Orlando leaders on Monday unanimously supported incentives for a large development planned next to the Kia Center downtown, building apartments, a hotel, retail stores and business conferences on the site of the former city police headquarters. Decided to build a space.
The incentive agreement includes $2.5 million from the Regional Redevelopment Agency to fund the construction of meeting space that officials have long wanted to add to downtown facilities, and up to $40 million over about 10 years. This includes repaying property taxes.
The district, which has been under discussion for more than a decade, will include 200,000 square feet of office space, 125,000 square feet of retail, 16,000 square feet of meeting space, a 3,500-person live event venue, 1,100 It will include a parking lot that can accommodate cars. , 260 hotel rooms and 273 apartments.
Ten of these apartments are considered affordable or reserved for households making 80% or less of the area median income.
Orlando Mayor Buddy Dyer said, “Probably the biggest thing they're going to offer is certainly another hotel downtown, which we need, but the meeting space and the venues that are there that can be repurposed for meetings, definitely downtown. It's what's needed,” he said. He said.
The project is expected to include at least $500 million in private investment, according to the agenda.
The Sports and Entertainment District is primarily owned by Machete Group and JMA Ventures, with the DeVos family, which owns the Orlando Magic, holding a 20% stake as a minority partner.
JMA Ventures has built a similar 1 million square foot district in Sacramento, next to Golden 1 Center, where the NBA's Sacramento Kings play their home games.
Machete Group CEO David Carlock and Mr Dyer said rising capital costs were the main challenge and the development would not have been possible without public donations.
Opponents of the incentives say the city should set aside more affordable apartments in areas facing rising homelessness and severe shortages of affordable housing.
Eric Gray, who runs the Christian Service Center in Parramore, said the city's investment should be accompanied by a greater commitment to affordable housing.
“I think our Downtown Development Commission is doing a phenomenal job, but in an area that is facing perhaps the worst affordable housing crisis in the nation, I think it's important to have even partial funding from the city. Housing needs to more aggressively meet affordability needs,” he said.
Sebastian Castro, an Orlando resident who previously worked at the arena, questioned why the incentive was needed.
“We understand that public-private partnerships are essential to the growth of our cities, but we want well-funded private organizations whose employees are rock stars to build global partnerships to host conferences and conferences. “It seems unfair to be given $2.5 million in tax money for an event space,” he said.
Lawanna Goelzer, a candidate for the vacant City Council District 5 seat, called the deal “handouts to the 1 percent.”
“They already have their stage…it’s on the backs of the taxpayers,” she said.
City Commissioner Jim Gray, who has long criticized downtown services for being too focused on nightlife and too little other uses, said the project has an opportunity to revitalize the area.
“I think this project has the potential to be one of the most innovative projects we’ve seen downtown in a long time,” he said. “We understand that concern…We see this project as an investment, not just a relinquishment of tax revenue.”
rygillespie@orlandosentinel.com