

SUCH A DEAL!
Could cost Homestead $100,000,000
CIRCA 2001 Miami Herald
Winston Cup hurts Homestead
Loss of millions to speedway operator depriving city in danger of bankruptcy
BY KARL ROSS
kross@herald.com
The Winston Cup did not come cheaply to Homestead.
To attract the coveted NASCAR series to the Homestead-Miami Speedway, elected officials made concessions to the track's private operators in 1997 that cost the city tens of millions of dollars. Scroll to bottom of page for Special Called Meeting Minutes Highlights.
Instead of fueling the city's recovery, the forsaken speedway revenues -- an estimated $55 million to $70 million over the life of the current operating agreement, which expires in 2032 -- will remain in the hands of the track's private operator.
The operator is a subsidiary of Daytona Beach-based International Speedway Corp., a publicly traded company with reported revenues last year of $440 million.
"We sold our soul for that Winston Cup'' said one councilman at the time.
Combining lost revenues with new liabilities, the cost of hosting the Winston Cup for Homestead could reach $100 million.
The city:
Reduced rent payments by $19.8 million.
Eliminated a revenue-sharing clause that could have yielded $50 million or more in income.
Wrote off as uncollectible a cash advance of more than $8 million from the city for track improvements.
Will begin paying property taxes on the speedway next year, taking on a liability that over the years could surpass $20 million -- the result of a recent state Supreme Court ruling in a Sebring case that allowed counties to tax motor sports facilities.
Under the initial lease agreement in 1995, the speedway's private operator -- not the city -- would have assumed that liability.
The city later agreed to pick up the tax liability when its legal advisor, Michael Watkins, assured the City Council in 1997 that in his opinion, Miami-Dade County "would be unsuccessful'' should it try to put the speedway on the county's tax rolls.
The court ruling has proved him wrong.
Homestead's tax bill next year will be $690,000.
Highlights from: HOMESTEAD CITY COUNCIL SPECIAL CALLED MEETING MINUTES April 7 1997
There are two proposals: The first is the $7 million (note the number) with all lease provisions being met and second no money up front and no loan with all the lease provisions going in accordance with the announcement of a Winston Cup assignment.
Mr. Sincore moved, Mr. Shiver seconded to approve the amendments to lease with HMJV with no up front payments (the $8 million) (note the number) to the City in operate to assume police insurance and mitigation cost on the happening of an assignment of a Winston Cup pending legal approval.
The lease provides if the property is placed back on the tax rolls and the county is successful in defending their position the responsibility of the payment would be born by the City. The operator has agreed to fund up to $100,000.00 in attorney fees and expert witness fees to contest such an assessment.
"We did significant research and the county would be unsuccessful."
The truth is Homestead pays $611,349 annually in ad valorem taxes on the Homestead Miami Speedway facility.
Mr. Sincore asked if we do not accept the $8 million (note the number) how will that hurt us or help us?
There was a discussion concerning receiving the $7 (note the number) million versus receiving no money at the present time.
Mr. Sincore asked if we receive the $7 (note the number) million up front how by law can that money be spent?
Mr. Asmar said this would be at Council direction. During the upcoming budget year staff will bring to Council some Capital Improvement needs.
Mayor DeMilly asked Mr. Watkins if he recommends the results of the motion that Mr. Sincore has made and you have worked with both parties and believe it is in the City's best interest to go forward with the motion as it is before us.Mr. Watkins said he believes that something has been left on the table (???) but if we got everything that is on the table we would not be here recommending an agreement.
Mayor DeMilly asked Mr. Asmar if Council votes in the affirmative this evening and agrees to the motion that has been made would this be harmful to the City?
Mr. Asmar said the City will not be hurt but would be concerned as to whether or not we are maximizing the City's assets to the fullest extent possible.
Roll call vote; Mrs. Campbell yes, Mr. Warren yes, Mrs. Perry yes, Mr. Bateman yes, Mr. Shiver yes, Mr. Sincore yes, Mayor DeMilly yes. Motion passed, Mr. DeMilly adjourned the meeting at 7:00 p.m.
This deal hurts the city, helps some local businesses and remains in place until 2032. New HMS President Matt Becherer needs to take a meeting with a City Manager who will look out for the City's taxpayers. Mayor Bateman you pledged to help taxpayers, you also helped create this problem, now you can help correct it.Read more here:
http://www.powmadeak47.com/carsuck/cs010724nascar.html
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