Another local government is set to pony up millions of dollars in support of a South Florida sports franchise and, not surprisingly, there is some reaction against the move.
This time it’s the Florida Panthers and their owners Sunrise Sports and Entertainment that stand to benefit from a $7.7 million loan from Broward County, if commissioners approve the measure as expected on Tuesday.
The money will be used to upgrade the facilities at the BankAtlantic Center, which the county owns.
According to a report in the Sun Sentinel, the loan would go to improvements on digital signs, a new scoreboard, and a members-only club for upscale patrons, among other things.
"We're creating jobs, we're creating economic development, we're going to become more competitive as a center to compete for the rest of South Florida for events. So that's a great investment," Broward County Commissioner Dale Holness said.
"Enhancing the digital capability means that they can have multiple ads running on the board, rather than having static displays, so that's going to generate more revenue which makes them more profitable," Holness added.
The county used public money to build the $185 million arena in 1998, and despite a profit-sharing agreement with the team Broward taxpayers have not seen much in the way of revenues since then, according to the Sun Sentinel.
Sources familiar with the deal told NBC Miami that the $7.7 million loan will be paid back in no more than four years.
Despite the assurances by the team, some hoteliers do not want tourism tax dollars spent on supporting another sports franchise with tourism rates still below past levels. Among them is Heiko Dobrikow, general manager of the Riverside Hotel.
"I wish I could tell you that all our hotels are running at 100 percent occupancy, but as we all know but that's not the case," said Dobrikow, who is president-elect of the Broward chapter of the Florida Restaurant and Lodging Association.
Hotel leaders such as Dobrikow say the tax money should not bankroll the upgrades, and that it would better spent, perhaps, on ads and marketing overseas.
Local
"I would go into the international markets to promote Broward County," he said.
Dobrikow said Fort Lauderdale is a secondary tourist market, and the hotel bed tax revenues should be spent to directly promote tourism.
"When you have the Panthers play Canada or New York, fans will come," countered Holness. He said he believes the new amenities will entice tourists to spend money in Broward County.
To gain the support of commissioners, the Panthers have promised to give the county an increased share of the profit, if the team makes at least $10 million.
