Taxpayers Must Pay If BankAtlantic Center Suffers Damage
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| Taxpayers Must Pay If BankAtlantic Center Damaged |
If a hurricane were to destroy the Broward County (FL)-owned BankAtlantic Center, county taxpayers would "be on the hook for any damage over $150[M] because the arena is underinsured," according to Dan Christensen of the MIAMI HERALD. The team's operating agreement with the county requires Arena Operating Company Ltd. (AOC) to "buy insurance for the full replacement value" of the arena, and the estimated cost of a rebuild is "upward of $300[M]." But with AOC "complaining it can't find full coverage at a reasonable price -- or any price -- [county] commissioners voted without debate this month to reduce the insurance requirement." Commissioner Sue Gunzburger: "If we want to keep an operator in there we had to do what's necessary." Christensen notes insurance coverage for the arena this year will cost $2.6M for $15M in windstorm, $75M in flood and $284.7M in "all other perils coverage." The NHL Panthers in '06 and '07 paid more than $3M annually for "less coverage" on the arena." It is unclear "precisely how much risk the commission -- and public -- have taken on by lowering the coverage limits." Meanwhile, there is a "tussle over who should pay to install $1.7[M] in roof reinforcements necessary to bring the arena up to current hurricane codes." County Finance Dir Michael Geoghegan said an insurance analysis indicated the "roof's coming off" in a Category 3 hurricane. Geoghegan: "It would be a public relations disaster if the roof came off. It is our building, but we feel [Panthers parent company Sunrise Sports & Entertainment (SSE)] are responsible to do that." Geoghegan said that SSE "should pay because the fix is a repair, not an improvement," and that the contract "obliges the team's owners to make repairs." But SSE "won't concede a fix is necessary" (MIAMI HERALD, 5/29).
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