A. MOTION TO APPROVE First Amendment to the Amended and Restated Broward County Civic Arena Operating Agreement ("Operating Agreement") among Broward County, the Arena Operating Company, Ltd., the Florida Panthers Hockey Club, Ltd., and Sunrise Sports & Entertainment, LLC, amending provisions to reflect the refunding of the bonds issued by the County related to the Civic Arena, including the schedules for annual County contribution, Letter of Credit requirements, and Termination Payment; and authorize the Mayor and Clerk to execute same.
(Per the Tuesday Morning Memorandum, Signature pages have been received.)
(Transferred to the Consent Agenda.)
ACTION: (T-12:18 PM) Approved.
VOTE: 9-0.
B. MOTION TO APPROVE Third Amendment to the Memorandum of Agreement among Broward County, the Arena Operating Company, Ltd., and the Florida Panthers Hockey Club, Ltd., amending provisions to reflect the refunding of the Completion debt related to the Civic Arena and the associated supplemental rent obligations of the team.
(Transferred to the Consent Agenda.)
ACTION: (T-12:18 PM) Approved.
VOTE: 9-0.
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MOTION A: Amends certain obligations of the Operating Agreement, based on changes stemming from the County's issuance of the $71,990,000 Broward County, Florida Professional Sports Facilities Tax and Revenue Refunding Bonds, Series 2016.
MOTION B: Establishes the supplemental rent requirements of the Team, stemming from the $5,170,000 Non-Ad Valorem Taxable Refunding Revenue Note, Series 2018, in accordance with the refunded debt service schedules.
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THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTIONS.
This item supports the Board's Value of "Cultivating community culture, arts, recreation and life-long learning" and goals relating to diverse artistic, cultural and recreational amenities and programs.
Motion A: The Broward County Civic Arena ("Arena"), now known as the BB&T Center, is a multipurpose sports and entertainment venue owned and financed by Broward County. The Arena is managed by the Arena Operating Company, Ltd. ("AOC"), a subsidiary of Sunrise Sports & Entertainment, LLC. ("SSE") and affiliate of the Florida Panthers Hockey Club (“Team”) Ltd, on behalf of the County pursuant to the terms of the Amended and Restated Broward County Civic Arena Operating Agreement among SSE, AOC, the Team, and the County.
On December 8, 2015 (Item No. 67), the Board approved the Operating Agreement, pursuant to which the County will contribute a total of $86 million through 2028, or an average of $6.6 million annually, from tourist development taxes to help operate, maintain, and improve the County-owned Arena. As a condition for accepting these funds, among other things, the owners of SSE were required to provide an irrevocable letter of credit as security against failure to meet certain financial obligations, where the County could recoup these funds.
The Operating Agreement provides that if the facility’s debt is refunded, the Operating Agreement would be amended to reflect the revised payments as a result of the refunding, including changes to the letter of credit securing SSE’s obligations. The County issued Professional Sports Facilities Tax and Revenue Refunding Bonds, Series 2016, which reduced the debt service payment related to the Civic Arena. The proposed Amendment revises the schedules for annual County contribution, Letter of Credit amounts, and Termination Payment to reflect the refunding. Under the Amendment, the Team’s debt service obligations are reduced and the County’s contribution, the Termination Payment, and Letter of Credit amounts are reduced in proportionate amounts pursuant to the terms of the Operating Agreement. This Amendment also provides the County with a mechanism to adjust the Termination Payment and Letter of Credit amounts based on review of Capital Expenditures/Repairs required for the Arena.
Motion B: On October 11, 2005 (Item No. 10), the Board authorized a loan of up to $8,500,000 (“Series 2005B Bonds”) from the First Florida Governmental Financing Commission ("First Florida") for the purpose of partially refunding a prior loan, Series 2000B Bonds, made by First Florida to the County. The Series 2005B Bonds were issued in the par amount of $7,470,000. The Series 2005B Bond issue refinanced a portion of the outstanding First Florida Governmental Financing Commission Taxable Series 2000B Bonds, which were issued in part to refund the Commercial Paper that was initially utilized to fund the completion costs of the Civic Arena, now the BB&T Center. The Florida Panthers have paid the debt service for these bonds since inception as obligated through its Operating Agreement with Broward County and the Memorandum of Agreement dated May 1, 1999, as amended, among the County, AOC, and the Team (“Memorandum of Agreement”).
On February 27, 2018 (Item No. 21), the Board authorized the issuance of the County's Non-Ad Valorem Taxable Refunding Revenue Note, Series 2018, in the principal amount of not to exceed $6,500,000 to refund the County's outstanding loan related to the Series 2005B Bonds. Given the refunding of this debt, the Memorandum of Agreement must be updated to reflect the new, reduced debt service schedule. This Amendment is consistent with prior amendments to the Memorandum of Agreement (First Amendment, approved by the Board on October 24, 2000 (Item No. 7), and the Second Amendment, approved by the Board on May 9, 2006 (Item No. 11)), in which the only changes made were to the description of the Completion Debt and/or the debt service schedule as a result of the issuance and refunding of debt.
Signature pages for both Amendments are expected to be received prior to Board consideration of the item. Once received, they will be noted in the Monday Night Memo.
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