C4J - Discuss Fillmore Renovation

Committee Referrals - C4 J

COMMISSION MEMORANDUM

RECOMMENDATION

View and discuss the proposal from Live Nation for the renovation of the Fillmore Theater. If the Committee agrees with the scope and cost of the proposed limited renovation, it may direct the Administration to negotiate the terms of an agreement with Live Nation and return to Committee for review and approval of the proposed terms.

BACKGROUND/HISTORY

On January 31, 2024, at the request of Commissioner Joseph Magazine, the Mayor and City Commission approved the referral of item C4 AD to the Finance and Economic Resiliency Committee ("FERC" or "Committee") to discuss the Live Nation project to build a new theater.

At the March 22, 2024, FERC meeting, Live Nation Worldwide (“Live Nation”) presented their concept for a new theater, previously presented at the May 24, 2023, FERC meeting. A motion was approved by acclamation, for this item to be heard by the City Commission with a favorable recommendation to direct staff to negotiate with Live Nation to build a new theater. This item was to be retained and return to FERC with the resulting proposals. Commissioner Alex Fernandez and Commissioner Tanya Bhatt requested to be added as co-sponsors.

Consequently, on April 3, 2024, the Mayor and City Commission discussed the Resolution sponsored by Commissioner Magazine, accepting the recommendation of the FERC at its March 22, 2024 meeting directing the Administration to initiate non-binding discussions with Live Nation regarding the possible construction of a new theater at the Jackie Gleason Theater site, and referring the matter back to the FERC. At the City Commission meeting, the item was separated by Commissioner Tanya Bhatt and (at the time) Vice-Mayor Laura Dominguez from the Consent Agenda. Commissioner Bhatt made a motion to defer the item with direction to explore the option for renovation, seeking input from the operator and the public. The Administration was given direction to return with a comparison of the two options, renovation of the existing building and the building of a new theater.

At the Sept. 11 2024 Commission Meeting the Commission voted to proceed with a limited renovation of the existing theater. The focus of which would include the scope of work as defined in the MC Harry Conditions Assessment and funded by the G.O Bond for Arts and Culture (GOBAC), along with additional work prioritizing upgrades to the artist areas. This would create a more efficient and hospitable venue for visiting performers and concert goers alike, while staying closer to the available budget.

The Administration was directed to negotiate the scope of the improvements, total project cost, and Live Nation’s contribution.

ANALYSIS

Live Nation has worked with the Administration to create a renovation scope which addresses the requirements of both the facilities and the operator. A GO Bond funding shortfall of approximately $5.3 Million has been identified. Live Nation has offered to fund the budget gap, if mutually beneficial terms can be reached.

FISCAL IMPACT STATEMENT

This renovation will utilize $29.1 million allocated through the General Obligation Bond for Art and Culture.

Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY)

If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/

FINANCIAL INFORMATION

CONCLUSION

If the Committee agrees with the scope and cost of the Live Nation proposal for the limited renovation, it may direct the Administration to negotiate the terms of an agreement with Live Nation and return to Committee for review and approval of the proposed terms.

Applicable Area

South Beach

Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No

If so, specify the name of lobbyist(s) and principal(s):

Department

Facilities and Fleet Management

Sponsor(s)

Co-sponsor(s)

Condensed Title

Ref: FERC - Live Nation's Proposal for Renovation of Fillmore Theater. FF

Previous Action (For City Clerk Use Only)