and conditions for use of public property by MCH during the fair dates, and the City's consideration of the establishment of an "Art Basel Zone." 182 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 the Finance and Citywide Projects Committee and approve and authorize the City Manager to execute a Letter of Agreement between the City and MCH Swiss Exhibition LTD (MCH), outlining terms and conditions for use of certain public property during Art Basel Miami Beach, and for the establishment of an "Art Basel Zone." PASSED AND ADOPTED this 11st day of April, 2012. Attest: CITY CLERK T:\AGENDA\2012\4-11-12\ABMB Letter AGreement Reso.doc 183 MAYOR APPROVED AS TO FORM & LANGUAGE & FOI1 EXECUTION ~ MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov OFFICE OF THE CITY MANAGER Tel: 305.673.7010, Fax: 305.673.7782 January 24, 2012 Ms. Annette Schonholzer, Co-Director, MCH Swiss Exhibition (Basel) L TO Art Basel, Art Basel Miami Beach Messeplatz 1 0 CH -4005 Basel, Switzerland RE: Letter of Understanding between the C Swiss Exhibition Ltd (MCH) regarding Event). Dear Ms. Schonholzer: The following letter shall confirm the certain terms pertaining to the ABMB obligation to continue to hold the ABMB Miami Beach Convention (MBCC), for Subject to MCH's ABMB Event at License Agreement November 28 free of support and MCH regarding for MCH's contractual annually each Winter at the 2, 2013, and 2014. obligations pertaining to the holding of the , those set forth in that certain H Swiss Exhibition (Basel), L TO, dated , and provided MCH is good standing and rees to take the following actions, in further d to the Mayor and Commission that the City's and Guidelines, in effect as of the execution date of this the parties hereto (the Guidelines), be amended to establish ch, if such recommended amendment is approved by the Mayor in their sole and reasonable discretion, shall accomplish the a.) The ment of a zone, the effective term and duration of which is only intended to run concurrent with the actual ABMB Event dates for years 2011, 2012, 2013, and 2014, as same are set forth in the MCH License, and which zone is intended to be bounded by 23rd Street to the north; by Lincoln Lane South to the south; by Alton road to the west; and by the Atlantic Ocean to the east (hereinafter the Art Basel Zone). b.) The Art Basel Zone, if approved, shall be established for the purpose of precluding the City from issuing a special event permit, for the use of public property within the Art Basel Zone during the term/duration that such Zone is in effect, without first 184 obtaining the prior written consent of MCH. Accordingly, the City shall provide MCH with at least thirty (30) calendar days prior written notice of any special event applications received by the City for the use of public property within the Zone during the ABMB Event date(s) (the City's Approval Request). MCH shall have ten (10) calendar days from the date of the City's Approval Request to approve or deny the Request. MCH's approval or denial of the Request must be in writing and, if a denial, must specifically set forth the reason(s) therefore. In the event that MCH fails to approve or deny a Request within the ten (10) day time period and, further, in accordance with the procedures set forth herein, then MCH shall have waived its right to deny such Request, and the City may proceed the event (that was the subject of such Request) as if approved by MCH, ut any further notice and/or other obligation to MCH. c.) Notwithstanding the establishment of the Art condition in this letter of understanding, (i) and (ii) demonstrations, pickets, and defined in the Guidelines, and as same EXEMPT from the requirements of this NOT require MCH's approval. 2. The City shall use reasonable commercial applications for use of public City may receive for the insta term/duration of, the ABMB Event 3. The City shall take into conside · plans for the City's any other term or on private property, such terms are time, shall be ly, shall nts of the ABMB Event as the MBCC are developed. In the event that a MCH and the City defense alleging inadeq with respect to this letter of understanding, ive their rights to assert any argument or administrator who shall monitor the parties' of understanding. Unless otherwise notified, the contract ity: Sklar, Tourism and Cultural Development Director urism and Cultural Development Department of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 305-673-7 577 For MCH: Show Manager MCH Swiss Exhibition Basel (Ltd) Messeplatz 1 0 4005 Basel, Switzerland MCH agrees to defend, indemnify and hold harmless the City, and its officials, directors, 2 185 officers, employees, agents, contractors, servants, successors, and assigns, against any claims, causes of actions, costs, expenses, (including reasonable attorney's fees), liabilities, or damages arising out of or in connection with any negligent act or omission, or intentional misconduct on the part of MCH or any of its officials, directors, officers, employees, agents, contractors, servants, successors and assigns, in the performance of its obligations under this letter of understanding. The indemnification and hold harmless requirements in the preceding paragraph shall survive the termination or expiration of this letter of understanding. This letter of understanding may be terminated by either party, cause), upon sixty (60) days prior written notice to the other party All written notices and communications required or personally to the respective representatives of MCH and by registered mail, postage prepaid (or air-mailed if of dispatch). Until changed by notice in writing, all such nnt,im!lili follows: TO MCH: TO CITY: each nter Drive rida 33139 ience (and without. may be delivered or may be mailed outside of the city Cultural Arts & Tourism Dev. Director , Ext. 6116 red personally, on delivery; if mailed to an address the date mailed; and if mailed to an address outside following the date mailed. This letter of u be governed by, and construed in accordance with, the laws of the State of Flo ntive and remedial, without regard to principles of conflict of laws. The exclusive for any litigation arising out of this letter of understanding shall be Miami-Dade County, if in state court, and the U.S. District Court, Southern District of Florida, if in federal court. BY ENTERING INTO THIS LETTER OF UNDERSTANDINBG, CITY AND MCH EXPRESSLY WAIVE ANY RIGHTS EITHER PARTY MAY HAVE TO A TRIAL BY JURY OF ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF, THIS LETTER OF UNDERSTANDING. Neither party may assign this letter of understanding. Neither this letter of understanding, nor any of its terms, may be changed, modified, or otherwise amended except by an instrument in writing, signed by an authorized representative, which shall be the City Manager (on behalf of the City), and (on behalf of 3 186 MCH). The City and MCH acknowledge and agree that they are not joint venturers, partners, or joint owners with respect to this letter of understanding. Nothing contained herein shall be construed as creating a partnership, joint venture or similar relationship between the City and MCH. Additionally, for purposes of this letter of understanding (or otherwise) no officer, director, employee, agent, or contractor of MCH shall be deemed to be an agent or employee of the City, and shall not attain any rights or benefits under the Civil Service or Pension Ordinance of the City, or any right generally afforded Classified or Unclassified employees' or be deemed entitled to Florida Worker's Compensation benefits as an employee of the or accumulation of sick or annual leave. If the aforestated meets with your approval, please .,,..~, ... ,...,,., space provided below. Upon execution by the City Man forward a fully executed copy to you for your records. Very truly yours, Raul J. Aguila Chief Deputy City Attorney I have read this Jetter agreement and and conditions contained herein. MCH Swiss Exhibition ( Date RJA/ed Date F:\INFO\$ALL\Max\TCD\Special Events\BASEL\Basel Letter Agreement _sept 2011.doc 4 187 execute same in the If of the City), we will be bound by the terms THIS PAGE INTENTIONALLY LEFT BLANK 188