HomeMy WebLinkAboutEmail - Melrose Area AnnexationGallastegui, Elvi
From: Castaneda, Frank
Sent: Thursday, April 28, 2011 4:37 PM
To: Regalado, Tomas (Mayor); Crapp Jr., Tony
Cc: Gallastegui, Elvi; Garcia, Francisco; Gort, Wifredo (Commissioner)
Subject: Melrose Area anexation District #1 Commission Item May 12, 2011
It is recommended that the administration review the possibility of annexing the Melrose area. This area being defined
in the north by 112 expressway, 42nd Avenue on the west and the City boundaries on the east and south. This
annexation has been studied in the past since there is an arm of the City that goes on NW 36th street all the way and
inclusive of Jai Alai. The annexation of this area would simplify police enforcement and the development of the area
since all properties on 36th street are only in the City the first 100 feet, and even though Jai Alai is in the City the
surrounding properties are not. Jai Alai is presently getting ready to be redeveloped and this annexation would assist in
the further development of the area.
Zheiftiamilleralti
Posted on Thu, Apr. 28, 2011
Miami Jai -Alai gets $87M loan for casino
By Michael Vasquez
mrvasquez@MiamiHerald.com
NAOMI HARRIS / Herald File
Miami Jai -Alai
For 85 years, Miami Jai -Alai has been a South Florida fixture.
The parimutuel facility, only a few miles from Miami International Airport, hosted well-heeled
crowds and big -name concerts during the Jai-Alai's glory days. But that golden age was decades
ago, and recent years have brought only sparse crowds to the facility.
Miami Jai-Alai's parent company, Florida Gaming Corp., posted a nearly $5 million Toss in 2010,
and has had trouble keeping up payments on its debts. Florida Gaming's last annual report
warned that there was "substantial doubt about the company's ability to continue as a going
concern."
Could the addition of slot machines change everything?
1
Florida Gaming is betting the answer is yes.
As one of the South Florida parimutuels included in a 2004 statewide referendum that allowed
horse tracks, dog tracks, and jai -alai frontons to add slots, Miami Jai -Alai for years has had the
legal right to add a casino.
What was missing was the financial backing — until now. Florida Gaming on Wednesday
announced it has secured an $87 million loan from a group of unidentified investors, a massive
infusion of capital that should enable Miami Jai -Alai to pay off old debts and also open up its own
1,000-slot casino.
Other planned upgrades include improved dining and entertainment amenities; a renovated Jai -
Alai venue; approximately 1,500 parking spaces; and the return of concerts.
"There's a tremendous amount of very positive history behind this facility," said Rene Guim, an
equity partner in Miami Casino Management, a company under contract to develop and manage
the new casino. "The memories and the nostalgia and the pent-up demand for returning to Miami
Jai -Alai is there."
The existing Jai -Alai building will not be torn, but instead extensively overhauled — work that is
expected to be finished by the end of this year. Guim said adding the slots parlor and other bells
and whistles will create 600 to 800 new jobs, about half of which will be permanent.
The construction project is completely debt -financed though a five-year loan at between 15
percent and 16 percent interest.
Matt Sodl, managing director of California -based Innovation Capital, which assembled the
financing, acknowledged that the interest rate was "high," but said the high rate was due to the
lack of any cash being invested by Florida Gaming up front. As part of the loan deal, Florida
Gaming offered its lenders the future option of assuming a 35 percent ownership stake, at minimal
cost, of the wholly -owned subsidiary that is building the new casino property.
"The collateral for the loan is really the assets of the company and the stock of the company," Sodl
said.
The loan and casino plans, if ultimately successful, would amount to a remarkable turnaround for
Florida Gaming, given the company's recent troubles. One key factor in its favor: Gambling
experts are still largely bullish on the South Florida casino market. Although Miami -Dade and
Broward counties have added several slots casinos since the 2004 voter referendum, industry
analysts still see room for growth.
Las Vegas billionaire casino magnate Steve Wynn, among others, has expressed interest in
building new "destination" casino resorts. The Legislature, which would have to OK the idea, so far
hasn't bit.
Miami Jai -Alai, even after its planned facelift, will likely draw more local gamblers than tourists. But
Sodl said the dense South Florida population provides plenty of potential customers.
"The Miami market is a very fertile market for gaming," Sodl said.
2
Read more: http://www.miamiherald.com/2011/04/28/v-print/2188812/miami-tai-alai-gets-85-
infusion.html#ixzzl KgpUiENG