What do you mean by “community venues”?

A venue is a place where people gather to learn, be entertained and make memories. It’s more than a building … it’s the area surrounding the building that makes it part of a neighborhood. Every city has public facilities. First-class cities go one step further with venues that build community pride and help define the region. While Orlando has world renowned visitor attractions, we are one of the only cities in the southeast that has not invested in modern, competitive arts, entertainment and sports venues. To catch up with other regions we need a new arena/events center, performing arts center and renovated Citrus Bowl.

Why are these projects important to me?

While people have different interests and needs, these venues would benefit residents across the entire Metro Orlando region.

Stronger Community – Revitalizing neighborhoods like Parramore is a primary objective for the City of Orlando. From designing buildings that compliment the surrounding areas, to encouraging new retail growth, to connecting neighborhoods … these venues are the biggest opportunity in decades to push that process forward.

Educational opportunities for our Children – Most people remember field trips or cultural experiences from their schooldays. A new performing arts center would give kids new experiences they would carry with them for a lifetime.

A Better Quality of Life – Life is about more than work, it’s about experiencing new things and meeting new people. These Venues would offer residents new places to come together and enjoy events currently bypassing Orlando such as U2 and Rolling Stones concerts and popular Broadway productions.

A Stronger Local Economy – Getting a bite to eat after a concert or shopping before the start of a play … these Venues would draw new customers to Orlando businesses. Also, a better quality of life can help “seal the deal” with corporations looking to relocate their offices and these venues would provide the local tourism industry with new experiences to market to visitors.

How are you ensuring that local residents benefit from the Community Venues projects?

Specifically, the Orlando City Council has approved the Memorandum of Understanding (MOU) with Workforce Central Florida to serve as the lead “umbrella” agency to plan and implement the workforce development plan outlined in “the Blueprint for a Sustainable Economic Impact.” Through the Blueprint, Mayor Dyer and the City Council have committed that the Venues projects serve as a framework and model for inclusiveness and community building throughout the various levels of contracting.

WORKFORCE CENTRAL FLORIDA is dedicating resources at no cost to ensure our local workforce is trained and ready for the billions of dollars of economic benefit the venues will bring through construction. As the lead umbrella agency, Workforce Central Florida will:

• Dedicate a full-time position to developing a Community Venues specific plan;
• Coordinate meetings with regional and local construction associations an  apprenticeship programs to determine types of positions needed;
• Coordinate outreach, recruitment and support of potential job applicants with community based organizations (“CBO’s”), public agencies and private businesses;
• Identify the need for and coordinate the training of area residents. Upgrade the current occupational skills of local workers to improve chances of hire and success on the job;
• Connect employers working on the Community Venues construction projects             with the potential applicant pool; and
• Encourage employers to take advantage of available services, including the
• Employed Worker Training Grants for continuing employee training.  Not only will       local residents gain employment opportunities, they will also see quality of life benefits. Residents no longer will have to go to Tampa, Jacksonville or Miami for entertainment. These Venues will bring them to their own backyard.

How are the transportation needs for the new Venues being addressed?

Ensuring convenient access to parking while meeting the transportation needs to and from the new Community Venues is a top priority of the City and each Venue partner.  Our goal has been to create a seamless system that incorporates multiple options and choices, an improved road network, a pedestrian-friendly culture, parking that is easy to access, and mass transit options. Through the development of a Community Venues Master Plan, the City has planned for more than double the current parking availability for both the events center and performing arts center.

Why is the Community Venues plan a prudent deal?

The Venues financing plan has been developed with the assistance of many experts in bond finance, including bond counsel, bond advisors, insurers, underwriters and many other contributors. In conjunction with the development of the financing plan for the Community Venues, the City addressed numerous risk issues and formulated appropriate mitigation strategies. The plan of finance that resulted is prudent, conservative and comprehensive, and has adequately mitigated risk.

Will using CRA funds hurt its ability to support new downtown projects?

No. The financial plan for the Community Venues will not reduce the CRA’s capacity to support other projects like commuter rail, new development and job creation efforts. In fact, the Economic Impact Study suggests the Venues projects will serve as a catalyst for additional growth within the CRA district, and each new building provides additional revenue that can be used for economic development.

Is the likelihood remote that more City or County property or other taxes, above what is projected in the finance plan, will be needed for either capital or operational costs?

The likelihood is remote that additional City, County or CRA contributions (either capital or operational) will be required based upon the analysis and the projections that have been carefully reviewed and considered during this due diligence and negotiation process. Considerable attention has been paid to providing for potential building and infrastructure cost increases and ample contingency funds have been provided as well.

How has the City minimized the risk of default of these Venues bonds?

The rate of default on municipal bonds in the United States is extremely low, less than one-tenth of one percent (.1%). It is safe to say the likelihood of default on bonds issued under this plan of finance is extremely small. The following summarizes how the City, with its financial experts, has worked to minimize the financial risk.

The City’s goal in structuring this finance plan was to work aggressively to find ways to mitigate any risk of default and to shield the City, the County and the CRA from the risk that would otherwise be present in these kinds of financial transactions. First, the City is issuing revenue bonds, rather than general obligation or covenant bonds. The fact that the bonds are revenue bonds means that the legal access bondholders have to resources of the City or the CRA is  limited to the revenue stream named in the bond indenture for the issue. Similarly, because these are revenue bonds, and neither the City nor the County is issuing or guaranteeing debt, in the event of default, there is no recourse to the City or the County. Thus, there is no risk that revenues other than TDT, reserves, or insurer payments – discussed below -- will ultimately be legally accessible to pay the debt.

Second, the City has established ample bond reserves for all the bonds that will be issued under the Community Venues financing plan. The CRA Tax Increment bonds and the 6th Cent Contract TDT bonds will have reserves equaling one year’s annual debt service. The 1st through 4th Cent TDT bond reserves will be two and one-half times one year’s debt service. Through these reserves, the City and County are protected from the volatility inherent in using TDT as a revenue source.

Finally, the Community Venues Interlocal Agreement requires that all debt issues be insured. If there is a revenue shortfall such that the debt service cannot be made, the insurer steps in to pay the debt until the revenue stream recovers and can pay future debt service and repay the debt service paid by the insurer.  

What happens to the Amway Arena and Bob Carr after the new facilities are built?

A final decision has not been made as to whether the Amway Arena or Bob Carr will be demolished. In fact, the City will determine the potential for reuse of these facilities in conjunction with the implementation of the vision developed by the Creative Village Concept Team. Building on the existing UCF School of Film and Digital Media and the Florida Interactive Entertainment Academy, the plan is to initiate a digital media neighborhood where innovative, high-tech digital media businesses come together with residential, retail and academia.

What if the City of Orlando is unable to sell the current arena site for the projected sales price of $90 million?

First, the planned redevelopment that will produce the $90 million is considerably  more than just the arena site. This includes all the City-owned land that will be part of the Creative Village, including not only the Amway Arena site but also the Bob Carr Performing Arts Centre site, a number of surface parking lots, certain property adjacent to both the arena and Bob Carr Performing Arts Centre, and some right-of-way that will be made available as a result of street realignments. The City is projecting that the sale of this property will commence sometime in 2011 and will continue for several years. Accordingly, the projects will likely be complete at the point that we determine the actual sales price for this property. However, the City has mitigated the risk that the committed funding will not be realized by (1) using a very conservative price per square foot and (2) not counting on any appreciation of this property in the assumed price. Prices for similar property have ranged from $86 to over $100 per square foot recently and the City’s assumption is $80 per square foot. Further, the City’s real estate consultants have said a conservative estimate would be to expect at least 3% appreciation annually.

How does the Magic contribution compare to other cities?

The Orlando Magic's contribution to the proposed Events Center is more than any other professional sports team in a similar sized market in regard to population/corporate base. In Memphis, the team contributed $16.2 million. In Indiana the team contributed $21 million. In Charlotte the team pitched in $23.2 million. And, in San Antonio, the organization contributed $42 million.

Why can’t the funds from the Tourist Development Tax be used for public safety or schools?

By state law, the TDT can be used only for convention centers, professional sports arenas, sports stadiums, and auditoriums; for the promotion of and advertisement for tourism in the State of Florida; for auditoriums; and tourist bureaus. What if the tourist industry slows down?

As a part of the plan of finance, the City modeled the effects of a terrorist attack similar to September 11, 2001—a worst case scenario— and determined that, with the reserves, the City will be able to recover without accessing our  insurance, spending revenues beyond those already committed, or defaulting on our debt.

How will you ensure that the Venue Partners will meet the guidelines outlined in the Development & Operations Agreements?

Mayor Buddy Dyer will establish the Mayor’s Citizens Oversight Committee (MCOC) to provide public oversight and review of the Community Venues projects. The MCOC is an ad hoc advisory board that will provide leadership, input and recommendations to the Mayor and City Council, as necessary, to help ensure that the three Community Venues project are:

• Completed in accordance with the development agreements in place;

• Completed on time, with the highest investment in quality possible; and

• Completed within the budget allocated.

The MCOC is designed to ensure accountability and transparency of the administrative and fiscal activities throughout the development and construction process.

What is the timeline for construction?

The construction planning and design for the Performing Arts Center will be completed in April 2009, begin construction in June 2009, and open to the public in 2012.

Construction on the Events Center will commence by summer 2008. The Magic and the City will work together to cause Substantial Completion to be achieved by the target opening date of 2010. The design will begin on the renovation of the Citrus Bowl in 2007 with construction anticipated to be substantially complete no later than November 2011. Construction activities on-site are planned to begin in 2009 and will be performed during the periods of February 1 through October 31 of each year to enable the Florida Classic, Champs Sports Bowl and Capital One Bowl to be played in the Citrus Bowl each year during the renovation.