As part of a new deal between the Heat and Dade County
covering the financial details of a proposed $165M Biscayne Bay
arena, the team has agreed to pay $41.3M in upfront cash for
construction and an additional $837,000 a year in mortgage
payments, according to the MIAMI HERALD. A previous deal had
called for $5.5M a year toward construction and mortgage payments
from ticket sales, advertising and concessions. Under the plan,
the Heat would manage the arena, pay all expenses and keep all
profits. Most Dade County officials are pleased with the new
arrangement, characterizing it as a "major concession" by the
team and a "very healthy step forward." Heat VP Pauline Winick
believes the club's contribution makes the sides "more equal"
partners (Don Finefrock, MIAMI HERALD, 6/7).
MORE DETAILS: Dade will issue tax-exempt bonds to raise
$124M in additional construction funds, while the majority of
mortgage payments will come from hotel tax revenue. In a
"significant" change, the county now plans to pay for a $22M
parking garage next to the arena with parking revenues. The Heat
would receive such revenues after the debt is paid off. Dade has
also agreed to pay the team $6M if the county is at fault for not
meeting a '99 opening. If the delay is a third party's fault,
that number is reduced to $3M. A final vote on the deal is
expected to take place June 18 (Don Finefrock, MIAMI HERALD,
6/7).
