From the Orlando Sentinel
Public money to build bridge for Universal guests
Orlando plans to spend $9 million in taxpayer money for improvements around Universal Orlando, half of it for a pedestrian bridge that will be used almost exclusively by the theme park's guests.
City leaders say the flyover bridge is needed to keep pedestrians safe. But critics are crying foul, labeling the bridge a giveaway to Universal.
"If it's going to serve Universal, let Universal pick up the tab," said Lou Treadway, a member of the watchdog group CountyWatch and a former Orange County commissioner. "It's not an appropriate use of tax dollars — it's as simple as that."
The plan also includes stormwater improvements, landscaping and signs. The elevated walkway would carry people from a new Universal hotel across a busy road to other property owned by Universal.
It's the path guests at Universal's Cabana Bay Beach Resort, which is under construction, would take to walk straight to the gate for Universal's Islands of Adventure.
The city would own the bridge, and it would sit in city right-of-way. But in all other respects, it seems to be part of the hotel. Universal representatives asked for it and developed the project budget, the bridge's design and finishes will even match those at theme park, and Universal — not the city — is building it. Orlando will reimburse Universal for the construction costs.
"This is an entity that contributes an awful lot to the city and the state in sales tax dollars," Orlando Economic Development Director Brooke Bonnett said. "It's money, we believe, well spent."
The funds will come from a special taxing district around Universal Orlando called a Community Redevelopment Area. It was formed in 1995 for the sole purpose of building an interchange at Interstate 4 and Universal Boulevard to serve Universal. It still exists because the bonds issued to pay for that work won't be paid off until 2025.
Here's how it works: As the value of Universal-owned property has increased since the taxing district was formed, additional city and county property taxes generated by the greater value were earmarked to pay for the interchange.
But Universal has grown substantially since the taxing district was created in 1995, so the CRA collects about $8.5 million a year in property taxes now. The annual debt payment for the I-4 interchange is about $3 million, so the money left over — currently about $5.5 million a year — is returned to the city and county to spend on general government services such as paving roads, fighting crime and putting out fires.
Last week, however, the City Council amended the CRA to add the $9 million in improvements for the theme park. That will increase the CRA's annual debt payment by about $1 million — money that could otherwise be spent on other city and county services.
Orlando is adding the extra debt even though City Hall must pull a projected $29.5 million from reserves to balance this year's budget.
Universal asked the city for help even as its own business is booming.
The resort's parent company, Comcast Corp., revealed Wednesday that Universal Parks & Resorts generated just less than $1 billion in operating cash flow in 2012, an increase of 9.9 percent from the year before. Universal Orlando is Comcast's largest and most profitable park.
The Orlando resort has been on a record run since 2010, when it opened the enormously popular Wizarding World of Harry Potter.
Even so, city officials say the improvements, including the $4.5 million pedestrian bridge, should go forward. Many I-4 commuters use the Universal exit as a shortcut to Turkey Lake Road and the Dr. Phillips area, Bonnett said, and the theme park's continued expansion creates a dangerous mix of automobiles and pedestrians.
"Will a majority of the pedestrians who are on the bridge be headed to Universal or a hotel? Absolutely," she said. "But what's important to remember is the benefit to the folks in the car who will no longer have to meander around those pedestrians."
Universal Orlando spokesman Tom Schroder agreed and pointed out that the company pumps a lot of tax money into local coffers.
The CRA "is designed to bring economic growth to our community, and our new hotel will bring exponential return on this investment in the form of additional taxes and overall economic contribution," he said.
State law allows cities and counties to create a CRA only to improve an area with "slum or blighted conditions." In the case of the Universal CRA, Orlando officials say the need for transportation improvements created the blight.
Last week, the Orlando Sentinel reported that Universal Orlando and its hotel partners have claimed more than $8.1 million in state tax credits since 2000 for creating jobs in an "urban high-crime area." A former lawmaker who helped develop the tax-credit program criticized Universal, saying it was meant to revive struggling neighborhoods, not a theme park bordering the affluent Dr. Phillips area.
As for the pedestrian bridge, Universal will construct it as it is building the 1,800-room Cabana Bay Beach Resort expected to open in 2014. The bridge and other improvements still need final approval from city and county commissioners, which is expected to come in March or April.
Staff writer Jason Garcia contributed to this report. mschlueb@tribune.com or 407-420-5417.
Copyright © 2013, Orlando Sentinel
Public money to build bridge for Universal guests
Orlando plans to spend $9 million in taxpayer money for improvements around Universal Orlando, half of it for a pedestrian bridge that will be used almost exclusively by the theme park's guests.
City leaders say the flyover bridge is needed to keep pedestrians safe. But critics are crying foul, labeling the bridge a giveaway to Universal.
"If it's going to serve Universal, let Universal pick up the tab," said Lou Treadway, a member of the watchdog group CountyWatch and a former Orange County commissioner. "It's not an appropriate use of tax dollars — it's as simple as that."
The plan also includes stormwater improvements, landscaping and signs. The elevated walkway would carry people from a new Universal hotel across a busy road to other property owned by Universal.
It's the path guests at Universal's Cabana Bay Beach Resort, which is under construction, would take to walk straight to the gate for Universal's Islands of Adventure.
The city would own the bridge, and it would sit in city right-of-way. But in all other respects, it seems to be part of the hotel. Universal representatives asked for it and developed the project budget, the bridge's design and finishes will even match those at theme park, and Universal — not the city — is building it. Orlando will reimburse Universal for the construction costs.
"This is an entity that contributes an awful lot to the city and the state in sales tax dollars," Orlando Economic Development Director Brooke Bonnett said. "It's money, we believe, well spent."
The funds will come from a special taxing district around Universal Orlando called a Community Redevelopment Area. It was formed in 1995 for the sole purpose of building an interchange at Interstate 4 and Universal Boulevard to serve Universal. It still exists because the bonds issued to pay for that work won't be paid off until 2025.
Here's how it works: As the value of Universal-owned property has increased since the taxing district was formed, additional city and county property taxes generated by the greater value were earmarked to pay for the interchange.
But Universal has grown substantially since the taxing district was created in 1995, so the CRA collects about $8.5 million a year in property taxes now. The annual debt payment for the I-4 interchange is about $3 million, so the money left over — currently about $5.5 million a year — is returned to the city and county to spend on general government services such as paving roads, fighting crime and putting out fires.
Last week, however, the City Council amended the CRA to add the $9 million in improvements for the theme park. That will increase the CRA's annual debt payment by about $1 million — money that could otherwise be spent on other city and county services.
Orlando is adding the extra debt even though City Hall must pull a projected $29.5 million from reserves to balance this year's budget.
Universal asked the city for help even as its own business is booming.
The resort's parent company, Comcast Corp., revealed Wednesday that Universal Parks & Resorts generated just less than $1 billion in operating cash flow in 2012, an increase of 9.9 percent from the year before. Universal Orlando is Comcast's largest and most profitable park.
The Orlando resort has been on a record run since 2010, when it opened the enormously popular Wizarding World of Harry Potter.
Even so, city officials say the improvements, including the $4.5 million pedestrian bridge, should go forward. Many I-4 commuters use the Universal exit as a shortcut to Turkey Lake Road and the Dr. Phillips area, Bonnett said, and the theme park's continued expansion creates a dangerous mix of automobiles and pedestrians.
"Will a majority of the pedestrians who are on the bridge be headed to Universal or a hotel? Absolutely," she said. "But what's important to remember is the benefit to the folks in the car who will no longer have to meander around those pedestrians."
Universal Orlando spokesman Tom Schroder agreed and pointed out that the company pumps a lot of tax money into local coffers.
The CRA "is designed to bring economic growth to our community, and our new hotel will bring exponential return on this investment in the form of additional taxes and overall economic contribution," he said.
State law allows cities and counties to create a CRA only to improve an area with "slum or blighted conditions." In the case of the Universal CRA, Orlando officials say the need for transportation improvements created the blight.
Last week, the Orlando Sentinel reported that Universal Orlando and its hotel partners have claimed more than $8.1 million in state tax credits since 2000 for creating jobs in an "urban high-crime area." A former lawmaker who helped develop the tax-credit program criticized Universal, saying it was meant to revive struggling neighborhoods, not a theme park bordering the affluent Dr. Phillips area.
As for the pedestrian bridge, Universal will construct it as it is building the 1,800-room Cabana Bay Beach Resort expected to open in 2014. The bridge and other improvements still need final approval from city and county commissioners, which is expected to come in March or April.
Staff writer Jason Garcia contributed to this report. mschlueb@tribune.com or 407-420-5417.
Copyright © 2013, Orlando Sentinel
