The city of Miami is sitting on 131 acres of contaminated land, which currently holds Melreese Golf Course and a water park on 37th Avenue.
The land, even though it contains toxic soil, is valued at roughly $200-$250 million in our current hot market. Inter Miami CF, led by David Beckham and Jorge and José Mas (“the Mas Brothers”), is seeking to convert the golf course into a soccer stadium with a hotel, an office park, commercial retail space, an improved water park, baseball fields, bike and walking parks, and a public transit connector.
Inter Miami Group previously approached Miami to discuss building a stadium in the downtown area and was rejected. The group then negotiated a 50-year lease with Fort Lauderdale for Lockhart Stadium, which was demolished to make way for the team’s new DRV Pink Stadium. If the team decides to relocate, the Broward city could be left high and dry – and that should be a cautionary tale for Miami.
Inter Miami has come back and begun negotiations with Miami for a 99-year lease. The city would receive a minimum of $3.57 million in rent (1% of the value of the land) or 5% of revenue generated.
Inter Miami group would bear the cost of cleaning up the toxic soil – an estimated cost of $36 million – and of construction. The developer would improve the 58-acre public park at a cost of $25 million.
Is it a good deal? I haven’t read the proposed contract’s 500 pages, so I can’t comment on the long-term benefits for taxpayers. I do know that the city built Miami Arena, which lasted five years before it was considered obsolete. This should, again, serve as a cautionary tale.
Is a 28,000-seat stadium going to generate enough revenue to be viable? Local government helped fund what was once called the American Airlines Arena, now known as FTX Arena. The county also helped pay for Joe Robbie Stadium, known today as Hard Rock Stadium. Local government helped finance the construction of LoanDepot Park – née Marlins Park – and got 5% of the sale proceeds when it was sold.
How much do these stadiums contribute to our local economy and how many locals do they employ? City of Miami commissioners should look at these past deals and learn from previous mistakes to get the best possible deal for taxpayers.
In the case of this soccer stadium deal, the city is contributing land worth $200-$250 million and will receive a minimum of $3.57 million in rent, which seems low at 1% of the land value.
Reginald J. Clyne, Esq.
What revenue does Miami currently receive for Melreese Golf course? Will a new stadium generate more income than that? How much could the city get if it bid out the golf course and sold it? What happens if Inter Miami leaves early? Will city of Miami taxpayers get screwed, which is what appears to be happening to folks in Fort Lauderdale?
The cost benefit calculation should include the amount of revenue Miami will receive from taxes for the new hotel, office complex and commercial real estate. How many new jobs will be generated? How will the proposed stadium complex impact traffic congestion? What is the potential revenue to be generated from out of town visitors coming to watch soccer games?
Inter Miami Group needs four commissioners to vote in favor of the deal to make it happen. Each commissioner hold a lot of power, including Christine King. They should all scrutinize this deal and negotiate the hell out of it to do right by Miami taxpayers.
Reginald J. Clyne is a Miami trial lawyer who has practiced in some of the largest law firms in the United States. Clyne has been in practice since 1987 and tries cases in both state and federal court. He has lived in Africa, Brazil, Honduras and Nicaragua.