Herald Move Carries A $57 Million Price Tag

The Miami Herald’s move to Doral is expected to cost the media company and its parent $57 million, according to a Securities and Exchange Commission filing by Herald owner McClatchy.
The move’s estimated cost includes relocating the company’s newspaper operations from its current 1401 Biscayne Blvd. property to the former U.S. Southern Command headquarters in Doral, construction of a production facility, the $3.1 million acquisition of the land for the facility, “accelerated depreciation” and moving expenses.
In addition, the company entered into a lease agreement to occupy a 158,000-square-foot office building that will house the business and news operations of the Herald and El Nuevo Herald. The triple-net lease, in which the tenant is on the hook for taxes, insurance and maintenance costs, will cost the company $1.8 million annually beginning in May 2013.
McClatchy is entitled to be reimbursed $6 million toward these expenses from an escrow account created when an affiliate of casino operator Genting Group paid $236 million in May 2011 for the Herald’s headquarters.
Source:  DBR



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