Friday, January 27, 2012

Miami Herald's move to new building will cost $57 million

The former Southern Command HQ building at 3511 N.W. 91st Ave. in Doral
will become the Miami Herald's new home in May, 2013.

-via a Facebook friend: "According to Friday filing (bad financial news always is filed on a Friday) with the SEC...the cost to move The Miami Herald Newspaper from its bayside building to a compound in Doral: $57 million."

via Yahoo! Finance:
Costs Associated with Exit or Disposal Activities
Item 2.05 Costs Associated with Exit or Disposal Activities

Total costs related to relocating the newspapers' operations and for constructing the New Production Facility, including the purchase of the property, construction costs, accelerated depreciation, and moving expenses is estimated to be $57 million. (Emphasis mine.) This total includes $12 million of accelerated depreciation on existing assets expected to be retired or decommissioned, including two of the five existing presses. These costs will be incurred over the next 16 months. McClatchy expects an estimated $25 million, including the $12 million of accelerated depreciation, to be expensed over the 16 months and the remaining costs, approximately $32 million, to be capitalized. McClatchy is entitled to reimbursement of $6 million of these total costs from an escrow account established for that purpose by Bayfront 2011 Property LLC ("Bayfront") under the terms of that certain Purchase and Sale Agreement dated May 26, 2011 pursuant to which McClatchy and its subsidiary Richwood, Inc., sold MHMC's existing headquarters located at One Herald Plaza, Miami, Florida, to Bayfront.

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