Bank's demand forces extra vote on stadium

BY MATTHEW HAGGMAN

mhaggman@MiamiHerald.com

 

Miami-Dade County Manager George Burgess told commissioners Monday that he needs more time -- and another vote by the commission -- before funding for a new Florida Marlins ballpark in Little Havana is finalized.

Burgess wrote county commissioners that the changes were purely technical -- linked to a demand by Wachovia Bank to be paid fees up front for a letter of credit -- and don't change the cost structure for building the new stadium.

 

But the financing wrinkle instantly raised questions in some quarters. The reason: The alteration will require commissioners to vote to amend a provision of the long-argued stadium deal and to change its termination date -- after which neither the county, city of Miami nor Florida Marlins can back out -- from July 1 to July 15.

 

''I thought we were done voting on the stadium,'' said Miami-Dade Commissioner Joe Martinez, who voted against the deal in March.

 

Though commissioners will revisit this issue, they will not take up the larger ballpark agreement, county officials said. That is already approved.

 

The move comes in the same week county officials are set to sell $405 million in bonds to both refinance previous county debt obligations and raise money toward building the $515 million stadium.

 

Successfully selling the bonds -- which are backed by the promise of repayment from tourist taxes and set for sale Wednesday and Thursday -- is viewed as the last hurdle before construction begins on the Miami ballpark.

 

Successive Marlins owners have sought a ballpark for more than a decade.

 

In March Miami-Dade and Miami commissioners approved plans for the publicly funded baseball stadium. Construction is slated for this summer so the proposed 37,000-seat ballpark can be ready for opening day in 2012.

 

''Our confidence in the project and its underlying funding plan has not changed,'' wrote Burgess.

 

In his memo, Burgess asked commissioners to amend the bond ordinance to comply with a requirement by banking giant Wachovia, which is providing a $100 million letter of credit for a portion of the bonds. Namely, that the ordinance be redone so Wachovia is paid its fees first before money goes to other sources like debt service or reserve payments.

 

Under the current ordinance, according to Miami-Dade Finance Director Carter Hammer, administrative expenses, such as letter of credit fees, are last in line after other expenses are paid.

 

'In order to satisfy requirements of the letter of credit provider (Wachovia), `Administrative Expenses' must be placed first in the . . . flow of funds,'' Hammer wrote in an e-mail to questions from The Miami Herald.

 

That proposed change is set to go before commissioners Friday. But a public hearing and second vote is required, which would not happen until June 30. If approved, it would take effect 10 days later.

 

That delay prompted Burgess to propose pushing the termination date on the deal to July 15. Burgess wrote that the city and Marlins have been made aware of the proposed adjustment and verbally agreed to a later date.

 

Burgess previously assured commissioners that everything would be in order for a July 1 deadline.

 

Miami has scheduled a special session Thursday to vote on the later date.

 

For the Marlins part, team spokesman P.J. Loyello said, ''We are preparing to get on the site July 1 and have an official groundbreaking July 18.'' The team is contributing $120 million toward construction and will repay a $35 million county loan.

 

Under the financing deal, the county plans to seek another $50 million in general obligation bonds in the third quarter this year.

 

The stadium deal is largely financed by bonds that will be repaid by tourist taxes. Critics say assumptions for tourist tax revenues are overly optimistic and worry that the county will ultimately have to dig into the general fund to plug the gap. County leaders have pledged revenues other than property taxes to fill any shortfalls, which resulted in Wall Street credit ratings agencies taking a more favorable view of the bonds.

 

The fact the county is now moving at the last minute to comply with a requirement that Wachovia be paid its fees first is winning a skeptical eye from some.

 

''Wachovia is sufficiently worried that they want to be paid first,'' said Commissioner Carlos Gimenez, a vocal critic of the ballpark deal. ``The financial markets are telling us something.''

 

Miami Herald reporter Charles Rabin contributed to this report.

 

 

http://www.miamiherald.com/460/story/1098924.html

 

I couldn't tell from this article. but will the bond sale still be this week? I think this is only a technicality, but I'm sure ballpark opponents will try to make this a problem.

Bank's demand forces extra vote on stadium

BY MATTHEW HAGGMAN

mhaggman@MiamiHerald.com

 

Miami-Dade County Manager George Burgess told commissioners Monday that he needs more time -- and another vote by the commission -- before funding for a new Florida Marlins ballpark in Little Havana is finalized.

Burgess wrote county commissioners that the changes were purely technical -- linked to a demand by Wachovia Bank to be paid fees up front for a letter of credit -- and don't change the cost structure for building the new stadium.

 

But the financing wrinkle instantly raised questions in some quarters. The reason: The alteration will require commissioners to vote to amend a provision of the long-argued stadium deal and to change its termination date -- after which neither the county, city of Miami nor Florida Marlins can back out -- from July 1 to July 15.

 

''I thought we were done voting on the stadium,'' said Miami-Dade Commissioner Joe Martinez, who voted against the deal in March.

 

Though commissioners will revisit this issue, they will not take up the larger ballpark agreement, county officials said. That is already approved.

 

The move comes in the same week county officials are set to sell $405 million in bonds to both refinance previous county debt obligations and raise money toward building the $515 million stadium.

 

Successfully selling the bonds -- which are backed by the promise of repayment from tourist taxes and set for sale Wednesday and Thursday -- is viewed as the last hurdle before construction begins on the Miami ballpark.

 

Successive Marlins owners have sought a ballpark for more than a decade.

 

In March Miami-Dade and Miami commissioners approved plans for the publicly funded baseball stadium. Construction is slated for this summer so the proposed 37,000-seat ballpark can be ready for opening day in 2012.

 

''Our confidence in the project and its underlying funding plan has not changed,'' wrote Burgess.

 

In his memo, Burgess asked commissioners to amend the bond ordinance to comply with a requirement by banking giant Wachovia, which is providing a $100 million letter of credit for a portion of the bonds. Namely, that the ordinance be redone so Wachovia is paid its fees first before money goes to other sources like debt service or reserve payments.

 

Under the current ordinance, according to Miami-Dade Finance Director Carter Hammer, administrative expenses, such as letter of credit fees, are last in line after other expenses are paid.

 

'In order to satisfy requirements of the letter of credit provider (Wachovia), `Administrative Expenses' must be placed first in the . . . flow of funds,'' Hammer wrote in an e-mail to questions from The Miami Herald.

 

That proposed change is set to go before commissioners Friday. But a public hearing and second vote is required, which would not happen until June 30. If approved, it would take effect 10 days later.

 

That delay prompted Burgess to propose pushing the termination date on the deal to July 15. Burgess wrote that the city and Marlins have been made aware of the proposed adjustment and verbally agreed to a later date.

 

Burgess previously assured commissioners that everything would be in order for a July 1 deadline.

 

Miami has scheduled a special session Thursday to vote on the later date.

 

For the Marlins part, team spokesman P.J. Loyello said, ''We are preparing to get on the site July 1 and have an official groundbreaking July 18.'' The team is contributing $120 million toward construction and will repay a $35 million county loan.

 

Under the financing deal, the county plans to seek another $50 million in general obligation bonds in the third quarter this year.

 

The stadium deal is largely financed by bonds that will be repaid by tourist taxes. Critics say assumptions for tourist tax revenues are overly optimistic and worry that the county will ultimately have to dig into the general fund to plug the gap. County leaders have pledged revenues other than property taxes to fill any shortfalls, which resulted in Wall Street credit ratings agencies taking a more favorable view of the bonds.

 

The fact the county is now moving at the last minute to comply with a requirement that Wachovia be paid its fees first is winning a skeptical eye from some.

 

''Wachovia is sufficiently worried that they want to be paid first,'' said Commissioner Carlos Gimenez, a vocal critic of the ballpark deal. ``The financial markets are telling us something.''

 

Miami Herald reporter Charles Rabin contributed to this report.

 

 

http://www.miamihera...ry/1098924.html

 

I couldn't tell from this article. but will the bond sale still be this week? I think this is only a technicality, but I'm sure ballpark opponents will try to make this a problem.

 

another vote??? im really sick of this already.

 

well, at least it looks like the bonds are sold.

Bank's demand forces extra vote on stadium

BY MATTHEW HAGGMAN

mhaggman@MiamiHerald.com

 

Miami-Dade County Manager George Burgess told commissioners Monday that he needs more time -- and another vote by the commission -- before funding for a new Florida Marlins ballpark in Little Havana is finalized.

Burgess wrote county commissioners that the changes were purely technical -- linked to a demand by Wachovia Bank to be paid fees up front for a letter of credit -- and don't change the cost structure for building the new stadium.

 

But the financing wrinkle instantly raised questions in some quarters. The reason: The alteration will require commissioners to vote to amend a provision of the long-argued stadium deal and to change its termination date -- after which neither the county, city of Miami nor Florida Marlins can back out -- from July 1 to July 15.

 

''I thought we were done voting on the stadium,'' said Miami-Dade Commissioner Joe Martinez, who voted against the deal in March.

 

Though commissioners will revisit this issue, they will not take up the larger ballpark agreement, county officials said. That is already approved.

 

The move comes in the same week county officials are set to sell $405 million in bonds to both refinance previous county debt obligations and raise money toward building the $515 million stadium.

 

Successfully selling the bonds -- which are backed by the promise of repayment from tourist taxes and set for sale Wednesday and Thursday -- is viewed as the last hurdle before construction begins on the Miami ballpark.

 

Successive Marlins owners have sought a ballpark for more than a decade.

 

In March Miami-Dade and Miami commissioners approved plans for the publicly funded baseball stadium. Construction is slated for this summer so the proposed 37,000-seat ballpark can be ready for opening day in 2012.

 

''Our confidence in the project and its underlying funding plan has not changed,'' wrote Burgess.

 

In his memo, Burgess asked commissioners to amend the bond ordinance to comply with a requirement by banking giant Wachovia, which is providing a $100 million letter of credit for a portion of the bonds. Namely, that the ordinance be redone so Wachovia is paid its fees first before money goes to other sources like debt service or reserve payments.

 

Under the current ordinance, according to Miami-Dade Finance Director Carter Hammer, administrative expenses, such as letter of credit fees, are last in line after other expenses are paid.

 

'In order to satisfy requirements of the letter of credit provider (Wachovia), `Administrative Expenses' must be placed first in the . . . flow of funds,'' Hammer wrote in an e-mail to questions from The Miami Herald.

 

That proposed change is set to go before commissioners Friday. But a public hearing and second vote is required, which would not happen until June 30. If approved, it would take effect 10 days later.

 

That delay prompted Burgess to propose pushing the termination date on the deal to July 15. Burgess wrote that the city and Marlins have been made aware of the proposed adjustment and verbally agreed to a later date.

 

Burgess previously assured commissioners that everything would be in order for a July 1 deadline.

 

Miami has scheduled a special session Thursday to vote on the later date.

 

For the Marlins part, team spokesman P.J. Loyello said, ''We are preparing to get on the site July 1 and have an official groundbreaking July 18.'' The team is contributing $120 million toward construction and will repay a $35 million county loan.

 

Under the financing deal, the county plans to seek another $50 million in general obligation bonds in the third quarter this year.

 

The stadium deal is largely financed by bonds that will be repaid by tourist taxes. Critics say assumptions for tourist tax revenues are overly optimistic and worry that the county will ultimately have to dig into the general fund to plug the gap. County leaders have pledged revenues other than property taxes to fill any shortfalls, which resulted in Wall Street credit ratings agencies taking a more favorable view of the bonds.

 

The fact the county is now moving at the last minute to comply with a requirement that Wachovia be paid its fees first is winning a skeptical eye from some.

 

''Wachovia is sufficiently worried that they want to be paid first,'' said Commissioner Carlos Gimenez, a vocal critic of the ballpark deal. ``The financial markets are telling us something.''

 

Miami Herald reporter Charles Rabin contributed to this report.

 

 

http://www.miamiherald.com/460/story/1098924.html

 

I couldn't tell from this article. but will the bond sale still be this week? I think this is only a technicality, but I'm sure ballpark opponents will try to make this a problem.

 

It should be just a technicality but you'll never know! On Thursday they should only discuss the delay (change the "no back-out day" from from July 1 to July 15) at the City of Miami Commission meeting, but we all know the theatrics that can happen there! Remember Regalado's negativity and Sarnoff and Spence-Jones in their Oscar winning performances?

 

There are only two changes to be discussed by the Miami-Dade County Commission on June 30:

 

1. The change to pay the letter of credit provider (Wachovia) administrative expenses first rather than last. It is understandable that, in these days of tight loans and bank failures, the bank executives want their money up front. However, they should have said so long ago to avoid this delay so close to the deadline of July 1.

2. The delay from July 1 to July 15. This delay is required by law to allow the mayor 10 days in which to veto anything the Commission passes. This is only a technicality since Mayor Alvarez is on our side.

 

So, here we go again...... to the commission meeting on Friday to approve a public hearing and another vote on June 30.

 

I hope Commissioner Moss (the chairman) can keep the commissioners under control as he did during the last stadium related meeting. This will keep the b*tching from Gimenez, Martinez, Heyman and Sorenson to a minimum.

 

And........like many on this board have said many times during the past 10 years......."I'll believe it when I see the shovels going into the ground", hopefully in mid July.

So there is still a chance that we will NOT get this thing built?

So there is still a chance that we will NOT get this thing built?

 

 

I doubt that there will be any problems in the county, specially since the vote will only require a simple majority and we have a 9-4 advantage with only Gimenez, Sorenson, Heyman and Martinez voting against us.

 

The City of Miami is a different story. They are only voting to approve the final date to be moved to July 15. The vote will not have anything to do with anything else. However, there are only five commissioners. Two are definitely with us (Gonzalez and Sanchez), one is definitely against us (Regalado) and you all know what can happen with Sarnoff and Spence-Jones. It would be highly unlikely that these commissioners would take this "opportunity" to try to derail anything, but, judging by their history, I wouldn't bet on it!

YAAAAAAAAAAAAAAAAYYYYYYYY it happens again!!!!!.This was the best tease yet.Followed by the February 2008 tease where Loria shed a tear.

 

These teases make me so damn giddy.

YAAAAAAAAAAAAAAAAYYYYYYYY it happens again!!!!!.This was the best tease yet.Followed by the February 2008 tease where Loria shed a tear.

 

These teases make me so damn giddy.

 

 

Let's relax a little....I really think that this is a minor issue. I would just like to know if the bond sale is still on for tomorrow and Thursday. I would think it is....there was a backout date of the July 1st anyway, so moving that date back would not seem to be a big deal.