The City of Orlando voted on Monday to approve a feasibility study for the Orlando Magic to examine constructing a sports and entertainment complex, north of the new Amway Center. In a 6 to 1 vote, with Commissioner Phil Diamond (District 1) saying “nay”, the agreement, which also entails an option for the Magic to purchase nearly five acres of land, easily passed the City Council.
Orlando Mayor Buddy Dyer said, should the project move forward, some $100 million would be invested by the Magic, leading to the creation of at least 300 permanent jobs, dining and hotel and entertainment options for residents and visitors, thereby continuing the revitalization of downtown Orlando and the Parramore neighborhood.
He added that the feasibility study would entail several dimensions, including replication of the existing parking, recognition of the eleven merchants that currently occupy exisitng buildings on the proposed site, and an open and transparent process, engaging all stakeholders in Parramore.
Orlando Magic President, Alex Martins, in presenting the concept to the City Council said, it offered an “exiciting opportunity” to invest in downtown Orlando and create jobs. If the project goes forward, it can be beneficial for businesses, as more people would be drawn to the area year round and not only on event days.
Martins said that the Magic had looked at other downtown arenas in Los Angeles, Memphis, Nashville and Columbus and they have all been very successful. This had not yet happened in the case of the Amway Center, as the economic recession had haulted new development up until now.
He said, the development entity, known as SED Development, which consists of Magic’s owners and will likely include other investors, plans on investing about $2 million for the conduct of the feasibility study and any development plans would require the City Council to vote on it before the project could proceed.
“There is no burden on the city,” Martins said. “…..But allow us to conduct the feasibility study, without selling the land and allow us to come back with a development plan for the area on which the Council will vote.”
If the plan goes ahead, the Magic will move its headquarters, currently located near Maitland at the RDV Sportsplex, into the new sports and entertainment complex, Martins said.
Like Dyer, Martins acknowledged the challenges that any feasibility study must address, including parking, housing for the Orlando Police Department’s fleet, and the street level merchants. He added that the only thing that is known for sure at this stage, is the construction of a mid-rise office tower.
“Our goal for these (existing) merchants here now is to take a step ahead of where they are now. We’re going to draw more people into this corridor and this will become a 365 (day) portion of downtown,” Martins said. “Right now there might be 150 events at the arena a year that are drawing people into this section of downtown. But this development will draw people here every day with 300 full-time employees and would include the headquarters of the Magic.”
Diamond, the lone Commissioner who voted against the feasibility study and the purchase option agreement said, while there certainly were some benefits if the project goes ahead, more information is needed. He added that although no other investor besides the Magic had come forward to develop the land, “no one knew about the property being up for sale.”
He expressed disapproval that no other alternatives, other than the Orlando Magic’s proposal were being considered and said the process had not been open and transparent.
While the Council was voting today on a feasibility study, Diamond said, it would be very difficult for the the City to say “no”, at its conclusion. He added too that the land was being sold at a low point in the real estate market.
Commissioner Daisy Lyunum (District 5) and area representative, said, while there had not been “extensive conversations” on the Magic proposal, there had been efforts over time to develop the Parramore area. She added that she had read the agreement critically a few times, and did not believe that all the answers had to be provided at this time.
“I would rather do business with somebody (Orlando Magic) I know, ” Lynum said. “We already have a relationship with the Orlando Magic.”
Notwithstanding her support for the feasibility study, the city was not bound by anything it didn’t want to do, she said.
“This is a great opportunity, but we have to be very targeted to make sure Orlando does not repeat what other cities have done with gentrification,” Lynum cautioned. “I do not wish to see people who have made Parramore their home for seventy or eighty years, pushed away.”
She vowed to fight for the people in Parramore and to work diligently to make sure there is room for them in any planned re-development of the area.
Five members of the public offered testimony, largely embracing the changes, saying they are “excited” about the proposed new development. Most urged though, that the merchants in the area “not be left behind” in the re-development of the area.
Commissioners Tony Ortiz (District 2), Robert Stuart (District 3), Patty Sheehan (District 4) and Samuel Ings (District 6), along with Mayor Dyer, all lent their support and voted “yes” for the feasibility study and the purchase option agreement between the City of Orlando and SED Development.
