MIAMI (CBSMiami) – The Miami Heat received a new arena deal on Tuesday as voted on by Miami-Dade county commissioners. The deal allows the county to immediately begin accepting a stream of $1 million donations that will go towards the county’s parks department. In exchange, the Heat has been extended an additional five years of operating subsidies, currently equating to more than $6 million.
The new deal, approved by a 10-2 vote by county commissioners, was endorsed by Mayor Carlos Gimenez. He calls it a significant improvement of the current profit-sharing agreement that has generated very little money for Miami-Dade since the county-owned arena opened in 2000, according to CBS4 news partner The Miami Herald.
With the new deal, the Heat’s current subsidy package is essentially extended through 2035, replacing the original 1997 agreement that would’ve expired in 2030. The additional five years will see the current $6.4 million hotel-tax subsidy increased to $8.5 million. In exchange, the Heat immediately will begin donating $1 million, through payments, to the parks department.
Assuming the profit-sharing agreement doesn’t produce any extra dollars for the county, the deal will cost Miami-Dade County an additional $19 million through 2035, according to CBS4 news partner The Miami Herald.
The existing profit-sharing deal now comes to an end with this new agreement. That includes any profits that would normally be shared when the Heat’s current fiscal year comes to a close on June 30. The Heat will now make an extra $1 million payment this year as a result of retroactively ending the profit-sharing agreement, according to CBS4 news partner The Miami Herald.
(TM and © Copyright 2014 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2014 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Miami Herald contributed to this report.)