Reading the article in the Herald about the new stadium, I noticed this line:

 

"If the county, city or Marlins can't find proper financing by July 1, any of the entities can kill the deal."

 

Can someone please explain to me what this means? These days, hearing someone say "OK, great, we're all set....now all we need is $500 million in financing" doesn't really instill a lot of confidence, but no one really seems all that concerned. Why is that? What was all this county and city voting about, if they still need to find financing for the stadium?

 

Article: http://www.miamiherald.com/486/story/964612-p2.html

I'm no expert, but I think it means if they can't secure the bonds, they can kill the deal. Nobody involved in the deal thinks this will be a problem.

Its a routine legal out clause but of no significance, all details are worked out already

I'm no expert, but I think it means if they can't secure the bonds, they can kill the deal. Nobody involved in the deal thinks this will be a problem.

 

 

OK...so I'm gonna really expose my ignorance and ask what it means to "secure the bonds".

 

Here's what I'm taking away from all of this: the city, county, and Marlins all agreed to put themselves on the hook for the money, but they don't actually have that kind of money lying around right now to spend. Now they need to seek investors who actually have that kind of money lying around, and because investing in a deal backed by earmarked government funds is generally a low-risk investment, they expect that finding such financing should not be difficult.

 

Is that a fair assessment?

arrange for a bond underwriter to place the bonds with investors, corporate or individual.

 

believe me you don't want to know the intricacies of bond financing.

arrange for a bond underwriter to place the bonds with investors, corporate or individual.

 

believe me you don't want to know the intricacies of bond financing.

 

 

I see....so basically what the city and county have agreed to do here is sell a bunch of bonds and use that money to pay for the stadium. Thanks.

arrange for a bond underwriter to place the bonds with investors, corporate or individual.

 

believe me you don't want to know the intricacies of bond financing.

 

 

I see....so basically what the city and county have agreed to do here is sell a bunch of bonds and use that money to pay for the stadium. Thanks.

 

Correct. They just need to make sure that the bonds do, in fact, sell on the open market. If they don't, then we have problems.

arrange for a bond underwriter to place the bonds with investors, corporate or individual.

 

believe me you don't want to know the intricacies of bond financing.

 

 

I see....so basically what the city and county have agreed to do here is sell a bunch of bonds and use that money to pay for the stadium. Thanks.

 

Correct. They just need to make sure that the bonds do, in fact, sell on the open market. If they don't, then we have problems.

 

If they can't sell those bonds, then there are bigger problems than just this stadium financing.

 

Fishin2004 - I'm not sure what the money is going toward matters as to the "safeness" of the investment, in and of itself. If an investor is looking to purchase those bonds, they are looking at the overall financial situation of the county, not what the specific money is going toward. Everything else looks good, though.

I'm sure there's any of a number of douchebags, both that matter (Sarnoff, et al.) and that don't matter (Norm Braman), that would love to see the bonds fall through.

arrange for a bond underwriter to place the bonds with investors, corporate or individual.

 

believe me you don't want to know the intricacies of bond financing.

 

 

I see....so basically what the city and county have agreed to do here is sell a bunch of bonds and use that money to pay for the stadium. Thanks.

 

Correct. They just need to make sure that the bonds do, in fact, sell on the open market. If they don't, then we have problems.

 

If they can't sell those bonds, then there are bigger problems than just this stadium financing.

 

Fishin2004 - I'm not sure what the money is going toward matters as to the "safeness" of the investment, in and of itself. If an investor is looking to purchase those bonds, they are looking at the overall financial situation of the county, not what the specific money is going toward. Everything else looks good, though.

 

Right - I suppose the reason no one is concerned is likely because these days, you'd think people who have money to invest are looking for something secure like government bonds.

what i heard doing city meeting last week is bond cannot be sold untill lawsuit of Norm Braman is taking care off by court ((appeal of lawsuit that fail))

When investors look at the investment of buying a municipal bond, they look at the revenue stream that backs those bonds. In this case, the revenue stream is the bed tax. So, the investor looks at bed tax projections and makes the risk/reward decision. However, in this case, the bonds have the added backing of the general revenue fund from Dade County. So, even if the depression causes tourists to stay home, and bed tax revenues plummet, the bonds get backed by the general fund. The taxpayer would ultimately pay off the bonds through their tax payments. The only cost to the taxpayer would be that other would be that other things, like road repair, school expansion, library upgrades, fire/police service upgrades, etc., would have to be deferred so that the Marlins can have a ballpark.

what i heard doing city meeting last week is bond cannot be sold untill lawsuit of Norm Braman is taking care off by court ((appeal of lawsuit that fail))

 

Thats not what you heard. You heard one of the commissioners saying he thinks that the lawsuit has to be cleared first. It might have to I dnno, but he definitely didn't say it HAS to clear first. I was watching and saw you posted this in the city meeting thread too.

 

Maybe we can get someone who knows for sure to clarify this.

 

I recall hearing after the Marlins won the case that they could go to the bond market, even if it was on appeal. The reasoning was that the odds of an appeal overturning the Judge's decision were so slim, they'd still be able to get the financing. That could be wrong, but I do remember that being brought up.

arrange for a bond underwriter to place the bonds with investors, corporate or individual.

 

believe me you don't want to know the intricacies of bond financing.

 

 

I see....so basically what the city and county have agreed to do here is sell a bunch of bonds and use that money to pay for the stadium. Thanks.

 

Correct. They just need to make sure that the bonds do, in fact, sell on the open market. If they don't, then we have problems.

 

If they can't sell those bonds, then there are bigger problems than just this stadium financing.

This. If those bonds don't sell, I don't want a stadium.

Also, remember that the appeals court judge has to agree on hearing the case. If any appeals court feels there is no need to hear the case, which I think will happen, there will be no appeal. Remember, the court case that the lady judge (I forgot her name and I feel bad calling her this because I like how she dealt with the case) was waiting on during the Norman Braman trials was at a higher level. Therefore, I think a judge is going to look at those same cases and decide whether it is worth it to hear Norman Braman's case. I think what any judge would do is look at the cases and think it's a waste of time since the case was already decided at a lower course and a similar one was decided in upper courts. I don't think Braman has a chance. And as far as the bonds, these bonds are very attractive with the bed taxes backing them. I mean, it's Miami for Christ's sake!

And as far as the bonds, these bonds are very attractive with the bed taxes backing them. I mean, it's Miami for Christ's sake!

Exactly!

And just in case the bed tax takes a depression hit, the general fund is a key secondary backer. That's normal for municipal bond offerings under any time or place.

It would be highly unusual if they needed to eventually tap the general fund....but these are unusual times. But hey...if it turns out that your call to 911 gets put on hold 7 years from now, it serves you right. You should be at the game in reasonably priced seats where you'd get medical attention anyway.

I'm sure there's any of a number of douchebags, both that matter (Sarnoff, et al.) and that don't matter (Norm Braman), that would love to see the bonds fall through.

I would be one of those douche bags.

^^ Well, at least you already know and admit that you are a douche bag then.

Also, remember that the appeals court judge has to agree on hearing the case. If any appeals court feels there is no need to hear the case, which I think will happen, there will be no appeal. Remember, the court case that the lady judge (I forgot her name and I feel bad calling her this because I like how she dealt with the case) was waiting on during the Norman Braman trials was at a higher level. Therefore, I think a judge is going to look at those same cases and decide whether it is worth it to hear Norman Braman's case. I think what any judge would do is look at the cases and think it's a waste of time since the case was already decided at a lower course and a similar one was decided in upper courts. I don't think Braman has a chance. And as far as the bonds, these bonds are very attractive with the bed taxes backing them. I mean, it's Miami for Christ's sake!

i hread on news that going to third appeal court

Also, remember that the appeals court judge has to agree on hearing the case. If any appeals court feels there is no need to hear the case, which I think will happen, there will be no appeal. Remember, the court case that the lady judge (I forgot her name and I feel bad calling her this because I like how she dealt with the case) was waiting on during the Norman Braman trials was at a higher level. Therefore, I think a judge is going to look at those same cases and decide whether it is worth it to hear Norman Braman's case. I think what any judge would do is look at the cases and think it's a waste of time since the case was already decided at a lower course and a similar one was decided in upper courts. I don't think Braman has a chance. And as far as the bonds, these bonds are very attractive with the bed taxes backing them. I mean, it's Miami for Christ's sake!

i hread on news that going to third appeal court

 

 

If that's true that's not good for Braman. The court system is realizing what a waste of time this is