Published by: THE MIAMI HERALD
Published: 3-26-09
Written by: MATTHEW HAGGMAN AND CHARLES RABIN

With a new stadium approved, the Florida Marlins and government officials still have much to do to break ground by summer, including borrowing the money for construction.

Fresh from arguably the biggest victory in team history — approval for a stadium to call its own — the Florida Marlins still must clear a string of obstacles before ground can be broken this summer.

The biggest obstacle: borrowing more than $300 million that will go toward construction of the 37,000-seat stadium in Little Havana. To do it, the county must sell bonds — backed by the promise of payment from tourist taxes — in a market roiled by the worst credit crisis in decades

Adding to the urgency, the bond sale needs to be well under way before the planned groundbreaking this summer. If the county determines it can't sell at the right price, the stadium deal can still be killed by July 1. But after that, there's no turning back.

Securing stadium funding is one of several important steps the Marlins and government officials must take before the new stadium begins to rise on the former Orange Bowl grounds.

But during the lengthy county commission debate Monday, the focus was on money. Commissioners repeatedly quizzed County Mayor Carlos Alvarez and Manager George Burgess about whether they will be able to win acceptable financing terms in a bond market that's already proven troublesome for government funding.

Citing a paralyzed financial market, Miami-Dade Aviation announced in January that it was deferring a planned February offering of bonds to pay for massive construction at Miami International Airport.

“Are we not afraid that we may encounter a similar reality when we attempt to sell the bonds necessary for construction of this stadium?” asked Commissioner Audrey Edmonson, who ultimately voted with the 9-4 majority supporting the deal.

Alvarez and Burgess said they didn't think so, but acknowledged they don't have a crystal ball.

“We will only know how well we’ll do in the market when we go into the market,” said Burgess, adding: “We have not received any indications that we won’t be successful.”

Burgess said the county is set to start meeting with credit-rating agencies and underwriters to price and sell the bonds. He rejected the possibility that the county could be left in the lurch, unable to obtain sufficient bond financing as the deadline approaches.

“We will know before July 1, if not June 1,” said Burgess.

In one hopeful sign, Miami-Dade Aviation announced that it has decided to sell the $600 million in bonds it deferred earlier this year.

FINANCING ASIDE . . .

On another front, the team and its architectural firm, HOK, are set to go before Miami’s Planning Advisory Board as part of an effort to win building approvals for the stadium, four garages and six surface parking lots on the 42-acre site.

That meeting, set for April 1, will be followed by a final public hearing and vote on the building plans by the Miami Commission — which last week approved the stadium funding, construction and operating deal by a slim 3-2 vote.

The city commission review will include everything from traffic flows into the stadium and pedestrian access to the size of public plazas around the facility.

Some say the design of the garages flanking the ballpark will be a key element in determining whether the stadium connects and activates the surrounding neighborhood — specifically, whether the garages will deliver enlivened streets with ground-floor retail spaces, including bars and restaurants at its base, or simply walls off the ballpark from adjacent blocks.

With commission approval in hand, Marlins officials must obtain a permit from the city’s building department to start foundation work. Permits for erecting the stadium structure and installing innards like electrical and plumbing work will follow.

County officials are also seeking a tax exemption for the project from the state's Department of Revenue. With that, the Marlins can buy building materials like screws, drywall and steel tax-free.

Another coming task: Filling the thousands of jobs needed to erect the stadium in time for a planned 2012 opening.

Over the next 30 days, the Marlins are conducting community-outreach meetings to explain the type of jobs available. In all, the team will offer 65 different bid packages for work, ranging from installing the seats in the stadium to landscaping around the site.

“It’s full rip ahead; we’re focusing on getting everything ready to start construction,“ said Claude Delorme, Marlins senior vice president for stadium development, who said work has been under way for more than a year. “My objective is July 1.”

A TROUBLED MARKET

Still, bond financing remains a paramount issue.

Critics have questioned whether hotel taxes — which dropped 17 percent last month — will be enough to meet bond payments in future years. Another question is whether the government will be able to raise sufficient funds ‘ on acceptable terms — by selling bonds in the current market.

In December, the county’s financial advisor, The PFM Group in Coral Gables, warned that “current market conditions are not conducive to any of the financings contemplated.” The firm warned in a Dec. 19 memo to the Miami-Dade County Finance Department that “a substantial dislocation has occurred in the municipal market over the past year.”

Since then, said Leo Guzman, president of securities firm Guzman & Co. in Coral Gables, “there has been a very marginal improvement, but conditions are still far from normal.”

Miami-Dade Aviation's chief financial officer, Anne Syrcle Lee, was more upbeat, saying MIA expects to close on its bond sale by early May.

“The market appears to be thawing,” Lee said. “Things are moving again.”



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