More specific details of New Stadium

[dolfinfan305]

I thought this diserved a thread of its own.

 

The important points are highlighted. From the Herald:

 

 

Parking magnate Jacob ''Hank'' Sopher could buy the Miami Arena for $25 million under a deal narrowly approved Tuesday by the sports authority that runs the money-losing facility.

 

The arena is among the properties being discussed as a possible site for a Florida Marlins stadium. But the deal, brokered by Miami Mayor Manny Diaz, is not contingent on its use as a ballpark.

 

''The net result of this sale could have a lot to do with a Marlins deal,'' Diaz said. ``But from my perspective, I see this as a free-standing deal.''

 

Diaz said the main benefits to the city would be eliminating a ''white elephant'' that he says discourages development and drains public resources.

 

The Miami Sports and Exhibition Authority, which operates the arena, voted 6-4 to take the first steps toward the sale, by commissioning two appraisals of the property and soliciting any other bids. The deal would also require the approval of Miami-Dade County, because county tourist tax money is used to pay off its bonds.

 

Sopher did not return a phone call Tuesday, but his real estate broker, Edie Laquer, said he had no ''imminent'' plans. She said Sopher considered the arena a long-term investment and would entertain offers from interested parties.

 

''From Hank's perspective, a deal with the Marlins is not at all material to the acquisition,'' she said. ``But if it comes about as a byproduct, it could be a win-win for everyone.''

 

Laquer acknowledged she was at a meeting with city officials during which Sopher expressed interest in partnering with the Marlins to build a stadium. She said that option does not appear likely at this time.

 

Laquer said Sopher has a ''myriad'' of other potential partners he could reach out to, incLuding UBS Investment Group, a global investment firm.

 

City Manager Joe Arriola also said Sopher had pitched a stadium and retail complex to him about a month ago.

 

''Hank has an idea, a plan, a dream and he's working on it,'' Arriola said. ``All I'm interested in is selling the arena to him, or the highest bidder.''

 

Arriola insisted the Marlins remain interested in the city's plan to build a baseball park at the Orange Bowl grounds in Little Havana. He said he spoke to team President David Samson at 12:25 p.m. Tuesday, and was told the team was ''concentrating'' on that site.

 

Marlins executives declined comment.

 

OTHER BENEFITS

 

Even if the team is not interested in the arena site, it could still reap benefits from the sale, city officials said.

 

Diaz said its proceeds would be used to help pay down the $34 million balance on the bonds used to finance the arena, with the remaining $9 million paid off by tax dollars already committed to the facility for upkeep.

 

The bonds would be paid off by next year, Diaz said, freeing tens of millions of dollars for other sports-related uses.

 

Tourist ''bed tax'' dollars now committed to the arena could then be leveraged to raise between $65 million and $100 million, city officials said.

 

Diaz said that money could be used to finance renovations to the Orange Bowl or to help the Marlins build a stadium, or a combination of both.

 

The arena was built at a cost of $52 million to house the Miami Heat basketball team, which played there from 1988 until 2000, when the team moved to the AmericanAirlines Arena three blocks away.

 

Some sports authority board members were reluctant to endorse the sale, saying they had not been given enough time to study it.

 

''Don't put a gun to my head and tell me this has to be done today,'' said Miami City Commissioner Tomas Regalado, who voted against the sale.

 

Others felt the proposal, strongly supported by Diaz, had enough safeguards to ensure the arena would be sold at a favorable price.

 

The price could increase if either of two appraisals exceeds $25 million or a potential buyer other than Sopher makes a higher bid. If that happens, the arena could be sold at auction within 60 days, according to the proposal.

 

In another development, city officials said for the first time Tuesday that they would be willing to help the Marlins build a retractable roof at the Orange Bowl site, a feature they had previous dismissed as too costly.

 

Arriola said the city and the University of Miami can raise about half the $100 million needed to refurbish the Orange Bowl. He said he would have to ''hustle'' to find the remainder through naming-rights and other means.

 

Arriola said a portion of the proceeds of the arena sale could be used to help the Marlins close their funding gap, roughly $115 million. He did not say what that amount would be, though he indicated it would be substantial.

 

County officials have made a tentative pledge of $73 million, while the team committed $137 million toward construction costs on a $325 million stadium. The team says that price tag includes a retractable roof.

 

COST OVERRUNS

 

City officials criticized the figure as too low, but Marlins executives have agreed to pay any cost overruns.

 

Arriola said the Marlins stadium would be a stand-alone facility. It would be built north of the Orange Bowl, but would not be attached, as the city's consulting firm had proposed earlier this year, he said.

 

An additional five acres of land would have to be acquired near the Orange Bowl grounds to build parking lots, he said.

 

Link

 

So now its confirmed that we will be getting a dome and the stadium will not be built as part of the Orange Bowl as they had said earlier but as a stand alone facility. I like the way they are talking now b/c that joint facility wouldve been the laghingstock of MLB.

[marlins24]

In another development, city officials said for the first time Tuesday that they would be willing to help the Marlins build a retractable roof at the Orange Bowl site, a feature they had previous dismissed as too costly.

:thumbup

 

If that development is true than the odds improve that the Marlins will finally get their stadium.

[jonnylons]

Wow...this seems pretty good. A lot of details seem to be floating around, loosely, and over the next few weeks things should be resolved. This all seems part of some master plan...very interesting if everything works out. Probably one of the best moves ever made by a franchise/city to get this thing done. Very creative...let's wait and see...

[Shaq-Man]

i'm glad the wheels are finally starting to turn.

 

a part of me is very happy to finally see the city agree to pitch in funds toward the stadium and toward a retractable roof, but in reality this is nothing to be excited about. from a bargaining standpoint, if the city repeatedly proclaims it will contribute only land, then 1 or 2 weeks before the deadline agrees to chip in a little cash and signs off on the retractable roof (which was necessary in the first place), everyone is expected to be pleased with the city's contribution.

 

i still want to see more details before i forgive the city for severely stiffing the world champs.

[BasesLoadedWalk]

The Sun-Sentinel has an article on this as well:

 

 

Sun-Sentinel

 

 

Demolition of Miami Arena might clear way for new Marlins Stadium

 

By Sarah Talalay

Staff Writer

Posted March 3 2004

 

A city of Miami board approved a plan Tuesday to sell Miami Arena for at least $25 million, freeing up millions of dollars that could help renovate the Orange Bowl stadium and build a new ballpark for the Florida Marlins. The proposed sale could help pay for the retractable roof Marlins officials say is crucial to keeping the franchise in South Florida.

 

The Miami Sports and Exhibition Authority, an arm of the city that owns the 16-year-old pink downtown arena, voted 6-4 to pursue a deal to sell the building to Green Acres LLC, a corporation led by Quik Park owner Jacob "Hank" Sopher. Supporters said the sale, which could be completed in 60 days, would rid the city of a rarely used building that costs taxpayers millions in upkeep and debt service.

 

For the deal to go through, the authority must obtain two appraisals of the property that do not exceed Sopher's offer. It also must allow others to bid on the building, setting up a potential auction.

 

Miami Mayor Manny Diaz, who chairs the authority board, presented the plan as a way to "correct the mistakes of the past," and free up county hotel tax dollars that are paying off about $35 million in construction debt remaining on the building at Northwest Eighth Street and Miami Avenue. The plan could make at least $60 million in bondable revenue available for other city projects, which could include upgrading the Orange Bowl for the University of Miami football team, and helping to finance a Marlins stadium, he said.

 

The arena opened in 1988 as home to the NBA's Miami Heat, but officials cut so many corners in construction that it was considered obsolete immediately. The Florida Panthers hockey team called it home beginning in 1993, but soon both teams were talking of needing new, larger arenas with revenue-generating luxury seating.

 

The Panthers moved to Broward in 1998 and, two years later, the Heat relocated to AmericanAirlines Arena, three blocks east of its old home. The UM men's basketball team moved to an on-campus arena last year.

 

"Few would disagree this is a white elephant," Diaz said.

 

Sopher, who owns property around the arena, said he envisions tearing down the venue and developing an upscale shopping center similar to Bal Harbour, and perhaps apartments.

 

"I've had faith in the Park West area, since I started to buy in 1999," Sopher said. "I really feel that this is the last land available in downtown Miami."

 

Sopher said he is not opposed to the idea of a Marlins stadium being built on the property, which has been considered a stadium site for a few years, but only if the team can pay for it and acquire enough nearby property for a stadium. He estimates that would cost $100 million.

 

"Would I consider it?" Sopher said. "I'm a baseball fan. I would love to see the Marlins down there."

 

The Marlins declined to comment on Tuesday. The team has set a March 15 deadline to complete a financing deal and is optimistic about meeting it.

 

If a plan is not set by that date, a portion of the $73 million in county hotel taxes pledged by Miami-Dade County toward a stadium would go to the city of Miami Beach, which insists it is owed $50 million in the taxes to upgrade its convention center.

 

Miami City Manager Joe Arriola said the Marlins are free to make a deal with Sopher or another bidder for the arena site, but the city is focused on working out a deal to finance a stadium north of the Orange Bowl, and is now considering helping pay for a retractable roof the team says is crucial.

 

Whether Sopher or another bidder buys the arena, the deal frees up revenue the city has been plowing into the debt and operation of the money-draining building, which this year has been home to the minor league hockey Miami Manatees.

 

Miami-Dade officials said they would need to discuss the plan before determining whether the city would continue to receive the hotel taxes once the venue is demolished.

 

Under the deal proposed Tuesday, Sopher would pay $25 million cash for the arena and the city would use a combination of hotel taxes and reserve funds to cover the remaining debt on the arena. That would free up the roughly $5 million a year in debt service as well as operation and maintenance costs.

 

That could represent a savings of $103 million in future payments and costs, said Richard Berkowitz, bond counsel for the authority.

 

Miami Sports and Exhibition Authority board member Maritza Gutierrez, who cast one of the dissenting votes, said the city was moving too quickly on a plan that had not been properly studied.

 

 

The way I see it, the City isn't going to change from their stance on wanting to site the ballpark on the OB property. Which leads me to ask what are they planning to do with the parking lots Marlins2003 have alluded to?

[TarHeel324]

The way I see it, the City isn't going to change from their stance on wanting to site the ballpark on the OB property. Which leads me to ask what are they planning to do with the parking lots Marlins2003 have alluded to?

the miami arena is now falling into place because the city will make 25 million from sopher

 

if there is no miami arena, there will be a new marlin stadium

[marlins24]

I just want to add that the March 15 deadline was choosen by the Marlins only, so they have more time after that day.

[Shaq-Man]

The way I see it, the City isn't going to change from their stance on wanting to site the ballpark on the OB property. Which leads me to ask what are they planning to do with the parking lots Marlins2003 have alluded to?

they're just playing hardball...

 

the OB is the cheapest option for the city so of course they'd prefer it. the whole "OB or nothing" business is their bargaining hogwash. i wouldn't be surprised at all if we end up doing this next to the miami arena.

[Shaq-Man]

I just want to add that the March 15 deadline was choosen by the Marlins only, so they have more time after that day.

are you sure?

 

i thought they must have financing in order by march 15 in order to receive the $73 million in bed tax funds from the county--as dictated by the county--or else the funds will go back to miami beach.

[marlins24]

I just want to add that the March 15 deadline was choosen by the Marlins only, so they have more time after that day.

are you sure?

 

i thought they must have financing in order by march 15 in order to receive the $73 million in bed tax funds from the county--as dictated by the county--or else the funds will go back to miami beach. I heard it on the news yesterday that the Marlins were the ones who set the March 15 deadline but it is not official.

 

I thought that it was the city who set that deadline :mischief2

[jonnylons]

I believe the deadline was set by the Marlins. The rationale was a hard deadline gets things moving. It is not hard and fast though, which means if the Marlins and the city/county have a deal brewing past midnight, they wont shut the whole thing down. Also, I believe they have longer than the Mar. 15th deadline to decide what to do with the $73M. The Beach can stick it...they have enough dough.

 

As for this obsession with the OB and 'upgrading' for the Canes' fans, I think this is completely stupid. First of all, UM owes money to the city for their use of the OB. To upgrade it only costs the city money and the university isnt necessarily footing the bill. It doesnt make any sense - the Canes already have a home. The Marlins DO NOT. Get the Fish a stadium first, then tell the Canes to try and find a new home. They have no choice and will take what is left. Screw the Canes, get the Fish a stadium. Just my opinion...

 

But I am a Nole too... :mischief

[FutureGM]

i still want to see more details before i forgive the city for severely stiffing the world champs.

Agreed, let them put their money where their mouth is.

[Marlins2003]

The March 15 deadline was imposed by the County. If the Marlins don't have a deal in place by then (for BOTH a stadium location and financing) the $73 million committed by the county reverts to convention development purposes (mostly the Miami Beach Convention Center redevelopment project). The reason you hear Samson speaking about "his" March 15 deadline is because he says the Marlins cannot move forward without those funds available for stadium construction.

 

The Marlins are loathe to go to the Orange Bowl site but they have no choice and follow the carrot Diaz is waving in front of the face, which is a site AND financing. Because of the pending arbitration/litigation with the minority owners the Fish have been unable to find serious suitors for financing the unsecured portion needed to complete the project.

 

The Marlins have been able to rescue two important concessions nonetheless. First, they aren't going to be forced to build a stadium joined at the hip to the OB football stadium which will allow them greater control over vendors, food service and naming rights, etc. Second, the City is now on board to help finance a (retractable) roof stadium. But at a price.

 

The problems with the OB site are mamoth. It's impossible to figure out how the city expects to acquire the minimum 5 acres (its really closer to 12 acres) needed in that area for less than $20-25 million. And even if they do, locating there versus in the Miami Arena area will add at least an additional 20 minutes one way to the average Broward/Palm Beach ticketholder's trip, which will already be another 20 minutes longer than PPS. So folks up north are looking at adding an additinal 40 minutes each way.

 

It turns out the problems with the Arena area have more to do with neighbors than anticipated. While land acquisition costs there might run to $10-15 million to square off the current parking lots west of the Arena, the big problem has to do with certain pols and their backers who are holding the project hostage.

 

Sopher is not the problem. In fact Sopher is on record as saying he will sell any of his lots at his acquisition cost to further bringing the Fish downtown, including his much coveted Biscayne Blvd. frontage lots. Unfortunately he doesn't control enough contiguous property to site the Fish on hs own and not everyone is willing to be so generous.

 

So it looks like Diaz/Arriola have the Marlins in a box. Time is running out, the county does not want to push for the 1/2 penny 18 month sales tax that would allow the Fish to look to better locations in the county and they are stuck with the OB as a site of last resort.

[jonnylons]

I cant help but think something will come of this. Either way, a new stadium is a new stadium.

[fauowls44]

The March 15 deadline was imposed by the County. If the Marlins don't have a deal in place by then (for BOTH a stadium location and financing) the $73 million committed by the county reverts to convention development purposes (mostly the Miami Beach Convention Center redevelopment project). The reason you hear Samson speaking about "his" March 15 deadline is because he says the Marlins cannot move forward without those funds available for stadium construction.

 

The Marlins are loathe to go to the Orange Bowl site but they have no choice and follow the carrot Diaz is waving in front of the face, which is a site AND financing. Because of the pending arbitration/litigation with the minority owners the Fish have been unable to find serious suitors for financing the unsecured portion needed to complete the project.

 

The Marlins have been able to rescue two important concessions nonetheless. First, they aren't going to be forced to build a stadium joined at the hip to the OB football stadium which will allow them greater control over vendors, food service and naming rights, etc. Second, the City is now on board to help finance a (retractable) roof stadium. But at a price.

 

The problems with the OB site are mamoth. It's impossible to figure out how the city expects to acquire the minimum 5 acres (its really closer to 12 acres) needed in that area for less than $20-25 million. And even if they do, locating there versus in the Miami Arena area will add at least an additional 20 minutes one way to the average Broward/Palm Beach ticketholder's trip, which will already be another 20 minutes longer than PPS. So folks up north are looking at adding an additinal 40 minutes each way.

 

It turns out the problems with the Arena area have more to do with neighbors than anticipated. While land acquisition costs there might run to $10-15 million to square off the current parking lots west of the Arena, the big problem has to do with certain pols and their backers who are holding the project hostage.

 

Sopher is not the problem. In fact Sopher is on record as saying he will sell any of his lots at his acquisition cost to further bringing the Fish downtown, including his much coveted Biscayne Blvd. frontage lots. Unfortunately he doesn't control enough contiguous property to site the Fish on hs own and not everyone is willing to be so generous.

 

So it looks like Diaz/Arriola have the Marlins in a box. Time is running out, the county does not want to push for the 1/2 penny 18 month sales tax that would allow the Fish to look to better locations in the county and they are stuck with the OB as a site of last resort.

So basically what you are saying is that while it's not the ideal site, the OB is last "good" option left for the team right now. The city gets what they want, a stadium built on the OB site, the name Miami Marlins, etc. and the Marlins get a roof and free land. Maybe that's over simplifying it.

 

Marlins2003, in your opinion, since you seem rather knowledgeable about this deal, on March 15th, what do you think will be the final outcome? The Marlins deciding that the OB is not where they want to be or will the team jump on the deal and worry about logistics later?

 

Thanks!

[Marlins2003]

For me to try and answer your question would be idle speculation on my part. I want to see a deal done as a fan, but from a business standpoint I just don't know. Samson always said it will come down to seven days of all-nighters to get a deal done and his prophecy may come true.

 

Whether Miami can come to the table with financing without having actually sold (as in having Sopher's check in hand) the Miami Arena remains to be seen. There's no guarantee there will be a market for the bonds the City of Miami needs to sell to participate in the financing of a new stadium although closing out the Arena bonds will improve their marketablity and the City's credit-rating.

 

My guess, and it's just a guess, is there will be something that resembles a deal done by March 15. Whether it's enough to stave off the threat of litigation by Miami Beach remains to be seen. The county needs to find a way to compensate them for what they are giving up as Miami Beach has a legitimate claim to those dollars. It's unfair to paint them as the "bad guys" in all this, they aren't. In order to continue to generate convention development tax dollars the convention has to be enhanced to make it competitive by today's standards.

 

From what I understand the Arena area is still not completely off the drawingboard but the cost to get the neighborhood and certain pols onboard may ruin any chances of a "downtown" stadium. Arriola is determined to site the Marlins at the OB regardless of the land acquisition costs. One can only imagine why.

[fauowls44]

Thanks Marlins2003, great stuff :notworthy !

 

I've got my fingers crossed...Keep us posted.

[Hotcorner]

I would prefer the Arena site personally.

 

interesting how now when the Arena site gains some momentum, Arriola suddenly beefs up the OB site deal. no longer adjoining stadiums, now talking about a roof (when previously that was not an option). It's like before he was dangling out there as a "take it or leave it" deal. now when other possibilities open up, he wants to make some concessions. it's clear they're really pushing the OB site.

 

(although i guess if they're freeing up money from the Arena sale, that's money that could be applied to a roof regardless of the location...)

[orisha]

joe arriola has been on an am spanish radio station for the past few weeks and all his comments have been very positive (for weeks now) and he's been hinting that a stadium deal is about to be made.

[Wild Card]

Awe-some

 

We'll have it by the 15th. The city is definately caving.

[Marlins2003]

It's not about anyone "caving", it's about doing a (business) deal that works for all parties.

[catchoftheday]

joe arriola has been on an am spanish radio station for the past few weeks and all his comments have been very positive (for weeks now) and he's been hinting that a stadium deal is about to be made.

::salivating over the sound of that::

 

:thumbup

[catchoftheday]

to me all this sudden things about the Miami Arena seem awefully positive, now the city is willing to help out with a roof, since it will work to their benefit that a stadium is built at the OB area.... maybe some competition?

 

and if they can free up the land where the arena is at, than thats another $25 mil for the city.

 

personally i like the idea of a stadium downtown, i think that there is land and room to grow, not only for the marlins but for the city (tourism, AAA, new stadium, new museum, bayside, shoppings) since it will involve a lot more revenue, but than again who am i to talk, im just an outsider looking in. Also i dont know how the OB site would work, i personally think that the volume of two stadiums being built in the same location would just about eat up all the adjacent land that could be used for parking. And im not really in the mood to be parking at "Juan Valdez" house for $15, but than again, it could work out and fun to park at "Juan Valdez's" house.

 

Anything will make me happy...

 

what has better access for North Broward, Palm Beach residents? ... i live in south broward so i dont care, but i was just wondering.

[djm305]

As bad as the Orange Bowl area may be, if they Build a new park and make the Orange Bowl a little nicer and figure out the parking situation. I do not think that location will be so bad. In terms of traffic it may cause problems though, I mean considering most of the Marlins games during the week are at 7, and considering the traffic problem our city already has with 836, add to that people going to a baseball game after work, you are setting yourself up for some rediculous commute time. Lets not even get into what happens when the canes and the marlins both have afternoon games. It's too bad they could't taylor a deal to use land somewhere between downtown and where Pro-Player is since it would probably be a better draw in such a location.

[Marlins2003]

As bad as the Orange Bowl area may be, if they Build a new park and make the Orange Bowl a little nicer and figure out the parking situation. I do not think that location will be so bad. In terms of traffic it may cause problems though, I mean considering most of the Marlins games during the week are at 7, and considering the traffic problem our city already has with 836, add to that people going to a baseball game after work, you are setting yourself up for some rediculous commute time. Lets not even get into what happens when the canes and the marlins both have afternoon games. It's too bad they could't taylor a deal to use land somewhere between downtown and where Pro-Player is since it would probably be a better draw in such a location.

 

Amen