HomeMy WebLinkAboutworksheetNOU-12--2004 10 : 55 CITY MANAGERS OFFICE
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO:
FROM'.
The Honorable and
M 44 + • s of 1ty Cbrnnlission
0
C Administrator / City Manager
RECOMMENDATION
DATE :
SUBJECT
pig:
Inter1ocal Agreement between the City of
Miami, Miami -Dade County and the Miami
Sports and Exhibition Authority re: CDT Funds
REFERENCES :
ENCLOSURES Resolution
It is respectfully recommended that the City Commission authorize the City Manager to execute an
Interlocal Agreement between the City of Miami, the Miami Sports and Exhibition Authority
("MSEA"), and Miami -Dade County relating to the use of Convention Development Tax funds
currently allocated to MSEA
BACKGROUND
On August 10t, 2004 the Miami Sports and Exhibition Authority entered into a Real Estate
Purchase and Sale Contract with Broward Yachts, Inc, for the sale of the Miami Arena. The e1osing
of the sale is subject to the execution of an agreement between MSEA, the City of Miami and
Miami -Dade County regarding the use of the Convention Development Tax ("CDT") funds
currently allocated to MSEA.
The lntcrlocal Agreement provides for the allocation of the CDT receipts after (i) the closing of the
Miami Arena and (ii) the defeasance of the bonds that financed the construction of the Miami Arena
("Bonds"). MSEA shall defease the Bonds within 90 days after closing from the closing proceeds
and all other "unallocated and uncommitted" monies in the MSEA accounts, Any residual amounts
shall be used for renovations to the Orange Bowl.
Upon defeasance of the Bonds, the County shall pay the City an amount equal to the annual amount
currently paid to MSEA which consists of the MSEA Operating Allocation, debt service on the
MSEA Bonds and the Capital Replacement Allocation (the "Current Allocation"). In the event that
de£lnitive agreements are executed between the City ofMiami, Miami -Dade County and the Florida
Marlins, the County will continue to pay the City the full amount of the current allocation until
September 30, 2020. The City, in turn, agrees to issue bonds in the amoturt of$60 million for the
ballpark project ("Ballpark Bonds") scoured by the Current Allocation and other revenues from the
City, Based on terms available in today's bond market, there would be an addidonat $15 million in
bond proceeds available for the Orange Bowl renovations.
In the event that the City, County and the Florida Marlins have not entered into definitive
agreements by September 1, 2005, the City's obligation to issue the Ballpark Bonds shall be
terminated and the County will reduce the amount paid to the City to $2 million a year until
NOV- 42-2004 10 g 55
CITY MANAGERS QFFICE 305 416 1019 P.02
September 30, 2020. This amount would generate approximately $2$ million in bond proceeds
based on bond financing tams available today that would be used for the Orange Bowl renovations.
The ids made available by this Agreement for the Orange Bowl are in addition to the General
Obligation Bond proceeds in the amount of $50 million approved by the voters on November 2,
2004.
TOTAL P.02