Refer this item to the Finance and Citywide Projects Committee.

BACKGROUND

At the December 9, 2015 Commission meeting, Commissioners Steinberg and Malakoff referred a discussion of how to incentivize local theater in Miami Beach to both the Cultural Arts Council (CAC) and the Finance and Citywide Projects Committee (FCWPC). This discussion was prompted by the announcement of a major new professional theater company, Miami New Drama, under the direction of multiple-award winning director and playwright Moises Kauffman and Michel Hausmann, and the challenges faced by its month-long run of The Golem of Havana, which opened at the Colony Theatre on January 16, 2016. The subject was discussed at length by the CAC at its meeting on January 7, 2016.

At the April 13, 2016 City Commission meeting, Commissioners Steinberg, Grieco, and Malakoff sponsored another referral to both the CAC and FCWPC to consider having Miami New Drama manage the Colony Theatre as a pilot program.  On May 12, 2016, Mr. Hausmann presented Miami New Drama’s vision to the members of the CAC, who voted unanimously in favor of the organization’s proposal to oversee the artistic direction and operation of the Colony Theatre beginning in FY 2016/17. The Finance and Citywide Projects Committee met on May 20, 2016 and recommended in favor of the proposal, directed staff to negotiate a Management Agreement that would include options for City funding and to return to the FCWPC with a draft of the agreement for review and consideration.

On June 8, 2016, the City Commission accepted the recommendation of the FCWPC and adopted Resolution No. 2016-29429, approving, in concept, a pilot program for the management of the Colony Theatre and authorizing the administration to negotiate a management agreement with Miami New Drama Theater Company, as the resident company and venue manager for the Colony Theatre; and further referring the negotiated agreement to the Finance and Citywide Projects Committee for Consideration.

On September 14, 2016, the City Commission adopted Resolution No. 2016-29569 approving the attached agreement (Exhibit A) between the City of Miami Beach and Miami New Drama for the operation, management, maintenance, and promotion of the Colony Theatre. The said agreement authorized annual funding in the amount of $170,000 subject to annual budget appropriation; having an initial term of two (2) years commencing on October 1, 2016, and ending on September 30, 2018, with an option to extend the agreement, at the City’s sole discretion, for up to one (1) additional five (5) year term, and one (1) additional three (3) year term.

The existing agreement also includes the City to provide Miami New Drama with a contribution of $80,000 annually, paid on a reimbursable basis, to cover utility costs at the Colony Theatre. Under the existing management agreement, the annual City contribution totals $250,000.

About Miami New Drama

Miami New Drama is a not-for-profit 501(c)3 presenting and producing organization committed to theatrical excellence and theater-making as a means of social engagement, cultural conversation and human interaction. The company presents world-class relevant work by American, Latin American and international artists designed for the intersections of Miami Beach’s multicultural 21^st century audience. By sharing work where cultures dialogue and communities intersect, Miami New Drama aims to reach audiences as diverse as the city itself.

Miami New Drama’s productions include an eclectic mix of original plays, musicals, classics and world premieres, including work commissioned specifically for Miami New Drama. These productions utilize a mix of the best local, national and international talent to incubate work from scratch. Actors, directors and designers culled from the Miami community and beyond  create work that reflects the best of Miami Beach, while highlighting some of the best theatrical talent in the world.

Overview of Agreement

The current Management Agreement with Miami New Drama contains the following key terms and conditions:

•       The City of Miami Beach shall provide funding to Miami New Drama in the amount of $170,000, payable within fifteen (15) days following the end of each Quarter

•       The agreement is for an initial term of two (2) years, commencing on October 1, 2016 and ending on September 30, 2018. At its sole option and discretion, the City may extend this agreement for up to one (1) additional five (5) year term, and one (1) additional two (2) years and 364 day term.

•       Miami New Drama will honor event rentals which have been booked prior to the date of the execution of this Agreement and receive from the City all revenues from the agreements. Miami New Drama shall also honor any rent waivers that have been approved by Resolution of the Mayor and City Commission.

•       Miami New Drama shall cause at least 75 events at the facility for each contract year, serving more than 30,000 visitors per year

•       Miami New Drama shall provide day-to-day operational and administrative services in support of its management activities to ensure that the facility shall be operated, managed and maintained in a first class manner, including but not limited to, acquisition of services, equipment, supplies and facilities; maintenance and property management; security; personnel management; record-keeping; collections and billing; and promotional activities,  including but not limited to public relations, social media and paid marketing outreach.

•       Miami New Drama shall provide quarterly reports to the City detailing event records and programmatic plans, marketing and promotional activities, maintenance and capital work, and operational/administrative budgets.

•       The City remains responsible for maintenance of the major building systems (i.e. HVAC, roof, plumbing, electrical, and elevator) and for long term building capital improvements.

•       Miami New Drama shall be responsible for the purchase of any equipment related to the venue that needs to be replaced due to normal wear and tear.

Additional terms and conditions can be found in the attached Management Agreement (Exhibit A).

As noted above, under the current Management Agreement, Miami New Drama must produce 75 events at the facility for each contract year, serving more than 30,000 visitors per year. The following represents these activities:

·        Produced 138 events at the facility for contract year October 1, 2016- September 30, 2017, serving 26,692 visitors. During the first quarter, October 1- December 31, 2016, Miami New Drama was required to honor all existing rentals and did not begin producing and booking new events until January 2017.

·        Produced 102 events at the facility from October 1, 2017- April 30, 2018, serving 16,698 visitors, with 5 months of programming remaining in the contract year.

On April 24, 2018, Miami New Drama submitted to City staff the following performance indicators they would like to propose to the City in regards to a potential extension to their management agreement:

·        Produce 150 events at the facility for contract years October 1, 2018- September 30, 2020, serving more than 35,000 visitors per year;

·        Produce 175 events at the facility for contract years October 1, 2020-September 30, 2022, serving more than 40,000 visitors per year;

·        Produce 200 events at the facility for contract year October 1, 2022-September 30, 2023, serving more than 45,000 visitors per year.

Each season would include 4 to 5 Miami New Drama produced or co-produced productions, and the development of an educational division.

Under these performance indicators, Miami New Drama has proposed City funding in the amount of $420,000 annually, to be paid biannually;  and a utilities reimbursement of $80,000 to be paid quarterly, for a total annual contribution of $500,000. Capital maintenance responsibilities would be retained by the City of Miami Beach.