Orange County Mayor Reaches Arena Funding Deal With Magic
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Vander Weide Says Work Still To Be
Done On Arena Deal With Orange County
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Orange County (FL) Mayor Rich Crotty “reached a deal Friday” with the Magic on the team’s contribution for a new $480M arena, according to Damron & Schleub of the ORLANDO SENTINEL. But the plan for the arena, performing arts center and upgrades to the Citrus Bowl, “requires approval of five of seven county commissioners, and most of them have signaled they are not happy with the Magic’s contribution” of $50M cash, up to $60M in long-term lease and revenue payments and an additional $29.5M in financing arrangements. County Commissioner Bill Segal: “The Mayor’s got a deal. But I don’t know that he’s got five votes for it.” The team indicated that it “would concede on certain loan and interest provisions the county had sought” and “agreed to pay any remaining arena debt if the franchise relocated to another city, something the Magic already had signaled it could agree to.” The “only new provision that could cost the team money requires the Magic to pay excess interest costs on a higher risk loan,” which “could cost the team an additional $5[M] during the next five years.” In return, Crotty agreed to “immediately secure the entire $270[M] in loans to fund the arena” (ORLANDO SENTINEL, 4/21). Magic CEO Bob Vander Weide: “We got a deal in principle, and I’m happy for that. But we have to continually see significant strides over the next 60 days” (ORLANDO SENTINEL, 4/22).
OPINION PAGE: A Mason-Dixon survey of 500 Orange County residents last Monday and Tuesday found that 48% supported building the three venues when they are “wrapped together in a single $1[B] package,” with 40% opposed and 12% undecided. However, only 41% favor building an arena when it is on its own, compared to 48% opposed. When told of the Magic’s contributions, 69% “said it wasn’t enough,” while 20% “described it as ‘about right.’” But Magic COO Alex Martins said the team does not “feel our contribution was adequately depicted” in the survey. He added that “telling residents the team would not own the facility or that it would use it less than 25[%] of the time would have increased support for the team’s contribution” (ORLANDO SENTINEL, 4/22). An ORLANDO SENTINEL editorial noted the remainder of the costs would be paid for by tourist taxes, and stated, “These three venues present an unprecedented opportunity for city and county commissioners. By following the lead of Orlando Mayor Buddy Dyer and [Crotty], they can build entertainment venues that rival any in Florida, and they can do it at virtually no cost to local taxpayers” (ORLANDO SENTINEL, 4/22).
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