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LTC 183-2006 Update on Live Nation and AEG Live lD 'lIIIIliiI!ilIF MIAMI BEACH OFFICE OF THE CllY MANAGER LTC # 183-2006 LETTER TO COMMISSION DATE: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez, City Manager ~ _~ July 19, 2006 ()".- D Update on Live Nation and AEG Live TO: FROM: SUBJECT: This Letter to Commission is a follow-up to the discussion on AEG Live and Cirque du Soleil from the City Commission Meeting of July 12, 2006. As you are aware, staff was directed to open discussions with AEG Live regarding their proposal to manage and book the Jackie Gleason Theater as a concert venue. One of AEG Live's main competitors is Live Nation, which was formerly a subsidiary of Clear Channel Communications. Staff was also directed to open discussions with Live Nation in the event Live Nation indicated an interest. Attached you will find a letter from Live Nation advising the City of their interest in the Jackie Gleason in the event that the City prefers an alternative to the Cirque du Solei I proposal. In their letter, Live Nation states that- .Cirque du Soleil continues to have tremendous success in other markets and we feel vel}' strongly about the potential for success at the Jackie Gleason Theatre in Miami Beach. The Cirque du Soleil program would be a great compliment to not only the community but the overall culture of Miami Beach, and has the potential to become an important tourist attraction to the City." The staff and I are following up with Live Nation and will provide you with a future update with regard to any proposal that they may have. Staff last communicated by telephone with Mr. Larry Vallon of AEG Live on Monday of this week. Mr. Vallon indicated to staff that AEG Live was in the process of putting together its formal proposal and that this would be delivered to the City in the near future. Staff advised Mr. Vallon that time was of the essence and that the expectation was to have a finalized, negotiated proposal by the end of August. a G'\ Please let me know if you have any questions with regard to AEG Live or Live Nation. c:: >J I'r', ., 1..0 """(j Attachment JMG/TH C: Hilda M. Fernandez, Assistant City Manager Tim Hemstreet, Assistant City Manager "\J '"^' rn (-:J -':I CI t'n F:\cmgr\$ALLIHEMSTREEruMGILTe - Live Nation and AEG 07192006.doc LlvE nRTIOn Tel. (310) t7M11l Fo. (310) 117-7017 July 12, 2006 Michael Aller Tourism and Convention Director/Chief of Protocol City of Miami Beach 1700 Convention Canter Drive Miami Beach, FL 33139 Mr. Michael Aller, It was a pleasure speaking with you today. Your reputation as "Mr. Miami Beach" precedes you as a staple and icon in the Miami Beach community. As we discussed, ~ is assuredly in the best interest to provide the greatest entertainment experience for not only vls~onlto Miami Beach but also the residents of your great city. We feel the brand of Cirque Du Solell provides you ~h the ability to harness that great experience. Cirque Du SoIell continues to have tremendous success in other marKel8 and _ feel very strongly about the potential for success at the Jackie Glea80n Theatre In Miami Beach. The eirque Du Soleil program would be a great compliment to not only the community but the overall cutture of Miami Beach, and hes the potential to become an Important tourist attraction to the city. We would appreciate the opportunity to dlscu88 w~h you further the benefits of providing an Important program like Cirque Du Soleil to your venue. However, if the eity feels that the direction of the venue is leaning more to providing an environment for multiple arti818, we would like to discuss with you how we have been successful in owning, operating and managing venues in this manner. I look forward to our continued communication regarding the future plana for the Jackie Gleason Theatre and I appreciate your lime. 7JJCJJ& Ned Collatt Executive Vice President Venues _Civlc_r~ a.-tJ _ CA 10210 L.IVenRTlon.com