By Risa Polansky
When Miami Mayor Tomás Regalado set out to clinch a lower cost for parking at the new Marlins ballpark, he thought he'd have to start over to do it.
Just last month, city officials were considering scratching a nearly six-month bidding process to begin again in hopes of scoring a smaller price tag for the planned four-garage, six-lot project.
But in a late-innings play change, commissioners last week agreed instead to go with Suffolk Construction, the original bid favorite — which says the job can be done for a maximum $75 million.
That's $19 million less than the $94 million parking cost city officials have long cited.
And rather than bonding $120 million to finance it, as commissioners grudgingly agreed to do last year, the city will only have to sell about $92 million in bonds.
"It was common knowledge that this would cost $94 million," Mr. Regalado told the commission last week.
But after the mayor in November deferred the original legislation that would have formally awarded Suffolk the job, the construction company "came to us and through hours and hours of discussion, they have committed to an at-risk price of $75 million," Mr. Regalado said.
"At-risk" means the contractor guarantees a price ceiling, barring any unforeseen complications or city-requested changes.
"Not only we have saved $19 million in the construction to the people of Miami, but also I would say more than $40 million or $50 million in the long run in bonding," he said.
Mr. Regalado, a former commissioner, was one of the most vocal opponents to building the largely publicly financed stadium.
But the city committed to handling parking as part of the roughly $3 billion ballpark project, "so we might as well save money," he said.
City Manager Pete Hernandez jumped in to point out that Suffolk got the job through what he called a "clean" competitive process.
He assured commissioners also that saving money doesn't mean "sacrificing quality."
A few years ago in citing a $94 million price tag, Mr. Hernandez said he remembers being criticized "because my number was too low."
At the time, consultants estimated the parking facilities could cost in the $150 million range.
But "as things changed with the economy, the [$94 million] number became high," Mr. Hernandez said.
Tim Sterling, Suffolk's vice president of Miami operations, said the same.
The $94 million figure was an estimate from "some time ago before we started the process," he said. Today's competitive construction market "drives the cost down relative to labor and fees that we're able to demand in our sector."
Also, because architect Leo A Daly's parking structure drawings are about 75% complete, the contractor was able to get a clear idea of a maximum cost, Mr. Sterling said.
Commissioner Francis Suarez noted that Suffolk has been "working to get to this point for free," which Mr. Sterling confirmed.
Well then, quipped the commissioner, "we welcome any other free work, by the way, in the City of Miami."
Saturday, January 23, 2010
Friday, January 15, 2010
Miami OK's $92M in bonds for Marlins' stadium parking
Approval is given for the sale of $92 million in bonds -- a lower figure than expected -- for parking-site construction at the Florida Marlins' new ballpark.
BY CHARLES RABIN
CRABIN@MIAMIHERALD.COM
Miami commissioners gave staff the green light Thursday to move forward with the sale of $92 million in bonds to build the parking sites at the Florida Marlins' new ballpark.
That cost is lower than anticipated, in part because extensive preconstruction work has been completed -- but mainly because construction costs have lowered due to the sour economy.
In October, after a contentious debate, commissioners had agreed to bond out $120 million to build six parking sites with almost 6,000 spaces around the under-construction park in Little Havana.
But that figure sparked an outcry -- as city leaders had promised they would not go above $94 million, the city's end of the $642 million ballpark deal.
The next month, with the city's financial practices coming under investigation by the U.S. Securities and Exchange Commission, Mayor Tomás Regalado delayed the bond sale.
He said the city intends to go to market March.
``I believe that just by deferring the item at the time, we have saved the city $19 million,'' said Regalado.
With more time, Regalado insisted staff and Suffolk Construction, which won the bid to build the parking sites, renegotiate a better deal.
Regalado, who voted against the garage and the stadium while he was a commissioner, even said he asked City Attorney Julie Bru if there was a way to get out of the deal. ``I was told by contract, we have to build the garage,'' said the mayor.
The actual cost of building the parking sites will be $75 million, with $65.5 million going toward construction and the rest soft costs like insurance and contingency fees, said Suffolk Vice President of Operations Timothy Sterling.
The city is bonding out an additional $17 million to cover the cost of the bond deal and any other potential soft costs.
``I think the city is receiving a very good value it can support,'' said City Manager Pete Hernandez, who took the brunt of criticism in November after promising the sites would cost no more than $94 million, but asking commissioners for the ability to bond out more than $130 million.
The parking financing comes after Miami just filled a $118 million budget hole through layoffs and cuts, and as it stares at a giant $100 million pension payout in 2010.
The contract with Suffolk comes with two key provisions: The city can terminate its end of the deal at its convenience, or if it or the contractor cannot find the money to build.
``We've committed to the city to deliver the entire contract,'' said Sterling.
A Jan. 7 Sterling letter says the firm will meet minority hiring requirements. Suffolk will subcontract more than 90 percent of the construction work, accepting bids from dozens of groups over the next few weeks, then enter into an agreement with the city in March.
Commissioners, taken aback by the drop in price, weren't sure what to ask when the item came up Thursday. ``Reduction in price sounds great,'' said Commissioner Frank Carollo. ``I just want to make sure we're not cutting corners.''
Bru, the city attorney, told Carollo the city is ``agreeing to build what it promised the county and the Marlins it would build.''
The Marlins hope to open their 37,000 seat, retractable-roof stadium on Opening Day 2012. The $642 million cost will be covered largely with $490 million in public money, most of it from the taxes tourists pay while staying at hotels.
BY CHARLES RABIN
CRABIN@MIAMIHERALD.COM
Miami commissioners gave staff the green light Thursday to move forward with the sale of $92 million in bonds to build the parking sites at the Florida Marlins' new ballpark.
That cost is lower than anticipated, in part because extensive preconstruction work has been completed -- but mainly because construction costs have lowered due to the sour economy.
In October, after a contentious debate, commissioners had agreed to bond out $120 million to build six parking sites with almost 6,000 spaces around the under-construction park in Little Havana.
But that figure sparked an outcry -- as city leaders had promised they would not go above $94 million, the city's end of the $642 million ballpark deal.
The next month, with the city's financial practices coming under investigation by the U.S. Securities and Exchange Commission, Mayor Tomás Regalado delayed the bond sale.
He said the city intends to go to market March.
``I believe that just by deferring the item at the time, we have saved the city $19 million,'' said Regalado.
With more time, Regalado insisted staff and Suffolk Construction, which won the bid to build the parking sites, renegotiate a better deal.
Regalado, who voted against the garage and the stadium while he was a commissioner, even said he asked City Attorney Julie Bru if there was a way to get out of the deal. ``I was told by contract, we have to build the garage,'' said the mayor.
The actual cost of building the parking sites will be $75 million, with $65.5 million going toward construction and the rest soft costs like insurance and contingency fees, said Suffolk Vice President of Operations Timothy Sterling.
The city is bonding out an additional $17 million to cover the cost of the bond deal and any other potential soft costs.
``I think the city is receiving a very good value it can support,'' said City Manager Pete Hernandez, who took the brunt of criticism in November after promising the sites would cost no more than $94 million, but asking commissioners for the ability to bond out more than $130 million.
The parking financing comes after Miami just filled a $118 million budget hole through layoffs and cuts, and as it stares at a giant $100 million pension payout in 2010.
The contract with Suffolk comes with two key provisions: The city can terminate its end of the deal at its convenience, or if it or the contractor cannot find the money to build.
``We've committed to the city to deliver the entire contract,'' said Sterling.
A Jan. 7 Sterling letter says the firm will meet minority hiring requirements. Suffolk will subcontract more than 90 percent of the construction work, accepting bids from dozens of groups over the next few weeks, then enter into an agreement with the city in March.
Commissioners, taken aback by the drop in price, weren't sure what to ask when the item came up Thursday. ``Reduction in price sounds great,'' said Commissioner Frank Carollo. ``I just want to make sure we're not cutting corners.''
Bru, the city attorney, told Carollo the city is ``agreeing to build what it promised the county and the Marlins it would build.''
The Marlins hope to open their 37,000 seat, retractable-roof stadium on Opening Day 2012. The $642 million cost will be covered largely with $490 million in public money, most of it from the taxes tourists pay while staying at hotels.
Friday, August 07, 2009
Marlins ask MLB for 2015 All-Star game
South Florida Business Journal - by Oscar Pedro Musibay
The Florida Marlins have asked Major League Baseball to host the 2015 All-Star Game, three years after the team’s new stadium is slated to open.
Claude Delorme, senior VP of stadium development, told participants at a recent networking event for contractors seeking stadium work that the team is lobbying for 2015. MLB Commissioner Bud Selig had not yet responded to the request.
Delorme estimated the local economic impact would be $65 million.
“We are very confident that will take place,” he said, but added: “There have been no promises.”
The baseball team and contractor Hunt/Moss are working to have the $640 million, 37,000-seat domed stadium finished by March 2012.
Selig talked about the All-Star Game at the stadium’s July 18 groundbreaking as fans chanted “All-Star Game!” But, he did not give any indication of if and when it was going to happen.
A few days later, on 790 AM The Ticket’s “Dan LeBatard Show,” Marlins President David Samson said Selig promised the stadium will host the game.
Samson also did not say when that might happen, but 2015 may be possible. The New York Mets’ new Citi Field will reportedly get the call in 2013 when the National League hosts the game. An American League city will host the 2014 game.
MLB spokesman Pat Courtney said that at this time the baseball commissioner has announced only the timing of the next two All-Star games, which would occur in Los Angeles in 2010 and Arizona in 2011. He said the Marlins are “under consideration for 2015.”
Hosting the All-Star Game would be another tourism boost for South Florida. The Orange Bowl, torn down to make way for the baseball stadium, hosted five Super Bowls, and Land Shark Stadium has hosted four Super Bowls.
The Marlins have not hosted an All-Star Game, although the team has won two World Series championships. But, other local teams have been host to their league’s top talent. The Miami Heat and Florida Panthers hosted All-Star Games in 1990 and 2003, respectively.
The Florida Marlins have asked Major League Baseball to host the 2015 All-Star Game, three years after the team’s new stadium is slated to open.
Claude Delorme, senior VP of stadium development, told participants at a recent networking event for contractors seeking stadium work that the team is lobbying for 2015. MLB Commissioner Bud Selig had not yet responded to the request.
Delorme estimated the local economic impact would be $65 million.
“We are very confident that will take place,” he said, but added: “There have been no promises.”
The baseball team and contractor Hunt/Moss are working to have the $640 million, 37,000-seat domed stadium finished by March 2012.
Selig talked about the All-Star Game at the stadium’s July 18 groundbreaking as fans chanted “All-Star Game!” But, he did not give any indication of if and when it was going to happen.
A few days later, on 790 AM The Ticket’s “Dan LeBatard Show,” Marlins President David Samson said Selig promised the stadium will host the game.
Samson also did not say when that might happen, but 2015 may be possible. The New York Mets’ new Citi Field will reportedly get the call in 2013 when the National League hosts the game. An American League city will host the 2014 game.
MLB spokesman Pat Courtney said that at this time the baseball commissioner has announced only the timing of the next two All-Star games, which would occur in Los Angeles in 2010 and Arizona in 2011. He said the Marlins are “under consideration for 2015.”
Hosting the All-Star Game would be another tourism boost for South Florida. The Orange Bowl, torn down to make way for the baseball stadium, hosted five Super Bowls, and Land Shark Stadium has hosted four Super Bowls.
The Marlins have not hosted an All-Star Game, although the team has won two World Series championships. But, other local teams have been host to their league’s top talent. The Miami Heat and Florida Panthers hosted All-Star Games in 1990 and 2003, respectively.
Wednesday, July 01, 2009
The Backhoes Have Dropped
Yesterday, this was the scene in Little Havana. The site was awaiting the deal to be finalized and for work to start. Early this morning, that deal was completed and we can now see the difference. Work started on the site today for the Marlins Ballpark.
Backhoes moved on the site and work started on preparing the ground for the official groundbreaking later this month. It's about time.
County, Marlins Reach Deal On Stadium Financing
Marlins Agreed To Add $6 Million To Current Deal
Additional Payment Needed Because Of Interest Rates
Video Report
MIAMI (CBS4) ―
After several years of battling back and forth about just exactly how the new Marlins stadium would be built and financed, it looks like the battle over a new stadium has come to an end.
In a vote of nine to three, the Miami-Dade County Commission Marlins approved a plan to finance the stadium. Originally the county had pledged about $306 million toward the new stadium. They had planned to raise the funds by issuing bonds based on tourism tax dollars at an interest rate of 7.5 percent.
But a portion of the bonds received a higher than expected interest rate, 8 percent, the proceeds to the county would only amount to about $300 million. As a concession to keep the stadium deal moving, the Marlins agreed to make up the $6.2 million difference.
"You're looking at difference between $6 million, and maybe a little more, and that's what we're trying to make up in the deal itself," said Commissioner Jose "Pepe" Diaz shortly before the final vote was taken.
Opponents argue that the financing is built on shaky ground, that the recession and higher interest rates could make the deal cost far more than originally projected.
Not all of the commissioners were happy with the deal.
"We have taken a bad deal and made it even worse," said Commission Katy Sorenson. "We have now surpassed the interest rate that we said we would not go beyond. And I think this commission is ready to vote for that and it's certainly not going to be with my vote."
"This has been a bad deal from the get-go. It just gets worse and worse as it goes on. The administration and the county doesn't seem to understand to think that we have bad economic times," said Miami-Dade Commissioner Carlos Gimenez.
Still, supporters like Miami mayor Carlos Alvarez said that much of the debate from opponents have been filled with misinformation.
"A lot of people have tried very hard to give misinformation telling people that their ad valorem taxes are going to the construction of the stadium. That's just an outright lie. It would be embarrassing; you would be ashamed if that franchise left our community because after so many years, we couldn't enter into a public/private partnership with them and build a stadium for the benefit of our community," Alvarez said.
Barring an unexpected delays, ground breaking for the new stadium is set for mid-July.
CBS4 reporters Michael Williams and Marybel Rodriguez contributed to this report.
Additional Payment Needed Because Of Interest Rates
Video Report
MIAMI (CBS4) ―
After several years of battling back and forth about just exactly how the new Marlins stadium would be built and financed, it looks like the battle over a new stadium has come to an end.
In a vote of nine to three, the Miami-Dade County Commission Marlins approved a plan to finance the stadium. Originally the county had pledged about $306 million toward the new stadium. They had planned to raise the funds by issuing bonds based on tourism tax dollars at an interest rate of 7.5 percent.
But a portion of the bonds received a higher than expected interest rate, 8 percent, the proceeds to the county would only amount to about $300 million. As a concession to keep the stadium deal moving, the Marlins agreed to make up the $6.2 million difference.
"You're looking at difference between $6 million, and maybe a little more, and that's what we're trying to make up in the deal itself," said Commissioner Jose "Pepe" Diaz shortly before the final vote was taken.
Opponents argue that the financing is built on shaky ground, that the recession and higher interest rates could make the deal cost far more than originally projected.
Not all of the commissioners were happy with the deal.
"We have taken a bad deal and made it even worse," said Commission Katy Sorenson. "We have now surpassed the interest rate that we said we would not go beyond. And I think this commission is ready to vote for that and it's certainly not going to be with my vote."
"This has been a bad deal from the get-go. It just gets worse and worse as it goes on. The administration and the county doesn't seem to understand to think that we have bad economic times," said Miami-Dade Commissioner Carlos Gimenez.
Still, supporters like Miami mayor Carlos Alvarez said that much of the debate from opponents have been filled with misinformation.
"A lot of people have tried very hard to give misinformation telling people that their ad valorem taxes are going to the construction of the stadium. That's just an outright lie. It would be embarrassing; you would be ashamed if that franchise left our community because after so many years, we couldn't enter into a public/private partnership with them and build a stadium for the benefit of our community," Alvarez said.
Barring an unexpected delays, ground breaking for the new stadium is set for mid-July.
CBS4 reporters Michael Williams and Marybel Rodriguez contributed to this report.
Friday, June 19, 2009
Marlins Stadium Overcomes First Hurdle
Judge Allows Tourist Tax Dollars To Finance Stadium
By Jasmine Kripalani
Judge's Decision
The Florida Marlins are one step closer to playing ball at their new stadium after a judge denied a plaintiff's motion that would have prevented Miami-Dade County from using tourism tax dollars to build it.
The lawsuit filed against the city of Miami and Miami-Dade County came from two individuals who alleged the use of the tourist tax dollars would be unconstitutional.
But Judge Lawrence A. Schwartz ruled that the "subject bonds is not unconstitutional and therefore the Series 2009 Refunding Bonds may be issued."
County and city commissioners have remained confident despite the legal challenges.
"These are the last shots that folks can take to derail the process. But I believe those who supported it will continue to support it, and we will move forward and build this stadium," Miami-Dade Commission Chairman Dennis Moss told CBS4 news partner The Miami Herald.
The Marlins have been looking for a new stadium for years to get out of playing at LandShark Stadium.
The overall stadium deal will cost taxpayers between $500 and $600 million. Miami-Dade County will own the stadium and contribute around $300 million to help build the stadium. The city of Miami will donate the land and another $13 million in taxes. Miami city commissioners agreed to build a 6,000 space parking lot. The cost of which would reimbursed by the Marlins.
The Marlins will contribute around $155 million to the stadium's construction as well. The Marlins will get all revenue from the stadium and the $35 million in rent the team will pay is included in the overall $155 million team contribution, according to ESPN.com.
The Marlins stadium deal stands in contrast to a recent deal signed by the city of Santa Clara, California to build a new football stadium for the San Francisco 49ers. The 49ers stadium deal calls for the use of $79 million in public funds, $35 million from hotel taxes, and the rest of the $937 million would come from the 49ers, the NFL, naming rights and concessions, according to the San Francisco Chronicle.
In addition, the 49ers will pay for any cost overruns, pay the city $1 million in rent for up to 40 years, and give up a cut of the overall stadium revenue.
The new Marlins stadium is set to begin construction on July 18 and be ready for opening day in 2012.
By Jasmine Kripalani
Judge's Decision
The Florida Marlins are one step closer to playing ball at their new stadium after a judge denied a plaintiff's motion that would have prevented Miami-Dade County from using tourism tax dollars to build it.
The lawsuit filed against the city of Miami and Miami-Dade County came from two individuals who alleged the use of the tourist tax dollars would be unconstitutional.
But Judge Lawrence A. Schwartz ruled that the "subject bonds is not unconstitutional and therefore the Series 2009 Refunding Bonds may be issued."
County and city commissioners have remained confident despite the legal challenges.
"These are the last shots that folks can take to derail the process. But I believe those who supported it will continue to support it, and we will move forward and build this stadium," Miami-Dade Commission Chairman Dennis Moss told CBS4 news partner The Miami Herald.
The Marlins have been looking for a new stadium for years to get out of playing at LandShark Stadium.
The overall stadium deal will cost taxpayers between $500 and $600 million. Miami-Dade County will own the stadium and contribute around $300 million to help build the stadium. The city of Miami will donate the land and another $13 million in taxes. Miami city commissioners agreed to build a 6,000 space parking lot. The cost of which would reimbursed by the Marlins.
The Marlins will contribute around $155 million to the stadium's construction as well. The Marlins will get all revenue from the stadium and the $35 million in rent the team will pay is included in the overall $155 million team contribution, according to ESPN.com.
The Marlins stadium deal stands in contrast to a recent deal signed by the city of Santa Clara, California to build a new football stadium for the San Francisco 49ers. The 49ers stadium deal calls for the use of $79 million in public funds, $35 million from hotel taxes, and the rest of the $937 million would come from the 49ers, the NFL, naming rights and concessions, according to the San Francisco Chronicle.
In addition, the 49ers will pay for any cost overruns, pay the city $1 million in rent for up to 40 years, and give up a cut of the overall stadium revenue.
The new Marlins stadium is set to begin construction on July 18 and be ready for opening day in 2012.
Thursday, June 18, 2009
Marlins Stadium Deal Still Facing Hurdles
By Tim Kephart
Video Report
MIAMI (CBS4) ― The Florida Marlins long-sought new baseball stadium was supposed to have bonds issued to bankroll the $515 million construction this week. But, two potential problems have appeared, according to CBS4 news partner, the Miami Herald.
One involves a bank letter of credit that forces the city and county commissioners to vote again on one part of the stadium puzzle. The other is a new citizen lawsuit against the deal that forced the county to head to court on Thursday. However, the judge says it will be at least a day, if not more, before a decision is made.
The convergence of the two problems has led to the delay of the issuance of bonds for at least the next two weeks. County and city commissioners did not seem to be worried about the stadium deal, even with the latest challenges.
"These are the last shots that folks can take to derail the process. But I believe those who supported it will continue to support it, and we will move forward and build this stadium," Miami-Dade Commission Chairman Dennis Moss told the Herald.
The Marlins have been looking for a new stadium for years to get out of playing at LandShark Stadium. The deal has been problematic from the start and even faced a lengthy lawsuit from Norman Braman.
Things appeared to be going according to schedule after Wall Street bond rating agencies rated the county well after the county promised to use general funds not coming from property taxes if tourist taxes don't cover the financial obligations for the construction of the new stadium, the Herald reported.
Commissioners in Miami voted to alter the termination date of the deal from July 1 to July 15, after that date, the city, county, and Marlins are on the hook for the costs of the new stadium. Wachovia triggered the move to July 15 by requiring the bank fees be paid first, before any tax revenues go toward the debt or reserve payments, according to the Herald.
The overall stadium deal will cost taxpayers between $500 and $600 million. Miami-Dade County will own the stadium and contribute around $300 million to help build the stadium. The city of Miami will donate the land and another $13 million in taxes. Miami city commissioners agreed to build a 6,000 space parking lot. The cost of which would reimbursed by the Marlins.
The Marlins will contribute around $155 million to the stadium's construction as well. The Marlins will get all revenue from the stadium and the $35 million in rent the team will pay is included in the overall $155 million team contribution, according to ESPN.com.
The Marlins stadium deal stands in contrast to a recent deal signed by the city of Santa Clara, California to build a new football stadium for the San Francisco 49ers. The 49ers stadium deal calls for the use of $79 million in public funds, $35 million from hotel taxes, and the rest of the $937 million would come from the 49ers, the NFL, naming rights and concessions, according to the San Francisco Chronicle.
In addition, the 49ers will pay for any cost overruns, pay the city $1 million in rent for up to 40 years, and give up a cut of the overall stadium revenue.
The new Marlins stadium is set to begin construction on July 18 and be ready for opening day in 2012.
Video Report
MIAMI (CBS4) ― The Florida Marlins long-sought new baseball stadium was supposed to have bonds issued to bankroll the $515 million construction this week. But, two potential problems have appeared, according to CBS4 news partner, the Miami Herald.
One involves a bank letter of credit that forces the city and county commissioners to vote again on one part of the stadium puzzle. The other is a new citizen lawsuit against the deal that forced the county to head to court on Thursday. However, the judge says it will be at least a day, if not more, before a decision is made.
The convergence of the two problems has led to the delay of the issuance of bonds for at least the next two weeks. County and city commissioners did not seem to be worried about the stadium deal, even with the latest challenges.
"These are the last shots that folks can take to derail the process. But I believe those who supported it will continue to support it, and we will move forward and build this stadium," Miami-Dade Commission Chairman Dennis Moss told the Herald.
The Marlins have been looking for a new stadium for years to get out of playing at LandShark Stadium. The deal has been problematic from the start and even faced a lengthy lawsuit from Norman Braman.
Things appeared to be going according to schedule after Wall Street bond rating agencies rated the county well after the county promised to use general funds not coming from property taxes if tourist taxes don't cover the financial obligations for the construction of the new stadium, the Herald reported.
Commissioners in Miami voted to alter the termination date of the deal from July 1 to July 15, after that date, the city, county, and Marlins are on the hook for the costs of the new stadium. Wachovia triggered the move to July 15 by requiring the bank fees be paid first, before any tax revenues go toward the debt or reserve payments, according to the Herald.
The overall stadium deal will cost taxpayers between $500 and $600 million. Miami-Dade County will own the stadium and contribute around $300 million to help build the stadium. The city of Miami will donate the land and another $13 million in taxes. Miami city commissioners agreed to build a 6,000 space parking lot. The cost of which would reimbursed by the Marlins.
The Marlins will contribute around $155 million to the stadium's construction as well. The Marlins will get all revenue from the stadium and the $35 million in rent the team will pay is included in the overall $155 million team contribution, according to ESPN.com.
The Marlins stadium deal stands in contrast to a recent deal signed by the city of Santa Clara, California to build a new football stadium for the San Francisco 49ers. The 49ers stadium deal calls for the use of $79 million in public funds, $35 million from hotel taxes, and the rest of the $937 million would come from the 49ers, the NFL, naming rights and concessions, according to the San Francisco Chronicle.
In addition, the 49ers will pay for any cost overruns, pay the city $1 million in rent for up to 40 years, and give up a cut of the overall stadium revenue.
The new Marlins stadium is set to begin construction on July 18 and be ready for opening day in 2012.
Thursday, May 14, 2009
Finally! Ballpark Webcam installed at Orange Bowl
From a Marlins press release yesterday:
The Florida Marlins today announced that a webcam has been installed overlooking the site of the new Miami ballpark, allowing fans to continuously view the activities in the surrounding area. The announcement was made by Marlins Sr. VP, Ballpark Development, Claude Delorme.This does help bring home the point that this is going to happen. Enjoy!
The webcam is located on the roof of the Robert King High Towers Building, located at 1401 NW 7th Street. The camera, which was manufactured by "EarthCam", provides high-speed, Multi-Megapixel images that are archived for remote viewing. These pictures can be viewed exclusively at www.marlins.com. Click on "Camera Control" to the left of the main image and zoom in and out. You can also click on the archive tab to look back in time. The camera's orientation is from North to South and images are updated every 15 minutes.
"This exciting, state-of-the-art technology allows us to share the historic construction of our new home with Marlins fans everywhere," said Delorme. "Everyone can now follow the increased activity on the site as groundbreaking quickly approaches."
Marlins have hope for stadium naming rights deal as landscape changing but not dying
By Risa Polansky
Through the recession and potentially beyond, we could see more short-term and in-kind sports venue sponsorships like the newly announced LandShark Lager deal at Dolphin Stadium, marketing experts say.
Still, though it's unlikely naming rights contracts through the next several years will carry huge price tags, the depressed economy doesn't spell the end of long-term, lucrative deals, they predicted, forecasting hope for the Marlins in a new Little Havana ballpark.
"There's no reason to think when this economic malaise gets past usÖ some of the big stadiums that are out there won't be signing some bigger deals," said Zach Anderson, a marketing veteran who runs sports branding blog BrandDunk.com. "There will always be a market for those long-term deals."
In 2006, now-financially troubled Citigroup inked a $400 million, 20-year deal to call the new New York Mets ballpark Citi Field.
But since the economic crash, all's been fairly quiet on the sports-venue sponsorship front — until last week, when Jimmy Buffett brought Margaritaville to Miami-Dade.
The carefree Key West crooner clinched a season-long deal to rename Dolphin Stadium LandShark Stadium after the Busch beer that bears his Margaritaville label.
Players haven't disclosed the terms of the deal, but it's been reported that the short-term arrangement is based on in-kind payments: Buffett appearances and other marketing opportunities in exchange for the new, temporary stadium signage.
"I think this is something that people are going to see more of in the future," Mr. Anderson said, although the days of lucrative, longer-term deals are "absolutely not" gone for good.
"I don't think they're over. I think they're kind of quiet right now," he said.
Noted sports economist and author Andrew Zimbalist, an economics professor at Smith College in Massachusetts, said the same.
Companies spending lavishly to promote themselves — a form of what he called "conspicuous consumption" — "is now seen in bad taste because of the difficulty of the economic times," he said.
But that doesn't mean it will forever stay out of vogue.
"It will pick up as the economy picks up," Dr. Zimbalist predicted, though "it's going to be a much more subdued market."
Regardless of the economy, a deal for the Marlins in Miami would never equal that of the Mets in New York, he said.
"In any event, you would not find a $400 million deal in Miami," he said. "That is something that only could have happened in New York and with a financials company."
But by 2012, when the new, 37,000-capacity, retractable-roof Miami Marlins stadium is expected to open at the site of the old Orange Bowl, the team could have a shot at landing a deal, Dr. Zimbalist said — though prospects are not nearly as sweet as before the downturn.
"I would be very surprised if there was a deal that exceeded $2 million to $3 million annually over a 10-year period" for the Marlins, he said. "Because of the market, I just don't think the advertising market is going to be strong enough. I think there's going to be some residual cold feet."
But to what degree?
That's the big debate in the marketing world now, said Barbara E. Kahn, marketing expert and dean of the University of Miami's School of Business Administration.
The question, she said, is whether we're seeing a reset — a time when assumptions remain the same but behavior is different because of the economy — or a complete paradigm shift.
Considering public outcry after companies that received federal bailout funds paid employee bonuses, "you've seen a little hint of, this is more than just a reset," Dr. Kahn said.
But it's tough to tell now whether business as usual will return full force when economic prosperity does.
"I don't think that we're going to unlearn the type of consumerism we've become accustomed to," she said, but the moral dimension that's come into play during the recession may stick around.
The public may accept a company doling out the big bucks to see its name on a sports venue, but people may also press to see to it that the company is also operating ethically and contributing to the greater good, she said.
"One of the most important assets a company owns is brand equity," and building that "has been shown to be a very lucrative endeavor," Dr. Kahn said. "What may happen now is, "let me just make sure its being done for the right reasons.'"
Mr. Anderson of the BrandDunk blog also predicted that big sponsorship deals will get more scrutiny in the aftermath of the recession, benefiting the corporations rather than the teams.
"But the dollars will still be significant," he said.
The planned Marlins ballpark could be a draw for companies looking for long-term exposure, and factors such as the team's notoriously low payroll and the stadium's residential location may not be deterrents, he said.
Though Little Havana isn't downtown Miami, that means little to a company based outside the county, he said — to most, Miami is Miami.
And associating the new ballpark with the old Orange Bowl could be a good move for a corporation, he said, if played carefully.
In its final years, many came to associate the O-Bowl with disrepair. But capitalizing on its long, rich history could be a boon for a company seeking recognition, Mr. Anderson said.
"The Florida Marlins, just like everyone else — there's a great deal out there."
Through the recession and potentially beyond, we could see more short-term and in-kind sports venue sponsorships like the newly announced LandShark Lager deal at Dolphin Stadium, marketing experts say.
Still, though it's unlikely naming rights contracts through the next several years will carry huge price tags, the depressed economy doesn't spell the end of long-term, lucrative deals, they predicted, forecasting hope for the Marlins in a new Little Havana ballpark.
"There's no reason to think when this economic malaise gets past usÖ some of the big stadiums that are out there won't be signing some bigger deals," said Zach Anderson, a marketing veteran who runs sports branding blog BrandDunk.com. "There will always be a market for those long-term deals."
In 2006, now-financially troubled Citigroup inked a $400 million, 20-year deal to call the new New York Mets ballpark Citi Field.
But since the economic crash, all's been fairly quiet on the sports-venue sponsorship front — until last week, when Jimmy Buffett brought Margaritaville to Miami-Dade.
The carefree Key West crooner clinched a season-long deal to rename Dolphin Stadium LandShark Stadium after the Busch beer that bears his Margaritaville label.
Players haven't disclosed the terms of the deal, but it's been reported that the short-term arrangement is based on in-kind payments: Buffett appearances and other marketing opportunities in exchange for the new, temporary stadium signage.
"I think this is something that people are going to see more of in the future," Mr. Anderson said, although the days of lucrative, longer-term deals are "absolutely not" gone for good.
"I don't think they're over. I think they're kind of quiet right now," he said.
Noted sports economist and author Andrew Zimbalist, an economics professor at Smith College in Massachusetts, said the same.
Companies spending lavishly to promote themselves — a form of what he called "conspicuous consumption" — "is now seen in bad taste because of the difficulty of the economic times," he said.
But that doesn't mean it will forever stay out of vogue.
"It will pick up as the economy picks up," Dr. Zimbalist predicted, though "it's going to be a much more subdued market."
Regardless of the economy, a deal for the Marlins in Miami would never equal that of the Mets in New York, he said.
"In any event, you would not find a $400 million deal in Miami," he said. "That is something that only could have happened in New York and with a financials company."
But by 2012, when the new, 37,000-capacity, retractable-roof Miami Marlins stadium is expected to open at the site of the old Orange Bowl, the team could have a shot at landing a deal, Dr. Zimbalist said — though prospects are not nearly as sweet as before the downturn.
"I would be very surprised if there was a deal that exceeded $2 million to $3 million annually over a 10-year period" for the Marlins, he said. "Because of the market, I just don't think the advertising market is going to be strong enough. I think there's going to be some residual cold feet."
But to what degree?
That's the big debate in the marketing world now, said Barbara E. Kahn, marketing expert and dean of the University of Miami's School of Business Administration.
The question, she said, is whether we're seeing a reset — a time when assumptions remain the same but behavior is different because of the economy — or a complete paradigm shift.
Considering public outcry after companies that received federal bailout funds paid employee bonuses, "you've seen a little hint of, this is more than just a reset," Dr. Kahn said.
But it's tough to tell now whether business as usual will return full force when economic prosperity does.
"I don't think that we're going to unlearn the type of consumerism we've become accustomed to," she said, but the moral dimension that's come into play during the recession may stick around.
The public may accept a company doling out the big bucks to see its name on a sports venue, but people may also press to see to it that the company is also operating ethically and contributing to the greater good, she said.
"One of the most important assets a company owns is brand equity," and building that "has been shown to be a very lucrative endeavor," Dr. Kahn said. "What may happen now is, "let me just make sure its being done for the right reasons.'"
Mr. Anderson of the BrandDunk blog also predicted that big sponsorship deals will get more scrutiny in the aftermath of the recession, benefiting the corporations rather than the teams.
"But the dollars will still be significant," he said.
The planned Marlins ballpark could be a draw for companies looking for long-term exposure, and factors such as the team's notoriously low payroll and the stadium's residential location may not be deterrents, he said.
Though Little Havana isn't downtown Miami, that means little to a company based outside the county, he said — to most, Miami is Miami.
And associating the new ballpark with the old Orange Bowl could be a good move for a corporation, he said, if played carefully.
In its final years, many came to associate the O-Bowl with disrepair. But capitalizing on its long, rich history could be a boon for a company seeking recognition, Mr. Anderson said.
"The Florida Marlins, just like everyone else — there's a great deal out there."
Wednesday, April 29, 2009
Rating agencies to assess bond proposal for Florida Marlins stadium
Rating agencies are assessing Miami-Dade's plan to sell $563 million in bonds to pay for Marlins stadium construction.
By MATTHEW HAGGMAN
mhaggman@MiamiHerald.com
With votes clearing the way for a new Florida Marlins ballpark done, the final hurdle before construction now begins: borrowing the money to pay for it.
On Tuesday and again Wednesday, county leaders are meeting with rating agencies that will assess Miami-Dade County's financial condition and its plan to sell $563 million in bonds to pay for construction of the Little Havana stadium and refinance existing county debt.
The three agencies -- Fitch, S&P, and Moodys -- are expected to rate the bond proposal before the end of next month. County Manager George Burgess said the county then plans to ``go to market in either late May or early June, at which point we will know if we can sell all the bonds at the right price.''
After July 1, none of the parties -- the county, the city of Miami or the Marlins -- can back out of the financing plan to build the $634 million stadium. The city and the county are paying more than 80 percent of the stadium costs; the Marlins will contribute $120 million and repay a $35 million county loan.
The meetings with financial ratings agencies come as the bond market, which seized up earlier this year amid a severe credit crunch, is beginning to ease.
Last week, Miami-Dade Aviation sold $600 million worth of bonds with interest rates ranging from 3 to 5.75 percent to fund airport construction.
On the stadium, the county has capped the interest rate it's willing to pay on most of the bonds at 7.5 percent.
One potential concern involves the so-called bed taxes that will repay bond investors. Amid the ongoing recession, hotel-tax revenues plunged as much as 22 percent in February. If there aren't sufficient tourist taxes, county commissioners could be forced to dip into the general fund, which pays for services like police.
''It's rolling the dice,'' Miami-Dade Commissioner Carlos Gimenez said earlier this month.
Last week, Miami commissioners approved the stadium's site and building plans, a month after city and county leaders approved the larger ballpark agreement.
By MATTHEW HAGGMAN
mhaggman@MiamiHerald.com
With votes clearing the way for a new Florida Marlins ballpark done, the final hurdle before construction now begins: borrowing the money to pay for it.
On Tuesday and again Wednesday, county leaders are meeting with rating agencies that will assess Miami-Dade County's financial condition and its plan to sell $563 million in bonds to pay for construction of the Little Havana stadium and refinance existing county debt.
The three agencies -- Fitch, S&P, and Moodys -- are expected to rate the bond proposal before the end of next month. County Manager George Burgess said the county then plans to ``go to market in either late May or early June, at which point we will know if we can sell all the bonds at the right price.''
After July 1, none of the parties -- the county, the city of Miami or the Marlins -- can back out of the financing plan to build the $634 million stadium. The city and the county are paying more than 80 percent of the stadium costs; the Marlins will contribute $120 million and repay a $35 million county loan.
The meetings with financial ratings agencies come as the bond market, which seized up earlier this year amid a severe credit crunch, is beginning to ease.
Last week, Miami-Dade Aviation sold $600 million worth of bonds with interest rates ranging from 3 to 5.75 percent to fund airport construction.
On the stadium, the county has capped the interest rate it's willing to pay on most of the bonds at 7.5 percent.
One potential concern involves the so-called bed taxes that will repay bond investors. Amid the ongoing recession, hotel-tax revenues plunged as much as 22 percent in February. If there aren't sufficient tourist taxes, county commissioners could be forced to dip into the general fund, which pays for services like police.
''It's rolling the dice,'' Miami-Dade Commissioner Carlos Gimenez said earlier this month.
Last week, Miami commissioners approved the stadium's site and building plans, a month after city and county leaders approved the larger ballpark agreement.
Saturday, April 18, 2009
Marlins ballpark garage funding readied
South Florida Business Journal - by Oscar Pedro Musibay
As much as $9 million from Miami’s general fund reserve could soon be available to city officials to cover preconstruction costs on the Florida Marlins ballpark garage.
On April 23, city commissioners are expected to consider approving the $9 million advance, which would be paid back in January using proceeds from the city parking garage bond. But, that bond has yet to be finalized.
The proposal has at least one city commissioner worried.
Marc Sarnoff said he was concerned about drawing any money from the reserve for the garage.
“It concerns me if you go to the reserve whenever you want to do something and pay it back with bond dollars,” said Sarnoff, who didn’t know about the plan’s details until a reporter notified him.
“What if the bond market changes? What if it becomes implausible to sell the bonds?” he asked. “It would concern me to put any of the Marlins tab on the general fund or the general fund reserve.”
Sarnoff was among those city and county commissioners who opposed using the general fund as a backstop if dedicated revenue streams for the bond fell short.
Miami’s chief financial officer, Larry Spring, said the city cannot use any of the money, but wants it available because it needs to get the garage project started.
To that end, commissioners next week are expected to sign a contract with Leo A Daly Co. to provide architectural and engineering services, and cap costs at $4.9 million.
Spring said there is precedent for the advance. The city received a similar advance when it asked for $25 million from $150 million in street bonds last year. The city only used about $300,000 of the $25 million, he said.
But, the ballpark garage project may be a different situation because the city has a few financial obligations tied to the project. In addition to paying for the $94 million parking garage, Miami has committed to covering half of the $25 million in infrastructure costs and contributing $13 million to the $640 million ballpark.
Spring called the proposed advance “another tool or vehicle that cities use to be able to move ahead with large scale capital projects.”
Spring affirmed that he is not backing off a pledge he, City Manager Pete Hernandez and Miami-Dade County Manager George Burgess made not to tap into their respective general funds to cover stadium costs. He said the city cannot use any of the general fund reserves, which is at about $94 million. If it does, it will use bond funds to pay back the money, he said.
Spring used this example: “I’m borrowing money from my savings account because I know my income tax check is coming next week.”
The city has $8.6 million in tax revenue tied to the Orange Bowl, which was demolished to make way for the new Marlins ballpark. The city is supposed to receive an additional $8 million from the Miami Exhibition and Sports Authority next week, with both amounts slated to cover the city’s $13 million contribution, Spring said.
The city is pledging tourist taxes as a revenue stream for the garage bond, and the city’s general fund as a backstop. The county is using the same strategy to pay for its majority stake in the project.
The general fund backstop was a point of contention for a few city and county commissioners who voted against agreements that, in part, laid out the ballpark’s financing plan. Commissioners feared that if tourist dollars continued to decline, local government would make up for the shortfall with general fund dollars.
Spring said that if the bond didn’t sell, the city would use the tourism and sports taxes to pay back the general fund reserve.
As much as $9 million from Miami’s general fund reserve could soon be available to city officials to cover preconstruction costs on the Florida Marlins ballpark garage.
On April 23, city commissioners are expected to consider approving the $9 million advance, which would be paid back in January using proceeds from the city parking garage bond. But, that bond has yet to be finalized.
The proposal has at least one city commissioner worried.
Marc Sarnoff said he was concerned about drawing any money from the reserve for the garage.
“It concerns me if you go to the reserve whenever you want to do something and pay it back with bond dollars,” said Sarnoff, who didn’t know about the plan’s details until a reporter notified him.
“What if the bond market changes? What if it becomes implausible to sell the bonds?” he asked. “It would concern me to put any of the Marlins tab on the general fund or the general fund reserve.”
Sarnoff was among those city and county commissioners who opposed using the general fund as a backstop if dedicated revenue streams for the bond fell short.
Miami’s chief financial officer, Larry Spring, said the city cannot use any of the money, but wants it available because it needs to get the garage project started.
To that end, commissioners next week are expected to sign a contract with Leo A Daly Co. to provide architectural and engineering services, and cap costs at $4.9 million.
Spring said there is precedent for the advance. The city received a similar advance when it asked for $25 million from $150 million in street bonds last year. The city only used about $300,000 of the $25 million, he said.
But, the ballpark garage project may be a different situation because the city has a few financial obligations tied to the project. In addition to paying for the $94 million parking garage, Miami has committed to covering half of the $25 million in infrastructure costs and contributing $13 million to the $640 million ballpark.
Spring called the proposed advance “another tool or vehicle that cities use to be able to move ahead with large scale capital projects.”
Spring affirmed that he is not backing off a pledge he, City Manager Pete Hernandez and Miami-Dade County Manager George Burgess made not to tap into their respective general funds to cover stadium costs. He said the city cannot use any of the general fund reserves, which is at about $94 million. If it does, it will use bond funds to pay back the money, he said.
Spring used this example: “I’m borrowing money from my savings account because I know my income tax check is coming next week.”
The city has $8.6 million in tax revenue tied to the Orange Bowl, which was demolished to make way for the new Marlins ballpark. The city is supposed to receive an additional $8 million from the Miami Exhibition and Sports Authority next week, with both amounts slated to cover the city’s $13 million contribution, Spring said.
The city is pledging tourist taxes as a revenue stream for the garage bond, and the city’s general fund as a backstop. The county is using the same strategy to pay for its majority stake in the project.
The general fund backstop was a point of contention for a few city and county commissioners who voted against agreements that, in part, laid out the ballpark’s financing plan. Commissioners feared that if tourist dollars continued to decline, local government would make up for the shortfall with general fund dollars.
Spring said that if the bond didn’t sell, the city would use the tourism and sports taxes to pay back the general fund reserve.
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