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Workshop Agenda

Workshop Agenda. Mayor’s Welcome & Introductions County Administrator’s Opening Remarks Presentation by Sunrise Sports & Entertainment County Administrator’s Report County Auditor’s Report Comments: Tourist Development Council and Florida Restaurant & Lodging Association Board Discussion.

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Workshop Agenda

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  1. Workshop Agenda • Mayor’s Welcome & Introductions • County Administrator’s Opening Remarks • Presentation by Sunrise Sports & Entertainment • County Administrator’s Report • County Auditor’s Report • Comments: Tourist Development Council and Florida Restaurant & Lodging Association • Board Discussion

  2. Background

  3. Historical Overview • How did we end up in the arena business? • 1988: Opening of Miami Arena and closure of Sportatorium • 1988: Miami Heat begins play at Miami Arena • 1992: Hockey franchise awarded • 1993: Florida Panthers begin play at Miami Arena • 1994: Panthers and Heat seek new venues • 1995: Blockbuster Park Concept • 1996: Sunrise site selected

  4. Historical Overview, continued • Why? According to Sun-Sentinel articles, • “Community maturity” • Economic development and tourism: “…reasons beyond sunshine, bikinis and early bird specials to visit or move to Broward.” • “Our own” venue • Separate identity • Major league status: “two hundred feet of ice may do what 23 miles of sand have never quite done: raise Broward County onto the list of big-league metropolitan areas.”

  5. Historical Overview, continued • Why Hockey? • Two sport strategy for new arena • Panthers eligible for state sales tax rebate • State sales tax rebate needed for financing • NBA and NHL would not relocate teams to the Arena unless their team was the sole major league sports tenant. • Miami Heat decided it wanted its own arena

  6. The Arena • Major Sports and Entertainment Venue • Second largest in the southeastern U.S. • Among the largest in NHL (fan capacity) • Designed for professional hockey and events that attract large audiences Panthers= anchor tenant

  7. The Arena, continued • Arena Site • +/- 140 acres • Six parcels • +/- 7,500 parking spaces • Park and Ride Facility

  8. The Arena Partnership

  9. AOC Annual “Rent”

  10. Facility “Profits”

  11. “Profit Sharing” Distribution

  12. Broward County’s Support for the Florida Panthers 1993 - Present

  13. County Support for the Panthers • 1996: Arena Development • Established public funding source for arena debt • Land Purchase • Arena Construction Financing

  14. County Support for the Panthers, continued • 1999-2012: Series of loans and refinancing transactions, including – 2004 Swaption 2006 Refinancing

  15. County Support for the Panthers, continued • Funded Facility Improvements • Applied “swaption savings” (2004) • Lower Bowl LED Advertising Signage: $1.75 million • Club Level All-Inclusive Club: $1.3 million • Absolut Bar and Cruzan Rum Lounge: $175,000 • Provided a $4.2 million grant for replacement scoreboard and control room upgrades (2013) • Total = $7,425,0000

  16. Research Findings

  17. Team Comparisons • Anaheim Ducks • Arizona Coyotes • Buffalo Sabres • Carolina Hurricanes • Columbus Blue Jackets • Minnesota Wild • Nashville Predators • Pittsburgh Penguins • San Jose Sharks • Tampa Bay Lightning

  18. Team Comparisons, continued

  19. Team Comparisons, continued

  20. Arena Development Trends • Sports venues as entertainment and shopping destinations • Sports venues as development catalysts • Sports venues as “Live, Work, Play and Shop Districts” or master-planned communities

  21. Entertainment Destinations Xfinity Live, Philadelphia Patriot Place, Foxborough

  22. Redevelopment Catalysts Sprint Center, Kansas City, MO. Power & Light District

  23. Master Planned Communities LA Live!, Los Angeles Arena District, Columbus

  24. Can a Major Arena Succeed without Pro Sports? • Four major venues without professional sports • U.S. Bank, Cincinnati • Sprint Center, Kansas City • BOK Center, Tulsa • Jacksonville Veterans Memorial Arena, J’ville

  25. Can a Major Arena Succeed without Pro Sports? • Five former NBA or NHL Venues • Phillips Arena, Atlanta • Izod Center, New Jersey • XL Center, Hartford • Key Arena, Seattle • Valley View Casino Center, San Diego

  26. Can a Major Arena Succeed without Pro Sports? • Three repurposed venues • The Forum • The Pyramid Arena • The Summit

  27. Can a Major Arena Succeed without Pro Sports? • Five awaiting demolition • Astrodome, Houston • Kemper Arena, KCMO • Nassau Veterans Memorial Coliseum • Los Angeles Memorial Sports Arena • Silverdome, Pontiac

  28. Can a Major Arena Succeed without Pro Sports? • Gone and Forgotten • Miami Arena • Amway Arena, Orlando • 11 Others • Post Arena Uses • Vacant Land • Parking • Convention Centers • Retail • Other development

  29. Tourist Development Tax Overview

  30. TDT Background • County currently levies 5% of TDT on hotel room rental and other short-term rental lodging • $46 million is budgeted in FY14

  31. Statutory Uses for TDT • Marketing & tourism promotion • Sports facilities • Convention Center • Convention & Visitors Bureau • Beach renourishment • Museums, auditoriums and other cultural facilities; and • Other authorized uses

  32. Remaining Fund Balance(as of October 1, 2013)

  33. Remaining Fund Balance, continued

  34. Recurring and One-Time Revenues Uses

  35. Recurring and One-Time Revenues Uses, continued

  36. Recurring and One-Time Revenues Uses, continued

  37. Key Considerations

  38. What’s at Stake for Broward? • $225.1 million in total outstanding debt obligations • Long-term viability of the Arena and site • Image and Reputation • Viability of the Panthers hockey team

  39. Specific Requests • Rebate SSE’s annual contribution to arena bond payments by using $4.5 million of the County’s tourist development tax proceeds to fund arena operations. • Cap SSE’s costs for the arena’s annual windstorm insurance premiums to the first $1 million of premiums with the County responsible for all additional costs.

  40. Specific Requests, continued • Require the County to pay the first $500,000 of arena repairs and maintenance annually. • Eliminate the capital expenditure reserve. • Limit SSE’s annual contribution to the Renewal and Replacement account to $250,000. • Modify the classification of certain operating revenues and expenses for the purpose of revenue sharing distribution.

  41. Specific Requests, continued • Eliminate Operating Reserve account. • Delete monthly financial reporting requirements and provide additional time for the submission of quarterly and annual financial reports and statements. • Limit the County’s right to audit the AOC’s financial records to twice yearly. • Convert the Operating Agreement to a Lease.

  42. Specific Requests, continued • Revise definitions, replace or eliminate outdated provisions, and add clarifying language. • Authorize the use of Seat Use Charges for debt payments associated with roadway improvements (Sawgrass Expressway ramps to Panther Drive (NW 136 Av) via Pat Salerno Drive.

  43. Specific Requests, continued • Expand and raise the ADC’s certain development rights by exchanging 12 acres south of the arena for 22 acres on the north side for future development. • Develop the 22 acres as a mixed-use project with entertainment, restaurants, retail, office, casino, residential, hotel and related uses.

  44. Conclusion “The old paradigm of the stadium or arena in a sea of parking doesn’t work anymore.” Kevin Craft, “Sports and the City”

  45. Questions?

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