Referendum could be a fake play for a $90 million trophy

Referendum could be a fake play for a $90 million trophy
  • Sumo

Might we call it a fake punt?

While the owner of the Miami Dolphins and Sun Life Stadium seems to be putting an earnest effort into a public referendum that would get him $289 million in tourist tax dollars, it’s a known longshot.

So maybe he’s really making a pass for a different kind of score.

Because if the state legislature allows this to go to referendum, Dolphins owner Stephen Ross gets a whopping $90 million right off the, er, bat.

Yes, without a public vote.

And guess what? Those are our public tax dollars. That is our money,.

See? Part of the deal negotiated with and by Miami-Dade Mayor Carlos Gimenezwhose many friends are and fundraisers are working for the Dolphins now (more on that later) and who got more than $50,000 in campaign contributions from the team and Ralph Garcia-Toledo, his bff, who stands a lot to gain from the facility’s upgrade — is that the Dolphins get a $3 million annual tax rebate, in addition to the $2 million one they get already. Over 30 years, that’s $90 million.

And while many believe a pass in Tallahassee is not gonna happen, and State Rep. Carlos Trujillo (R-Doral) has practically promised it is going to be out of bounds, Ladra is pacing.

Because politicians are finicky. And because legislators — most of whom are not from Miami-Dade — could feel somewhat persuaded (read: strong-armed) by the county commission’s early “urging” legislation in January and it’s vote Wednesday to put it on the ballot and the fact that people will already have voted for God’s sake. In fact, watch for the “don’t disenfranchise voters” argument to come up (more on that later).

I mean, there have already been days of phone banking by the stadium supporters.

Add to that the fact that there has been very little organized opposition campaigning and that Dolphins lobbyist Ron Book — who also advocated on behalf of the county in what Ladra can’t believe is not a blatant conflict of interest — is likely working double time to get yes votes (wonder if he gets a commission).

Most people do not realize this: If the legislature passes the buck like the county commission did and approves of the tourist tax increase for the Dolphins, and the public votes down the deal on May 14, Ross may lose on the ballot but still wins at the bank: A $90 million prize. And because that is our money, because those are state tax dollars that comes out of schools and roads and meals and other services, the referendum is just a distraction.

Misdirection at its best.

Ladra can’t help but think that may have been the play all along.

8 Responses to "Referendum could be a fake play for a $90 million trophy"

  1. Stanger

    The issue he is policy…can the Billionaire pay for it? can’t we cap our contribution at 100 million? or 75 million?

  2. Gino — I’ll pay you a hundred bucks right now for $122 mil in 2043. So if you think it nada, just reply with your address.

    But I do appreciate that you understand the discounted value of money over time, which was my point.

    Seems this article ignores it, except when it comes to the payback.

    And yes, this is an issue that people may or may not buy into. Just don’t like the number scare tactics.

    Bottom line is what I said before from the county perspective. $7.5 mil plus a 3% escalator from a tax that does not go on Dade residents.

    Putting that in current terms and including the discounted payback amount, I’d guess that is something like $120 – $130 mil in current value.

  3. Stanger

    Public money is public money. The Mayor and Chairwoman have made many public statements regarding the need for a modern state-of-the-art convention center. Perhaps a better use for an INCREASE in bed tax?

    I worry about State money also, since all State Legislators have done over the last 6 years is cut the budget and affect numerous programs from education to health care. So now we have a little coin, we are going to give it away? to a guy that can afford it?

    We are asked to consider giving the Dolphins 289 mil and they pay us back 112 mil, therefore interest free loan, how much will 112 mill buy in 2043??

    NADA

  4. Good luck with that “long term payback.” As soon as Ross sells, the new owner will fight that and end up not repaying it. There is no way Ross still owns the team in 30 years when the payback happens.

  5. Gino — the NFL part is a loan. Simple as that….what does it matter whether Ross gets a mortgage or pays cash?

    Assuming your county figure is right, seems the payback has to be factored in.

    We discounting for inflation?….nope.

    Bottom line for the county is $7.5 mil per year with a 3% escalator for a bunch of years with a long-term payback.

    And why worry about the state tax rebate….Dade is only a small part. That’s like a gift….you grab those when you get the chance.

    And no, don’t work for Mike Dees, but I was an econ major. Those total cash payout values have no significance.

    Key — thing, how much more are Dade residents going to have to pay for this? Answer is nada.

  6. $289,000,000 over 26 years from the County, $90,000,000 from the State, total public money = $379,000,000.

    NFL possible contribution to the Stadium deal $150,000,000.

    ($529,000,000)

    Dolphin Renovations as stated by the team = $350,000,000

    Am I missing something??

  7. So the facts on the sales tax rebate have been known for months and all of a sudden it is Watergate? Don’t check your mail for that Pulitzer.

    Such a minor amount in govermental terms. Guess you are just looking for some kinda scandal.

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