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HomeMy WebLinkAbout7/27/2000El 0 MINUTES ATTACHED 0 NOTICE THE BOARD OF COUNTY COMMISSIONERS WILL CONTINUE ITS SPECIAL MEETING FROM MONDAY, JULY 24, 2000, AS FOLLOWS: THURSDAY, JULY 27, 2000 AT 9:00 A.M. IN THE COUNTY COMMISSION CHAMBERS 184025TH STREET VERO BEACH, FL. THIS MEETING PERTAINS TO THE PROPOSED MEMORANDUM _ OF UNDERSTANDING (MOU) CONCERNING THE DODGERS. BK 114 PG 3 2 2 • A SPECIAL July 27, 2000 MEETING OF THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY (CONTINUED FROM JULY 24, 2000) The Board of County Commissioners of Indian River County, Florida, met in Special Session at the County Commission Chambers, 1840 25h Street, Vero Beach, Florida, on Thursday, July 27, 2000 at 9:00 a.m. Present were Vice Chairman Caroline D. Ginn; Commissioner Kenneth R. Macht; Commissioner Ruth Stanbridge; and Commissioner John W. Tippin. Chairman Fran B. Adams was absent due to illness in her family. Also present were County Administrator James E. Chandler; County Attorney Paul G. Bangel; Bond Counsel Robert Reid; Executive Aide to the Board Kimberly Massung; and Deputy Clerk Patricia "PT' Jones. Vice Chairman Ginn called the meeting to order and announced that there are no motions on the floor at this time. County Administrator Tun Chandler stated that some minor changes have been made to the Memorandum of Understanding (hereinafter "MOU") since the meeting on Monday. County AttorneyPaul Bangel noted that the bond counsel and County Administrator had done a tremendous job. His questions have been answered and a few of his comments have been incorporated into the MOU. Administrator Chandler stated that there had been questions regarding the responsibility of the Dodgers after the $7,000,000 for improvements and the $2,000,000 capital reserve have been disbursed. At that time the full responsibility for any expenses rests with the Dodgers. Section 2(c) and Section 3(b) address those responsibilities. From our perspective it is clear that any expenses of operation, maintenance or capital that would exceed those funds would be solely the responsibility of the Dodgers. The only expense left to the County would be the property taxes. JULY 279 2000 -1- BK i 14 Should the PG 323 C] I Dodgers terminate the agreement, they would be responsible for defeasement of the bonds with an option to repurchase the property. Bond Counsel Robert Reid stated that at the time of the issuance of the bonds, all of the costs involved will be satisfied and the County will be reimbursed from the bond proceeds. At the time the transaction is consummated the County will be made whole. The bond issue is for an amount greater than the net dollars that go to the Dodgers and the capital reserve fund. In the event the Dodgers leave before the end of the initial 20 -year term, they have agreed to pay liquidated damages to the County by defeasement of the bonds. At that time the bonds would be released from indenture and the funds would be available for use for other purposes. The funds would be held either in cash or treasury securities in the defeasance escrow until the first call date. All costs, including redemption fees and the costs of setting up the defeasement, will be covered. The bond counsel would provide an opinion that the bonds are defeased and all liability on the part of the County would be ended. Administrator Chandler explained that the construction funds would be held in a trust account and requisitions would be submitted and approved solely with respect to the improvements outlined in the development agreements to be drawn. The capital reserve fund would have to be used solely for repairs and replacements to the facility and requisitions will also be required for those expenditures. Craig Callan, Managing Director at Dodgertown, noted that it is the Dodgers' intent to improve the facility and have expanded spring training here in Vero Beach. They are going to bring in their rehab players, a January workout team, and 2 adult baseball campaigns. There are provisions contained in their national association that prohibit them from signing a contract to that effect, but it is their intention to stay here. He has lived here for 22 years and it would make no sense for the Dodgers to bring other teams and events here and then move elsewhere. Administrator Chandler noted there are several other minor clarifications in the MOU and all changes have been approved by the Dodgers. Attorney Reid noted there is a City of Deerfield Beach case heard by the Florida Supreme Court regarding financing of sports facilities which was governed by the State's -1865 Constitution wherein municipalities were a creature of statute. Bonding authority for municipalities was r JULY 0 279 2000 -2- 0 significantly limited at that time. Those provisions were abandoned by the State's Supreme Court when the current Constitution was adopted. A current case which is more applicable to today's standards is a decision regarding the Tampa Sports Authority, Hillsborough County stadium. In 1997 a decision of the Supreme Court clearly said that the Tampa Bay sports facility was indeed for a public purpose and involved benefits for the community and its citizens and was clearly within the ' authority of the governmental entities to finance. Vice Chairman Ginn questioned whether the City of Deerfield case would still be considered precedent setting, and Attorney Reid responded that those articles in the 1865 Constitution have been changed and only dealt with municipalities, not counties. In 1969 the Constitution changed how municipalities are defined under Florida law. They became individual powers with home rule and the powers necessary to carry out municipal facilities. Counties were not so affected. Vice Chairman Ginn then opened the floor to public comments. John Clinton, 3636 Mockingbird, wanted to know what the Dodgers intend to use the property for once it is purchased. He felt that if we own this property, we open ourselves up to liability. Administrator Chandler replied that the property will be used for spring training for the minor league team. Those details will be more specifically spelled out in the lease. Also, language has been added to require naming the City and the County as co -insureds on the Dodgers' liability insurance. Frank Coffey, 1335 River Ridge, noted that the MOU specifically states the Dodgers will hold the County and the City harmless. He felt the protection is there. Frank Zorc, 2044 deLeon Avenue, felt that if a vote of the people were taken, the project would not go forward. He felt it is a welfare deal for the baseball business and would be dead today if it had been properly presented to the public. He predicted this will wind up in litigation over the next few years. BK 114 PG 325 JULY 279 2000 -3- I Wayne Kroegel, 40 88`h Place, past president of the Realtors Association of Indian River County, felt that the bottom line will be that our investment will be returned between 15 to 25 times per year. He believed that the Dodgers have made a more significant economic impact on this community than Piper Aircraft. He polled the members of the Board of Realtors and the members overwhelmingly support this MOU. Bob Swift, 6450 Glendale Road, stated this is a business deal and it is easy to get mired down in details. We have a positive longstanding relationship with the Dodgers who are good corporate citizens. Without blowing their horn, they have been one of the best corporate citizens this community has ever had. He believed they will make a success of this transaction which is a good deal for Indian River County. B. L McClure felt the annual debt service for the bond issue would be $1,145,000 over 20 years. Also an assumption has been made that all the money spent here by tourists is a result of the Dodgers and this is not so. He believed there is no protection if the Dodgers go bankrupt. He found 145 hits on the Internet addressing the issue of the economic impact of stadium deals. One was a particularly good study done by the congressional research service arm of the Library of Congress. 27 out of 30 deals studied had no discernable economic impact on a community and 3 had a negative impact. Also, regarding the City of Deerfield Beach case, that has not been overturned. The Constitution has changed but there is still a provision that prohibits a state or municipality from becoming involved with tax dollars with private business unless "the project serves a public purpose e and profits to private parties are incidental". Scott Chisholm, 366 SW 33' Avenue, grew up with the Dodgers and has pride in saying he lives in Vero Beach. We are dealing with the heritage of Indian River County and the Dodgers should stay here even if the economic impact is not as great as some may estimate. If we do not go forward, we would be abandoning a team that has helped our County develop on a worldwide basis. BK 114PG326 JULY 279 2000 -4- 0 Bill Curtis, 3410 Buckinghammock Trail, stated he is not speaking as the President of the Chamber of Commerce, but as a citizen and banker. If the impact of the deal is only $13,000,000 per year, that creates a lot of jobs. There are 275 people employed at the Dodgers facility and he is for the deal from a business point of view. Anthony Donadio, 1665 East Roseland Court, felt we should look beyond the Dodgers and their economic impact. This is about our community. If the Dodgers leave, a lot of employees will lose their jobs. The Dodgers are also great supporters of the United Way, the Humane Society, Samaritan Center, and VNA Hospice. You cannot put a price tag on everything. There is a great potential from this for development of jobs, taxes, impact fees, purchasing of construction materials and it will be a real asset to the community. PeterRobinson, 315 GreytwigRoad, reminded everyone that environmental bonds improved the quality of life here. He believed the tax base will grow and the cost will go down. As to the subsidies for business, our major industry in this County is agriculture and we do subsidize agriculture. All you have to do is watch your taxes go up if you change from agriculture to development. The deal will pay for itself through the tax base and in about 10 years, we will be making a profit. Assistant County Administrator Joe Baird stated that the real debt service on the bonds would run about $916,000 over 20 years. Victor Reagan, 751 16' Avenue, believed that baseball should manage baseball. The Dodgers could also sell car license plates so that those who want to support the team could pay. He loved baseball but felt it is bad business to go into business with baseball. JULY 279 2000 -5- BKI14PG327 _I Commissioner Tippin wanted the record to show that the Economic Development Council, an advisory group to the Board, met and this subject came up. The matter was discussed extensively and a resolution was passed supporting the transaction by a vote of 10 to 1. The Vice Chairman called a break at 10:28 a.m. and the meeting was reconvened at 10:35 a.m. with the same parties present. Vice Chairman Ginn called the meeting to order. MOTION WAS MADE by Commissioner Tippin, SECONDED by Commissioner Macht, that the Board approve the Memorandum ofUnderstanding as adjusted. Commissioner Stanbridge commented that this is a very complicated business deal and the task given to Administrator Chandler has been accomplished. She supports the MOU and would like to be around to celebrate the 75h anniversary of the Dodgers being in Vero Beach. Vice Chairman Ginn stated that she has great affection for the Dodgers and know they do a great deal of good in the community but she has serious concerns regarding this transaction. If this does not have an economic impact and cause a rise in ad valorem taxes, she will remind the Board of her concerns that -we could handle this. She felt it is wrong to help this very wealthy corporation while not helping the small businessman. She could not support the motion due to her fiscally conservative position. Commissioner Macht believed that Indian River County could not "bail out" the Dodgers and they certainly do not need "bailing out". He also felt the jobs brought to the community by the Dodgers did not receive enough attention. Mr. Callan stated that the Dodgers employ 275 people during the off-season and 450 in - season. They have a 4.5 million -dollar payroll and take good care of their employees because they do a good job. BK 114 PG 328 JULY 279 2000 -6- 0 0 Commissioner Macht noted that the deGuardiola development will also add a number of jobs through the "mini -town". He believed not completing the transaction would seriously negatively affect our economic status. Commissioner Tippin agreed with Commissioner Macht's comments and believed that the Dodgers being in this area attract a number of people to this area. THE VICE CHAH YLAN called the question and the Motion passed by a 3-1 vote (Vice Chairman Ginn opposed and Chairman Adams absent). MEMORANDUM OF UNDERSTANDING IS ON FILE IN THE OFFICE OF THE CLERK TO THE BOARD There being no further business, on Motion duly made, seconded and carried, the Meeting adjourned at 10:52 a.m. ATTEST: J. K. Barton, Clerk Minutes Approved: y JULY 279 2000 -7- Caroline D. Ginn, Vice Chairman BK 114 PG 329