Cirque exits stage; Live Nation takes it

Facing a fight, Cirque du Soleil dropped its bid to revamp the Jackie Gleason Theater in Miami Beach. The city instead voted to deal with the country's top concert promoter, Live Nation.
BY DOUGLAS HANKS AND SUSAN ANASAGASTI
dhanks@MiamiHerald.com

Cirque du Soleil pulled out of a heated fight for Miami Beach's Jackie Gleason Theater, saying Wednesday it had no stomach for a political battle.
The surprise announcement came hours before a special City Commission meeting to consider three proposals for the 56-year-old theater.
With Cirque out, commissioners voted to negotiate an agreement with Live Nation, the country's largest concert promoter, to take over the 2,700-seat theater.
The Los Angeles-based company behind recent tours by Madonna and U2 would spend $3.5 million transforming the Gleason into a concert venue with a focus on rock and Latin pop.
The new theater would also get a new moniker: The Fillmore Miami Beach at the Incredible Jackie Gleason Theater, after a famous Live Nation auditorium in San Francisco.
But commissioners said they might still want to negotiate the name change.
Cirque's abrupt withdrawal ends nearly two years of talks between city officials and the entertainment giant. Cirque proposed a $100 million redo of the city-owned Gleason for its only permanent theater outside of Las Vegas and Orlando.
''Politics might be fun for some. It's not fun for us,'' Cirque CEO Daniel Lamarre said in a hastily called news conference at South Beach's National Hotel. ``Am I going to fight to sell this? I'm sorry. I just cannot.''
BOON FOR TOURISM
Hoteliers touted Cirque as a boon for a tourist destination lacking attractions beyond its beach and nightclubs. But residents questioned spending a requested $55 million of public money on renovating the Cirque theater and urged commissioners to keep the Gleason as a theater with a variety of acts.
Live Nation and its rival in the concert industry, AEG Live, both offered to renovate the money-losing Gleason and then rent it from the city.
Cirque was considered a narrow favorite in the three-way contest, but commissioners faced pressure from critics to delay Wednesday's scheduled vote on the matter.
Lamarre blamed the pullout on the anticipated postponement -- as well as an apparent softening of support for Cirque.
Citing next year's mayoral election -- which is expected to include at least three sitting commissioners -- Lamarre added: ``I guess people were jockeying for position.''
Cirque's exit followed a public hearing Monday at which residents applauded loudly at anti-Cirque comments.
Wednesday morning, City Manager Jorge Gonzalez, who led negotiations with Cirque for more than a year, issued a long-awaited recommendation to commissioners.
Gonzalez stopped short of endorsing Cirque over the other two candidates and suggested that commissioners might want to delay their vote by a week or two.
''What was happening in the last few days [was] totally contradictory to what we were told,'' Lamarre said. ``We have been told we were desired by the city.''
The Chamber of Commerce and residents criticized the city for wanting to vote on the proposals only five days after making them public.
Live Nation offered $1 million annual rent for 15 years, with modest annual increases.
AEG Live offered a base rent of $250,000, saying it needed to keep costs down in order to bring a broad range of acts to the Gleason, including televised awards shows and theatrical productions.
`A GREAT DAY'
Live Nation brought the Broadway series to the Gleason, moving it this year to Miami's new Carnival Center for the Performing Arts. The publicly traded company also owns West Palm Beach's Sound Advice Amphitheater.
''It's a great day for Live Nation,'' said Bruce Eskowitz, the company's president for global venues. ``I thought we had the best proposal all along.''
The rival concert promoters came late to the Gleason fight, scrambling a process that originally focused on Cirque. The famed human circus quietly began talking with Gonzalez's staff in late 2004, and later offered an ambitious remake of the Gleason into a lavish theater, surrounded by a restaurant, lounge and nightclub.
Early on, the Montreal-based company signaled it wanted no part of a political battle. Its negotiating team said a referendum on the project would be a deal-killer.
But in the spring, AEG Live began pressing Miami Beach to allow it to compete for the Gleason, too. In July, commissioners voted to let both AEG Live and its larger competitor, Live Nation, negotiate initial deals with Gonzalez.
This would have been Cirque's first government partnership; its five Vegas theaters are in casinos and a sixth is at Walt Disney World in Orlando.
Lamarre suggested he still will pursue a theater in South Florida with a private developer.
''I have to be very, very open with you. I love your city,'' Lamarre said. ``We've done a lot of analysis -- there are few cities in the world where we can do a permanent show.
``I know my phone is going to ring tomorrow.''

Cirque exits stage; Live Nation takes it

Facing a fight, Cirque du Soleil dropped its bid to revamp the Jackie Gleason Theater in Miami Beach. The city instead voted to deal with the country's top concert promoter, Live Nation.
BY DOUGLAS HANKS AND SUSAN ANASAGASTI
dhanks@MiamiHerald.com
CHUCK FADELY/MIAMI HERALD STAFF
A sculpture of Jackie Gleason is in front of the theater in this 2005 file photo.
Cirque du Soleil pulled out of a heated fight for Miami Beach's Jackie Gleason Theater, saying Wednesday it had no stomach for a political battle.
The surprise announcement came hours before a special City Commission meeting to consider three proposals for the 56-year-old theater.
With Cirque out, commissioners voted to negotiate an agreement with Live Nation, the country's largest concert promoter, to take over the 2,700-seat theater.
The Los Angeles-based company behind recent tours by Madonna and U2 would spend $3.5 million transforming the Gleason into a concert venue with a focus on rock and Latin pop.
The new theater would also get a new moniker: The Fillmore Miami Beach at the Incredible Jackie Gleason Theater, after a famous Live Nation auditorium in San Francisco.
But commissioners said they might still want to negotiate the name change.
Cirque's abrupt withdrawal ends nearly two years of talks between city officials and the entertainment giant. Cirque proposed a $100 million redo of the city-owned Gleason for its only permanent theater outside of Las Vegas and Orlando.
''Politics might be fun for some. It's not fun for us,'' Cirque CEO Daniel Lamarre said in a hastily called news conference at South Beach's National Hotel. ``Am I going to fight to sell this? I'm sorry. I just cannot.''
BOON FOR TOURISM
Hoteliers touted Cirque as a boon for a tourist destination lacking attractions beyond its beach and nightclubs. But residents questioned spending a requested $55 million of public money on renovating the Cirque theater and urged commissioners to keep the Gleason as a theater with a variety of acts.
Live Nation and its rival in the concert industry, AEG Live, both offered to renovate the money-losing Gleason and then rent it from the city.
Cirque was considered a narrow favorite in the three-way contest, but commissioners faced pressure from critics to delay Wednesday's scheduled vote on the matter.
Lamarre blamed the pullout on the anticipated postponement -- as well as an apparent softening of support for Cirque.
Citing next year's mayoral election -- which is expected to include at least three sitting commissioners -- Lamarre added: ``I guess people were jockeying for position.''
Cirque's exit followed a public hearing Monday at which residents applauded loudly at anti-Cirque comments.
Wednesday morning, City Manager Jorge Gonzalez, who led negotiations with Cirque for more than a year, issued a long-awaited recommendation to commissioners.
Gonzalez stopped short of endorsing Cirque over the other two candidates and suggested that commissioners might want to delay their vote by a week or two.
''What was happening in the last few days [was] totally contradictory to what we were told,'' Lamarre said. ``We have been told we were desired by the city.''
The Chamber of Commerce and residents criticized the city for wanting to vote on the proposals only five days after making them public.
Live Nation offered $1 million annual rent for 15 years, with modest annual increases.
AEG Live offered a base rent of $250,000, saying it needed to keep costs down in order to bring a broad range of acts to the Gleason, including televised awards shows and theatrical productions.
`A GREAT DAY'
Live Nation brought the Broadway series to the Gleason, moving it this year to Miami's new Carnival Center for the Performing Arts. The publicly traded company also owns West Palm Beach's Sound Advice Amphitheater.
''It's a great day for Live Nation,'' said Bruce Eskowitz, the company's president for global venues. ``I thought we had the best proposal all along.''
The rival concert promoters came late to the Gleason fight, scrambling a process that originally focused on Cirque. The famed human circus quietly began talking with Gonzalez's staff in late 2004, and later offered an ambitious remake of the Gleason into a lavish theater, surrounded by a restaurant, lounge and nightclub.
Early on, the Montreal-based company signaled it wanted no part of a political battle. Its negotiating team said a referendum on the project would be a deal-killer.
But in the spring, AEG Live began pressing Miami Beach to allow it to compete for the Gleason, too. In July, commissioners voted to let both AEG Live and its larger competitor, Live Nation, negotiate initial deals with Gonzalez.
This would have been Cirque's first government partnership; its five Vegas theaters are in casinos and a sixth is at Walt Disney World in Orlando.
Lamarre suggested he still will pursue a theater in South Florida with a private developer.
''I have to be very, very open with you. I love your city,'' Lamarre said. ``We've done a lot of analysis -- there are few cities in the world where we can do a permanent show.
``I know my phone is going to ring tomorrow.''

Email addresses for City Officials

To contact Miami Beach City officials:

1. Copy the following list
2. Paste it into the "To" field of your email

mayordermer@miamibeachfl.gov; matti@miamibeachfl.gov; CityManager@miamibeachfl.gov; simon@miamibeachfl.gov; luis@miamibeachfl.gov; saul@miamibeachfl.gov; jerry@miamibeachfl.gov; richard@miamibeachfl.gov

Referendum Required

According to the Miami Beach Charter and City Code, any lease of the parking area behind the Jackie Gleason Theater would require a voter referendum.

"Sec. 1.03. Powers of city.

(b) Alienability of property.

1. The only limitation concerning alienability of City-owned park, recreation or waterfront property is the restriction of the sale, exchange, conveyance or lease of ten (10) years or longer (including option periods) of park, recreation, or waterfront property in the City of Miami Beach, unless such sale, exchange, conveyance or lease is approved by a majority vote of the voters in a City-wide referendum. This provision shall be liberally construed in favor of the preservation of all park, recreation and waterfront lands.

2. The sale, exchange, conveyance or lease of ten years or longer of the following properties shall also require approval by a majority vote of the voters in a City-wide referendum: (1)Lots West of the North Shore Open Space Park: All City-owned property bounded by 87 th Street on the North, Collins Avenue on the East, 79 th Street on the South, and Collins Court on the West; (2) Cultural Campus: All City-owned property bounded by 22 nd Street on the North, Park Avenue on the West, 21 st Street on the South, and Miami Beach Drive on the East; (3) 72 nd Street Parking Lot: The City-owned surface parking lot bounded by 73 rd Street on the North, Collins Avenue on the East, 72 nd Street on the South, and Harding Avenue on the West; (4) Convention Center Parking Lots: All City-owned surface parking lots located in the Civic and Convention Center District, generally bounded by Lincoln Lane on the South, Washington Avenue on the East, Meridian Avenue on the West and Dade Boulevard on the North; and (5) Lincoln Road Parking Lots: All City-owned surface parking lots in the vicinity of Lincoln Road located within the area bounded by 17 th Street on the North, Euclid Avenue on the East, 16 th Street on the South, and West Avenue on the West.

3 PLANS, 1 THEATER AND ONLY 8 DAYS

Miami Herald, The (FL)
October 10, 2006
Author: DOUGLAS HANKS, dhanks@MiamiHerald.com

Estimated printed pages: 2

A top business group warned Miami Beach commissioners not to make a hasty decision on a proposed Cirque du Soleil theater just days after the proposal is made public.

Cirque and two of the nation's top concert promoters submitted competing proposals Sept. 29 for the city-owned Jackie Gleason Theater, and City Manager Jorge Gonzalez expects to release those documents to the public Friday. Commissioners are scheduled to select a winner five days later, at a special Oct. 18 meeting.

That timetable seems too short for the Miami Beach Chamber of Commerce, which last week passed a resolution urging commissioners to delay their vote until they can obtain ``informed public comment and input from the community.'' ``Our concern is just the timing of this,'' said Sandy Horwitz, the chamber's chairman and a partner in the Goldstein Schechter Price accounting firm in Coral Gables. The chamber urged the city to release the proposals no later than Wednesday. ``I'm a numbers guy. As a result, I'd like to look at the numbers.''

Commissioners have also questioned keeping the proposals confidential so close to a final vote.

``My concern is that the public [has] time to digest the information,'' said Commissioner Richard Steinberg. ``Personally, I value the input and the scrutiny of the public. It makes my job easier.''

Gonzalez said he had little choice in the matter, since Cirque, AEG Live and Live Nation invoked exemptions in state public records laws for documents from businesses seeking to move to Florida. He has said Cirque needs a decision this fall to meet its 2009 target for opening a permanent South Beach theater.

Gonzalez plans to release the proposals to the public once he forwards them to commissioners Friday, the usual schedule for commissioners receiving documents ahead of their regular Wednesday meetings.

Gonzalez also plans to provide rough outlines of the three proposals at Thursday's meeting of the committee that oversees the city's Cultural Arts district. That will be followed by a public hearing Monday afternoon and a commission meeting Oct. 18.

Mayor David Dermer said the schedule gives the public more opportunities than usual to voice opinions.

``In light of the fact that we've got so [many] public hearings on it, it is not a tight schedule,'' he said. ``This is going to be a very, very public process.''

Cirque has proposed a $130 million renovation of the Gleason, with Miami Beach investing between $50 million and $55 million. Both AEG Live and Live Nation, two competitors in the concert industry, want to convert the Gleason into an updated venue for live music and comedy acts. Those companies say they are not requesting public dollars for their competing proposals.

Though the broad outlines of the plans are already known, the competitors have not said how much money they're promising the city in rent or financial returns. Also unknown is the city's liability if the ventures fail.

Gonzalez's staff does not want to release the documents before their analysis is finished, said Hilda Fernandez, a Gonzalez deputy. ``Clearly, this is a sizable consideration for everyone,'' said Fernandez, an assistant city manager. ``Everyone's trying to do their due diligence.''

Horwitz said the chamber wanted to recommend one of the three contenders, but believed it couldn't pick a winner without seeing the full proposals. ``We cannot take a position because we do not know all the facts,'' he said.

PUBLIC MEETINGS

Three public meetings are planned on the future of Miami Beach's Jackie Gleason Theater.

* 10 a.m., Thursday

Commission chambers, City Hall, 1700 Convention Center Dr.

The city's Cultural Arts Neighborhood District Overlay committee will hear a presentation on the three competing proposals.

* 5 p.m., Monday

Jackie Gleason Theater of the Performing Arts, Washington Avenue.

A public hearing where City Manager Jorge Gonzalez will give a detailed presentation on the three proposals and invite the public to comment.

* 5 p.m., Oct. 18

Commission chambers, City Hall

A special commission meeting to consider the Gleason proposals. The City Commission is scheduled to issue the final vote on the matter.

RIVALS MAY CROWD GLEASON OFF MARQUEE

Miami Herald, The (FL)
October 14, 2006
Author: DOUGLAS HANKS, dhanks@MiamiHerald.com

Estimated printed pages: 2

Live Nation wants to brand the Jackie Gleason Theater after one of the most famous venues in rock-and-roll: San Francisco's Fillmore Auditorium.

The country's top concert promoter would rename the South Beach venue ``The Fillmore Miami Beach at the Incredible Jackie Gleason Theater'' in an effort to modernize the image of a theater named after a star of black-and-white television.

``We just think it's a brand musicians would recognize,'' Live Nation spokesman John Vlautin said. ``A band like the Killers loves to play the Fillmore in San Francisco, they love to play the Fillmore in Denver.''

The future of the Great One's name could prove a touchy subject as Miami Beach sifts through competing proposals for the city-owned theater. Gleason, who died in 1994, filmed his popular variety show there between 1966 and 1970, where Miami Beach was declared the ``fun and sun capital of the world.''

Executives from Live Nation and the other two contenders for the lease, AEG Live and Cirque du Soleil, all say they plan to keep Gleason's name on the building.

But proposals submitted by Live Nation and its smaller rival in the concert industry, AEG Live, do contemplate selling naming rights for the theater. The city would have to sign off on the change and would receive a share of the sponsor revenues.

City Manager Jorge Gonzalez, considered a Cirque supporter, said this week that AEG planned to drop Gleason once it signs a corporate sponsor. ``AEG says it must change the name,'' Gonzalez said.

``Not true,'' AEG Live President Randy Phillips wrote in an e-mail. ``We would want to incorporate [Gleason] into any potential naming rights deal.''

The proposals remained confidential as of Friday evening. Gonzalez had said they would be made public, but his staff was still working on its recommendation on the bids for city commissioners.

Until that recommendation is issued, the three contenders are barred from contacting commissioners. A final vote on the Gleason deal is set for Wednesday, but Commissioner Jerry Libbin raised the possibility Friday of delaying a decision.

``I'm not voting if I'm not comfortable,'' he said. ``What we don't know is the nitty-gritty.''

The Miami Beach Chamber of Commerce recently demanded more time between the proposals' release and a commission vote.

Cirque, which wants $55 million in public dollars for a $100 million revamp of the Gleason, would pay the city an estimated average of $8 million a year over 10 years, according to a new synopsis of the proposals the city released Friday. Cirque's rent would be a portion of revenues, and it could close the show after three years if it experienced 12 months of losses.

AEG would pay the city about $1.3 million a year in shared profits and guaranteed rent, plus spend $2 million renovating the theater. It could cancel the deal after three years if losses exceeded $500,000. Live Nation would pay $1.1 million in flat rent and estimated $1 million for annual maintenance, after funding $3.5 million in renovations. It did not propose an exit clause.

Live Nation, which was briefly Cirque's partner in pursuing the Gleason deal, now wants to use the theater to extend its Fillmore brand to the East Coast. Along with the San Francisco theater made famous in the 1960s by the Grateful Dead and promoter Bill Graham, Live Nation runs a Fillmore in Denver.

Live Nation's proposed contract would give Miami Beach 25 percent of sponsorship revenues if the company drops the Gleason name. But Vlautin said that provision was inserted as a possible revenue source for the city.

``We have no plans to pursue a title sponsor for the venue,'' Vlautin said. Gleason's name is ``culturally important to the city and to the history to the building, which is important to us.''

Edition: Final
Section: Business
Page: 1C

Copyright (c) 2006 The Miami Herald

Record Number: 0610170163

Discrimination Suit brought against Cique du Soleil

Cirque du Soleil To Pay $600,000 To End HIV Discrimination Complaint by Former Performer, In Nation’s Largest HIV Settlement of Its Kind
Settlement mediated by Equal Employment Opportunity Commission mandates change in Cirque’s employment discrimination policy and requires internal education

(Los Angeles, April 22, 2004) - Lambda Legal announced today that Cirque du Soleil will pay a record $600,000 to end an HIV discrimination complaint filed by a performer who was fired last year because he has HIV. The settlement ends a nationwide campaign and a federal disability complaint filed by Lambda Legal on behalf of its client, Matthew Cusick.

“This is a huge victory for working people with HIV because it tells employers that there’s a steep price to pay for HIV discrimination,” said Hayley Gorenberg, Director of Lambda Legal’s AIDS Project and the lead attorney on the case. “This kind of discrimination still happens all across the country, and today’s record-setting settlement will have ripple effects nationwide.”

According to Lambda Legal, today’s agreement is the largest public settlement ever for an HIV-discrimination complaint settled with the Equal Employment Opportunity Commission. Lambda Legal has battled HIV discrimination since the first days of the epidemic and litigated the nation’s first HIV discrimination case in 1983.

“When I was fired by Cirque du Soleil, it was the worst day of my life. Today is nearly the exact opposite because I stood up for what I knew was right and changed one of the world’s most popular entertainment companies,” said Cusick, who described the Cirque position as a “dream job” for any gymnast. “This kind of discrimination tears people’s dreams and careers apart. While other people in all sorts of professions will still face HIV discrimination, after today they will have a powerful tool with the settlement we reached.”

Under the settlement agreement, Cirque du Soleil will host annual anti-discrimination trainings for all of its employees worldwide and will adopt a zero-tolerance policy toward discrimination based on HIV and other disabilities. For two years Cirque will have its records open to the EEOC, ensuring that the company is in compliance with today’s agreement.

Lambda Legal filed the federal discrimination complaint with the EEOC in July 2003 against Cirque du Soleil on behalf of Cusick, who was fired because he has HIV. Before filing the complaint, Lambda Legal attempted to persuade Cirque to change its position and policy voluntarily. Although the company’s own doctors had cleared him to safely perform for the Las Vegas-based show “Mystere,” Cirque du Soleil management told Cusick that because he has HIV he is a “known safety hazard” and the company would not continue to employ him. The EEOC investigated Cirque du Soleil for several months before ultimately finding that there was “reasonable cause to believe that [Cirque du Soleil] discriminated against [Cusick] when it discharged him because of his disability, record of disability, and being regarded as disabled.” The EEOC then directed a mediation, which led to today’s agreement.

Lambda Legal and community leaders launched a nationwide campaign against Cirque du Soleil late last year, which intensified over several months with protests outside Cirque shows in San Francisco, Los Angeles and Orange County, California. Several thousand people signed petitions and sent letters to Cirque du Soleil to complain about Cusick’s firing. Cirque du Soleil also came under fire from local governments with the San Francisco Human Rights Commission launching its own discrimination investigation, the Los Angeles City Attorney writing a strongly worded letter to Cirque du Soleil’s founder and CEO, Guy Laliberte, and West Hollywood officials condemning Cirque du Soleil for firing Cusick.

Some of the nation’s most accomplished performers, artists and celebrities joined the campaign and spoke out against Cirque du Soleil for firing Cusick. They include Nathan Lane, Chita Rivera, Rosie O’Donnell, Bebe Neuwirth and Tony Kushner. The Pulitzer Prize-winning author of Angels in America, Kushner said, “The story of Matthew Cusick’s firing by Cirque du Soleil is only the most recent chapter in the long, dismal history of discrimination, but it’s especially shocking -- and disgraceful -- to find bigotry and ignorance about the AIDS epidemic manifest in 2004 by an organization with so many connections to the performing arts.”

A wide range of leading local, state and national groups -- including HIV/AIDS organizations, LGBT groups, athletic associations, labor organizations, medical groups and others - joined the campaign against Cirque du Soleil. Some of them include: the National Association of People with AIDS; Parents, Families and Friends of Lesbians and Gays; the National Center for Lesbian Rights; the Gay and Lesbian Medical Association; Pride at Work, AFL-CIO; The Project to Eliminate Homophobia in Sport; International Action Center; the San Francisco AIDS Foundation; the AIDS Services Foundation of Orange County; and dozens of others. The settlement of $600,000 includes $40,000 in legal costs for Lambda Legal with the rest of the money going to Cusick. Part of the settlement covers future earnings, since Cirque’s public hostility against Cusick over the last year led him to decide not to return to work for the company. “I wish none of this had ever happened, but if it had to happen I’m glad it ended with such a strong settlement that will impact other companies,” Cusick said. “I look forward to opening a new chapter in my life.”

Miami Herald Article: Future of Gleason name uncertain 10/16/2006

Future of Gleason name uncertain

BY DOUGLAS HANKS

dhanks@MiamiHerald.com

Jackie Gleason's name might come off the Miami Beach theater where he filmed his variety show if AEG Live wins the lease for the venue, but the Great One would live on in the neighborhood, a top executive said today.

Randy Phillips, president of the country's second-largest concert promoter, said the company has considered renaming the Jackie Gleason Theater the Nokia Theater at the Jackie Gleason Square to generate revenue from sponsorship dollars.

AEG owns a string of Nokia theaters across the country. The comments, made to Local 10's Todd Tongen, mean AEG is the only contender for the Gleason lease to say publicly it might want to drop the late entertainer's name from the building.

Cirque du Soleil and the country's largest concert promoter, Live Nation, are fighting AEG to take over the Gleason. All three companies filed proposals that contemplate selling naming rights to the building, but they have not proposed anything that drops Gleason's name from the theater.

Live Nation proposed renaming the Gleason after its famous San Francisco venue, calling it the ''Fillmore Miami Beach at the Incredible Jackie Gleason Theater.'' Cirque has not said what it would call the building.

Phillips was quick to say the Gleason Square option is just one idea under discussion, and that he would drop it if Miami Beach wasn't happy with the change. Our ''business model is not dependant on naming rights,'' he said.

Phillips and his counterpart at Live Nation came together today to question whether Cirque du Soleil can prosper in Miami Beach.

''Trust me: It will not work,'' Phillips told Tongen inside the lobby of the Jackie Gleason Theater. ``This is the wrong market for that show.''

Tongen interviewed Phillips and top Live Nation executive Bruce Eskowitz ahead of this afternoon's hearing on the Gleason lease. The two companies are fighting each other and Cirque to take over the lease.

Cirque wants $55 million in public dollars for a $100 million redo of the Gleason, in exchange for a share of ticket sales. Eskowitz noted Live Nation has guaranteed Miami Beach $1 million in rent a year, and questioned why Cirque didn't set a minimum payment for its rent, too.

''I think if they believed it would work, they would put a guarantee up,'' he said.

The comments come after weeks of Eskowitz being careful not to criticize Cirque. Live Nation is promoting Cirque's Delirium tour, one of the top grossing live acts in the country.

Both Eskowitz and Phillips offered media interviews ahead of the hearing. Cirque did not hold a press availability Monday, but executives are expected at today's hearing at the Gleason.

City Manager Jorge Gonzalez said Cirque initially offered a minimum rent for the theater. That changes once the city requested the rent be calculated from gross ticket sales, rather than theater profits. By taking rent ''off the top,'' Gonzalez said the city is more protected from the ups and downs of the live entertainment business.

A Cirque spokeswoman was not immediately available for comment.

Cirque currently runs five theaters in Las Vegas and one in Orlando -- markets with double the tourists that visit the Miami and Fort Lauderdale areas.

Cirque executives say they see South Florida's growing tourism market, large local population and popularity with Latin American tourists as a perfect match for their shows.

Miami Herald Article: Cirque deal has strings 10/16/2006

GLEASON THEATER

Cirque deal has strings

Cirque du Soleil wants the Gleason Theater, but it also wants escape clauses in case tickets don't sell or it costs too much to renovate.

BY DOUGLAS HANKS

dhanks@MiamiHerald.com

• On the web | Read the Cirque du Soleil proposal
• Video | Gleason community meeting tonight

Cirque du Soleil could abandon its plan to revamp Miami Beach's Jackie Gleason Theater even before construction begins if the entertainment company faces unexpected building costs or trouble securing lenders, according to newly released documents.

The exit clause is one of several protections Cirque wants before bringing its popular human circus to South Beach, a market with far fewer tourists and hotel rooms than the places where Cirque currently operates theaters.

City Manager Jorge Gonzalez's staff released more than 200 pages of documents over the weekend from Cirque and its two rivals for the Gleason lease: national concert promoters AEG Live and Live Nation. The documents offer the first look at proposals submitted last month and kept confidential by the city until days before commissioners are expected to vote on them.

The first public hearing on the Gleason lease is set for 5 p.m. today at the theater. City commissioners scheduled a special meeting Wednesday to select a winner.

Among the highlights from the new documents:

• Cirque would design a South Beach show around its interpretation of Brazil's carnival tradition. Some parts apparently will be racy: Cirque wants a waiver from city liquor laws to show partial nudity during afternoon shows.

• AEG Live promises a range of acts in the 2,700-seat Gleason, from reggaeton rapper Daddy Yankee to family Christmas concerts.

The nation's second-largest concert promoter also touts its ability to bring high-profile television broadcasts to the Gleason, noting an affiliate produced the MTV Movie Awards and VH-1's Diva concert series. And AEG said it would bring Broadway plays back to the Gleason through its theatrical division -- reviving a tradition that ended when Live Nation moved its Broadway Series to Miami's new performance hall.

• Three mock handbills for the Gleason from Live Nation offer a peek at how the company would reposition the theater. The hypothetical headliners come from the alternative side of popular music: folk duo Indigo Girls, punk rockers New Found Glory and roots-rocker Jackie Greene.

AEG's proposal also includes an endorsement letter from singer Lionel Richie, which comes on the heels of Live Nation signing Marc Anthony and Jennifer Lopez as partners in its Gleason bid.

AEG would spend $2 million renovating the Gleason and rent it for $250,000 a year, plus bonuses for higher ticket sales.

Live Nation, the country's largest concert promoter, offered $3.5 million of renovations and $1 million annual rent and limited incentives. Unlike its competition, Live Nation would also pay the Gleason's maintenance costs.

Cirque wants $55 million from the city for a $100 million redo of the Gleason, including adding a restaurant and nightclub. It would give Miami Beach 3.75 percent of its ticket sales and 6 percent of all other revenue in return. Cirque would keep all revenues from naming rights to the building, but could not drop Gleason from the title without city permission.

City staff members predict that will average $6.7 million in rent a year. The forecast hinges on attendance hitting 80 percent for the 415 shows Cirque plans in a new 1,700-seat theater.

Cirque says its six permanent shows in Las Vegas and Orlando all sell at least 80 percent of their tickets, though those markets attract about double the tourists of the Miami and Fort Lauderdale areas.

The new documents show Cirque wants several safeguards in case the Gleason venture disappoints:

• Miami Beach would see its ticket revenue cut in half for any month when attendance falls below 65 percent.

• Though Cirque would have a 50-year hold on the theater, after 10 years it could close its show. If Miami Beach hasn't recouped its $55 million investment, Cirque would reimburse the difference up to $5 million.

• Cirque could close the show after three years if the theater loses money for 12 straight months. Cirque would maintain its lease on the theater and be required to book acts there.

Live Nation did not include an exit clause for its 15-year deal, but AEG Live could walk away from the Gleason after three years if annual losses exceeded $500,000.

The preconstruction provisions would give Cirque an early exit. The deal puts Cirque in charge of construction but also allows the company to back out if it finds that building costs, taxes or insurance have rendered the project ``economically unfeasible.''

Cirque could also drop the project if it can't secure financing.

Gonzalez said the exit clause is fairly typical for city development projects and that the deal overall matches agreements Cirque has for its other theaters.

''I think they're very confident'' about coming to Miami Beach, Gonzalez said. ``What any good business does, though, is mitigate your risk.''

Merrett Steirheim, the former Miami-Dade county manager, said it's unusual for governments to grant such a broad exit clause.

''They're the ones supervising the construction and they can walk away if they feel it's too high? You've got to put some safeguards in that,'' he said.

Miami Herald: 10/17/06

SOUTH BEACH

Residents resist a one-act Gleason

Miami Beach residents express their opinions -- pro and con -- about a permanent show at South Beach's Jackie Gleason Theater.

BY SUSAN ANASAGASTI AND DOUGLAS HANKS

sanasagasti@MiamiHerald.com

Miami Beach residents delivered a message to city officials Monday night: Don't transform South Beach's Jackie Gleason into a theater for Cirque du Soleil's popular acrobatic shows. That was the sentiment at a public hearing to discuss the future of the city-owned Jackie Gleason Theater, which will be voted on by commissioners Wednesday.

''As far as Cirque goes, I do not think that the residents of Miami Beach want to see one act here for the next 20, 30 years,'' said Roger Abramson, a Miami Beach resident and former concert producer. ``The Jackie Gleason Theater is an icon and the people of Miami Beach do not want to see it destroyed.''

For about a year, Cirque's top executives have been selling their pitch to city officials to make South Florida its newest home.

But in July, two top U.S. concert promoters -- AEG Live and Live Nation -- submitted their proposals to take over the theater.

On Monday, more than 100 residents and hoteliers gathered at the Gleason to make their case -- for and against -- Cirque's proposal to create a Brazil/Havana Tropicana-inspired version of its stage show at the Gleason, with about 430 performances a year.

City Manager Jorge Gonzalez outlined three proposals.

• Cirque du Soleil wants to design a South Beach show at the Gleason, with about 430 performances a year. It also would create a large garden surrounding the Gleason as part of the theater renovation. It is asking the city to provide $55 million as part of a $100 million redo of the Gleason.

• Live Nation wants to transform the theater into a venue for pop starts, alternative rockers and live musicians. The Los Angeles-based comedy group also plans to bring comedy acts to the Gleason. Live Nation offered a 15-year deal with $3.5 million of renovations and $1 million annual rent and limited incentives.

• AEG Live has a similar plan, but also wants to bring in theatrical productions, holiday concerts and televised award shows. AEG proposed a 10-year deal, spending $2 million in renovations of the Gleason and $250,000 annual rent, plus bonuses for higher ticket sales.

''Basically, what we have here is: What do we, as a community, want and need for the Jackie Gleason to do for us?'' Gonzalez said. ``Do we want to position the Jackie Gleason going into the future as a single purpose use or a multi-use venue?''

Miami Beach commissioners will select a winner during a special commission meeting Wednesday, creating a balancing act between the needs of the city, the tourism industry and the desire of its residents.

Several hoteliers, including The Delano and The National, endorsed the Cirque plan saying the eye-popping acrobatic show offers a unique attraction that won't compete with the new Carnival Center for the Performing Arts across the bay.

Mark Tamis, general manager of the Delano, urged the commissioners to pick the proposal that encourages the ``luxury brand of Miami Beach.''

''I can't just keep telling people there are a lot of night clubs here,'' said Amir Nben-Zion, owner of the Town House hotel.

Ray Breslin, president of the Collins Park Neighborhood Association, agreed. He has supported the Cirque du Soleil project since 2004, when Cirque was then the only proposal on the table.

''`A permanent venue is absolutely what the city of Miami Beach needs,'' said Breslin, a former travel agent, who says a permanent venue such as Cirque will attract conventions. ``Our bread and butter time and time again is the tourism industry. Don't forget that. If you give the Jackie Gleason just a shot of Botox it will die.''

William Talbert III, president of the Greater Miami Convention and Visitors Bureau, declined to endorse any of the proposals. Instead he urged the city to focus on expanding its convention center.

Many voiced their opposition to turning over the Gleason for a single show enjoyed primarily by tourists.

''This is not Orlando. This is not Vegas,'' said Michael Shertzer, of Miami Beach. ``We want variety.''

Added Raul Mateo: ``One of the things I love about Miami Beach is that I don't have to go across that causeway.''

http://www.miami.com/mld/miamiherald/news/local/15776035.htm

Link to City of Miami Beach web site for proposal documents

The City of Miami Beach has published documents pertaining to the future of The Jackie Gleason Theater.

http://miamibeachfl.gov/newcity/news/JGUpdate.asp

Selected Issues with Cirque du Soleil Proposal for the Jackie Gleason Theater

Selected Issues with Cirque du Soleil Proposal

1. Public property should not be used to generate excessive revenue for neither private enterprise nor government entities,

a. Private revenue

i. Currently, the Jackie Gleason Theater (JGT) is managed and booked by SMG.

ii. In the past, the JGT has provided reasonable revenue for the facility’s managers, in exchange for their services.

iii. However, Cirque du Soleil (CDS) will not only require the City pay $55 million toward the cost of refitting the space and development of the CDS show but CDS will have exclusive use of the JGT facility (with the exception of a lounge space which can be rented by the City from CDS) and 555 15^th Street.

iv. CDS could generate well over $70 million in gross revenue annually.

v. This excessive revenue will come at the expense of the tax payers and the citizen’s loss of a recreational and cultural asset.

b. Government revenue

i. The JGT is the property of the City of Miami Beach.

ii. The City’s government is to serve the needs of the citizens.[1]

iii. Therefore, the JGT is managed by the government on behalf of the citizens and, thus, owned by the citizens.

iv. CDS and the City intend to enter into a partnership agreement to split profits. This partnership creates a conflict between the citizens and their government because the government is using the citizen’s assets to generate revenue for the government, not the citizens.

2. Public property intended to provide recreational and cultural entertainment to the public should be used for this intent, with fee charges if necessary.

a. City assets such as the Flamingo Park Pool and Tennis Center and the Beach Walk are public properties. While these facilities may charge usage fees these fees are not meant to be a revenue source for the City.

i. The Flamingo Park Pool is free to residents but charges a fee to visitors.

ii. The Tennis Center charges a court fee

iii. The Beach Walk is free of charge to all

b. As the City’s parks are for the recreational use of residents and visitors, so too, the JGT is for the cultural entertainment of residents and visitors.

i. CDS has implied their intent is not to fill the cultural needs of Miami Beach’s residents; instead their shows’ content and marketing will target tourists,

ii. Nor, has CDS implied its intent to provide tickets for seniors and students as outlined in the Miami Beach Code 2-46.b[2].

3. Alcohol License / Partial Nudity variances would be required

a. CDS has stated that partial nudity will be included in the show. They are requiring a variance to municipal codes allowing the sale of alcohol where partial nudity appears. This would require variances for the following City codes.

i. Hours of operation (Miami Beach Code 6-41.b.6 “Partial nudity in alcoholic beverage establishments shall occur only between the hours of 8:00 p.m. and 4:00 a.m.”)

ii. Parking

· Miami Beach Code 6-41.b.4 “Parking required for an alcoholic beverage establishment permitting partial nudity shall be a minimum of one space per three seats, all of which shall be located on-site.”

· CDS proposal outlines that parking will be provided off-site at the City’s municipal lots not on-site as required by City code.

iii. Location

· Miami Beach Code Sec. 6-41.a.2 “Location generally. No alcoholic beverage establishment permitting partial nudity is permitted on a parcel of land located:… (2) Within 300 feet of any parcel of land upon which a house of worship, school, public park or playground is located”

· Temple Emanu-El Synagogue is less than 299 feet from the JGT

b. State laws also regulate nude displays.

i. Florida state laws prohibit the depiction of nudity within 2,500 feet of a school[3]. The JGT is approximately 1,975 feet from the Miami Beach Senior High School.

ii. If partial nudity is included in the show, shows would be limited to patrons 17 and older[4] -

4. Historic Preservation concerns

a. The JGT is a vital architectural landmark for Miami Beach, the USA, and the Art Deco movement.

i. The building’s design is a unique collaboration of the Art Deco era’s most heralded names

· Henry Hohauser

· L. Murray Dixon

· Russell Pancoast – grandson of Miami Beach co-founder and developer John Collins

b. Removal of distinct Art Deco design and architecture inside the JGT will reduce its value and historic significance

c. Both the JGT and the 555 15^th Street Buildings have historical and architectural significance and should not be altered.

5. Time to pass all permitting, zoning, and board reviews could be significant and prohibitive for CDS timeline and schedule.

6. Time to re-fit buildings to meet CDS demands could be significant; causing elevated costs and creating incentive for CDS to exercise its “exit clause”.

7. The Theatre is the property of the residents of Miami Beach.

a. The JGT is meant to serve as a community center for arts and culture. Transforming the Theatre into a venue for Cirque du Soleil will, likewise, transform the Theatre’s purpose from community center to revenue center.

b. If the City intends to exploit its resources and transform them into revenue generators it should consider charging admission to the beach, parks, Lincoln Road, the beach walk, and Marina walk, to name a few.

8. Limiting performances to one theatrical company limits cultural opportunities for Miami Beach citizens.

a. The show (if containing partial nudity and serving alcohol) will exclude all patrons under 17. Thus, eliminating all family-oriented entertainment options at the Theatre.

b. As stated in “Discussion and Resolution on the Jackie Gleason Theater” by City Manager Jorge Gonzalez, CDS figures indicate the average patrons spends $216 per CDS event. Given the cost of tickets and concessions, once Miami Beach residents have seen the show, it is unlikely that they will see it again. Therefore, residents will not frequent this public asset.

c. Also stated in “Discussion and Resolution on the Jackie Gleason Theater”, CDS does not expect significant revenue from local patronage and will not consider locals in developing the show’s content or marketing. CDS’s show is not likely to appeal to City residents. This would create a conflict, as the residents and tax payers would financially support and own a cultural institution which does not be benefit them in a cultural manner.

d. Miami Beach residents will have to travel outside the City for musical and theatrical entertainment.

i. The reduction in local cultural options for residents will drive local dollars away from local businesses and out of the community

ii. The elderly, students, and low-income groups will be especially burdened by this migration of cultural entertainment outside the community because of:

· Travel limitations, costs, and time

· Loss of endowment funds providing low cost tickets to these groups

9. Over-saturation of Cirque du Soleil worldwide could reduce attendance and tourism:

a. CDS will soon open shows in Tokyo, Macau, and Europe. One can infer that CDS will continue to expand into other markets/cities.

b. This, coupled with media exposure (television and movie), could cause an over-saturation of CDS; thus, reducing the draw to Miami Beach.

10. Increased risk to City due to single use facility and exclusive facility design/construction.

a. Once the JGT has be re-fit for the exclusive use by CDS, it will limit the City’s ability to use the JGT for other purposes

b. Especially, if CDS exercises its “exit clause” due to revenue loss – this scenario must also assume that the City, too, has lost revenue because of the show’s poor performance

11. Tax-payer expense for the gain of a private enterprise; without direct tax-payer benefit.

a. Tax-payers would bear the burden of $55MM in initial expenses plus, capital maintenance.

b. If the City receives economic assistance from the County, Miami Beach tax-payers might also be assessed for the cost of this assistance; therefore, paying increased City tax AND increased County tax.

c. Generally, property taxes are used for projects of this type when a facility or land is in a blighted zone or an area in need of rejuvenation. The JGT is neither. Hence, property taxes should not be used for this project.

d. If the City uses the proceeds from the sale of the Lowes and Royal Palm properties to fund CDS improvements, it is a misuse of these public funds.

12. Residents will be unduly burdened by the increase in

a. Traffic

i. CDS estimates 2.5 people per car parked at City parking areas. At 1700 seats per show and 2 shows per day, this translates to 1360 cars per day.

ii. One can assume that traffic will be greatest before and after shows.

iii. This means an additional 680 cars clogging streets 4 times each day.

b. Parking –

i. CDS patrons will require an average of 680 parking spaces for each performance. Parking will be managed by the City, in existing city lots. These lots charge $10 per car for special events, as opposed to $1 per hour for general parking.

ii. Non-CDS patrons will be negatively impacted by parking costs and availability especially on peak times like evenings and weekends, and may prove a deterrent to non-CDS patrons.

c. Limited accessibility to Lincoln Road and Washington Avenue districts

i. Patrons of the Lincoln Road and Washington Avenue districts currently enjoy both variety and accessibility – one can simply walk the street, browse menus and shop fronts, and make instant decisions to fulfill their culinary or shopping desires. However, several times of year, namely during Art Basel and the Boat Show, one must wait for a table at their café of choice.

ii. If CDS monopolizes the JGT, their patrons will do the same to Lincoln Road and Washington Avenue: limiting accessibility to residents, local visitors and tourists.

---

[1] City of Miami Beach Charter PREAMBLE - We, the people of the City of Miami Beach, in order to secure for ourselves the benefits and responsibilities of home rule and in order to provide for a municipal government to serve our present and future needs, do hereby adopt this Charter and as part thereof adopt the following Citizens' Bill of Rights.

[2] [The Convention Center Advisory Board shall] advise and recommend to the city commission the most efficient allocation of the city of endowment funds for the purchase of two tickets for the general performances and resale to senior citizens and students residing in the city at discounts of 50 percent or more and to consider the presentation and promotion of performances, programs, shows and entertainment for the benefit and enjoyment of the residents of the city to be held at the Theater of the Performing Arts at reduced admission prices, or for free admission to senior citizens and students residing in the city.

[3] Florida Statute 847.0134 - (1) … an adult entertainment establishment… presents live entertainment… that, in whole or in part, depicts nudity… and that is harmful to minors, as described in s. 847.001, may not be located within 2,500 feet of the real property that comprises a public or private elementary school, middle school, or secondary school…

(2) A violation of this section constitutes a felony of the third degree, punishable as provided in s. 775.082 or s. 775.083.

[4] Florida Statue 847.013 states “It is unlawful for any person knowingly to exhibit for a monetary consideration to a minor or knowingly sell to a minor an admission ticket or pass or knowingly admit a minor for a monetary consideration to premises whereon there is exhibited a motion picture, exhibition, show, representation, or other presentation which, in whole or in part, depicts nudity, sexual conduct, sexual excitement, sexual battery, bestiality, or sadomasochistic abuse and which is harmful to minors.”