Jun 18, 2009 6:24 pm US/Eastern
Marlins Stadium Deal Still Facing Hurdles
MIAMI (CBS4) ―
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New rendering of the Florida Marlins Stadium to be built on the site of the now-demolished Orange Bowl.
Urban Design Review Board/CBS
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.
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