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1
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MINUTES PREPARED BY:
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REPORT:
Jill Thornton, Commission Reporter, (305) 375-2505
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1A
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INVOCATION AS PROVIDED IN RULE 5.05(G)
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REPORT:
The invocation was presented by Michael Roan, Sergeant of Arms, followed by a roll call and the Pledge of Allegiance.
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1B
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ROLL CALL
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REPORT:
The following staff members were present: Deputy Mayor Ed Marquez, County Attorney Robert Cuevas, First Assistant County Attorney Abigail Price-Williams; Assistant County Attorney Oren Rosenthal; and Deputy Clerks Christopher Agrippa and Jill Thornton.
Mayor Carlos Gimenez was also present.
Chairwoman Sosa welcomed everyone present at today�s (04/10) special meeting, and commended the Mayor and all parties involved for their efforts and long hours worked in this process. She asked if it was necessary for the Board to set the agenda.
County Attorney Robert Cuevas noted preliminary matters needed to be addressed regarding some amendments and an announcement.
Chairwoman Sosa noted today�s hearing could possibly conflict with the Transportation and Aviation Committee (TAC) meeting set today at 2:00 p.m. and suggested the TAC Chair consider rescheduling or cancelling it.
Commissioner Moss, Chair of the TAC, recommended the TAC meeting be canceled to accommodate this hearing, and said he would follow up with the necessary process for waiving agenda items from committee review to the Board of County Commissioners (BCC) meeting, if needed.
Chairwoman Sosa said she would accommodate any request of Commissioner Moss to waive TAC agenda items from committee review to a BCC meeting that he felt were necessary.
Chairwoman Sosa provided procedural guidelines for today�s meeting and the subsequent process, as follows:
� Special Items No 1 and 2 were before the BCC today for consideration and approval, and Special No Item 2 would be considered first;
� If approved today, these items would be scheduled as Ordinance(s) for first reading on May 7, 2013, before the BCC;
� If adopted on first reading, the ordinances would be set for a second reading and a public hearing seven days thereafter;
� In today�s meeting, the Mayor would make his presentation first, followed by a presentation from representatives of Miami Dolphins, Ltd (Dolphins or team) and South Florida Stadium, LLC (Stadium);
� Amendments proffered by the Sponsor of the items would be read at the setting of the agenda; and
� Amendments offered by other commissioners and/or parties would be entertained during the course of the discussion, after the presentations were made and when the items were considered.
Chairwoman Sosa stressed the importance of educating the public on the terms of this agreement and providing an opportunity for public input. She also noted it was important for the Administration to ensure that any upcoming hearings pertaining to this matter be properly noticed. She said she believed today�s (4/10) discussion should focus primarily on whether the decision to approve or disapprove the proposed stadium renovations should be made by the BCC or the public in a referendum vote.
For the record, County Attorney Robert Cuevas noted today�s (4/10) special meeting was called by the Board of County Commissioners for the purpose of calling a countywide referendum election, to be held on May 14, 2013, for the electors to vote on the use of revenues from a potential levy of one percent (1%) additional Tourist Development Bed Taxes for renovations of the Dolphin�s Sun Life Stadium, under certain conditions; and to conditionally approve an agreement for the terms and conditions of which the revenues received from such levy would be used for the stadium renovations. He noted, at this meeting, the Board may take action on such matters, including but not limited to the approval of motions, resolutions and other documents related to such matters.
County Attorney Cuevas noted two resolutions were before the Board today (4/10) for consideration, which were Special Item No 1, approval of the call of a countywide special election, and Special Item No 2, approval of the Modernization Agreement for renovations of the Sun Life Stadium. He recommended the Board consider Special Item No 2 first since it pertained to the modernization agreement, and if approved, would assist in the framing of a potential ballot question.
County Attorney Cuevas noted, as to Special Item No 1, the sponsor offered an amendment to replace the word �twenty-one� with the word �twenty,� in the second line of Section 5, on handwritten page 4, which would effectively reduce the number of voting sites. With regard to Special Item No. 2, Mr. Cuevas noted the attorneys for the County and the respective parties agreed to several technical amendments to correct errors in the Modernization Agreement, which were listed in a sheet and distributed to members of the Commission for approval (See Exhibit No. 4 in the Exhibits list). He also noted the Dolphins� representatives needed to confirm that these amendments were acceptable.
Commissioner Heyman inquired of the amendment she had offered to change the language in Special Item No 1 pertaining to the award of a Super Bowl, which was not mentioned by the County Attorney.
County Attorney Cuevas responded that the Chair�s instructions, as he understood it, were to read the initial amendments offered by the sponsor when the agenda was set, and all other amendments would be addressed during the course of the discussion when the substantive items were considered.
Chairwoman Sosa clarified that she would recognize members of the Commission to offer any amendments when considering the items.
The Board, by motion duly made, seconded and carried, approved today�s meeting agenda.
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1C
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PLEDGE OF ALLEGIANCE
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2
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SPECIAL ITEMS
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Special Item No. 1
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130682
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Resolution
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Barbara J. Jordan
Bruno A. Barreiro
Jose "Pepe" Diaz
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RESOLUTION CALLING A COUNTYWIDE SPECIAL ELECTION IN MIAMI-DADE COUNTY, FLORIDA, HELD ON TUESDAY, MAY 14, 2013, FOR THE PURPOSE OF SUBMITTING TO THE ELECTORS OF MIAMI-DADE COUNTY THE QUESTION OF WHETHER TO APPROVE THE PROPOSED USE OF ADDITIONAL TOURIST ROOM TAXES FOR MODERNIZATION OF SUN LIFE STADIUM
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Amended
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REPORT:
(See Special Item No. 1 Amended, Legislative File No. 130695 for the amended version.)
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Special Item No. 1 Amended
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130695
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Resolution
 Clerk's Official Copy
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Barbara J. Jordan
Bruno A. Barreiro
Jose "Pepe" Diaz
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RESOLUTION CALLING A COUNTYWIDE SPECIAL ELECTION IN MIAMI-DADE COUNTY, FLORIDA, TO BE HELD ON TUESDAY, MAY 14, 2013, FOR THE PURPOSE OF SUBMITTING TO THE ELECTORS OF MIAMI-DADE COUNTY THE QUESTION OF WHETHER TO APPROVE THE PROPOSED USE OF ADDITIONAL TOURIST ROOM TAXES FOR MODERNIZATION OF SUN LIFE STADIUM
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Adopted as amended
Resolution R-278-13
Mover: Barbara J. Jordan
Seconder: Sally A. Heyman
Vote: 9 - 2
No: Suarez , Bovo, Jr.
Absent: Edmonson , Bell
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REPORT:
The Board adopted the foregoing proposed resolution as amended to reduce the voting sites from 21 to 20; and to replace the language �Award of Super Bowl 50 or 51� with the language �Award in May 2013 of Super Bowl� in the last bullet point of the ballot question, on handwritten page 4.
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Special Item No. 2
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130686
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Resolution
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Barbara J. Jordan
Bruno A. Barreiro
Jose "Pepe" Diaz
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RESOLUTION APPROVING MODERNIZATION AGREEMENT FOR RENOVATION OF SUN LIFE STADIUM, PERSONAL GUARANTY FOR CERTAIN PAYMENT OBLIGATIONS, AND NON-RELOCATION AGREEMENT REGARDING DOLPHINS FRANCHISE; DELEGATING TO COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE AUTHORITY TO PERFORM CERTAIN ACTS AND EXERCISE CERTAIN CANCELLATION AND TERMINATION PROVISIONS, SUBJECT TO THE PARAMETERS SET FORTH IN THIS RESOLUTION AND STADIUM AGREEMENTS; DELEGATING TO COUNTY MAYOR OR MAYOR�S DESIGNEE AUTHORITY TO DETERMINE THE VALUE OF ALTERNATIVE FORM OF SECURITY IN LIEU OF PAYMENT AND PERFORMANCE BOND TO BE PROVIDED TO THE COUNTY BY STADIUM LLC SUBJECT TO CERTAIN PARAMETERS SET FORTH IN THIS RESOLUTION; AND AUTHORIZING COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE TO EXECUTE ALL SUCH AGREEMENTS UPON FULFILLMENT OF CERTAIN CONDITIONS
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Amended
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REPORT:
(See Special Item No. 2 Amended, Legislative File No. 130701 for the amended version.)
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Special Item No. 2 Amended
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130701
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Resolution
Clerk's Official Copy
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Barbara J. Jordan
Bruno A. Barreiro
Jose "Pepe" Diaz
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RESOLUTION APPROVING MODERNIZATION AGREEMENT FOR RENOVATION OF SUN LIFE STADIUM, PERSONAL GUARANTY FOR CERTAIN PAYMENT OBLIGATIONS, AND NON-RELOCATION AGREEMENT REGARDING DOLPHINS FRANCHISE; DELEGATING TO COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE AUTHORITY TO PERFORM CERTAIN ACTS AND EXERCISE CERTAIN CANCELLATION AND TERMINATION PROVISIONS, SUBJECT TO THE PARAMETERS SET FORTH IN THIS RESOLUTION AND STADIUM AGREEMENTS; DELEGATING TO COUNTY MAYOR OR MAYOR�S DESIGNEE AUTHORITY TO DETERMINE THE VALUE OF ALTERNATIVE FORM OF SECURITY IN LIEU OF PAYMENT AND PERFORMANCE BOND TO BE PROVIDED TO THE COUNTY BY STADIUM LLC SUBJECT TO CERTAIN PARAMETERS SET FORTH IN THIS RESOLUTION; AND AUTHORIZING COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE TO EXECUTE ALL SUCH AGREEMENTS UPON FULFILLMENT OF CERTAIN CONDITIONS (SEE ORIGINAL ITEM UNDER FILE NO. 130686)
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Adopted as amended
Resolution R-279-13
Mover: Barbara J. Jordan
Seconder: Jose "Pepe" Diaz
Vote: 8 - 3
No: Suarez , Zapata , Bovo, Jr.
Absent: Edmonson , Bell
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REPORT:
The Board adopt the foregoing proposed resolution as amended to provide for:
1) Technical corrections as follows:
� On handwritten page 7, the last line of the Introduction: the reference to �Primary Owner Obligations� should be referenced to �Primary Owner Provisions�;
� On handwritten page 8, Section 2.1: In line 19, after the words �multiplied by the� add the words �quotient of the�. And in line 20, replace the words �final Construction Costs� with the amount �350,000,000�;
� On handwritten page 9, Section 2.2: Add the following sentence at the end of the section: �Notwithstanding the foregoing, in the event the Non-Relocation is terminated due to a Contraction (as defined in such Non-Relocation Agreement), the Owner Public Contribution shall become due and shall be paid to the County within thirty (30) days of the finalization of such Contraction�;
� On handwritten page 16, Section 6.1.1: In second line, delete the words �an additional one cent tourist development tax� and replace with �the additional tourist development tax�;
� On handwritten page 17, Section 6.1.3 shall read: �The Board shall have approved an ordinance implementing the TDT Tax and adopted a resolution confirming public purpose as required by the Proposed Legislation�;
� On handwritten pages 18 and 19, in Sections 7.1.2, 7.1.3 and 7.1.4: In the second line of each, replace the words �Effective Date� with the words �April 10, 2013�;
� On handwritten page 20 Section 8.1: In line 13, after the words �payable by� add the words �Stadium LLC under�;
� On handwritten page 21, Section 8.4: In line 4, after the words �performed or observed� add the words �by the Primary Owner� ; and in line 11 after the word �Guaranty� add the word �and�;
� On handwritten page 21, Section 8.5: the heading should read �remedies following County Default�;
� On Handwritten page 29, Section 11.1.2: At the end of the section, add the following sentence: �Stadium LLC agrees to affirm the attestation set forth in this section and to provide an appropriate bring down of the attestation as of the Effective Date�;
� On handwritten page 35, Exhibit A, definition of �Excess TDT Collections� shall be amended and restated to state: �Excess TDT Collections� shall have the meaning given to it in Appendix 1�;
� On handwritten page 38, Exhibit A, definition of TDT Funding Payment: In the second line after the word �Collections� add the words �received in the preceding�;
� On handwritten page 45, Exhibit C, in the Non-Relocation Agreement, Section 4.2.1: At the end of the section, add the following: �This Non-Relocation Agreement and all obligations of the Parties under the Non-Relocation Agreement shall terminate without further action by either Party in the event of Contraction of MDL�s franchise�;
� On handwritten page 66, Schedule 2.1.5: Section 3: In the first line after the words �given the opportunity to� add the words �inspect the Stadium renovations in connection with the Modernization Project�;
� On handwritten page 87, Appendix 1: Delete the First Paragraph;
2) Substitute the language �Super Bowl 50 and/or 51� with the language �a Super Bowl�;
3) In increase the hiring goals to 70% of the residents of Miami-Dade County, of which 10% would reside within the limits of the City of Miami Gardens and 20% from CDBG eligible areas; and to provide a quarterly report on the diversity hiring, and contracting and purchasing, as it relates to race and gender;
4) Addition of Section 2.1.6 Public Safety Personnel that reads:
The parties agree to the following terms which are hereby incorporated into this agreement.
(a) Police Staffing. To the extent off-duty police staffing is available, the Miami-Dade County Police Department will provide off-duty police staffing at the stadium for all NFL home games and all other stadium events, all as between the parties at Stadium LLC�s sole expense. The County will also provide off-duty police staffing to provide police presence in the surrounding jurisdictional neighborhoods, streets, etc., due to increased activity expected due to NFL home games and other stadium events, as between the parties Stadium LLC�s sole expense. In the event, the County police department does not have sufficient off-duty police personnel to staff an event as described above, then the County shall have the right to staff the event by using third-party agencies with the majority to be located in Miami-Dade County. In the event there are no police off-duty personnel available to staff an event, the Stadium LLC shall be responsible for providing security for the event. When off-duty police officers are used in the staffing of an event, the Stadium LLC shall pay the then current county hourly rate payable to such police officers.
(b) Fire Rescue Off-Duty Staffing. The County will provide at Stadium LLC�s sole expense, Fire Rescue off-duty staffing at the stadium. The County Fire Rescue personnel will be paid at the then current hourly rates for off-duty work payable by the County.
(c) Police and Fire Rescue staffing levels, hours, and locations shall be determined by the County�s Police and Fire Departments in accordance with the applicable laws, after consultation with Stadium LLC.
Notwithstanding the foregoing, and to the extent permissible under then existing County contracts for Jazz in the Gardens, Carnival and the Family Fall Festival, the City of Miami Gardens shall provide off-duty services using their own forces; and in the event the County staffed events using outside agencies, the County would give first preference to the City of Miami Gardens, second preference to other municipalities in Miami-Dade County and then to State agencies.
(Note: See the report under "Report for Special Item No. 2; Legislative File Nos. 131413 & 131414)
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Special Item No. 2 Supplement
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130685
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Supplement
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SUPPLEMENTAL REPORT ON STADIUM MODIFICATION AGREEMENT WITH SOUTH FLORIDA STADIUM LLC AND STEPHEN M. ROSS; AND NON-RELOCATION AGREEMENT WITH MIAMI DOLPHINS, LTD.
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Presented
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131413
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Report
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REPORT FOR SPECIAL ITEM NO. 2 (PART I OF II)
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REPORT:
Mayor Carlos Gimenez presented the major terms in the proposed agreement for the modernization and renovation of the Dolphins� Sun Life Stadium, the referendum terms, and the implementation requirements. (See Exhibit No. 6 in the Exhibits list)
Mr. Carl Hirsh, Managing Partner with Stafford Sports, LLC, Medford, NJ, appeared and noted pursuant to the Mayor�s request, his firm conducted a detailed review of the Dolphins and Stadium�s operating statements, financial positions, ownership structure and how the two intertwined to determine whether the Dolphins could pay for the stadium renovations without outside assistance. Mr. Hirsh opined that the Dolphins could not pay for the improvements without outside funding.
Mr. Hirsh commented on the unique terms set forth in this agreement, such as stiff penalties for non-performance, required Return on Investment (ROI) and payback guarantees upon completion of the 30-year term, some which had never been used before in any sports team deal he had been involved in. Mr. Hirsh commented on the National Football League�s (NFL) G4 financing program, noting it was a loan, and similar to borrowing from a bank. He said the Dolphins plan to borrow from the NFL program to pay for part of their share in renovation costs, and it should be considered private financing. He also noted this program was not unique to the NFL, but available to all the teams to borrow from at a cost and it included significant ownership guarantee requirements.
Mr. Hirsh also commented on the economic impact of the 2012 Super Bowl held in Indianapolis, which was determined in a study to be approximately $340 million for that City. Using that data and making necessary time adjustments, Mr. Hirsh opined that the foregoing deal with the Dolphins would provide ample ROI for the County.
In response to Chairwoman Sosa�s question regarding whether Stafford Sports, LLC was the company hired by the County to review the Team�s and Stadium�s finances and opened books, Mr. Hirsh said that was correct.
Mr. David Moore, Managing Director, Public Financial Management (PFM) Inc, 300 S. Orange Avenue, Orlando, Fla, appeared before the Board and noted PFM, which served as the County�s financial advisor, met with the team and reviewed the finances of the two corporate entities� (team and Stadium) to ensure the general information provided to the County was consistent with their audited financial statements. He indicated that his firm did not review the owners� finances. Mr. Moore further noted that PFM reviewed the detailed notes in the financial statements to ensure consistency in the payments made between the two entities as it related to capital structure. He said he found no disclosures of third-party payments, and the financial statements, cash flow and rents between the team and the Stadium matched precisely with what was represented publicly.
Mr. William Talbert, Chief Executive Officer (CEO), Greater Miami Convention and Visitors Bureau (GMCVB or Bureau), appeared and acknowledged the hoteliers, owners of local restaurants and other Bureau partners present in the audience today (4/10). Mr. Talbert validated that Super Bowls were big, important events which provided the hosting community an enormous amount of media coverage. He said that according to the Sports Management Research Institute in its most recent study on the economic impact of Super Bowls, the impact of 2010 Super Bowl, in terms of media coverage through print, internet and network broadcasting, was over $82 million. He noted it would take the County thirty-three years to pay for that kind of coverage, using the percentage of Tourist Development Bed Taxes (TDT) available for tourism promotions. Mr. Talbert also noted the same study revealed the economic impact of the 2010 Super Bowl and Pro Bowl combined �to be approximately $334 million. Mr. Talbert pointed out that aside from Super Bowls generating a positive economic impact for the community, the ROI, in terms of media coverage, was Priceless. He noted South Florida has hosted ten (10) NFL Super Bowls because of its warm weather destination.
Mr. Talbert indicated that the Revenue per Available Room (RevPAR), a calculation of a hotel�s average daily room rate and its occupancy rates, and the tourist-related taxes collected by the County, increased as a result of Super Bowls. He noted RevPAR increased by 35 percent in 2007, compared to 2006, and increased by 56 percent in 2010, compared to 2009. He said the single highest recorded RevPAR from any event in Miami-Dade County (MDC) was from a Super Bowl, when the RevPAR skyrocketed that weekend. In addition, Mr. Talbert noted the Bureau was the County�s official destination sales and marketing company to promote national and international tourism, and in the process of updating its strategic plan to attract more visitors to the County, which in turn would support more local jobs.
Mr. Talbert noted, according to Destination Marketing Association International, several cities had increased their tourism marketing budget to amounts far exceeding the County�s budget. San Francisco added $9 million, Los Angeles added $11 million, San Diego added $9 million, Seattle added $6 million, Chicago added $5 million and Anaheim added $4 million, he noted. Mr. Talbert suggested and said the Bureau�s hotel partners supported a match in MDC�s budget, which was desperately needed to market the facility and related events. He concluded by displaying a recent article from an industry publication with a headline that read: �The Chicago CVB Budget expected to skyrocket.�
Mayor Gimenez concluded his presentation noting that he, staff, and the consultants were available to answer any questions.
Chairwoman Sosa called for representatives of the Dolphins to make a presentation.
Mr. Mike Dee, CEO for the Miami Dolphins, appeared before the Board and expressed appreciation to the County Commissioners for hearing this matter. He also expressed appreciation to Mayor Gimenez and County staff for their commitment, endless hours of hard work and concentrated effort to meet the deadlines. Mr. Dee noted, back in January 2013, when he came before the Board to announce a plan to modernize the Sun Life Stadium, he cited the following 6-point pledge that underscored the team�s commitment to:
1) Approach this partnership differently than any other, by investing more, pledging more and returning more to the community and fans;
2) Guarantee that private funding/investment would pay for most of the stadium construction costs, including possible cost overruns associated with the improvements of the Stadium;
3) Not include in any requests for public investment, new or increased taxes imposed on the residents of Miami-Dade County (MDC);
4) Create thousands of local jobs by hiring contractors, subcontractors and ve ndors from MDC;
5) Build a world-class facility with improved sight lines, seats moved closer to t he field, and HD lighting to create an electrical environment for Sun Life Stadium, the Miami Dolphins, Hurricanes, Orange Bowl and International Soccer events; and
6) Secure the future of the Dolphins franchise, by committing the Dolphins to play at a modernized Sun Life Stadium through 2034.
Mr. Dee noted, since the pledge was announced, the Dolphins have exceeded the initial commitments by agreeing to the following new terms: a 30-year, non-relocation agreement to keep Miami Dolphins in Miami until at least 2043; increase private investment to 70%, which was originally interpreted as 51%; ensure local jobs were a significant part of the construction plan; and most significantly, allow the voters to decide the outcome of the proposal in a special countywide referendum election to be held on May 14, 2013. Mr. Dee reiterated that any requests for public investment would not include new or increased taxes on the residents of MDC, but be paid for by the visitors to MDC; just as taxes are paid to other communities when we visit them. He also noted the team recognized that MDC citizens were disenfranchised over past deals and had no tolerance for repeating the same mistakes. He noted the team�s commitment to approach this deal differently and allow the voters a final say in the matter. Mr. Dee commended the County Mayor for making that a top priority in this agreement before negotiating with the team.
Mr. Dee stressed the need for the Stadium to remain competitive and attract major events. He noted besides pro football, this community has come to expect various signature events on a regular basis, like Wrestle Mania, college football championships and international soccer, which provide a significant economic benefit for this community. Mr. Dee said that ten Super Bowls had been hosted in MDC, which was more than any other community had hosted, except for New Orleans. He noted a ten year gap, prior to the 1989 Super Bowl game, when no super bowl games were hosted in Miami, because the Stadium did not meet the NFL requirements, which more than likely caused MDC to lose the award of two super bowls. Mr. Dee said that much was at stake in terms of economic development.
Mr. Dee commended Mayor Gimenez for requiring the Dolphins to be held liable if no ROI resulted from this deal. He noted the team would become a partner with the County, committed to attracting additional signature events and creating more jobs and economic growth for the community. Mr. Dee said he was confident that more signature events were possible with a modernized, competitive facility.
Mr. Dee noted he believed the technical amendment proposed by the sponsor of the item, Commissioner Jordan, item, would place the County in a better position in May 2013 for receiving an award of a Super Bowl, without compromising the integrity of the NFL process. He expressed appreciation to the Board for considering this proposal.
Chairwoman Sosa expressed appreciation to the County Administration for their cooperation in this process and to the Dolphins for opening their financial books for a review.
Mr. Rodney Barreto, Chair of South Florida Super Bowl Host Committee (SFBHC), appeared before the Board, and noted the SFBHC was actively pursuing the award of Super Bowls L and LI (50 and 51) in MDC. He commended Mayor Gimenez for negotiating a tough deal and the Dolphins for acquiescing to it. He pointed out that Super Bowls not only entertained football fans, but also corporate America as well. He said that not only do visitors come to attend the Super Bowl games; they patronize the hosting city�s airports, local hotels, restaurants, beaches and other tourist destinations, as well. Mr. Barreto noted it has been estimated that approximately 50,000 additional people visit the hosting city to participate in other related events that celebrate Super Bowl.
Mr. Barreto noted sixteen (16) Super Bowls have been hosted in the State of Florida, ten of which have been hosted in Miami-Dade County. He also noted other communities now realize the economic benefits of Super Bowls in providing local businesses and jobs in the community. Mr. Barreto said that one of the highlights of his career was seeing the NFL create more local businesses in the local communities, and pointed out one successful businessman in the audience whose business was created with the help of the NFL. Mr. Barreto commented on the availability of hotel rooms in New Orleans, during the week of a Super Bowl, noting the rooms were full to capacity, and the closest available room was several miles away. He indicated that Miami was a competitor of New Orleans and now competing with the City of Santa Clara for the award of Super Bowl L (50). Mr. Barreto concluded by noting the SBHC has developed a fantastic bid package with innovate ideas for Bay Front Park, Bicentennial Park and other events/venues; and he commended the Dolphins for negotiating a plan to secure future Super Bowls in South Florida.
Following conclusion of the foregoing presentations, Chairwoman Sosa reviewed today�s (4/10) procedural guidelines, and noted laws were in place to guide this process that required the County Commission and Administration to adhere to. She also noted the County Mayor would see to it that this hearing was aired in English, Spanish and Creole and that the proposed agreement was provided to the public in detail. She said she believed that all the municipal governments would receive a copy of the documents to review and disseminate to the public so that the voters could make an educated decision. She reiterated that if approved today, the agreement would be set for first reading on May 7th, and a public hearing would be set seven days thereafter, before the BCC.
On a point of personal privilege, Commissioner Jordan introduced Tyrod Simonette (phonetic), as the role model she chose for the annual �Take a Role Model Apprentice to Work� day event, and asked him to stand and be recognized.
At Commissioner Jordan�s request, County Attorney Cuevas read into the record, the amendments proffered thus far. He noted as to Special Item No 1, the amendment was to replace the words �twenty-one� with the word �twenty,� in the second line of Section 5, on handwritten page 4, which would effectively reduce the number of voting sites; As to Special Item No. 2, to correct several errors in the modernization agreement with technical amendments noted in the written document (Exhibit No. 4)distributed to the Commission members and the Clerk; and to add the reference �Section 2.1� to the third bullet, on handwritten page 9, of this same item.
Assistant County Attorney Oren Rosenthal read into the record, additional amendments requested by the sponsor, as follows: In Special Item No 1, replace the words �Award of Super Bowl 50 or 51� with the words �award of Super Bowl in May 2013� in the last bullet point of the ballot question, on handwritten page 4; and in Special Item No 2, make the conforming changes to the resolution and agreement, by replacing the words �Super Bowl 50 and/or 51� with the words �a Super Bowl� in the eleventh line of Section 5(d), on handwritten page 5, and in Section 6.2.1, on handwritten page 17 (typed page 11 of the Modernization Agreement).
Chairwoman Sosa asked Commissioner Jordan to indicate at the proper time if she accepted these amendments.
Commissioner Bovo said he would like to proffer an amendment to Special Item No 1.
Commissioner Jordan responded to the Chair�s inquiry, and said she preferred to hear the amendments of other Commissioners as they spoke on the items so she could address them in her closing comments.
Commissioner Jordan moved a motion to adopt the foregoing proposed resolution in Special Item No 2, as amended. This motion was seconded by Commissioner Diaz, followed by a discussion.
Chairwoman Sosa asked the County Attorney to guide the Commission at the proper time, on which item they should vote on first.
Commissioner Barreiro spoke in support of this item and a world-class facility for the Miami Dolphins. He said he believed that any major destination wanting to attract world-class events needed a world-class facility, and required a substantial amount of public funding to do it. He pointed out that a deal was negotiated by the County Mayor on behalf of the community, and the citizens would get to decide it. Commissioner Barreiro noted throughout his political career and his last campaign, he clearly supported providing the Dolphins a world-class facility, noting the value of this team was well recognized in this community. Commissioner Barreiro said he recalled a City of Miami referendum in the 1980s to renovate the Orange Bowl, and the substantial consequences to the community after it failed. He said he believed the foregoing proposed deal overall was good for the community and should be decided by the public.
Commissioner Diaz commended the Mayor, County staff, and the Dolphins� Administration for reaching an agreement and for the manner in which it was formulated. He thanked Dolphins� owner Stephen Ross and Mr. Dee who proved that they cared for the community. He said he was mainly concerned for transparency in the agreement and that it benefited both the residents of Miami-Dade and the Miami Dolphins. He said he observed that 99 percent of his concerns were addressed by this agreement, such as transparency, no tax burden imposed on the community, the assurance that the team would not be sold within a set number of years, an attached performance bond, and support by the local hoteliers and businessmen. He noted he believed the proposed agreement dealt with all of these concerns and was well balanced.
Commissioner Diaz noted he agreed with Commissioner Barreiro�s comments that the County could have had a very good Orange Bowl Stadium and saved money had the referendum to renovate this facility not been rejected by the community. He said that it was most important for the residents to vote in favor of this agreement.
Commissioner Heyman acknowledged all interested parties, and said she was happy that all her questions had been answered by the Administration and the Dolphins� representatives. She referred to the amendment for Special Item No. 2, regarding the definition of �TDT Funding Payment� in Appendix A6, on handwritten page 38, providing that the stadium received 75 percent of the Tourist Development Tax (TDT) collections, yet she noted the agreement was silent on the 25 percent portion that the County would receive.
County Mayor Carlos Gimenez explained that the agreement was silent on the 25 percent because its use was entirely within the County Commission�s purview. He said that the agreement only detailed the percentage of the Tax that was needed for the County to participate in this project. He stressed that the 25 percent was protected and eligible for limited purposes, and that the tourist tax could only be used to fund professional sports facilities and some tourism-related activities.
Commissioner Heyman commended the County Mayor for providing the information in a timely manner, and for hiring consultants to validate the agreement and present their findings. She referred to the Mayor�s April 9, 2013 memorandum to Chairwoman Sosa, which stated that the agreement would impose no new debts or bond issuance to the County, but was limited to the TDT.
Mayor Gimenez confirmed that the agreement would be funded entirely through the TDT. He said that the parties envisioned a structure similar to the operating subsidy for the American Airlines Arena (AAA). He explained that the team would receive a subsidy of 75 percent and be responsible for all of the financing.
Commissioner Heyman noted the newspapers today indicated that the MDC taxpayers would have a debt burden.
Mayor Gimenez assured members of the commission that no debt would be incurred by the County; the agreement would be funded from a set stream of revenue through an additional 1 percent levy of TDT (bed taxes), which required State approval. He clarified that regardless of the amount of TDT generated in any given year, only 75 percent of the additional tourist bed tax would be provided for this project, and the Dolphins would have to make up the difference.
Commissioner Heyman pointed out that the Stadium was on the County�s current tax rolls, and paid over $4 million in annual property taxes. She asked whether the foregoing agreement would change this tax status for the Stadium.
Mayor Gimenez noted, to his knowledge, the Miami Dolphins were the only professional team in the State of Florida and the only NFL team in the nation that paid property taxes. He assured the Board that the County would not assume ownership of the Stadium, and that the Stadium would remain a private entity, which would continue to be assessed property taxes by the County. He pointed out the proposed stadium improvements would increase both its value and the property tax for this property, and result in additional tax revenues that could be used by the County to hire more teachers, firefighters, police officers, etc.
Commissioner Heyman asked whether the public funding to be used for the stadium renovations would impact funding for any other public/private partnership, such as the Miami Beach Convention Center.
Mayor Gimenez confirmed that nothing in the agreement would impact any other County partnership or decrease funding for the Miami Beach Convention Center. He said the proposed levy would create a new source of revenue, which had yet to be authorized by the State.
Commissioner Heyman said she hoped the County would receive a cost estimate for this project. She thanked Mayor Gimenez for including guarantees and penalties in the agreement that addressed some issues and costs to be incurred.
Commissioner Heyman noted an amendment was put forth in Tallahassee last week to provide the Dolphins a $3 million annual sales tax rebate that would be repaid by the team at the conclusion of the 30-year payment term. She inquired of the stadium representatives whether this was correct.
Mr. Dee confirmed that a commitment was made in Tallahassee, where representatives for the stadium pledged to pay back the entire net proceeds from the State sales tax rebate, at the end of the 30-year term; and it aligned with the team�s repayment of the TDT funds to the County.
Chairwoman Sosa noted she was particularly interested in hearing Mr. Dee confirm the stadium�s commitment to repay the County.
Commissioner Heyman pointed out that Miami-Dade was a donor County that sent money to the State, and the Stadium would take a rebate for financing purposes, and in essence, transfer it into a loan to be paid back in 30 years.
Mr. Dee confirmed that the state rebate would be paid back in 30 years.
Commissioner Heyman noted some constituents had repeatedly approached her about whether she supported this proposal. She concluded her comments by saying that she had read the agreement; believed it addressed the important concerns, such as the percentage, penalties, guarantees, and a voter referendum; and she would support it.
Mayor Gimenez clarified that the refund and amounts to be paid back to the County and State by the Dolphins, were based on the net proceeds of a revenue stream.
Commissioner Suarez said he was happy to hear the clarifications provided, in response to Commissioner Heyman�s questions. He commended the Mayor for negotiating terms that kept the County from �full faith and credit.� He noted he was encouraged by the fact that the tax to be imposed was an industry-specific tax, and that the industry was well represented. He stated he was certain the sponsor, Commissioner Jordan, would ensure the agreement included a community benefit agreement, as requested by the Martin Luther King Economic Development Corporation. He noted he had informed the Dolphins� representatives that he wanted the agreement to include a referendum funded by the Team, which they consented to.
Commissioner Suarez said it was time to reconsider whether these taxes should be used for such purposes. He noted the Commission members were considering the use of public funding to improve the stadium because they wanted to attract super bowls here; however, the County already attracted super bowls, as represented by Mr. Talbert. He stressed that this did not seem to be a compelling reason to use a $7.5 million stream of revenue, noting these funds could be used by the County to fund a summer jobs program for high school students. He pointed out that from the standpoint of economic development, this project would not have a great multiplier effect. He observed that the County could use $160 million of this money to fund transportation, purchase 300 trolleys at $200,000 each, and have enough money remaining to purchase 4,000 neighborhood circulators at $25,000 each, which would provide 4,300 people with employment, and reduce the County�s unemployment rate by � percent.
Commissioner Suarez mentioned the sequence of events and the pressure the commissioners had been under. He said he appreciated the County Mayor�s efforts to negotiate the best agreement possible under difficult circumstances. He referred to an editorial in the Miami Herald, which clearly stated that the use of bed taxes to fund sports facilities was allowable by law; however, many Floridians were tired of bailing out private franchises. He suggested that members of the Commission wait for the legislators to decide whether they wanted to maintain a policy using such revenue streams to fund these kinds of franchises. He pointed out that the sequence seemed to be wrong, and expressed concern with the decision to hold the referendum in May. He said because he believed that the County would be awarded a Super Bowl anyway, and that the special election would lack public participation, he could not support the proposed item and ballot referendum.
Commissioner Bovo stressed that the County needed to be mindful of the importance of this franchise to this community. He said that as a fan of the Dolphins, he suffered when they lost and rejoiced when they won. He noted he would like to propose an amendment to Special Item No 1, to include the words �increase of (or raising the) tourist room tax� in the ballot language. He said he believed the amendment was necessary to make this process much more transparent and put it in the proper context for the voters. He asked the Assistant County Attorney to read the appropriate amendment language into the record, and that the Sponsor and Commissioners consider it.
Assistant County Attorney Oren Rosenthal read into the record, the amendment proffered by Commissioner Bovo, as follows: On handwritten page 4 of Special Item No 1, at the beginning of the ballot statement, the word �additional� would be removed from the third line, and replaced with the words �an increase in� so that it read: �proposes using $7,500.000 a year adjusted annually for growth from an increase in tourist room taxes.� He advised that along with the amendment, the following two confirming amendments were needed to keep the ballot language within the 75-word requirement: In bullet 2 of the ballot, replace the words �private funding for majority of costs� with the words �privately funding majority of costs�; and the last bullet point of the ballot would read �Super Bowl awarded in May 2013�, instead of the current wording.
Commissioner Jordan said she did not consider this to be a friendly amendment. She pointed out that the word �additional� meant �additional�, and she did not believe it was necessary to replace that word.
Commissioner Bovo asked for clarification, inquiring whether his amendment was barred from further consideration.
Chairwoman Sosa explained that usually the sponsor would either accept or reject the proffered amendment; however, if Commissioner Bovo wanted to move a separate motion to include his amendment at the time the item was moved, he was more than welcomed to.
Commissioner Bovo pointed out that voters have often complained that they did not understand the ballot language, and his intent in proposing the amendment was to make it clear that the bed taxes would increase if the residents approved the proposed referendum. He stated he would wait until the end of the meeting to present his amendment; and asked the Chairwoman whether he was authorized to speak about the issue itself, or limited to make comments regarding the ballot question.
Chairwoman Sosa clarified that Special Item No. 2 pertaining to the agreement between both parties was currently before the Board of County Commissioners for consideration; however, the commissioners could comment on either the ballot question or the agreement.
Commissioner Bovo indicated that the Commission members were now being asked to vote on a contract that was provided to them late last night, in order to send a message to the State legislature. He thanked the Mayor for agreeing to meet with him earlier this morning to brief him on the terms of the agreement, and acknowledged that it was different from the Marlin�s deal. He said he still had a number of questions, and requested the Supervisor of Elections to come forward to address them.
Commissioner Bovo inquired of the timeframe for the Elections Department to begin preparing for the election, print the ballots and send out the absentee ballots to the voters.
Ms. Penny Townsley, Supervisor of Elections, advised that if the foregoing item, calling for a special election, was approved by the Board today, the Elections Department would immediately begin to prepare for this election. She noted the background work had already commenced in anticipation of this occurrence, in order to mail out ballots to the voters overseas by April 16, 2013. She said the mail out of domestic ballots would begin on April 23, 2013, and notice of the election would be published on April 13, 2013.
In response to Commissioner Bovo�s inquiry regarding whether the newly approved requirement to include self-stamped envelopes with the absentee ballots would apply to this election, Elections Supervisor Townsley advised that the requirement would be applicable to this election; and she was confident the Elections Department could prepare to hold the election within 30 days. She stated the Mayor and Deputy Mayor Alina Hudak had expressed their commitment to provide the department with the necessary support to hold the election.
Discussion ensued between members of the Commission and Ms. Townsley regarding previous elections that required preparation in short notice.
Commissioner Bovo thanked the Mayor for taking time to speak to him. He commented on the issue of local preference, and the provisions in the contract regarding the pledge to create local jobs.
In response to Commissioner Bovo�s inquiries regarding the enforceability of local preference; how it was monitored and the rationale of not imposing a higher threshold, Mayor Gimenez explained that a certain percentage was required by the local preference ordinance and the aspirational goals could exceed that. He opined that the aspirational goals established by the Department were reasonable, attainable, and he assured they would be monitored. He noted he had anticipated that these goals would be met by the franchise based on the organization�s history in this community.
In response to Commissioner Bovo�s inquiry whether an increased goal of 75 percent was attainable, Mayor Gimenez advised that he was unable to ascertain whether a goal of 75 percent was attainable or reasonable for this organization, inasmuch as certain aspects of the project might require expertise, but he believed a 50 percent threshold was reasonable and attainable. He noted these aspirational goals were established based on historical data. He said the Board could amend the foregoing resolution to increase them and inquire of the organization on whether they were attainable.
In response to Commissioner Bovo�s inquiries regarding the firms that were contracted to examine the Dolphins� finances, and whether Mr. Ross� personal finances should have been examined as well, due to the personal guarantees he proffered, Mayor Gimenez advised that the entities contracted by the County were charged to examine the Dolphins� books to determine a revenue stream, the Dolphins� ability to repay, and their capability of funding this project alone. He noted the finances of Mr. Ross were not examined because the County was dealing with the Dolphins and the Stadium only.
Mayor Gimenez commented that even though Mr. Ross was apparently very wealthy and owned assets outside the Dolphins, the County agreed to him personally guaranteeing the notes payable for the project; therefore, Mr. Ross would be liable, if the Dolphins failed to comply with the repayment terms.
In response to Commissioner Bovo�s question regarding what would happen if Mr. Ross sold the team and discontinued his involvement with this project, Mayor Gimenez advised that a subsequent owner would need to own at least $1 billion in assets and be approved by the NFL, if Mr. Ross were to sale the team. He noted all rights, debts, and responsibilities would transfer to the new owner.
In response to Commissioner Bovo�s comment that the Dolphins had only been asked to contribute $112 million, and his question regarding the County�s total commitment, Mayor Gimenez clarified that the gross amount over 30 years was approximately $289 million, and would yield between $112 and $120 million for the project, based on today�s market. He noted this was the extent of the County�s commitment.
Responding further to inquiries of Commissioner Bovo, Mayor Gimenez clarified that at the end of the 30-year term, the Dolphins would repay the net proceeds of the stream, and need to issue or sale bonds, based on that stream and the repayment schedule. He also noted he anticipated the proceeds to be between $112 and $120 million, which represented the return that the County would receive at the end of the 30-year period.
In response to Commissioner Bovo�s question, Mayor Gimenez advised that the County would receive a lump sum payment similar to a balloon payment.
Commissioner Bovo expressed his concurrence with Commissioner Suarez� position and thanked the Mayor for making himself available to meet with him and address this issue. He noted this was an important issue and the agreement would stream out over 30-years. He said his primary concern was asking the voters to make a decision in short notice, and the public not being well informed of the issues.
Commissioner Bovo stated his opinion that the timeframe for providing the electorate with the appropriate information should be a minimum of 60 days prior to an election, in order for the public to become well informed. He noted, based on his concerns, he could not support the foregoing resolution, and would vote No on it.
Commissioner Zapata commended the Mayor and his staff for an outstanding job done on this agreement, inasmuch as he felt this was as good as it would get, though he was not quite convinced that it was a good deal. He said it was definitely innovative and creative, and the Mayor should be commended for that. He also thanked the Dolphins, particularly Mr. Dee, for demonstrating professionalism and going above and beyond representing the teams spirit and what the Dolphins meant to this community.
Commissioner Zapata commented on his belief that a public investment was needed to improve the County�s infrastructure. He said he had reservations about supporting this agreement based on the aspirations of this Commission and its responsibility to the citizens of this community.
Commissioner Zapata commented that he believed the amended language in the proposed ballot told only part of the story, not the entire story. He agreed with Commissioner Bovo�s comment that the County needed to be truthful and forthcoming with the voters regarding this deal. He said it was fascinating to hear the amount the stadium owners would repay to the County after 30 years, but no mention of the total grant amount. He noted he had reservations with regard to the ballot language, in the sense that the penalties were stated, but not the true cost to the County.
Commissioner Zapata commented that this agreement was complex and difficult to comprehend in a short time. He noted what concerned him the most were the personal guarantees, and the past history of some sports team owners who had not fulfilled their responsibilities. He stated he wished to secure a good deal for Miami-Dade County and the Dolphins, but not necessarily for the team owners. He questioned the impact on the agreement, in terms of fulfilling the personal guarantees and transferring the debts and assets, if the team owner became deceased.
Commissioner Zapata asked if the phrase �combined entity� in Mr. Hirsh�s statement �the combined entity could not fund this project without outside assistance� was a reference to the Dolphins and Stadium.
Mr. Hirsch responded that was correct.
In response to Commissioner Zapata�s question regarding whether anyone had determined an amount the Dolphins could afford to finance on their own, Mr. Hirsh opined that the Dolphins could afford very little above their existing debt.
In response to Commissioner Zapata�s questions regarding whether the modernization plan was examined to see if it was reasonable, and whether the Dolphins could maintain the stadium, Mr. Hirsh noted his firm�s scope of work, as charged, did not include an examination of the modernization plan or type of renovations for the project. He said the Dolphins had spent a consistent amount of money for capital repairs and ongoing maintenance of the stadium; and the amount expended/budgeted for maintenance was consistent with the industry.
In response to Commissioner Zapata�s inquiry regarding whether the Dolphins had the capability and capacity to properly maintain this facility well into the future, Mr. Hirsch said the Dolphins had that ability, and he saw no problems with the team maintaining this facility into the future.
In response to Commissioner Zapata�s question regarding whether the agreement could be modified at any time in the future to waive the five year term or required commitments to hold events in the County, and would it require a simple majority vote, Assistant County Attorney Gerri Bonzon-Keenan advised that, upon mutual agreement of the parties, any amendments would need to conform with the legal requirements on the levy and use of the tax; and to the extent that the terms were expressly approved; and would require a simple majority vote of the Board.
Commissioner Zapata asked if there was any legal reason why the agreement could not be amended to include a super majority vote, to strengthen it.
Mayor Gimenez opined that this County Commission could not tie the hands of a future County Commission, who would be duly elected by the people of the community. He said although a time may come when the agreement needed to be amended under the purview of a future Commission, the current agreement had to be mutually agreeable by the Dolphins and the County Commission.
Assistant County Attorney Bonzon-Keenan advised that a requirement for a super majority vote could be legally included in this agreement; however, approval of the foregoing resolution would be by a simple majority vote, and could be waived by a subsequent resolution and simple majority vote of a future Commission; thus, the agreement would not be strengthened as intended by the amendment mentioned by Zapata regarding a super majority vote..
Commissioner Zapata asked what would occur in the event the stadium declared bankruptcy, and how would that impact the guarantees set forth by the owner.
Assistant County Attorney Bonzon-Keenan advised that the personal guarantees set forth by Mr. Ross were based on two components. Aside from any outside financing, Mr. Ross personally guaranteed the team�s payment obligation at the end of the 30-year term, as it related to the owners public contribution (payment of approximately $112 million in TDT financing), and any marquis event penalty payments due at that time. She stated the personal guarantee could extend to the estate and be binding upon the owners� heirs until such time a successor primary owner was selected.
Commissioner Zapata reiterated his concerns regarding past actions of previous team owners who shifted or shielded their assets to evade debt; benefited significantly from public funding to enhance the asset; sold the stadium for a profit and transferred the debt to the new owner. Commissioner Zapata commented that he did not wish to see a similar situation in this agreement, after five years into it.
Assistant County Attorney Bonzon-Keenan advised that to the extent the agreement was assigned, it would be for the benefit of the assignees; however, no transfers would be permitted without written approval of the County Administration.
Commissioner Zapata inquired whether a safeguard mechanism was in place to protect the County�s investment and could the agreement include a provision to accelerate repayment of the owner guaranteed debt, in the event the team was sold.
Ms. Bonzon-Keenan advised that the agreement could be amended to include a complete acceleration of all sum payments due, but currently it included acceleration for repayment of $120 million, (the owner public contribution), assuming the sale of the stadium closed within the first five years of the agreement.
Commissioner Zapata noted he had some reservations concerning the proposed agreement and amended ballot language, but would support approval of the item calling for a special election to allow the voters to have a say in the matter. He said that including some safeguards in the agreement to protect the County�s interest would certainly influence his vote favorably, and hoped the sponsor would accept an amendment to that effect; otherwise, he would vote No on the foregoing item as written.
Pursuant to Chairwoman Sosa�s request, Assistant County Attorney Bonzon-Keenan clarified the amendment suggested by Commissioner Zapata was to accelerate any payments that Mr. Ross as team owner would personally guarantee, which was repayment of the owners� public contribution (approximately $112 million in TDT financing proceeds) and the marquis event penalty shortfalls (the unsatisfied portion), in an amount to be determined at that time.
Commissioner Zapata asked Ms. Bonzon-Keenan to draft language for his proposed amendment. He noted if the amendment was acceptable, he would vote favorably for the agreement, but he did not want to see another team owner take advantage of this community.
Commissioner Jordan noted she would like to review the drafted language of the amendment proposed by Commissioner Zapata and summarized by Assistant County Attorney Bonzon-Keenan. She also asked Mayor Gimenez to comment on the proposed changes.
Mr. Dee asked Commissioner Zapata to clarify his specific concerns regarding the franchise value and future obligations.
Commissioner Zapata explained to the extent that public dollars were invested by the County to finance the renovations, and ultimately it increased the stadium�s value, his concern was the Stadium owner would sell the asset and realize a hefty profit, after utilizing taxpayer dollars to enhance it, and then transfer the existing debt to the buyer. Commissioner Zapata said he wanted to know how the County�s investment could be protected and if the County could benefit by sharing in the profits made or accelerate repayment of the outstanding debt, based on the enhanced value provided through public investment.
In response to Commissioner Zapata�s concerns, Mr. Dee noted the transaction as described that the owner would benefit from receiving total proceeds of the sale, and then conveys the outstanding debt, suggested a double dipping and was not a probable scenario. Mr. Dee explained that in the event Mr. Ross and/or his estate sold the team, any money owed by the franchise would be deducted from the purchase price, and the remaining debt conveyed to the new owner. In other words, the equity value would be reduced by the remaining amount of the debt and passed on to the successor owner.
As it pertained to this agreement, Mr. Dee noted the franchise would be obligated to repay any outstanding debt in thirty years, which was personally guaranteed by the team owner Mr. Ross, and any successor owner would be required to meet extensive criteria in the agreement, including a minimum net worth of $1 billion, and approval from the NFL, which was a high standard to obtain. He said that the negotiated terms in this agreement, and the personal guarantees required by Mr. Ross and any successive owner, should satisfy the concerns of Commissioner Zapata.
Mayor Gimenez added that the agreement included a $20 million prepayment penalty to protect the County in the event the team was sold within the first five years.
Commissioner Zapata referenced the appendix and repayment schedule reflecting an annual $7 million repayment, and said it would result in a collection of $35 million dollars over five years. He questioned why the collected amount would be $20 million, instead of $35 million, if the team was sold in five years.
Mayor Gimenez noted the amount to be considered was the net proceeds of the stream, not the gross amount. He noted approximately $4 million per year would be obtained from the total $120 million stream. Mayor Gimenez said he had consistently stated all along that the County would receive back an amount from the proceeds of the revenue stream.
Commissioner Zapata clarified that he was referring to the County�s participation in the share of the profits, if the franchise was sold within five years, since the County had helped to enhance the asset�s value.
Mayor Gimenez noted he considered this deal to be an economic development grant. He explained that the County normally provided tax breaks using the County General Fund monies to keep or bring businesses to Miami-Dade County, in exchange for the creation of jobs and/or an economic development benefit to the County. Mayor Gimenez noted the County had never participated in the share of profits earned from the sale of a business that received a county tax break. He said the foregoing deal would provide a return on the County�s investment and be repaid in thirty years; and it also included imposing penalties should the Team fail to deliver on their promises.
Mayor Gimenez reminded the Commission that according to the team, the renovations were needed to attract major events to be held in the Stadium. He explained that since this agreement was similar to an economic development grant, the funds used to pay for the renovations would be generated through a tax, rather than taken from the General Fund or Ad Valorem dollars. Mayor Gimenez said that he was not interested in the County owning the stadium or becoming a part of the Dolphins organization, but wanted the transaction to be as simple as possible. He noted certain performance measures were included in the agreement and neither party was able to negotiate everything they wanted. He also noted that penalties were attached to those performance measures, and a portion of the economic development grant would be repaid after thirty years.
Commissioner Moss commended the Mayor, County Administration and the Miami Dolphins for enduring a long and grueling negotiation process. He said that in order to be a world-class community, the County needed a world-class facility, and he believed the investments in these facilities would pay off in the long run. Commissioner Moss noted there appeared to be some confusion about the G4 Loan Program, and proceeded to question Mr. Hirsch about the specific details of that program and how it worked.
Mr. Hirsch responded that the G4 Loan Program was only available to NFL franchises, and the information he obtained about it was through research. He explained that the G4 Program was definitely a loan program and the loans were partially guaranteed by the team owners; used by many sports franchises able to borrow from it due to the strength of their commitments; and it was provided by the NFL it which offered favorable rates to its member franchises.
Commissioner Moss inquired about the methods used to pay back those loans, and if the teams paid monies to the NFL to provide the loans.
Mr. Hirsch noted that based on his research, the NFL was paid back by funds generated by the team through Visitor Team shares, premium seating, etc. He said the NFL considered the increases in revenue pools related to capital investment. Mr. Hirsch clarified that fees were currently paid to the NFL by the Dolphins and other NFL teams, of which some revenues were circulated by the NFL amongst the teams, and some remained with the League. He also said he believed Commissioner Moss was correct in stating that the Dolphins and other NFL teams paid fees into the NFL for repayment of a G4 Loan, regardless of other outstanding obligations paid from the franchise revenues.
Commissioner Moss commented that the G4 Program appeared to be more of a grant, than a loan.
Mr. Hirsch noted it is a loan guaranteed by the owner; and obligated the owner to pay back any shortfalls, and the franchise to make up the difference.
Mr. Dee added that Mr. Hirsch was correct in stating that the G4 Program was a loan. He noted the initial $100 million is amortized over fifteen years, and secured by revenues paid into the Visiting Team Share fund and/or from the sale of certain general and club seats. He noted this loan was definitely private financing that was paid back based on incremental growth; a payoff was required if certain benchmarks were not met, and it involved risk. Mr. Dee also noted the monies accrued in this program are diverted to pay for various facilities and the Dolphins have financed the stadium projects of other communities through their contributions to the G3 & G4 Programs. Mr. Dee said the Dolphins viewed this program as a positive resource for Miami-Dade County from investments by other communities. He reiterated that under the G4 Program, the Dolphins were required to fulfill their obligation if they did not meet certain bench marks.
Commissioner Moss noted the community�s perception was that the Dolphins paid fees to the NFL, regardless of their undertaking of the stadium renovation project, which made it appear as though the Dolphins would not be contributing as much as the County would be in this deal.
Mr. Dee said he could assure that the G4 loan was private financing, based upon the requirements to qualify for the program, which required a significant amount of equity up-front from the team owner, Mr. Ross; the teams� obligation to repay the loan within a 15 year period, if the designated benchmarks were not met, and the involved risk.
In response to Commissioner Moss� question regarding whether the table displayed in Attachment 1, on page 5 of the supplemental item, was provided by the team or by PFM, Inc, Mr. Hirsh said he believed the exhibit was provided by the Dolphins organization.
Deputy Mayor/Finance Director Edward Marquez advised that the table was provided by the Dolphins organization and reviewed by the County Administration.
Mr. Hirsh added that the table was a consolidated financial statement, depicting the Stadium and Dolphins� annual earnings; interest payments on current debt; and reflected a $2.4 million profit in 2009; a $27 million loss in 2010; a $419,000 profit in 2011; and a $1.8 million profit in 2012.
In response to Commissioner Moss question regarding whether the stadium improvements could be accomplished by these two entities alone, based on the review of the financial records, Mr. Hirsh opined that based on his review, the two entities could not complete the improvements on their own.
Commissioner Moss asked whether the requirements for the new or subsequent owner to have net worth of $1 billion minimum and approval by the NFL, was a requirement of the NFL or of the County, and how would it be enforced.
Mayor Gimenez noted if those requirements were not met it would be a breach of the agreement, which meant the prospective owner could not purchase the team.
Assistant County Attorney Bonzon-Keenan responded that she was unaware whether the required minimum net worth of $1 billion was a specific requirement of the NFL, but it was a condition of the proposed contract; and it required confirmation in writing by a qualified examiner selected in consultation by both the County and Mr. Ross.
Commissioner Moss inquired whether the NFL�s approval process for purchasing a team was subject to this agreement.
Assistant County Attorney Bonzon-Keenan noted the NFL process was not subject to this agreement, however, explained that any successor primary owner required written approval from the County Mayor, and was subject to two conditions in the agreement: 1) approval from the NFL; and 2) written confirmation from a qualified examiner that the successor primary owner had a minimum net worth of $1 billion, upon an independent review of the successor�s finances.
Responding further to inquiries of Commissioner Moss regarding whether the NFL could possibly approve the sale of the team without the owner meeting the requirements in this agreement, and would that be a violation of contract law, Assistant County Attorney Bonzon-Keenan noted the conditions in the foregoing agreement provided for a valid transfer. She explained that a transfer of Mr. Ross� or any other subsequent primary owners� interest in the franchise could not be exercised until it was approved by the NFL, and the net worth requirement was satisfied; otherwise, the transfer would be invalid.
Commissioner Moss asked if the County would need to litigate this kind of violation.
Assistant County Attorney Bonzon-Keenan explained that the current owner, Mr. Ross, would not be able to transfer his interests, unless the conditions in the agreement were met; and would personally be liable in the event the NFL approved a sale of the team to a subsequent owner that did not meet the requirements.
Commissioner Moss inquired about the hiring goal of 50 percent from the residents of Miami-Dade County, and was that goal established through the negotiations or by ordinance.
Deputy Manager/Finance Director Marquez responded that the 50 percent goal was an aspiration goal negotiated with the team, and the same goal used in the negotiations for the Marlins Baseball Stadium deal. He noted the Dolphins were encouraged to utilize the services of the South Florida Workforce and hire as many local workers as possible.
Commissioner Moss inquired whether the goal could be increased to 75 percent as suggested in earlier comments by Commissioner Bovo, since the percentile was not a number set by ordinance.
Mr. Dee advised that it is the team�s intention to hire local employees from within Miami-Dade County, and expressed the team�s willingness to hire more than the 50 percent aspirational goal negotiated. He said the team would do everything within its control to ensure the jobs were sourced to local businesses, based within Miami-Dade County. Mr. Dee noted his concern regarding the measurement of aspirational goals since some local companies hired workers from outside the County.
(See Legislative File No. 131414 for Part II of the report)
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Resolution
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REPORT FOR SPECIAL ITEM NO. 2 (PART II OF II)
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REPORT:
Commissioner Bovo noted he was prepared to offer an amendment at this time to increase the percentile of workers to be hired in Miami-Dade County and in the City of Miami Gardens area, for this project.
Chairwoman Sosa said she would provide an opportunity later in the meeting for Commissioner Bovo and other members to present their amendments.
Commissioner Moss questioned the Dolphin�s plan for diversity. He pointed out that Miami-Dade County was a diverse community, and the role of the County Commissioners was to approve many contracts for projects throughout the County and ensure they included local participation and jobs for the community. He expressed concern that the African-American community had not benefited from this process in the way that it should, inasmuch as he did not see many black workers at constructions sites he had visited, nor had he observed much diversity in previous projects. Commissioner Moss said he would not support future projects without a firm commitment to include individuals from all segments of the community, and a follow up plan for meeting the diversity goals.
Mr. Dee reaffirmed his commitment to hire a diverse workforce for this project, noting his preliminary discussions with President/CEO Bill Diggs of Miami-Dade Chamber of Commerce. He said that only the preliminary cost estimates were prepared as a basis for this discussion, and the construction design phase of the project had not yet begun. He also noted the Commission could count on his full and unconditional commitment to reach an agreement with the Miami-Dade Chamber of Commerce, the City of Miami Gardens and other diverse communities throughout the County. Mr. Dee said he recognized that this was a countywide effort and the Dolphins were committed to work in good faith to establish new benchmarks for these activities.
Commissioner Moss asked Mr. Dee to submit in writing a diversity plan from the Dolphins. He said anyone looking for his support of a future project should expect to provide a diversity plan upfront. Commissioner Moss noted the diversity plan for the Port of Miami Tunnel Project was a good example of the type of plan he was looking for in this project and a prototype of diversity plans that should be adopted in future projects.
Mr. Dee reaffirmed the Dolphins full and unconditional commitment to adhere to a diversity plan, and suggested that he could return before the County Commissioners between now and the time the ordinances for first reading were read, to provide a detailed and constructive diversity plan that had been worked out between the leaders of the diverse workforce, for the Board�s consideration and dialogue.
In response to Commissioner Moss� request, Mr. Talbert called for representatives present in the audience from the local hotel and lodging industry, to come forward and introduce themselves, and the following appeared:
- Mr. Robert Hill, General Manager of InterContinental Hotel, Downtown Miami
- Ms. Marty Bussey, Trump International Beach Resort, Sunny Isles
- Mr. Rod Sink, Chairperson of the Hotel Association
- Ms. Natasha Jarrett, Director of Sales, JW Marriott Marquis Miami & Hotel Beaux Arts Miami
- Mr. David Healy, General Manager, Shula�s Hotel Miami Lakes
Ms. Wendy Kallergis, Greater Miami and the Beaches Hotel Association (GMBHA) noted the following individuals were present earlier in the meeting, but needed to leave early:
- Mr. Mark Calibo, Director of Sales & Marketing at Double Tree Hotel & Miami Airport Convention Center
- Ms. Margaret Rose, Director of Operations at Sonesta Bayfront Hotel Coconut Grove
In response to Commissioner Moss� question whether the hotel and lodging industry was in support of the proposed stadium improvements, Mr. Talbert noted the GMBHA�s resolution supporting the Dolphin�s proposal was conditional upon the availability of sales and marketing dollars for the Convention and Visitors Bureau to market the facility and additional events.
Ms. Kallergis explained that over 60,000 hotel rooms existed in Miami-Dade County, mostly from the 160 hotels represented by the GMBHA, and half were located on the mainland. She noted the hospitality industry represented over 100,000 jobs in this County, and had experienced growth over the past three years. Ms. Kallergis said that an additional 10,000 hotel rooms would be available within the next five years.
Ms. Kallergis also noted the GMBHA supported the upgrade and modernization of the Sun Life Stadium using the additional one penny professional sports bed tax levied on persons lodging on the mainland of Miami-Dade County. She emphasized that the GMBHA�s support of this agreement was contingent upon a portion of the tax to be used to promote/market tourist related activities with an emphasis towards the mainland hotels.
Ms. Kallergis further noted the potential of the foregoing negotiated agreement which could create an unprecedented number of private/public partnerships and enhance the hospitality industry of Miami-Dade County and the local economy. Ms. Kallergis expressed confidence that the County would realize a positive return on its investment over the next twenty years, and respectfully requested the Commissioners� approval of this proposal.
Commissioner Moss asked Mr. Talbert to respond to comments in the media regarding the County�s inability to accommodate a Super Bowl and other major events at the same time.
Mr. Talbert explained that the referenced editorial had to do with the scheduling of the Boat Show and a Super Bowl at the same time, which was not remotely possible; however, should be addressed in the bid. He confirmed that this community had the capability of holding multiple events simultaneously.
Commissioner Moss asked about the increased RevPAR during the 2007 and 2010 Super Bowls and whether a spike in tourist development taxes occurred during those same years; and if so, by how much.
In response to Commissioner Moss question, Mr. Marquez responded �yes�, noting the records maintained by the GMVCB showed a substantial increase in bed tax revenues during the month of February, for Miami�s Super Bowl host years of 2007 and 2010.
Commissioner Moss asked Mr. Marquez to provide him a written report on that information, and that it reflect the total increase in dollars.
Mr. Talbert asked that the record reflect the GMVCB�s support for a portion of the remaining 25 percent bed tax to be used to promote and market tourism, since the GMVCB was underfunded for that purpose.
Commissioner Moss commented that the initial purpose of this agreement was for Miami to be selected as an awardee of either Super Bowl 50 or 51. He expressed concern with the amendment that removed language specifically related to Super Bowl 50 and 51, noting he was interested in Miami getting one of those events. He questioned how the proposed agreement would be impacted by the amendment.
Assistant County Attorney Bonzon-Keenan advised that the amendment as worded would permit the ballot language and the agreement to move forward, upon the award of any Super Bowl at the owners meeting in May 2013.
County Attorney Cuevas clarified that the agreement would not be limited to the award of Super Bowls 50 and 51 only.
Mayor Gimenez noted his negotiations with the Dolphins organization were for Super Bowl 50 and 51; however, the NFL asked for this amendment due to procedural issues. He asked Mr. Dee to explain.
Commissioner Moss reiterated his concern was that the entire process was predicated upon completion of the renovations and Miami being awarded either Super Bowl 50 or 51.
Mr. Dee explained that the NFL had a process in place by which Super Bowl games were awarded to areas, and he stressed the importance of the integrity of that process not being compromised by any one team. He noted the Super Bowl selection process began about one year ago with a deadline this May, and if this agreement was not approved today, Miami would have no chance of being selected for Super Bowl 50. He was confident that Miami would be selected for either Super Bowl 50 and/or 51 and its chances would be enhanced by eliminating any reference to a particular Super Bowl in the ballot language.
In response to Commissioner Moss� question regarding the Super Bowl selection process, Mr. Dee explained that Super Bowls 50 and 51 were the only games being awarded on May 22, 2013, and reiterated his comment that the integrity of the selection process undertaken by the NFL could not be compromised with any contingencies made by one team.
Mr. Dee noted, when this process began, it was determined that it would be extremely competitive since other cities had made major improvements to their facilities; and the consensus was that Miami�s chances of being selected for a Super Bowl would be enhanced if the Sun Life Stadium underwent similar improvements. He stressed that the organization�s goal was to be awarded Super Bowl 50, since it coincided with the 50th anniversary of the Miami Dolphins; however, reiterated the importance of not jeopardizing that chance.
Commissioner Moss asked if the list of multiple technical amendments (Exhibit No 4 of the Exhibits List) to correct scrivener errors in the Modernization agreement would have a major impact on this deal, to which Assistant County Attorney Rosenthal explained that they were not new concepts being added, but were technical clarifications legally required to ensure clarity of the deal.
Commissioner Monestime commended Mayor Gimenez and Mr. Dee for their efforts in negotiating this deal. He noted his analysis of this agreement was based on four different criteria: 1) that there be no County debt issued, general funds pledged or Ad Valorem revenues used towards financing this project; 2) that a referendum be held to allow the citizens to vote on this deal; 3) that a diversity plan be offered by the Dolphins; and 4) that other public investments/contributions be made by the Dolphins and the NFL.
Regarding a diversity plan and other public investments/contributions, Commissioner Monestime stressed the importance of the County obtaining the best return possible from this investment. He expressed concern regarding another organization�s failure to achieve its commitment to hire 14 percent of its workers from the community, especially in Commission Dist. 2. He suggested this item be amended to increase the local hiring goal to at least 75 percent, including hiring goals of 20 percent coming from the Community Development Block Grant (CDBG) eligible communities. He asked the sponsor of this item to consider his amendments, noting districts such as his were victimized when diversity goals were not upheld.
County Attorney Cuevas advised that Miami-Dade County was currently under Federal orders to not take race into account in the award of public dollars for public projects. He informed the Commission that this issue was litigated extensively in Federal court where the County�s ability to take race into account was challenged, and the County did not prevail; resulting in compensatory damages awarded to the plaintiff; and the County admonished by the Court that it was amenable to consider punitive damages, if the County continued such practices. He opined there were ways the County could achieve Commissioner Monestime�s proposal such as through the Community Development Block Grant (CDBG) Program, which was race and gender neutral; other existing programs for small businesses; or by raising e the aspiration goals.
Commissioner Monestime expressed concern that less than 1 percent of County contracts and agreements went to Black businesses, and said he supported hiring residents in CDBG eligible communities since that would address the diversity of ethnic groups.
Pursuant to Chairwoman Sosa�s request, Commissioner Monestime clarified his amendment to increase the county-wide hiring threshold to approximately 70 percent and require that 20 percent be hired from the CDBG eligible communities.
Mr. Dee noted the Dolphins organization would be amenable to increasing the hiring goals to 70 percent for the entire County, 20 percent from the CDBG eligible communities, and 10 percent from Miami Gardens; and would present a county-wide diversity plan to the County Commission by the date scheduled for the ordinances for first reading.
Based on Mr. Dee�s comments, Commissioner Jordan accepted Commissioner Monestime�s amendment. She noted CDBG communities existed county-wide and at least eleven commission districts would have some CDBG eligible employment opportunities.
In response to Commissioner Monestime�s question regarding Broward County�s participation, Mr. Dee noted they were not monetary contributors to this deal.
Mr. Dee further ensured that the events under the control of the Dolphins organization would be held in Miami-Dade County, including core activities and signature events relating to Super Bowls; the NFL headquarters; the NFL media center; and the NFL Fan Experience. He recognized that Miami-Dade County was a community largely comprised of small businesses, and commented on how Mr. Barreto, Chairman of the South Florida Super Bowl Host Committee, was a leading force in establishing a template, currently used by the NFL and replicated in other cities, to encourage small business participation in local Super Bowl activities. He noted the success of this model in the 2010 Super Bowl.
Commissioner Monestime spoke about the level of economic opportunities and benefits provided to a Super Bowl host community. He stressed the need to expand those opportunities to the multitude of small businesses in this community that had the capacity, the knowledge, and the ability to deliver the needed services.
Mr. Barreto commented on the success of the Youth Education Training (YET) Center and other enterprises created through the NFL. He spoke about the efforts made by the Super Bowl Host Committee to encourage small business participation by hosting training seminars and providing instructional handbooks to minority vendors. He noted he would provide Commissioner Monestime with a copy of that handbook.
A discussion ensued between members of the Commission and Mr. Barreto regarding the diversity of the South Florida Super Bowl Host Committee, in which it was noted by Mr. Barreto that the individuals who sat on the Committee were a diverse group that represented various ethnic and cultural backgrounds.
Commissioner Monestime asked what other commitments were made by the Dolphin�s organization for future improvements in blighted areas.
Mr. Nat Moore, former professional football player/founder of the Nat Moore Foundation, appeared and noted over the years, the Dolphin organization had built five parks in Miami-Dade County; set the record for minority vendor participation; and he stressed that they were focused on inclusion, not exclusion. He also commented on scholarships awarded to deserving youth in Miami-Dade County, by the Nat Moore Foundation.
Chairwoman Sosa asked that the discussion remain focused on the items being considered before the Board.
Commissioner Monestime noted he largely supported the agreement and allowing the community to vote on it; however, stressed the importance of communities throughout Miami-Dade County reaping some economic benefit from this deal.
Chairwoman Sosa advised that the Commissioners representing District 3 and District 8 were excused from today�s (4/10) meeting and the only two Commissioners who had not spoken in this meeting were Commissioner Souto and herself. She asked Commissioner Souto to proceed with his remarks.
Commissioner Souto noted he had concerns with this agreement, but supported letting the voting public decide it. He commended Mayor Gimenez for his active participation in the negotiations with the Miami Dolphins organization, and stressed the importance of ensuring County voters were fully informed on the terms of this agreement, prior to the ballot vote on May 14, 2013.
Chairwoman Sosa commended all interested parties for sacrificing many hours on this project. She noted the project�s funding was contingent upon the State Legislator�s decision to authorize the County access to the TDT funding and said the County could not proceed without the State�s approval. Chairwoman Sosa clarified that if approved, the intent was to give a percentage of the funding, represented as $7.5 million annually, to the Dolphins organization and some excess funding would be applied to tourist development. She also noted the TDT funding requested by the Dolphins could not be used for anything else, such as to build elderly housing, improve streets or sewer infrastructure. Chairwoman Sosa advised that approximately $120 million would be repaid to the County by the Dolphins, in 30 years. She referenced the questions pertaining to the amendment requesting repayment acceleration should the team be sold within five years, and advised that these terms were similar to that of a mortgage agreement.
In response to Chairwoman Sosa�s question regarding whether the team�s headquarters or offices were located in Miami-Dade County, Mayor Gimenez confirmed that the offices were located at the Stadium.
Chairwoman Sosa noted part of the Agreement established that the Dolphins organization would have to select hotels in Miami-Dade County for the four Super Bowls, the college championships and the international events; and that the different activities and events would occur in Miami-Dade County.
Mayor Gimenez clarified that the hotel selection by the Dolphins organization pertained to events that were under the Dolphins control.
In response to Chairwoman Sosa�s inquiry as to whether the Agreement included any taxes, bonds or liability to Miami-Dade County residents, Mayor Gimenez assured Chairwoman Sosa that no bonds or liability would be placed on Miami-Dade County residents. He noted protections were in place so that the County would not pay anything, if no events were held in Miami-Dade County.
Chairwoman Sosa said the Dolphins� training facility was located at Nova Southeastern University (NSU) in Broward County, and it was her understanding that the team had spent a lot of money to build the facility. She also noted Broward County had made it clear that they were not interested in the Dolphins; however, Miami-Dade County was proud of the Dolphins and their worldwide showcasing of our County. Chairwoman Sosa expressed concern with the Miami Dolphins training facility and investments remaining in Broward County, and questioned whether the facility could be relocated to Miami-Dade County in the near future.
In response to Chairwoman Sosa�s request, Mr. Dee noted the Dolphins inherited the current facility at NSU from Mr. Huizenga, the prior team owner, who moved the team from St. Thomas University to NSU in 1992. He noted the lease for this facility would expire in 2021or 2022 and the replacement value to rebuild a facility elsewhere was approximately $60 million, based upon the cost of other NFL facilities recently constructed. Mr. Dee said the opportunity to relocate the facility in the near term and how that might be accomplished economically were challenging and not part of the negotiations with the Mayor and the County Administration.
Chairwoman Sosa asked Mr. Dee if he would be willing to try and make that happen in the future. She noted it would be a selling point as the community was hurt by Broward County not participating in this deal. She pointed out that the Dolphins represented Miami-Dade County and sometimes the community took ownership of teams that made them proud. Chairwoman Sosa noted it would be prudent if the training facility could be relocated at some point in the future.
Mr. Dee noted it was difficult to forecast 10 years into the future; however, the Dolphins organization would keep an open mind about it and upon conclusion of the lease with the NSU, would be willing to meet with the County to explore the opportunity of relocating its training camp to Miami-Dade County. Mr. Dee said it would be difficult to make any commitments today (4/10) other than a good faith commitment to explore the opportunity of moving the facility at the end of the existing lease, since additional financing needed for relocation and construction of a new facility would be a challenge for the organization.
Mr. Dee said that when the corporate headquarters were moved to the Stadium in 2010, approximately 200 jobs were relocated from Broward County to Miami-Dade County, and at that time Mr. Ross said that part of his goals in owning the franchise was to put �Miami� back into the Miami Dolphins. Mr. Dee noted he hoped the Dolphins efforts to relocate the corporate headquarters and relocate those jobs to Miami were recognized by the community. He expressed that the Dolphins were fully committed to the community of Miami-Dade County and working with the County Commission.
Chairwoman Sosa said she believed the terms the Mayor negotiated in this Agreement were unprecedented for Miami-Dade County. She noted she could not state whether she would completely endorse this Agreement; however, the referendum made the difference in this Agreement. Chairwoman Sosa said that regardless of the County Commission�s vote on this proposal, they would be supportive of the community�s ultimate decision on this proposal.
Chairwoman Sosa asked Mayor Gimenez whether the team would be required to deposit $5 million immediately to cover the cost of the election, if the Agreement was approved today.
Mayor Gimenez said the team would deposit approximately $4.8 million to fund the election. He noted this amount was calculated based on his direction to the Elections Supervisor that not one cent of Miami-Dade County�s taxpayer money be used to fund this election.
Chairwoman Sosa asked what would happen to the $4.8 million deposit, if the proposed agreement and referendum ballot were approved by the Board today, but the State did not approve the proposed use of the TDT funding.
Mayor Gimenez advised that in the event the State did not approve the proposal, the County would cancel the election and retain the unused portion of the deposit, not used for the election, because it was non-refundable.
Chairwoman Sosa said she would keep an open mind about the hiring goals from CDBG areas, as some Commission districts within Miami-Dade County had little to no CDBG areas. She said she supported increasing the countywide goal and prioritizing neglected communities, and supported allowing the public to vote on this proposal.
Chairwoman Sosa requested that should these items be approved today, the County Administration ensure that the community received all facts and terms pertaining to this agreement in a simple and comprehensive way; that the Agreement be published online; that any information pertain to the agreement be published through County television channels in English, Spanish and Creole; and if possible, to hold at least two town meetings to inform the community about the details of the Agreement without any influence from the team.
Mayor Gimenez said the Administration would be glad to state the facts and answer any questions regarding the Agreement, without influencing the public�s choice, or advocating for either side.
Chairwoman Sosa expressed her support for the election being held within 45 days.
Commissioner Diaz asked whether the monies from the special tax could be used for general transportation in Miami-Dade County, to which Deputy Mayor Marquez responded that it could not. Commissioner Diaz noted some individuals were confused about this tax and the Ad Valorem tax.
Deputy Mayor Marquez explained that the monies could be used to pay debt service on bonds that were financed for publicly or privately-owned professional sports facilities; pay for operations and maintenance on these facilities, although that was not part of this Agreement; and promote and advertise tourism within the State.
Commissioner Diaz asked Mayor Gimenez to reiterate his comments regarding the funding source.
Mayor Gimenez said this was a tax on tourists that the County could not levy without State approval and would not take funds from anyone. He noted this item would give the County the right to levy that tax in the future, from which a portion could be used for the stated purposes. Mayor Gimenez said it would not impact anything else, based on the use proposed. He noted this was basically a grant and there was no levying on the taxpayers of Miami-Dade County, no funding or bond sale by the County, and no general fund obligation in the future. Mayor Gimenez said this was entirely a new stream of revenue that would not have an effect on anything else if it was approved by the State and levied by the County to be used for this purpose. He noted the existing bed tax would be increased by an additional tax.
Commissioner Diaz said he perceived this proposal as a different funding stream and that it was transparent. He commented on the Administration�s 36-hour timeframe for negotiating the agreement.
Mayor Gimenez stated this deal was not crafted in 36 hours; however, explained that the details were tweaked in 36 hours, though the parameters of the deal had been in the making for a long time.. He also noted the County agreed to some issues and not to others. He said he envisioned the outcome to be a grant as it was known from the beginning that there would be no County financing. Mayor Gimenez further noted it was a pleasure to negotiate with the Dolphins organization and noted his great respect for Mr. Dee and Mr. Ross; however, the negotiations were not easy, and both the Dolphins and the County had their interests to protect. Mayor Gimenez said they were able to bridge a divide in this agreement within the 36 hours.
Commissioner Diaz pointed out that the Dolphin had pledged monies ahead of time and would be cutting a check upon today�s (4/10) vote; however, there would be no deal if the State did not agree to it.
Mayor Gimenez noted the Dolphins deposited $4.8 million to the County last Friday (4/5) and were taking a huge risk as there was no guarantee that the State would approve the County levying an additional tax, and if not approved, meant the election would be canceled and the deposit would not be refunded.
Commissioner Diaz pointed out that although comments were made regarding insufficient time to inform the public of this deal; countless articles had been written about the deal for several months. He proffered an amendment to require the Miami-Dade Fire Department, the Miami-Dade Police Department and other municipal police from Miami-Dade to provide the majority of off-duty staffing for police and fire services at the Stadium.
Assistant County Attorney Bonzon-Keenan read into the record, the amended language to accomplish the intent of Commissioner Diaz proposed amendment. She noted it would add a new section to the Stadium Modernization Agreement entitled Section 2.1.6. (See the final amendment at the conclusion of the discussion, under Special Item No 2, Legislative File No. 130701)
Commissioner Jordan noted it was her understanding that the public safety personnel issues had been addressed by the respective parties.
Mayor Gimenez suggested Commissioner Jordan inquire whether the Dolphins representatives were agreeable to the terms of this amendment, and said he would support it.
Mr. Dee said the Dolphins organization were amenable to the terms and committed to using off-duty police staffing exclusively from Miami-Dade and/or local agencies from Miami-Dade. He pointed out that it amounted to a substantial seven-figure cost on an annual basis. Mr. Dee asked if those agencies could waive that at their discretion.
Commissioner Jordan asked whether this amendment was in line with the services established for the Miami Arena. She noted the impact on the City of Miami Gardens Police had to be considered too, as she represented this municipality, as well as the County.
Commissioner Diaz noted the City of Miami Garden�s Police Department was part of the municipality, and his intent was to include them in the workforce.
County Mayor Gimenez noted his understanding of the amendment was that additional assistance would be sought from the surrounding municipalities within Miami-Dade County, if the Miami-Dade Police Department determined it was needed. He said he was unsure whether it included the City of Miami Gardens.
Commissioner Jordan asked if the portion of the amendment to seek assistance from surrounding municipalities within MDC included Miami Gardens, Mr. Dee said yes, noting he understood that to be the intent of the amendment.
In response to Chairwoman Sosa�s question regarding whether the Sponsor accepted the amendment; Commissioner Jordan noted she would accept it, provided it was specified that the MDPD would contact Miami Gardens Police Department first, before other municipalities, since the Stadium was located within that City.
Commissioner Diaz said he had no problems with that condition.
In response to County Attorney Cuevas request for clarification regarding whether the intent of the motion was for the MDPD to seek assistance from the Miami Gardens Police Department first, if personnel was not available from the MDPD, Commissioner Diaz said yes, and added that the MDPD already hired off-duty police staffing from the City of Miami Gardens and other municipalities.
In response to Commissioner Monestime�s question whether the municipalities fell under the category of third party agencies, Commissioner Diaz clarified that if necessary, the MDPD could seek police assistance from another county or the State, depending upon the need.
Chairwoman Sosa noted usually the State was called first, before an outside county was, and that was how it should be, since other counties do not contribute to the Sun Life Stadium. She noted her position was that staffing should be drawn from MDPD first, followed by municipalities within MDC, specifically Miami Gardens first, and then from the State, before calling for assistance from other outside counties.
Commissioner Jordan asked the Board to briefly defer action on the proposed amendment until she spoke with the Mayor of the City of Miami Gardens.
Commissioner Bovo reminded the Board of the amendment he proffered earlier, which made the process more transparent for the voters, and asked that it be read into the record by Assistant County Attorney Oren Rosenthal.
Chairwoman Sosa reminded Board members that they needed to be fair and give consideration and opportunities to all departments countywide, since the City of Miami Gardens would benefit the most from these improvements in their area. She asked to hear the amendment.
Assistant County Attorney Oren Rosenthal read into record the amendment proffered by Commissioner Bovo, as it related to Special Item No 1, as follows: replace the word �additional� with the words �an increase in� in the third line of the ballot statement, on handwritten page 4, which would read ��adjusted annually for growth, from an increase in tourist room taxes.� In addition, he noted two confirming amendments were needed to keep within the 75-word ballot requirement, and were: to replace the words �private funding for majority of costs� with the words �privately funding majority of costs� In bullet 2 of the ballot statement; and the last bullet point of the ballot would read �Super Bowl awarded in May 2013�, instead of the current wording offered by the Sponsor.
In response to Commissioner Bovo�s inquiry whether the County Commission could execute this deal immediately, without the State�s approval of the increase in bed taxes, Mayor Gimenez said �No.�
Chairwoman Sosa asked Commissioner Bovo whether he intended to proffer an amendment to increase the hiring goals to 75 percent.
Commissioner Bovo noted he was satisfied with Commissioner Monestime�s proffered amendment to increase the hiring goals to 70 percent for the entire County.
In response to Chairwoman Sosa�s inquiry whether the sponsor accepted the amendment proffered by Commissioner Bovo to change the ballot language, Commissioner Jordan noted she believed she already rejected the proposed amendment, and commented on replacing the word �additional� with the word �increase�
Following a brief discussion between Commissioner Bovo and Chairwoman Sosa regarding the rules for accepting amendments, County Attorney Cuevas explained the rule, noting a proffered amendment usually took precedent; however, in practice, the Chair has acceded to the sponsor to accept the amendment as friendly. If not accepted, it is not brought forward for a vote; however, the Commissioner proffering the amendment could appeal to the Board for consideration, which must be decided by a majority vote, and if favorable, the Board could proceed to vote on the proffered amendment.
Chairwoman Sosa noted the amendment proffered by Commissioner Bovo was not accepted by the Sponsor as a friendly amendment; however, she would allow a straw vote to see if a majority of the Board members were amendable to it.
County Attorney Cuevas advised that it was within the Chair�s discretion on how to frame the ballot language to be presented to the public.
Mr. Dee added that the amendment proposed was not acceptable by the Dolphins either, particularly concerning the privately funding portion, because it was too ambiguous. He said the ballot question, as negotiated, concurred with the agreement.
A brief discussion ensured between Chairwoman Sosa and Commissioner Bovo regarding the ballot language, and was followed by Commissioner Bovo withdrawing his proposed amendment.
Mayor Gimenez said he respectfully took offense to what was said by Commissioner Bovo regarding the ballot language, noting his direction to the County Attorneys was to accurately reflect the agreement reached between the respective parties, and that the ballot to be put before the voters/residents of Miami-Dade County would have accurate language. He pointed out that had the agreement been written strictly by the Dolphins, it would have been very different.
Commissioner Heyman expressed concerned regarding the ballot language, and clarified the reason for needing the word �additional� to remain. She clarified that there is no rate increase to the cities of Miami Beach and the barrier islands, which was currently seven percent (7%), and the additional rate increase to the mainland would increase from 6 percent to 7 percent.
Chairwoman Sosa reminded Board members that Commissioner Bovo withdrew his proposed amendment.
Commissioner Jordan stated that in regard to Commissioner Diaz� proposed amendment, the City of Miami Gardens Mayor requested to exclude the use of MDPD staffing for City-sponsored events, such as Jazz in the Gardens and Carnival.
Commissioner Jordan commented on Commissioner Zapata�s concerns regarding a team owner profiting from the sale of a team, after its value was enhanced from using public funding, and the debt was conveyed to a subsequent owner, and on his recommendation that the County be allowed to participate in a share of the profits. Commissioner Jordan noted she could not recall the County ever participating in a profit sharing of an entity doing business with the County, including any Section 108 loans or CDBG monies provided, and said she believed this would set a precedent on how the County treated future contracts. Commissioner Jordan also noted she felt this approach assumed a discriminatory practice that was vastly different from past practices, and believed the recommendation was premature, until the County changed its policy concerning profit sharing of increased property values; therefore, she would not accept Commissioner Zapata�s recommended amendment.
Pursuant to Commissioner Jordan�s request for clarification regarding the difference in Commissioner Moss� request for a diversity plan as opposed to Commissioner Monestime�s request for an ethnicity breakdown, County Attorney Cuevas explained that the provisions offered by Commissioner Monestime were legally acceptable changes because they referred to CDBG eligible areas, and were not race and gender specific. He advised that it was the Board�s prerogative to request reports on any and all information pertaining to participation in this agreement/project; however, the County Commissioner could not make any decisions to withhold or accept county benefits based on race and gender.
Regarding Commissioner Moss� request for a report on diversity hiring, Commissioner Jordan asked that the report include diversity for contracts as well, with a breakdown on race and gender and that it be provided on a quarterly basis. She asked if that was an appropriate request.
County Attorney Cuevas advised that it was appropriate for the Board to request and require that particular information.
Commissioner Jordan noted, because of a past situation involving another entity whose participants in a project with the County provided post office box numbers in lieu of addresses, claiming they lived in MDC, when in fact, they resided outside the County, she wanted to ensure the new reporting process requiring street addresses in lieu of a post office boxes, was reflected in the foregoing proposed agreement.
Commissioner Jordan clarified that based on Commissioner Monestime�s proposal for20 percent of the 70 percent hiring goal come from the CDBG eligible areas, and 10 percent to come from the City of Miami Gardens as agreed to by the Dolphins, she suggested the remaining 40 percent could be used to hire locals countywide, and 30 percent of the total, could come from anywhere outside the County.
County Attorney Cuevas clarified that the mentioned requirements were applicable to the 70 percent hiring goal.
Commissioner Jordan asked the County Mayor to ensure that the staff person or employee assigned full-time to work with the NFL in coordinating workshops and disseminating information to the public, also coordinated with the community groups to ensure participation in this process.
Commissioner Jordan noted although portions of this agreement were considered an economic development grant, much of it was like a Section 108 Loan program, which would be paid back by the Dolphins. She said she wanted the public to understand that the Dolphins would pay back most of the public funds, approximately $112 million, which was unprecedented.
County Mayor Gimenez noted the amount to be received by the Dolphins depended on the revenue stream from the bonds they issued. He said the amount was estimated to be between $112 and $120 million, based on today�s (4/10) values. He pointed out that grants do not include a payback provision, but this agreement did.
Commissioner Jordan noted she requested the hiring provisions for contractors and vendors because she had received calls from various providers who feared they would not be given an opportunity to participate in this project. She noted the required increase in aspirational goals and the diversity report on a quarterly basis would ensure the goals were being met.
Regarding comments made earlier by Commissioner Suarez about community benefits, Commissioner Jordan noted the Dolphins had begun to comply with the diversity portion of the agreement by providing training courses on hospitality and job fairs, with an objective to ensure the workforce at the stadium and the providers was diverse. She also noted the Dolphins were working with the MDC Public Schools Superintendent to develop a curriculum on Sports Medicine, while the stadium was being constructed. Commissioner Jordan commended the Mayor and the Dolphins for developing a plan that the public could feel comfortable voting on; that adhered to the County�s procurement policies for CSBEs, and construction/retail inclusion, which should be part of the diversity report; and that held the Dolphins responsible for required performance bonds on all contracted work, not the County. She said she was happy for the added dollars to monitor the Small Business Development (SBD) goals.
Commissioner Jordan also noted she spoke with a representative about ensuring that the vendors in the selection process had no outstanding issues with the County. She noted that using the South Florida Work Force as a clearing house to recruit workers; increasing the aspiration goal to 70 percent; the Dolphins aspiring to hire at least 35 percent of its subcontractors from MDC; no provisions requiring the County to use General Funds, or issue any bonds or guarantee any debt for this project; and requiring the Dolphins to payback the County made this agreement both a grant and a Section 108 loan.
In addition, Commissioner Jordan said it was important to note that the Dolphins were the only NFL team that paid property taxes and paid approximately $4 million in property taxes of which the City of Miami Gardens received a portion. She also noted that if the foregoing stadium renovation deal was approved, both the County and the City would receive more in property taxes, based on an increase in the property value.
Commissioner Jordan concluded her remarks by noting the Dolphins were committed to minority and small business participation and had already begun to actively engage minority business organizations, such as the Miami Dade Chambers and the Latin Builders Association. She noted this agreement, if approved, would provide MDC a world-class, competitive facility and guaranteed MDC four more super bowls, four more BCS Bowls and 20 additional premier signature events throughout the life of the contract. She further noted that the economic impact to this community from the stadium improvements would be felt for many years to come; therefore, she respectfully requested the Board�s support of this agreement.
It was moved by Commissioner Jordan that the resolution in Special Item No 1 be approved as amended. This motion was seconded by Commissioner Diaz.
Chairwoman Sosa noted some constituents had questioned the need for approval of this item, when the State had not yet approved the levy of additional TDT taxes.
At Chairwoman Sosa�s request, Mayor Gimenez explained the reason for this agreement needing to be approved by the County Commission today. He noted approval today would enable the County to prepare for a special referendum election by May 14, 2013, when the voters would decide this deal. It would also give the County the best chance to receive an award of either Super Bowl 50 or 51 in May, provided certain conditions were met by the NFL, the Mayor noted.
In response to Commissioner Sosa�s inquiry regarding whether approval of this resolution today would enable the County to meet certain legal requirements and deadlines for calling a special election on May 14, 2013, Mayor Gimenez said that was correct; otherwise, the County�s chances of receiving a Super Bowl award could be jeopardized.
Commissioner Diaz clarified his intent in prioritizing off-duty staffing for police/fire services. He said he had no problems with allowing the City of Miami Gardens to provide staffing for its two signature events, and understood the County would have first priority in staffing the stadium events, but wanted all other events to go through the normal process used by the MDPD and MDFR for providing off-duty staffing for these services.
In response to Commissioner Diaz concerns, Assistant County Attorney Geri Bonzon-Keenan read a proposed amendment to add the following paragraph to the agreement, which read:
�Notwithstanding the foregoing, and to the extent permissible under then existing County contracts for Jazz in the Gardens and Carnival, the City of Miami Gardens shall provide off-duty services using their own forces�
Commissioner Diaz said he had no issues with the stated language, and accepted the amendment.
County Attorney Cuevas clarified for the record, the amendments to Special Item No 2 as follows:
� several technical amendments, which were agreed upon by attorneys for the parties and listed in a documented that was handed out;
� a change in the language to the Award of a Super Bowl Game instead of Super Bowl 50 and/or 51;
� increase the hiring goals to 70% of the residents from Miami-Dade County, of which 10% would reside within the limits of the City of Miami Gardens and 20% from the CDBG eligible areas; including a quarterly report on diversity hiring in contracting and in purchasing, as it related to race and gender; and
� add the language regarding off-duty staffing for police and fire services.
At Commissioner Jordan�s request, Chairwoman Sosa recognized the Mayor of the City of Miami Gardens to comment on the number of events hosted by his City.
Mayor Oliver G. Gilbert III, City of Miami Gardens, appeared before the Board, and noted the City of Miami Gardens actually hosted three events, which were: the Family Fall Festival, Carnival and Jazz in the Gardens. He said he agreed with the intent of the proposed amendment, but preferred that the City be excluded from all other events other than the three it hosted or be charged the City�s rate for off-duty security, because it cost the City more to pay for the County�s rate to secure city events.
Commissioner Diaz said he accepted the amendment to include the three events mentioned by the Mayor.
Assistant County Attorney Bonzon-Keenan read into the record, the language of the latest amendment proffered by Commissioner Diaz, which included the three events mentioned by City Mayor Gilbert, and the language for giving preference to outside police agencies when used by the County to staff an event.
On a point of personal privilege, Commissioner Barreiro read an article published on line by the New Times today, which misquoted the Commissioners and the intent of the proposed deal. He expressed concern with the mal intent of this article, and the media intentionally misinforming the citizens of this community about this deal, and said he hoped it would be corrected.
Chairwoman Sosa pointed out the conditions in the agreement were just the opposite of what the article quoted; and unless a Super Bowl game was secured, the Dolphins would not receive one cent of public funding for the improvements.
County Attorney Cuevas concurred with Chairwoman Sosa�s comments.
Commissioner Moss reiterated his support for this deal was predicated on the Dolphins securing either Super Bowl 50 or 51, not just any super bowl.
Mayor Gimenez noted the Miami Dolphins were an integral part of this community and had been for over 50 years. He said he believed the agreement as drafted was good for the County; and that the Dolphins deserved an opportunity for the residents to decide this deal. He said he hoped the County Commission would support taking it to the voters, as well.
Chairwoman Sosa noted, as she stated earlier, she believed the primary issue of today�s (4/10) discussion was for the Board to decide if they should entrust the residents of Miami-Dade County to make that decision. She said she believed the Board did trust the residents� decision, and that the residents had that right.
Hearing no further comments or questions, the Board proceeded to vote on Special Item No 2.
Following a brief discussion between members of the Commission and the County Attorney regarding proposed amendments for Special Item No 1, the Board proceeded to vote on Special Item No 1.
Mr. Dee expressed his appreciation to County Commission for their support and consideration of these Items, and noted the Dolphins commitment to educate the voters of Miami-Dade County on the agreement prior to the May 14, 2013 ballot election.
Chairwoman Sosa reiterated the importance of educating the public and providing them access to all information pertaining to this matter.
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ADJOURNMENT
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REPORT:
There being no further business to come before the Board, the meeting adjourned at 4:56 p.m.
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CONSENT AGENDA
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| 5/2/2024 |
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Agenda Key: 3332 |