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SBD/Issue 154/Facilities & Venues
Orlando To Consider Increasing Rental Rates At Amway Center
Published April 23, 2010
|New Amway Center Is About Three Times
The Size Of Current Amway Arena
Orlando City Commissioners on Monday "will consider a plan to raise rental rates" at the Magic's new Amway Center, according to Mark Schlueb of the ORLANDO SENTINEL. City officials "point out that the rent for ticketed events such as concerts hasn't changed since 2001, and the rate for community events has been the same since 1991." The 800,000-square-feet Amway Center, set to open in October, will "dwarf the Amway Arena." Orlando Venues Exec Dir Allen Johnson noted the new venue is "about three times the size of the current Amway Arena." Johnson: "It's just like if you bought a house that's three times the size your apartment was, you'd expect your utilities and maintenance to be higher." Schlueb notes city officials for ticketed events such as concerts at Amway Arena "start with a base rent that could include a percentage of receipts, but typically negotiate each deal separately with a promoter." That "will still be the practice at the new building, but the minimum base rent will increase from $5,000 to $25,000." Promoters also "typically pay a negotiated maximum amount for many concerts," which is "now about $50,000 and would increase to about $65,000 at Amway Center." The $65,000 is "on target with some other venues, such as" FedExForum, Time Warner Cable Arena and Scottrade Center. The city also "began adding a 'facility fee' to ticket prices in 2005 that is $1 for most tickets," and under the new plan, the fee "would double to $2 for most tickets." Schlueb writes the biggest impact of the proposed rate increase "could be on the high schools that use the arena to host graduation ceremonies." For community events, the city "now charges $5,000 rent plus expenses," but the proposed rate "would triple to $15,000 plus expenses." Eleven Orange County schools will hold their ceremonies at Amway Arena this year, in addition to schools from other districts. Johnson said that the city "will negotiate fair rental rates with the school districts" (ORLANDO SENTINEL, 4/23).