HomeMy WebLinkAboutItem #03 - Discussion Item11
TO:
Hon. Xavier L. Suarez
Mayor
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FROM: Miller J. Dawkins
Commissioner
CITY OF MIAMI. FLORIDA
INTER MEMORANDUM
�fT1,;;1rRS OFFICE
93 JUM is
'110� 33
OAT : June 14, 1993 FILE,
SUBJECT: Schedule a Meeting to
Discuss the City's
Responsibility to Miami
REFERENCMeat and the Citizens
of Miami
ENCLOSURESe
From reading reports in the media, the City of Miami is not
receptive to the needs, wants, and desires of the Miami Heat.
The media would also lead one to believe that if and when the
"Heat" leaves Miami, Miami will cease to exist.
Someone really should do a poll of the citizens of Miami to
determine what their true response to the Heat issue is. The
Sunshine Law prevent dialogue between city commissioners on items
they will vote on. I am asking that you schedule a discussion
for the July 22, 1993 commission meeting, I would like to hear
what each individual commissioner has to say, and if they have
any individual concerns. The July 22, 1993 meeting is a zoning
meeting. This could be item number one at 9:00 AM
Some of the concerns I'll seek response to are:
(1) Have Decoma.come to the meeting and tell the commission how
the number of seats was derived.
(2) If Miami does not build another Arena someone else will,
MSEA financed 46-million of the present Arena, now the media
says Miami should build another arena for $100 plus million,
meaning debt services for approximately $150 million, and
explain how this debt service would be amortized.
(3) MSEA is responsible for debt service of $3-Million per year,
what happens if the Heat move, does the debt service
disappear, or will the tax -payer be responsible for the debt
service? .1
(4) MSEA is responsible for maintenance of the facility
what is the annual cost of maintenance, how much
maintenance is directly attributed to the Miami Heat's
operations?
(5) MSEA is responsible for all operating costs/losses.
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Page 2
Mayor Suarez
June 14, 1993
How are losses determined?
last three years.
t
What was lost in the
(6) Have Mr. Matthew Schwartz to come before the commission
and tell us what the economic impact of Heat season
ticket holders is to downtown merchants. I see persons
from North Dade and South Dade, exit the Metro -Rail,
enter the game take the Metro -Rail home; others exit
I-95 park automobiles, enter game, exit game, take I-95
home. Mr. Schwartz should bi�- directed to produce statisti-
cal data to show economic impact on downtown merchants.
The Heat speak of losing money in 1998, tell me what
was the Heat's return on their investment each year
from day one, and how much profit the City of Miami
has received on its investment?
(7) Department of Off -Street Parking spent $4-million for
Arena parking. What is the balance due on bonds used for
this, and how much profit has (DOSP) received from its
investment.
(8) What happens to $300,000 per year city receives as
rent payment for use of land Arena is on.
(9) Heat pays $13,954 per game for 42 games, equals
$586,068 paid for rent.
a. Is this average for the league, below average or
above average?
(10)
(12)
b, Is police protection extra, or must policing
service be provided from $586,068?
c. The cost of maintenance for Heat game is it
extra or does it come from the $568,0687
d. The cost of operations related to Heat games,
extra or from $568,068?
$.75 seat charge equal what for 1990-91, 1991-92, 1992-
1993 -- and what did MSEA use revenue for?
Heat received 47.5% of Arena's share of concession
revenue during NBA games:
a. What does this mean, in terms of 100% of
concession revenue who gets what? Concessionaire,
Arena and Heat?
Does Heat have exclusive rights to all NBA merchandise
93- 469-1
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sold during NBA events, what is the norm for league?
(13) Does Heat have exclusive right to all advertising in
Miami's Arena, what is the estimate of this revenue
Page 3
Mayor Suarez
June 14, 1993
over the last three years? Is the present arrangement
with the Heat, the norm for the league?
(14) Explain suite arrangements:
a. 16 suites, average quarterly revenue.
b. MSEA receives 111,750 - $173,360 quarterly.
c. What does Heat retain as profit on the sale
of suites above what is made by MSEA.
(15) The heat organization is not the only one concerned
about the "the economics," for the Heat economics
is profit; for commissioners, economics is tax relief
for the tax payer.
(16) The article said the commission would bend to suit the
Heat. The commission needs to say where the bend-
ing stops and stress creates a break.
(17) If Miami does not build another Arena, someone else
will! Can the City of Miami absorb more debt service
on another arena? Mr. Strouse's article said "Several
cities are building arenas, Seattle is giving $65-M
to replace their arena. Portland Trailblazer (Franchise)
is spending $171-M to build an arena, tax payers paying
$35 million to fix roads.
In Boston the Bruins Hockey Franchise is building a 160
million dollar arena. The question is who foot the bill
for any new Heat arena, taxpayer, or franchise owners?
The negotiations should not be carried on in the medial
Perhaps other commissioners will have questions before or at the
July 22nd commission meeting.
cc: Commissioners
✓City Manager
Bill Perry
MSEA Board Members
93- 469-1
LOS ANCELES - KANSAS CITY + MINNEAPOLIS 4 W 40TON, D.C. 4 NEW YORK
605 WEST 47TH
SUITE 200
KANSAS CITY
MISSOURI 64112
TEL 816.561.4443
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ARCHITECTURE E LLERBE B E C K E T
Submitted into the public
record in connection with
item on 7` 2 :7
Matty Hirai
City Clerk
Comparative Study for Miami Arena
July 22, 1993
Existing Arena • 15,440 seats (basketball)
• 18 Skyboxes
Modified Arena 0
19,100 seats (basketball)
•
Up to 108 private suites
•
Increased handicapped accessibility
•
Increased vertical circulation
•
Enlarged team facilities
•
Sports Bar
•
Team Store
•
Food Courts
•
VIP and Suite -holders Lounges
•
Club Seating
•
Enlarged Arena Management facilities
•
Enlarged kitchen facilities
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Matty Hirai
City Clerk
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