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HomeMy WebLinkAboutSubmittal-Don Worthit �' b 41 ��� �' - � r - - Condition Appraisal and Structural Review Miami Marine Stadium Roof Structure Miami, Florida Volume I - Report prepared for The Hartford Steam Boiler Inspectionand insurance Co. One State Street Hartford, Connecticut 06102 SUBMITTED INTO THE PUBLIGRECORD FOR ITEM, Fzi UN io-N ar. prepared by Simpson Gumpertz & Heger Inc. 297 Broadway Arlington, Massachusetts 02174 Tel: 617 643-2000 Fax: 61.7 643.2009 Comm. 93055.01 May 1993 We estimate that the above repairs will cost about $1 to $2 million. A copy of our estimate is included in Appendix E. These repairs should extend the life of the roof structure well over 10 .years, except that the waterproofing may require replacement in a 5 to 10 year period. To evaluate the cost-effectiveness of the repair solution, we made a schematic estimate of the cost to remove and replace the entire roof structure above the column tops. Because of the 'complexity of shoring and forming the roof structure, we retained Mr. Ted Lobus, a construction engineer with The George Hyman Co. of Baltimore, Maryland, to assist us. This estimates indicates removal and replacement to be in the range of $4 to $5 million. The copy of this iestimate is included in Appendix E. In addition to the above roof structure repairs which are necessary to prolong the life of the roof structure, other elements in the structure such as foundation tie beams, column bases, ramp stab supports, and grandstand beams are suffering from advanced deterioration and should be evaluated and repaired before reopening the building. A ballpark estimate of the cost of this work is $1 million. We have determined no direct relation ship between the need for an of the above repairs and p Y P the occurrence of Hurricane Andrew. A 9 � SUBMITTED INTO THE PUBLIC RECORD FOR 40 ITEM Pz i ON ro u aY. Name Organization Title Website Event James Quinlan The Rhythm Foundation President www.Rhythmfoundation.com Promotes Latin and World Music in Miami Arie Kaduri NYK Concerts President www.nvkconcerts.com One of most respected Independent promoters in U.S. Arturo Aballi Miami Rowing Club President www.Miamirowing.com High School and Masters Comptetlons at Stadium Bruce Orosz ACT Productions President www,actproductions.coni Highly respected special events promoter; "family" events Mike Schrieffer F1 Champboat Series President www.champboat.com Boat racing series-Natonal television exposure; event in 2010 Christina LaBuzetta Location Resources President www.locatonresources.com Location scout; works for CSI Miami and others Lance O'Brien Kuchashok Musik President www.kulchashok.com Natonally recognized promoter of Reggae Music Alan Strauss Miami Sports International Director www.board-up.net already does highly successful Board -Up Miami event at Stadium Steve David American Boat Racing Association Representative www. abrahydroolanes, corn power boat races Joe Chi Miami Dragon Boat Club President www.miamidragon.corT dragon boat races; fastest growing outdoor spectator sport Amaury DaCosta Miami International Triathlon Event Director www.mitriathion.com Already runs several events a year at Stadium site Richard Serotta Reeffest Executive Director www.reeffest.org Serotta promoted concerts at Stadium Teresa Callava Kiwanis Club of Little Havana Marketing Director www.kiwanislittlehavana.com Does Calle Ocho Festival; wants to de events at the Stadium Arthur Edelstein Soul Station LLC President www.souistationlic.com Promoter Julio Viyella Team Row President www.teamrow.org Runs a community rowing program Gloria Urbin American Power Boat Racing Association Executive Director www.apba-racing.org power boat races Anthony Albello Oceans Promotions President www.oceanspromotions.con Experienced promoter of festivals Rob Childers Multirace www,multirace.org Does 2-4 triathlons a year; is moving events to Stadium Basin Raul Esquijarosa Seafest Seafood Festival to be done in conjunction with Boat Show Russell Etling The Russel Etling Company President www.Napoleonexhibit.com previously promoted events at Stadium; on Orange Bowl Committee Michael Przystawik Waltzing Waters, Inc. President www,waltzingwaters.com "liquid fireworks" waterfeature; could be accompaniment to events Lizzie Easton Soula Booking President concert promoter Debbie Gomberg HD Triathlon Director Ran Triathlon at Marine Stadium Basin, will return next year William Muncey Unlimited Hydroplane Racing Association President www,ulhra.org Wants to hold races at Stadium SUBMITTED INTO THE PUBLIC RECORD FOR ITEM Pz i ON a 0 0 0 Football on Marina Bay floating platform a Sports Rambling http://sportsrambling.wordpress.com/2008/12/23/football-on-marina... • Sports Rambling Just another WordPress.com weblog • Home • About Football on Marina Bay floating platform 2008 December 23 tags: floating platform, football, Singapore football, Soccer, The Float (a-), Marina Bay by w •The Straits Times reported today that the first football match on a floating platform could finally happen on 11 February next year, when Singapore plays an international friendly against Paraguay at The Float @ Marina Bay, where a football pitch floats on water. • The Float @ Marina Bay, on which a football pitch'floats' in front of a w =o LL. 0 OC O U LU m CL 0 0 Z O �N LU E- 1 of 2 10/5/2009 1 1:11 AM Submitted Into the ptibliC� record .4 item 1'< i on 16; - Priscilla A. Thompson City Clerk Marine Stadium Developer (Developer) Developer Development Fee Services Marine Stadium Lessor, LLC (Real Estate Owner/Lessor) 80% - Managing Member, LLC 20% - Master Tenant, LLC Capital Contribution (Grants & Private Donations) / Loan Proceeds Marine Stadium Transaction Diagram General Friends of Marine Stadium, LLC (Managing Member) Profits, Managing Losses & Member Cash Flow Federal Tax Credits Equity Investment & Lease Payments Debt Service (Lender) Federal Historic Tax Credit Investor Tax I I Tax Credits, Profits, Credit Losses & Cash Flow National Trust Community Investment Corporation Tax Credit Tax Credits, Profits, Losses & Cash Flow Marine Stadium Master Tenant, LLC (Master Tenant) 99.99% - NTCICC .01% - Managing Member, LLC Lease Payments Marine Stadium Master Sub- Tenant/Booking Agent See�mpanying summaries of signficant projection assumptions and accatfnting policies and accountants' report 0oage 2 Submitted Into the p "14 recor in connection items 1 on Priscilla A. Thompson • City Clerk March 5, 2009 Organizations Involved in Tax Credit ESTIMATES Rehab Cost For Stadium: estimated $26,000,000 Costs Eligible for Historic Tax Credit (estimated 90% of rehab): $$23,400,000 Historic Tax Credit (20%): $4,680,000 Proceeds From Sale of Historic Tax Credit (assumption is $1.05 per each $1 of credit): $4,914,000* Annual Priority Return: 2% of credit for 5 years; $98,280 per year, $491,400 total* Buyout at end of 5 years; 5% of credit: $245,700* Soft Costs: Est. legal, $100,000; accounting; $50,000; total of $150,000 0 NET AVAILABLE: $4,026,900 *Negotiable and subject to investor approval. Friends of Marine Stadium To be incorporated as a not for profit entity to manage the whole complex. Alternately, another 501 -c -3 -such as Dade Heritage Trust could be used Friends of Marine Stadium LLC A for profit entity that is 100% owned by Friends of Marine Stadium -or the other not -for profit. This is the managing member of the enterprise. Marine Stadium Lessor, LLC This is the entity through which all monies flow -proceeds from sale of the tax credit, grants, loans, all sources of funds. Money that is raised by Friends of Marine Stadium, goes to Marine Stadium LLC and then to Marine Stadium Lessor, LLC. The Marine Stadium Lessor LLC, is typically be 85% owned by Friends of Marine • Stadium (the managing member) and 15% owned by a Master Tenant in order to facilitate the transfer of tax credit equity from the Master Tenant to the Lessor • By structuring the transaction this way with a Lessor (ownership entity) and a Master Tenant, you create a variety of positive tax benefits for both the developer and investor that results in higher tax credit pricing. Federal Historic Tax Credit Investor This is the entity that puts up the money in exchange for the tax credit. Investors get the 20% tax credit, a portion of the depreciation and a priority return equal to 2% of the revenue stream for the project for five years, and a "buyout" of their interest in the project of 5%* of the initial value of the tax credit at the end of the five year period. *Negotiable The 20% tax credit is based on qualified rehab expenditures of the structure which consist of hard construction and construction related soft costs, but not including acquisition costs, site improvements and furniture, fixtures and equipment that are not part of the structure (ie. Seating that is affixed to the structure would count, extra movable furniture would not). • Even in the current difficult economic environment, there is still a market for historic tax credits -largely because the tax benefits can be taken immediately when the project is placed in service, so investors only need to understand their tax position a year out. The HTC can also be used as an offset to AMT. Current pricing of the tax credit is about $1.05 for every dollar of tax credit, but this price may go down somewhat due to the recession. National Trust Community Investment Corporation, NTCIC A subsidiary of the National Trust For Historic Preservation, NTCIC is one of the most experienced entities specializing in the HTC that bundles up tax credit investors and invests and manages tax credit funds. Marine Stadium Master Tenant, LLC The main purpose of this entity is to handle Stadium operations once it is placed in service. Any sublease to a leasing agent would be with the MT. Cash flows from the users of the Stadium to the booking agent/subtenant to the Master Tenant. Certain operating expenses are paid by the MT and the balance of the cash is paid to the Lessor through a MT lease payment. The Lessor pays the mortgage payment if there is one. . Submitted Into the public record in connection with 2 item on 101` - O y Priscilla A. Thompsc n City Cleck • The Master Tenant is the entity that would have the agreement with Master Sub - Tenant, Booking agent, the organization that might manage the Marine Stadium (ie. AEG, SMG, etc). Priority Returns IRS profit motive or "hobby loss rules" require that the Master Tenant receive real estate benefits other than the tax credits, such as a priority return for the first five years. The return is equal to 2-3% of the value of the proceeds received from sale of the tax credit. Assuming a tax credit value of approximately $4,914,000 this would translate to an annual return of $98,280. The Master Tenant also would receive a final "buyout" value at the end of five years of 5-10% of the value of the tax credit. At 5% that would be $245,700. The 2-3% priority return must be paid or they can be accrued if cash is not available. Balances must be paid at the put. Sometimes, sponsors escrow the monies from tax credit proceeds up front so to make sure that it is there. Managemen At all times, the management of the enterprise is with the Marine Stadium Lessor -and ultimately, Marine Stadium LLC. The Investor, the National Trust, etc, is have no say in the management of the entity. At the end of the five year term, the deal is "unwound" and there is no further liability. Soft Costs This includes legal and accounting costs. These costs are incurred through setting up of the required entities, but the bulk would be transaction closing costs: Not For profit organization Friends of Marine Stadium LLC Marine Stadium Lessor, LLC Marine Stadium Master Tenant, LLC A very rough estimate of these costs might be $100,000 for legal costs and $50,000 for accounting costs. • Timing of Proceeds From Sale of Tax Credit Submitted Into ft public recor in connecdw with item Z l On _LO -� 0 Priscilla A. Thorn . . Cite • The proceeds from sale of the credit are paid in on a performance based schedule, at closing, construction completion, cost certification and NPS Part 3 approval. There might be funding held back until the facility reaches an operational benchmark. A bridge loan is arranged to pay construction costs on a current basis. It is very important that all administrative work done BEFORE the building is placed in service "after the fact". • 0 (ie. Historic designation, etc) be . The tax credit cannot be issued SUBMITTED INTO THE PUBLIC RECORD FOR ITEMZL I ON 10-fr.01. 0 Friends of Marine Stadium: Brian Wishneff & Associates ;rJ W Faanklin Nmd, Suite 503 Roanole. Virginia 24011 540-982-1311 540.982.1568 Mx Washington DC Office 1 150 181h Street. NW, Suite 375 Washington, Di 20036 540.312-5923 202-386-9855 cnt wwtiro wishneff.com Thank you for updating me on the Marine Stadium project, Clearly this building will qualify as a certified historic structure on the National Register. Our firm specializes in working with a wide variety of tax-exempt entities on monetizing state and federal income tax credit programs including; Historic Tax Credits, New Market Tax Credits and Renewable Energy Tax Credits. The majority of our work is for tax-exempt entities like the City of Miami. Some of our current historic tax credit clients who are tax-exempt include the Save Ellis Island Foundation on the restoration of the remaining buildings at Ellis Island, the Verrazano Foundation project in Staten Island, the DuSable Museum of African -American History in Chicago, the City of San Dimas, California, .the Athens Theater in Deland, FL, the City of Merced CA, the Lear Theater in Reno and the State Theater in Culpeper, VA. • We provide this comprehensive service on a "Success -fee -basis". Meaning we only get paid if you get paid and that our economic interests are aligned. The federal historic tax credit is a 20% credit. If the cost of renovating the Marine Stadium were $10 million, for example, the project sponsor could net (after any fees) about 18% or approximately $1.8 million from a federal historic tax credit investor. So even though the City of Miami owns the stadium the historic tax credit program can offset 18% of the program. We have an extensive group of credit investors we work with; therefore, placing the credits for the Stadium will be easy. We also work with federal Renewable Energy credits. These credits are identical to the historic tax credit in that the amount of credit is based solely on the amount of investment that is made. Neither program has a project dollar cap so there is no limit on the size of a project - The Energy Credit is a 30% credit with 5 -year accelerated depreciation. This Marine Stadium location with its 1,300+ surface parking lot adjacent lends itself to potentially providing enough power to not only serve the stadium but under the correct set of circumstances be an on-going revenue generator for the Stadium operations. Also, most of our tax credit work has involved live performing theaters. In addition, I have consulted on a number of outdoor amphitheater projects. That gives me additional insight into the live -performance business beyond the tax credits. The size of the Marine Stadium (6,500 -seats) is in the "sweet -spot' for the current state of outdoor amphitheaters. However, your location and views at the Marine Stadium will be unparallel anywhere throughout the Country. Therefore, based on our experience with indoor and outdoor venues, you should be successful in obtaining naming -rights, VIP -seating and corporate sponsorships as well as food and beverage sales beyond the average outdoor facility. Submitted Into the public record in connection with item K,7 i on JQLq- ©� Priscilla A. Thompson City Clerk • Based on our experience, there is no doubt that the renovation of Marine Stadium for an outdoor performance venue can be very successful. Please feel free to visit our website at wishneff.com to see the depth of our tax credit experience. Brian Wishneff • SUBMITTED INTO THE � PUBLIC RECORD FOR ITEM Vz i ON;