C7R - Negotiate Fillmore Agreement

Resolutions - C7 R

C7 R A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE AT ITS SEPTEMBER 26, 2025, MEETING TO DIRECT THE CITY ADMINISTRATION TO ENTER FORMAL NEGOTIATIONS WITH LIVE NATION WORLDWIDE, INC. FOR A POSSIBLE NEW MANAGEMENT AGREEMENT FOR THE MANAGEMENT AND OPERATION OF THE FILLMORE MIAMI BEACH AT THE JACKIE GLEASON THEATER, SUCH AGREEMENT TO BE SUBJECT TO REVIEW AND APPROVAL BY THE MAYOR AND CITY COMMISSION. Applicable Area:

COMMISSION MEMORANDUM

RECOMMENDATION

The Administration recommends that the Mayor and City Commission adopt the Resolution accepting the recommendation of the Finance and Economic Resiliency Committee ("FERC") to negotiate a new Management Agreement with Live Nation Worldwide, Inc. ("Live Nation") for the management and operation of the Fillmore Miami Beach. Such agreement will require a 5/7 th vote from Commission.

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, which was 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 was to 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 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.

In April 2024, at the direction of the City Commission, the Administration engaged Live Nation in developing an alternate “gut-renovation” plan and also updating the 2023 proposal for a new building. On July 8, 2024, Live Nation returned to the Administration two (2) concepts and cost

estimates; a New Building concept at $57.7 million and the Gut-Renovation Concept at $87.1 million. Both options present a substantial funding gap, exceeding the GOB for Arts and Culture ("GOBAC") funding appropriation.

With an option for the renovation of the existing building and the construction of a new theater, the Administration conducted a virtual meeting on Thursday, August 22, 2024, to present the residents of Miami Beach with the concepts being considered, answer their questions, and listen to their comments. Fifty-three (53) individuals attended the listening session. Of the residents who voiced their opinions, none supported either the gut-renovation ($87.1M) or the new building ($57.7M) concepts. Some expressed the opinion that the existing Fillmore is already “a fantastic venue” to watch concerts and that only necessary repairs should be pursued with the existing funds.

At the September 11, 2024, Commission meeting, a discussion was held on the merits of both concepts and preferred path for the project. Vice Mayor Fernandez motioned to reject the idea of tearing down the building and, at the suggestion of Commissioner Bhatt, direct the Administration to pursue a path and a middle ground between renovation and rehabilitation with a cost closer to the GO Bond funds available and sharing cost overruns with Live Nation. The motion was seconded and approved (Vote: 7-0).

The broad terms of this agreement were discussed at the September 26, 2025, FERC meeting and feedback was provided by the Committee members. The Committee advanced the item to Commission with a favorable recommendation.

Live Nation’s current agreement has an end date of December 2030 but will be extended by a time period equal to the closure needed to accommodate the renovation of the facility, which is anticipated to last 18 months. The new agreement would commence at the conclusion of the current agreement plus the extension approximated to be in summer of 2032.

ANALYSIS

The Administration and Live Nation have collaborated to create a scope of work for the renovation of the Fillmore Theater that accomplishes all the work recommended by the last facilities inspection report and all the upgrades Live Nation requires to bring the venue up to industry standards for production, guest experience, and artist hospitality. Additionally, the project also addresses the need for beautification of the driveway and surrounding greenspace to better fit the aesthetic of a newly rejuvenated campus.

The proposed limited renovation is estimated by Live Nation to cost approximately $35,600,000. The 2022 GO Bond for Arts and Culture currently has $29,100,000 in funding for this project. Live Nation has committed to cover the cost of the overage ($6.5M) and manage the delivery of the renovations, in consideration for a new Management Agreement commencing at the expiration of the current Agreement.

The Administration and Live Nation have discussed the potential broad terms of such an Agreement, which Live Nation presented to the Finance and Economic Resiliency Committee in the September 26, 2025, meeting. As part of the discussion, the Committee asked that Live Nation consider additional public benefits and the potential use of the theater for film screening.

By all accounts Live Nation has been a good partner to the City and a capable operator of the venue. Widely regarded as the leading presenter of live events, Live Nation’s next closest competitor presented fewer than half as many performances in 2023 (an estimated 22,000 performances, compared to Live Nation’s 50,000).

FISCAL IMPACT STATEMENT

This renovation will utilize $29.1 million allocated through the 2022 General Obligation Bond for Art and Culture.

Does this Ordinance require a Business Impact Estimate? Click or tap here to enter text. (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

The Administration recommends that the Mayor and City Commission adopt a resolution accepting the favorable recommendation of the Finance and Economic Resiliency Committee (FERC) to enter into formal negotiations with Live Nation for a new Agreement for the management and operation of the Fillmore Miami Beach at the Jacke Gleason Theater. Such agreement will require a 5/7 th vote from Commission.

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

Accept Rec/Negotiate w/ Live Nation, New Management Agreement for Fillmore Theater. FF