Ned Ryerson 94 Report post Posted February 15, 2007 Good News Magic Fans. This was front page on the Sentinel today... -------------------------------------------- DOWNTOWN MAKEOVER Magic offer may get ball rolling on arena deal Government leaders say the proposal shows promise and could spur negotiations. Orlando Magic officials unveiled a new financing proposal Wednesday that could break deadlocked negotiations with local officials over how to pay for a new $480 million arena. For weeks, the team and government officials have been at odds over $100 million that the team pledged to help the city of Orlando borrow. The snag sidetracked any agreement on a larger overall $1 billion package for an arena, a new performing-arts center and renovations to the Florida Citrus Bowl. Magic Chief Operating Officer Alex Martins said the team may have broken the logjam with a new loan-guarantee package. The team plans to purchase up to a $6 million insurance policy that could guarantee all the arena loans come without prohibitively high interest rates. "There are a couple major issues the county has asked us to resolve," Martins said. "And this is certainly the biggest of them." Orange County Mayor Rich Crotty, who recently asked Orlando elected leaders to postpone approval of a Magic deal, said the latest loan plan "holds a lot of promise." Orlando Mayor Buddy Dyer has negotiated the arena deal and spearheaded passage of the larger venue package, but he needs Crotty's support. That is because county leaders control the deep pot of hotel taxes required to finance construction. "I think it's a step in the right direction," Crotty said. The dispute centered on a Magic pledge to secure part of the loan to build an arena. For its part, the Magic have offered $50 million in upfront cash and an additional $12 million in advance lease payments that the city may decide to use for construction costs. The team also pledged an additional $1.75 million a year toward the ongoing cost of operating the arena, and a $10 million gift toward financing the new arts center. To build a $480 million arena, the city needs to borrow about $270 million, with the rest of the facility construction funding coming from the team, city coffers and other sources. That $270 million is expected to be paid back from tourist taxes. Only $170 million of that loan can safely be backed up with the county's tourist-tax revenues. When the arena deal was announced in September, city and county officials said the Magic's pledge to help the city borrow the additional $100 million was key. Orange County officials expected the Magic would essentially co-sign on the arena loan. However, county officials say the team seemed to back away from that plan in favor of one that could cost taxpayers up to an extra $37 million in interest as the debt is paid off during the next 30 years. At a Dec. 8 meeting of the team, city and county, the Magic's bond advisers suggested the $100 million could be secured at an interest rate of about 5.9 percent, compared with the competitive market bond rate of about 4.2 percent, county records show. County negotiators balked at that proposal. They said the Magic's pledge largely amounted to a promise to help the city secure a high-interest credit card to finance the arena -- one Orlando could get on its own. Magic officials insisted the team was honoring its original pledge and said the team's loan plan would not cost taxpayers more money. The dispute stymied arena talks for weeks. On Wednesday, Magic team officials said they would be willing to purchase a roughly $5 million to $6 million insurance policy that could lock in an interest rate on that $100 million loan that would all but ensure taxpayers don't get left on the hook for a costlier borrowing plan. County negotiators said that for this latest loan plan to work, the Magic's insurance policy needs to secure a truly competitive interest rate for the last $100 million, and if any debt repayments are not covered by tourist taxes, the team or the insurance company will cover those costs. With the loan issue closer to resolution, negotiators have just a few points left before city and county commissioners could be asked to vote on approving all three projects. One other concern raised by county negotiators revolves around how much latitude Magic executives would be given to trim amenities from the building to avoid going over budget. The team has promised to cover any cost overruns on the center. Details are yet to be worked out, and no formal plan has been put in writing. However, Martins said "we're well on our way toward presenting a formal agreement" Orange County officials can agree to. http://www.orlandosentinel.com/news/local/orange/orl-mv...l=orl-home-headlines Share this post Link to post Share on other sites
Marc Acres 3:16 418 Report post Posted February 15, 2007 That is good news. For the people that oppose a new facility I ask what sports franchise has offered so much to not only the facility they will be using but also contributing to other projects in the area (such as the 10 mill towards the new arts center)? Most franchises take the cities they are in for all they are worth and then ask for more. We have one that is willing to contribute to projects they have nothing to do with. Share this post Link to post Share on other sites
bhnole 153 Report post Posted February 15, 2007 If this does not get the county off their butts to finish the deal, then we know the big hotel guys are torpedoing things behind the scenes. Asking any private business to open their books is an insult. I have not seen anyone ask the hotels how much they are raking in everytime we step up and put another mammoth extension on the convention center. We don't ask the medical companies to do it when we throw huge incentives at them to build here. The only reason opponents are going after the team is because they are more visible. Share this post Link to post Share on other sites
Ned Ryerson 94 Report post Posted February 15, 2007 Who wants to join me to get this project stared ASAP!?! I figure we can head down to the planned site and just start wrecking down buildings. Afterall, I have this huge hammer sitting here and I need something to do with it. I'm sure nobody will mind! Share this post Link to post Share on other sites
Marc Acres 3:16 418 Report post Posted February 15, 2007 quote: Originally posted by WPMagic:Who wants to join me to get this project stared ASAP!?! I figure we can head down to the planned site and just start wrecking down buildings. Afterall, I have this huge hammer sitting here and I need something to do with it. I'm sure nobody will mind! I have a shovel and a 16 lb sledge, lets go! Share this post Link to post Share on other sites
bhnole 153 Report post Posted February 15, 2007 quote: Originally posted by Marc Acres 3:16: quote: Originally posted by WPMagic:Who wants to join me to get this project stared ASAP!?! I figure we can head down to the planned site and just start wrecking down buildings. Afterall, I have this huge hammer sitting here and I need something to do with it. I'm sure nobody will mind! I have a shovel and a 16 lb sledge, lets go! I just made a call to have a dozer blade mounted on the front of my SUV. See you there!! Share this post Link to post Share on other sites
Ned Ryerson 94 Report post Posted February 15, 2007 Very nice! I think I have a bunch of M-80's from last 4th of July around as well... who needs people who actually know what they're doing? Share this post Link to post Share on other sites
Marc Acres 3:16 418 Report post Posted February 15, 2007 quote: Originally posted by WPMagic:Very nice! I think I have a bunch of M-80's from last 4th of July around as well... who needs people who actually know what they're doing? Can we drink while we are blowing stuff up? It's the American way, celebrate the creation of your basketball facility by blowing up a small piece of it. Share this post Link to post Share on other sites
Ned Ryerson 94 Report post Posted February 15, 2007 quote: Can we drink while we are blowing stuff up? It's the American way, celebrate the creation of your basketball facility by blowing up a small piece of it. What kind of question is that? Why else did Ben Franklin and Abe Lincoln come over on the Nina, Pinta, and Santa Maria? Share this post Link to post Share on other sites
magicmikej 4 Report post Posted February 15, 2007 I would like to find out how much Harris Rosen is making off the convention center and the increased advertising budget. He is the most vocal opponent of the arena deal. Joe , why don't you find out this info.... Then again the Magic are every one's favorite whipping boy, after all the owner is very rich and the players are millionaires. Everyone knows rhar the majority of this money is coming from the tourist resort tax. State law dictates rhat this money can only go to tourist related activity or venues such as sports and performing arts centers. So why are the Magic an important asset to the community and deserving of this money? One of the biggest reasons is civic pride. We are a big league town with the Magic. Back in 1995 the whole town talked about the Magic. Why we even had goggles on Church Street that were seen by one and all on I-4. Lady liberty at Lake Ivanhoe had a Magic Jersey on. Souvenir shops sprung up all over the place. Why even in church prayers were uttered with Magic down to the Rockets. The whole town, not only sports fans were Magic fans. We were ONE in support of OUR TEAM! If this is not enough for all you naysayers out there, think about the kids. Sports is one of the driving forces to keep kids out of trouble and the Magic management has always striven to bring class individuals to this organization. Dwight Howard Grant Hill and all the rest of Magic Players visit schools, take part in promoting reading, and are great examples for our youth. We need the Magic and the Magic need us.All of us need to support Project Hometown NOW. Share this post Link to post Share on other sites
bhnole 153 Report post Posted February 15, 2007 Harris Rosen is an idiot, he thinks he owns the Convention Center and the tourist tax. He wants all of it spent on advertising to fill his hotel rooms. But no one ever asked to him to open his books before committing half the addtl. tourist tax to advertising. Share this post Link to post Share on other sites
Ned Ryerson 94 Report post Posted February 17, 2007 quote: Don't you just love the gall of local hotel magnate Harris Rosen? He's actually railing against a new arena for the Magic because, he says, it will generate as much as $30 million in new revenue, with nearly all of it going to the team. Rosen claims the deal amounts to "providing financial aid to a multibillionaire owner." Hmmm, has anyone ever asked Rosen how many countless millions he has made from the tourist-tax-funded Orange County Convention Center being built next to his two hotels? Isn't it hilarious when one filthy-rich businessman who is funded fully by the tourist tax lambastes another filthy-rich businessman who only wants to be funded partly by the tourist tax? ... http://www.orlandosentinel.com/sports/columnists/orl-bi...?coll=orl-sports-col Share this post Link to post Share on other sites
