City Does not Know how it will fund its share of $63 million for Everbank

[icarus]

Sec. 111.136 (a) The City hereby establishes a sports venue-related enterprise fund, known as the Sports Complex Capital Maintenance Enterprise Fund, which will provide for improved accountability for performance of maintenance and upkeep for the Jacksonville Arena, the Jacksonville Municipal Stadium, and the Jacksonville Baseball Stadium; and which will have as a primary source of revenue, the taxes on "transient rentals" authorized by F.S. § 212.0305 and Section 764.104(a)(3) (Convention Development Tax), Ordinance Code.

To make matters worse, it looks as if the City has managed to integrate the ordinances into its lease agreement with the Jaguars for the stadium.  Under the terms of the lease amendment attached, the Jaguars can pay for the improvements themselves and be reimbursed by the City if they follow the correct procedures.

http://www.coj.net/departments/central-operations/docs/procurement/rfp-p-08-12/10--08-20-10-amendment-10.aspx

Essentially, we have given 2% of all hotel revenues to the Jaguars. HAZA!!!

[Tacachale]

This was done in 2009. There is actually a 6% tax; only 2% of it actually goes to the sports complex. An additional 2% goes to tourism events, development and promotion, and the last 2% is debt service for EverBank Field. For the money going to the Sports Complex, the law specifically mentions the three existing stadiums (EverBank, the Baseball Grounds, and the Arena) and things that might be constructed in the area in the future. The maintenance fund included in the BJP for the Arena and Baseball Grounds was evidently "re-appropriated" prior to this law.

As such, I think it would be a hard sell to use this for a convention center, unless the law were changed (and assuming the fund hadn't already been bonded out for another project like the proposed EverBank remodeling). Considering there's no been no action on a convention center, any future one will probably need a different funding source.

http://www.coj.net/city-council/tourist-development-council.aspx

[Cheshire Cat]

Sec. 111.136 (a) The City hereby establishes a sports venue-related enterprise fund, known as the Sports Complex Capital Maintenance Enterprise Fund, which will provide for improved accountability for performance of maintenance and upkeep for the Jacksonville Arena, the Jacksonville Municipal Stadium, and the Jacksonville Baseball Stadium; and which will have as a primary source of revenue, the taxes on "transient rentals" authorized by F.S. § 212.0305 and Section 764.104(a)(3) (Convention Development Tax), Ordinance Code.

To make matters worse, it looks as if the City has managed to integrate the ordinances into its lease agreement with the Jaguars for the stadium.  Under the terms of the lease amendment attached, the Jaguars can pay for the improvements themselves and be reimbursed by the City if they follow the correct procedures.

http://www.coj.net/departments/central-operations/docs/procurement/rfp-p-08-12/10--08-20-10-amendment-10.aspx

Essentially, we have given 2% of all hotel revenues to the Jaguars. HAZA!!!

Yes, you are correct about some ordinances being drafted that also impact how the money is used.  I do not agree that "laws" should be made to support the needs of a sports team.  IMO

Tach, Is anyone arguing for a convention center right now that you know of?  I am thinking that right now the concern is how much of that money "it is wise" to use for something like a jumbo tron.  Legally the tron can be funded as an improvement so it takes us to the question of whether or not our current elected leadership are making the best decisions for the entire community by funding the purchase of the jumbo tron.  It is my understanding that improvements are needed not only at Everbank stadium but in the other sports venues. 

[thelakelander]

This was done in 2009. There is actually a 6% tax; only 2% of it actually goes to the sports complex. An additional 2% goes to tourism events, development and promotion, and the last 2% is debt service for EverBank Field. For the money going to the Sports Complex, the law specifically mentions the three existing stadiums (EverBank, the Baseball Grounds, and the Arena) and things that might be constructed in the area in the future. The maintenance fund included in the BJP for the Arena and Baseball Grounds was evidently "re-appropriated" prior to this law.

As such, I think it would be a hard sell to use this for a convention center, unless the law were changed (and assuming the fund hadn't already been bonded out for another project like the proposed EverBank remodeling). Considering there's no been no action on a convention center, any future one will probably need a different funding source.

http://www.coj.net/city-council/tourist-development-council.aspx

You're probably right. It looks like a microcosm of having no real long term plan or visible goals to strive for.  The majority of the countywide tax is tied to three sports facilities. One bad decision leads to others.  That's a tough cycle to break.

Tach, Is anyone arguing for a convention center right now that you know of?  I am thinking that right now the concern is how much of that money "it is wise" to use for something like a jumbo tron.  Legally the tron can be funded as an improvement so it takes us to the question of whether or not our current elected leadership are making the best decisions for the entire community by funding the purchase of the jumbo tron.  It is my understanding that improvements are needed not only at Everbank stadium but in the other sports venues.

I think I added the convention center to the conversation. I wasn't arguing for it but I did use it as an example of something else a bed tax typically helps pay for.  The ultimate question is if this is the best use of the money.  However, it seems like previous bad moves have limited the lion's share of bed tax money to Everbank Field.

[Ralph W]

Look at this as the care and feeding of the big cats in town (to include fat cats) with lip service paid to the underdogs. Baseball may be America's pastime but the majors are not beating down the doors to perform in Jacksonville and Barry Manilow will be here for only a one night stand.

[icarus]

Tach is correct. 2% of the Convention Development Tax pays for the debt service on the construction of the stadium. 2% goes to capital maintenance of Sports District and 2% goes to Tourism.

Of the 2% going to tourism, 70% is spent on a contract with Visit Jacksonville for media campaigns and 30% is spent on funding local events designed to or likely to bring in tourists or promote Jacksonville.

Long story short ... the bed tax is dedicated and really not capable of being burdened/used for other purposes.  The five year capital maintenance plan for all three sports district facilities was included in the lease amendment to the City's lease with the Jaguars .. see the link in my previous post.

The jumbotrons will be paid for out of the fund. To the extent the cash is not in the account, the Jaguars have the option under the terms of their lease to pay for the improvements and wait for reimbursement.

  Chesire .. I'm not sure the City Council can unilateraly deny the jumbotrons as capital expenditures. I think the real question is whether under the terms of the lease, these improvements are included or an addition to the original terms. The second question would be whether the City Council has the cahones to really question or dispute the expenditure.

[thelakelander]

The answer to the second question is pretty easy........no!

[Cheshire Cat]

icarus 
Chesire .. I'm not sure the City Council can unilateraly deny the jumbotrons as capital expenditures. I think the real question is whether under the terms of the lease, these improvements are included or an addition to the original terms. The second question would be whether the City Council has the cahones to really question or dispute the expenditure.

I don't believe they can unilaterally deny funding an improvement, but I believe they can question the amount being used for a single improvement. 

[icarus]

and they should ... to bad buying better players isn't considered a capital maintenance expenditure .. probably get more bang for the buck and a few more wins .. ;-)

[duvaldude08]

Check this out. Cleveland is funding $30 million for stadium enhancements from the citys GENERAL FUND. THAT is when there should be public outcry. Yet we used money that was allocated to be used for said purpose, and these ding dongs in this city was in an uproar. Guess they would hate to live in Cleveland.

Browns FirstEnergy Stadium renovations: Cleveland City Council votes in favor of providing funding


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Posted: 8:35 PM
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• By: Connor Kiesel, newsnet5.com
•By: Josh Boose, newsnet5.com
CLEVELAND - Cleveland City Council has approved funding for the Browns’ proposed stadium improvements.

The vote was 13-5 in favor of the emergency ordinance to provide $2 million a year in funding for 15 years toward the upgrades. The ordinance needed two-thirds of council’s vote to pass.

The vote came following an impassioned discussion by several members of council who felt the money, which would come out of the city's general fund, could be put to better use in the city's neighborhoods.

"This two million dollars, that's 20 police officers, 20 firefighters or 24 paramedics," said Cleveland City Councilman Michael Polensek.

Mayor Frank Jackson said last week that the city could afford the $2 million, which accounts for .37 percent of the city's budget, without impacting city needs or services.

"This type of private investment in our city is essential to our continued success," said Mayor Frank Jackson in a statement thanking council and Browns owner Jimmy Haslam.

Haslam in a statement said "we look forward to moving ahead with the renovation of FirstEnergy Stadium. We know it will positively impact our fans' experience and our community will be proud to showcase the transformed home of the Browns for the rest of the country."

The Browns plans unveiled earlier this month call for $120 million in renovations, including new, larger scoreboards.

The project will be funded by the team with the plan approved by council calling for the city as owner of the stadium to pay $2 million a year for 15 years to help with the cost. The $30 million commitment would represent $22 million in today’s dollars if the city had to put the money up front.

Browns CEO Joe Banner was on hand for the vote, he said after "we're going to do a project that the city is going to be proud of and we look forward to getting started."

The team still needs approval from several city commissions before work can begin. "Assuming that goes smoothly our intent is break ground so to speak as soon as the seasons over."

"I think it came out fair for everyone, I think it's a win-win," Banner said.

Check back to newsnet5.com for more on this developing story,



Read more: http://www.newsnet5.com/dpp/news/local_news/cleveland_metro/browns-firstenergy-stadium-renovations-cleveland-city-council-votes-in-favor-of-providing-funding#ixzz2lle9Hzoi

[fsujax]

Nice find.

[pierre]

and they should ... to bad buying better players isn't considered a capital maintenance expenditure .. probably get more bang for the buck and a few more wins .. ;-)

Actually, spending big money in free agency rarely provides "bang for the buck".

It's usually fool's gold.