The Devil Is In The Details The Marlins Stadium Deal Broken Down Piecebypiece
Written by Miami Today on February 12, 2009
The contracts indicate County Manager George Burgess is to sign on behalf of Miami-Dade and City Manager Pete Hernandez on behalf of Miami.
The governments must advance some money to reimburse the stadium developer for project-related spending before they issue bonds. Later, they’re to pay themselves back with bond proceeds.
If the parties choose to pull out before June 30, they face exposure from money already spent: up to $10 million for the team-affiliate stadium developer, up to $7 million for the county and up to $3.5 million for the city.
If all remain in the deal July 1, the county must meet a $382.5 million obligation whether or not it’s possible to bond. Non ad valorem general revenue is fair game. The team is set to reimburse $35 million of that in annual rent payments.
The county and city are to get part of the proceeds if the owners sell more than 50% of the team within seven years after the deal is approved — unless the controlling owner dies, in which case the county and city get nothing.
The county plans to buy construction materials and equipment using sales tax exemptions. If the exemptions aren’t granted and project cost spikes as a result, the county is on the hook to cover up to $4.4 million.
The county and city are to pay up to $1.75 million each to seek environmentally friendly certification. The team is to contribute $1 million toward the certification and cover costs above the governments’ $3.5 million cap.
The deal authorizes county and city commissioners to extend or renew the time for payment during construction and to accept partial payments or partial performance of pledged duties from the team affiliates.
No title insurance required for the stadium. If the team and the county agree they need it, the county is to procure the policy. Team affiliates pick up the tab up to $10,000. More than that and team affiliates and the county split the bill.
The city gets its Orange Bowl land back if the operating deal falls through and the county within three years doesn’t get another professional sports team to use the stadium.
Miami-Dade and Miami are to waive regular permitting fees for the stadium developer. The city won’t impose its usual impact fees — it will charge only to the extent the new stadium’s impact exceeds the old Orange Bowl’s.
Team affiliates are to cover stadium construction cost overruns, but the governments are responsible for project cost overruns they cause, such as failing to meet deadlines, permitting delays, and delays they cause in building the garage or developing the rest of the former Orange Bowl site.
The stadium developer, an affiliate of the team, is responsible for managing public infrastructure work, as the plan is to give its selected stadium contractor the job. The developer must report progress monthly.
The county and city split infrastructure costs: about $24 million, about $4.7 million of which is contingency money. Government representatives have to give the OK before the stadium developer touches the emergency funds.
The stadium developer has the right to ask the governments for proof they have the money to cover infrastructure costs. The agreement does not require the stadium developer or team to share financials.
The stadium developer is on the hook for public infrastructure cost overruns caused by negligent performance or scheduling delays. The county and city would split infrastructure cost overruns otherwise.
The stadium developer is responsible for unforeseen site conditions in fulfilling its obligations. The city and county take responsibility for unforeseen site conditions related to public infrastructure work.
The stadium operator, a team affiliate, is to pay for property insurance on an all-risk basis with overall coverage limits on a replacement-cost basis and sub-limits "in amounts that are customary."
The city at its cost is to provide 5,500 to 6,000 parking spaces. Of those, 250 belong to the operator, team and employees.
There are to be four garages and six surface lots, and the city has the right to use lots off site so long as they’re "of comparable distance to the baseball stadium."
Parking must be completed 30 days before the stadium.
The contract projects parking costs at $94 million, though consultants this summer projected about 6,000 spaces could cost near $150 million.
The stadium operator is to pay the city per space per game, beginning at $10.03 per spot in year one and reaching $12.53 in years 31-35.
If the team plays fewer than 81 home games at the stadium in a year as the result of a strike, the city also gets parking revenues from other events held there to make up for money lost.
The stadium operator gets exclusive right to sell all signage and advertising rights in the parking facilities and would pay the city 50% of all net revenues.
The city pays for all operating costs at the parking facilities other than labor added during events and whatever it costs to secure the 250 spots reserved for the team and employees.
If the city chooses to seek bidders to operate the garage, the stadium operator is to participate in the selection, an addition to last year’s preliminary stadium agreement.
If money is left after the county and city spend investment earnings to fulfill their stadium obligations, it can be used for any other (legal) outside purpose.
The stadium project is to include a public plaza built by the developer — an addition to the deal proposed last year.
During games and events, county police are to provide off-duty staffing within the stadium site. City police are to provide off-duty staffing at other areas of the site, such as parking facilities, and in surrounding neighborhoods — all at the stadium operator’s expense. The city still has authority to respond to emergencies or investigate crimes on the premises.
The county and city are to jointly provide fire rescue off-duty service at the stadium at the stadium operator’s expense.
Last year’s preliminary agreement gave the county and city eight days each for events. The new deal calls for unlimited use during the off season and four events to each government during baseball season.
For the first 10 for-profit events each year, the stadium operator is to retain revenues. After that, the team splits the profits with the county, whose portion must go into the stadium’s capital reserve fund.
Each season, one standard suite is to be given free for public or charity use. The county and city each control it for 40 games and share it during the season opener. The stadium operator will provide food and beverages free for youth charities but otherwise won’t cover those and other variable costs associated with using the suite.