The biggest question about PortMiami’s new $700 million bond issue is not whether the port needs investment. It does. The question is why Miami-Dade County is rushing to lock in 30 years of debt before the person hired to lead the port has even had the opportunity to review the plan.

Jonathan Daniels, a nationally respected port executive who successfully led Port Everglades and the Port of Baltimore, takes over as PortMiami director on Aug. 10 because the county wanted stronger leadership, better oversight and a fresh set of eyes after years of questions surrounding major decisions, including the Fisher Island fuel facility controversy. Yet before Daniels spends a single day on the job, Miami-Dade is preparing to price a bond issue that will shape PortMiami through 2056.

The question is simple: Why not give the new director 90 days to evaluate $700 million in borrowing before committing the port for the next three decades? If the plan is as solid as the administration says, it should easily withstand a 90-day review.

The deal at a glance.
The Miami-Dade County Commission approved Agenda Item 261220, authorizing up to $700 million in Seaport Revenue Bonds, Series 2026. The financing plan calls for approximately $655.6 million in borrowing, including about $380 million for nearly 20 capital projects, $200 million to refinance commercial paper, and the balance for reserves, capitalized interest and issuance costs.

The debt will be repaid from PortMiami revenues through 2056, with an estimated $968 million in interest and $1.62 billion in total debt service. This is not routine financing. It is a 30-year commitment that will affect future budgets, future commissions and the long-term competitiveness of PortMiami.

Why now? The timing does not add up.
Nobody is arguing against investing in PortMiami. The port needs modern cranes, stronger bulkheads, improved terminals and reliable infrastructure to remain one of America’s premier cruise and cargo gateways. The issue is timing.

Miami-Dade hired Jonathan Daniels to provide independent leadership and accountability, then moved forward with a $700 million borrowing package before he had the opportunity to evaluate the projects, review the priorities or recommend changes. If new leadership was important enough to recruit nationally, it should be important enough to listen to before committing the port through 2056.

Borrowing more expensive money.
The county is replacing cheaper short-term financing with more expensive long-term debt. The $200 million in commercial paper being refinanced currently carries an interest rate of about 2.49 percent, while the new bonds are expected to cost approximately 5.28 percent, with the 30-year bond carrying a 5.50 percent coupon.

The county’s own financing documents show no net present value savings and roughly $369 million more in total debt service. Taxpayers deserve to know why Miami-Dade is locking in higher-cost money for the next 30 years.

Who really pays?
County officials will point out correctly these bonds are not backed by property taxes. They are repaid from PortMiami revenues. But that does not make them free. Every dollar of debt service comes from fees charged to cruise lines, cargo carriers and port users, and those costs eventually reach passengers, businesses and consumers.

At the same time, PortMiami competes every day with Port Everglades, Jacksonville, Savannah and Houston for the same cargo and cruise business. If debt payments continue rising while capital reinvestment falls behind, the port will not lose business overnight. It loses it slowly — one cruise, one cargo contract and one customer at a time. The debt, however, remains.

Borrowing money to pay interest.
Nearly $100 million of this borrowing does not build a terminal, repair a bulkhead or purchase equipment. The financing includes $76.2 million for a debt service reserve fund and $21.2 million in capitalized interest, meaning taxpayers are borrowing money to help pay the cost of borrowing money. When the final obligation reaches $1.62 billion, every dollar deserves scrutiny.

The biggest project has no price tag.
The largest question mark remains the Fisher Island fuel facility. The county is moving forward while the final purchase price is still unknown, with reported appraisals ranging from $25 million to $430 million. That is an extraordinary gap.
Borrowing before knowing the final number leaves taxpayers wondering what happens if the price comes in higher. Do projects get delayed? Does the county borrow more? Those questions should be answered before the bonds are sold, not afterward.

Where is the project-by-project accountability?
The bond package lists projects ranging from Berth 10, Terminal G and Terminal AA to bulkhead rehabilitation, gantry cranes, shore power, rail improvements, parking facilities, security upgrades and the fuel facility property.

Yet taxpayers never see individual project budgets. They see one $380 million number covering roughly 20 projects, with no public ranking of priorities and no way to know whether critical infrastructure comes before administrative buildings or parking garages. Twenty projects and one pot of money — that is not the transparency taxpayers deserve.

PortMiami needs a scorecard.
Miami-Dade needs a public PortMiami dashboard showing every major project, every budget, every contractor, every deadline and every dollar spent. Taxpayers should be able to see what is on budget, what is behind schedule and what results are being delivered. A $1.62 billion commitment deserves more than a commission agenda item buried online. It deserves a public scorecard.

The new director deserves a chance.
The problems at PortMiami were not created overnight. They came from years of decisions, shifting priorities and too little accountability. If Miami-Dade believes new leadership is the answer, then Jonathan Daniels deserves the opportunity to review the biggest financial commitment facing the port before it becomes final.

Maybe this is the right bond issue. Maybe every project belongs on the list. But taxpayers have every right to ask questions before Miami-Dade commits PortMiami to 30 years of debt. Accountability is not an obstacle to progress. It is the foundation of good government.

One commissioner recognized that. Commissioner Raquel Regalado was the only member of the Miami-Dade County Commission to openly question the borrowing plan and the only commissioner to vote against Agenda Item 261220. Whether you agree with her or not, a financing package that will cost approximately $1.62 billion over the next three decades deserved far more public discussion than it received.

Before approving $700 million and 30 years of debt, taxpayers deserve answers.

If you have comments, questions or ideas, call Grant Miller at 305-323-8206 or send email to grant@cnews.net.

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