The Administration recommends that the Mayor and City Commission approve and authorize the Mayor and City Clerk to execute Amendment No. 3 to the Management Agreement between the City and Miami Design Preservation League (MDPL).  As to the City’s exercise of the final five (5) year renewal term under the Agreement, the Administration seeks direction as to whether to exercise Option 1 (a single five year term), or Option 2 (an initial three year term, with two one year renewals).

The City is the owner of the Miami Beach Ocean Front Auditorium, located at 1001 Ocean Drive, Miami Beach, Florida, which is also commonly referred to as the 10^th Street Auditorium (Premises).  MDPL is a not-for-profit organization committed to preserving, promoting, and protecting the Art Deco Historic District including, without limitation, the preservation, promotion, and protection of the Ocean Front Auditorium as a historic architectural, educational, and cultural arts venue. 

Pursuant to Resolution No. 2009-27288, the City and MDPL are parties to a management agreement for the management and operation of the Premises (Agreement).  MDPL occupies a total of approximately 7,339 square feet on the premises, which includes the Welcome Center, Museum, Lecture & Film Hall, Gift Shop and Administrative Offices, plus approximately 1,747 SF of common area shared with Ocean Rescue. The original Management Agreement is attached as Exhibit “A” to this Memorandum.

The term of the Agreement was for an initial period of five (5) years, commencing on January 1, 2010, and ending on December 31, 2014, with two (2) renewal terms for five (5) years each.  The first renewal term was an automatic renewal, subject to MDPL’s compliance with specified benchmarks.  The automatic renewal commenced on January 1, 2015, and ended on December 31, 2019.  The second and final five year renewal term is subject to approval by the City Commission and is presented today as Amendment No. 3 to the Agreement.

Rent Paid by MDPL to the City

MDPL does not pay any rent or percentage of its revenues to the City for the use and occupancy of the Premises.  MDPL reimburses the City for its share of electricity and water, which is currently calculated to be $2,174.87 monthly.

Financial Assistance Paid by the City to MDPL

The City’s Cultural Arts Council provides annual grants to MDPL, funded via Resort Taxes, based on available funding and final grant scores.  The current FY 19/20 budget provides $23,496 of grant funding to MDPL, and the proposed FY 20/21 budget contains $21,280 of grant funding to MDPL as well as a COVID-19 Emergency Relief Grant in the amount of $65,205.  From FY 10/11 to FY 19/20, the City has provided grant funding to MDPL, in the amount of $165,730.  Additionally, pursuant to a sponsorship agreement with MDPL, the City has paid $100,000 annually towards the Art Deco Weekend event for the past three years. 

In December 2019, the Mayor and City Commission authorized the City Manager to execute a six (6) month extension to the Agreement, commencing on January 1, 2020, and ending June 30, 2020.  Following the June 24, 2020 City Commission meeting, in order to provide time for the Administration and MDPL to continue to negotiate the proposed Amendment to the Agreement (exercising the final five year term), the City Manager approved an additional two (2) month extension, commencing on July 1, 2020, and ending on August 31, 2020.

At the June 24, 2020 City Commission meeting, the Mayor and City Commission directed the Administration to negotiate a renewal of the Agreement, for a period of up to five (5) years.  Additionally, the Commission stated that the proposed  amendment exercising the renewal should specifically include certain terms and conditions to assure the City facility would be operated consistent with its intended purpose, as well as provide certain protections and safeguards for the City.

As a result of negotiations between the parties, below is a summary of the substantive terms and conditions contained in the proposed Amendment No. 3 to the Agreement (Amendment

Renewal Term: 

Option 1:  A single five year term, commencing on September 1, 2020, and expiring on December 31, 2025; or

Option 2:  A five year term, divided as follows: an initial three years, commencing on September 1, 2020, and expiring on December 31, 2023, with two (2) one-year renewal options, to be exercised at the sole and reasonable discretion of the City Commission.

Rooftop Expansion:  The Rooftop Expansion is not included as part of the Premises, and therefore is not included as part of the scope of the Agreement.  Notwithstanding, the City Commission, at its sole discretion, may, at some future date during the term of the Agreement, grant to MDPL the right to manage, program and use the Rooftop Expansion.  Additionally, MDPL has requested (and the Administration has no objection) that the City shall use commercially reasonable efforts to ensure that the construction of the Rooftop Expansion does not prevent the operation of the Art Deco Welcome Center during the 120 days leading up to, and during, the World Congress on Art Deco in 2023 (exact date to be determined).

Revised Benchmarks:  MDPL shall provide, at its sole cost and at no cost to the City, the furniture, equipment, personnel, day to day maintenance and housekeeping, and security for the Premises, as required and necessary to support the objectives and approved uses as delineated in the Amendment. Additionally, the parties hereto have revised and updated the uses and programming for the Welcome Center.  Below is a summary of the modified uses and benchmarks contained in the Amendment.

·         Art Deco Visitor’s Center - The Visitor's Center shall also serve as the ticketing location for MDPL's Historic District architectural tours and for obtaining self-guided audio tours in English, German, French, Spanish and Portuguese. MDPL will generally offer tours once per weekday, subject to change depending on demand.

·         Art Deco Museum - It is the parties’ intent and mutual objective that the Museum continue to evolve as a cultural and educational destination within the Art Deco Historic District, featuring a permanent collection, as well as temporary exhibitions that are intended to “tell” the story of the Art Deco District and the Preservation Movement in Miami Beach.  To that end, MDPL shall utilize its best efforts to implement and comply with the American Association of Museums (AAM) Standards for United States Museums.

MDPL shall complete, no later than March 31^st, 2022, the Museum Assessment Program (MAP) of  the American Alliance of Museums. This is meant to be done in advance of the Core Documents verification.

Alternatively, no later than December 31, 2021, MDPL may complete the Steps Program from the American Association for State and Local History, in collaboration with an advisory group made up of Museum leaders in Miami Beach, such as Wolfsonian-FIU and/or the Bass Museum, among others.

The purposes of either the Museum Assessment Program (MAP) or the Steps Program is to continue the Museum’s mission, while also enhancing its operations by following best practices and standards adopted by similar museums throughout the U.S.

MDPL shall complete the Core Documents Verification from the American Alliance of Museums no later than March 31,2024.

·         Barbara Capitman Research Archives (“Capitman Collection”) - The Capitman Collection shall be available, by appointment, to scholars or researchers with an interest in Barbara Capitman’s legacy, and the history of the Preservation Movement in Miami Beach. In addition, MDPL shall continue its work to digitize the archives and to make them available online to the general public.

 ·         Preservation Education - MDPL shall produce a minimum of twelve (12) educational programs per year demonstrating how MDPL is meeting its mission as follows:

(i)            collaborating with other South Florida cultural anchors focused on arts, culture, and historic preservation, (i.e., including, without limitations, the Jewish Museum of Florida-FIU, Wolfsonian-FIU, History-Miami, Bass Museum, other Miami Beach cultural anchors);

(ii)          developing inter-disciplinary programming to provide better context and points of engagement for discussions on historic preservation, and reach broader audiences;

(iii)         educational outreach to private and public schools;

(iv)         quantifying presentations/outreach to residents within the City to educate the City’s residents on historic preservation; and

(v)           developing initiatives that engage the community, raise awareness, and elevate MDPL’s profile.

 ·         Local Schools Outreach - MDPL will work with the City’s public and private schools, and the City’s Parks and Recreation Department, to host school visits to the Welcome Center, as well as arrange mini-walking tours for school classes.

·         Lectures - MDPL will produce lectures that center on topics related to its mission. These lectures will be free and open to the general public.

 ·         Historic Resources Survey - MDPL will continue its work to survey and document buildings within Miami Beach’s historic districts.  Such information shall be made accessible and available online for the benefit of the general public.

·         Official Art Deco Gift Shop – The Gift Shop will provide for sale of affordable and authentic Art Deco, and Art Deco-themed, merchandise, (including, without limitation, jewelry, clothing, artworks, and souvenirs, as well as books, CD's, and DVD's, etc.) providing information/understanding of Art Deco, generally, and, specifically, as it relates to the City of Miami Beach.

MDPL shall comply with the following minimum requirements for the Art Deco Gift Shop:

(i)            within sixty (60) days of the Effective Date of the Amendment, submit a written plan to the City Manager summarizing MDPL’s plans to enhance merchandising within the Gift Shop, after consultation with high quality shops (including the Bass Museum of Art and The Wolfsonsian); and

(ii)          MDPL shall use best efforts to increase retail sales at the Gift Shop and online, each year during the Term of the Agreement.

·         Facility Rentals - The Premises may also be made available for third party rentals for limited private events, including, without limitation, weddings ceremonies and receptions, baptisms, bar/bat mitzvahs, birthdays, graduations, and other similar social events; ancillary events, group meetings, and social functions related to convention and meeting business; public meetings; and educational and/or cultural events/programs/performances that are intended to be open and available to the general public.  MDPL shall use best efforts to increase annual revenues from third party rentals of the Premises each year during the Term of this Agreement.

Continuous Operation:  MDPL shall continuously, actively and diligently carry on the programs, services activities and uses during the hours and upon the days specified in the Agreement.  In the event MDPL fails to do so, except in the case of force majeure, the City may terminate the Agreement upon providing MDPL fifteen (15) days’ written notice.   

Termination for Convenience:  The City Commission may, for its convenience and without cause, terminate the Agreement at any time during the Term by giving written notice to MDPL of such termination, which shall become effective within sixty (60) days following such notice.

MDPL does not pay rent to the city for use of the premises but is responsible for utilities, and certain maintenance and repairs.

This project aligns with the 2020 strategic plan prosperity vision area to market and promote Miami Beach as a world class arts, culture and quality entertainment destination. The Administration recommends that the Mayor and City Commission Approve the Resolution, authorizing  the Mayor and City Clerk to execute Amendement No. 3 to the Management Agreement with MDPL for the 10^th Street Auditorium; said Amendement exercsing the second and final five (5) year term under the Agreement, and also modifying certain terms of the Agreement.