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BY CHARLES RABIN
crabin@MiamiHerald.com
When Miami commissioners agreed to bankroll the parking structure for the new Marlins stadium -- the city's key investment in the Little Havana deal -- the cost eyed was $94 million.
On Thursday, when commissioners meet to formalize funding for the parking facilities, the total anticipated bond cost will be $135 million.
City administrators say it's been clear from the start that the $94 million would rise with various ``soft costs'' like reserves.
Still, the final figure is coming as sticker shock to some.
``This is exactly what we feared,'' said Commissioner Marc Sarnoff, who voted against the stadium plan earlier this year. ``Even with soft costs, you can maybe stretch it to $110 million.''
City Manager Pete Hernandez said the $41 million beyond the projected $94 million includes $15 million in reserves and millions more for design surveys, construction management and environmental consultants.
The original plan -- cobbled together after lengthy debate in February -- called for Miami to issue bonds worth no more than $94 million to be paid off with taxes generated from hotel sales called a Convention Development Tax, or CDT.
Thursday, commissioners will be asked to support a $135 million bond offering that, while still depending on CDT funding as the main source of revenue, would use a hodge-podge of financial sources.
Included in the bond plan: $6 million if commissioners vote to make Miami an economic recovery zone, a piece of the federal stimulus plan that allows cities to issue tax-exempt bonds. Hernandez said the $6 million will make the bonds easier to sell because of their tax exempt status.
Also pledged in case there isn't enough CDT money to pay the debt: parking revenues, parking surcharge fees and general fund money that doesn't come from property tax dollars.
The Marlins are also promising to pay the city about $10 a space for parking, guaranteeing that the city's cost for the garage will be covered.
Hernandez said the bond issue is similar to other city deals except that: ``This is receiving more scrutiny because everyone is familiar with the project.''
Commissioner Tomás Regalado, who voted against the stadium, said he wouldn't support the garage vote Thursday. ``This is voodoo economics,'' said Regalado, who is running for mayor.
His challenger in the Nov. 3 mayoral race, Commission Chair Joe Sanchez, did not return calls. He voted for the stadium, which is being built in his district.
Paying for the garage is the city's prime contribution to the $620 million plan, with Miami-Dade bearing the brunt of the costs at $341 million and the Marlins pitching in $126 million and repaying the county another $35 million a year in rent. The city and county will pitch in another $24 million for infrastructure costs.
When Miami brokered the deal with the Marlins for the parking garage, it worked out a plan that the city said would cover its costs: the Marlins agreeing to pay about $10 a space for the 5,850 spaces for 30 years.
Though that protects Miami by covering construction costs over the life of the bond issue, any profit made for the sale of those parking spaces that is above $10 -- playoff or regular season games, or for any other events -- goes to the Marlins.
The Marlins hope to have the stadium completed in time for play in 2012. When complete, the renamed Miami Marlins will play in a 37,000-seat, 60-suite, retractable-roof stadium with a view of downtown and beyond.
crabin@MiamiHerald.com
When Miami commissioners agreed to bankroll the parking structure for the new Marlins stadium -- the city's key investment in the Little Havana deal -- the cost eyed was $94 million.
On Thursday, when commissioners meet to formalize funding for the parking facilities, the total anticipated bond cost will be $135 million.
City administrators say it's been clear from the start that the $94 million would rise with various ``soft costs'' like reserves.
Still, the final figure is coming as sticker shock to some.
``This is exactly what we feared,'' said Commissioner Marc Sarnoff, who voted against the stadium plan earlier this year. ``Even with soft costs, you can maybe stretch it to $110 million.''
City Manager Pete Hernandez said the $41 million beyond the projected $94 million includes $15 million in reserves and millions more for design surveys, construction management and environmental consultants.
The original plan -- cobbled together after lengthy debate in February -- called for Miami to issue bonds worth no more than $94 million to be paid off with taxes generated from hotel sales called a Convention Development Tax, or CDT.
Thursday, commissioners will be asked to support a $135 million bond offering that, while still depending on CDT funding as the main source of revenue, would use a hodge-podge of financial sources.
Included in the bond plan: $6 million if commissioners vote to make Miami an economic recovery zone, a piece of the federal stimulus plan that allows cities to issue tax-exempt bonds. Hernandez said the $6 million will make the bonds easier to sell because of their tax exempt status.
Also pledged in case there isn't enough CDT money to pay the debt: parking revenues, parking surcharge fees and general fund money that doesn't come from property tax dollars.
The Marlins are also promising to pay the city about $10 a space for parking, guaranteeing that the city's cost for the garage will be covered.
Hernandez said the bond issue is similar to other city deals except that: ``This is receiving more scrutiny because everyone is familiar with the project.''
Commissioner Tomás Regalado, who voted against the stadium, said he wouldn't support the garage vote Thursday. ``This is voodoo economics,'' said Regalado, who is running for mayor.
His challenger in the Nov. 3 mayoral race, Commission Chair Joe Sanchez, did not return calls. He voted for the stadium, which is being built in his district.
Paying for the garage is the city's prime contribution to the $620 million plan, with Miami-Dade bearing the brunt of the costs at $341 million and the Marlins pitching in $126 million and repaying the county another $35 million a year in rent. The city and county will pitch in another $24 million for infrastructure costs.
When Miami brokered the deal with the Marlins for the parking garage, it worked out a plan that the city said would cover its costs: the Marlins agreeing to pay about $10 a space for the 5,850 spaces for 30 years.
Though that protects Miami by covering construction costs over the life of the bond issue, any profit made for the sale of those parking spaces that is above $10 -- playoff or regular season games, or for any other events -- goes to the Marlins.
The Marlins hope to have the stadium completed in time for play in 2012. When complete, the renamed Miami Marlins will play in a 37,000-seat, 60-suite, retractable-roof stadium with a view of downtown and beyond.
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