HomeMy WebLinkAboutjoint memoMEMORANDUM
TO: Honorable Alex Penelas
Mayor, Miami -Dade County
Hon. Chairperson Barbara Carey-Shuler, Ed,d
and Members
Board of County 4mrnisslioners,
Miami -Dade
FROM: George M. B
County Mal
G
Subject: Marlins Ballpark
Date:
Honorable Manuel A. Diaz
Mayor, City of Miami
Hon. Chairperson Arthur E Teele, Jr.
and Members
Bo rd of City Commissy'G ers,
Ci of MI
I1
Arriola
,City Manager, City of Miami
April 29, 2004
As Managers working tovvards the same goal and following the directives of
our respective Mayors and Board Members, we are pleased to submit this
preliminary term sheet and proposed financing plan for the construction and
development of a new ballpark for the Florida Marlins. We recommend
proceeding towards the development of a ballpark provided the preliminary
term sheet conditions are addressed and ultimately accepted by the County,
City and the Marlins. We recognize a joint memo such as this is not the
typical manner informatihn is provided to our governing bodies, however, for
a project of this nature to be successful It is critical the County and City work
hand -in -hand in public partnership throughout the course of this project.
In response to the Marlins' extended deadline of May 1, 2004 to have a
financing plan in place, this preliminary term sheet is intended to outline a
proposal we believe is the most responsible and viable opportunity to build a
ballpark. While further discussion regarding the details will be forthcoming,
including your review and subsequent feedback, at this point we felt it best
to provide our governing bodies, as well as the State, with a preliminary
document that lays out the ingredients for a sound proposal for a new
ballpark.
The site recommended for the proposed ballpark is the Orange Bowl. This
site is by far the best and most sensible site, which has several advantages.
To name a few:
• Location - centrally positioned and only two miles from the
downtown core, dlose to Airport and Civic Center
• City owned land for vast majority of the site
• Most cost effective and developable site
• Right next to historic Orange Bowl already a major center for sports
events; further compliments Orange Bowl renovation plans
• Will reinforce existing and new development In this dynamic area;
including the revitalization of the Miami River corridor
• Provides enough land for new structured parking as well as surface
parking
• Enhanced opportunities for development of year-round attractions
and other busineks developments
This site proposal differa from the City's original Orange Bowl proposal in
that the ballpark will riot be directly Integrated into the Orange Bowl
Stadium. The Marlins have reviewed the site positioning and have Indicated
the site meets the basic requirements of their program. The Marlins have
expressed their enthusiasm about this site opportunity and the general
terms and funding ideas we discussed with them. Please be advised, we
have fully communicated to the Marlins that all components of this
preliminary term sheet and financing plan will require final approval by both
governing bodies.
As you will see, all parties are being asked to step up and increase their
respective commitments and contributions to the project. We have made
every effort to find a funding balance that protects the public interest and
also enables the Marlins to stay competitive. The financing plan reflects an
allocation among the Marlins, County and City of the estimated construction
cost of the ballpark and associated Infrastructure costs, and the Marlins
remain responsible for any and all cost overruns. A portion of the Increased
Convention Development Tax contribution is contingent upon the sale of the
Miami Arena. The City vviil contribute to the cost of the ballpark through a
Tourist Development Tay: financing and by financing a 2,500 space parking
garage at the Orange B+awl site that the Marlins will develop and operate.
The City is also responsible for land acquisition and site -related
infrastructure costs. As previously stated, it is clearly understood final
approvals by both Boards are required to proceed with any respective
increased contribution. We anticipate City Commission consideration on May
6 and County Commissloh consideration as early as May 11.
The Marlins will also be required to increase their contribution by way of an
upfront equity payment bnd a rent payment tied to a long-term lease. The
County is evaluating its Ability to finance the rent payments on behalf of the
team In order to maximi2e the present value of the team rent. This strategy
would allow the County; to leverage far more financing capacity than the
Marlins could, even at a taxable rate. For this to occur, the Marlins would be
required to provide substantial credit support in addition to contractually
obligating team revenues as a guarantee rent payments will be made.
Recognizing visitors and residents throughout the State enjoy the Florida
Marlins, and that a new ballpark will be a costly undertaking, State
participation is important. While State funding may not be approved during
this legislative session, assuming State funding will never be available for
this project is not realistic either. For this reason, State funding is included
as the last component of the financing plan. Without State participation
financing the additional amount would be unreasonable for the local
participants. If this occurs, the Marlins will have to decide how and if they
can proceed.
It is our expectation, fallowing final determination of the ability to secure
State funding, this preliminary term sheet will be presented to the
appropriate committees .and both Boards for approval. Once both Boards
have approved the preiirfuinary term sheet, the County and City will begin to
negotiate several other required documents and agreements with the
Marlins, such as a development and operating agreements, non -relocation
agreement, and lease agreement among others.
We recognize the local, regional and statewide importance of this project
and feel a successful public -private partnership can be fostered on the basis
of this proposed preliminary term sheet. We believe the Orange Bowl is the
best site available for this project and one that will reinforce and promote
development opportunities In the area. We hope the preliminary term sheet
and funding plan provIds you with useful information on the status of this
project and look forward to further discussing the details of this project with
you.
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