FOR IMMEDIATE RELEASE:
Brie Turek (407) 246-3106

City of Orlando and Orlando Magic Complete
Development and Operational Agreement: Summary of Terms and Conditions

ORLANDO, Fla. (December 22, 2006) – The City of Orlando’s Chief Administrative Officer Byron Brooks announced today that the City and Orlando Magic have concluded discussions and completed a Development and Operational Agreement: Summary of Terms and Conditions.

Completion of this document was a key step in the process as City and Orange County staff work to complete an interlocal agreement for three new and upgraded Community Venues, including the Events Center, Dr. P. Phillips Performing Arts Center and renovated Citrus Bowl.

There are several important aspects of this agreement with the Orlando Magic:
The Magic have confirmed their financial role in construction of the Center remains the same as was outlined in a Letter of Understanding signed by Orlando Mayor Buddy Dyer and Orange County Mayor Rich Crotty on September 29, 2006.
The Magic will make a contribution of $50 million dollars in cash, a $1 million annual lease payment that equates to $12 million on a present value basis, and $42 million in present value of future revenues, including naming rights, suites and advertising. The Magic will also assume cost overruns, and will guarantee to purchase or provide purchasers for $100 million of growth based 6th Cent TDT bonds. In addition, the Magic have made a $10 million contribution to the Dr. P. Phillips Performing Arts Center.
The Magic’s annual contribution will increase more than $500,000 over their current contribution to the Amway Arena, raising the Magic’s total annual commitment to $2.75 million. This increase is due to the City receiving a significantly larger portion of the new venue’s advertising and naming rights.
The City will continue to operate the venue, and the City will receive 100% of the revenues for all other events held at the Events Center, including concessions, merchandise, ticket sales and parking. This revenue will offset the Center’s operational costs.
In Charlotte, Memphis, San Antonio and Indianapolis the team operates the building. Therefore, the teams receive 100% of all revenues from all other events with the exception of the Livestock & Exchange show in San Antonio. That includes tickets, concessions and merchandise. City officials believe that by continuing to operate the building, they will be able to bring more opportunities to the residents of the region.

“This agreement confirms that the Magic are ready to move forward with a Downtown Events Center,” said Orlando Mayor Buddy Dyer. “We’ve come to an agreement that is good for the City and the taxpayers. In fact, our final deal nearly doubles the initial up-front contribution proposed by the Team at the onset of the negotiations, significantly increases the annual contribution of the Magic over the current agreement, and guarantees the City will receive these operational funds annually rather than the current structure that can fluctuate year-to-year.”

The next step of this process will be for the document to be brought before City Council early next year. In addition, City and County staff are continuing work to complete the interlocal agreement that will put the financial structure in place for all three Venues. That interlocal agreement is also expected to be voted on by the Orlando City Council and Orange County Commission in early 2007.
 

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