Magic's long-planned $500 million entertainment complex next to Kia Center could get a boost from City Hall next week.
City officials are proposing $2.5 million to build meeting and event space at the venue, as well as up to $40 million in property tax rebates for the project over about 10 years. are doing.
The proposed sports and entertainment district would cover more than eight acres between Huey Avenue and Division Street and would include office space, including the headquarters of a professional basketball franchise, as well as retail, hotels and conferences. It is expected that space and apartments will be included.
Community Redevelopment Agency Executive Director David Barilla said construction is expected to begin next year and be completed in 2027, and the incentive package is critical to moving the development forward.
“Projects are more difficult to finance and build,” Barilla said. “We couldn’t imagine it being possible without it.”
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The City Council is scheduled to vote on the incentive agreement and new development agreement on Monday.
But the deal, first reported by the Orlando Business Journal, drew criticism from state Rep. Anna Eskamani, an Orlando Democrat, who tweeted: ”
She said in an interview that if the Magic has received tax breaks for years, taxpayers should reap longer-term benefits, such as making the homes in the plan more affordable. insisted.
“We need to better serve our communities… There should be more affordable housing,” she said. “If this benefit continues for years to come, where are the long-term benefits for the people of Orlando?”
Magic, which is owned by the DeVos family, has had its eye on developing the land next to the public Kia Center for more than a decade.
The current proposal calls for 273 apartment units in the first phase of construction, 10 of which would be “attainable,” or below 80% of the area median income, or for a family of four in Orange County. It is considered suitable for families earning less than $77,200.
Barilla said the city could work with Magic to include more units in future planning stages of construction of the complex.
According to the agreement, the property tax incentives will begin in the first year the development receives a certificate of occupancy and will reimburse SED Development Co. $40 million, or $35 million if no office space is built. It continues until the end. The city expects annual taxes to start at $4 million.
It began when Magic's sister company, SED Development, purchased the Orlando police headquarters and parking garage on Huey Avenue for $12.7 million.
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Over time, the NBA franchise's vision for the entertainment complex changed, settling on a plan to build 300,000 square feet of office space, approximately 30,000 square feet of retail space, 261 hotel rooms and 273 apartments.
There will also be a public parking lot that can accommodate 1,100 cars. Barilla said the city will have free use of the event space up to 10 times a year, and the commercial space will be set aside for use by Parramore-based businesses.
One of the most popular elements for the city is the addition of 65,000 square feet of convention space, which can host meetings for about 1,000 people in the downtown area, he said. He said venues like this, which are standard in cities across the country, are missing in downtown Orlando.
“We want to make sure that downtown Orlando can maintain its momentum and create a great central city,” Barilla said.
rygillespie@orlandosentinel.com