1. MIAMI MARINE STADIUM STEERING COMMITTEE REPORT TO THE CITY OF MIAMI CITY MANAGER TUESDAY, DECEMBER 11, 2012 1

2. FOREWORD The City of Miami Commission, on May 15, 2012, entered into a Memorandum of Understanding by and between the City of Miami, the Miami Sports and Exhibition Authority and Friends of Miami Marine Stadium, Inc. 501 (c) (3), for the evaluation of renovation and operation options for the Historic Miami Marine Stadium. The Miami Marine Stadium Steering Committee, advisory to the City Manager, was established and called for in the Memorandum. The Steering Committee membership includes Commissioner Marc David Sarnoff, Camila Alvarez, Stu Blumberg, Richard Bunnell, Luther Campbell, Francisco Garcia, Bertram “Chico” Goldsmith, Thorn Grafton, Robert Holland, Lynn Lewis, Jack Lowell, James Quinlan, Anel Rodriguez, and Parker Thomson. The Committee has met on four different occasions: June 5 th, August 28 th, September 25 th and October 30 th, 2012, to assist Friends to identify, in a holistic manner, the uses in and around the Stadium that, over time, can maximize the public utilization of the Stadium and, at the same time, appropriately maximize the economic benefit of the redevelopment of this public area for the City and its residents. This report, composed of two parts, includes an edited version of the summary presented by Friends at the October 30 th meeting as an attachment. Tables of financial projections of the interdependent parts of the development proposal and a template of the sublease of lands are included before the supporting material of the summary. Friends of Miami Marine Stadium, Inc. is a not-for-profit corporation, whose purpose is the preservation of the Stadium and its restoration to useful public operation without requiring City financial subsidy. Friends is the only entity which has, since the Stadium closed in 1992, organized and raised funds to preserve the Stadium. Through Friends’ efforts, in consultation with the City, local citizens, planning and advocacy groups over the past several years, the cohesive Master Plan was developed for Virginia Key and funding sources have been identified and vetted. Due to its substantial contributions and efforts to date, the Memorandum of Understanding identifies Friends as the entity that is entitled and responsible to work, with the assistance of the Steering Committee. The City has entered into a Public-Private Partnership with MSEA and Friends for a two year evaluation period in order to identify the viable renovation and operational options for the Stadium Premises. As part of a viable operational plan, for-profit operators and businesses need to be involved with the development of the Stadium Premises. The proposal as outlined by Friends in this report is in compliance with the Memorandum of Understanding, the intent of the Miami Marine Park portion of the Virginia Key Master Plan adopted by the City of July 2010 and the 1963 Deed. The Deed (see page 11) includes a reverter to the lands conveyed by the County to the City for the creation of the Marine Stadium site. That deed states, “land herby conveyed shall be perpetually used and maintained for the operation of a Marine Stadium and allied purposes only...” Friends proposes to restore and return the stadium to perpetual public use and to develop the surrounding lands as per this report for “Marine Stadium allied purposes.” Friends is committed to accomplishing this project without subsidies form the City of Miami. This material summarizes the development plan that resulted from the collaboration between the Friends of Miami Marine Stadium and the Marine Stadium Steering Committee. We recommend the approval of the parcels which include the Water Basin as well as Parcels 1, 2A, and 2B to be subleased to Friends to realize this project. The City of Miami Commission, on May 15, 2012, entered into a Memorandum of Understanding by and between the City of Miami, the Miami Sports and Exhibition Authority and Friends of Miami Marine Stadium, Inc. 501 (c) (3), for the evaluation of renovation and operation options for the Historic Miami Marine Stadium. The Miami Marine Stadium Steering Committee, advisory to the City Manager, was established and called for in the Memorandum. The Steering Committee membership includes Commissioner Marc David Sarnoff, Camila Alvarez, Stu Blumberg, Richard Bunnell, Luther Campbell, Francisco Garcia, Bertram “Chico” Goldsmith, Thorn Grafton, Robert Holland, Lynn Lewis, Jack Lowell, James Quinlan, Anel Rodriguez, and Parker Thomson. The Committee has met on four different occasions: June 5 th, August 28 th, September 25 th and October 30 th, 2012, to assist Friends to identify, in a holistic manner, the uses in and around the Stadium that, over time, can maximize the public utilization of the Stadium and, at the same time, appropriately maximize the economic benefit of the redevelopment of this public area for the City and its residents. This report, composed of two parts, includes an edited version of the summary presented by Friends at the October 30 th meeting as an attachment. Tables of financial projections of the interdependent parts of the development proposal and a template of the sublease of lands are included before the supporting material of the summary. Friends of Miami Marine Stadium, Inc. is a not-for-profit corporation, whose purpose is the preservation of the Stadium and its restoration to useful public operation without requiring City financial subsidy. Friends is the only entity which has, since the Stadium closed in 1992, organized and raised funds to preserve the Stadium. Through Friends’ efforts, in consultation with the City, local citizens, planning and advocacy groups over the past several years, the cohesive Master Plan was developed for Virginia Key and funding sources have been identified and vetted. Due to its substantial contributions and efforts to date, the Memorandum of Understanding identifies Friends as the entity that is entitled and responsible to work, with the assistance of the Steering Committee. The City has entered into a Public-Private Partnership with MSEA and Friends for a two year evaluation period in order to identify the viable renovation and operational options for the Stadium Premises. As part of a viable operational plan, for-profit operators and businesses need to be involved with the development of the Stadium Premises. The proposal as outlined by Friends in this report is in compliance with the Memorandum of Understanding, the intent of the Miami Marine Park portion of the Virginia Key Master Plan adopted by the City of July 2010 and the 1963 Deed. The Deed (see page 11) includes a reverter to the lands conveyed by the County to the City for the creation of the Marine Stadium site. That deed states, “land herby conveyed shall be perpetually used and maintained for the operation of a Marine Stadium and allied purposes only...” Friends proposes to restore and return the stadium to perpetual public use and to develop the surrounding lands as per this report for “Marine Stadium allied purposes.” Friends is committed to accomplishing this project without subsidies form the City of Miami. This material summarizes the development plan that resulted from the collaboration between the Friends of Miami Marine Stadium and the Marine Stadium Steering Committee. We recommend the approval of the parcels which include the Water Basin as well as Parcels 1, 2A, and 2B to be subleased to Friends to realize this project. 2

3. MIAMI MARINE STADIUM & MIAMI MARINE PARK FINANCIALS FOR PARCELS 1, 2A, & 2B 3 **Not including compounded interest

4. MIAMI MARINE STADIUM & MIAMI MARINE PARK FINANCIALS FOR PARCELS 1, 2A, & 2B 4 NOTE TO PROJECTIONS: i.Revenues are estimates based on current assumptions, which may change as more knowledge on the Miami Marine Stadium’s marketability is obtained. ii.Revenues include facilities charge, food and beverage, parking, rental charges, and Ticketmaster rebates. iii.Revenues do not include merchandise income, premium seat revenues, revenue from “ticket” charges to boat attendees, or sponsorship income. iv.Operating Expenses are projected to increase at 3% annually. v.No real estate taxes are paid as Friends of Miami Marine Stadium is seeking a State exemption from these charges. vi.There is no interest cost because the Miami Marine Stadium will be paid for by contributions and grants. vii.Management fee is $120,000 minimum or 7% of gross revenues, whichever is greater. viii.Initially, deficits are to be covered by endowment for Marine Stadium raised by FMMS. There is no interest income assumed on the endowment. ix.The five year projections show the Marine Stadium making a profit after startup and generating revenue which exceeds the initial endowment. Friends of Miami Marine Stadium seeks to accomplish the following: i.To provide adequate capital and operating reserves ii.To generate enough revenue for FMMS to operate and serve its oversight function to ensure that the Miami Marine Park is operated properly, and in the public interest. x.To the extent that there are supplemental revenues, FMMS believes that they should be used in a manner consistent with the Marine Stadium Deed. We are pleased to discuss how excess cash generated should be handled with MSEA and the City Commission and develop an appropriate strategy..

5. MIAMI MARINE STADIUM & MIAMI MARINE PARK ESTIMATED REVENUES – YEAR ONE 5

6. MIAMI MARINE STADIUM & MIAMI MARINE PARK EVENT LIST 6

7. MIAMI MARINE STADIUM & MIAMI MARINE PARK BUILDING OPERATING EXPENSE STATEMENT – YEAR ONE 7

8. MIAMI MARINE STADIUM & MIAMI MARINE PARK CONTRACT SERVICES – YEAR ONE 8

9. MIAMI MARINE STADIUM & MIAMI MARINE PARK PAYROLL COSTS – YEAR ONE 9

10. MIAMI MARINE STADIUM OPERATIONS & REVENUES PROJECTIONS 10 *NOTE: INCLUDES REVENUE OF $330,000 FROM LAND LEASE FOR PARCEL 2B – MIAMI MARITIME CENTER.

11. MIAMI MARINE STADIUM OPERATIONS & REVENUES PROJECTIONS 11