FOR IMMEDIATE RELEASE
Mayor Dyer and Mayor Jacobs
Announce Plan to Kick-Off
Citrus Bowl Construction in 2014
Today, Orlando Mayor Buddy Dyer and Orange County Mayor Teresa Jacobs
laid out a plan that allows the design for the Florida Citrus Bowl
renovations to begin immediately with construction starting in January
2014. The Interlocal Agreement which was approved between the City of
Orlando and Orange County in 2007 is being modified because of the
impacts of the national economic decline. More importantly, this plan
gives added protection for taxpayers by increasing reserve funds and
establishing a backup plan in the event of another economic downturn.
In addition to addressing the Citrus Bowl, the amendment to the
Interlocal Agreement will address cost increases incurred by delayed
construction of Stage 2 of the Dr. Phillips Center for the Performing
The changes to the Interlocal Agreement will come before the Orlando
City Council on July 9 and the Orange County Board of County
Commissioners on July 10. The modifications to the Interlocal Agreement
• Removal of the “Jacobs Amendment” to provide equal prioritization of
the Citrus Bowl and the performing arts center, and allow the City to
issue bonds for Citrus Bowl construction earlier than currently
anticipated. The City commits this amendment will not delay the timing
of Stage 2 of the Dr. Phillips Center for the Performing Arts enter
beyond the point that all private funding required to complete the
building is available.
• The City of Orlando will issue bonds using revenues from the Tourist
Development Tax and will also provide the credit source to back the
Citrus Bowl bonds. Property taxes will not be used as a credit source.
Bonds are anticipated to be issued in 2014.
• The termination date for the Interlocal Agreement will be extended to
2046 or whenever the bonds are paid off, whichever comes first. This
change allows for the debt to be issued with a 30-year term and the
lowest possible annual payment.
• The City’s $21 million contribution to the Citrus Bowl required by the
2007 Interlocal Agreement has been set aside for the project.
• The City and County will establish two reserve funds to cover bond
payments in the case there is not surplus TDT funds. These reserve funds
do not change the amount of money obligated to the project by the City
and County as any shortfalls would eventually be repaid when the surplus
TDT funds become available.
o Per the 2007 Interlocal Agreement, the City has set aside a $25
million reserve to back the bonds. This reserve is sufficient to
cover Citrus Bowl bond payments for at least two years if there are
no surplus TDT funds.
o The County will establish a second reserve fund of $12.5 million.
This money is an advance of the County’s TDT contribution to the
- If, in any given year, the surplus TDT funds along with
part of the bond reserve are insufficient to make the bond
payments, the City will tap into its $25 million reserve
- The reserve fund would then be replenished by equal
contributions from the County’s reserve fund and from the
City. For example, if the City withdraws $4 million from its
reserve, the City or the CRA will repay the fund $2 million
with the other $2 million coming from the County reserve.
- In the event the County’s $12.5 million reserve is
depleted, it will not be replenished.
o If TDT funds generated in any given year exceed the amount
needed for the bond payment, for a 10-year period, the excess TDT
funds can be set aside to cover future shortfalls or to pay down
debt. This creates an additional “backstop” if there are years of
insufficient TDT funds.
• The Dr. Phillips Center for the Performing Arts will be given a
cost escalator similar to the one given to the Citrus Bowl. This is to
help cover the increased costs caused by delayed construction of Phase
2. This escalator will be in effect for a 6-year period from 2010 to
2015. It will increase the County’s contribution to the project by
whichever is less – the actual increase in construction costs or the
Consumer Price Index during the delay period. The escalator amount will
only apply to the publicly-funded share of Stage 2 project costs.
• Any contract TDT received in January 2013 will, in its entirety, be
used to reduce any guarantees or letters of credit for Stage 1 of the
Dr. Phillips Center for the Performing Arts. Additionally, any remaining
guarantees or letters of credit will be paid off when the first contract
TDT bonds are issued, no later than first quarter 2014.
Order of Bond Repayment: