HomeMy WebLinkAboutR-96-0237J-96-265
3/29/96
RESOLUTION NO. 2 3 7
A RESOLUTION, WITH ATTACHMENTS, APPROVING THE
FINANCING PLAN, ATTACHED HERETO AND MADE A
PART HEREOF, TO BUILD A NEW SPORTS FACILITY
AT THE FEC SITE; DESIGNATING MR. P. ANTHONY
RIDDER, SUPPORTED BY THE CONSULTANTS FROM
INTERNATIONAL FACILITIES GROUP, TO CONTINUE
NEGOTIATING TO FINALIZE A MASTER DEVELOPMENT
AGREEMENT, IN A FORM ACCEPTABLE TO THE CITY
ATTORNEY, WITH THE MIAMI HEAT; AND FURTHER
AUTHORIZING THE MARITIME PARK BOARD TO SERVE
AS THE STEERING COMMITTEE TO NEGOTIATE ON
BEHALF OF THE CITY OF MIAMI AND METROPOLITAN
DADE COUNTY.
BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
Section 1. The Financing Plan, attached hereto and made
a part hereof, to build a new sports facility at the FEC Site is
hereby approved.
Section 2. Mr. P. Anthony Ridder, supported by the
consultants from International Facilities Group, is hereby
designated to continue negotiating to finalize a Master
Development AgreementV, in a form acceptable to the City
Attorney, with the Miami Heat.
ji The herein authorization is further subject to compliance
with all requirements that may be imposed by the City
Attorney, including but not limited to those prescribed by
applicable City Charter and Code provisions.
ATTACHM 14T (S)
CONTAINED
CITY COMMISSION
MEETING OF
MAR 2 9 1996
Resolution No.
96- 237 -
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Section 3. The Maritime Park Board is hereby authorized
to serve as the Steering Committee to negotiate on behalf of the
City of Miami and Metropolitan Dade County.
Section 4. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this 29th day of March , 1996.
STEPHEN P. CLA MAYOR
ATTES :
WALTER J. 0 MAN
CITY
PREPARED AND REVIEWED BY:
JULIE 0. BRU
ASSISTANT CITY AlftORNEY
APPROVED AS TO FORM AND CORRECTNESS:
A.PA
NN N S, III
CITTT0 Y
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- 2 -
95- 237
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO .
Honorable Mayor & Members
of the ty Commission
FROM
Cesar H. Odio
City Manager
RECOMMENDATION
DATE
SUBJECT
REFERENCES
ENCLOSURES:
March 29, 1996
Approval of Financing Plan
for a New Sports Facility
FILE
It is recommended that the City Commission adopt a resolution approving the Financing
Plan to build a new sports facility at the FEC site and designating Mr. P. Anthony Ridder,
supported by the consultants from International Facilities Group (IFG), to continue
negotiating to finalize a master development agreement with the Miami Heat; and further
authorizing the Maritime Park Board to serve as the steering committee for the
negotiations on behalf of the City of Miami and Metropolitan Dade County.
BACKGROUND
The negotiating team, led by Mr. Ridder, has presented the Miami Heat with the attached
financing plan for a new sports facility to be located at the FEC site. The financing plan
assumes that a new sports facility can be built for $165 million plus additional arena
related parking, retail space, financing costs and reserves for a total of $210 million in
construction funds. Under the terms of the Plan, the County will issue $209 million of
tax-exempt bonds and the City would issue $54 million of taxable bonds. Of this total
amount, the Miami Heat, as Arena operator, will contribute $5.5 million per year to cover
$62 million of the construction costs.
The attached financing plan outlines the components of the bond pledge. As part of the
pledge of Convention Development Tax (CDT) fund residuals and the Project Sources
component, the City and County have agreed to establish a "bond reserve" fund in order
to protect the City and the County's General Fund from any unbudgeted expenditures in
the event the CDT funds or the Project sources do not meet projected levels in any given
year. The City and the County will equally fund the "bond reserve" through annual
appropriations of approximately $1 million each for ten to fifteen years. Once the arena
bonds are retired, the "bond reserve" plus interest earnings would be divided equally
among the City and County. Also, any payments made out of the reserve would be
replaced by future CDT funds so that the City and the County would be fully repaid for
the advances to the "bond reserve".
96-
2J 7
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On March 21, 1996, Dade County designated the Maritime Park Board to serve as a
steering committee during these negotiations on behalf of the County. At this time, I
recommend that the City of Miami authorize the Maritime Park Board to negotiate on
behalf of the City, as well. The Maritime Park Board, together with Mr. Ridder and IFG,
will negotiate the final terms of the master development agreement and other related
business terms, to be presented for final approval to the City Commission and the Board
of County Commissioners.
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1
O rrFUNDING P-LAV-
FORNIEW 'rR
AS OE MARCH
thousands
Ta -exempt bondst Mud ot W
Bond S12e
Construction funds generated from Bond Proceeds
Construction funds generated from Interest earnings
Total ContrucOon funds from Bond Issue
Ejedged revenues:
Average Seaport Contribution from D.O.T. Trust fund for 35 years
Miami Heat/Arena annual payment to County (out of $5,5M) for 35 years
Sales Tax Rebate for 30 years
Convention Development Taxes (with MSEA contribution) over 35 yrs.
Secondary Pledge of Sales Tax - Maximum
Construction funds generated from Bond Proceeds
Construction funds generated from Interest earnings
Total Contrucbon funds from Bond Issue
Pledged revenum
Balance of Miami Heat/Arens annual $5.5 payment for 35 years
Secondary Pledge
Total Source p Con atrugtq,p ands:
Tax Exempt Bond Proceeds
$157,300
Taxable Bond Proceeds
38,574
Interest Earnings during Construction
Total Acquisition Pund
11,126
?ok1 l
Arena Construction
$166,Q00
Parking Spaces
15.000
Retail Space
Total Uaes.
30.000
Exh(bbx A
$209,680
$157,300
11,090
E90
$5.085
$727
$2,000
Ranges from $3.1 M
to $13.5M
$19,600
$53,565
$38,574
3.036
1,610
$4,773
Unknown
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3/28/96
-Components of Proposed Funding Plan for a
Maritime Park Sports Facility
PUBLIC
Facilities State Sales Tax Rebate ($2M/Yr.)
$ 0 M
$ 23 M
$ 23 M
CDT Funds Now Allocated to MSEA
$ 0 M
15 M
15 M
Convention Development Tax
$ 0 M
106 M
106 M
State DOT Maritime Grant
$ 0 M
57 M
57 M
PROJECT
Project Sources ($5.5M/Yr.)
$ 54 MM
8M
62 M
Suites/Club Seats
Advertising/Naming Rights
Concessions
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