HomeMy WebLinkAboutexhibit 1 - term sheetFLORIDA MARLINS BALLPARK
MIAMI-DADE COUNTY,
CITY OF MIAMI,
AND FLORIDA MARLINS, L.F.
PRELIMINARY TERM SHEET
Miami -Dade County (the "Cosinty"), the City of Miami (the "City") and the Florida Marlins,
L.P. (the "Marlins"), subject to final approval of the Board of County Commissioners and the
City of Miami Commission, agree to the following Preliminary Term Sheet regarding the
development and construction of a retractable roof baseball stadium (the "Ballpark") that will
include a 2,500-car structured parking garage ("Ballpark Garage"):
PROJECT: The Ballpark and Ballpark Garage.
PROJECT DESCRIPTION: The Ballpark and Ballpark Garage will be located at the
Orange Bowl site in the City of Miami. The site is
generally bounded by SW 17th Avenue (west), NW 3`d
Street (south), NW 7th Street (north), and the Orange Bowl
(east).
BALLPARK: The Ballpark will include a retractable roof, approximately
38,000 seats of which 3,000 are premium seats, and 62
luxury suites. It will also include an aquarium, a
community center and other ballpark attractions.
LESSOR: The City or County will own the land (depending on legal
and financial requirements) and the County will own the
Ballpark. In addition, the City will own the Ballpark
Garage.
LESSEE: The Marlins will enter into a lease for the Ballpark and a
use agreement for the Ballpark Garage.
PROJECT COSTS: The estimated total project cost for the Ballpark and
Ballpark Garage is approximately $367 million.
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MARLINS CONTRIBUTION: The Marlins shall contribute an amount equal to $20
Million. Prior to commencement of construction, the
Marlins will provide evidence in a form acceptable to the
County and the City, of the Marlins ability to fund the $20
Million.
BALLPARK LEASE:
TICKET SURCHARGE:
The initial lease term will be thirty-two (32) years. The
annual base rent payment will be in an amount necessary to
secure $127 Million Dollars in 2004 net present value over
the term of the lease,
The County will consider financing the rent payments over
the term of the lease provided the Marlins lockbox
contractually obligated ballpark revenues to securitize the
rent payments.
A subsequent lease term will be required until such time
that all public debt issued for the construction and
development of the Ballpark is retired.
In an effort to have the ballpark users participate in the
funding of the new ballpark, the Marlins will commit to
collect and remit to the County a ticket surcharge on tickets
for all events in the ballpark. The surcharge is estimated to
generate $10 million towards the financing of the Ballpark
and amounts to approximately .70 cents per ticket.
CITY CONTRIBUTION: The City will contribute $28 million in Tourist
Development Tax funds as outlined in Appendix A. This
contribution will be used to acquire land, infrastructure
costs and to contribute towards the Ballpark financing,
COUNTY CONTRIBUTION: The Board of County Commissioners approved, by
Resolution 1182-03 on November 4, 2003, a pledge of: (i)
Convention Development Taxes in the amount of $35
million and; (ii) Professional Sports Franchise Facilities
Tax in the amount of $38 million. In addition, the County
recommends increasing the CDT contribution by $47
million, as outlined in Appendix A, a portion of this
increase is contingent upon the sale of the Miami Arena.
BALLPARK GARAGE:
The project includes a 2,500-car parking garage (estimated
cost to be $32 million). The City and Marlins shall
negotiate necessary agreements to finance and operate the
garage. The City will finance the garage for the Marlins
who will in turn lockbox contractually obligated ballpark
revenues to securitize garage debt payments to the City.
The Marlins will develop and operate the parking garage
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STATE CONTRIBUTION:
BALLPARK OPERATIONS::
COST OVERRUNS:
OTHER TERMS:
and retain all parking garage and surface parking revenues
an baseball game -days. The Marlins and City will also
share parking revenues for non -baseball game day events at
the Orange Bowl and Ballpark.
The Marlins, City and County are seeking State
participation in the amount of $30 million (2004 net present
value) to complete the Ballpark financing plan.
The Marlins will be responsible for the management,
operation, marketing and maintenance of the Ballpark and
all expenses associated with the Ballpark.
The Marlins shall be the sole party responsible to cover any
and all costs of the Ballpark in excess of the Marlin's stated
Ballpark design and construction estimate of $325 Million.
The Marlins will not enter into or continue any negotiations
with any parties other than the County and the City
regarding the location/relocation of the Marlins.
Upon the sale or transfer of controlling interest in the
Marlins, the Marlins will share with the County and City in
the enhanced value of the franchise (based upon a to -be -
determined formula).
The following must be satisfied after this Preliminary Term
Sheet is accepted:
• Approval for all public -sector (County, City, State)
funding as set forth in Appendix A;
• Assemble the site for the Ballpark and Ballpark
Garage.
• Execution by the County, the City and the Marlins
of all agreements required to construct, develop,
and operate the Ballpark and Ballpark Garage
which include, but may not be limited to:
o Development Agreement
o Operating Agreement
o Parking Use Agreement
o Non -relocation Agreement
o Non -cancelable Lease Agreement
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