Miami-Dade Legislative Item
File Number: 033058
   

File Number: 033058 File Type: Resolution Status: Adopted
Version: 0 Reference: R-1182-03 Control:
File Name: BALLPARK FOR FLORIDA MARLINS Introduced: 11/4/2003
Requester: NONE Cost: Final Action: 11/4/2003
Agenda Date: 11/4/2003 Agenda Item Number: 10A5
Notes: THIS IS FINAL VERSION AS ADOPTED. (also see 032971) Title: RESOLUTION PLEDGING AVAILABLE CONVENTION DEVELOPMENT TAX AND PROFESSIONAL SPORTS FRANCHISE FACILITY TAX PROCEEDS FOR THE DEVELOPMENT AND CONSTRUCTION OF BALLPARK OF FLORIDA MARLINS, L.P.; APPROVING CERTAIN CONDITIONS AND AUTHORIZING COUNTY MANAGER TO NEGOTIATE ANY AND ALL RELATED AGREEMENTS SUBJECT TO FINAL BOARD APPROVAL
Indexes: CONVENTION DEVELOPMENT TAX REVENUES
  FLORIDA MARLINS
Sponsors: Dr. Barbara Carey-Shuler, Prime Sponsor
  Jose "Pepe" Diaz, Co-Sponsor
  Sally A. Heyman, Co-Sponsor
  Dennis C. Moss, Co-Sponsor
  Dorrin D. Rolle, Co-Sponsor
  Rebeca Sosa, Co-Sponsor
  Sen. Javier D. Souto, Co-Sponsor
Sunset Provision: No Effective Date: Expiration Date:
Registered Lobbyist: None Listed


Legislative History

Acting Body Date Agenda Item Action Sent To Due Date Returned Pass/Fail

Board of County Commissioners 11/4/2003 10A5 AMENDED Adopted as amended P
REPORT: Chairwoman Carey-Shuler pointed out the inter-local agreement concerning Convention Development Taxes for a baseball stadium between the County and the City of Miami Beach would lapse on December 1, 2003. She emphasized that the County provided the City of Miami Beach $15 million of Convention Development Taxes up front and increased the City of Miami Beach’s yearly Convention Development Tax (CDT) payments to $4.5 million for 30 years. Commissioner Sosa pointed out the Florida Marlins were losing money at Pro Player Stadium. She noted the overwhelming constituent support in her district for the stadium, and that the only negative feedback was from people who did not understand the limitations on the use of the CDT. Commissioner Sosa noted the County Manager, the City of Miami, and the Marlins owners needed to develop a professional plan that addressed the following issues: stadium ownership; dedicated funds for construction costs; stadium naming rights; ticket sales rights; parking revenue rights; concessions rights; scoreboard advertising rights; and television and radio revenue. Commissioner Sosa pointed out the Marlins did not currently benefit from many of the listed rights, and that this proposed stadium would bring resources and revenue to keep the Marlins in South Florida. It was moved by commissioner Sosa that this proposed resolution be adopted with an instruction to the County Manager to proceed with developing a professional business oriented plan. This motion was seconded by Commissioner Diaz. Chairwoman Carey-Shuler pointed out this proposed resolution was the first step in a long process, and that it was just a pledge toward funding the stadium. County Manager Burgess emphasized this proposed resolution was one step in the process to determine whether the parties involved could put together a financial plan for a stadium in Miami-Dade County. He clarified that the County was pledging $35 million in CDT funds and $38 million in Professional Sports Franchise Facilities Tax (PST); and that the PST funds were not involved in any interlocal agreement, and they specifically supported debt service for this type of resolution. County Manager Burgess noted the Marlins would contribute $137 million in revenue to support the stadium from team and stadium generated revenues, which was no different than any other stadium deal across the United States, except the Marlins would contribute more revenue than other teams. He pointed out a funding gap existed and the location was not selected. County Manager Burgess explained the Marlins would assume responsibility for the construction and the cost overruns for a $325 million retractable roof stadium. He pointed out that pursuant to this proposed resolution, the deadline for submitting a financing plan was March 12, 2004. County Manager Burgess explained an amendment to the interlocal agreement with Miami Beach concerning CDT funds negotiated a couple of years ago. He noted one of the driving forces for the negotiations was to recognize the needs of Miami Beach and to have the City of Miami Beach agree to not oppose the use of CDT funds to support the Marlins stadium. He clarified the City of Miami Beach agreed to a stream of $4.5 million a year for 40 years and $15 million of cash, regardless of any stadium deal, and those dollars leveraged about $90 million that could be used to fund expansion of a convention center. County Manager Burgess pointed out the City of Miami Beach wanted flexibility to use CDT funds for the convention center or the convention center area. He emphasized that the amendment to the interlocal agreement provided significant infusion of funds to redevelop the convention center. He noted part of the amendment stated if the County did not pledge CDT funds to the stadium by December 1, 2003, then the County would provide an additional $50 million of CDT funds for the next project in line with the flexibility to use those funds on the convention center or a convention center related project. County Manager Burgess noted the County, if this proposed resolution was adopted, had honored the interlocal agreement. He reiterated he was not requesting an extension; however, if a financing plan was not in place by March 15, 2004, the County Commission could take the position that the commitment to Miami Beach would start after March 15, 2004. County Manager Burgess pointed out a funding gap of $115 million existed and would require creativity and some private partnerships to close the gap. He clarified that no one was suggesting that another governmental entity help close the gap; however, the Marlins had discussed with the Florida State Legislature that some sales tax exemption could be provided, which would have a $30 to $35 million impact. County Manager Burgess stated, for the record, he would not recommend the County use discretionary funds that could be used for operating costs. The meeting was opened for public input. Hearing no one wishing to appear, Chairwoman Carey-Shuler closed the meeting for public input. Commissioner Barreiro emphasized the importance of the County Administration working diligently to provide a complete plan to the County Commission. He questioned whether the County Manager considered a CDT reserve, in addition to the $25 million contingency reserve, for the Performing Art Center when he identified the $35 million for the ballpark. County Manager Burgess noted he left a cushion between the County’s current CDT commitments and the proposed pledge to the stadium. Commissioner Barreiro emphasized the impact the City of Miami Beach had on generating CDT revenues, and the impact of conventions on transportation and infrastructure on Miami Beach. He asked that this proposed resolution be amended to instruct the County Manager to put a plan for the stadium together with a site location, with full funding, and all other necessary issues; to simultaneously consider amending the interlocal agreement to provide that Miami Beach would get $50 million of CDT reserves at the end of the agreement. He emphasized that a convention center was a bigger economic engine than a ballpark. Commissioner Barreiro pointed out he distributed a diagram that indicated how the City of Miami Beach intended to use the CDT funds for the convention center area. He clarified that he recommended the County Manager take into consideration the $50 million of CDT funds for the City of Miami Beach, while preparing the financing plan and come back to the Commission with the monies also for the convention center, and that the Miami Beach Convention Center remain the next project in line to receive funds. In response to Commissioner Martinez’s question whether the $78 million pledge would remain in effect if the Commission did not like the financing plan, County Manager Burgess clarified this proposed resolution was an absolute pledge conditioned on a financing plan adopted by March 15, 2004, and if no plan was adopted, all that preceded was null and void. Responding to Commissioner Martinez’s question concerning the benefit of the stadium to County residents, County Manager Burgess noted the following possible benefits: • the Marlins were committed to youth sports; • the stadium would be pedestrian friendly with community center activities that the public could use for different community events; • the stadium would be an investment in the urban core to bring people downtown and encourage them to live closer to downtown and encourage retail activity downtown; and • the investment in a stadium, combined with others projects, could make an impact on the vitality of the urban core that would benefit Miami Beach and the entire County. County Manager Burgess further noted the County would work with the Marlins to make certain commitments to the community in the stadium financial plan, and pointed out the Marlins had agreed to change its name. Following further discussion between Commissioner Martinez and County Manager Burgess concerning County commitments of CDT and the projected growth of the CDT, Commissioner Martinez expressed concern that the City of Miami did not cover its debt service commitment with Parrot Jungle and that the County would end up bearing the burden for the City of Miami’s portion of funding for the stadium, also. Discussion ensued between Commissioner Heyman and County Manager Burgess regarding the County returning $50 million of CDT funding to the City of Miami Beach if a financing plan was not secured by March 15, 2004. It was moved by Commissioner Heyman that this proposed resolution be amended to include clarifying language that the City of Miami Beach would be the top priority for the CDT funds if an agreement was not reached by March 15, 2004. Assistant County Attorney Geri Bonzon-Keenan recommended the following language be added as Section 4: “In the event the March 15th deadline is not met, the terms of Amendment 1 to the Interlocal Agreement between the County and the City of Miami Beach, including the priority the Miami Beach Convention Center had to $50 million in CDT proceeds, shall be effective as if CDT revenues were not pledged to a baseball stadium on December 1, 2003.” She clarified that the interlocal agreement read in such a way that CDT receipts were only available after all the other priorities had been met. County Manager Burgess pointed out the commission could be more specific and require that the CDT funds be used for the expansion of the convention center. Commissioner Heyman spoke in support of County Manager Burgess’ suggestion and clarified those funds should be used for the convention center or expansion of the convention center, and not for salaries and operations costs. She asked that this proposed resolution be amended in such a way. In response to Commissioner Sosa’s request that this proposed resolution be amended to dedicate the CDT money to improvements of the Miami Beach Convention Center if the deal on the table did not occur, County Manager Burgess suggested the following language to achieve Commissioner Sosa’s intent: “in the event the parties to the negotiations mutually agree the negotiations are moving forward and there is a need to move the date, and all parties agree, then baseball would stay in front of any commitment to the convention center, if all parties agree that more time is needed for the negotiations.” Following further discussion concerning the deadline for a stadium agreement and CDT funds from this proposed resolution being rededicated to the Miami Beach Convention Center, Commissioner Heyman noted her original motion to add as Section 4: “In the event the March 15th deadline is not met, the terms of Amendment 1 to the Interlocal Agreement between the County and the City of Miami Beach, including the priority the Miami Beach Convention Center had to $50 million in CDT proceeds, shall be effective as if CDT revenues were not pledged to a baseball stadium on December 1, 2003” was still on the floor. Commissioner Ferguson spoke in opposition to using CDT funds on the stadium. Commissioner Sorenson suggested that baseball fans be considered as potential investors to fund the $115 million gap. She pointed out State funds could be used for schools, healthcare, and the Department of Children and Families, and the use of State funds for the stadium would negatively impact the public. In response to Commissioner Morales’ question concerning whether the language in this proposed resolution constituted a pledge by the County to use CDT funds, Assistant County Attorney Bonzon-Keenan advised the County Attorney’s Office felt the language satisfied the definition of a pledge in the interlocal agreement. She clarified that this proposed resolution was not the issuance of the debt; it was the pledging of PST revenues and CDT revenues to the Marlins for the use on construction of a baseball stadium. Responding to Commissioner Morales’ inquiry concerning the Commission’s legal right to undo this proposed resolution in January 2004, Assistant County Attorney Gerald Heffernan advised that this proposed resolution had conditions on the pledged funds, and the County would be obligated to honor its pledge if the conditions were met. Commissioner Morales expressed concern regarding this proposed resolution being no different than the proposal presented two years ago. First Assistant County Attorney Murray Greenberg advised that this proposed resolution satisfied the requirement for the County to commit CDT funds before December 1, 2003, and it was acceptable to the Marlins; and that any future agreement would come before the County Commission. He emphasized that the County Attorney’s Office was satisfied that this proposed resolution satisfied the County’s contractual obligation under the interlocal agreement with the City of Miami Beach. Commissioner Morales pointed out the stadium could generate revenue if it was part of a community planning effort that included inter-residential development and commercial retail development. He expressed concern that the County Commission was being asked to leap into a void without extensive study, without a single plan of how to achieve measurable goals in the community, and with huge funding gaps. In response to Commissioner Moss’ inquiry concerning the $325 million projected cost of the stadium, Mr. David Sampson, Florida Marlins Representative, noted the Marlins committed to cover all cost overruns of the new Miami Marlins Ballpark if they were in charge of construction. He guaranteed that if the Marlins were not in charge they would not cover the cost overruns. He pledged to work as hard as possible to ensure that a full deal was presented that made sense for the Marlins, for baseball, and for the community. Mr. Sampson noted he would not support a funding plan that anyone could accuse the Marlins of choosing baseball over social issues. Commissioner Sorenson noted she was informed that the City of Miami would consider a referendum to impose a tax to fund the stadium. She spoke in opposition to the City of Miami imposing a tax and pointed out that such a referendum would have a negative impact on the County. In response to Commissioner Seijas’ inquiry concerning how he arrived at the $115 million figure for the funding gap, County Manager Burgess explained that the stadium would cost $325 million, the Marlins would contribute $137 million; the County would contribute $78 million; and the difference was $110 million. He noted he would be more supportive of Commissioner Barreiro’s proposed amendment if it provided for the County to add $50 million for the City of Miami Beach to the financing plan, if the way the funding gap was closed made an additional $50 million possible. Commissioner Barreiro clarified that his intent was to keep the convention center whole whether it was $50 million or $5 million. Following further discussion concerning the $50 million for the City of Miami Beach and the provisions in the interlocal agreement amendment, Commissioner Sosa asked County Manager Burgess to include profit sharing as a negotiation point. Hearing no other questions or comments, the Commission proceeded to vote on this proposed resolution as amended to add the following language as Section 4: “In the event the March 15th deadline is not met, the terms of Amendment 1 to the Interlocal Agreement between the County and the City of Miami Beach, including the priority the Miami Beach Convention Center had to $50 million in CDT proceeds, shall be effective as if CDT revenues were not pledged to a baseball stadium on December 1, 2003, provided, however, such $50 million shall be expended only for capital construction cost for the Convention Center Complex Area projects.”

County Attorney 11/4/2003 Assigned Gerald T. Heffernan 11/4/2003

Legislative Text


TITLE
RESOLUTION PLEDGING AVAILABLE CONVENTION DEVELOPMENT TAX AND PROFESSIONAL SPORTS FRANCHISE FACILITY TAX PROCEEDS FOR THE DEVELOPMENT AND CONSTRUCTION OF BALLPARK OF FLORIDA MARLINS, L.P.; APPROVING CERTAIN CONDITIONS AND AUTHORIZING COUNTY MANAGER TO NEGOTIATE ANY AND ALL RELATED AGREEMENTS SUBJECT TO FINAL BOARD APPROVAL

BODY
WHEREAS, this Board desires to provide financial support for the development and construction of a ballpark for the Florida Marlins, L.P. at a cost that is not anticipated to exceed, excluding the cost of land, $325 million ("Ballpark"),
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that:
Section 1 The County agrees to pledge Convention Development Tax proceeds ("CDT") in an amount sufficient to secure $35 million of indebtedness and Professional Sports Franchise Facility Tax proceeds ("PST") in an amount sufficient to secure $38 million of indebtedness for the development and construction of the Ballpark for the Florida Marlins, L.P. (Team) if (i) the Team will contribute $137 million towards the development and construction of the Ballpark subject to the Team receiving financing upon reasonable terms; (ii) prior to March 15, 2004, a financing plan shall be finalized for the Ballpark; and (iii) the Team will be responsible for any and all Ballpark construction cost overruns subject to having control of the Ballpark design and construction.
Section 2 In the event the conditions set forth in Section 1 are not met, the pledge will be null and void.

Section 3 The Board hereby authorizes the County Manager to negotiate all required agreements with the Team and other parties for subsequent Board approval.
Section 4 In the event the March 15th deadline is not met, the terms of Amendment 1 to the Interlocal Agreement between the County and the City of Miami Beach, including the priority the Miami Beach Convention Center had to $50 million in CDT proceeds, shall be effective as if CDT revenues were not pledged to a baseball stadium on December 1, 2003, provided, however, such $50 million shall be expended only for capital construction cost for the Convention Center Complex Area projects.



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