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HomeMy WebLinkAboutResolution 2025-33981RESOLUTION NO. 2025-33981 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE AT ITS SEPTEMBER 26, 2025, MEETING TO DIRECT THE CITY ADMINISTRATION TO ENTER FORMAL NEGOTIATIONS WITH LIVE NATION WORLDWIDE, INC. FOR A POSSIBLE NEW MANAGEMENT AGREEMENT FOR THE MANAGEMENT AND OPERATION OF THE FILLMORE MIAMI BEACH AT THE JACKIE GLEASON THEATER, SUCH AGREEMENTTO BE SUBJECT TO REVIEW AND APPROVAL BY THE MAYOR AND CITY COMMISSION. WHEREAS, the Gleason/Fillmore Theater (the "Venue") is a City owned building located at 1700 Washington Avenue; and WHEREAS, the City opened the Venue as the Miami Beach Municipal Auditorium in 1951; and WHEREAS, the Venue, renamed the Miami Beach Auditorium was the home of the Jackie Gleason Show from 1964 to 1970; and WHEREAS, The Venue's auditorium was remodeled in 1971 by architect Morris Lapidus and renamed the Miami Beach Theater of the Performing Arts; and WHEREAS, the Venue's facade was remodeled in 1988 to resemble the Art Deco architecture iconic to Miami Beach, and was renamed the Jackie Gleason Theater of the Performing Arts; and WHEREAS, on June 22, 2007, the City entered into a management agreement with Live Nation pursuant to which Live Nation acts as the City's agent with respect to the management and operation of the Venue and the Venue was rebranded "The Fillmore Miami Beach at the Jackie Gleason Theater; and WHEREAS, in 2019, engineers M.C. Harry and Associates conducted a Conditions Assessment and provided recommendations for improvements estimated at $23,634,681; and WHEREAS, on November 8, 2022, the City's voters approved a $159 million General Obligation (G.O.) Bond for Arts and Culture that included $29,100,000 for the renovation of the Venue;and WHEREAS, on May 24, 2023, at the request of the Mayor and City Commission, Live Nation presented a concept for a new theater in place of the existing Venue and a motion was made by Commissioner Richardson to discuss the item at City Commission and further, directed the Administration to explore the option of building a new facility, however this item was withdrawn by the sponsor; and WHEREAS, on January 31, 2024 at the request of Commissioner Joe Magazine, the City Commission approved the referral of this item to Finance and Economic Resiliency Committee ("FERC"); and WHEREAS, In April 2024, at the direction of the City Commission, the Administration engaged Live Nation in developing an alternate 'gut -renovation" plan to be presented at Commission; and WHEREAS, On July 8, 2024, Live Nation returned to the Administration two (2) concept designs and cost estimates for the New Building Concept at $57.7 million and the Gut -Renovation Concept at $87.1 million; and WHEREAS, on Thursday, August 22, 2024, the Administration and Live Nation presented the concepts being considered to the residents in a virtual listening session and open comment period;and WHEREAS, at the September 11, 2024 Commission meeting Commissioner Alex Fernandez entered a motion to remove from consideration the demolition of the Venue; and WHEREAS, at the same meeting, Commissioner Tanya Bhatt entered a motion to direct the Administration to engage Live Nation in a discussion of terms to renovate the Venue with a yet to be determined scope of work and contribution from Live Nation; and WHEREAS, general terms of this agreement were discussed at the September 26, 2025 FERC meeting; and WHEREAS, the Committee made some recommendations regarding the terms and advanced the item to Commission with a favorable recommendation to direct the Administration to engage in formal negotiations with Live Nation for a possible new management agreement; and 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 favorable recommendation of the Finance and Economic Resiliency Committee (FERC) at its September 26, 2025 meeting to direct the Administration to enter formal negotiations with Live Nation Worldwide Inc. for a possible new management agreement for the management and operation of the Fillmore Miami Beach at the Jackie Gleason Theater, such possible agreement to be subject to review and approval by the Mayor and City Commission. PASSED and ADOPTED this 11 day of DD Xe .Tber 202-T ATTEST: JAN 2 7 202E Rafael E. ranado, City Clerk E BE5 j iINEOEP OpATE- 2 Leven Meiner, Mayor APPROVED AS TO FORM &LANGUAGE & FOR EXECUTION 1124-) -Apzf� City Attorney Date Resolutions - C7 R MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Eric Carpenter, City Manager DATE: December 17, 2025 TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE AT ITS SEPTEMBER 26, 2025, MEETING TO DIRECT THE CITY ADMINISTRATION TO ENTER FORMAL NEGOTIATIONS WITH LIVE NATION WORLDWIDE, INC. FOR A POSSIBLE NEW MANAGEMENT AGREEMENT FOR THE MANAGEMENT AND OPERATION OF THE FILLMORE MIAMI BEACH AT THE JACKIE GLEASON THEATER, SUCH AGREEMENT TO BE SUBJECT TO REVIEW AND APPROVAL BY THE MAYOR AND CITY COMMISSION. The Administration recommends that the Mayor and City Commission adopt the Resolution accepting the recommendation of the Finance and Economic Resiliency Committee ("FERC") to negotiate a new Management Agreement with Live Nation Worldwide, Inc. ("Live Nation") for the management and operation of the Fillmore Miami Beach. Such agreement will require a 5rf ° vote from Commission. On January 31, 2024, at the request of Commissioner Joseph Magazine, the Mayor and City Commission approved the referral of item C4 AD to the Finance and Economic Resiliency Committee ("FERC" or "Committee") to discuss the Live Nation project to build a new theater. At the March 22, 2024, FERC meeting, Live Nation Worldwide ("Live Nation") presented their concept for a new theater, which was previously presented at the May 24, 2023, FERC meeting. A motion was approved by acclamation, for this item to be heard by the City Commission with a favorable recommendation to direct staff to negotiate with Live Nation to build a new theater. This item was to be retained and was to return to FERC with the resulting proposals. Commissioner Alex Fernandez and Commissioner Tanya Bhatt requested to be added as co-sponsors. Consequently, on April 3, 2024, the Mayor and City Commission discussed the Resolution sponsored by Commissioner Magazine, accepting the recommendation of the FERC at its March 22, 2024 meeting directing the Administration to initiate non -binding discussions with Live Nation regarding the possible construction of a new theater at the Jackie Gleason Theater site, and referring the matter back to the FERC. At the City Commission meeting, the item was separated by Commissioner Tanya Bhatt and Vice -Mayor Laura Dominguez from the Consent Agenda. Commissioner Bhatt made a motion to defer the item with direction to explore the option for renovation, seeking input from the operator and the public. The Administration was given direction to return with a comparison of the two options, renovation of the existing building and the building of a new theater. In April 2024, at the direction of the City Commission, the Administration engaged Live Nation in developing an alternate "gut -renovation" plan and also updating the 2023 proposal for a new building. On July 8, 2024, Live Nation returned to the Administration two (2) concepts and cost 1071 of 3458 estimates; a New Building concept at $57.7 million and the Gut -Renovation Concept at $87.1 million. Both options present a substantial funding gap, exceeding the GOB for Arts and Culture ("GOBAC") funding appropriation. With an option for the renovation of theexistingbuilding and the construction of a new theater, the Administration conducted a virtual meeting on Thursday, August 22, 2024, to present the residents of Miami Beach with the concepts being considered, answer their questions, and listen to their comments. Fifty-three (53) individuals attended the listening session. Of the residents whc voiced their opinions, none supported either the gut -renovation ($87.1M) or the new building ($57.7M) concepts. Some expressed the opinion that the existing Fillmore is already "a fantastic venue" to watch concerts and that only necessary repairs should be pursued with the existing funds. At the September 11, 2024, Commission meeting, a discussion was held on the merits of both concepts and preferred path for the project. Vice Mayor Fernandez motioned to reject the idea of tearing down the building and, at the suggestion of Commissioner Bhatt, direct the Administration to pursue a path and a middle ground between renovation and rehabilitation with a cost closer to the GO Bond funds available and sharing cost overruns with Live Nation. The motion was seconded and approved (Vote: 7-0). The broad terms of this agreement were discussed at the September 26, 2025, FERC meeting and feedback was provided by the Committee members. The Committee advanced the item to Commission with a favorable recommendation. Live Nation's current agreement has an end date of December 2030 but will be extended by a time period equal to the closure needed to accommodate the renovation of the facility, which is anticipated to last 18 months. The new agreement would commence at the conclusion of the current agreement plus the extension approximated to be in summer of 2032. ANALYSIS The Administration and Live Nation have collaborated to create a scope of work for the renovation of the Fillmore Theater that accomplishes all the work recommended by the last facilities inspection report and all the upgrades Live Nation requires to bring the venue up to industry standards for production, guest experience, and artist hospitality. Additionally, the project also addresses the need for beautification of the driveway and surrounding greenspace to better fit the aesthetic of a newly rejuvenated campus. The proposed limited renovation is estimated by Live Nation to cost approximately $35,600,000. The 2022 GO Bond for Arts and Culture currently has $29,100,000 in funding for this project. Live Nation has committed to cover the cost of the overage ($6.5M) and manage the delivery of the renovations, in consideration for a new Management Agreement commencing at the expiration of the current Agreement. The Administration and Live Nation have discussed the potential broad terms of such an Agreement, which Live Nation presented to the Finance and Economic Resiliency Committee in the September 26, 2025, meeting. As part of the discussion, the Committee asked that Live Nation consider additional public benefits and the potential use of the theater for film screening. By all accounts Live Nation has been good partner to the City and a capable operator of the venue. Widely regarded as the leading presenter of live events, Live Nation's next closest competitor presented fewer than half as many performances in 2023 (an estimated 22,000 performances, compared to Live Nation's 50,000). 1072 of 3458 FISCAL IMPACT STATEMENT This renovation will utilize $29.1 million allocated through the 2022 General Obligation Bond for Art and Culture. Does this Ordinance require a Business Impact Estimate? Click or tap here to enter text. (FOR ORDINANCES ONLY) If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfi.gov/city-hall/city-clerklmeeting-notices/ FINANCIAL INFORMATION CONCLUSION The Administration recommends that the Mayor and City Commission adopt a resolution accepting the favorable recommendation of the Finance and Economic Resiliency Committee (FERC) to enter into formal negotiations with Live Nation for a new Agreement for the management and operation of the Fillmore Miami Beach at the Jacke Gleason Theater. Such agreement will require a 5/7" vote from Commission. Applicable Area South Beach Is this a "Residents Riaht to Know' item. Is this item related to a G.O. Bond pursuant to City Code Section 2.17? Project? No Yes Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481. includes a principal enaaaed in lobbvina? No If so, specify the name of lobbyist(s) and principal(s): Department Facilities and Fleet Management Sponsor(s) Co-sponsor(s) Condensed Title Accept Rec/Negotiate w/ Live Nation, New Management Agreement for Fillmore Theater. FF 1073 of 3458 Previous Action (For City Clerk Use Only) 1074 of 3458