Item Coversheet

OLD BUSINESS  5.

COMMITTEE MEMORANDUM

TO: Finance and Economic Resiliency Committee Members


FROM:
Alina T. Hudak, City Manager


DATE: November 14, 2022


SUBJECT:DISCUSSION OF A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA ACCEPTING THE RECOMMENDATION OF THE PUBLIC SAFETY AND NEIGHBORHOODS QUALITY OF LIFE COMMITTEE MEETING AT ITS MARCH 7, 2022 MEETING, AUTHORIZING NEGOTIATIONS WITH ROCKEFELLER SPORTS AND GAMES FOR A DESIGN , BUILD AND OPERATION AGREEMENT FOR A MINIATURE GOLF ACTIVATION AT LUMMUS PARK, BETWEEN 5TH AND 7TH STREET, FOR A PERIOD OF TWO (2) YEARS, WITH THREE (3) ONE (1) YEAR RENEWALS, AS AMENDED; AND PROVIDING THAT THE FINAL NEGOTIATION AGREEMENT SHALL BE SUBJECT TO THE PRIOR APPROVAL OF THE MAYOR AND CITY COMMISSION.

HISTORY:

During the April 21, 2021 City Commission meeting, the City Commission approved the request to issue Invitation To Negotiate (ITN) 2021-153-KB for the Activation of the Lummus Park Spoil Area.

 

The spoil area is defined as the sandy space between the coral wall abutting the Park's serpentine walkway and the protective sand dunes. Specifically, the City sought to activate the areas identified as low use or infrequent use (Exhibit A). The existing high use areas currently contain permanent activations and, thus, the City is not seeking to further activate high use areas at this time. The intent of the solicitation was to activate under-utilized spaces in the spoil area without impacting existing programming and amenities. The City envisioned activations that create sophisticated, family-friendly experiences, highlighting the energy, history, and culture of Miami Beach and Ocean Drive.

 

The ITN was issued on April 23, 2021. Approximately 2,000 vendors were notified via Periscope S2G, and 61 via email notification. A total of 54 vendors accessed the solicitation and two addenda were issued. The ITN responses were due on June 18, 2021, and resulted in the receipt of a sole response from Teamwork Marketing Solutions, Inc. 

 

Following the receipt of the sole proposal, the Procurement Department contacted several viable bidders to understand why no other bids were received. Primarily, the bidders queried indicated that either they were not in the business of providing the types of activations sought by the City, the scope of the ITN was not sufficiently specific, or current workloads did not allow them to respond.

 

During the July 28, 2021 City Commission meeting, Resolution No. 2021-31784 was adopted accepting the recommendation of the City Manager to reject the proposal received pursuant to the Invitation To Negotiate (ITN) 2021-153-KB Activation of the Lummus Park Spoil Area. Following the rejection of the ITN, at the direction of the City Commission, the Procurement Department scheduled industry meetings to discuss possible activations at Lummus Park. Approximately 3,368 vendors were notified via Periscope S2G and 135 via email notification. A total of 14 of the vendors viewed the invitation via Periscope S2G, and meetings were held with ten vendors.

 

In addition, together with the Parks and Recreation Department, the Procurement Department conducted industry review meetings to specifically discuss miniature golf operations at Lummus Park. Approximately 4,783 vendors were notified via Periscope S2G and 13 via email notification. Meetings were held with three vendors.

 

During the December 8, 2021 City Commission meeting, a discussion regarding family-friendly activation in Lummus Park was referred to the Neighborhood and Quality of Life Committee. At the March 7, 2022 Public Safety and Neighborhood Quality of Life Committee meeting (formerly known as the Neighborhood and Quality of Life Committee), the Administration presented a proposal to the Committee by Rockefeller Productions for the creation of a miniature golf course within the Lummus Park spoil. The Committee directed the Administration to enter negotiations with Rockefeller Productions for a design, build and operate agreement for a miniature golf activation at Lummus Park for a period of three (3) years, with two (2) one (1) year renewals, and requesting the administration to return to the full Commission for approval of the final agreement.

 

During the April 6, 2022 City Commission meeting, Resolution No. 2022-32122 was approved accepting the recommendation of the Public Safety and Neighborhood Quality of Life Committee at its March 7, 2022 meeting, and authorized negotiations with Rockefeller Productions for a design, build and operate agreement for a miniature golf activation at Lummus Park, between 5th Street and 7th Street, for a period of two (2) years, with three (3) one (1) year renewals, as amended, provided that the final negotiated agreement shall be subject to the approval of the Mayor and City Commission; direct the City Administration to ensure that the final negotiated agreement includes a resident discount for minigolf activations; and refer the proposed negotiated terms to the Finance and Economic Resiliency Committee (FERC) for review and recommendation.

 

During the July 8, 2022 City Commission meeting, a resolution was placed on the agenda proposing to rescind Resolution No. 2022-32122, which authorized negotiations with Rockefeller Productions regarding the proposed miniature golf activation in Lummus Park as well as and authorized the Administration to prepare and issue a Request for Proposal (RFP) for the design, construction and operation of a miniature golf activation in said park. The sponsor withdrew the item after discussion, and the Administration was given direction to resume negotiations with Rockefeller Productions.

ANALYSIS:

After the industry review meetings, the City received a proposal from Rockefeller Productions to provide a miniature golf activation at Lummus Park, between 5th and 7th Street (Exhibit B), called “South Beach Putt.”  Rockefeller Productions is an award winning, acclaimed production company that offers high-quality entertainment on a global scale. The proposal entails a custom, immersive, outdoor 18-hole miniature golf course. The course encompasses highlights of Miami Beach ranging from crystal-clear beaches to the iconic Art Deco architecture style. Select holes will have unique, subtle sound experiences such as waves, wildlife, and Latin inspired music. The proposed activation offers community engagement and opportunities for events.

 

The Administration has engaged in negotiations with Rockefeller Productions, who is amenable to entering into a two (2) year agreement with the City to design, build and operate the miniature golf course at Lummus Park, largely at their own expense, with some contributions from the City. The agreement will have three (3) one (1) year renewal options, to be executed at the Administration’s discretion. Rockefeller Productions has proposed two location options between 5th and 7th Street on the Lummus Park Spoil, as depicted in their attached presentation (Exhibit B).

 

Rockefeller Productions has made the following financial proposal as part of their two-year contract with the City to design, build and operate miniature golf at Lummus Park:

 

  • Regular ticket prices are $25 per 18-hole round of golf, subject to the discounted rates described below.
  •  $2.00 per regular priced ticket sold will be paid to the City. All discounted tickets under $20.00 will result in $1.50 per ticket paid to the City.
  • The activation will run for 26 weeks (November through April), which is based on various factors, including past activation experience, weather, peak visitor periods, etc.
  • The City will provide the space at no cost and will cover costs associated with permitting, janitorial and electricity.
  • Rockefeller Productions will cover all additional costs for the site management, insurance, event and ticket management, capital costs and upkeep, staffing, travel and housing, security and transportation.
  • Rockefeller Productions will cover costs for the design, provision and installation of the entire site, including all holes, amenities, furniture, accessories, advertising and load in/load out labor.
  • Rockefeller Productions agrees to splitting merchandise profit with the City, with 50% of the revenue, after expenses, provided to the City.

 

Based on Rockefeller Productions’ projections, the financial proposals, as described above, may yield profit to the City of about $60,000 per season.  Rockefeller Productions is amenable to the activation periods being altered at the City’s discretion, as well as reopening the financial terms if the City so desires after the initial two-year period.  Rockefeller Productions further understands and agrees that the activation may require review and approval by the City’s Historic Preservation Board.

 

Rockefeller Productions has also offered the following public benefit/community engagement opportunities as part of their proposal:

 

Special Discounts & Rates Proposal

(Regular Rate: $25 per 18-hole round of golf)

Group

Discount/Rate

Seniors (65+) & Children (12 and under)

$15 Tickets

Students

$15 Tickets

Miami Beach Residents

$18 Tickets

Miami-Dade & Broward County Residents

$20 Tickets

Family Packs

$60 (for a Four Pack)

Military

10% Off

Local Business Partners

10% Off

Educators

10% Off

First Responders

10% Off

Course Buyouts for Special Groups

$2,000 (Private 3-hour session, excludes prime hours)

**Discounts cannot be combined. Taxes and fees are not included in advertised price. Valid ID required**

 

CONCLUSION:

Discussion at Committee.

Applicable Area

South Beach
Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Does this item utilize G.O. Bond Funds?
Yes No 

Strategic Connection

Prosperity - Market and promote Miami Beach as a world class arts, culture, and quality entertainment destination.
ATTACHMENTS:
DescriptionType
Exhibit A – Map of Lummus Park SpoilOther
Exhibit B – “South Beach Putt” Presentation by Rockefeller ProductionsOther