How a $91 million loan on the Marlins ballpark will cost Miami-Dade $1.2 billion

[El Supremo]

Man, it's been a long time since I started a Marlins thread.

How can you turn $91 million into almost $1.2 billion? Buy some bonds from Miami-Dade County.

(snip)

Miami-Dade borrowed about $400 million in that deal by selling bonds on Wall Street. During the commission discussion on the Dolphins plan, Mayor Carlos Gimenez mentioned one set of stadium bonds worth about $90 million would cost more than $1 billion to pay back. We at the ETM thought: Can that be true? The answer: yes. See below.



The chart (if you can’t see it, try refreshing or opening this article in a different browser) lays out the debt-repayment schedule on that initial $91 million.

The first column is the money borrowed, and the small lines show the amount of principal and interest owed each month. The soaring line is a running total of how much money Miami-Dade is scheduled to pay back for the loan. It crosses the $500 million mark in 2042, and hits $1.18 billion by the time the last payment is due 2048.

Miami-Dade will use hotel-tax revenue to pay off the bonds. But payments don’t kick in until 2026. Once they do, they get very costly very quickly. The first payment, for example, totals $260,000. The fifth jumps to almost $8 million and the 10th tops $20 million. Payment No. 18 brings the big hit: $118 million comes due in 2042 alone....

http://www.miamiherald.com/2013/01/24/3199018/how-a-91million-loan-on-the-marlins.html

[Angry Dragon]

1. elected idiots meet greedy Wall Street

[Scuba]

2. +1,000

[RockaFowler]

3. And this is why there should be no public financing of stadiums

Even the Dolphins are looking for money. Stephen Ross is a multi-millionaire who can raise money for Rmoney, but not for his own stadium.

http://www.palmbeachpost.com/news/sports/football/miami-dolphins-seek-public-money-to-help-finance-s/nTwwj/

We’re not the Marlins.

Without referencing the baseball team directly, Ross and Dee said at a news conference at their stadium that they understand the furor over the recent Marlins Park deal, in which the public paid some $500 million of the $634 million cost, only to see ownership dismantle the team and backtrack on promises to fans.

The Dolphins’ leadership promised to pay for at least half of their proposed renovations, which are expected to cost $375 million to $400 million.


Hey jerks - if you can afford 1/2 of it, why not all of it.

I love my teams, but I really despise the ownership . . . of both the Marlins and Dolphins.

When Joe Robbie wanted to build a stadium, he went out and got the funds himself. He didn't ask the county to pony up a dime. Current ownership could learn something from this.

[trumad]

4. Yeah waisting money on a losing proposition is a bitch.

[RockaFowler]

5. That's funny!!