Commission amends tourist‑development tax code to match Florida law; measure tied to arena financing
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Summary
The commission voted March 11 to amend County Code section 31‑16 to broaden allowable uses of tourist‑development tax proceeds to align with state law. County counsel and staff said the change enables proceeds to secure a letter of credit for the Broward County Civic Arena (Panthers) financing approved elsewhere on the agenda.
The Broward County Board of County Commissioners on March 11 enacted an ordinance amending county code section 31‑16 to expand the permissible uses of tourist‑development tax proceeds and align local code with Florida law.
County counsel explained the change "expands the use to align it with the permissible uses under Florida law," and county staff said proceeds from specific pennies of the tourist‑development tax — the fourth and fifth penny — will secure a letter of credit tied to the Broward County Civic Arena project. "It will be used for debt you actually approved as item 16 on today's agenda," Anika, a county counsel staff member, said.
Why this matters: Commissioners said the revision restores flexibility the county needs to use tourist tax proceeds for arena‑related obligations and other uses the state allows. The ordinance's sponsors said it was needed because the prior county code limited use to historic debt repayment and did not permit the planned use for the arena financing instrument.
Board action: A motion and second were made on the floor. The commission voted in favor; the clerk recorded an "Aye" vote and the item passed on the voice vote. The recorded motion referenced an updated exhibit and a related item on the agenda (item 16) that included a taxable revolving line of credit term sheet for the Civic Arena project.
Details and limits: County counsel and finance staff clarified the ordinance does not itself create a new debt but authorizes the county to apply proceeds in ways Florida statute permits; which particular uses and legal documentation are set through separate financing actions and the related letter‑of‑credit agreement approved on the agenda.
Next steps: Implementation steps include executing the revolving credit agreement and term sheet (distributed as additional material for item 16) and coordinating the use of the fourth and fifth penny proceeds as security for the county's arena payment obligations. Staff noted the specific vendor signature pages and substitute exhibits were submitted as additional material before the vote.
