A development that even I didn't anticipate - Transic

http://www.sun-sentinel.com/ne...0209,0,6874520.story

Confusion reigns after bonds for Marlins stadium fall short

MATTHEW HAGGMAN | Miami Herald
3:51 AM EDT, July 1, 2009

The long-awaited sale of bonds to pay for a new baseball stadium in Little Havana fell short Tuesday, prompting a scramble at County Hall and a last-minute pledge by the Florida Marlins Get your Marlins Tickets now! to cover the difference.

Late Tuesday County Manager George Burgess told commissioners that the effort to raise $306 million by issuing bonds backed by tourist taxes on Monday and Tuesday was off by $6.2 million.

The reason for the shortfall, Burgess said, is that a portion of the bonds fetched a higher-than-expected interest rate, thereby reducing the proceeds to the county.

"It's been a long day," Burgess said. "But we are awfully, awfully close."

To fill the gap, Florida Marlins President David Samson told county commissioners Tuesday evening that the ballclub will pick up the $6.2 million difference. He pledged that the project will not be scaled back at all.

"My proposal is no change ... other than the county's contribution is going down by $6 million," said Samson.

But that change triggered questions over how the $6.2 million would be covered by the Marlins, with several commissioners asking if the ballclub would value-engineer elements out of the stadium rather invest $6.2 million into the ballpark.

Samson responded each time with a firm no, asserting that the ballpark will be built as planned.

Yet, another question: Does the revised deal between the county and baseball team require another vote by the city of Miami, the other partner in the deal?

The proposed change would require county commissioners to amend its cap on the bond interest rate. County leaders previously said the bond interest rate could not be above 7.5 percent. But a portion of the bonds were priced north of 8 percent.

"No one thought we would go above 7.5 percent. Now we are above that," said Commissioner Carlos Gimenez, a stadium critic.

But the county manager was quick to say the higher interest on some bonds doesn't mean the county pays more for the stadium or changes the payment schedule. He also said the combined rate for all bonds was less than 7.5 percent.

Still, uncertainty reigned.

"I am so confused," said Commissioner Barbara Jordan after a series of questions.

The issue became so confusing -- and anxious -- that by 8:45, County Mayor Carlos Alvarez, one of the project's prime backers, appeared at County Hall -- likely to assauge any last-minute doubts.

Commissioner Dorrin Rolle interjected at one point: "I love baseball but I don't love it so much that I'll be here all night."

By 9 p.m. the comission went into recess to allow lawyers time to draft proposed changes. County Attorney Robert Cuevas said they needed 45 minutes. But an hour and 15 minutes later neither county commissioners or the county mayor had returned to the dais.

Construction had been scheduled to start on the stadium Wednesday, with a formal groundbreaking on July 18. It was unclear Tuesday evening if that schedule was still on pace.

The stadium, eyed for opening day 2012, would have 37,000 seats and a retractable roof, representing the long-sought permanent home for a franchise that has won two World Series titles yet consistently struggles with among the lowest payrolls and attendance in baseball.

The newest debate is the latest in a project that took more than a decade to win approval from the city and county, before those green lights came earlier this year.