Broward County has a commitment "in writing" from the NHL to
move the Panthers north from Miami into a new arena, although
there are several conditions to be met, according to this
morning's MIAMI HERALD. Highlights from the "letter of intent" -
- Most of the $15M a year mortgage on the new building will be
paid by a 2% increase in the hotel bed tax and a $2M-a-year state
sales tax rebate. The county will cover the remaining $5M
through arena profits, which it will take out before the teams
get a cut. In exchange for reducing risk, the county has given
up a share of the profits -- about 25% of the total -- than it
had claimed before. After the teams get $15-20M (depending on
one tenant or two), the county will get 20% of the remainder.
The team's rent will be only 5% of ticket sales, with 25-year
leases expected. A new owner will have some say in location,
although the NHL prefers the Sawgrass Mills site in Sunrise
(Prater & Rafinksi, MIAMI HERALD, 2/23).
TENANT NO. 1: The county will have to wait for a new owner
to buy the Panthers before starting negotiations. The NHL has
agreed to find a buyer for the team by March 28. Mentioned: Bud
Paxson, Sony Corp., Bruce Frey, Metromedia, and Yankees Owner
George Steinbrenner (MIAMI HERALD, 2/23).
TENANT NO. 2? Heat officials have begun "serious
negotiations" with Broward officials, but they would not comment
on yesterday's development. The Heat and Panthers would split
profits in the new building. The letter sets a March 21 deadline
for a Heat decision (MIAMI HERALD, 2/23).
