TITLE
Report on Proposal for a Holiday-Themed, Temporary Fair at Tropical Park in November and December 2020 � Directive 200908

HEADER
Date: To: Honorable Chairwoman Audrey M. Edmonson
and Members, Board of County Commissioners From: Carlos A. Gimenez
Mayor

STAFF RECOMMENDATION
On May 5, 2020, the Board of County Commissioners (Board) approved Resolution No. R-430-20 directing the County Mayor or County Mayor�s designee to review and consider a proposal from Santa�s Enchanted Forest, Inc. (Santa�s) to operate a holiday-themed, temporary fair at Tropical Park in November and December 2020, and advise the Board whether the Mayor finds that it is in the County�s best interest to waive competitive bidding and proceed with such a proposal, and that the County Mayor shall consult with the District 10 Commissioner before making his recommendation.

Based on my assessment and review of the proposal, dated April 28, 2020, submitted by Santa�s to the Board (Attachment A), and in consultation with District 10 Commissioner Javier D. Souto, it has been determined that it is not in the best interest of the County to recommend a non-competitive bid waiver for Santa�s to operate a holiday-themed fair at Tropical Park due to the following reasons:

* Santa�s has had an uncontested stay at Tropical Park for 35 years. The first concession agreement with Santa�s began in 1985; Second and Third agreements followed for a final expiration date of March 14, 2020 for a total of 35 years, with no extensions remaining.

* There have been numerous reported concerns to the Miami-Dade Police Department about the management of the annual event and the expiration of the lease provides us with an opportunity to develop an improved holiday event for our community�s families and children, at the appropriate time.

* The entry fee was prohibitively high for many families: children and seniors are $27.10/person and adults $35.51/person. This does not include additional fees for rides and cost of food purchased at the event. We understand that Santa�s proposal has a �goal� of free admission to 50,000 �underserved families;� however, it should be noted that annual attendance at Santa�s is estimated to be 361,000, based on Santa�s last reported attendance figures from 2016. In light of the financial crisis affecting the livelihood of our residents, the admission and additional fees to the hundreds of thousands of families and seniors who must pay are unacceptable. Our plan is to offer a free holiday event at Tropical Park, if the status of the pandemic allows.

* Santa�s has offered assurances that through hired experts and adherence to industry standards for events like this, it will provide a safe environment for families. However, regardless of experts and industry representations, the status of the Coronavirus (COVID-19) pandemic will determine whether large numbers of people will be allowed to congregate in the confined space of the site. It also should be pointed out that Santa�s has a disturbing track record of non-compliance with existing rules and requirements (please see below).

* Since amusement rides are a large component of the event, achieving social distancing for persons on these rides and effectively disinfecting between uses could be difficult and, therefore, represent a potential health hazard.

* The District Commissioner is not in support of issuing a bid waiver to Santa�s.

Additionally, please note that:

* As of July 10, 2020, Santa�s has only partially responded to the County�s Notice of Non-Compliance issued February 11, 2020 (attached hereto as Attachment B), and has still failed to remedy 21 of the 47 distinct violations set forth therein. Violations 3, 5, 7, 8, 9, 10, 11, 12, 13, 15, 16, 24, 29, 31, 32, 35, 36, 37, 38, 39 and 46 continue unremedied.

* Commensurate with the foregoing, Santa�s has only partially responded to the County�s Notice of Lease Expiration issued March 5, 2020 (attached hereto as Attachment C) by failing to completely restore the Facilities to a neat, clean and safe condition, and has, as of July 10, 2020, still failed to provide the County with the required financial statements and report of sale within 60 days of the date of Agreement expiration.

Over the years, Santa�s has received notices, warnings and memoranda of concern regarding its conformance with the terms of its Lease. It is acknowledged that while Santa�s eventually has addressed most of these matters, it is the repeated nature of these issues throughout the history of the Lease that is cause for serious concern about Santa�s business practices. It is especially concerning now given the importance of complying with requirements and guidelines needed to protect the public during the current COVID-19 health crisis.

* Acknowledging that most of these issues eventually were addressed by Santa�s, the following are highlights of significant items of concern have been identified over the past twenty-plus years of Santa�s operation:

1. Multiple Notices of Default and Notices of Non-Compliance issued to Santa�s during the contractual term for violations including, but not limited to:

a. Failures to comply with construction requirements;
b. Unauthorized early season opening;
c. Lack of timely insurance proof;
d. Advertising violations;
e. Staff identification violations;
f. Patron discrimination based on sexual orientation; and
g. Failure to remediate damage to Park property upon event conclusion.

2. Multiple County admonition letters issued for the following:

a. Unauthorized construction activities without proper permitting in place;
b. Non-removal of lighting and other materials upon event conclusion;
c. Building permit violations;
d. Failure to remediate damage to Park property, similar to #1.g above;
e. Animal welfare concerns;
f. Noise nuisances;
g. Unauthorized activities such as advertising and commercial activities; and
h. Concerns over quality of service.

3. Multiple Uniform Civil and Building Code Violations issued by the Miami-Dade County Building Department including:

a. Building violations;
b. Electrical violations; and
c. Plumbing violations.

4. Multiple Notices of Violation issued by the Miami-Dade County Department of Environmental Resource Management, including:

a. Violation of Section 24-28 of the Miami-Dade County Code (Nuisances injurious to health (sanitary nuisances). Santa�s was cited for this violation on 12/26/18, which according to the Code means a condition existed involving one or more of eight violations, among which include �untreated or improperly treated or disposed of human waste, garbage, offal, dead animals, or dangerous waste materials.�).

5. Notice of Violation and Final Notice of Violation issued by the Miami-Dade County Fire Rescue Department including:

a. Failure to provide fire suppression systems; and
b. Failure to provide clear access (fire lanes) to all RVs and travel trailers.

6. Multiple County inspection reports and emails generated, outlining dozens of unremedied violations and damages to Park property.

7. Multiple Memoranda issued by Senator Javier D. Souto, Commissioner District 10, covering a wide range of concerns, including:

a. Inappropriate electrical equipment and permitting;
b. Non-removal of lighting;
c. Unauthorized extension of Santa�s operations outside the leased area;
d. Unauthorized/illegal signage;
e. Unauthorized use of Park premises for storage of semi-tractor trailer trucks; and
f. Lack of proper picture identification by Santa�s employees (Shannon Melendi Act concerns).

With respect to other event usage, the Equestrian Center has lost at least fourteen major equestrian events over the past 17 years potentially drawing 18,000 spectators annually as a result of the limited space, parking, hours, and number of horses allowed (150) during Santa�s operation. Correspondingly, Santa�s occupation of the surrounding property east and south of the Equestrian Center has also limited the operating space for those equestrian events that can be conducted, and has also created safety hazards for those events by restricting the traffic flow for vehicles by blocking the south end of the facility.

Lastly, note that while a recent independent appraisal conducted in 2019 for the land in question indicated that the �as is� market value of the annual ground rent is $620,000, the most recent unaudited analysis of rental payments made by Santa�s for 2019 show only $304,331 received. This amount is less than 50% of what the County is entitled to based upon that 2019 appraisal. The amount now being offered in Santa�s correspondence is $425,000, still significantly less than market value. Nonetheless, this decision not to recommend a bid waiver is not a result of this inadequate rental fee; the decision is based primarily on our commitment to providing a free, safe and higher quality holiday event for our community�s families.

Finally, I want to reiterate that I personally met with Santa�s owners last year on August 21, 2019 and again on October 31, 2019, at which time I discussed with them the County�s intentions of exploring alternative future uses of our Tropical Park site. During these meetings, Santa�s owners also discussed their proposals for continuation of their then-existing holiday event, with the knowledge that their lease with the County was due to expire March 14, 2020. My recommendations today take into account both those discussions and their letter of April 28, 2020.

If COVID-19 circumstances change and a holiday-themed event is possible, I have directed Miami-Dade County Parks, Recreation and Open Spaces to work on a family-oriented event that is free and open to the public to enjoy. It is more important than ever to be sure that families in our community have free and safe opportunities for recreation and celebration in light of the health and economic financial crisis caused by the pandemic. In accordance with Ordinance No. 14-65, this memorandum will be placed on the next available Board meeting agenda.

Attachment A � Letter to the Board from Santa�s dated April 28, 2020
Attachment B � Notice of Non-Compliance dated February 11, 2020
Attachment C � Notice of Lease Expiration dated March 5, 2020

c: Abigail Price-Williams, County Attorney
Geri Bonzon-Keenan, First Assistant County Attorney
Michael Spring, Senior Advisor, Office of the Mayor
Maria I. Nardi, Director, Parks, Recreation and Open Spaces
Melissa Adames, Acting Director, Clerk of the Board
Yinka Majekodunmi, CPA, Commission Auditor
Eugene Love, Agenda Coordinator