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BY CHARLES RABIN
crabin@MiamiHerald.com
Miami's ability to finish parking complexes for the Florida Marlins' $642 million baseball stadium on time could be threatened as the city delays going to the bond market amid a federal probe of its finances.
On the hook for $75 million worth of parking sites around the new Little Havana landmark -- a mixture of garages and surface lots totaling just under 6,000 spaces -- the city hoped to sell bonds by May 10.
Now the city is looking at May 24, at the earliest.
The prime cause of delay: The city is still awaiting the final audit of its 2009 budget by accountants McGladrey & Pullen, who say they've been delayed as extra scrutiny is brought to Miami's financial picture in light of a Securities and Exchange Commission investigation now in its fourth month.
``It's changed the risk factor,'' said lead auditor Donnovan Maginley, who said the the final audit must now undergo two additional reviews. ``Now it's a high risk.''
To keep the project on track for a 2012 opening, City Manager Carlos Migoya on Thursday will ask commissioners to approve the use of up to $4 million in funds now sitting in capital accounts -- money he said is not directed at specific projects.
The $4 million Miami wants to transfer to begin construction would go to contractor Suffolk Construction. Then, said Migoya, ``whenever we get the money from the bond, we'll bring it back to these accounts.''
The Marlins' goal is to play ball at the new park on Opening Day 2012. Construction on the parking sites is expected to take between 18 and 24 months, with the goal of completion by December 2011. But with the bond deal being pushed back, that deadline is in jeopardy.
Miami-Dade County already got a jump start on its more-than $300 million end of the deal. A Marlins contractor has erected giant columns now reaching up to the sky that will support the 37,000-seat, retractable-roof structure. Like the parking, the 33-month stadium construction project is expected to cut it close -- eyeing completion just days before the Marlins open the stadium doors.
Marlins President David Samson said he ``remains confident that the garages will be done on time and on budget.''
Though Miami must build the parking sites, the Marlins have agreed to buy almost all the spaces for an average near $10 each. Though that means the city will likely break even on the deal, it could be a boon to the ballclub, which Forbes.com said made the biggest profit in Major League Baseball in 2009 with $46.1 million.
The reason: The Marlins can resell the spaces for any price the team wishes for its 81 homes games, playoffs or events outside the season.
Migoya said the city plans to dip into two capital accounts to advance the $4 million. One of the accounts, in which $1 million will be transferred, is a combination of tourist tax dollars, ticket surcharge and Homeland Defense money that had been used in the past to maintain the torn-down Orange Bowl. The remaining $3 million comes from Sunshine State loans, money Migoya said wasn't being used but was in place for emergency infrastructure repairs.
According to work documents, the money will be used to set up temporary site utilities, excavation, underground utilities and to award the contract to build elevators.
Ironically, money transfers played a key role in the SEC probe and Mayor Tomás Regalado's decision to hire Migoya as manager to get Miami back on financial track.
Since December, the SEC has been examining whether Miami misled investors about its financial stability as it issued more than $250 million worth of bonds dating to 2006. The city was ordered to turn over all communications from top managers involving the bond deals and a separate series of $26.4 million in transfers from capital accounts used to balance the books.
Migoya made last year's budget whole by using reserves to replace money that had previously been taken out of capital accounts. That move left the city with far less of a financial cushion in an emergency.
The money Migoya is transfering is nowhere as restrictive as some of the funds the previous administration moved around -- transfers that were approved by the former administration and commissioners, including Regalado.
Still, Commissioner Frank Carollo said he wants to hear more about the two accounts the city intends to borrow from. As for going to market, Carollo, an accountant, said it would be ``ludicrous'' to sell the bonds without McGladrey & Pullen's audit.
``Government has a bad reputation when it comes to building things,'' said Carollo. ``I do not want another black eye.''
crabin@MiamiHerald.com
Miami's ability to finish parking complexes for the Florida Marlins' $642 million baseball stadium on time could be threatened as the city delays going to the bond market amid a federal probe of its finances.
On the hook for $75 million worth of parking sites around the new Little Havana landmark -- a mixture of garages and surface lots totaling just under 6,000 spaces -- the city hoped to sell bonds by May 10.
Now the city is looking at May 24, at the earliest.
The prime cause of delay: The city is still awaiting the final audit of its 2009 budget by accountants McGladrey & Pullen, who say they've been delayed as extra scrutiny is brought to Miami's financial picture in light of a Securities and Exchange Commission investigation now in its fourth month.
``It's changed the risk factor,'' said lead auditor Donnovan Maginley, who said the the final audit must now undergo two additional reviews. ``Now it's a high risk.''
To keep the project on track for a 2012 opening, City Manager Carlos Migoya on Thursday will ask commissioners to approve the use of up to $4 million in funds now sitting in capital accounts -- money he said is not directed at specific projects.
The $4 million Miami wants to transfer to begin construction would go to contractor Suffolk Construction. Then, said Migoya, ``whenever we get the money from the bond, we'll bring it back to these accounts.''
The Marlins' goal is to play ball at the new park on Opening Day 2012. Construction on the parking sites is expected to take between 18 and 24 months, with the goal of completion by December 2011. But with the bond deal being pushed back, that deadline is in jeopardy.
Miami-Dade County already got a jump start on its more-than $300 million end of the deal. A Marlins contractor has erected giant columns now reaching up to the sky that will support the 37,000-seat, retractable-roof structure. Like the parking, the 33-month stadium construction project is expected to cut it close -- eyeing completion just days before the Marlins open the stadium doors.
Marlins President David Samson said he ``remains confident that the garages will be done on time and on budget.''
Though Miami must build the parking sites, the Marlins have agreed to buy almost all the spaces for an average near $10 each. Though that means the city will likely break even on the deal, it could be a boon to the ballclub, which Forbes.com said made the biggest profit in Major League Baseball in 2009 with $46.1 million.
The reason: The Marlins can resell the spaces for any price the team wishes for its 81 homes games, playoffs or events outside the season.
Migoya said the city plans to dip into two capital accounts to advance the $4 million. One of the accounts, in which $1 million will be transferred, is a combination of tourist tax dollars, ticket surcharge and Homeland Defense money that had been used in the past to maintain the torn-down Orange Bowl. The remaining $3 million comes from Sunshine State loans, money Migoya said wasn't being used but was in place for emergency infrastructure repairs.
According to work documents, the money will be used to set up temporary site utilities, excavation, underground utilities and to award the contract to build elevators.
Ironically, money transfers played a key role in the SEC probe and Mayor Tomás Regalado's decision to hire Migoya as manager to get Miami back on financial track.
Since December, the SEC has been examining whether Miami misled investors about its financial stability as it issued more than $250 million worth of bonds dating to 2006. The city was ordered to turn over all communications from top managers involving the bond deals and a separate series of $26.4 million in transfers from capital accounts used to balance the books.
Migoya made last year's budget whole by using reserves to replace money that had previously been taken out of capital accounts. That move left the city with far less of a financial cushion in an emergency.
The money Migoya is transfering is nowhere as restrictive as some of the funds the previous administration moved around -- transfers that were approved by the former administration and commissioners, including Regalado.
Still, Commissioner Frank Carollo said he wants to hear more about the two accounts the city intends to borrow from. As for going to market, Carollo, an accountant, said it would be ``ludicrous'' to sell the bonds without McGladrey & Pullen's audit.
``Government has a bad reputation when it comes to building things,'' said Carollo. ``I do not want another black eye.''
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