It’s a go — construction of the much-troubled Dr. Phillips Center for the Performing Arts (DPAC) downtown Orlando.
After months of uncertainty, Orlando’s Mayor Buddy Dyer and the DPAC Board announced on Wednesday, a new plan which will see the new performing arts center break ground in June. And there is even a back up plan too!
Expected to generate approximately 3,000 Orlando-area jobs, while creating an economic impact of more than $315 million in its first stage of development, the new plan announced today, relies on several funding sources, including Tourism Development Tax (TDT) revenues to the tune of $43 million over the next four years. The Guaranteed Maximum Price (GMP) for construction of the first phase of the Performing Arts Center is $130.1 million.
In announcing the new plan, Dyer said that tourism development tax receipts were rebounding faster than anticipated, due to an uptick in Central Florida’s tourism, following the Great Recession. As a result, he was confident that there would be sufficient TDT revenues to cover the cost of construction and the backup financing plan would not have to kick in.
In addition to the TDT revenues, the bulk of the first phase of the Dr. Phillips Performing Arts Center will come from already issued CRA bonds, TDT revenues already received and state funding of $15 million.
But should hotel taxes fall short, there is a contingency plan in place consisting of a $16 million line of credit, $25 million in reserves and interest earned of $2 million from the TDT reserve over the course of the project.
Earlier this year, construction of the performing arts center appeared in jeopardy when Orange County’s newly elected Mayor Teresa Jacobs turned down DPAC’s request for a bridge loan to enable the project to break ground. Citing the precarious nature of the County’s finances, Jacobs said “no”. She was critical too, of how the project was being managed and questioned its viability and transparency, in addition to its funding arrangements. Jacobs was conspicuously absent from today’s announcement and Orange County government is not part of the new plan.
Over the intervening months, a new non-profit entity, the Orlando Community Construction Corporation (OCCC), was established to provide governance over the management and construction of the project. As well, a sound operations plan, reflecting industry standards and with input from major operations experts in the local market, including Walt Disney World, Orlando Magic and Universal Orlando was developed.
While the plan calls for annual fundraising of $2 million, DPAC said, given its history of donations and the wealth statistics of the Orlando market, it felt certain that such a goal is achievable.
The Dr. Phillips Center with its new theaters, restaurants and public spaces on South Orange Avenue is expected to dramatically enhance the quality of life and opportunities for cultural enrichment throughout Central Florida, as well as, reach more than 100,000 students annually, through arts education programs, training seminars and school-day performances, among others.
