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.

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[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.”