104-2000 LTC
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CITY-OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\lci.miami-beach,fl.u.
L.T.C. NO.I04 2000
LETTER TO COMMISSION
May 16, 2000
TO: Mayor Neisen O. Kasdin and
Members of the City Commission
FROM: Lawrence A. Levy ~
City Manager
SUBJECT: PARKS AND BEACHES PERMANENT ENDOWMENT
I hereby propose the following to be put in the form of an Ordinance in order to create a permanent
endowment to insure that the City will always have sufficient funds to continuously improve our
parks and beaches.
1. Codify that 10% of all collections of concession revenues for special events and any other
concessions on the beach or in any parks be collected by the City and paid into the general
fund (please note that 25% of the amount collected must be paid to the State of Florida under
our agreements with the State).
2. Require that the promoters of any event held in any park, open space, or beach within the
City limits be required to pay to the City an amount equal to 10% of the gross revenues
(other than concession revenues) that are received by the promoter for such event.
3. Both concession revenues and the gross revenues from ticket sales for the event shall be
subject to audit by the City.
4, The 10% of concession revenues collected by the City shall be paid into the general fund of
the City and may be used for any lawful purpose.
5, The Ordinance should provide that the 10% of gross revenues (other than concession
revenues) shall, at the discretion of the City, be paid either into a special trust fund held by
the City, or paid into any endowment, foundation, or trust that is tax exempt under Section
501(c)(3) of the Internal Revenue Code of 1986, as amended, that is created and has as its
sole purpose the improvement of parks, beaches, and open spaces within the City; and that
such monies may be used for the acquisition, construction, reconstruction, improvement,
--
enhancement, maintenance, expansion or renovation of any beaches, parks or public open
space within the jurisdictional limits of the City of Miami Beach, whether such park, beach,
or open space is owned by the City, leased by it or managed by it.
6.
The Ordinance should also provide that as a pre-condition to turning over any of these 10%
monies to an endowment, trust, or foundation, such entity shall have been authorized to be
created by the Mayor and City Commission of the City for the sole purpose of providing for
parks, beaches, and open spaces within the City, and such entity shall enter into a long-term
agreement with the City that it will only use the endowment to be created for such purposes.
Further, the agreement between said entity and the City should provide that the spending
policy for the endowment be that such entity shall not, in any single fiscal year, expend more
than five percent of the average of the last three years' aggregate assets. The purpose of this
is to ensure that there will be a compounding growth factor in the investments of the
endowment.
7.
The requirement to charge the both 10% amounts may be waived in a particular instance by
a 5/7 vote of the Mayor and City Commission.
I am seeking your input prior to requesting the Office of the City Attorney to draft an Ordinance to
accomplish the foregoing. My intent is nQ1 to commercialize the parks and beaches, but to assure
that in those instances when the City's most valuable resources are used for paid public events, that
the City receives a fair return that will support and improve these facilities.
LAL:ptw
c: Janet Gavarrete, Assistant City Manager
Murray H. Dubbin, City Attorney
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