| | | | | | | | | Resolutions - C7 A
COMMISSION MEMORANDUM |
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| | | | | | | | TO: | Honorable Mayor and Members of the City Commission | | FROM: | Jimmy L. Morales, City Manager | | DATE: | September 27, 2016 | | |
| SUBJECT: | A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY
MANAGER AND CITY CLERK TO EXECUTE A LICENSE AGREEMENT
BETWEEN THE CITY OF MIAMI BEACH, GLOBAL SPECTRUM, L.P. D/B/A
SPECTRA VENUE MANAGEMENT, AND ART BASEL U.S. CORP., FOR
USE OF THE MIAMI BEACH CONVENTION CENTER FOR THE 2016 ART
BASEL SHOW. |
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| | | | | | | | RECOMMENDATION
| The Administration recommends the approval of the attached License Agreement between the City of Miami Beach, Global Spectrum, L.P. d/b/a Spectra Venue Management, and Art Basel U.S. Corp. outlining terms and conditions for use of the Miami Beach Convention Center. |
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| | | | | | | | ANALYSIS
| Art Basel in Miami Beach (ABMB) was established in 2000 as the sister event of Switzerland's Art Basel, the world’s most prestigious art fair. Although it was scheduled to launch in December 2001, the unfortunate events of September 11, 2001 delayed the inaugural event until 2002. ABMB quickly became the preeminent contemporary art fair in the western hemisphere, and an established destination for artists, galleries, collectors, museum groups and other individuals interested in top-notch art. Each year, ABMB spends millions of dollars producing the fair and economists have estimated $400 million to $500 million in related economic impact as a result of the fair.
Messe Schweiz is the Swiss exhibition group that manages, operates and promotes Art Basel and Art Basel in Miami Beach. On January 1, 2013, MCH formed a United States corporation in the State of Florida by the name of Art Basel U.S. Corp. that is a wholly owned subsidiary of MCH and acts as the new organizer of ABMB.
As set forth in the Miami Beach Convention Center (MBCC) Construction Booking Policy, due to the construction of the MBCC Renovation Project, the MBCC is generally only booking “2 Hall” shows at the MBCC during the construction period. However, in view of ABMB’s importance to the City of Miami Beach, ABMB is the sole exception to the 2 Hall booking policy, as the City has agreed to accommodate ABMB as a “4 Hall” show, and has structured the phasing of the construction work at the MBCC, at considerable cost and effort, to make available all four halls to ABMB during construction.
Throughout 2016, the City and ABMB have met on a regular basis to assess the progress of the MBCC Renovation Project, and to work through the various complexities associated with reasonably accommodating the December, 2016 ABMB show while the MBCC is under construction. For this reason, negotiating agreed-upon terms and conditions for use of the Convention Center for the 2016 Art Basel show has taken longer than expected.
Spectra, as manager of the MBCC and agent for the City, is generally authorized to enter into agreements on behalf of the City (Owner) for use of space within the MBCC. This year, in view of the specific terms that needed to be addressed in the License Agreement with respect to the construction of the MBCC, the City is expressly included as a party to the License Agreement.
The proposed negotiated License Agreement, attached as Exhibit “A” to this Commission Memorandum, addresses potential impacts from the construction and each party’s responsibilities, and the City’s maximum liability, for impacts that may arise from construction, if any. Specifically, City’s maximum liability under the Agreement is limited to the refund of the License Fee, the refund of certain “Other Costs and Expenses” paid by Licensee pursuant to the Agreement, and an additional maximum not-to-exceed amount of $300,000. The Administration submits that, given the amounts the City is spending to reasonably accommodate the entire Art Basel show during construction, the foregoing limitation of liability, and the other terms and conditions of the License Agreement, represents a fair allocation of risk between the parties. |
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| | | | | | | | CONCLUSION
| The Administration recommends the approval of the attached License Agreement between the City of Miami Beach, Global Spectrum, L.P. d/b/a Spectra Venue Management, and Art Basel U.S. Corp. outlining terms and conditions for use of the Miami Beach Convention Center for the 2016 Art Basel show. |
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| | | | | | | | KEY INTENDED OUTCOMES SUPPORTED Maximize The Miami Beach Brand As A World Class Destination |
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| | | | | | | | Legislative Tracking Tourism, Culture, and Economic Development |
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