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How a $91 million loan on the Marlins ballpark will cost Miami-Dade $1.2 billion [View all]
Man, it's been a long time since I started a Marlins thread.
How can you turn $91 million into almost $1.2 billion? Buy some bonds from Miami-Dade County.
(snip)
Miami-Dade borrowed about $400 million in that deal by selling bonds on Wall Street. During the commission discussion on the Dolphins plan, Mayor Carlos Gimenez mentioned one set of stadium bonds worth about $90 million would cost more than $1 billion to pay back. We at the ETM thought: Can that be true? The answer: yes. See below.
The chart (if you can’t see it, try refreshing or opening this article in a different browser) lays out the debt-repayment schedule on that initial $91 million.
The first column is the money borrowed, and the small lines show the amount of principal and interest owed each month. The soaring line is a running total of how much money Miami-Dade is scheduled to pay back for the loan. It crosses the $500 million mark in 2042, and hits $1.18 billion by the time the last payment is due 2048.
Miami-Dade will use hotel-tax revenue to pay off the bonds. But payments don’t kick in until 2026. Once they do, they get very costly very quickly. The first payment, for example, totals $260,000. The fifth jumps to almost $8 million and the 10th tops $20 million. Payment No. 18 brings the big hit: $118 million comes due in 2042 alone....
http://www.miamiherald.com/2013/01/24/3199018/how-a-91million-loan-on-the-marlins.html
(snip)
Miami-Dade borrowed about $400 million in that deal by selling bonds on Wall Street. During the commission discussion on the Dolphins plan, Mayor Carlos Gimenez mentioned one set of stadium bonds worth about $90 million would cost more than $1 billion to pay back. We at the ETM thought: Can that be true? The answer: yes. See below.
The chart (if you can’t see it, try refreshing or opening this article in a different browser) lays out the debt-repayment schedule on that initial $91 million.
The first column is the money borrowed, and the small lines show the amount of principal and interest owed each month. The soaring line is a running total of how much money Miami-Dade is scheduled to pay back for the loan. It crosses the $500 million mark in 2042, and hits $1.18 billion by the time the last payment is due 2048.
Miami-Dade will use hotel-tax revenue to pay off the bonds. But payments don’t kick in until 2026. Once they do, they get very costly very quickly. The first payment, for example, totals $260,000. The fifth jumps to almost $8 million and the 10th tops $20 million. Payment No. 18 brings the big hit: $118 million comes due in 2042 alone....
http://www.miamiherald.com/2013/01/24/3199018/how-a-91million-loan-on-the-marlins.html
5 replies
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