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Published: February 01 2012

Photo by NNN Corners

Broward County Commissioners have approved a $7.7 million dollar loan to renovate the BankAtlantic Center Panthers Arena with prospects to share in future profits. The Florida Panthers Arena is a county owned building managed by the Arena Operating Company. (AOC) The agreement requires that Broward County receives 20-percent of any profits once the arena has reached a profit margin of $12-million in any year. Commissioners were told the potential to exceed that profit threshold looks promising.

"Your Florida Panthers are currently tied for first place in the southeast division and the Bank Atlantic Center finished 2011 ranked ninth in the United States," said AOC President Mike Yormack.

The loan guarantees an interest rate of at least four-percent. The money will fund a premium center ice seating area and executive club and suite level seating. Commissioners agreed that once profits begin to come in, the first $250,000 slated for the county will go into a newly established Capital Expenditure Reserve Account fund for future capital improvements. The Arena Operating Center will also contribute $250,000 to the fund. If the County profit margin is not reached, AOC is responsible for the full $500,000 contribution.

"The best way to describe it is we are the landlord; they are our tenant, but they're an interesting tenant because they have the potential to raise money for us that could go into the general funds through which we could reduce taxes, do other capital projects, a host of things," said Commissioner Ilene Lieberman. "They want a loan from us to do improvements inside the arena, which will raise us more money."

"As a venue, we're getting customers from not only out of town but from Palm Beach and Broward County who end up going to shop or eat at Sawgrass Mall or elsewhere in Broward County," said Commissioner Dale Holness.

Commissioners debated the terms of the loan. Commissioners Sue Gunzburger and Lois Wexler referenced the County Auditor's report that questions how money deposited in the newly created fund could be used. "When I see the opportunity to get monies for some of our other capital improvement projects and beach re-nourishment which brings the tourists here, I cannot support the loan agreement as presented," said Gunzburger.

"I think there's a great deal of merit to improving the venue, generating more money, and having it as a loan. But for the capital expenditure reserve and taking off the top of what would come back to the county on its surface is not something that I would find palatable," said Commissioner Lois Wexler. "When in doubt, I tend to vote no."

Mayor John E. Rodstrom argued that the loan is to keep the Bank Atlantic Center a viable, attractive venue that would serve the community and generate long term benefits. "The fact that they want to spend more than $7 million, the fact that they're willing to pay us interest on the money and they're going to plow it right back into capital improvements, it's not money going into their pocket. It's going to be used for the benefit of this facility for the long haul," said Mayor Rodstrom.

Commissioners voted six to two in favor of the loan. Commissioners Gunzburger and Wexler voting against the loan as proposed.

Commissioners were told the improvements are expected to create more than 200 permanent full and part time jobs in addition to a host of local construction contracts and vendor opportunities in Broward County.