Broward County Commission Regular Meeting
Director's Name: Monica Cepero
Department: County Administration
Information
Requested Action
title
A. MOTION TO APPROVE Second Amended and Restated Operating Agreement by and among Broward County, Arena Operating Company, Ltd., Florida Panthers Hockey Club, Ltd., and Sunrise Sports & Entertainment, LLC, for the Broward County Civic Arena, concerning the management, operation, and future development of the Arena, with an initial term commencing retroactively on July 1, 2024, and expiring on June 30, 2033, with two additional optional extension terms of five years each at the sole discretion of the County; and authorize the Mayor and Clerk to execute same.
(Commissioner Rich pulled this item from the Consent Agenda.)
(Per the Tuesday Agenda Memorandum, the Board’s consideration of Motions A and B as part of Item 25 is based on Substitute Exhibits 1 and 2 distributed as Additional Material by the County Attorney’s Office.)
ACTION: (T-10:46 AM) Approved as amended with Regular Meeting Additional Material 25(1) and 25(2), dated February 11, 2025, submitted at the request of Office of the County Attorney. (Refer to minutes for full discussion.)
VOTE: 9-0.
B. MOTION TO APPROVE Second Amended and Restated License Agreement by and among Broward County, Florida, Florida Panthers Hockey Club, Ltd., and Arena Operating Company, Ltd, with an initial term commencing retroactively on July 1, 2024, and expiring on June 30, 2033, subject to two additional optional extension terms; and authorize the Mayor and Clerk to execute same.
(Commissioner Rich pulled this item from the Consent Agenda.)
(Per the Tuesday Agenda Memorandum, the Board’s consideration of Motions A and B as part of Item 25 is based on Substitute Exhibits 1 and 2 distributed as Additional Material by the County Attorney’s Office.)
ACTION: (T-10:46 AM) Approved as amended with Regular Meeting Additional Material 25(1) and 25(2), dated February 11, 2025, submitted at the request of Office of the County Attorney. (Refer to minutes for full discussion.)
VOTE: 9-0.
C. MOTION TO ADOPT Resolution of the Board of County Commissioners of Broward County, Florida, authorizing the redemption of all or a portion of the outstanding Broward County, Florida Professional Sports Facilities Tax and Revenue Refunding Bonds, Series 2016 (Broward County Civic Center Arena Project), Broward County, Florida Professional Sports Facilities Tax and Revenue Refunding Bonds, Taxable Series 2006B (Broward County Civic Center Arena Project) and the Broward County, Florida Non-Ad Valorem Taxable Refunding Revenue Note, Series 2018 in the aggregate amount of not to exceed $50,000,000; authorizing the County Administrator and the Chief Financial Officer to perform all actions necessary to facilitate such redemption; providing for certain other matters in connection therewith; and providing an effective date.
(Commissioner Rich pulled this item from the Consent Agenda.)
(Per the Tuesday Agenda Memorandum, the Board’s consideration of Motions A and B as part of Item 25 is based on Substitute Exhibits 1 and 2 distributed as Additional Material by the County Attorney’s Office.)
ACTION: (T-10:46 AM) Approved Resolution No. 2025-027. (Refer to minutes for full discussion.)
VOTE: 9-0.
D. MOTION TO DIRECT Office of the County Attorney to draft an Ordinance amending Section 31½-16 of the Broward County Board of Ordinances related to tourist development taxes.
(Commissioner Rich pulled this item from the Consent Agenda.)
(Per the Tuesday Agenda Memorandum, the Board’s consideration of Motions A and B as part of Item 25 is based on Substitute Exhibits 1 and 2 distributed as Additional Material by the County Attorney’s Office.)
ACTION: (T-10:46 AM) Approved. (Refer to minutes for full discussion.)
VOTE: 9-0.
E. MOTION TO ADOPT budget Resolution within the Four Cent Tourist Tax Revenue Fund to transfer funds from reserves in the amount of $15,000,000 and is appropriated for the County Annual Contributions for County Allocated Operating Expenses per the Second Amended and Restated Operating Agreement.
(Commissioner Rich pulled this item from the Consent Agenda.)
(Per the Tuesday Agenda Memorandum, the Board’s consideration of Motions A and B as part of Item 25 is based on Substitute Exhibits 1 and 2 distributed as Additional Material by the County Attorney’s Office.)
ACTION: (T-10:46 AM) Approved Resolution No. 2025-028. (Refer to minutes for full discussion.)
VOTE: 9-0.
F. MOTION TO ADOPT budget Resolution within the Series 2006B and 2016 Civic Arena Refunding Bonds Fund to appropriate revenue in the amount of $49,128,957 for the defeasance and redemption of all or a portion of the outstanding Broward County, Florida Professional Sports Facilities Tax and Revenue Refunding Bonds, Series 2016 (Broward County Civic Center Arena Project) and the Broward County, Florida Professional Sports Facilities Tax and Revenue Refunding Bonds, Taxable Series 2006B (Broward County Civic Center Arena Project); and for other debt service costs.
(Commissioner Rich pulled this item from the Consent Agenda.)
(Per the Tuesday Agenda Memorandum, the Board’s consideration of Motions A and B as part of Item 25 is based on Substitute Exhibits 1 and 2 distributed as Additional Material by the County Attorney’s Office.)
ACTION: (T-10:46 AM) Approved Resolution No. 2025-029. (Refer to minutes for full discussion.)
VOTE: 9-0.
G. MOTION TO ADOPT budget Resolution within the Series 2018 Non-Ad Valorem Taxable Refunding Revenue Note [Civic Arena] Fund to appropriate revenue in the amount of $2,371,143 for the defeasance and redemption of all or a portion of the outstanding Broward County, Florida Non-Ad Valorem Taxable Refunding Revenue Note, Series 2018.
(Commissioner Rich pulled this item from the Consent Agenda.)
(Per the Tuesday Agenda Memorandum, the Board’s consideration of Motions A and B as part of Item 25 is based on Substitute Exhibits 1 and 2 distributed as Additional Material by the County Attorney’s Office.)
ACTION: (T-10:46 AM) Approved Resolution No. 2025-030. (Refer to minutes for full discussion.)
VOTE: 9-0.
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Why Action is Necessary
MOTION A: Section 2.4 of the Broward County Civic Arena Operating Agreement (“Operating Agreement”) requires the Board of County Commissioners (“Board”) to consent to any amendments.
MOTION B: Section 2.2 of the Broward County Civic Arena License Agreement (“License Agreement”), requires the Board to consent to any amendments.
MOTION C: Board action is required to redeem outstanding bonds and take the other referenced action.
MOTION D: Necessary to permit Board direction to the County Attorney’s Office to prepare the referenced item.
MOTION E: Board approval is required to transfer funds from a reserve account and to appropriate expenditures.
MOTIONS F-G: Board approval is required to appropriate additional revenues not anticipated when the budget is adopted and to appropriate funds to redeem bonds and other debt service costs.
What Action Accomplishes
MOTION A. Amends, updates, clarifies, consolidates, and restates the rights and obligations of the parties regarding the operation, management, and use of the Arena.
MOTION B. Amends the License Agreement to account for the amended Operating Agreement.
MOTION C. Authorizes the redemption of all or a portion of existing bonds on the Broward County Civic Arena.
MOTION D: Provides the required Board direction to the County Attorney’s Office.
MOTION E: Transfers funds from reserve and appropriates funds for the payment of the County Annual Contributions for County Allocated Operating Expenses.
MOTION F: Appropriates unanticipated revenue for the defeasance and redemption of all or a portion of the outstanding Broward County, Florida Professional Sports Facilities Tax and Revenue Refunding Bonds, Series 2016 (Broward County Civic Center Arena Project) and the Broward County, Florida Professional Sports Facilities Tax and Revenue Refunding Bonds, Taxable Series 2006B (Broward County Civic Center Arena Project); and other debt service costs.
MOTION G: Appropriates unanticipated revenue for the defeasance and redemption of all or a portion of the outstanding Broward County, Florida Non-Ad Valorem Taxable Refunding Revenue Note, Series 2018; and other debt service costs.
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Previous Action Taken
September 17, 2024 (Item No. 57)
Summary Explanation/Background
THE COUNTY ADMINISTRATOR’S OFFICE RECOMMENDS APPROVAL OF THE ABOVE MOTION.
This item supports the Board's Healthy Community Goal, "Cultivating community culture, arts, recreation and life-long learning."
The Broward County Civic Arena ("Arena"), now known as the Amerant Bank Arena, 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, (collectively referred to as the “Panthers Parties”) on behalf of the County pursuant to the terms of the Amended and Restated Broward County Civic Arena Operating Agreement among the Panthers Parties and the County dated January 12, 2016 (the “Current Operating Agreement”). Under its existing terms, the Current Operating Agreement expires on June 30, 2028.
The Florida Panthers Hockey Club, Ltd. ("Panthers" or "Team"), a member of the National Hockey League and also a subsidiary of SSE, plays all of its home hockey games at the Arena through a License Agreement with Broward County and the AOC (“License Agreement”). This License Agreement was previously amended on December 8, 2015 (Item No. 67).
On September 17, 2024 (Item No. 57), the Board approved a term sheet based on the County and the Panthers Parties’ desire to extend their partnership including to ensure long-term success of the facility. This item reflects the terms of the Term sheet.
Motion A approves a Second Amended and Restated Operating Agreement among the County and the Panthers Parties. The term is of the Operating Agreement is extended through June 30, 2033, with two five-year renewals through June 30, 2038, and June 30, 2043, respectively. These renewals are at the County’s sole discretion. The Team has agreed to pay the County $51.5 million dollars. If the County does not exercise the renewal options, under certain circumstances, the County will be required to repay a portion of the amount paid to the County. The County will pay off the current outstanding debt related to the Arena, relieving the Panthers Parties and County of obligations related to that outstanding debt service.
The Operating Agreement provides that during the Initial Term, the County will contribute Fifteen Million ($15,000,000) annually towards the operating expenses of Facility and Ten Million ($10,000,000) annually toward certain capital expenses. The County will review and approve all operating expenses and capital expenses paid with County funds. This payment replaces the existing County Annual Contributions under the Current Operating Agreement (avoiding approximately $4.8 million over the remaining four-year term).
Under the Operating Agreement, the Panthers Parties continue to invest in the community through (i) donating at least $1 million annually to various community efforts in Broward County; (ii) contributing $300,000 annually to support youth hockey initiatives in Broward County; and (iii) increasing co-branded marketing assistance to Broward County from $500,000 to $1 million annually.
The Operating Agreement permits the Panthers Parties to provide a vision and plan to develop the County property around the arena for Board consideration and approval within four years after the date of execution of the Agreement. During this time, the County will refrain from developing its own plan for the surrounding property. If the Panthers Parties do not timely submit a vision and plan, enter into a land lease, do not commence development or complete foundational construction by certain milestones, the County may move forward with any development plan it desires.
The Operating Agreement also continues obligations and rights under the current agreement. The Team will (i) make “good faith efforts” to utilize registered Broward County small businesses for at least 25% of the work at the Arena (and community events) and (ii) provide 10% revenue share or EBITDA (earnings before interest, taxes, depreciation, and amortization) sharing (whichever is greater) with an increased revenue threshold compared to the Current Operating Agreement and 10% profit share in the event of a sale. The County has agreed to broad indemnification of the Operator and prevailing party attorneys fees. The Panthers Parties also have a right to specific performance against the County related to the noncompete provisions in the Operating Agreement.
Motion B seeks approval of a Second Amended and Restated License Agreement among the County, the Team, and AOC. The amendments primarily modify the License Agreement to align with the changes to the Operating Agreement, including extending the term of the Agreement and removing references to obligations related to the outstanding bonds. Updates were also made to add statutorily required language. The amended License Agreement also keeps in place certain nonstandard provisions from the current agreement like indemnification of the Team and prevailing party attorneys’ fees.
Motion C provides for the authority to redeem and pay off all or a portion of the County’s outstanding Professional Sports Facilities Tax and Revenue Refunding Bonds, Series 2016 (Broward County Civic Center Arena Project); all of the County’s outstanding Professional Sports Facilities Tax and Revenue Refunding Bonds, Taxable Series 2006B (Broward County Civic Center Arena Project) (collectively, the “Bonds”); and all of the County’s outstanding Non-Ad Valorem Taxable Refunding Revenue Note, Series 2018 (the “Note”) from available moneys of the County. The Second Amended and Restated Operating Agreement obligates the County to redeem and pay off the Bonds and the Note within 60 days after the Panthers Parties provide funds to the County.
Motion D directs the Office of the County Attorney to draft an Ordinance amending Section 31½-16 of the Broward County Code of Ordinances related to tourist development taxes. The proposed amendment will allow for the County to optimize the use of tourist development taxes consistent with Florida Statutes.
Motions E, F, and G seek adoption of budget resolutions necessary to implement initial commitments under the operating agreement for Fiscal Year 2025.
To ensure available funding for capital projects and compliance with the TDT statute, County Administration intends to seek debt financing through a letter of credit which will be submitted for Board approval at the appropriate time at a future meeting.
Source of Additional Information
Kevin Kelleher, Assistant County Administrator, (954) 357-7320
Fiscal Impact
Fiscal Impact/Cost Summary
Motions A, B: No property taxes are used to support the Arena. Funds for the first year of the New Operating Agreement in the amount of $25 million will be funded through Tourist Development Taxes and debt supported by the TDT. The fiscal impact of the remaining term of the initial term of the New Operating Agreement (eight years) is $200 million also funded through the TDT. Funding for upcoming years will be addressed through the annual budget development process. The County will also be receiving $51.5 million from the Panthers Parties and will be saving $4.8 million from avoiding annual payments to the Panthers Parties remaining under the Current Operating Agreement and may receive revenues under various revenue sharing opportunities in amounts to be determined according to the Current and New Operating Agreements for a net fiscal impact of $143.7 million funded through the TDT for the remaining term.
Motion C: This item provides for the refunding of all or a portion of existing bonds on the Broward County Civic Arena. This resolution has no independent fiscal impact or cost to the County.
Motion D: This item has no fiscal impact.
Motions E, F, G: Recognizes revenues and transfers existing reserves to appropriate expenditures related to defeasance of debt and other debt service costs, and for County Annual Contributions for County Allocated Operating Expenses. Motion E transfers existing reserves for $15 million of the $25 million in the first year. The remaining $10 million will be transferred at a later date.