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Major League Soccer takes Big Step with Tax Break Bill

Crew Stadium - Columbus, Ohio
Crew Stadium – Columbus, Ohio

Orlando’s quest to lure a Major League Soccer club took a step forward Tuesday when a Senate committee approved a $2 million incentive package to help local officials build a stadium and attract a team.

By unanimous vote, the Senate Commerce and Tourism Committee passed a bill (SB 358) that would expand a $2 million a year sales tax exemption now enjoyed by eight other professional sport franchises.

Senate sponsor Sen. David Simmons, R-Altamonte Springs, said the bill would require any interested party to pony up at least half the money for the stadium. Further, if the plans didn’t work out, the local government, not the state, would be on the hook.

“The money that is generated from the operation of the facility actually pays for the tax that would be used to construct the stadium,” Simmons told committee members. “That is the beauty of this arrangement.”

As written, the bill does not single out Orlando, but would provide for up to two incentive packages to teams, which would be required to sign at minimum a 10 year contract. The duration raised concerns, with some committee members saying they would like to see teams obligated to stay for much longer before guaranteeing state help. If a local government sold bonds, for example, they would be on the hook for 20 or 30 years.

“This is the year when we are trying to look at incentives in a nice, factual and reasonable way so we promote sports and we promote a lot of things without giving away the store,” said committee chairwoman Sen. Nancy Detert, R-Venice.

Orlando officials say they’re looking for at least a 20 year commitment before going forward with a stadium, a 20,000-seat facility that would also be used for local clubs and other events.

Florida was home to two MLS teams, the Miami Fusion and the Tampa Bay Mutiny, both of which folded in 2001 as the league contracted. Backers say the increased popularity of the sport is prompting the league to take another look at the southeastern U.S. with potential cities including Atlanta, Orlando, Tampa and Miami.

Qualified projects must guarantee attendance of at least 300,000, but backers say that an Orlando-based team would attract more than double that.

“We would very much like to see major league soccer come to Florida,” said Kathy Russell, a lobbyist representing Orlando. “It is going to go somewhere in the Southeast. We hope it’s Florida and we would like it to be Orlando.”

by Michael Peltier

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