BRADENTON, Fla. – Miami, Miami-Dade County, and Major League Baseball's Miami Marlins appear to have dodged regulators' bullets, at least for now.
The Securities and Exchange Commission told the trio in separate letters that the agency's staff does not intend to recommend enforcement action as a result of its four-year-long probe into the financing of the team's $515 million stadium and $100.7 million parking facilities.
The SEC's investigation has concluded, according to Feb. 10 letters received by the city and the county.
The recommendation "must in no way be construed as indicating that the party has been exonerated or that no action may ultimately result from the staff's investigation," Elisha L. Frank, SEC assistant regional director of enforcement, said in the letters.
Miami, which faces SEC charges in a separate matter,
The county's letter was made available after a public records request from The Bond Buyer. The Marlins received the same notice as the city and the county, team attorney Mitchell Herr, a partner with Holland & Knight, said Friday.
"At this point it's our understanding there is no longer any investigation of the Miami Marlins or anyone associated with it," Herr said in a statement. "We're happy that this is closed."
Regulators launched an investigation in December 2011 into bonds that were issued to build the 37,000-seat retractable-roof baseball stadium in downtown Miami.
The SEC sought an expansive list of documents, videos, and audio recordings relating to the financings, and dealings with MLB and the Marlins, including the ball club's ability to contribute to the stadium financing.
The Marlins contributed $154 million to the project while the rest was publicly funded.
The Marlins threatened to leave south Florida if a new stadium wasn't built. The team previously played in the Miami Dolphins football stadium.
The baseball-only stadium opened in March 2012.
Miami-Dade County sold the bulk of financing for the facility, issuing $71.65 million of subordinate special obligation bonds in 2009, $219.65 million of professional sports franchise facilities tax revenue bonds in 2009, and $50 million of general obligation bonds in 2010.
The county sold another $35 million of taxable and tax exempt bonds in 2011 to finance a portion of the Marlins' contribution.
As part of its funding for the project, Miami issued $84.54 million of tax-exempt special obligation revenue bonds and $16.83 million of taxable revenue bonds in 2010 to build four parking garages and retail space for the stadium.
Miami still faces legal action instituted by the SEC that is unrelated to the ballpark.
In July 2013, the SEC filed a federal suit against Miami and the city's former budget director, Michael Boudreaux, alleging that they made materially false and misleading statements and omissions about interfund transfers to cover up a growing general fund deficit and get more favorable bond ratings for offerings in 2009.
The commission also charged that the two parties included false and misleading information in Miami's fiscal year 2007 and 2008 comprehensive annual financial reports.
"Miami and the Securities and Exchange Commission continue to have dialogue on settling the case and the Securities and Exchange Commission and Michael Bourdeaux are at an impasse," Mediator Gerald B. Wald reported to U.S. District Judge Cecilia Altonaga in a December report.
A discovery hearing in the case is scheduled for 2 p.m. Thursday in Miami before Magistrate Judge John J. O'Sullivan.
