Post by mikecubs on Feb 19, 2014 15:11:18 GMT -6
Panthers bailout gets initial nod from county
Amount of tourist-tax help yet to be negotiated for struggling hockey team
A majority of Broward County commissioners say they support a bailout of the Florida Panthers, arguing the county would be in a financial bind if the National Hockey League team moves away.
The county commission support, voiced informally Tuesday for the first time at a public workshop, ranged from tepid to enthusiastic. But the consensus was clear.
At least six of the eight commissioners who will be voting on the deal support giving an undetermined amount of additional taxes collected from tourists to the Panthers, which leases and operates the county's BB&T Center in Sunrise. The team is asking for an additional $80 million.
The ninth commissioner, Stacy Ritter, can't vote on the proposal because her husband is a lobbyist for the team.
One significant element to the Panthers' proposal, a request for development rights to 22 acres of county land next to the arena, will be separated from the request to give the team additional tax funds, and will take a slower track, commissioners agreed Tuesday.
The arena operations — concerts and shows on the 321 nights the Panthers aren't playing — have netted the Panthers $127.5 million in profits over the 16 years in which the building has been open, county officials said. Last year, for example, the arena netted $9 million, the county auditor said.
But those profits are not enough to balance the huge losses — $30 million a year — the hockey team suffers, said Panthers President and CEO Michael Yormark.
We need help,'' he said.
"We're losing $100,000 a day,'' said Panthers co-owner Doug Cifu, who with Vinnie Viola became the team's fifth owner in September, with a $250 million purchase. "So where I sit, time is of the essence.''
Cifu said if it were his operation, he'd have an agreement put to paper in one day.
But Broward County Mayor Barbara Sharief told county staff to take the next two to three months to forge a "palatable'' deal.
Commissioners said Tuesday they'd consider using tourist taxes to pick up part of the Panthers' annual debt payments and property insurance on the arena. But they wanted the county to partake in any financial success.
"My vision of a partnership is there's a sharing of the responsibility and a sharing of the benefits, of the profits,'' said Commissioner Tim Ryan. "We had an expectation, the county did, maybe it was unrealistic, that at this juncture we would have received $76 million in profits, where we've received $331,000.''
"I am willing to absolutely give relief,'' said Commissioner Lois Wexler. "Am I willing to give what you're asking for? No, I'm not.''
Commissioners Dale Holness, Marty Kiar, Kristin Jacobs and Sharief expressed enthusiastic support for a deal of some kind, Ryan and Wexler were supportive but want significant changes to the deal, while commissioners Chip LaMarca and Sue Gunzburger didn't stake out clear positions.
The arena was built for the team in the 1990s, funded largely with a two percent tourist tax paid by hotel guests on Broward County's coast. That tax now generates $10 million more than the county needds to pay arena debt each year.
Some hoteliers are against the Panthers' proposal, because they don't want to see millions diverted from tourism marketing and beach rebuilding. Also opposed are the cities of Hollywood, Plantation and Deerfield Beach, and the town of Davie as well as the Florida Restaurant and Lodging Association.
The arena generates fewer than 2 percent of the hotel stays in the county, said Nicki Grossman, president of the Greater Fort Lauderdale Convention & Visitors Bureau.
County Auditor Evan Lukic said Tuesday he's concerned that the county's help would provide an "immediate financial windfall' to the team's owner, and eliminating debt payments would remove any financial penalty for the team to one day break its lease and move away.
The team is contractually obligated to play in the arena until 2028, but the fear that the panthers would leave motivated commissioners Tuesday.
The outstanding debt on the arena is $225.1 million. Right now, the county pays $8 million a year toward the debt and is being asked to pay the Panthers' $4.5 million annual contribution for the remaining 14 years.
If the team left, the county might have to pick up $2 million a year in a state sales tax rebate tied to the presence of a professional sports team, Deputy County Administrator Rob Hernandez said.
Cifu said the Panthers are not threatening to leave.
"I just got here. We didn't come with the intent to relocate this franchise,'' he said. "... Vinnie and I bought this team to win the Stanley Cup.. We are here to win in South Florida and we're here to stay.''
www.sun-sentinel.com/news/broward/fl-panthers-plea-broward-20140218,0,2873358.story
Amount of tourist-tax help yet to be negotiated for struggling hockey team
A majority of Broward County commissioners say they support a bailout of the Florida Panthers, arguing the county would be in a financial bind if the National Hockey League team moves away.
The county commission support, voiced informally Tuesday for the first time at a public workshop, ranged from tepid to enthusiastic. But the consensus was clear.
At least six of the eight commissioners who will be voting on the deal support giving an undetermined amount of additional taxes collected from tourists to the Panthers, which leases and operates the county's BB&T Center in Sunrise. The team is asking for an additional $80 million.
The ninth commissioner, Stacy Ritter, can't vote on the proposal because her husband is a lobbyist for the team.
One significant element to the Panthers' proposal, a request for development rights to 22 acres of county land next to the arena, will be separated from the request to give the team additional tax funds, and will take a slower track, commissioners agreed Tuesday.
The arena operations — concerts and shows on the 321 nights the Panthers aren't playing — have netted the Panthers $127.5 million in profits over the 16 years in which the building has been open, county officials said. Last year, for example, the arena netted $9 million, the county auditor said.
But those profits are not enough to balance the huge losses — $30 million a year — the hockey team suffers, said Panthers President and CEO Michael Yormark.
We need help,'' he said.
"We're losing $100,000 a day,'' said Panthers co-owner Doug Cifu, who with Vinnie Viola became the team's fifth owner in September, with a $250 million purchase. "So where I sit, time is of the essence.''
Cifu said if it were his operation, he'd have an agreement put to paper in one day.
But Broward County Mayor Barbara Sharief told county staff to take the next two to three months to forge a "palatable'' deal.
Commissioners said Tuesday they'd consider using tourist taxes to pick up part of the Panthers' annual debt payments and property insurance on the arena. But they wanted the county to partake in any financial success.
"My vision of a partnership is there's a sharing of the responsibility and a sharing of the benefits, of the profits,'' said Commissioner Tim Ryan. "We had an expectation, the county did, maybe it was unrealistic, that at this juncture we would have received $76 million in profits, where we've received $331,000.''
"I am willing to absolutely give relief,'' said Commissioner Lois Wexler. "Am I willing to give what you're asking for? No, I'm not.''
Commissioners Dale Holness, Marty Kiar, Kristin Jacobs and Sharief expressed enthusiastic support for a deal of some kind, Ryan and Wexler were supportive but want significant changes to the deal, while commissioners Chip LaMarca and Sue Gunzburger didn't stake out clear positions.
The arena was built for the team in the 1990s, funded largely with a two percent tourist tax paid by hotel guests on Broward County's coast. That tax now generates $10 million more than the county needds to pay arena debt each year.
Some hoteliers are against the Panthers' proposal, because they don't want to see millions diverted from tourism marketing and beach rebuilding. Also opposed are the cities of Hollywood, Plantation and Deerfield Beach, and the town of Davie as well as the Florida Restaurant and Lodging Association.
The arena generates fewer than 2 percent of the hotel stays in the county, said Nicki Grossman, president of the Greater Fort Lauderdale Convention & Visitors Bureau.
County Auditor Evan Lukic said Tuesday he's concerned that the county's help would provide an "immediate financial windfall' to the team's owner, and eliminating debt payments would remove any financial penalty for the team to one day break its lease and move away.
The team is contractually obligated to play in the arena until 2028, but the fear that the panthers would leave motivated commissioners Tuesday.
The outstanding debt on the arena is $225.1 million. Right now, the county pays $8 million a year toward the debt and is being asked to pay the Panthers' $4.5 million annual contribution for the remaining 14 years.
If the team left, the county might have to pick up $2 million a year in a state sales tax rebate tied to the presence of a professional sports team, Deputy County Administrator Rob Hernandez said.
Cifu said the Panthers are not threatening to leave.
"I just got here. We didn't come with the intent to relocate this franchise,'' he said. "... Vinnie and I bought this team to win the Stanley Cup.. We are here to win in South Florida and we're here to stay.''
www.sun-sentinel.com/news/broward/fl-panthers-plea-broward-20140218,0,2873358.story
