Ruling on Miami Baseball Stadium Delayed by Pending Florida TIF Case

BRADENTON, Fla. - The long-awaited Florida Supreme Court decision over the fate of tax increment financing in the state has temporarily blocked a legal decision in the Florida Marlins quest for a new, $515 million Major League Baseball stadium in Miami.

In a court case challenging the stadium and a complex $3 billion plan that Miami and Miami-Dade County elected officials devised - based partly on the use of tax increment financing - a judge late Wednesday postponed her ruling in the Marlins case until the state's high court rules on whether TIF bonds require approval by public referendum before they can be sold.

Financing for the ballpark itself doesn't hinge on tax increment financing, but TIF revenue is part of a so-called mega-plan adopted by officials that depends on redistributing the tourist development tax that now secures debt sold to build a performing arts center.

The plan requires two community redevelopment agency districts to be expanded in order to use TIFs for other projects, including the performing arts center. That would free up some tourist tax revenues to support part of the bond financing to build the Marlins a 37,000-seat baseball stadium with a retractable roof.

Early this year, wealthy South Florida auto dealer, Norman Braman,filed a lawsuit against the mega-plan, claiming public funds were being misused. During a trial that began last week, Circuit Court Judge Jeri Beth Cohen dismissed most of the lawsuit leaving intact Braman's claim that a public referendum is required to use tax increment financing as well as another count challenging the use of pubic funds for the ballpark.

Cohen announced Wednesday that she did not want to rule on the question of a referendum until the state Supreme Court issues its final decision in Strand v. Escambia County. The high court is in recess through Aug. 15.

A decision in Strand has been pending since last October when the court held a rare rehearing on its own opinion, which said that governmental entities in Florida must get voter approval before issuing TIF bonds. The ruling could overturn 30 years of established case law in Florida. Because the legal question is pending, it has essentially stopped TIF bonds from being sold in the state since late last year.

One bond attorney familiar with the Marlins case said it is difficult to understand the relationship between the Marlins and TIF bonding in the Strand case.

"I think it's difficult to tie the outcome in Strand here," the attorney said. "The issue in Strand dealt with whether voter approval is required to issue bonds using tax increments. Certainly, I don't think any CRA bonds using tax increments are being issued for the Marlins."

Another outstanding issue in the Braman case is whether the stadium serves a "paramount public purpose." Cohen has asked for more information and said she would rule on that count within 10 days.

The Marlins have threatened to leave Florida and have negotiated with city and county officials for years over a new ballpark. Currently, the team plays in the National Football League's Miami Dolphins Stadium. The Marlins agreement to use Dolphins Stadium expires after the 2010 season.

The construction schedule for building a new ballpark is tight, and the team says a long delay in the court case could threaten opening of the ballpark before it must leave Dolphins Stadium.

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