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HomeMy WebLinkAbout2006-26377 Reso RESOLUTION NO. 2006-26377 RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER 10 PROCEED WITH NEGOTIATIONS WITH LIVE NATION FOR THE OPERATION AND MANAGEMENT OF THE JACKIE GLEASON THEATER OF THE PERFORMING ARTS; SAID NEGOTIATIONS TO BE SUBSTANTIALLY IN ACCORDANCE WITH THAT CERTAIN OFFERlTERM SHEET SUBMITTED BY LIVE NATION IN ACCORDANCE WITH THE GUIDELINES ESTABLISHED BY THE MAYOR AND CITY COMMISSION PURSUANT TO RESOLUTION NO. 2006-26320; PROVIDING FURTHER THAT THE AFORESTATED AUTHORIZATION TO NEGOTIATE SHALL ALSO BE SUBJECT TO AND CONTINGENT UPON SUCH OTHER ADDITIONAL TERMS AND CONDITIONS, AS FURTHER SET FORTH IN THIS RESOLUTION, AND AS THE MAYOR AND CITY COMMISSION HAVE DEEMED NECESSARY AND IN THE BEST INTEREST OF THE CITY OF MIAMI BEACH; AND, UPON COMPLETION OF SUCESSFUL NEGOTIATIONS, REQUIRING THE CITY MANAGER TO BRING THE FINAL AGREEMENT(S) BACK TO THE CITY COMMISSION FOR FINAL CONSIDERATION AND APPROVAL; PROVIDED FURTHER, THAT IN THE EVENT THE ADMINISTRATI'ON IS UNSUCCESSFUL IN NEGOTIATING AN AGREEMENT(S) WITH LIVE NATION, AUTHORIZING THE CITY MANAGER TO TERMINATE NEGOTIATIONS, AND PROCEED TO NEGOTIATE WITH THE FIRM OF AEG LIVE. WHEREAS, at its meeting on July 27, 2005, the City Commission referred a discussion on a proposed development agreement and long term lease between the City and Cirque du Soleil (CDS) to operate the Jackie Gleason Theater of the Performing Arts, as a permanent venue for a CDS show, to the Finance and Citywide Projects Committee; and WHEREAS, negotiations with CDS commenced shortly after the September 1, 2005 Finance and Citywide Projects Committee Meeting, and have been ongoing for the past year; and WHEREAS, at the July 12, 2006, City Commission meeting, the City Commission directed the Administration to solicit proposals from two (2) other firms, AEG Live and Live Nation, which (in addition to CDS) had also expressed interest in initiating discussions with the City, as possible alternatives for the future use and operation of the Jackie Gleason Theater; and WHEREAS, at its meeting of August 17, 2006, the Finance and Citywide Projects Committee discussed a process and proposed guidelines for reviewing the aforestated proposals for the operation of the Jackie Gleason Theater; and WHEREAS, the City Manager reported that, as discussions between the City Administration and CDS had been ongoing for nearly a year, and the parties are close to finalizing a "best and final proposal", what was specifically required was a process and guidelines for submission that would also include submittal of the expected proposals from AEG Live and Live Nation; accordingly, the Committee approved the Administration's recommendation regarding said process and guidelines; and WHEREAS, on September 6, 2006, pursuant to Resolution No. 2006-26320, the Mayor and City Commission approved the subject process and guidelines (including the approval of a "modified" Cone of Silence), as set forth in the attached Exhibit "A"; and WHEREAS, in accordance with the proposed process/guidelines, initial proposals and Term Sheets were submitted to the City Manager by the three proposers on August 31, 2006, and completed "Best and Final" proposals and Term Sheets were submitted to the City Manager by September 29, 2006; and WHEREAS, on October 16, 2006, a public meeting was held at the Jackie Gleason Theater at which time the City Manager presented a summary of the substantive points of the three (3) offers submitted respectively, by 1) CDS; 2) AEG Live; and 3) Live Nation, as well as obtaining input from the public as to sentiments regarding the Jackie Gleason Theater's potential future use and operator; and WHEREAS, a Special City Commission meeting was held on October 18, 2006, at which time the Mayor and City Commission heard presentations by 1) AEG Live and 2) Live Nation; prior the commencement of the meeting, CDS voluntarily withdrew its proposal from consideration; and WHEREAS, at the conclusion of the aforestated parties' respective presentations, the Mayor and City Commission heard additional public comment; and WHEREAS, having heard and considered the 1) presentation and recommendations by the City Administration; 2) the respective presentations by AEG Live and Live Nation; and 3) (in addition to the public meeting on October 16, 2006) further public comment, the Mayor and City Commission authorized the City Administration to proceed with negotiations with Live Nation and, if such negotiations were unsuccessful, proceed to negotiate with AEG Live; and WHEREAS, in addition to the terms of Live Nation's offer/Term Sheet, the Mayor and City Commission further recommended that the Administration include the following additional terms: 1) request that Live Nation share equally in the payment of any property taxes, if imposed, 2) request a City right to terminate the agreement if economically necessary, 3) request that a provision for Live Nation to assume the 2 management and booking of the Byron and Colony Theaters be added, 4) provide the City reasonable rights in booking the facility for City use, 5) provide scheduling rights for non-profit organizations and community groups, 6) provide a corporate guaranty, 7) initial term should be 10 years, and 8) request that the annual escalator be increased to 3%; and WHEREAS, the final negotiated agreement(s) are subject to final approval by the Mayor and City Commission. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission authorize the City Manager to proceed with negotiations with Live Nation for the operation and management of the Jackie Gleason Theater of the Performing Arts; said negotiations to be substantially in accordance with that certain offer/term sheet submitted by Live Nation in accordance with the guidelines established by the Mayor and City Commission pursuant to Resolution No. 2006-26320; providing further that the aforestated authorization to negotiate shall also be subject to and contingent upon such other additional terms and conditions, as further set forth in this resolution, and as the Mayor and City Commission have deemed necessary and in the best interest of the City of Miami Beach; and, upon completion of successful negotiations, requiring the City Manager to bring the final agreement(s) back to the City Commission for final consideration and approval; provided further, that in the event the Administration is unsuccessful in negotiating an agreement(s) with Live Nation, authorizing the City Manager to terminate negotiations, and proceed to negotiate with the firm of AEG Live. PASSED and ADOPTED this 18th day of October Attest: ~t faAcL CITY CLERK Robert Parcher F:\attoIAGUR\RESOS-ORD\Live Nation Reso (Final 4-24-07).doc 3 lD - MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachR.gov COMMISSION MEMORANDUM FROM: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez, City Managea .r _ ~ October 18, 2006 ~ DISCUSSION AND RESOLUT REGARDING THE FUTURE USE AND OPERATION OF THE JACKIE GLEASON THEATER OF THE PERFORMING ARTS. TO: DATE: SUBJECT: KEY INTENDED OUTCOMES SUPPORTED . Improve community rating of cultural activities . Improve availability and accessibility of major events BACKGROUND One of the classic sayings in the City of Miami Beach is that the City "reinvents itself' on a regular basis. Fittingly, the Jackie Gleason Theater of the Performing Arts has followed the City's lead and has changed its programming and its appearance every 10 or 15 years since it was originally built as the Miami Beach Auditorium. The Miami Beach Auditorium was designed by the architectural firm of Russell T. Pancoast and Associates and construction was completed in 1950. In 1964, Jackie Gleason moved his home and television show to Miami Beach, and the Auditorium became the TV broadcast venue for "The Jackie Gleason Show", which helped propel the tourist industry in Miami Beach in the early and mid 1960s. Gleason opened his show with the famous words "From the sun and fun capital of the world, Miami Beach, it's the Jackie Gleason Show. In the 1950's, long before it was renamed the Jackie Gleason Theater ofthe Performing Arts, the Miami Beach Auditorium was the home of "Golden Era" legends, and sporting events such as boxing. Celebrities such as Frank Sinatra, Henny Youngman, Cab Calloway, Bob Hope, and Jack Benny were regular visitors to the Auditorium and the City, as well as other top-notch entertainment industry stars. As television became fully established in the 1960s, the Auditorium hosted television tapings of "The Dick Clark Show", "The Ed Sullivan Show", and both the Miss Universe and Miss USA pageants. In September of 1964, the City offered Jackie Gleason the use of the Auditorium for his TV show. As part of its first programming and appearance change to a TV studio, the Miami Beach Auditorium accommodated Gleason's TV show as a smash hit for seven (7) years. In the 1970's, the Auditorium became a regular stop for touring Broadway shows. Featured productions included: "Gypsy" (starring Angela Lansbury); "Mack and Mabel" (starring Luci Arnaz); "The Rose Tattoo" (with Maureen Stapleton); Neil Simon's "California Suite"; "Timbuktu" (starring Eartha Kitt); "Shenandoah" (starring Howard Keel); "Carousel" (starring Robert Goulet); "West Side Story" (with Debbie Allen); and many more. The 1970's also marked another series of renovations, again changing the programming and appearance of Discussion and Resolution on the Jackie Gleason Theater October 18, 2006 Page 2 of 19 the Theater, which was renamed during that time to the Miami Beach Theater of the Performing Arts. The tradition of presenting Broadway touring shows continued throughout the 1980's. The Theater hosted productions of: "My Fair Lady" (starring Rex Harrison); "Sugar Babies" (starring Mickey Rooney and Ann Miller); "Jerry's Girls" (starring Carol Channing and Andrea McArdle); and "Cabaret"(starring Joel Grey). The Theater also presented concerts from, among others, Raquel Welch; pianist Vladimir Horowitz; and Liza Minnelli. Ongoing renovations throughout the 1980's vastly improved the Theater experience and its appearance. In 1987, the City of Miami Beach honored the many contributions of Jackie Gleason by renaming the Miami Beach Theater of the Performing Arts to the Jackie Gleason Theater of the Performing Arts, in permanent recognition of 'The Great One". The 1990's continued with presentation of internationally renowned performers to the Jackie Gleason Theater (JGT). Under new management by SMG, these events reflected the changing entertainment market. The Theater hosted salsa star Willy Chirino; Latin singer; EI Puma; Tony Bennett; singer, Nana Mouskouri, and the Latin group, Gypsy Kings, among others. The JGT also established a long-standing relationship with resident artists such as The Miami City Ballet, the Concert Association, Broadway Series, and hosted dance events by Mikhail Baryshnikov and the Alvin Ailey Dance Company. The JGT also continued to book theatrical performances, such as "Rent" and "The Phantom of the Opera"; and "Riverdance". The following lists the major renovations completed at the JGT since its inauguration: . 1950's: originally designed with a seating capacity of 3,500 in an arena plan. . 1960's: the renovation included the reconfiguration of the seating areas from flat floor to a slope floor. . 1970's: at this time the look of the Theatre was completely modified on the exterior to bring it to the Art Deco appearance we see today. Also modified again was the seating area, creating a bigger slope (for better optics). . 1989: the Theatre was upgraded in several areas, including lobby and seating areas. . 2004: the latest renovation included a lobby enhancement, renovation of the restrooms, and upgrades to the fire safety system. CURRENT PROGRAMMING The JGT currently operates as a "Single Night/Limited Run Live Entertainment Rental Facility". This type of facility accepts bookings from live entertainment acts on a "first come, first serve" basis. JGT is operated by SMG through a Management Agreement with the City, where the City pays SMG a pre-determined fee for its services. While SMG also acts as the booking agent for the JGT, neither the City nor SMG assume any risk for the entertainment acts and/or artists that rent the facility to perform. Each entity that rents the JGT handles its own promotion, marketing, revenue/expenses, and related managerial and operational responsibilities. SMG and the City continue to pursue live entertainment acts and artists to perform in the JGT, and are able to attract a variety of programming. SMG books an array of local talent, as well as international traveling performers and companies. The JGT is also available for private functions, as there are several private event rooms that can be used for meetings, catered parties and other social occasions. The Theater is also used for large gatherings such as high school graduations and award presentations. Discussion and Resolution on the Jackie Gleason Theater October 18, 2006 Page 3 of 19 Recent programming has included: . MTV Latin America . Video Music Awards (VMA) . Fox Sports Americas Awards . Billboard Latin Music Awards . Telemundo's "AzlIcar," A Tribute to Celia Cruz . Comedy performances (Chris Rock, Dave Atell, BET Comic View) . International Dance performances It is important to note that the JGT operates in a highly competitive market for a Single Night/Limited Run Live Venue. In addition to the recently opened Carnival Center of the Performing Arts ("PAC"), there are several other competing venues for live entertainment in the local area, including the Seminole Hard Rock Cafe; the Gusman Theater; Dade County Auditorium; American Airlines Arena; Waterfront Theater at the American Airlines Arena; Bank Atlantic Center; the James L. Knight Center/Miami Convention Center Auditorium; and the Frank Sinatra Theater at the Bank Atlantic Center. In the past four years, total rented days, annually, in the JGT have ranged in number from a high of 162 days in 2003, to a projected low of 117 days in 2006. Although the Theater was booked on a regular basis, bookings have been steadily declining, and the JGT has consistently operated at a significant deficit. In 2005, the net operating deficit was $321 ,000. When depreciation and insurance chargebacks are applied to the JGT budget, the 2005 gross operating deficit increases to $1.48 million. The gross operating deficit is consistent over the past few years, with little variance, as it has consistently been just over $1 million annually. In addition, the JGT incurs an annualized average of just over $900,000 (in 2003 dollars) for Capital Renewal and Replacement costs. This cost should be added to the gross operating deficit in order to gain a better picture of the financial status of the current operation. When capital costs are added to the gross operating deficit, the total shortfall of revenues to expenditures in 2005 was approximately $2.4 million. IMPACT OF CARNIVAL CENTER OF THE PERFORMING ARTS (PAC) With its grand opening on October 5, 2006, the Carnival Center of the Performing Arts ("PAC") in downtown Miami creates a cultural, artistic and economic revival for this community. The PAC consists of three state-of-the-art performance facilities, and has a goal to present over 300 performances a year. Its well-publicized first season is scheduled to include ballet, theater, symphonic and other musical presentations. The PAC is also equipped to hold other cultural events, social occasions and business meetings. At 570,000 square feet, this facility already has an advantage over other venues in the area based on accommodation alone. The Miami City Ballet, the Concert Association, and the Broadway Series have migrated to the PAC from the JGT. These three companies accounted for 33% of total revenue and one- third of the available use days of the JGT in 2005. The JGT is currently operating at a deficit, and any further exodus of revenue-producing events and erosion in attendance will result in additional negative impact. Discussion and Resolution on the Jackie Gleason Theater October 18, 2006 Page 4 of 19 OPTIONS FOR THE JACKIE GLEASON THEATER Recognizing the potential future difficulties facing the JGT, options for alternative operational models for the JGT were explored. In a presentation to the City's Finance and Citywide Projects Committee in January 2005, the following options were discussed. 1. Continue as principally a Single Night or Limited Run Live Venue; or 2. Explore movement toward extended run theatrical presentations; 3. Conversion to permanent installation of a theatrical attraction; 4. Conversion to alternate use (meeting space/ballroom/exhibit space). This analysis also included the following advantages and disadvantages to consider regarding the four available options as developed by SMG, the JGT's management company. Continue as principallv a sinQle niQht or limited run rental venue (Live Entertainment) Advantages: . Increased flexibility to accommodate other bookings . More varied menu of presenters and product . No or limited risk to City Disadvantages: . Risk of reduced event activity and increased financial operating deficit to the City Explore movement toward extended run theatrical presentations Advantages: . Maximum utilization impact from single events . Allows for additional single and limited run activity . Approx. similar financial results to current scenario . No or limited risk to City Disadvantages: . Some reduction of flexibility to accommodate short term bookings Conversion to permanent installation of a theatrical attraction (SinQle Purpose Venue) Advantages: . Guaranteed level of event activity . Ability to create a signature visitors attraction . Potential for improved financial results to the City . Limited risk to City Disadvantages: . Inability to provide varied programming · Loss of space to accommodate convention center booking needs Discussion and Resolution on the Jackie Gleason Theater October 18, 2006 Page 5 of 19 Conversion to alternate use (meetinQ space/ballroom/exhibit space) Advantages: . Adaptive Re-use Disadvantages: . Approx. floor area would accommodate less than 20,000 square feet of meeting space in total . Extremely high cost to the City for retrofit for limited usability in return Of these options, the two most viable for the future of the JGT were Option 1 - "Continue as principally a Single Night or Limited Run Live Venue", and Option 3 - "Conversion to permanent installation of a theatrical attraction". Option 1 is an exclusive programming or management agreement with a promoter prepared to provide live entertainment in the JGT with a guaranteed payment to the artist and a guaranteed payment to the City, (Le., the promoter incurs the risk that sufficient tickets will sell to cover its costs). This is a significant deviation from the current Option 1 operating model where the JGT is strictly a rental venue, although the nature of Single Night and Limited Run Live Entertainment is maintained. In July 2005, after receiving a presentation by representatives from CDS regarding a dramatic new concept for the JGT, which included theater, restaurant, and special event amenities, creating a unique destination entertainment complex, the City Commission formally requested that the City Manager explore Option 3 and refine the idea of a permanent Cirque du Solei I ("CDS") show in the JGT. Commissioner Simon Cruz was named the City Commission liaison to the Administration's effort. More specific dialogue between CDS and the City began shortly thereafter, with initial meetings and discussions as to the possibilities of CDS locating a permanent show at the JGT. It was quickly determined that interest existed from both parties, with CDS and its then potential joint venture partners visiting the JGT to perform initial due diligence. This initial effort culminated with a Finance and Citywide Projects Committee Meeting in September 2005, where CDS presented a preliminary concept for a CDS entertainment venue at the JGT, as well as a preliminary proposal. The Finance and Citywide Projects Committee recommended to the City Commission that the Administration continue its negotiating efforts and due diligence with CDS; the Commission concurred. As part of its due diligence efforts, the City hired Convention Sports Leisure ("CSL") to provide an economic impact analysis of a permanent CDS show in Miami Beach. The report indicated that a CDS show could potentially generate $50 million in net new spending annually to the region through increased tourism and local visitors, as well as increased expenditure by each visitor; generate an increase in hotel room nights; create 856 local jobs to satisfy the new demand; and increase earnings in the local economy. The report indicates that 70%, or almost $40 million, would inure directly to businesses on Miami Beach. The project will also create significant incremental tax revenues. The report confirmed that the market demographics of the South Florida/Miami area continue to be consistent with tourism as a leading local industry. Negotiation and due diligence efforts with CDS continued over the course of the following months, with fact-finding trips to Montreal and Las Vegas to better understand the nature of the CDS business model, the capital requirements of a CDS show, as well as the entertainment industry in general. Following further discussions between the parties, by July 2006, a well developed preliminary term sheet had been negotiated. Discussion and Resolution on the Jackie Gleason Theater October 18, 2006 Page 6 of 19 Notwithstanding the ongoing negotiations with CDS, in July 2006, the City Commission discussed a request made by AEG Live to be considered as a potential option for the future use and operation of the JGT. At that meeting the Commission directed the Administration to pursue parallel negotiations with not only AEG Live, but also Live Nation - which are the two largest concert promoters and venue managers in the industry. Staff and I held a series of discussions with representatives of AEG Live and Live Nation and it was quickly determined that both of these companies were viable options for the City to consider. The Administration reported its findings to the Finance and Citywide Projects Committee in August 2006. The Administration deemed that all three companies were viable options for the JGT and presented preliminary guidelines for submission and receipt ofterm sheet offers to the City. The Committee recommended that the guidelines be presented to the City Commission and that a potential date to select one of these three companies to operate the JGT (specifically, to continue to negotiate with the selected company toward a final agreement) be set for October 18, 2006. On September 6, 2006, the City Commission adopted Resolution No. 2006-26320, which formally established the process and guidelines referred to above. This same action also required that "Best and Final" term sheet offers be provided to the City Manager by September 29, 2006; that at least one community meeting be scheduled to present the options and receive feedback; and set October 18th as a Special City Commission Meeting to consider the future options. The first community meeting to discuss the JGT was held in conjunction with the Cultural Arts Neighborhood District Overly Committee meeting of October 12, 2006, and a Community Meeting is scheduled for Monday, October 16, 2006 in the JGT at 5 PM. THE COMPANIES AEG LIVE The Anschutz Corporation The Anschutz Corporation was founded by Philip Anschutz, ranked as one of the richest people in the United States. His many companies are active in industries that include oil and gas, real estate, movies, sports, railroads, telecommunications, agriculture, live entertainment, art, and newspapers. Anschutz Entertainment Group The Anschutz Entertainment Group is a wholly-owned subsidiary of The Anschutz Corporation, a privately-held company which also owns controlling or significant equity interests in AEG Live; Network LIVE; Anschutz Film Group; Walden Media; Bristol Bay Productions; AEG-TV; AEG Teleworks; Creative Battery; Clarity Media Group; and Regal Entertainment Group. The Anschutz Entertainment Group was started as Anschutz Properties Co. in 1995 by Philip Anschutz, with the purchase of the bankrupt Los Angeles Kings Hockey team. Two years after buying the team, Anschutz and his real estate partner won approval from Los Angeles to build the Staples Center, which is the home to five professional sports teams. AEG now owns or controls a collection of companies that include multiple sporting and event venues, professional sports franchises, AEG Merchandizing (a multi-faceted merchandising company), and AEG Creative, a full-service marketing and advertising agency. Sports franchises owned by AEG include the Los Angeles Kings (NHL); Los Angeles Riptide (MLL); Manchester Monarchs (AHL); Reading Royals (ECHL); Chicago Fire; DC United; Houston Dynamo; Los Angeles Galaxy and (New York/New Jersey); two hockey franchises Discussion and Resolution on the Jackie Gleason Theater October 18, 2006 Page 7 of 19 operated in Europe; the Hammarby (Sweden) Futbol Club; and management of shares ofthe Los Angeles Lakers (NBA) and Los Angeles Sparks (WNBA). AEG Live AEG Live is the live entertainment division of the Anschutz Entertainment Group. AEG Live is the second largest concert promotion and touring company in the United States, and throughout the world owns or operates arenas, theaters, and other companies. AEG Live owns, in whole or in part, sports franchises in the United States and Europe. AEG Live employs over 3,000 people, and had over $500 million in ticket sales and presented over 1,500 events in 2005. AEG Live has a number of subsidiaries registered in the United States, including eight (8) registered in Delaware, six (6) registered in California, two (2) registered in each New York and Louisiana, and one (1) each registered in Illinois, Nevada, and MissourL Manaaement AEG's team includes AEG Live President & CEO Randy Phillips; AEG Live Senior Vice President, National Booking, Larry Vallon; AEG Live Chief Operating Officer Thomas Miserendino; Concerts West President & Co-CEO John Meglen; and AEG Live Senior Vice President & General Counsel Shawn Trell. AEG also contains the Ken Ehrlich Productions Division, with experience in the production of the Grammy Awards, the MTV Movie Awards, and VH1 Honors. Venues In addition to the Staples Center, venues owned or operated by AEG include the Anaheim Arena; Nokia Theatres in New York City and Grand Prairie, Texas; The Forum in Inglewood, California; Home Depot Center; Toyota Sports Center in EI Segundo, California; and Toyota Park in Chicago. AEG Live is also part of a partnership with Caesar's Entertainment for the Colosseum at Caesar's Palace in Las Vegas, which features Celine Dion's "A New Day." AEG agreed to a five-year deal for the Anaheim Arena in December 2005, to bring 50 concerts, family shows and sporting events annually to the 7,500 seat venue, targeting bands that are too big to play clubs but not popular enough to fill the nearby 18,000 seat Arrowhead Pond. The Nokia Theatre Times Square was opened by AEG in New York City in 2005 as a midsize theater devoted to rock and comedy. With seating for up to 2,100, it filled the gap between the large theaters such as Radio City Music Hall and smaller downtown halls and clubs (according to "The New York Times"). As an example of the type of disputes that sometimes arise in this competitive business, control of the Forum in Inglewood, CA, is the subject of a lawsuit between Forum Enterprises Inc. and AEG subsidiary, L.A. Arena Co., alleging that AEG has steered concerts and other events to other AEG controlled venues. Proiects AEG is involved in the development of L.A. Live, a sports and entertainment complex located adjacent to the Staples Center, which will include two live performance venues, commercial establishments, residences, and hotels. In England, AEG owns the Manchester Evening News Arena and the Millennium Dome, which is being redeveloped into "02", a $1 billion- plus entertainment complex on the Thames River, which will include an arena and casino. Discussion and Resolution on the Jackie Gleason Theater October 18, 2006 Page 8 of 19 AEG Live operates Network LIVE, which is a provider of live digital entertainment, offering access to artists via broadband, TV, radio, satellite radio, satellite television, and other electronic means. Network LIVE is a partnership between AEG Live, America Online, and XM Satellite Radio. This venture will deliver live performances to fans from AEG owned theaters. Artists AEG has presented performers such as Jimmy Buffett; the Black Crowes; Andrea Bocelli; Beck; the Dixie Chicks; Duran Duran; Madonna; Mana; John Mayer; Bon Jovi; Luis Miguel; Willie Nelson; Bob Dylan; Prince; George Strait; James Taylor; U2; Usher; Kanye West; Fleetwood Mac; Green Day; Elton John; Celine Dion; Tony Bennett; and Jerry Seinfeld. Additionally, AEG has presented national and international tours for artists such as Alanis Morissette; Barry Manilow; Bon Jovi; Fleetwood Mac; Gretchen Wilson; Justin Timberlake; Nickelback; the Eagles; Alicia Keys; Britney Spears; Christina Aguilera; Neil Diamond; Paul McCartney; Prince; Rod Stewart; and Usher. The Administration has reviewed events scheduled between August and December 2006 in various venues operated by AEG Live, which indicates the following breakdown of genres, gender and age demographics of the performers' audiences. The venues that were researched were the Nokia Theatre Times Square (2,100 capacity) and the Nokia Theatre Grand Prairie, located in Grand Prairie, Texas (6,350 capacity). Pop Alternative Rock Hard Rock or Metal Classic Rock Lecture 13.64% 11.36% 9.09% 6.82% 6.82% Blues Punk Reggae Electronica or Dance Comedy 6.82% 4.55% 4.55% 4.55% 4.55% Children-oriented; Christian Rock; Country; Irish Rock; Jazz; Latin, Oldies; Rock; Southern Rock; Television and Theater events make up the balance of event types. The primary age ranges are: 2-7 2.27% 25-35 2.27% 8-14 2.27% 25-50 36.36% 12-54 2.27% 25-54 4.55% 14-35 27.27% 35-50 2.27% 14+ 2.27% 35+ 11.36% 21-40 2.27% 45+ 2.27% LIVE NATION Live Nation is a publicly-traded company that operates live venues and promotes and produces live entertainment events. Live Nation evolved as the result of a series of acquisitions of entertainment businesses and assets, and a later spin-off of Clear Channel Communications. It is considered the world's largest producer of live music. Clear Channel Communications Clear Channel is a San Antonio-based company which grew from about 40 radio stations in 1996, to more than 1,200 today, and is also heavily involved in the billboard and television businesses. Clear Channel is a public company, which began the concert promotion business in 2000, through the acquisition of SFX Entertainment, Inc., which at the time was one of the world's largest concert promoters. Following the acquisition, SFX changed its name to Clear Channel Entertainment. Media reports indicated that Clear Channel intended to build a multimedia advertising conglomerate through which sponsors and advertisers Discussion and Resolution on the Jackie Gleason Theater October 18, 2006 Page 9 of 19 could "one-stop-shop" for multiple advertising outlets, by using thousands of billboards and radio stations to cross-promote their concerts. Adshel, the company that provides the directories on Lincoln Road and the new bus shelters, is a division of Clear Channel. Live Nation In December 2005, the live entertainment and sports representation segment (Clear Channel Entertainment) of the business was separated as Live Nation, a separate publicly traded company. According to the Wall Street Journal, industry analysts agreed that this was a good move for Clear Channel, as this segment of the business was the most volatile and the least profitable segment of their business. Clear Channel principals remain among Live Nation's directors. The 2005 SEC filing for the creation of Live Nation also included "avoiding regulatory and legal pitfalls" as some of the reasons for the split from Clear Channel. There was also growing concern regarding the size and reach of such a large entertainment / advertising conglomerate. Live Nation is the largest concert promoter in the United States, and principally acts in the following capacities, performing one, two, or all in connection with the events and tours that they promote: Venue Operation; Sponsorships and Advertising; and Promotion and Production. Their operating segments include Global Music, which involves the promotion and production of live music performances and tours; Global Theater, which is principally the presentation of touring and other theatrical performances; and other live entertainment events. In 2005, the company had $1.3 billion in concert box-office sales, and promoted, produced, or hosted over 29,500 events. These events included music concerts, theatrical performances, motorsports, and other types of events. Live Nation owns or operates 153 venues throughout North America and Europe. These venues are amphitheaters, theaters, clubs, arenas, and festival sites. Live Nation, Inc. is registered in Delaware as a general business corporation, and has subsidiaries in 25 other states and the District of Columbia to carry out various activities associated with live concert, event and theater productions. Recent Developments Live Nation recently announced an agreement to acquire House of Blues, which will add 18 concert halls to their portfolio. According to recent media reports, Live Nation is battling Ticketmaster for control over the cost of show admissions. Ticketmaster has exclusive rights, through 2008, to sell tickets to most of Live Nation's events. According to the same media reports, while Live Nation has not made a decision, it could rely on its in-house ticketing system, which has been portrayed as the third-largest in America. Live Nation stated that the acquisition of House of Blues would broaden its presence in the midsize concert category and fill geographical gaps in its amphitheater network. In addition to the acquisition of House of Blues, in July 2006, "The Wall Street Journal" reported that Live Nation was acquiring a majority stake in Musictoday LLC, a company that runs fan clubs, web sites, and online stores. In August, Live Nation sold three divisions of its SFX Sports Group to Blue Equity, LLC. Live Nation sold the tennis representation, sports media & live sporting events platforms. In September, Live Nation sold its SFX Baseball division President and Chief Executive Officer Michael Rapino has indicated that the company's strategy is to improve sales per fan with fan clubs, parking, food and beverage receipts, merchandising, live recordings, and digital access to live events. He further stated that Live Nation's goal is to be the leading live music destination on-line, and to increase its presence Discussion and Resolution on the Jackie Gleason Theater October 18, 2006 Page 10 of 19 in the largest and most profitable markets in the United States and internationally. Live Nation has recently reorganized its business into (1) Events; (2) Venues and Sponsorship; and (3) Digital Distribution. Management Michael Rapino, CEO; Bruce Eskowitz, President and CEO - Global Venues and Alliances; Faisel Durrani, President of Marketing; David Ian, Chairman Global Theatrical; Alan Ridgeway, CFO; and Michael Rowles, Executive Vice President and General Counsel. Venues Live Nation's venue list includes amphitheaters, theaters, clubs, arenas, and festival sites. These include the Wilturn LG in Los Angeles; Sound Advice Amphitheater in Palm Beach; the Roxy Theatre and the Tabernacle in Atlanta; the Fillmore Auditorium in Denver; the State Theatre in Detroit; the Tower Theatre in Philadelphia; the Fillmore in San Francisco; the Ford Amphitheater in Tampa; the Wilbur Theatre in Boston; and the Empire Theatre in San Antonio. Artists Shows produced by Live Nation in 2006 included Pearl Jam; Red Hot Chili Peppers; Ray Davies; Soulfly; The Pretenders; UB40; Beck; Hank Williams III; Ice Cube; Indigo Girls; Paul Oakenfold; Pink; Sonic Youth; the Doobie Brothers; Willie Nelson; Ricky Martin; Rob Zombie, Sevendust; Staind; Kathy Griffin; and Van Morrison. The Administration has reviewed events scheduled between August and December 2006 in various venues operated by Live Nation, which indicates the following breakdown of genres, gender and age demographics of the performers' audiences. The venues that were researched were the Wiltern LG in Los Angeles (2,300 capacity); the State Theatre in Detroit (2,900 capacity); the Verizon Theatre in Houston (3,000 capacity); the Fillmore in San Francisco (1,250 capacity); and the Tabernacle in Atlanta (2,500 capacity). Pop Alternative Rock Hard Rock or Metal Comedy Funk R&B or Soul Punk Hip Hop Irish Rock 16.33% 13.61% 10.88% 6.12% 4.76% 4.76% 4.76% 4.76% Jazz Blues Classic Rock Folk Latin Rock Reggae Electronica or Dance 4.08% 4.08% 4.08% 3.40% 3.40% 3.40% 3.40% 3.40% Country; Mexican; Southern Rock; and Sports and Film events make up the balance of event types. The primary age ranges are: 14-35 21-35 21-40 29.25% 3.40% 9.52% 25-50 35-50 35+ 42.18% 9.52% 5.44% CIRQUE DU SOLEIL Cirque du Soleil is a privately held company founded in 1984 and based in Montreal, Canada, with 16 subsidiaries located in the United States. The company was founded by two former street performers, Guy Laliberte and Daniel Gauthier in 1984, in response to an invitation by the Quebec Government for the 450th anniversary celebration of the arrival of French Discussion and Resolution on the Jackie Gleason Theater October 18, 2006 Page 11 of 19 explorer Jacques Cartier to Canada. Cirque traveled around Quebec offering a show that mixed the arts of the circus and of the street, with costumes and original music. After performing at venues throughout Quebec, Cirque du Solei I toured Ontario and appeared at Expo 86 in Vancouver. The 1990's saw an increase in the troupe's size, scope and success. By 2000, Cirque du Soleil had permanent shows in Las Vegas and Orlando, and offices in Amsterdam, Singapore, Montreal and Las Vegas, and a total of seven shows playing simultaneously in North America, Europe and Asia. Since beginning in 1984, Cirque's touring shows have been produced in over 100 cities on four continents that have been attended by over 50 million spectators. Cirque du Solei I currently employs approximately 3,000 people around the world, including more than 600 in Las Vegas. According to news reports and statements filed by MGM Mirage, the Cirque du Solei I shows at MGM casinos drive a significant amount of consumer spending. MGM Mirage reported that non-gaming revenue was up in 2005, and that Cirque du Soleil's "KA" show at the MGM Grand led to a 35% increase in same-store entertainment revenues. Media reports indicate that Cirque du Soleil generates approximately $300 million per year for MGM Mirage. Additionally, it appears that in the financial arrangements with MGM Mirage, each partyfunds half of the production cost of each show, with the venue funding the costs of the theater renovations. The box-office proceeds from the shows are split 50/50, according to reports. According to various media reports, Cirque du Soleil performances have been described as the modern circus, with emphasis on a storyline, and the use of humans as the performers, rather than animals. The performances combine colorful costumes, live music, and elements that include aerial acrobatics, circus, trapeze, and ballet. Cirque du Solei! recruits artists from all over the world, and is regarded as one of the world's best circus employers, with higher than normal pay and benefits. Manaoement Guy Laliberte is currently the Chief Executive Officer. Other executives are: Chief Financial Officer Robert Blain; Chief Operating Officer for New Ventures Daniel Lamarre; Chief Operating Officer for Creative Content Lyn Heward; Senior Vice President for Marketing Mario D'Amico; and Senior Vice President for Public Affairs Gaetan Morency. Venues Cirque du Soleil has six permanent shows in the United States, in venues owned by MGM Mirage and the Walt Disney Company: "KA" at the MGM Mirage in Las Vegas; "Zumanity" at New York New York in Las Vegas; "Mystere" at Treasure Island in Las Vegas; "0" at Bellagio in Las Vegas; "LOVE" at The Mirage in Las Vegas; and "La Nouba" at Walt Disney World, Orlando. Proiects Cirque du Soleil is developing a permanent show for Tokyo Disney, which will be directed by film director Francois Girard. CDS has an exclusive arrangement with MGM Mirage, which owns nine casinos on the Las Vegas Strip and is building the $7 billion Project CityCenter complex. Cirque du Solei I is also working on potential projects in Macau and Europe. The proposed CDS show in Miami Beach is proposed as "a cabaret-style show inspired by the best traditions of Brazilian carnival, tailored to the specific sensibilities, values and standards of the Miami Beach community". The show includes the traditional CDS blend of Discussion and Resolution on the Jackie Gleason Theater October 18, 2006 Page 12 of 19 acrobatic circus arts, dance, original music, comedy, and choreography blended with special effects on a custom stage. The show is expected to include partial nudity with food and beverage opportunities (including alcohol) within the theater area, which will require certain ordinance amendments to accommodate the proposed hours of the two daily shows. The average CDS consumer is as follows: . 37% are under age 34 . 66% are under age 44 . 86% earn more than $50,000 . 50% earn more than $100,000 . Average attendee spends $216 at a show . 22% take more than 5 airline trips per year for pleasure . 70% are likely to stay at a high-end hotel when traveling . 29% stayed in 15 nights in a hotel annually for pleasure Trends in the Entertainment Industry The popularity and availability of internet and portable MP3 players have transformed the way artists now promote and market their music. Declining compact disc (CD) sales have driven artists to depend more heavily on touring to generate revenue. Industry trends indicate that fewer artists today are able to attract audiences to fill typical arenas, making smaller, theater- size venues like the Jackie Gleason more attractive. According to interviews of industry insiders conducted by Kroll Associates, Inc., on our behalf, artists are often reluctant to perform in South Florida for only one date/venue. They found, however, that the possibility of a multi-venue visit to Florida would be more appealing for touring artists. For example, show dates in Fort Lauderdale, Orlando and Miami would make an attractive package for artists capable of filling a venue the size of the Jackie Gleason. Another industry trend important to consider is declining ticket sales, offset by higher ticket prices. According to Pollstar, a leading publisher of concert industry data, North American concert revenues increased from $2.5 billion to $3.1 billion from 2003 to 2005, a compounded annual growth rate of approximately 11 %. By contrast, ticket sales for the top 100 tours actually declined by 3.5%. As such, the increased revenues appear to be tied to higher ticket prices, not ticketed attendance. In addition, trade media reports also show that concerts are generating razor-thin profits, resulting in the need by the industry to maximize revenue on merchandise, parking and concessions, as well as other revenue streams. Although a highly competitive industry, it is not uncommon to frequently see competitors partnering in producing shows all over the country. For example, during a recent fact finding trip, staff observed Cirque du Soleil's arena show, "Delirium" - a show that is promoted by Live Nation - preparing to open at the Staples Center in Los Angeles, an AEG-managed venue. Discussion and Resolution on the Jackie Gleason Theater October 18, 2006 Page 13 of 19 Marketina Among the considerations for the future of the JGT are the ancillary, residual benefits resulting from the use of the venue. One particular area where a potential residual benefit exists is in the marketing of the venue, resulting in exposure to the destination. The type of use ofthe facility (single purpose vs. multi-use) significantly impacts the level ofthat residual value. In the case of the single purpose use submitted by CDS, their well-established brand represents considerable value for the City both directly and indirectly. The CDS brand is widely regarded as synonymous with high quality entertainment and the company has earned a reputation for their support of social and arts programs. Indirectly, CDS represents the opportunity for the City to position itself alongside their strong brand. More specifically, however, is the value associated with the marketing efforts of an entertainment company that relies on media impressions to sustain the brand as a means to increase attendance. For example, the launching of any new production, permanent or traveling, results in substantial media "impressions" - media hits - in local, national and international publications. Alongside the benefits associated with immediate publicity for the venue, media outlets provide background information about CDS, typically referring to the company as having permanent shows in Las Vegas and Orlando. The addition of "Miami Beach" as a location of a permanent venue increases the visibility of the Miami Beach brand in all associated marketing efforts. For example, during a two week period associated with the opening of CDS's newest show Love (June 26 - July 12, 2006), there were more than 150 print media impressions compiled, exclusive of the TV, Radio and internet impressions that resulted. The opening of touring shows, likewise, results in re-establishing the CDS brand in all local medium. CDS also maintains an internet database of over 1,000,000 international users ("Club" members) that serves as a vehicle to publicize their programming. While quantifying the value is difficult, as a tourist-based economy, there is no doubt that the association with the CDS brand provides a value-added for the destination, beyond the actual marketing dollars that CDS commits to promote any particular venue/show. Marketing efforts by both AEG Live and Live Nation also rely heavily on the internet/online promotions, with significant impressions. However, the primary focus of their efforts is typically closely tied to the performance that has been booked, and not the venue nor the venue management company (e.g. AEG/Live Nation). Typical marketing models allocate a percentage of anticipated show production costs/revenues to market the performance, focusing on media likely to reach the targeted demographic groups for the performance. In many occasions, the destination will benefit with the association to a specific performer that may be booked for the venue. However, as typical engagements are only one-two nights, the indirect value of this association may be limited. AEG Live proposes initial funding to assist in re-establishing the JGT as a local performance venue of choice for potential users (booking agents, artist managers, production manager, special events planners), as well as potential event patrons. Financial Comparisons The financial summaries, included as Attachment 1, are intended to provide a snapshot of the projected results for each offer for the first ten years of the project. This approach is not intended to reflect the complete offer, however; it is a way of presenting the information reduced to the basic common elements. Discussion and Resolution on the Jackie Gleason Theater October 18, 2006 Page 14 of 19 Each company takes a different approach in structuring their financial packages. For example, AEG Live offers a lower guaranteed base rent but includes a more generous share of other revenues (Le., naming rights, etc.); while Live Nation's approach is to provide for a much larger guaranteed base but less "other" revenue options. Finally, the CDS rent structure is based on a percentage of "gross" revenue from each of their revenue generating cost centers, thereby resulting in a "first dollar to the City concept". The summaries include estimates of revenues to be received by the City for Year One (or a portion thereof, as provided in the offer from AEG Live) as well as for Year Six and Year Ten. Additionally, we have provided the estimated aggregate revenues for the first ten year period. These summaries include revenues proposed as base rent, incentive rents, facility fees, naming rights and other compensation such as Ticketmaster rebates. Highlights of each offer are as follows: . The AEG Live offer includes a guarantee of a $250,000 which escalates by CPI beginning in 2008. Additionally, the offer includes a facility fee, and 50% of the Ticketmaster and naming rights revenue. . In the Live Nation offer, base rent is fixed at $1,000,000 for the first year, escalates 2% a year, and is guaranteed for the term of the contract. Live Nation also includes an offer of 25% of naming rights; however, no estimate was included. In an effort to put these proposals on a comparative basis we have estimated these revenues based on the amount included in the AEG Live offer for naming rights. . The base rent from Cirque du Solei! is based on a percentage of gross show ticket sales as well as on gross revenues from the VIP area, theater food and beverage, the theme restaurant and lounge, retail merchandise boutique and special events. Additionally, the CDS offer also includes a facility fee. In Year Six the rent from both the percentage of gross on show ticket sales and the facility fee increase and the City receives a greater percentage. Based on the direct revenues aggregated after ten years, the CDS proposal net ofthe City's investment yields a return approximately two times greater than either of the other offers. We have also included an estimate of the Ten Year Total Value of direct revenues. These Total Value estimates also include the estimated value of real estate taxes, community benefits, incremental parking revenues, private capital investment into City facilities and capital maintenance costs to the City. · The estimate for the Ten Year Total Value includes real estate taxes for Cirque du Soleil estimated at $1.5 million per year. The theater is currently exempt from real estate taxes; however, if it should become taxable the City would be responsible for the taxes under the proposals from both AEG Live and Live Nation. · Incremental parking revenues were estimated using the proposed number of annual shows and was based on a factor of 2.5 people per vehicle for Cirque du Solei! shows and 3.5 people per vehicle for both AEG Live and Live Nation shows at the City's event parking rate of $10 per vehicle. · Community benefits were estimated based on the stated values included in each company's offer. If values for certain benefits were not stated a reasonable estimate Discussion and Resolution on the Jackie Gleason Theater October 18, 2006 Page 15 of 19 of value was used. . Private investment is based on the stated plans for investment in the project for each company. . Maintenance Costs represent an estimate of the capital maintenance and replacement cost over ten years for the theater. Live Nation proposes to take responsibility for these costs. However, neither Cirque du Solei! nor AEG Live propose to do so. Therefore the estimate of the City's continuing capital maintenance costs are deducted from the Ten Year Total Value for each company's proposal. . The Ten Year Total Value estimates yield $15,220,000 from AEG Live, $24,000,000 from Live Nation and $172,100,000 from Cirque du Soleil. The City is in an extremely advantageous position to have the opportunity to choose amongst three of the largest and most successful international entertainment producers and venue managers operating today. Economic Impact As part of its due diligence efforts, the City hired Convention Sports Leisure ("CSL") to provide an economic impact analysis of a permanent CDS show in Miami Beach. The economic impact analysis identified four primary consumer markets that make up the base of attendees of performances at the Jackie Gleason Theater: 1. Customers that are visiting the Miami area specifically to attend the performance; 2. Customers that are visiting the area for other reasons but decide to extend their stay to attend the performance; 3. Customers that are visiting the Miami area for other reasons and simply add the performance to their existing itinerary; 4. Customers that reside within driving distance of the theater. (Note: "Net new" spending is spending that would not have occurred without the existence of a specific activity. "Displaced" spending is spending that would have occurred regardless of the introduction of a specific activity. Given the regional nature ofthe South Florida economy, displaced spending from a specific activity may still have a positive impact at the local level, as the money is shifted from other regional opportunities. However, economic dynamics tend to balance this displacement over time as other regional satisfiers enter the market). In scenarios 1 and 2 above 100 percent of the spending that occurs on the visitor days attributed to the attendance are considered to be "net new" to the area. 1. For the attendees in scenarios, all spending (100%) by these customers is "net new;" 2. For the attendees in scenario 2, the spending that occurs during the extended part of the stay (assumed to be one night and one day) is "net new;" 3. For the attendees in scenario 3, only a portion of performance-related expenditures can be considered "net new." In the case of CDS, CSL has estimated that 50% ofthe money spent on performance-direct items (tickets, concessions and merchandise), is "net new," while spending on other identified categories (hotel, restaurant, other entertainment, shopping, transportation) would have taken place with or without the existence of the performance. Discussion and Resolution on the Jackie Gleason Theater October 18, 2006 Page 16 of 19 4. For the attendees in scenario 4, only a small amount of performance-related spending is considered "net new", and the majority of their spending is most likely in the form of displaced revenue from other regional entertainment opportunities. This is because the local population generally has a finite amount of money for items such as entertainment. The "net new" portion of this group's spending is estimated at 10%, reflecting the fact that some portion of area resident may have left the region for entertainment purposes. CSL utilized spending information provided by the Greater Miami Convention and Visitors Bureau, which indicated the following for the potential CDS attendee: . Hotel spending was estimated at $78 per day per person (Scenarios 1 & 2); . Spending on meals was estimated at $57 per day per person (Scenario 4 was estimated at $43); . Transportation expenses were estimated at $22 per day per person (Scenario 4 was estimated at $15); . Shopping Expenses were estimated at $52 per person per day. Spending for drive-in attendees (Scenario 4) was assumed to approximate $15 per person per day based on adjustments to overnight visitor spending to reflect lower propensity to shop; . Entertainment (other than performance-related) was estimated at $23 per person per day. In their economic impact analysis, CSL found that 10% of the attendees of a "single-purpose" CDS show would be classified as Scenario 1 or 2, 65% would be Scenario 3, and 25% would be Scenario 4. Although CSL did not analyze a "multi-use" concept similar to that proposed by AEG Live and Live Nation, the Administration believes that this concept would operate more as a local satisfier, similar to the current operation of the JGT. In this case, a much higher percentage of attendees would fall under Scenario 4, and a lower percentage of Scenarios 1, 2, or 3, indicating that the majority of performance-related spending would be displaced from other local and regional entertainment options. The CSL Report indicated that a CDS show could potentially generate $50 million in net new spending annually through increased tourism and local visitors, increase expenditures by each visitor, increase hotel room nights, create 856 local jobs to satisfy the new demand, and increase earnings in the local economy. The report indicates that 70%, or almost $40 million, would inure directly to businesses on Miami Beach. The project will also create significant incremental tax revenues. The report confirmed that the market demographics of the South Florida/Miami area continue to be consistent with tourism as a leading local industry. In addition to measuring the quantifiable economic impacts related to a permanent CDS production in Miami Beach, CSL identified several non-quantifiable community impacts as well. In an effort to gauge the effect of CDS on the quality of entertainment in Greater Miami, CSL interviewed nearly 170 attendees of Cirque's touring performance of Varekai in Bayfront Park. During the interview, attendees were asked to rate the effect of Cirque du Solei! on the quality of entertainment in the greater Miami area. Nearly 75% of those surveyed felt that the presence of CDS would result in a significantly positive effect on the community. CSL concluded that while CDS would have measurable positive effect on the local economy, the presence of this production could also generate lasting effects on the local entertainment industry, positively affecting the appeal of the destination to visitors to the area, as well as the quality of life of local and regional residents. Discussion and Resolution on the Jackie Gleason Theater October 18, 2006 Page 17 of 19 The CDS project, in particular, would likely cause the JGT to be subject to property taxes. The projected amount of property taxes that would be payable on the JGT is estimated at $1.5 million annually. Other taxes that would be generated by the project total $4 million, largely consisting of state and county sales tax and convention development taxes. All of the proposed projects are expected to generate incremental parking revenue due to an increased number of events and higher attendance. AEG Live and Live Nation, through their proposals, have projected similar characteristics and attendance as what is currently experienced at the JGT. The proposed operational programs for the JGT are substantially similar to the current operation and so the incremental increase in parking is based on an expanded programming similar to the JGT's historical performance. The estimated incremental increase in parking revenue for either AEG Live or Live Nation is $350,000 annually. For CDS, the projected incremental parking revenue has a greater impact due to an increased number of shows and a lower projected count per vehicle. The projected number of shows is almost three times as many as either AEG Live or Live Nation proposed and demographics of the CDS show indicate a higher vehicle count. This translates to an estimated incremental increase in parking revenue for the CDS project of $1.5 million annually. Fundina Availability Chapter 163, Part III, Florida Statutes, also known as the "Community Redevelopment Act of 1969" (the Act), authorizes the creation of community redevelopment agencies and governs the use of monies in redevelopment trust funds created in accordance with the Act. These community redevelopment agencies (CRAs) are in turn empowered to designate certain slum or blighted neighborhoods as "redevelopment areas" for the purpose of redeveloping them according to approved plans. The 332-acre City Center/Historic Convention Village Redevelopment and Revitalization Area (City Center RDA) was established in 1993, to provide the funding mechanism to foster development of a new convention hotel within proximity of the Miami Beach Convention Center and to establish the necessary linkages between the City's many core area civic, cultural and entertainment uses in order to create the fabric of a true urban downtown. On December 2,2004, the Loews Hotel exercised the purchase option to acquire the land, land improvements and the building for a total price of $27.5 million net of closing costs. Similarly, on February 16, 2005, after extensive renegotiation efforts to avoid potential litigation with RDP Royal Palm over alleged construction and environmental delay claims, the RDP Development Inc. exercised its right to purchase the land and improvements underlying the Royal Palm Hotel for $12.4 million. Together these resulted in one-time proceeds of almost $40 million to the City Center RDA. The City can "recycle" these funds into a new public/private partnership creating a new economic development project that is expected to generate a recurring revenue stream to the City of Miami Beach. Redevelopment agencies invest in redevelopment projects that will revitalize the area and remove slum and blight through the improvement of infrastructure, attracting new investment, creating jobs, and enhancing the tax base. As revitalization occurs, the Tax Increment Financing structure provides the community with additional resources for re-investment into the area, further contributing to the revitalization, enhancing property values and increasing Discussion and Resolution on the Jackie Gleason Theater October 18, 2006 Page 18 of 19 economic prosperity. In the case of the City Center Redevelopment Agency, tax increment financing has been a major tool for financing redevelopment activities in the district. The public/private partnerships with the Loews and Royal Palm convention hotel projects led to significant private sector investment in the district, which in turn led to significant increases in the increment. Miami-Dade County Fundina Assistance As the CSL economic impact study indicates, the creation of a permanent Cirque Du Soleil venue in Miami Beach has significant economic impact, which is not limited to Miami Beach. Statistics provided by the Greater Miami Convention and Visitors Bureau indicate that although more than 70% of the overnight visitors to Miami-Dade County visit South Beach during their stay, only 42% of these visitors actually stay in a Miami Beach hotel. As is the case with the positive impact the entire county realizes from the success of South Beach, the incremental increase in room nights and hotel revenues from a CDS production in Miami Beach will have a positive economic impact throughout Miami-Dade County. The status of Miami Beach as a regional resource is also established by the statutory allocation of 2/3 of the countywide Convention Development Tax to the municipality with the largest publicly-owned convention center (Miami Beach), and further by the commitment of Miami-Dade County to assist in the expansion of the Miami Beach Convention Center in their most recent General Obligation Bond referendum. In recognition of the potential benefits that would be realized throughout the county by the attraction of a permanent CDS show, Miami-Dade County has indicated its willingness to contribute at least $10 million toward the capital costs of retrofitting the theater for this single-use activity. A request for an additional $5 million contribution is still pending. It is important to note, that this funding is conditioned upon approval by the Board of County Commissioners. Next SteDs As we move into 2007, it is again time for the Jackie Gleason Theater to transform itself into its next iteration. Staff and I have spent considerable effort to provide you with sufficient information and materials to make a responsible decision as to what the JGT should become. The three companies that you have chosen to consider are all premier providers of live entertainment in the United States. All three of them are wholly capable of delivering on the commitments made to you in their respective proposals. It should be noted that this document and all of the supplemental material we are providing to you for this item is the product of our best efforts to bring you as much analysis and data as possible. The City has been working with CDS for almost 18 months. Our discussions with AEG Live and Live Nation only date back to July 2006 (approximately 3 months). As such, we have collected significantly more information on CDS and have a much more detailed and developed term sheet for their proposal. Nonetheless, we have evaluated sufficient data on AEG Live and Live Nation to draw our conclusions and would work with their representatives to fully develop a detailed term sheet as a next step if so directed. There are several items attached to this Memorandum. The attachments include the "Best and Final" Term Sheet proposal from each company; supporting documentation from each Discussion and Resolution on the Jackie Gleason Theater October 18,2006 Page 19 of 19 company that provides information on each company as well as illustrating their respective Term Sheet offers; additional third party information on the companies that provides additional insight of each; as well as previous reports and memorandums from myself and Staff on this issue. As you consider this information, including the documents that are attached, I would encourage you to take some time and focus on the visionary aspects that each company has offered for the JGT. The AEG Live and Live Nation offers are consistent with a vision of the JGT that is very similar operationally to how the venue currently operates from the perspective of the public. Both companies, however, approach this operational similarity with their own distinct character. They each offer a different blend of live entertainment and a different approach to how the Theater will look and be programmed. Finally, they are both different in their approaches to how they propose to compensate the City, which is a reflection of their respective corporate philosophies and, as such, is an extension of their vision for the JGT. The Cirque du Solei I offer is a distinct departure from the current operational paradigm. The offer would convert the facility into a single use venue that would be significantly altered to provide a number of ancillary amenities to the primary live entertainment. As such, it is as much an economic development project, funded through previously allocated economic development funds, as it is a change in the way the JGT looks, feels, and operates. This proposal represents a distinctly different vision for the JGT, from the visions of AEG Live and Live Nation. I hope this information is helpful as you analyze and consider the options before you. Staff and I will meet with you to discuss this information and to respond to any questions that you may have. There is a Community Meeting on Monday, October 16, 2006, in the JGT at 5:00 PM, and the Special City Commission Meeting, to discuss and consider the three companies and their offers, is scheduled for October 18th at 5:00 PM in the City Commission Chambers. Following Monday's Community Meeting, I will prepare a supplemental package of materials that will further frame the issues and policy considerations you should take into account in making your final decisions. We also hope to provide you some insight into the outcome of Monday's meeting, as well as, final observations and other issues to consider. Attachments Parties Concept Project Proposed Use - Types of Events Form of Agreement Proposed Term Base Compensation to CMB Bonus/Percentage Rent/Facility Fees Real Estate Taxes Project Investm~nt Social/Community Benefits Naming Rights Sponsorship Maintenance Insurance Operations Corporate Guaranty Art in Public Places AEG Live LLC (AEG) and City of Miami Beach (City) Traditional performance venue with diverse venue bookings using existing seating capacity of 2,700 Improvements include sound and lighting systems; orchestra pit; concession areas; electrical upgrades for audio & lighting; acoustical treatments; emergency system linkages & interfaces; and marquee signage. 140 ticketed events per year with attendance projected to total 246,000 by 2008. Types of Events include Award Shows, Holiday Festivals, Community Nights, Consumer Shows, Concerts, Family Shows, Festivals, Film Premieres, Film Festivals, Meeting/Catering Events, Speaking Association, Television Productions, Theatrical Productions, Trade Shows Management Agreement Initial 10 year term and two (2) five-year options, up to 20 years; Termination Right for AEG after 2 years if AEG sustains losses in excess of $500,000 in a year. $250,000 per year, adjusted by CPI after 2008 City will retain 100% of all facility fees ($1.50 per ticket), estimated to be $300,000 by 2008. City will receive 50% of the ticketing convenience charge rebate received from Ticketmaster, estimated to be $242,000. $0, theater is currently exempt from property taxes. If venue becomes taxable, then City pays property taxes. City: $0 Other: $2,000,000 . The City may use venue rent free 10 days per year; the City reimburses operating expenses. . 60-80 free tickets for seniors and students (per event). . Assume commitment to Invitation to the Arts Festival with annual event advertising. . Work with local schools to provide after school programs. AEG will have the right to sell naming rights. City will receive 50% of any naming rights revenue based upon the assumption that name in title sponsorship will be approved by the City Commission. $0 AEG will be responsible for day-to-day operational maintenance, as well as minor fixture and small equipment replacement up to an amount to be determined. City will be responsible for all capital renewal and replacement for the theater. AEG will obtain spectator and general liability insurance; the City will continue to be responsible for property insurance. AEG shall provide all event-related operations and pay all event related expenses All obligations will be guaranteed by AEG Live, LLC TBD Year One Revenue Estimates - Partial Year ( 9 months) (1 ) Base Rent (Guaranteed) Facility Fees (per ticket basis) Other Compensation (per ticket sold via Ticket Master) Naming Rights (assumes renamed theater) Total Compensation $ $ $ $ $ 188,000 211,000 242,000 210,000 851,000 Year Six Revenue Estimates (1) Base Rent (Guaranteed) Facility Fees (per ticket basis) Other Compensation (per ticket sold via Ticket Master) Naming Rights (assumes renamed theater) Total Compensation $ 285,000 $ 385,000 $ 451,000 $ 328,000 $ 1,449,000 $ 320,000 $ 433,000 $ 516,000 $ 371,000 $ 1,640,000 Year Ten Revenue Estimates (1) Base Rent (Guaranteed) Facility Fees (per ticket basis) Other Compensation (per ticket sold via Ticket Master) Naming Rights (assumes renamed theater) Total Compensation Ten Year Aggregate Revenues ( 1) Base Rent (Guaranteed) Facility Fees (per ticket basis) Other Compensation (per ticket sold via Ticket Master) Naming Rights (assumes renamed theater) Total Compensation $ $ $ $ $ 2,756,000 3,590,000 4,209,000 3,165,000 13,720,000 Ten Year Total Value Total $ 10,130,000 (1 ) $ 3,590,000 (1 ) $ $ 3,500,000 (2) $ 6,000,000 (2) $ 2,000,000 (1) $ (10,000,000) (3) $ 15,220,000 Rent, Other Compensation & Naming Rights Facility Charge Real EstateTaxes Incremental Parking Community Benefit Private Investment Maintenance Cost (deduct) NOTES (1) Source - AEG Live LLC Proposal to The City of Miami Beach dated Sep 27,2006 (2) Source - City of Miami Beach based on AEG Live LLC Proposal to the City of Miami Beach dated Sep 27, 2006 (3) Source - City of Miami Beach estimate of continuing capital maintenance cost on the facility Concept Parties Live Nation Worldwide, Inc. and its subsidiaries (LVN) and the City of Miami Beach (City) Project Proposed Use - Types of Events Form of Agreement Proposed Term Base Compensation to CMB Bonus/Percentage Rent/Facility Fees Real Estate Taxes Project Investment Live performance venue with flexible seating to allow for a variety of entertainment options, such as comedy and live concerts Improvements include: seating re-configuration with re-grade on ground floor to create terraced, general admission floor areas (2,750 total event capacity); updated auditorium finishes; updated draperies, lighting and paint in the lobby; new bars, lighting, finishes and furnishings to create an upscale atmosphere and more points of sale; $200,000 allowance for a significant new exterior sign; update and reconfiguration of dressing areas and band accommodations. Projected 120 events in the first full year of operation with potential to grow to 150 to 180 events per year. Projected to grow past 240,000 tickets per year in 2008. Public entertainment, live entertainment, public assembly, bar and/or restaurant and anciliary uses. Proposed types of entertainment include concerts, comedy acts, private rentals, television broadcasts, artist recording studio, filming events Lease or Management Agreement Initial 15 year term with two (2) five-year options, up to 25 years $1,000,000 per year, 2% escalator per year $1 per ticket after 240,000 tickets per year (excludes community benefit fund program tickets, charitable events, third party rentals). $2,000 per event above 200 events (same exclusion) $0, theater is currently exempt from property taxes. If venue becomes taxable, then City pays property taxes. City: $0 Others: $3,500,000 e The City may use venue rent free twice per year for City events, once per year for charitable use; once per year for Play Ground Review event; the City reimburses operating expenses; L VN keeps f&b revenue; no sponsorship violation; no concerts. eAnnual Event and Auction for Community Needs consisting of autographed memorabilia of the performing acts at the JGT eResident Ticket Program - Live Nation will make 100 tickets for specified events available for purchase 2 days early to City residents eCommunity Benefit Fund - Live Nation will continue the current discounted ticket program for senior citizens and students w/o City contribution eFree booking/programming Consultation to City for Byron Carlyle and Colony Theaters e20 tickets to City for each event. Naming Rights If naming rights are approved by City and Theater name is changed from "Jackie Gleason" then Live Nation will share 25% of net naming rights with City Social/Community Benefits Sponsorship $0 Maintenance Live Nation will cover all costs, including capital plant renewal and replacement Insurance Live Nation will cover all costs Operations Live Nation will cover all costs Corporate Guaranty Provided by Live Nation Worldwide, Inc. Art in Public Places TBO Year One Revenue Estimates 1,000,000 (1) Base Rent (Guaranteed) Facility Fees Other Compensation Naming Rights (assumes renamed theater) Total Compensation $ $ $ $ $ Year Six Revenue Estimates 140,000 (2) 1,140,000 Base Rent (Guaranteed) Facility Fees Other Compensation Naming Rights (assumes renamed theater) Total Compensation $ 1,104,081 (1) $ $ Year Ten Revenue Estimates 164,000 (2) 1,268,081 Base Rent (Guaranteed) Facility Fees Other Compensation Naming Rights (assumes renamed theater) Total Compensation $ 1,195,093 (1) $ $ Ten Year Aggregate Revenues Base Rent (Guaranteed) Facility Fees Other Compensation Naming Rights (assumes renamed theater) Total Compensation $ $ $ Ten Year Total Value 185,500 (2) 1,380,593 10,949,721 (1) 1,582,500 (2) 12,532,221 11,000,000 (1) Base Rent (Guaranteed) Facility Fees Real EstateTaxes Incremental Parking Community Benefit Private Investment Maintenance Cost (deduct) $ $ $ $ $ $ $ 3,500,000 (3) 6,000,000 (2) 3,500,000 (1) Total $ 24,000,000 NOTES (1) Source - Live Nation Proposal to The City of Miami Beach dated Sep 22, 2006. (2) Source - City of Miami Beach based on Live Nation Proposal to the City of Miami Beach dated Sep 22, 2006. (3) Source - City of Miami Beach estimate of continuing capital maintenance cost on the facility Parties A joint venture consisting of Cirque du Soleil, Inc. with its affiliated partners (CDS) and the City of Miami Beach (City) Concept Permanent Cirque du Soleil Show, with related facilities including a theme restaurant, show related retail boutique, theme lounge, and special events venue that provides both private and public live entertainment, which can be operated as a nightclub up to three nights a week. Project Economic Development project that converts the Jackie Gleason Theater and the adjacent 555 building into a multi-purpose entertainment complex. Includes the complete renovation of the theater and adjacent 555 buildings to accommodate the proposed uses. Current components include a 1,700 seat theater, 250 seat theme restaurant with a related 300 seat lounge, and a 600 to 1,500 person special event area for private rentals that will open as a live entertainment or nightclub venue for the public up to three nights a week. Proposed Use - Type of Event Permanent theater venue for a CDS live show production with a projected 415 shows annually; theater adjacent concessions and merchandising retail; theme restaurant and lounge; special event area for private and public functions; surrounding gardens. The proposed show is anticipated to qualify as a partially nude establishment under the City Code and state law. Form of Agreement A development agreement for the development and constructon of the project; and a lease agreement for the use and operation of the project. Proposed Term Initial term of 15 years with 10 year subsequent renewals up to 50 years. There are two related, substantive agreements, one for the show and one for the lease on the property. Both include a termination right: for the Show if after two years the expenses exceed revenues for 12 consecutive months; for the lease after 4 years if expenses exceed revenues for 12 consecutive months. If either is involved, the term ends no later than year 15. Base Compensation to CMB $4,200,000 (estimated) in year 1, based on percent of gross show ticket sales and other revenues (boutique, VIP, food & beverage, restaurant, lounge. special event, etc.). $6,100,000 (estimated) in year 6, based on a percent of gross show ticket sales, which increases this year, and other revenues (boutique, VIP, food & beverage, restaurant, lounge, special event, etc.). Bonus/Percentage Rent/Facility Fees $1,100,000 (estimated, based on $2 per ticket) for years 1 through 5; $1,400,000 (estimated, based on $2.50 per ticket) for years 6+. This is a facility surcharge on each ticket sold. Real Estate Taxes $1,500,000 (estimated for all overlapping jurisdictions) CDS is responsible for payment of all taxes. Project Investment City: $40,000,000 to $45,000,000 County: $15,000,000 to $10,000,000 Others: $75,000,000 Social/Community Benefits . $1,000,000 (estimated, based on 1% of project revenues) to social programs on Miami Beach (at least 50%) and in developing countries. Proposed programming to focus on youth-at-risk, cultural programs to promote/support emerging talents, in- school/extracurricular activities for youth. . Availabilty of rehearsal nights for fundraising opportuntiies for non-profit organizations . The City shall have booking rights (subjectto availability) to the special events area for City use. . 4 premium seats per performance for City use. Naming Rights Revenue from any naming rights shall be used for capital construction costs during the development phase and towards debt service and building maintenance during operation phase. Sponsorships Revenue generated by sponsorships and non-facility naming rights is reserved to CDS. Maintenance CDS is responsible for all regular, "day to day" maintenance activities, such as painting, carpeting, filter replacement, light bulb and fixture replacement, etc., as well as minor equipment and machinery replacement. City maintains responsibility for replacement of capital equipment and machinery in the project, the cost of which are funded through the facility fee. Insurance CDS shall maintain all risk casualty insurance, including windstorm (unless not commercially available) & flood; general commercial liability; business interruption insurance; performance insurance; auto liability insurance; worker's compensation insurance; intellectual property. Operations CDS is responsible for all operational requirements. Corporate Guaranty All obligations will be guaranteed by CDS and its joint venture partners. Art in Public Places $1,500,000 projected value of proposed publiC art to be in and paid for by the project. Year One Revenue Estimates (1) Base Rent Facility Fees Other Compensation Naming Rights Total Compensation $ $ $ $ $ 4,200,000 1,100,000 5,300,000 Year Six Revenue Estimates (1) Base Rent Facility Fees Other Compensation Naming Rights Total Compensation $ $ $ $ $ 6,100,000 1,400,000 7,500,000 Year Ten Revenue Estimates (1) Base Rent Facility Fees Other Compensation Naming Rights Total Compensation $ $ $ $ $ 6,800,000 1,400,000 8,200,000 Ten Year Aggregate Revenues (1) Base Rent Facility Fees Other Compensation Naming Rights Total Compensation $ $ $ $ $ 54,600,000 12,500,000 67,100,000 Ten Year Total Value Rent Facility Charge Taxes Incremental Parking Community Benefit Private Investment Maintenance Cost (deduct) $ $ $ $ $ $ $ 54,600,000 (1 ) 12,500,000 (1) 15,000,000 (4) 15,000,000 (2) 10,000,000 (2) 75,000,000 (1 ) (10,000,000) (3) Total $ 172,100,000 (1) Source - Cirque du Soleil Proposal to The City of Miami Beach dated Sep 29, 2006. (2) Source - City of Miami Beach based on Cirque du Soleil Proposal to the City of Miami Beach dated Sep 29, 2006. (3) Source - City of Miami Beach estimate of continuing capital maintenance cost on the facility (4) Source - City of Miami Beach. JACKIE GLEASON THEATER COMMISSION ITEM ATTACHMENTS 1. AEG Live LLC - Proposal to The City of Miami Beach for The Jackie Gleason Theater of the Performing Arts - dated 9/27/06 2. AEG Live LLC - "Preserving the Past Ensuring the Future" A Proposal to the citizens of Miami Beach for the revitalization of The Jackie Gleason Theater of the Performing Arts - dated 10/16/06 3. Live Nation - Jackie Gleason Theater Proposal- date stamped 9/29/06 4. Live Nation Presentation Jackie Gleason Theater City of Miami Beach - dated 10/16/06 5. Cirque du Solei I - Proposal - dated 9/29/06 6. Cirque du Soleil - Endorsement Letters 7. Cirque du Soleil - 'The Power of the Brand" 8. Cirque du Soleil - America's Greatest Brands - "An Insiaht into Manv of America's Stronaest and Most Valuable Brands" Volume V 9. Cirque du Solei I - "Meet your new neighbor" 10. Cirque du Soleil - Press Kit - dark blue folder 11. Cirque du Soleil - "Creator, Performer and Corporate Citizen" - light blue folder 12. Kroll Associates, Inc. - Executive Summary - AEG Live 13. Kroll Associates, Inc. - Executive Summary - Live Nation 14. Kroll Associates, Inc. - Executive Summary - Cirque du Solei I 15. "The Future of the Jackie Gleason Theater of the Performing Arts" - Presented to the City of Miami Beach Commission Finance and Citywide Projects Committee 1/27/05 16. LTC # 114-2006 - Cirque du Soleil - Economic Impact Analysis 17. Commission Item R7 J of 9/6/06 A RESOLUTION APPROVING A PROPOSED PROCESS FOR RECEIVING PROPOSALS FOR THE FUTURE USE AND OPERATION OF THE JACKIE GLEASON THEATER OF THE PERFORMING ARTS F:\cmgr\$ALL\HEMSTREEl\101806 JGT item attachments.doc lD MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM FROM: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez, City Manager\,.,- ~ October 18, 2006 (J--- Options - Jackie Gleason Theater of the Performing Arts TO: DATE: SUBJECT: Backaround On July 12, 2006, the City Commission directed staff to begin parallel discussions with AEG Live and Live Nation regarding their interest in managing the Jackie Gleason Theater of the Performing Arts (JGT). During the Finance and Citywide Projects Committee on August 17, 2006, and subsequently on September 6, 2006, the City Commission approved a process for the submission and review of offers by the three interested companies in a manner that ensured ongoing discussions with Cirque were not delayed. Subsequently, staff received and reviewed the proposals submitted by all entities. Late last week all three companies submitted their releases from the disclosure exemptions they had previously requested pursuant to F.S. 288.075, allowing us to make public on Thursday a summary of the three offers submitted, and copies of the complete offer documents last Friday. The City also posted these documents on a webpage created on our web site specifically about the JGT to facilitate the dissemination of information. To date, two public meetings have been held, providing members of the community with the opportunity to hear about the proposals and ask questions or get clarification. At the Mayor's Blue Ribbon CANDO meeting last Thursday, October 12, 2006, I was able to provide an overview to the Committee and other members of the public on the three entities and general parameters of their offers. The meeting was well attended and many thoughtful questions were asked. Over 270 interested persons attended the community input meeting held Monday night at the JGT, with a substantial number of persons signed up to speak. I was able to provide much more detailed information on the elements of the three proposals, from programming options to the financial packages offered. I was also able to present the choices for the future use of this facility as I see them: two distinct and very appealing alternatives for the JGT; two options that present different opportunities for our City. Following my presentation, we opened the floor for questions and answers. The speakers varied and reflected their individual constituencies, ranging from venue users (such as Ballet Etudes of South Florida, International Ballet Festival/Miami Hispanic Ballet, Rhythm Foundation, William Morris Agency, etc.); senior discount ticket recipients; representatives ofthe workforce at the JGT; residents who enjoy very close proximity to the theater; and representatives of various local businesses (hotels, restaurants, nightclubs), as well as interested community members that had no apparent affiliation to a particular stakeholder group. The question and answer period lasted over two hours and everyone present who signed up to speak was provided an opportunity to do so. The comments reflected generally what would be the expected concerns from these stakeholders, with Agenda Item Date R'71\ JO-lg-O(o Options - Jackie Gleason Theater of the Performing Arts October 18, 2006 Page 2 venue users worried about the loss of a performance venue, seniors concerned with their ability to access programming, the nightclub industry expressing concerns with a component of one proposal and businesses generally supportive of a change in venue use to support the visitor industry. In general, there were more speakers present articulating a position not supportive of the CDS option than those speaking in support. This, however, did not necessarily translate to support ofthe AEG Live or Live Nation options, either. In my opinion, the common message that resonated across the stakeholder groups present was a desire to keep the current programmatic mix and operational parameters of the JGT as is. While this desire is understandable, the expected impact of the PAC on the JGT's future viability has made this option less and less viable and more and more costly to the City. There was also a recurring reference to the City's commitment to cultural programming, suggesting that any change of use of the Gleason would result in the elimination of the majority of all available cultural opportunities for our residents. This is an inaccurate representation of the City's long- standing and significant support of cultural programming to benefit our residents and deserves clarification. Current Cultural Investments As you know, the City's investment in and support of the cultural arts extends far beyond the JGT. We recently re-opened the Colony Theater (after an $8 million renovation) and are proud to report that usage levels are very high. In fact, as of today, there are 168 events booked at the Colony through next September. Offerings include Film festivals, opera performances, comedy, modern dance, English and Spanish-language theater, classical music, pop music, performance art; as well as private film screenings, auditions and band rehearsals. We have preliminarily discussed, and will be presenting to the Finance and Citywide Projects Committee next week, a proposal for revised rental rates at both the Byron Carlyle and the Colony to maximize available dates and encourage our local arts groups to use our facilities. The newly designed Arts in the Park program was developed to bring arts programming out into our community, providing a vehicle for residents to see a variety of programming in a format and location that will engender interest in the arts. As part of our support of the Miami City Ballet capital allocation, we required the Ballet to provide a new, contemporary series at their 250-seat Studio Theater. The City's commitment to the arts is certainly not limited to the rented events provided at the JGT. In fact, the City should be commended for going beyond most municipalities in their support of arts and culture, exceeding what cities our size generally spend. Our benchmark analysis reflects that the City spends approximately $65 per resident per year in cultural activities, which is almost four (4) times as much as the average of all cities in the study. This commitment has included an active and well-supported Cultural Arts Council with a dedicated funding source, an Art in Public Places Board and a Fine Arts Board; capital commitments for the rehabilitation of the Colony and Byron Carlyle, as well as for the expansion of the Bass, Jewish and Wolfsonian Museums and Miami City Ballet; and support for events such as Art Basel and Art MiamL Current venue users at last night's meeting expressed concerns with the potential loss ofthe facility for their programming. Without doubt, our community has benefited from the programming that has been made available at JGT throughout the years. Attachment A reflects the usage of the JGT for the past four (4) years in terms of variety of programming and attendance. As reflected in the shaded area, in 2005-06, average paid attendance (without complimentary, or "comps") ranged Options - Jackie Gleason Theater of the Performing Arts October 18, 2006 Page 3 from as little as 205 attendees to a high of 2,569. It is also important to note that during that period: only five of the more than 70 programs offered are produced by entities that receive funding from our Cultural Arts Council; and only seven (7) of the 127 show nights had more than 2,000 attendees. This attendance, coupled with the steady decrease in bookings, raises the question of whether other venues, either on or off the Beach, may be available as an option for these types of programs. For your reference, please see a listing of venues in the Tri-County area (Attachment B), as well as rental rates for comparable facilities (Attachment C). Patrons, in particular seniors, also expressed a desire for the continued availability of the variety of programming that has been provided at the JGT. As you are aware, forty percent of our previous programming will transition to the two new venues at the Carnival Center for the Performing Arts. The opening of new facilities at the American Airlines Arena, the Bank Atlantic Center and Seminole Hard Rock Cafe and Casino, have also created options for event producers and competition for JGT. By choosing to discuss options for a single purpose venue, the City is not making a conscious decision to limit the availability of varied programming for our residents; that shift was already beginning to occur as a result of changing market forces. In addition to working to improve arts and culture offerings at other local venues, we continue to look at ways that our seniors will be able to benefit from the wealth of other, existing cultural arts programming, including shuttle bus service for events, as recommended by Commissioner Jerry Libbin during the recent operating budget discussions, a shuttle service for PAC events as recently recommended by Commissioner Richard Steinberg, and continued discounts at other City venues and events. Options The Administration has thoroughly evaluated the 3 offers provided by AEG Live, Live Nation, and CDS. However, these represent two distinct operational structures and programmatic visions for the JGT. The AEG Live and Live Nation offers are consistent with a vision of the JGT that is very similar operationally to how the venue currently operates from the perspective of the public. Both companies, however, approach this operational similarity with their own distinct character. They each offer a different blend of live entertainment and a different approach to how the Theater will look and be programmed. Finally, they are both different in their approaches to how they propose to compensate the City, which is a reflection of their respective corporate philosophies and, as such, is an extension of their vision for the JGT. The Cirque du Soleil offer is a distinct departure from the current operational paradigm. The offer would convert the facility into a single-purpose venue that would be significantly altered to provide a number of ancillary amenities to the primary live entertainment. As such, it is as much an economic development project, funded through previously allocated economic development funds, as it is a change in the way the JGT looks, feels, and operates. This proposal represents a distinctly different vision for the JGT, from the visions of AEG Live and Live Nation. In considering these alternatives, however, there are a variety of options for you to explore. Each option has its own merits and support in the community. Each option is also consistent with the nature of the decision before you, which is deciding what the JGT should be and what is your vision of the facility in the future. Options - Jackie Gleason Theater of the Performing Arts October 18, 2006 Page 4 The options are listed below, followed by analysis and discussion of each. 1. Operate as a Multi-Use facility through a management agreement with a producer and promoter of live entertainment. This option would direct the City Manager to proceed with a negotiation of a management agreement with either AEG Live or Live Nation. 2. Convert the JGT to a Single-Purpose facility. This option would direct the City Manager to proceed with finalizing negotiations with Cirque du Solei I for a development agreement and a lease agreement. 3. Deferral of a decision to provide additional time for the City Commission to further consider the information. 4. Maintain the JGT as a multi-use facility with its current management agreement with SMG. Multi-Use Facility This option would change the management model of the JGT from the current structure where the facility is booked as a rental facility on a first-come/first-served basis to a model where the facility is booked by a single, exclusive promoter. In this model, a promoter, such as AEG Live or Live Nation, would program the facility and assume the financial risk for acts that are booked in the JGT. The promoter is responsible for financing the acts and for remitting an annual payment to the City. If there is an operational loss experienced on the facility, then the loss is incurred by the promoter. The two companies that have submitted a proposal under this model are AEG Live and Live Nation. The companies offer distinctly different proposals with regard to a multi-use venue, as well as different economic proposals. Their visions and proposals are unique to the extent that a distinction can be made between the two companies. Live Nation's vision is to provide an entertainment venue that focuses primarily on live music and comedy acts. Their vision of the JGT is to modify it to a version of their "Fillmore" brand, which is well-known in the music industry as a traditional venue for progressive music acts. Proposed capital improvements would modify the venue by upgrading audio equipment, lighting, seating areas, and concession locations. These improvements would result in a versatile venue that could accommodate different seating arrangements and configurations. Terraced seating would be added, as well as a general admission area, with additional concession locations throughout the facility to purchase food and beverages. Live Nation also plans on upgrading the technological abilities of the facility to allow for live recording (both video and audio). Another related consideration is the new Carnival Center of the Performing Arts (PAC) which recently opened. The Miami City Ballet, the Concert Series, and the Broadway Series have all relocated from the JGT to the PAC, which offers programming that is very similar in nature to the current JGT. Based on our attendance figures for this type of traditional programming, as previously noted, it is questionable as to whether sufficient market exists to support similar and competing programming models at the JGT and the PAC and have both facilities with revenues covering expenses. Therefore, it is in the City's economic interest to operate the JGT in a manner that compliments the PAC, as opposed to competes with the PAC. Options - Jackie Gleason Theater of the Performing Arts October 18, 2006 Page 5 The economic package offered by Live Nation to the City consists of: . $1 million guaranteed annually, with a 2% escalator . $1 per ticket sold in excess of 240,000 tickets annually . $2,000 per show in excess of 200 shows annually . $3.5 million in private investment in the facility . Social benefits, such as a resident ticket program, an auction for community needs, continuation of the student/senior discount program, management consultation for the Byron-Carlyle and Colony Theaters, and rent free use to the City for 4 days per year . Potential additional revenue related to naming rights . Maintenance on the venue, including capital renewal and replacement . Incremental parking of $350,000 annually . 15 year initial term, with two 5 year renewals The total economic package offered by Live Nation is estimated at $24 million over a ten-year period, of which over $11 million is guaranteed. Based on the above, should the City Commission decide that a Multi-Use facility operated by a promoter is in the City's best interest, I recommend that the City Commission authorize me to negotiate a management agreement with Live Nation to operate the facility. I also recommend that the following items be specifically identified for further discussion with Live Nation. . Staff analysis indicates that the $1 million in annual payments equates to approximately 6% to 7% of gross revenues. However, in later years, this percentage lowers to 5% or thereabouts. The City should make sure that an appropriate mechanism be included to ensure that adequate revenue is derived in the out years. . Research indicates that 120 shows, which is the minimum needed to generate 240,000 patrons, is a relatively healthy number of shows in a year to achieve. Consequently, the $1 per ticket "bonus" would be challenging. Consideration should be made to lowering the threshold for the $1 per ticket bonus as well as increasing the amount of the bonus after a certain number of years. . Research also indicates that 200 shows per year is a high threshold for this type of venue with this programmatic model. Although it is understood thatthis is a "bonus," consideration should be given to lowering the number of shows to an attainable level. . This industry is highly competitive between venues and promoters attempting to secure talent. In addition, due to the competitive nature of the industry, promoter profit margins are extremely tight. Live Nation is the largest live entertainment company in the world and has the ability to book the acts that they promote in a number of venues in South Florida. Given this, consideration should be made to protect the City through a minimum number of events annually and City input regarding the type of entertainment and acts should be carefully considered in order to ensure an appropriate mix of programmatic and artistic options. Please see Attachment D for a listing of current bookings at existing venues. Single-purpose Facility This option would change the management model of the JGT from the current structure where the facility is booked as a rental facility on a first-come basis to a model where the facility is leased and operated by a single entity. For this option, the company that has submitted a proposal is Cirque du Options - Jackie Gleason Theater of the Performing Arts October 18, 2006 Page 6 Soleil ("CDS"). CDS is offering a significantly different vision for the future of the JGT. The CDS vision is to convert the JGT into an entertainment facility that offers added amenities to the traditional theatrical performance venue. These added amenities include a restaurant, lounge, retail boutique, and special event area. The CDS option would bring an original CDS show to the JGT that is specifically made for Miami Beach. The proposed show has been described by CDS as a "cabaret-style show inspired by the best traditions of Brazilian carnival, tailored to the specific sensibilities, values and standards ofthe Miami Beach community." The show is completely created and produced for this venue at an estimated cost of $30 million. Similar to the above, consideration should be given to the fact that the new Carnival Center of the Performing Arts (PAC) recently opened. As noted above, The Miami City Ballet, the Concert Series, and the Broadway Series have all relocated from the JGT to the PAC, which offers programming that is very similar in nature to the current JGT. Consistent with the discussion above, it is in the City's economic interest to operate the JGT in a manner that compliments the PAC, as opposed to competes with the PAC. A single-purpose CDS facility would meet this element. The economic package offered by CDS consists of: . $4.2 million in base rent in the first year, with an escalator in year 6 . $1.1 million in facility fees in the first year, designed to offset capital renewal and replacement costs, with an escalator in year 6 . $1 million in community benefits and social programs . $1.5 million in incremental parking revenue in the first year . Initial 15 year term with 10 year renewals up to 50 years The total economic package offered by CDS is estimated at $172 million over a ten-year period. The initial investment in the project is expected to be recouped in just over 7 years. In addition, to the direct benefits to the City, CDS brings other tangible benefits to the community. Based on the CSL report issued earlier this year, the net new spending based on a CDS permanent show is $50 million annually, of which $40 million is projected to be spent on Miami Beach. There is also a projected addition of 850 jobs in the community due to the proposed operation. The venue is expected to be subject to property tax and will also pay resort tax, state sales tax, and county sales taxes. A key component of CDS' proposal is their commitment to social and cultural action programs in the communities where they have a working presence. You have previously heard of CDS' commitment of 1 % of their revenues to promote social and cultural programs targeting at-risk youth. As proposed, CDS envisions programming that compliments existing programs in our schools and recreation centers, and provided by other community organizations that work directly with this targeted population. It is their intention to become an active member of the community. . Based on the above, should the City Commission decide that a single-purpose facility operated by Cirque du Soleil is in the City's best interest, I recommend that the City Commission authorize me to negotiate a development agreement and lease with Cirque du Solei I to operate the facility. I also Options - Jackie Gleason Theater of the Performing Arts October 18,2006 Page 7 recommend that the following items be specifically identified for further discussion with Cirque du Soleil. . Work with CDS to develop a program for local community groups and artists to develop alternative, as well as a variety of programming at the Colony Theater, Byron Carlyle Theater, and the Little Acorn Theater. . Further clarify the opt out clauses in the lease for the City in event that a CDS show is not in the theater, including defining characteristics of a CDS type show and alternate programming. . Direct the City Administration to finalize any term sheet elements that need revising; develop a long term lease and development agreement. . Should negotiations fail with CDS, authorize the City Manager to initiate negotiations with Live Nation. Deferral One of the issues raised at the community meeting on Monday, October 16, 2006 was whether or not to defer the decision to a later date. The primary concern, raised by members of the community, was that not enough time has been provided for the community and the City Commission to absorb the information and discuss same. It was suggested that, particularly in the case of a decision to pursue Cirque du Soleil, the amount of funding associated with the project deserves additional time to evaluate and consider the project and the individual proposals. In this option, I recommend that the City Commission carefully consider its goals for the deferral period. As was previously communicated to you through the initial memorandum on this item, all of the companies before you are considered the best live entertainment companies in the industry. The companies are all fully capable of delivering on the products that they have proposed to you and our due diligence indicates that the proposals made to the City are industry appropriate offers. The City is also capable of honoring its requested obligations in each of the term sheet offers by the companies. A deferral for a shorter period of time (Le., 1 to 2 weeks) to allow for more review and understanding of the complexity and magnitude of the decision is not unreasonable. While we have tried to keep each of you abreast of the issues over the past several months, clearly a significant amount of data and information has been provided to you in the past few days and you have received a great deal of input from members of the community. One to two weeks could be used to further respond to any questions you may have as you continue to review the material provided. A Special City Commission Meeting can be scheduled to accommodate this deferral. A deferral for a longer period could push this decision further out and the scheduling could be impacted by anyone or more of the following events: the City sponsored cultural exchange with China, the City municipal election, Thanksgiving, Art Basel Miami Beach, and the end of year holidays. As such, this could result in a decision being postponed until the New Year. In either event, a formal request should be made of each of the companies to ensure that each will maintain their respective offers during the deferral period. Options - Jackie Gleason Theater of the Performing Arts October 18, 2006 Page 8 Status Quo As previously mentioned, one of the issues raised at the community meeting on Monday, was the desire to maintain the current programming and operating structure for the JGT, as is. There is a strong connection in our community with the JGT, making a change in use a difficult concept for many residents to consider. While we have presented other options for the JGT, one remaining option would be to keep the current management structure and continue to attempt to provide a variety of programming, with a focus on programming that would be of interest to our community. This option, while on its face may appear to benefit the community, has implications from both a financial and programming perspective. The current management agreement for the JGT differs from the facility management approach used by AEG Live and Live Nation. Our operator, SMG, serves primarily as a booking agent, not assuming any financial risk on their or the City's behalf for any of the performances booked in the theater. As a result, the City receives a basic "rent" payment and does not guarantee a minimum payment to the performer/promoter, thus avoiding any risk if the revenue from tickets sold does not cover this minimum payment. This low risk model limits losses, but also generates lower revenues as many of the preferred artists expect minimum guarantees to book venues. Historically, for the benefit of the community, the City has made an affirmative decision to support the Jackie Gleason Theater through both operating and capital subsidies. These subsidies fund the operating losses incurred annually by the theater and provide for the capital renewal and replacement. Operating subsidies are generally funded from retained earnings, which include convention development tax revenues allocated to the Convention Center Complex. In addition, the City continues to fund an average of $1.0 million dollars of capital renewal and replacement annually. The most recent capital improvement plan for the JGT prioritized much-needed lighting and audio upgrades to address recurring concerns and try to remain competitive. The current condition of the JGT presents the greatest challenge, as we are competing within an increasingly crowded market that includes facilities with new, upgraded technology. As the facility continues to age, the cost of capital maintenance will continue to increase. We have conservatively estimated that capital maintenance over a ten year period will approximate $10 million. The convention development tax that is returned to the City through an interlocal agreement with the County, is fixed at $4.5 million annually and supports both the Convention Center capital needs as well as those of the Jackie Gleason Theater. With the migration of programming from the JGT, we would be challenged to book the type of programming that residents at the meeting indicated they would prefer for our venue. Based on the historical attendance statistics we have provided you, it is unlikely that the current local programming could cover the increased costs associated with operating the JGT, and there exists a possibility that some of the other bookings by promoters will move to the newer venues. With alternative public cultural programming venues available on the Beach (e.g. Colony, Byron Carlyle, Little Acorn, Miami City Ballet Studio Theater, the 725t Street Bandshell), the availability of private venues (e.g. Temple Emanu-EI, Lincoln Theater, Wolfsonian), and proposed programs to improve access to cultural offerings (Arts in the Park, Senior Shuttle program, etc.), continuing to operate the facility using the current model would not appear to greatly improve the programming, nor prove financially sensible. The only alternative would be to increase rent and/or ticket surcharges to offset losses. Options - Jackie Gleason Theater of the Performing Arts October 18, 2006 Page 9 Conclusion The City of Miami Beach is in the enviable position of having three of the largest, most successful, and most respected live entertainment companies in the North America (and arguably the world) interested in and aggressively pursuing the future use and operation of the JGT. This is a direct result of our exploration of the options available to us for this venue almost two years ago in anticipation of the opening of the PAC. While much has transpired over these many months, most notably the perceived appeal of the JGT as a live entertainment venue, what remains clear is that the current programmatic mix at the JGT has been and will continue to be impacted by the PAC. The offers under consideration provide very distinct options that will each aggressively position the JGT and Miami Beach in a very exciting entertainment market. It appears that both the Live Nation option and the CDS options better complement the types of entertainment products anticipated in the PAC while the AEG Live option creates a very similar mix of programming that would be in direct competition with the PAC. In addition, while the Ten Year Total Value analysis between the Single Purpose and Multi Use facility options vary dramatically, it is clear that the Live Nation offer presents a greater value than the AEG Live offer within the Multi Use facility option. Each of the offers available to the City is very viable, from reputable companies fully capable of delivering on what they have proposed. Any of the above mentioned four options are available to the Commission. The Administration is prepared to support your decision and ensure that the best possible outcome for the City of Miami Beach and its residents is achieved. The next chapter of the JGT is about to be written. I am confident that the future of this great venue is going to be as successful and historic as the last chapters have been. As the Great One himself said: "And Awaaaay we go." Attachments ATTACHMENT A JACKIE GLEASON THEATER 2005-2006 Total Attendance Including Comps Average Average Attendance (Incl. Attendance (w/o Show Date/sl Show # Shows Paid Attendance Comosl Com s 10/01/2005 CARNAVAL DE BARRANQUILLA 2 1631 1358 815.5 10/05/2005 TOM JOYNER SHOW 1 na 0 na 10/07/2005 MIAMI WORLD THEATER 2 682 409 341 10/18/2005 RICHARD BRANSON / MOMENTUM 1 nia 0 na 11/02/2005 PROGRAM I/MCB 3 3345 3072 1115 11/09/2005 US ARMY BAND 1 na 0 na 11/10/2005 JOHN LEGEND/FANTASMA 1 1860 1587 1860 11/12/2005 CONTEMPORARY DANCE 1 507 234 507 11/16/2005 MUNICH SYMPHONY/CAF 1 1411 1138 1411 11/17/2005 SABRINA'S GOING AWAY/SMG 1 na na na 11/19/2005 INTNL PRAISE PLAY 1 1907 1634 1907 11/26/2005 FLAMENCO DANCEiCAF 1 1410 1137 1410 12/01/2005 FOX SPORTS PREMIOS 1 na 0 na 12/09/2005 NUTCRACKER/BALLET ETUDES 2 4712 4439 2358 I 12/14/2005 NUTCRACKER/MCB 5 9285 9012 1857 01/09/2006 ROYAL PHILHARMONIC 1 1707 1434 1707 01/11/2006 PROGRAM II/MCB 3 3604 3331 1201 01/18/2006 JACKIE MASON/AM PRODUCTIONS 1 1797 1524 1797 01/20/2006 SOBE COMEDY FESTIVAUD. COOK 1 2732 2459 2732 01/21/2006 SOBE COMEDY FESTIVAUD. SPADE 1 1631 1358 1631 01/22/2006 DANCE AUDITIONS / PRO ACCESS 0 na na na 01/23/2006 MOVING OUT / CCE 8 12624 12351 1578 01/30/2006 PACO PENA/IAS 1 688 415 688 01/31/2006 DMITRI HVORTOVOSKY 1 1692 1419 1692 02/01/2006 XPLOR 3 na na na 02/04/2006 JULIO BOCCA/CAF 1 1838 1565 1838 02/06/2006 BERLIN ORCHESTRA 1 1660 1387 1680 02/08/2006 PROGRAM III/MCB 3 4723 4450 1574 02/14/2006 NUEVO ESPANOUCAF 1 1052 779 1052 02/15/2006 JERUSELUM SYMPHONY 1 1411 1138 1411 02/18/2006 SOUTHBEACHBHANGRA 1 1592 1319 1592 02/20/2006 HAIRSPRAY/CCE 8 10468 10195 1309 03/01/2006 PROGRAM IV/MCB 3 3415 3142 1138 03/08/2006 ISRAELI CONCERT 1 1902 1629 1902 03/10/2006 RAY ROMANO/LIVE NATION 1 2196 1923 2196 03/11/2006 FOREVER TANGO/NYK 2 3298 3025 1649 03/16/2006 RUSSIAN NATL ORCH/CAF 1 1593 1320 1593 03/18/2006 DORA THE EXPLORER 5 13118 12845 2624 03/23/2006 CAM JANSENrrHEATERWORKS 1 na na na 03/25/2006 ST. PETE BALLET/IAS 2 1202 929 601 03/31/2006 BALLET ETUDES 2 2325 2052 1163 04/03/2006 BALLET FOR THE CHILDREN/FINE 1 na na na 04/04/2006 LAECK SISTERS/CAF 1 1020 747 1020 04/06/2006 RUTTERDAM PHILHARMONIC 1 1440 1167 1440 04/07/2006 MIAMI LIGHT PROJECT 1 982 709 982 04/17/2006 MAXIMUM DANCE 3 na na na 04/21/2006 AVIDA 1 na na na 04/25/2006 WYNTON MARSALIS 1 2101 1828 2101 04/28/2006 DAVID COOPERFIELD 2 5265 4992 2633 04/29/2006 KATT WILLlAMSIWORLDWIDE 1 1835 1562 1835 04/30/2006 ITZAK PEARLMAN 1 2644 2371 2644 05/01/2006 MAMMA MIA/CCE 8 14157 13884 1770 05/13/2006 CLIO AWARDS 2 na na na 05/19/2006 BRAZIL POP/REGGAE 1 829 556 829 OS/20/2006 JVC JAZZ/FESTIVAL PROD. 1 759 486 759 OS/24/2006 MDCP GRADUATIONS 2 na na na OS/26/2006 ANACAONA/ ARTS SPACE 2 2269 1996 1135 06/04/2006 JCC DANCE FESTIVAL 1 1238 965 1238 , 06/10/2006 BRAZILIAN FILM FESTIVAL AWARDS 1 818 545 818 06/14/2006 MIAMIINTL UNIV.I GRAD 1 na na na 06/1712006 HP CONFERENCE 2 na na na 06/24/2006 SIN BANDERAlNYK 1 1691 1418 1691 06/25/2006 BALLET ETUDES 1 2551 2278 2551 7/3/2006 PARKS AND REC 1 na na na 7/15/2006 SWIMWEAR SHOW 1 na na na 7/21/2006 PAQUITO D'RIVERAlEXILlO 1 1515 1242 1515 08/01/2006 RHIANNA MUSIC VIDEO 0 na na na 08/03/2006 BALLET FOLKLORICO DE COLUMBIA 2 1631 1358 816 08/05/2006 GUILLERMO GUEDES/NYK 1 2555 2282 2555 09/08/2006 INTERNATIONAL BALLET/PABLO PENA 2 2110 1837 1055 09/14/2006 GAD ELMALEH 1 1699 1426 1699 09/15/2006 GMCVB GENERAL SESSIONS 3 na na na 09/28/2006 PRIVATE EVENT/BARTON G 1 na na na # of events = 73 127 154127 139658 JACKIE GLEASON THEATER 2004-2005 Total Attendance Including Comps Paid Average Attendance Average Attendance Show Date{s) Show # Shows Attendance IIncl. ComDs) wlo Com s 10/2/04 TANGO KINESIS 1 1,261 640 1,261 ""';""li:!lli!lO 10/12/04 GEORGE CARLIN 1 2,696 2,581 2,696 1 0/22/04 MTV VIDEO MUSIC AWARDS 1 1,663 - 1,663 10/24-25/04 MORRISSEY IN CONCERT 2 3,110 3,021 1,555 10/29/04 THE TOM JOYNER MORNING SHOW 1 2,610 - 2,610 10/30/04 RAPHAEL IS BACK IN MIAMI 1 2,443 1,896 2,443 11/1/04 ST, PETERSBURG PHILHARMONIC 1 2,148 1,178 2,148 11/5-7/04 MIAMI CITY BALLET - PROGRAM I 3 4,823 3,396 1,608 11/8/04 THE LION, THE WITCH & THE WARDROBE 1 1,393 n/a 1,393 la 11/13/04 TANGO UNDRESSED 1 749 489 749J~i: :!-::i:~~:~~, ~~"t~;:~~ir48 9 11/14/04 THAI CLASSICAL DANCE 1 1,167 961 1,167 1 11/19/04 KRAFTWERK 1 2,018 1,800 2,018 11/21/04 DRESDEN PHILHARMONIC 1 1,404 987 1,404 12/1/04 A CHRISTMAS CAROL 2 2,115 n/a 1.058 12/4/04 RADIO PARASIO 88,5 F,M 1 2,153 2,425 2,153 ~;l2'425 12/6/04 NIGHTS OF ANGELS 1 937 937 937 12/10-12/04 MIAMI CITY BALLEY - NUTCRACKER 5 10,482 7,477 2,096 12/15/04 PREMIOS FOX SPORTS 1 1,000 - 1,000 12/18-19/04 BALLET ETTUDES - NUTCRACKER 3 5,512 5,512 1,837 1/4/05 The Special Event 1 N/A N/A N/A i~~iiit:i~~~,Jii':<j~!;P:fl~'i~"N/A 1/8/05 FIELDS OF DREAMS 1 150 n/a 150 111 0/05 MOSCOW PHILHARMONIC 1 2,284 2,284 2,284 1/14-16/05 MIAMI CITY BALLET - PROGRAM II 3 6,240 6,240 2,080 1/18-23/05 THOROUGHLY MODERN MILLIE 8 7,840 6,567 980 1/25/05 PRAGUE SYMPHONY ORCHESTRA 1 1,754 1,754 1,754 1/30/05 MIGUEL MAIN'S FLAMENCO FESTIVAL 1 1,831 1,831 1,831 2/1/05 ST,PETERSBURG BALLET 1 1,502 1,166 1.502 2/3-4/05 DAVID COPPERFIELD - BROADWAY SERIES 4 9,741 9,321 2,435 2/5-6/05 JACKIE MASON IN CONCERT 2 3,663 3,530 1,832 2/11-13/05 MIAMI CITY BALLET - PROGRAM III 3 5,818 3,439 1,939 2/14/05 DEUTSCHE PHILHARMONIC 1 1,600 1,019 1,600 2/15/05 BALLET TROCKADERO OF MONTE CARLO 1 1,627 887 1,627 2/18-19/05 FLAMENCO FESTIVAL USA 2 3.810 2,202 1,905 2/24/05 PACO PENA & HIS FLAMENCO DANCE 1 1,031 669 1,031 3/1/05 HEBREW SATELLITE 1 1,500 n/a 1,500 3/3/05 ORLANDO BALLET 1 1,433 543 1,433 3/4/05 ELVIS COSTELLO IN CONCERT 1 1,958 1,630 1,958 3/5/05 MARGARET CHO IN CONCERT 1 2,613 2,613 2,613 3/8-13/05 OLIVER 8 9,274 8,100 1,159 3/18-20/05 MIAMI CITY BALLET - PROGRAM IV 3 5,818 3,099 1,939 3/29-4/3/05 THE PRODUCERS--Mar/Apr 8 14,553 13,923 1,819 4/5/05 BALLET FOR THE CHILDREN 2 2,600 n/a 1,300 4/8/05 LENNY KRAVITZ IN CONCERT 1 2541 2,541 2,541 4/9/05 DRESDEN STAATSKAPELLE 1 1,082 1,082 1,082 4/10/05 ALBITA IN CONCERT 1 1,428 1,428 1,428 4/14/05 CORDUROY 1 1,710 n/a 1,710 4/16-17/05 BALLET ETUDES - SWAN LAKE 2 3306 2.215 1,653 4/22/05 BASIA Feat. MATT BIANCO IN CONCERT 1 2,004 1,898 2,004 5/4/05 CACHAO & THE MAMBO ALL STARS 1 1,535 564 1,535 5/7/05 Society for Magnetic resonance 2 N/A n/a N/A 5/15/05 In'l Oil Spill Convention 1 N/A n/a N/A 5/15/05 ST. THOMAS UNIVERSITY 1 1900 - 1,900 5/24-25/05 2005 CLIO AWARDS 2 700 - 350 6/3/05 JVC JAZZ FESTIVAL 1 1,636 1,636 1,636 6/5/05 ISREALI DANCE FESTIVAL YACHAD 1 1,059 526 1,059 6/6-12/05 BRAZILIAN FILM FESTIVAL 1 1573 7,467 1,573 6/24/05 ALANIS MORISSETTE IN CONCERT 1 6647 2,745 6,647 6/28/05 HOOTERS INTL SWIMSUIT COMPETITION 1 1,800 - 1,800 7/9/05 BALLET ETUDES-SUMMER RECITAL 1 2,307 2,105 2,307 7/14/05 PARKS AND RECREATION EVENT 2 100 - 50 7/15/05 AMAL HAYATI MIDDLE EAST.DANCE 1 760 760 760 7/18/05 SWIMWEAR SHOW 2005 1 2500 - 2,500~;';"",: ";':::::'~~i,'~:fnJa 8/23-9/2/05 PM REHEARSALS - PAUL McCARTNEY 11 n/a - n/a 9/17-18/05 10th ANNUAL BALLET FESTIVAL OF MIAMI 2 2,931 2,106 1,466 9/22/05 IACOP 4 N/A n/a N/A 9/30/05 HURRICANE KATRINA RELIEF PERFOR. 1 355 273 355 # of events = 61 127 176,198 131,463 JACKIE GLEASON THEATER 2003 - 2004 Total Allendance Including Paid Average Allendance Average Allendance Show Oatelsl Show # Shows Como. Allendance (Incl. Comps) (w/o Com s 1 0/3-5/03 MCB PROGRAM I 3 5,443 3,177 1,814 10/10/03 PABLO MONTERO 1 1,251 1,251 1,251 10/12/03 VIVA PUENTE 1 2,442 380 2,442 10/24/03 MTV LATIN VIDEO MUSIC AWARDS 1 1,527 1,527 10/26/03 CESARIA EVORA 1 1,410 1,267 1,410 10/26-27/03 MIKE MULLIGAN 2 238 212 119 10/31-11/2/03 MCB PROGRAM II & YOUNG 3 1,927 3,373 642 1 11/6/03 CANADA'S NATL ARTS ORCHESTRA 1 2,452 617 2,452 l1n/03 LEWIS BLACK & DAVE ATTELL 1 3,605 2,237 3,605 11/15/03 BODYBUILDING & FITNESS CHAMPIONSHIPS 3 6,188 3,115 2,063 11/18/03 US NAVY JAZZ ENSEMBLE 1 1,085 n/a 1,085 11/22/03 DAVID BISBAL 1 1,085 2,144 1,085i l:i:~7!f,41:;f'2; ~1'44 11/23-24/03 TOM SAWYER 2 2,694 1,3471:, < 11/26/03 GUSTAVO CERATI 1 1,330 1,154 1,330[ 11/28/03 PIMPINELA & DYANGO 1 1,611 1,417 1,611 11/29/03 MIDACHI 1 2,016 860 2,016 12/4/03 KRASNOYARSKY NAT'L DANCE COMPANY 1 2,059 1,252 2,059 12/5/03 CHRIS ROCK IN CONCERT 1 2,698 2,550 2,698 12/6/03 JESUS A ROMERO 1 2,346 1,992 2,346 12/12-14/03 THE NUTCRACKER 5 10,586 7,590 2,117 12/20-21/03 BALLET ETUDES - NUTCRACKER 2 4,813 3,480 2,407 12/27 -28/03 MOSCOW STARS ON ICE / NUTCRACKER 2 2,611 1,620 1,306 12/31/03 BB KING IN CONCERT 1 2,258 2,025 2,258 1/2/04 SALUTE TO VIENNA 1 973 670 973 1/3/04 VIDA BLUE 1 1,638 1,427 1,638 1/14/04 YO YO MA 1 2,692 2,423 2,692 1/16/04 NORMA 1 2,585 1,346 2,585 1/17104 BUSTER POINDEXTER 1 730 491 7306'" 1/20-25/04 JESUS CHRIST SUPERSTAR 8 8,730 7,718 1,091 1/27/04 RUSSIAN NATL ORCHESTRA 1 1,466 860 1,466 1/28/04 MOSCOW RADIO SYMPHONY 1 1,676 1,034 1,676 1/30-2/1/04 LORD OF THE DANCE 5 4,363 4,105 873 2/2/04 PACO PENA 1 1,410 1,067 1,410 <1'067 2-6-8/04 MCB PROGRAM III 3 6,669 3,956 2,2231." 2/24-29/04 42ND STREET 8 12,248 11,480 1,531 3/1/04 HARRIET TUBMAN 1 618 n/a 618 3/2/04 ST PETERSBURG BALLET 1 927 927 927 3/5/04 CZECH PHILHARMONIC 1 799 799 799 3/6/04 MOSCOW BALLET 1 1,124 1,124 1,124 3/8/04 Prudential Convention 2 N/A n/a N/AI 3/12-14/04 MCB PROGRAM IV 3 3,778 3,832 1,2591" 3/16/04 THE STROKES 1 2,710 2,529 2,710 ',,' 3/24/04 ISRAEL SYMPHONY 1 2,371 1,562 2,371 3/26/04 SHEN WEI DANCE ARTS 1 1,645 1,135 1,645 '135 3/27/04 CINCINNATTI SYMPHONY 1 1,574 778 1,574 '1'778 3/28-29/04 LET FREEDOM SING 1 132 132 3/31-4/4/04 CHICAGO 8 10398 9,884 1,300 1236 4/5/04 LET FREEDOM SING 1 1,658 1658 """0 417-11/04 STOMP 8 10,953 10,953 1,369 1'369 4/13/04 BALLET FOR THE CHILDREN 1 1,132 n/a 1,132 :"enle 04/17-18/04 SLEEPING BEAUTY 2 3,074 1,937 1,537 969 4/21/04 PHILIP KRIKOROV & ANASTASIA STOTSKY 1 1,238 763 1,238 4/24/04 JOSH GROBAN IN CONCERT 1 2,702 2,611 2,702 4/26/04 STUART LITTLE 1 1,904 n/a 1,904 4/28/04 SUMMER OF THE SWANS 1 134 107 134 4/29/04 MOSCOW CHAMBER ORCHESTRA 1 1,744 849 1,744 5/7/04 RENNIE HARRIS FACING MEKKA 1 1,303 674 1,303 5/8/04 KENNY G IN CONCERT 1 1,725 1,466 1,725 5/11-16/04 CATS 8 13,687 12,467 1,711 5/20/04 THE PROMISE 1 893 83 893 5/22/04 MIAMI CITY BALLET 1 1,206 696 1,206 i"'~ 5/26/04 Met Life 1 N/A n/a N/AI", 6/9-10/04 2004 COMMENCEMENTS - MIAMI DADE 6 15,000 2,500 6/12-13/04 POETRY IN MOTION PEACHES SCHOOL 2 1,301 1,097 651 6/18-20/04 GREASE 5 5,522 4,723 1,104 6/30/04 HOOTERS INT'L SWIMWEAR 1 1,200 n/a 1,200 7/3/04 EDNITA NAZARIO IN CONCERT 1 2,487 1,125 2,487 7/10/04 THE ROBERT BAILEY COMEDY EXTRA 1 2,075 1,755 2,075 7/18/04 2004 AMERICAN BLACK FILM FESTIVAL 1 1,801 130 1,801 .,tfj 7/31/04 BALLET ETUDES - FOREVER DANCE 1 1,879 2,169 1,879 1';";; 8/6/04 KID ABELHA IN CONCERT 1 1,193 487 1,193 9/5/04 CHARLEY GARCIA 1 1,129 449 1,129 'I', 9/9/04 BEBO & CIGALA IN CONCERT 1 2,115 2,115 2,115 """'2, 9/11-12/04 IX INT'L BALLET FESTIVAL 2 1,112 1,112 556 ,.'Ii 9/21-24/04 MAMMA MIA 4 5,979 5,402 1,495 '1351 # of events = 73 148 221,077 154,030 JACKIE GLEASON THEATER 2002- 2003 Total Attendance Paid Average Average Attendance (Incl. Attendance Show Oatels) Show # Shows Including Comos Attendance Comosl w/o Com s 10/12/02 RUBEN BLADES 1 1,792 1,570 1,792 570 10/16/02 DAVID SEDARIS 1 1,576 1,433 1,576 433 10/24/02 MTV VIDEO MUSIC AWARDS 1 2,400 2,400 10/26/02 GILBERTO SANTA ROSA 2 5,169 4,293 2,585 10/27-28/02 MOTHER GOOSE/STORY THEATER 3 2,121 707 11/2/02 ELVIS COSTELLO IN CONCERT 1 2,586 2,443 2,586 11/8.10/02 MIAMI CITY BALLET PROGRAM I 3 7,131 4,033 2,377 11/15-16/02 JULIO BOCA AND BALLET ARGENTINO 2 3,605 2,112 1,803 11/21/02 ORCHESTRA DE SAO PAULO IN CONCERT 1 1,570 795 1,570 11/22-24/02 EL GUARDIAN DE LA NAVIDAD 5 3,494 1,805 699 11/26/02 CAETANO VELOSO IN CONCERT 1 2,667 2,475 2,667 11/27/02 GRAN BALLET FOLKLORICO DE MEXICO 1 1,246 532 1,246 11/30-12/2/02 BALLET ETUDES NUTCRAKER 2 5,101 3,559 2,551 12/3-8/02 RIVER DANCE 8 10,923 9,699 1,365 12/6-7/02 CHARLOTTES WEB-STORY THEATER 3 1,878 289 626 12/9/02 ENCORE CHAMBER THEATER 1 1,815 n1a 1,815 12/13-15/02 MCB NUTCRACKER 5 11,010 7,917 2,202 12/16/02 A XMAS CAROL-LIVING ARTS 2 4,633 n/a 2,317 12/20/02 ST PETERSBURG BALLET 1 1,866 981 1,866 12/21-22/02 A TRIBUTE TO THE BEATLES 2 2,113 1,000 1,057 12/29/02 THREE MO' TENORS 1 1,306 1,121 1,306 1/1/03 THE MYSTICAL ARTS OF TIBET 1 784 734 784 117-12/03 LES MISERABLES 8 16,491 15,435 2,061 1/18-19/03 JACKIE MASON 2 3,389 3,281 1,695 1/21/03 JERUSALEM SYMPHONY 1 1,877 1,536 1,877 1/24-26/03 MCB PROGRAM II & BALLET FOR THE YOUNG 3 7,399 4,235 2,466 1/28-2/2/03 MISS SAIGON 8 15,766 14,142 1,971 2/4/03 NEW YORK PHILHARMONIC IN CONCERT 1 2,358 2,006 2,358 2/5/03 PHILIP KIRKOROV IN CONCERT 1 1,810 1,634 1,810 217-9/03 DANCE THEATER OF HARLEM 5 5,620 3,758 1,124 2/8/03 THE PRINCESS AND THE PEA 1 347 345 347 2/11/03 BOSTON POPS ORCHESTRA IN CONCERT 1 2,351 2,017 2,351 2/21-23/03 MCB PROGRAM III 3 7,585 4,442 2,528 2/25-3/2/03 THE FULL MONTY 8 10,845 9,416 1,356 A READING RAINBOW 1 1,952 n1a 1,952 3/4/03 BALLET TROCKADERO 1 2,487 1,865 2,487 3/12103 CELIA CRUZ-AZUCAR 1 2,237 2,143 2,237 3/14.16/03 FOREVER TANGO 3 5,355 3,326 1,785 3/17/03 US ARMY FIELD BAND 1 1303 n/a 1,303 3/22-23/03 ST PETERSBURG BALLET 2 1,310 1,481 655 . '/741 3/28-30/03 MCB PROGRAM IV 3 7,006 3,897 2,335 1299 4/6/03 ATLANTA SYMPHONY 1 1,896 908 1,896 908 4/8/03 BALLET FOR THE CHILDREN 2 3,800 n/a 1,900 4/9/03 THE MYSTERY OF KING TUT 1 824 824 824 4/24/03 VALERY LEONTIEV 1 1,650 1,373 1,6501"""" 4/26-27/03 GISELLE 2 2,422 1,326 1,211 5/3/03 PINOCCHIO 2 3,379 351 1690 4/28-5/4/03 MIAMI GAY & LESBIAN FESTIVAL 25 5,069 1,431 203 5/5/03 JUANES IN CONCERT 1 2,729 2,274 2,729 5/8/03 NANCY WILSON IN CONCERT 1 1,064 611 1,064 5/9/03 MIDACHIIN CONCERT 1 2,283 1,852 2,283 5/10/03 DAVE CHAPELLE IN CONCERT 1 2,688 2,528 2,688 5/16/03 INDIA ARIE IN CONCERT JAZZ FESTIVAL 1 1,782 3,000 1,782 5/17/03 GEORGE BENSON JAZZ FESTIVAL 1 2,204 2,204 5/19/03 SAFETY KIDS 1 300 300 a 6/1/03 MCB STUDENT RECITAL 1 1,334 582 1,334 6/6-8/03 ELAN VITAL 2 4,900 2,450 6/13/03 NA TILUS BAND CONCERT 1 458 330 458 6/14/03 LOS NOCHEROS 1 1,674 1,271 1,674 6/16,22-03 BLACK FILM FESTIVAL 2 3,709 178 1,855 6/25/03 DIEGO TORRES 1 1,792 931 1,792 6/26-29/03 DORA THE EXPLORER 9 12,817 10,470 1,424 7/11/03 LA LEY 1 1,709 1,000 1,709 7/17-19103 DAVID COPPERFIELD 4 9,016 7,412 2,254 7120/03 FITO PAEZ 1 1,982 1,278 1,982 7/26/03 ALL THAT DANCE 1 2,304 n/a 2,304 7/27103 FLORIDO DANCE 1 1,501 1,408 1,501 8/8/03 2002 BILLBOARD R&B HIP HOP AWARDS 1 1,098 1,098 8/16/03 CARLOS MANUEL 1 1,468 581 1,488 9/6-7/03 VIII INTERNATIONAL BALLET FESTIVAL 2 2,611 1,611 1,306 9/13-14/03 EL PUMA/RAUL DIBLASIO 2 3,837 2,624 1,919 9/21/03 MTV2 $2 BILL SERIES CONCERT 1 2,700 2,660 2,700 9/25/03 MERCEDES SOSA 1 2,211 1,638 2,211 9/26/03 MARGARET CHO 1 1,811 1,678 1,811 # of events = 74 177 265,316 173,880 ATIACHMENT 8 EXISTING VENUES IN THE TRI-CQUNTY AREA Venue County Approx. Capacity Joseph Caleb Center Gusman Cultural Center (Miami) Miccosukee Resort Miami PAC/Carnival Music Hall Miami PAC/Ziff Ballet-Opera House Dade County Auditorium James L. Knight Center/Miami Convention Center Waterfront Theater @ American Airlines Arena UM Convocation Center (BankUnited Center) Bayfront Park Amphitheater Miami Arena American Airlines Arena Dolphins Stadium Orange Bowl Gulfstream Park Theater Coral Springs Center for the Performing Arts Broward Center/Amaturo Theater Sinatra Theater @ Bank Atlantic Center Seminole Hard Rock Casino Pompano Beach Amphitheater Bank Atlantic Center Kravis Center Mizner Park Amphitheater (Boca Raton) Sound Advice Amphitheater (West Palm Beach) Miami-Dade Miami-Dade Miami-Dade Miami-Dade Miami-Dade Miami-Dade Miami-Dade Miami-Dade Miami-Dade Miami-Dade Miami-Dade Miami-Dade Miami-Dade Miami-Dade Broward Broward Broward Sroward Broward Broward Sroward Palm Beach Palm Beach Palm Beach 1,000 1,711 2,000 2,200 2,400 2,429 4,900 1,000 - 5,800 7,000 12,000 14,700 20,000 80,000 80,000 420 1,471 2,700 3,000 5,500 10,000 20,000 2,193 3,500 20,000 ........ ..0 o .......... ~ .... .......... o .... 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Cl.l III o .., ATTACHMENT D . ver'7on wireless THEATER IEvents And Tickets at: Verizon vVireless Theater I I I I Thursday, Hawthorne Heights, Relient K, plain White 1"s, - 10/19/06 Emery, The Sleeping I I - Sunday, Evanescence, Revelation Theory i 10/22/06 I : Friday, Dreyfus Presents Peter Frampton - 10/27/06 I I I Sunday, Nick Lachey , Joanna, Dirtie Blonde - 10/29/06 Thursday, Tourgasm with Robert Kelly, Jay Davis, Gary - 11/2/06 Gulman Friday, Primus, Drums & Tuba - 11/3/06 Monday, The Fray, The Damnwells - 11/6/06 g Subscribe to RSS Feed for Verizon Wireless Theater I Tools: Verizon \Vireless Theater - Venue Info Tabernacle ~f:~ ~4;--l:, , ".. ",. . , .' .; "'..~.". \. .. , t' J~ ~ ~ - - - .~ iiI;Oij~ ..... '. ~ ~, J," ':f: IEvents And TIckets at: The Tabernacle Wednesday, Scissor Sisters:: PARKING -I 10/18/06 I Wednesday, Scissor Sisters - 10/18/06 Thursday, Pet Shop Boys - I 10/19/06 Friday, Nick Lachey :: Parking - I 10/20/06 Friday, Nick Lachey - 10/20/06 I Saturday, Paul Stanley:: PARKING - I 10/21/06 I Saturday, Paul Stanley - 10/21/06 I I I-I Sunday, Etta James with Special guest James Hunter : 10/22/06 I Sunday, Tabernacle Parking Etta James I-I 10/22/06 Wednesday, Social Distortion I-I 10/25/06 Wednesday, Tabernacle Parking: Social Distortion -I 10/25/06 I I Thursday, Robert Randolph &. The Family Band:: PARKING -I i 10/26/06 i Thu"day, Robert Randolph &. The Family Band with special -I 10/26/06 guest Ryan Shaw I Friday, The Dec:emberists :: PARKING -I 10/27/06 Friday, The Dec:emberists -I 10/27/06 Saturday, Lewis Black Red, White and Screwed -I 10/28/06 Saturday, Tabernacle Parking: Lewis Black -I 10/28/06 Monday, The Fray :: Parking I-I 10/3 % 6 Monday, The Fray with special guest The Feeling -I 10/3 % 6 Tuesday, Lyfe Jennings :: PARKING -I 10/31/06 Tuesday, Lyfe Jennings -I 10/31/06 Wednesday, The Cult:: PARKING -I 11/1/06 Wednesday, The Cult -I 11/1/06 Thursday, MTV $2 Bill Featuring 30 Seconds to Mars:: PARKING -I 11/2/06 I I MTV $2 Bill Featuring 30 Seconds to Mars with Head I-I Thursday, ~ 11/2/06 Automatica, The Receiving End of Sirens, Roel< Kills Kid, & Cobra Starship I Friday, 11/3/06 Gov't Mule:: PARKING I-I I I Friday, 11/3/06 Gov't Mule with special guest Donavon Frankenreiter I-I I , i I-I ; Saturday, Gov't Mule:: PARKIN G 11/4/06 I Saturday, Gov't Mule with special guest Donavon Frankenreiter I-I 11/4/06 Monday, Primus:: PARKING -I I 11/6/06 Monday, Primus -I 11/6/06 I Friday, DJ Tiesto -I 111/1 % 6 I Saturday, Comedy Central Live Presents Carlos M encia Punisher -I 11/11/06 Tour Sunday, My Morning Jael<et :: PARKING -I 11/12/06 Sunday, My Morning Jael<et with Wax Fang -I 11/12/06 Monday, Bob Weir & Ratdog :: PARKING - 11/13/06 Monday, Bob Weir & Ratdog - 11/13/06 Friday, Umphrey's McGee:: PARKING - 11/17/06 Friday, Umphrey's McGee with Outformation - 11/17/06 Saturday, Keller Williams:: PARKING - 11/18/06 Saturday, Keller Williams - 11/18/06 I I-I I Sunday, Imogen Heap:: PARKING I 11/19/06 I I Sunday, Imogen Heap I-I I 11/19/06 : I 1-' I Saturday, Deftones :: PARKING I 11/25/06 I I I Saturday, Deftones with Deadsy 1-' I 11/25/06 I I ; Thursday, John Legend:: PARKING I-I 111/30/06 , I I-I I I Thursday, John Legend with Robin Thicke 11/30/06 I I Saturday, Ray Lamontagne:: PARKING I-I 112/9/06 I I -I I Saturday, Ray Lamontagne 12/9/06 I I Tuesday, Zappa Plays Zappa Premium Audion -I I 12/12/06 Tuesday, Zappa Plays Zappa -I 12/12/06 Friday, Sound Tribe Sedor 9 - 3 Day Pass -I 12/29/06 Friday, Sound Tribe Sedor 9 -I 12/29/06 Saturday, Sound Tribe Sedor 9 -I 12/30/06 Sunday, Sound Tribe Sedor 9 -I 12/31/06 ~ Subscribe to RSS Feed for The Tabernacle Tools: The Tabernacle - Venue Info . THE FILLMORE . . : ~l ... ':. .. . :.) ~~~~. .. ". fit." · ~""~ .)').~ r...6 ~.):... . . ~ "?' f ~.. .,~' .:::'-f',- ~'::""';"::~'.'~' 1.'0: .....r~~I../',.:.~~~>.' ~1' :'/.' .. ",;.:.,. { '.~ I ,." f r ~ . . IEvents And lickets at: The Fill more I Tuesday, Edie Brickell & New Bohemians with Joe Purdy - 10/17/06 I I Wednesday, Jonny Lang, Reeve Carney presented by Redken - ! 10/18/06 Thursday, Yo La Tengo with The Chairs of Perception - 10/19/06 Friday, Yo La Tengo with Whysall Lane - I 10/20/06 I i I Saturday, Yo La Tengo with Why? - 110/21/06 ; I Sunday, + 44 Rescheduled for Tuesday, December 12 Rescheduled 10/22/06 I I Monday, OJrsive with The Thermals, Chin Up Chin Up I-I 110/23/06 I Tuesday, Luanda Williams with Heartless Bastards -I 10/24/06 I Wednesday, Luanda Williams with Heartless Bastards - 10/25/06 Thursday, India Arie with Robin Thicke, Anthony David - 10/26/06 Friday, India Arie with Robin Thicke, Anthony David - 10/27/06 Saturday, Galactic with stanton Moore Trio - 10/28/06 Sunday, Regina Spektor with Only Son - 10/29/06 Monday, Jenny Lewis with The Watson Twins, Benji Hughes - 10/30/06 I Tuesday, Halloween with The Cramps with Demolition Doll - 10/31/06 Rods, Groovie Ghoulies I I Wednesday, Silverstein with Aiden, It Dies Today,Scary Kids - 11/1/06 Scaring Kids and The Blackout Pact Thursday, Reel Big Fish with Streetlight Manifesto, Suburban - 11/2/06 Legends, Westbound Train Friday, 11/3/06 Marianne Faithfull Cancelled Saturday, Joan Jett & The Blackhearts with Eagles of Death I-I 11/4/06 Metal Monday, Sia with The Bird and The Bee I-I 11/6/06 Tuesday, Norma Jean with Between the Buried and Me, Fear I-I 11/7/06 Before the March of Flames, Misery Signals, Bless the Fall Wednesday, Deftones I-I 11/8/06 Thursday, Sierra Leone's Refugee All stars I-I 11/9/06 Friday, The Beautiful South I-I 11/10/06 Saturday, The Mutaytor with Kan'nal 11/11/06 -I I Sunday, Blind Guardian with Leaves Eyes - 111/12/0 ~ Monday, Paul Stanley - 11/13/06 I - I Tuesday, Lyfe Jennings with Shareefa, Algebra 11/14/06 Wednesday, Frank Black with Kentucky Prophet - 11/15/06 I - I Thursday, DelTha Funky Homosapien with Mike Relm, Motion 111/16/06 Man, Bukue One, A-Plus, Psalm One Friday, The Meters (Art Neville, George Porter Jr., Leo - 11/17/06 Nocentelli, Zigaboo Modeliste) i - I Saturday, The Meters (Art Neville, George Porter Jr., Leo 11/18/06 Nocentelli, Zigaboo Modeliste) I Sunday, Julieta Venegas with Los Abandoned - I 11/19/06 Wednesday, Maceo Parker - 11/22/06 Friday, Prodigy - 11/24/06 Sunday, An Evening With Cat Power &. The Memphis Rhythm - 11/26/06 Band - Early Show Sunday, An Evening With Cat Power &. The Memphis Rhythm - 11/26/06 Band - Late show Wednesday, Ozomatli - 11/29/06 Thursday, Ozomatli - 11/30/06 Sunday, Black Label Society Rescheduled 12/3/06 Tuesday, ...and you will know us by the trail of dead with I-I 12/5/06 Blood Brothers Wednesday, Wolfmother with Silversun Pickups, Simon Dawes 112/6/06 I I Friday, 12/8/06 I I I Saturday, I 12/9/06 I I I I Sunday, 112/10/06 I Los Lobos &. Calexico .. .. .. .. .. .. .. .. Los Lobos &. Calexico The New Cars with Persephone's Bees Tuesday, 12/12/06 plus 44 with The Matches Thursday, 12/14/06 Senses Fail with Saosin, Bleeding Through, I am the Avalanche Tuesday, 12/26/06 Blackalicious I I I Wednesday, I 12/27/06 I Blackalicious ~ Subscribe to RSS Feed for The Fillmore i Tools: The Fillmore - Venue Info INFO LINE Venue phone - info line 415-346-6000 PARKlliG The Fillmore San Francis co does not have a parking lot, there are public lots in the vicinity, the closest lot is atthe Kubuki AMC Cinema 8 Center Geary and Fillmore. I ACCESmILITY For handicap seating please call 415-346-3000 I KID POLICIES No babes in arm s, you must be able to walk in with a ti cket to attend the show (unless otherwi se noted). . Access for two to exclusive Rock St ar Part ies . $15 Gift Card from Amoeba Records . $15 iTunes~ Gift Card -load up your iPod~ · i-year subscription to SPIN music magazine . Plus, a won derfu I room you'll love starting at $249. WOW! For $1,000 per night, you can bookthe UI ti mate Rock Star package and get all of the above plus: . Two ticket s to any concert at Sh oreli ne Am phitheat er, The Fi 11m ore or T he Warfiel d th eaters · Round-trip transportation in a luxury Town Car to the concert venue . Plus, an upgrade to our Extreme Suite on the top floor with fully stocked pantry and martini bar Set in the heart of downtown San Francisco's "South ofMarket,"WSan Francisco is adjacent to S FM 0 MA, bloc ks away from Union Squ are and near an ec lecti c array of boutiq ues, nightc lubs, theaters, and ga lIeries. Loun ge in the W Living Room and quench your spirit with a c ocktai I from x:rZ Bar or tem pt you pa late with modern Californian cui sine at x:rZ Restaurant. Gett ing ready for t he bi g night or need to recover from it? I ndulge in a sp a treatm ent at Bliss Sp a or rei ax in the pool wit h a view of the stars. Guest room perks include wonderful views of the San Francisco Bay Bridge and skyline, BIi ss bat h products, goos e down duvet s and pillows, 350-threa d count cotton sheets, Terry/pique spa robes, DVD and CD players, broadband high speed internet access, and What everjVVhen ever service. W San Francisco is located at 1813rd Street, San Francisco, CA(415) 777-5300. OR Radisson M iyako Hotel, 1625 Post St reet, San Fran cisco, CA 94115 415-921-4000 Web Site htt;p :lli dll no spitalitll. comln otelsl notel/361 CONTACT INFO Venue Information: call The Fillmore at 415 -346-6000 or email thefHlmore@lillenation.com Booking questi ons can be emailedtobooking@bgP.com. The original owner of The Fillmore property, Emma Gates Butler, hired James W. and Merritt Reid in 1910 to draw plans for an Italianate-style dance hall at the southwest corner of Fillmore and Geary. The Majestic Hall and Majestic Academy of Dancing opened in 1912 on the second and third stories of the building, where the usual fare was Wednesday night socials and masquerade balls. The Fillmore was a dance hall operating under various names and managements - The Get Acquainted Society, Ambassador Dance I Hall- through the 1930s, and a roller rinkthrough the 1940s. In 1952, I local entrepreneur Charles Sullivan began to book some of the biggest names in black music into The Fillmore. Sullivan booked I West Coast tours for performers including James BrO\Nn, Bobby 'Blue' I Bland and Ike & Tina Turner. During the 1950s and 1960s, San Francisco gained a reputation as the preeminent Bohemian I community in the United States. This reputation was never more deserved th an du rin g th e mi d- sixties, wh en th e hipster of th e Beat movement grew into the hippie of a more mainstream counter-culture. By th e 1950s, th e literary North Beach scen e h ad given way to th e emerging Haight-Ashbury, and radical politics had a niche across the Bay at the University of California at Berkeley. The line between I culture and politics is easily blurred by young people in search of adventure. In the search for fun and community, public dances became the craze in 1965. With Ken Kesey leading his band of Merry Pranksters to the outer limits of reality, and the Family Dog putting together dance concerts at Longshoremen's Hall, San Francisco was on its way to becoming the hip capital of the world. Bill Graham was a veteran of the artistic community, but his greatest talents were his keen business acumen and his ability to organize events, creating comfortable and safe atmospheres without stifling the creative energies around him. Maintaining high aesthetic standards and calling on limitless personal energy, Bill pulled together a workforce that functioned as a family, and was a prime nurturing force in San Francisco's burgeoning scene. In 1965, Bill Graham managed R.G. Davis's San Francisco Mime Troupe. The troupe's Commedia Del'Arte production of II Candelaio was deemed 'too risque' by the San Francisco Parks and Recreation Commission, but they performed it anyway and were subsequently busted. < I--[if Ivml]-- >_ Bill staged a benefit for the group's legal defense fund. The Family Dog offered its help and Bill, who had been concentrating on his mime troupe duties and was not aware of the dance craze, listed The Family Dog as performers on the 'Appeal' party poster, thinking they were a dog act. The November 6 fundraiser proved serendipitous; in seeking to raise money for the troupe and to increase awareness concerning censorship, Bill plugged into the vibrant youth scene. While many were drawn to the cause, many more were lured to the Howard Street loft by Jefferson Airplane, The Fugs, Sandy Bull, John Handy Quintet and 'Others Who Care.' Thousands flocked to the loft, and Bill successfully juggled the police, the door (and the back entrance), and the general mayhem to produce an event whiich united the nascent I' hippie community. Inspired by the success ofthe event, Bill held two more 'appeals' at The Fillmore Auditorium in December and January. I On February 4, 5 & 6, 1966, Jefferson Airplane headlined at The I Fillmore in Bill's first non-benefit concerts, marking the true beginning I of the company. By March, the youth happenings were a media- certified phenomenon, and the police didn't like it. Bill's request for a dance hall permit in his own name was denied. On April 1 9, Bill was again refused a permit and on the 22nd the police, incensed by a I cartoon in the previous day's San Francisco Chronicle, raided The I Fillmore and arrested 14 kids. Bill joined the fracas and ended up in I jail as well. I I I Public outrage concerning the police crackdown was registered in the , newspapers and charges against Bill were formally dropped on May 24. On June 6, the Boars of Permit Appeals reversed its decision and 1 certified Bill a 'dance-hall keeper.' Lets take a look at what The Fillmore was like then back during those 'history in the making' years. 'The greatest compliment I was ever given came at The Fillmore. It was Cream and the Butterfield Blues Band. I just happened to go into the rest room during a break. I was standing at the middle urinal when two guys came in after me, one on either side... right out of the blue, one said, 'I forgot. Who's playing here tonight?' Without batting an eyelash, the other guy said, 'I don't know, man. What's the difference? It's The Fillmore.' -Bill Graham The Fillmore represented the pinnacle of creative music making in the late 1960s. From December 10, 1965, when Bill Graham produced a San Francisco Mime troupe benefit (Jefferson Airplane with Great Society and Mystery Trend; the Warlocks, later the Grateful Dead, kicked off the shaw), until July 4, 1~68, The Fillmore audiences experienced a 2 1/2 year musical and cultural Renaissance that produced some of the most innovative, exciting music ever to come out of San Francisco. The careers of the Grateful Dead, the Jefferson Airplane, Santana, Quicksilver Messenger Service, Big Brother and the Holding Company, Moby Grape, the Butterfield Blues Band, and countless others were lau.nched from The Fillmore stage. The most significant musical talent of the day has appeared there: Jimi Hendrix, Oti s R eddi n g, Cream, H owl in' Wolf, Captai n Beefh eart, Mu ddy Waters, The Who - well, you get the picture. Or you've heard the stories. If you're lucky, you were there. A sample month of shows Bill presented at The Fillmore, August of 1967: Aug. 1-6: Muddy Waters, Buffalo Springfield, Richie Havens. Aug. 8-13: Electric Flag, with Moby Grape and Steve Miller Blues Band. Aug. 15-17: Chuck Berry and Charles Lloyd Quartet. with Steve Miller Blues Band opening. Aug. 18-19: Young Rascals and Charles Lloyd Quartet. Aug. 20-21: Count Basie Orchestra with Charles Lloyd Quartet. Aug. 22-27: Butterfield Blues Band and Cream. Aug. 29-31: : Cream, Electric Flag, Gary Burton. I Th e Fi II more was also used to stage n on- mu sical events, in clu di n g Michael McClure's The Beard; Leroi Jones'The Dutchman, performed on th e floor amon g th e au dien ce at a Byrds sh ow; a readi n g by Russian poet Andrei Voznesensky, paired with Jefferson Airplane (no other theater in the Bay Area would rent its space to a Communist); : Lenny Bruce's last public appearance on a bill also featuring Frank I Zappa and The Mothers of Invention; and Thanksgiving dinner for I Th e Fi II more fam ily an d frien ds, wh i ch became an an n ual traditi on . I Always, a Fillmore ticket was a ticket to see and hear the most exciting up-and-coming talents, in an exciting place, the place where it was all happening. It wasn't only because you'd be as likely to see Miles Davis opening forthe Grateful Dead as a three night run of Jefferson Airplane and Quicksilver Messenger Service with the Mothers of Invention opening the shO\N. Partly, it was the free apples in the gleaming copper bucket at the top of the ruby-carpeted I stairway. 0 r th e catered New Year's Day breakfasts ('With no powdered eggs, either.... -Bill Graham) Bill served for 1,200 afer a I t\Nelve-hour music and dancing marathon. 'There was very much a whole kind of Fillmore energy coming off the audience that combined with the band,' Eric Clapton remembers. 'When we played the Fillmore for the first time (with Cream) the band was in the light show. If you were in the audience, you didn't know who was playing. Not at all. It was a sensory thing" Bill Graham's policy of introducing Fillmore audiences to eclectic musical combinations turned on a generation to the music of people like Otis Rush, Junior Wells, Jimmy Reed, The Staple Singers and Rahsaan Roland Kirk. In the process, Bill created and refined the art and skill of modern concert production as audiences all over the country have come to know it. Bill invited artists like LeRoi Jones, Otis Redding, Lenny Bruce and Chuck Berry to play at The Fillmore - some with a simple phone call, but to woo Otis he wentto Macon, Georgia. He went to Wentzville, Missouri to sell Chuck Berry on The Fillmore in person. 'Back then, it was a brave move to mix up soul acts with the most extreme of white music at the time. Bill was the first one to do it in a big city on a regular basis,' The Stones' Keith Richards says. 'Especially in a community joint like The Fillmore where people virtually lived.. .Bill really did create an opportunity that changed a lot of things" Bill said farewell to The Fillmore on the Fourth of July with a show featuring Creedence Clearwater Revival, Steppenwolf and It's a Beautiful Day. The audience for the music had mushroomed, and the shows moved to the Carousel Ballroom at Market and Van Ness in San Francisco (later renamed the Fillmore West) and Winterland. That brought to a close one of the most seminal periods in The Fillmore's long and colorful history. I The Fillmore became a private neighborhood club for a time in the I 1970s, an din th e early 1980s, Pau I Rat produ ced sh ows at th e I building (dubbed the Elite Club) with Black Flag, Bad Brains, The Dead Kennedys, T.S.O.L., Flipper, Public Image Ltd. and others. Bill : Graham Presents produced a few events in the building in the 1980s, including the 20th anniversary party for the company, and filmed an HBO Fillmore music special there. In 1986, owners Bert and Regina I Kortz hired Michael Bailey to begin producing shows in The Fillmore. : The first show was Husker Du on April 30, 1986. But Bill always had a I special place in his heart for the first place he ever did shows. On I March 3, 1988, he returned to the original Fillmore with a show I featuring African reggae act Alpha Blondy & The Solar System and I Little Women. I I The nightclub wing of Bill Graham Presents produced shows in The Fillmore from March 1988 until the 1989 earthquake. Bill's death in a helicopter accident in October 1991 inspired everyone at Bill Graham Presents to finish one of Bill's final pet projects: to restore and once again make music in the building he loved more than any other. The Fillmore is carrying on in Bill's tradition by continuing to present the best popular music being made today. The Fillmore Now The Fillmore reopened April 27,1994 with The Smashing Pumpkins, Ry Cooder & David Lindley and American Music Club. Tickets for the show sold out in less than one minute. Linda Perry, formerly of 4 Non- Blondes, opened the show with a surprise set featuring a cover of Led Zeppelin's 'Whole Lotta Love.' The Fillmore's opening month lineup included Primus, Chris Isaak, Michelle Shocked, The Afghan Whigs & Redd Kross, Queen Latifah and Solsonics, Gin Blossoms, Jimmie Dale Gilmore and Marshall Crenshaw, D'Cuckoo and Pele Juju, Sir Douglas Quintet and The Hellecasters, Brian Setzer Orchestra, Mother Hips, Ali Farka Toure and Ben Harper, Huey Lewis and the News, NRBQ, Blues Traveler and Soul Hat, They Might Be Giants and Frentel, Counting Crows, Thinking Fellers Union Local #282, Steel Pole Bathtub and SF Seals, Twister - A Ritual Reality, performed by Ken Kesey and the Merry Pranksters with music by Jambay, Jefferson Starship, and Merl Saunders I I I Throughout the decade since the club celebrated it s re-opening, the I quality, variety and number of shows held there has been staggering. j The most appearances award would go to Tom Petty and the I Heartbreakers, who have played a total of 27 times at The Fillmore; I first a 20-show marathon; the second run a meager 7 nights. Los I Lobos brings down the house annually in December; Willie Nelson I and Lucinda Williams both appear to have a soft spot for The I Fillmore. No Doubt, Radiohead, The Cure, Sonic Youth, Prince, The White Stripes, Dave Chappelle and even Tom Jones have graced the stage multiple times. This last decade has also seen a range of Special Events hosted I there as well; from Drake High School s Senior Prom to a Rolling I Stones crew party. Mayor Gavin Newsome held his election night ; bash atthe Mo, and, there have been numerous award celebrations I and film wrap parties. May the shows keep coming, and, as Bill Graham always said, 'Enjoyl' :--:~::--;O:-~(~i. . -::>=~,~'\J~~' 1 ~~~!'~~ r~ ,...~f'" ,.~~ . ;"./J)...:/'..../ ,Y. _ J .......1.~ - C - - .; ~ - . .. - .. w ~ .........,...... t"' f \ HOT ElS Ffm.lIlr,t:."!..:;;.;.. 8T1\TE TIiEATI2E ~~ I IEvents And lickets at: State Theatre, Detroit I Wednesday, 10/18/06 ! I Thursday, I 10/19/06 I Friday, 10/20/06 I I Sunday, 1'0/22/06 Thursday, I 10/26/06 I I Friday, i 10/27/06 I Tuesday, I 10/31/06 The Killers The Fray with The Feeling Widespread Panic MTV $2 Bill presents: 30 Seconds to Mars with Head Automatica, Cobra Starship, Envy on the Coast &. Men, Women and Children Pet Shop Boys WRIF Presents - Trick or Freak: Buckcherry with o-ossfade &. Ashes of Soma 12th annual Hollowicked show Featuring The Insane down Posse .. .. .. .. .. .. .. I I -I I Thursday, Black Label Society I 11/2/06 I I -I I Friday, 11/3/06 Atreyu with From First To Last, Every Time I Die, Oliodos I -I I Wednesday, John Legend 111/8/06 I -I I Tuesday, Primus 111/14/06 I -I Wednesday, Rise Against, Thursday with Circa Survive, Billy Talent i 11/15/06 , i -I I I Wednesday, The New Cars 11/22/06 I Thursday, The Australian pink Floyd Show -I 11/30/06 I Tuesday, Keane with Razortight Cancelled 112/5/06 I I-I I Friday, 12/8/06 Brian Setzer Orchestra 5th Annual Olristmas Extravaganza I ~ Subscribe to RSS Feed for State Theatre, Detroit ; Tools: State Theatre, Detroit - Todays Show I ALTERED STATE EveJ:y Satunlay Night Doors @ lOPlVI Vote(l DetJ:oits Best Club Night 3 yean ill a Row! STATE BAR & GRILL OPENFOR EVERY TIGERS GAl'vlE Home of tbe $7 Pitchel' of Beer! THE STATE BAR & GRILL IS OPEN BEFORE AND AFTER ALL THEATRE AND MAJOR DOWNTOWN EVENTS FOR GREAT FOOD & DRINKS at W]llE~N _fLG I ,Events And llckets at: The Vviltern LG Wednesday, lhe Pogues with Murder by Death - 10/18/06 lhursday, lhe Pogues with The 88 - 10/19/06 Friday, lhe Pogues with Ollin and Angel City Outcasts - 10/20/06 Saturday, lhe Decemberists with Lavender Diamond - 10/21/06 Wednesday, Nintendo Fusion Tourfeaturing Hawthorne - 10/25/06 Heights with Relient K, Emery, Plain White Ts, lhe Sleeping lhursday, Jamie Cullum with special guest Josh Ritter - 10/26/06 I I Saturday, Evanescence with Revelation Theory - I 10/28/06 I '--I I Tuesday, Brazilian Girls with Under the Influence of 110/31/06 Giants !"ThUrSday, dleap Trick 1--1 11/2/06 I I Friday, Rise Against &. Thursday with Circa Survive and 1--1 11/3/06 Billy Talent I I I Saturday, Russell Peters --I I 11/4/06 , I --I I Sunday, Russell Peters I 11/5/06 I I I --I I Monday, Modest Mouse 111/6/06 Tuesday, Nick Lachey with Dirtie Blonde and Joanna --I 11/7/06 Wednesday, Pet Shop Boys --I 11/8/06 I I "Thursday , Pet Shop Boys --I I 11/9/06 Friday, Lindsey Buckingham --I 11/1 % 6 Saturday, pink Martini --I 11/11/06 Sunday, Vince Gill --I 11/12/06 Monday, Indigo Girls --I 11/13/06 Tuesday, "The Fray --I 11/14/06 Wednesday, "The Fray --I 11/15/06 "Thursday, John Legend with Robin Thicke --I 11/16/06 Friday, Julieta Venegas --I 11/17/06 I I-I I Saturday, Jim Gaffigan 111/18/06 j MTV2 $2 Bill Presents Welcome To The Universe On Sale Sat, 10/21 1 Saturday, featuring 30 Seconds to Mars with Head at 10: 00 am PDT I 11/25/06 Automatica, Cobra starship, Rock Kills Kid II. Add to Outlook I Monday, Alice in Chains with Hurt I-I : 11/27/06 I I I-I i Tuesday, Alice in Chains with Hurt 11/28/06 I Wednesday, The Blackest of the Black Tour featuring Danzig I-I 11/29/06 with laama Coil, The Haunted, Belphegor, I Asesino I Thursday, Imogen Heap with Magnet I-I 111/3 % 6 I On Sale Sat, 10/21 I Friday, Imogen Heap with Magnet at 10: 00 am PDT I 12/1/06 II. Add to Outlook I Saturday, Olarlie Daniels Band -I ; 12/2/06 I I Jagermeister Music Tour featuring Slightly -I Wednesday, 12/6/06 stoopid and Pepper with OPM Friday, Black label Society with Black stone Cherry -I 12/8/06 Saturday, Olildren of Bodom with Amon Amarth, Sanctity, -I 12/9/06 Gojira Sunday, Trey Anastasio -I 12/1 % 6 Saturday, Tourgasm with Gary Gulman, Robert Kelly, Jay -I 12/16/06 Davis mI Subscribe to RSS Feed for The Wiltern LG I Tools: The vViltern LG - Venue Info