HomeMy WebLinkAboutExhibitCITY OF MIAMI
INTER -OFFICE MEMORANDUM
TO: Honorable Mayor and Members DATE: October 18, 2016
of the City Commission
FROM: Daniel J. Alfonso SUBJECT: Financing for Renovation and
Marra r`] // Capital Improvements of the
Miami Marine Stadium
The City Commission Meeting has discussed renovating and improving the Commodore Ralph E. Munroe
Marine Stadium (the "Miami Marine Stadium") for several months. As such, City staff has prepared a
preliminary scope of work and cost estimate including, but is not limited to: renovating the form,
materials, features and character of the stadium as it appeared in its original likeness during the 1960s,
potential removal of inconsistent and/or unsafe structural features, structural repairs or replacement of
the upper -structure and substructure, incorporation of new systems (electrical, mechanical, lighting, sound,
and plumbing), Americans with Disabilities Act accessibility, restoration or replacement of the stadium
seating, removal of asbestos material as necessary, construction of a new Welcome Center and Museum.
We are requesting approval to begin the process of issuing a Non -Ad Valorem Special Obligation Bond (or
similar financing mechanism) including both taxable and tax exempt financing as appropriate, in the
amount not to exceed $45 million. Staff would expect the bond to have a repayment schedule of 15 to 20
years and pledge funds from any available Non -Ad Valorem sources (such as the Local Government Half -
cent Sales Tax Program) with a covenant to budget and appropriate to repay the debt service from the
General Fund (in accordance with Florida Statute Section 218.64(4)) and other State Statutes.
Staff is currently working on an analysis of all revenues and expenses on Virginia Key that will be presented
along with the Declaration of Intent to finance and reimburse on the November 17, 2016 agenda.
Should you have any questions, please contact Christopher Rose, Budget Director, at 305-416-1500.
OMB-17001
CITY OFMUAM|
INTER -OFFICE MEMORANDUM
TO: Honorable Mayor and Members
of the City Commission
FROM: Daniel 1Alfonso
City Manag
DATE' October28,2016
SUBJECT: Analysis of4J|City-Collected
Revenues and Expenses on
Virginia Key
As discussed at the October ZT 2016 City Commission Meeting, please find attached an analysis of all
City -Collected revenues and expenses on Virginia Key in association with financing the renovation of the
Commodore Ralph E. Munroe Marine Stadium (the ^K4ianni Marine Stadiwm^) and a calculation of debt
service costs.
As you can see, there are revenues and expenses in both the Parks Department and the Real Estate and
Asset Management Department as well as debt service expenses for the $16 million already approved for
financing at the Flex Park at the Marine Stadium. Prior to the implementation of the Flex Park, overall
revenues collected bythe City on Virginia Key were just over $4.3 million and expenditures by the City were
$2.264 million. The flex park added revenues of$1.Q3 million and expenses of$1.487 million, m/Nch
includes conservative annual debt service payment of$1.8GS million (4 percent level debt for 25years,
with Zpercent issuance cost).
In addition, the expected financing of$4B million at percent level debt for 25 years, with 2 percent
issuance most would cause a conservative annual debt service payment nf5l996 million to be paid by non -
ad valorem revenuesinthe general fund.
Should you have any questions, please contact Christopher Rose, Budget Director, at 305-416-1500.
Virginia Key Revenue and Expense Analysis
Before Flex Park
Added
Current Situation
Parks
Revenue
$394,000
$0
$394,000
Expense
$1,438,000
$341,000
$,779,000
Difference
-$1,044,000
-$341,000
-$1,385,000
Real. Estate and Asset Management
Revenue
$3,946,000
$1,030,000
$4,976,000
Expense
$826,000
$81,000
$907,000
Difference
$9,120,000
$949,000
$4,069,000
Debt Service
Revenue
$0
$0
$0
Expense (Estimated)
$0
$1,065,000
$1,065,000
Difference
$0
-$1,065,000
-$1,065,000
Overall
Revenue
$4,340,000
$1,030,000
$5,370,000
Expense
$2,264,000
$1,487,000
$3,751,000
Difference
$2,076,000
-$457,000
$1,619,000
*Estimated Cost of Debt Service for the Marine Stadium
$45 million at 4% level debt for 25 years, with 2% issuance cost would be
an annual debt service payment of $2.996 million.
Amount
16,000,000
No. of Years
25
Rate
4.0%
Each Payment
$1 065,000
Total Payments
26,625,000
Interest Paid
10,625,000
1 2006
2 2007
3 2008
4 2009
5 2010
6 2011
7 2012
8 2013
9 2014
10 2015
11 2016
12 2017
13 2018
14 2019
15 2020
16 2021
17 2022
18 2023
19 2024
20 2025
21 2026
22 2027
23 2028
24 2029
25 2030
Amount
45,000,000 ,
No. of Years
25
Rate
4.0%
Each Payment
$2,996,000
Total Payments
74,900,000
Interest Paid
29„900,000
1,065,000 1 2006
1,065,000 2 2007
1,065,000 3 2008
1,065,000 4 2009
1,065,000 5 2010
1,065,000 6 2011
1,065,000 7 2012
1,065,000 8 2013
1,065,000 9 2014
1,065,000 10 2015
1,065,000 11 2016
1,065,000 12 2017
1,065,000 13 2018
1,065,000 14 2019
1,065,000 15 2020
1,065,000 16 2:021
1,065,000 17 2022
1,065,000 18 2023
1,065,000 19 2024
1,065,000 20 2025
1,065,000 21 2026
1,065,000 22 2027
1,065,000 23 2028
1,065,000 24 2029
1,065,000 25 2030
26 625,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
74,900,000