Broward County Commissioners have voted in favor of a proposal to revise a long-term agreement with Sunrise Sports and Entertainment (SSE) to provide funding for upgrades and operating costs for the BB&T Center.
Under the terms of the $86 million agreement, Broward County will provide $39 million for maintenance, repair and upgrades to the 17-year-old facility, and $45.5 million to assist with operating expenses such as utility costs and insurance. An additional $1.5 million will be used to attract a high impact event. Funding will come from tourist development taxes, which are paid primarily by visitors to Broward County.
The Florida Panthers will continue to pay $5.3 million annually to reduce the debt on the Arena, contribute $500,000 annually to a County tourism marketing fund, and share revenue and profits with the County under the new terms.
Broward County will also gain development rights for property surrounding the Arena, and further protect taxpayer investment in the facility by securing an irrevocable letter of credit from SSE in the event the team defaults, files bankruptcy or relocates.
"This provides a lot of protection for Broward County. Tourism is very important. Tourism is best protected by approving this amendment to the agreement. The financial success of the Florida Panthers is going to be based on whether they win on the ice, and Broward County is not in a position to affect the Panthers win/loss record but we are in a position to protect the taxpayers' interest," said Commissioner Tim Ryan.
"We now have a letter of credit and we have development rights to a minimum of 120 acres of land that surrounds the arena. We have a termination fee that if the deal is terminated in a specified year, the Panthers pay off our debt. This deal gives us an upside to share in profits. We get a release on any threats of litigation. This is a much better deal economically then in 2014. Based on the new terms of the deal, based on the recommendations of our consultants, based on the outreach I did in district two, I will support this deal," said Commissioner Mark Bogen.
"I think that the staff here, our consultant, the Panthers organization has done nothing less than showed true leadership in providing a give and take. There were two requests that came out of the Tourist Development Council. Those two requests have been turned into reality in this contract. You listened. You delivered. I think that what we have in front of us is as good as it gets," noted Commissioner Lois Wexler.
"I believe I see many positives to this agreement in terms of the benefits to the people of Broward County, one of which is the twenty-five percent commitment to small businesses. Many of my constituents e-mailed and voiced concern about the potential loss of jobs if we don't have a team in place. I think we've negotiated the best deal for the people of Broward County," said Commissioner Dale V.C. Holness.
Vice Mayor Barbara Sharief, Commissioners Lois Wexler, Tim Ryan, Mark Bogen, and Dale V.C. Holness voted in favor of the new proposal. Broward Mayor Marty Kiar, Commissioner Chip LaMarca and Commissioner Beam Furr voted against revising the current contract.
Commissioner Chip LaMarca voiced concern about using tourist taxes that also finance beach renourishment. "I think we need to maintain this team here. We need to maintain our arena, it's our building. But, I have to support the beach and I don't think I can support this."
"We're told we can either give them the money or that they might declare bankruptcy and that we're left holding an empty arena. I'm not convinced that that would be the end result. The team finally has an owner and a general manager that seem to know how to run an arena, but they've only had this team for a couple years. Changing the terms of the contract just feels premature to me. I want to see them try to live up to the terms of the agreement that they signed," said Commissioner Beam Furr. "I don't think this is the best use of tourist development tax dollars. There are other options. One is to simply honor the contract as it is written."
"I'm going to vote no on this. There are plusses and minuses for the County and the same for the Panthers," said Mayor Marty Kiar.
The National Hockey League will contribute $1.5 million to youth hockey development in Broward County, and consider awarding at least one All Star Game to the BB&T Center before 2022.
The BB&T Center is a popular venue for concerts, sporting and entertainment events. Broward County taxpayers own the $212 million facility, built in 1998, which is managed by SSE and has been operating at a loss. SSE is also the parent company of the Florida Panthers, the Center's primary tenant.
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