LTC 175-2006 Cirque Du Soleil - Las Vegas, NV July 13 - 16, 2006
e MIAMI BEACH
OFFICE OF THE CITY MANAGER
LTC # 175-2006
LETTER TO COMMISSION
DATE:
Mayor David Dermer and Members of the City Commission
Jorge M. Gonzalez. City Manager ~~
July 3. 2006 0
CIRQUE DU SOLEIL - Las Vegas, NV July 13 -16,2006
TO:
FROM:
SUBJECT:
As you are aware, the City Administration has been negotiating a potential transaction with
Cirque du Soleil ("CDS") that would locate a CDS show in the Jackie Gleason Theater of the
Performing Arts on a permanent basis. This is a substantial and noteworthy opportunity for
Miami Beach, and one that most likely will involve a significant City financial investment and
a corresponding significant financial return on that investment.
The Administration, along with Commission liaison Commissioner Simon Cruz, has
performed two due diligence and fact finding trips related to this proposal (Montreal,
Canada, and Las Vegas, Nevada). The Mayor also participated in a due diligence and fact
finding exercise with CDS during his recent trip to Las Vegas.
Traditionally, the Administration performs due diligence for potential business issues on
behalf of and at the request of the City Commission. However, in certain instances, it may
be appropriate for the Commission to participate directly in some fact finding and due
diligence exercises. Based on the significance of the potential financial investment and
return on this transaction, I have arranged with CDS for a fact-finding trip for the City
Commission for the dates July 13th through 16th, 2006.
The intent of the trip is to provide you with first-hand knowledge of CDS' operations, venues,
and corporate philosophies. Having participated in a similar trip earlier this year, I am able to
advise you that the information to be gained is invaluable and almost certainly impossible to
convey fully in either a written or spoken format. The trip is intense but will provide you with
a good understanding of the intricacies and complexity of this business and potential
Development Agreement.
To this end, I am proposing that the Commissioners who have not had a chance to see CDS
performances first hand to see some of their Las Vegas productions and participate in in-
depth, walk-throughs of their facilities. CDS has confirmed that they will have personnel
available July 13 through 16, 2006 to facilitate this fact-finding trip. Our current, proposed
plan would be to leave Miami on July 13th and return on July 16th. Each day is anticipated to
include one to two theater facility walk-throughs and one show, which represents at least an
eight (8) hour investment of time. These experiences will provide you with detailed
knowledge of how Cirque du Solei I operates its theaters, the breadth of their operations, and
how they approach this business. Cirque du Solei I has a unique business model that is key
to their success. This trip will expose you to its organizational culture and values. You are
invited to discuss CDS with any of the CDS representatives present. However, please keep
in mind that under Florida law, you are precluded from discussing the issue between
Commissioners. Hilda Fernandez and I will accompany you to facilitate this trip and to
provide insights to any questions that may arise.
LTC - CIRQUE DU SOLEIL - Las Vegas, NV July 13-16, 2006
July 3, 2006
Page 2 of2
Ms. Lupita Ramos, in my office, will be coordinating the trip on our behalf and will be
contacting you shortly to determine your interest in attending and in formalizing the trip and
daily schedules.
Please feel free to contact Ms. Ramos, Assistant City Managers Hilda Fernandez, Tim
Hemstreet, or myself should you have any questions or concerns about this issue.
C: Jose Smith, City Attorney
Hilda Fernandez, Assistant City Manager
Robert Middaugh, Assistant City Manager
Tim Hemstreet, Assistant City Manager
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