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Home My WebLink AboutR-01-0139J-01-147 2/8/01 RESOLUTION NO. Ly 1 1 12" A RESOLUTION OF THE MIAMI CITY COMMISSION ENDORSING, IN PRINCIPLE, THE CONCEPT OF THE CONSTRUCTION OF A STATE OF THE ART BASEBALL STADIUM FOR THE FLORIDA MARLINS IN THE CITY OF MIAMI ("THE CITY") ON REAL PROPERTY OF THE CITY; STATING ITS INTENT TO ACCEPT THE FUNDING SOURCES OUTLINED BY THE MIAMI-DADE COUNTY MAYOR AND THE FLORIDA MARLINS AND TO ASSIST IN COMMITTING OF THOSE FUNDS FOR THIS PURPOSE; FURTHER PROVIDING THAT: (1) THE CITY WILL NOT PARTICIPATE IN THE FINANCING OF THE CONSTRUCTION OF THE STADIUM, (2) THE CITY WILL BE PROVIDED WITH A REVENUE STREAM FOR USE OF THE REAL PROPERTY, AND (3) MIAMI-DADE COUNTY WILL RESOLVE ALL FINANCIAL ISSUES PENDING BETWEEN THE CITY AND MIAMI-DADE COUNTY TO THE CITY'S SATISFACTION. BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The concept of the construction of a state of the art baseball stadium for the Florida Marlins in the City of Miami ("the City") on real property of the City is endorsed in principle. Section 2. The City Commission states its intent to accept the funding sources outlined by the Miami -Dade County Mayor and the Florida Marlins and to assist in committing of CITY COMMISSION Y-FE'T"NG OF hes�iulxon Vo. those funds for this purpose. Section 3. Further, providing that: (1) the City will not participate in the financing of the construction of the stadium; (2) the City will be provided with a revenue stream for use of the real property; and (3) Miami -Dade County will resolve all financial issues pending between the City and Miami -Dade County to the satisfaction of the City. Section 4. This Resolution shall become effective immediately upon its adoption and signature of the Mayor Y PASSED AND ADOPTED this 8th day of February 2001. In accordance �A,,ith Miami Code Sec. 2-38, since the M t{"i1 Ic�gs' ai1Cn by ,signing it in the de: ignat L, h rercistv, () tie:.'L73':it'•,`:% eii �ct41,`Fi �'Jitl l tt iL eiE'�p�ic: O1�regarding same, without theMayor ATTEST: WALTER J. FOEMAN, 17MC7 VILARELLO ATTORNEY W5081:BSS CLERK JOE CAROLLO, MAYOR did not indicate aprrara! of I��iSlc:t'.^.,I Jon date# /G.c rna5 J. FoemarlAO& Ierk AND CORRECTNESS: 1� If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. Page 2 of 2 01— 1 4.119 28 CITY OF MIAMI, FLORIDA _ INTER -OFFICE MEMORANDUM TO: Honorable Mayor and DATE: January 31, 2001 FILE: Members of the City Commission SUBJECT: Marlins Baseball Stadium FROM :AManage enez REFERENCES: ENCLOSURES: Presentation and progress report concerning the Marlins Baseball Stadium. EGA:mea 01-- 139 Jail-JY-uI I I : luaM I -rami it ur MIAMI-b.vWI»IUMtK KCI+AI vv wae�o• CITY OF MIAMI, FLORIDA C. STRICT 4 INTER-OFFIf E MEMORANDUP COMMISSIONER REGALADO Carlos Gimenez DATr January 30, 2001 FILE City Manager SUejkCr Discussion Item i 'ROM REFERENCE$ Tomas Regalado Commissioner I ENCLOSURE' Please place the following items on the agenda of the City Commission mceting to be held on February 8, 2001. i 1. Discussion about the performance of NET Offices 2. Discussion about the Orange Bawl as a potential site for the proposed Marlins Ballpark Cc: Agenda Office LZ HVI to I MiYk ry 1'11 J].:\ i 3 Oil- -139 t Pral t• sm tk 423 tEVA STADIUM SITES W a co � � n Cp ARENA EAST` ry NE 9TH ST Advantages: _ - r Portion of site is $ W omernment ownedNE 8T4 ST Easy expressway access- Sufficient ccesfs Sufficient land vailable f n parking W_ 7TN .,-Zoning in place i a Land useesig tion in i RORIflA FJkST COAST RR place y Metrorail Atatiort NF_ amST immediately abjpcent to Reasonabl iss to Metromdve ", . '•ate;:, - ....—_ W - VINE 0.0011�2 - � -'�� !� I�ir11� ■�1 • Ir1111�� Bill OEM . .. � ■111 11iM ➢DRI Issues MIAMI 4.9 ➢Cancellation of w ARENA N �" KE7aT existing management Y r agreement at Miami Arena ° a ➢Port impact ��n 3„ - y = nE.INT t :r Menti ■wr 3 wlnrri = RE a NT Kw ass 4 Md b c Ak rAIVAI& vv jo loft Lu IOU + • 9 '' , f 7 r$ `0-,'$�� ►- � may'" � �"'� ��'` m..r. - � �' �I �,,�� 1� � � �_ AN:_ ARENA WEST"_ Advantages:.. - 4 HYY 9TH ST; �= Land is government owned 4 Easy expressway access � Sufficient land available for NAV BTR si ' Zoning in place _ } designation in tand'use dace Wetrorail $tation immediately adjacent to site F , 1 Reasonable access to ...,.-.. "'"��"ST ,. ... L Metromoverp -Ar, HW TfH ST . -- NOW } ARENA WESTL-J- � Disadvantages: ®Ateaer M ➢ Long term land lease with Poinciana Village 7a ➢Several Poinciana Village condos Mt AMsapute privately owned e ➢ Requires relocation of individuals O.A ➢ Requires partial aberSdffidA.M.E. closing of NW 2 Avenue ➢Cuts Overtown in half ➢ DRI Issues �� a ➢ Relocation of Sawyer's ♦ p Walk CL �m"➢ Port impact LU ,.> Probable neighborhood 15 ST _• � Q W OppS� 43fo the public -- record in conneftn with � _ on C�/ ^ _ "J niee* HW 15ST arr r p PMM*f ~ V crswa � /..rm i p&W i8T 0 _ e aft ,All • � ! — y% �* � .,,�'' ��1Ri i'n'n �'^ Y.�.w � � /. 1 ,,Kt I• f il' t . � Iii' � � ri' t � i�- � � '�: r ' r ,►.„,iii j _._ low, p .i� i�,' 1 l"� _ M BICENTENNIAL PARK "A99 h Advantas. r Land is preserdti`y available r Con struction period can commence �ILY� a.G►6T �8T T . immediate]6 Zoning rin lack Land use designation in ,place Good access to Metromover � . �tw,wr i L'F w , j! } z e. r F r Nfeila e BICENTENNIAL PARK - "A" Disadvantages: );;-Environmental cleanup cost could be substantial );;-No return to City under proposed transaction ➢ Parking limitations during times of competing events at American Airlines Arena and Performing Arts Center );;-No nearby Metrorail Station ➢ DRI issues ➢ Port impact �-"➢Significant traffic impact I Submitted into the public C� fecord in connection with fMM `2 Y on Wafter Foww Clty Cleric e w i _ _S��■■!■` l vn R Bicentenn al Park -1113" Advadtages: r Land,, is presently available fort stadium . �IC hE{iSt GifST eR I or struction pe io&can pmmence immediately , &? Zonigg-in pla e ,jggkod use designation in place Good access to Metromover Oark aicreage remains the same Awl rEeTMy* as today V-1 m PUUELVV _:$ Bicentennial Park - "B" Disadvantages: ➢ Environmental cleanup costs could be substantial ➢ No return to City under proposed transaction ➢ Reduction in tax base ➢ Parking limitations during times competing events at American Airlines Arena and Performing Arts Center ➢ No nearby Metrorail Station ➢ DRI issues ➢ Port impact ➢ Significant traffic impact ➢ Regulatory issues with filling slip ®➢ Extensive approval process for �-L relocating Biscayne Blvd t ➢ Land acquisition costs for Biscayne Blvd relocation & expansion of park ➢ Traffic impact during road construction n /1 O T _ fail r � :mar.. : s5�'1 :: .,,n_'Fnmcsi��•++F sn E,#. j t jjy'� mop Asa .' i��'��/ �1 ! +i��.'►t AW k, r Advantages: ➢Maintain park like setting ➢Good access to Metromover 'No zoning issues ➢Land use designation in place , f a Disadvantages: y Environmental cleanup costs unknown y No return to City under proposed transaction Parking limitations during times of competing events at American Airlines Arena and Performing Arts Center No nearby Metrorail Station y DRI issues Port impact Significant traffic impact y Regulatory issues with filling slip Extensive approval process for relocating Biscayne Blvd Proposed geometry of boulevard may not meet State requirements Traffic impact during road construction Construction cannot commence immediately Lose park acreage L a } Orange Bovd7THST _ s Advantages: .ad is available W 6TH ST k Zoning in place _ A, �= Land use designation in � p lace �. yNo DRI issues ethw.� _ demolition Orange BPwl ';_ _ Easy expr*ssway access boo l public ac q # from k existing roadways - :- } t1W ARD ST IL 'NW 2ND $T Orange Bowl Disadvantages: ➢ Existing commitment at Orange Bowl including 10 -year agreement with University of Miami which does not contain a cancellatio clause ➢ Existing debt service of approximately $13.8 million ➢ No Metrorail or Metromover access ➢ No return to City under proposed o transaction Sued into the public M Mco d in 00nnft-Wn with W.. on j CO Walter Fn CIO* Milo 11111f�i��111� .0 lS11�1 �.. �� ■111111111■ �� 11M1�11 tiverfr ;dvan- Y P! ximity to 0n e , j SE2ND ST r,._.. arking s3W2NoST v, Al r f ➢ Good access to �s Metromover" ' r .. x ° - Easy access Rf r m expressways y ccess to Reasonable a-- - ,''Oetrorall -- _--• , _ Excellent access-to orailLif new station. E Within wSlking : distzffce of CBD Good public scq from existing; roadwayj SE 6TH ST o Potentially spur _ addltionai.drelopment sE 6TH ST _ cin .river • Y No Port impact r S w 1 S T W i o w n D r Riverfront "b r Disadvantages: );;-Land cost 2.22 AC );;Zoning issues e ➢DRI issues + 3 s r S w a s T )o -Land use designation Miami issues ➢Timeframe for Center construction 5.39 AC ➢Additional construction N Florida Power 3.76 AC # and Light costs Substation E St s r a (A V,t Proposed Financing Alternatives • The Miami -Dade County proposed arrangement with the Marlins anticipates the use of five revenue streams to finance the stadium. • These revenues are: Rental of the Stadium; 4% Ticket Surcharge; Sales Tax Rebate; Parking Surcharge and Convention Development Tax. • If the rental is payable during the construction period, the $6 million a year for 40 years will finance $73.3 million ata 1.25 times coverage over 40 years, if not, capitalized interest will reduce this amount by almost $ 10 million. • There is $4.8 million a year in bondable revenues and principal and interest of $192 million over 40 years. • This financing will have to be done on a taxable basis. Annual Rental Bond Issue 1 4 7 10 13 16 19 22 25 28 31 34 37 40 Years ❑ Principal ® Interest RYE ROL 5 4.5 4 3.5 3 0 '~ 2.5 2 1.5 1 0.5 0 Annual Rental Bond Issue 1 4 7 10 13 16 19 22 25 28 31 34 37 40 Years ❑ Principal ® Interest • The Marlins plan to place a 4% surcharge on ticket sales to a maximum of $6.5 million for debt repayment. • Using this revenue stream would mandate that bonds financed from this source would be taxable and the market would want a 150% debt coverage ratio. • After capitalized interest costs, this source would fund $53.5 million at a principal and interest cost of $171.6 million over 40 years. • If the State Legislature approves a sales tax rebate o- the taxes generated from the stadium for the 40 year term, this source could finance approximately $65 million for stadium construction after three years of capitalized interest. • This assumes a 125% coverage on the bonds with $5.2 of the $6.5 million bondable and at a cost of $208 million over the 40 years. • Should the appropriation be set at $6.5 million, the amount available would increase to $80 million. a �m a V 6 5 4 0 0 '~ 3 2 1 0 Sales Tax Bond Issue 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 3133 35 37 39 Year ■ Interest ■ Principal • If the State Legislature extends the parking surcharge in perpetuity, the City has been asked to pledge $2 million annually for debt repayment from the parking surcharge that would be generated from baseball fans parking at the stadium. • This would be a tax exempt first lien pledge and would produce $30.5 million for stadium construction. • The total cost of the debt over 40 years would be $80 million. 2 1.8 1.6 1.4 1.2 0 '~ 1 0.8 0.6 0.4 0.2 0 Parking Surcharge Bonds 1 4 7 10 13 16 19 22 25 28 31 34 37 40 Year 91 Principal ■ Interest • The Convention Development Tax produced revenue of almost $30 million in fiscal year 2000. • This tax supports the debt repayments and operations of the Miami Beach Convention Center and the Miami Arena. • It also supports the $6.5 million operating subsidy for the American Airlines Arena. • It pays for the bonds issued for the Performing Arts Center and a subsidy for Center and Cultural Grants. a* i OZZO 1 Revenue and Current Obligations 250 200 � 150 � 100 50 0 Convention Development Tax — Existing — Revenue ti ti ti ti ti ti ti ti ti ti ti ti ti ti Year �8 @ Convention Development Tax "Available Revenues (5% Growth) N N N O O O O O O O O O O O O O O O O O O O O • If the County continues to pledge its sales tax revenue as a secondary pledge for the CDT debt, a series of Capital Appreciation Bonds with a principal value of $779 million could be issued to produce the balance of the funds for the stadium. • This issue would require that the market accept issuing debt based on a 5% growth rate for the 40 years and have net proceeds of approximately $190 million and be sufficient to fund the construction and infrastructure costs. • The existing Convention Development Tax Bonds have been issued factoring in a 3% growth. • If that is the limit to the bondable growth allowed by the market, there will not be sufficient capacity from this source to fund the stadium. • Maximizing the 3% growth will produce $406 million in bonds with net proceeds of $69 million, approximately $120 million short of the amount needed. .P.4 Convention Development Tax Available Tax and CAB Issue 90 80 70 60 50 40 30 20 10 0 -10 2001 2005 3 % Growth 2009 2013 2017 2021 2025 2029 2033 2037 Year ■ Tax ■ Bonds • In summary, the financing package will consist of five revenue sources: Rent, Ticket Surcharge, Sales Tax Rebate, Parking Surcharge and Convention Development Tax. • The debt service from all of these sources will average approximately $40 million annually for the next 40 years. , 3 Stadium Financing 0 ��Annual Debt Service by Source Cid 60 50 40 0 '~ 30 20 10 ON N N N N N N N N O O O O O O O N N �-+ , J O W �O N U1 O O O O O ONO W-► � J O M CDT ® Parking ■ Sales Tax Surcharge ❑ Rent �a` Stadium Financing g Annual Debt Service by Type ►_ I-► 4�1- J O W G\ 'O N Vl W h-+ .p -4 O Year ■ Interest ® Principal • There is a site specific revenue source for the Miami' River Site. • That would be a Tax Increment District for the River from its mouth almost to the airport three hundred feet from each bank. • A Tax Increment District which was set up to capture 50% of the increment would be estimated to produce revenues of $227 million over the next 30 years. • Miami -Dade County has asked the State to give back all of the Sales Tax generated by the facility and Miami to give back all of the Parking Surcharge generated by the facility. • If you assume that 20% of the persons attending baseball games at the facility would come by Metro - Rail, the County will be receiving $2.7 million annually in revenue also from the facility. This $2.7 million would produce approximately $40 million in bonds to finance the stadium. • The entire financing plan is contingent on three issues. • First, the State must authorize a sales tax rebate for the stadium for the 40 year period. • Second, the State must extend the parking surcharge for the 40 year period. • Third, the financial markets will have to agree that the County can bond a 5% growth in the convention development tax over the next 40 years. • Should these three events occur, the financing for the baseball stadium can be achieved.