NEW ORLANDO MAGIC ARENA

The 'New Orlando Magic Arena' is a description for a future sports venue in Orlando, Florida, United States. It is part of Downtown Master Plan 3, a plan that also involves improvements to the Citrus Bowl and a new performing arts centre.^[1] Its working name in government documentation is "Events Center". When it is completed, Amway, which holds naming rights to its predecessor venue, the Amway Arena, will get initial exclusive negotiation rights to name the venue. The arena, whose completion is expected in time for the 2010-11 NBA season, will be home to the Orlando Magic of the National Basketball Association and the Orlando Predators of the Arena Football League.

Contents

The Road to Approval

Design

Controversy

References

The Road to Approval

Prior to Downtown Master Plan 3, the Orlando Magic's ownership, led by Amway founder and billionaire Richard DeVos, had been pressing the City of Orlando for a new arena for nearly ten years. Amway Arena was built in 1988, and at present is the second-oldest arena in the National Basketball Association (behind KeyArena in Seattle). During various times in the late 1990s, the team even threatened to move elsewhere, though threats of imminent departure died down after the September 11, 2001 attacks and remained merely speculation. Still, some analysts suggested that the team might leave for newer arenas in Kansas City, Oklahoma City or even Las Vegas.
The Orlando Predators, in the meantime, are the oldest Arena Football League team still in their original venue. They have called Amway Arena their home since their first season in 1991. With the final approvals in place for the new arena to proceed, 2010 will be their 20th and final season in Amway Arena before they move with the Magic to the new arena.
On September 29, 2006, after years of on-and-off negotiations, Orlando Mayor Buddy Dyer, Orange County Mayor Richard Crotty, and the Orlando Magic announced an agreement on a new arena in downtown Orlando. The new 20,000-seat arena will be located at the southwest corner of Church Street and Hughey Avenue, with construction starting in early 2008. The site is referred to as the "Carolina Florida" site, and is further bounded by Parramore Avenue and South Street. The site will be developed with future planned changes to adjacent Interstate 4 in mind, with planning documents taking into account the plans for the fully-completed interchange with SR 408.^[2] The arena itself is estimated to cost around $380 million, with an additional $100 million for land and infrastructure, for a total cost of $480 million.
The Orlando Magic will contribute at least $50 million in cash up-front, and rent of $1 million per year for 25-30 years. The Magic will pick up any cost overruns. The City of Orlando will pay for the land and infrastructure. The remaining money will come from bonds which will be paid off by part of the Orange County, Florida, Tourist Development Tax, collected as a surcharge on hotel stays, which was raised to 6% in 2006. The Magic will guarantee $100 million of these bonds.
The new arena is part of a $1.05-billion plan to redo the Orlando Centroplex with a new arena, a new $375-million performing arts center, and a $175-million expansion of the Citrus Bowl. When it was announced in the media on September 29, it was referred to as the "Triple Crown for Downtown". The Magic are anticipating that the arena will be completed prior to the 2010-2011 regular season opener.^[3]
The details of the agreement were finalized on December 22, 2006. In the agreement, the City of Orlando will take ownership of the new arena, while the Magic will control the planning and construction of the facility so long as contracting procedures are done in the same public manner as governments advertise contracts. In addition, the City will be paid a part of naming rights and corporate suite sales, a share estimated to be worth $1.75 million the first year of the arena's opening. The Magic will receive all proceeds from ticket sales for Magic games, while the City will receive all proceeds from ticket sales to all other events (it is unknown if this includes ticket sales to Orlando Predators games). ^[4]
The Orlando City Council approved several operating agreements connected with the arena plans on May 22, 2007.^[5] The City Council approved the plan officially, 6-1, on July 23.^[6] The Venue plan receive final approval by the Orange County Board of County Commissioners, 5-2, in late evening of July 26 after a long day of public hearings.^[7] Amendments were made by the County Commission which were approved on August 6 by the City Council, 6-1, sealing the deal once and for all.
City officials said once the new arena is complete, the Amway Arena probably will be sold, and probably torn down. As part of Amway's naming rights to the venue formerly known as the TD Waterhouse Centre, the company will have exclusive rights to negotiate first for naming rights to the New Orlando Magic Arena.^[8].

Design

Design is currently underway in preparation for a Summer 2008 target date for groundbreaking. HOK Sport + Venue + Event was named the primary contractor on August 3, with Smith Seckman Reed and Walter P Moore Engineers and Consultants as planning partners. They immediately pledged to give priority to woman-owned and minority-owned subcontractors during construction.^[9]

Controversy

A few weeks after the passage of the financing plan for the arena, performing arts center and Citrus Bowl improvements, International Drive area hotelier Harris Rosen launched a petition drive for an initiative that would change the Charter of Orange County to require a public vote to approve any venue that costs more than $25 million and would use TDT funding for its construction.^[10] Rosen opposes use of TDT money for initiatives that do not directly benefit the tourism industry in Orange County. Rosen said he would drop the petition drive if Magic owner Rich DeVos donates $50 million to charitable causes and "adopts" the impoverished Parramore district of Orlando, in the same way that Rosen adopted the Tangelo Park district. DeVos supporters responded with a list of $22 million in recent charitable contributions within the community, in addition to $12.5 million he pledged to build five community centers throughout Orange County just prior to the Orange County passage of the funding initiative.^[11]
Government officials contend that, even if Rosen's petition advances and a resulting charter amendment passes, such an amendment would not affect the already-approved arena, performing arts center and Citrus Bowl improvements.¹¹

References

1. http://www.ci.orlando.fl.us/elected/venues/index.htm
2. http://www.ci.orlando.fl.us/elected/venues/pdf/Phase3MasterPlan.pdf
3. http://www.orlandosentinel.com/news/local/orange/orl-bk-magic09292006,0,1078507.story
4. http://www.orlandosentinel.com/sports/basketball/magic/orl-arena2306dec23,0,2811417.story?coll=orl-magic
5. http://www.orlandosentinel.com/community/news/conway/orl-venues22x07may22,0,1422627.story
6. http://www.orlandosentinel.com/community/news/downtown/orl-venues2407jul24,0,2226250.story?coll=orl_tab01_layout
7. http://www.orlandosentinel.com/community/news/downtown/orl-mvenues2707jul27,0,7725553.story?coll=orl_tab01_layout
8. http://www.orlandosentinel.com/news/local/orl-bk-amway1106dec11,0,715126.story
9. http://www.orlandosentinel.com/sports/basketball/magic/orl-bk-hoksports080307,0,4337143.story
10. http://blogs.orlandosentinel.com/news_politics/2007/08/hotelier-pushes.html
11. http://www.orlandosentinel.com/community/news/downtown/orl-venues2207aug22,0,5114417.story?track=rss