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Universal Orlando Claims Millions in Tax Breaks

bobwadd

Premium Member
Feb 20, 2010
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You never know
From the Orlando Sentinel

Universal Orlando claims millions in tax breaks via program meant to help struggling neighborhoods

February 2, 2013|By Jason Garcia, Orlando Sentinel


For Universal Orlando, the opening of the Wizarding World of Harry Potter in the summer of 2010 was like winning the lottery.

In the first year alone, attendance jumped 20 percent to 11.2 million people. Sales soared 40 percent to more than $1 billion. Profit leapt sixfold to $150 million. And, for the resort's top executives, pay more than doubled, with nearly $6 million in bonuses awarded to five people. But Harry Potter helped win something else for Universal, too: a multimillion-dollar tax break for creating jobs in an “urban high-crime area.”

Records obtained by the Orlando Sentinel show that Universal has claimed more than $2.3 million worth of state tax credits since mid-2010 based on jobs it added to accommodate the millions of travelers flocking to Wizarding World.

Universal has been able to get the credits by tapping a 16-year-old state-incentive program designed to encourage businesses to expand in or move into crime-plagued communities across Florida.

The program offers as much as $1,500 in tax credits for every full-time job a business creates in a zone identified as an urban high-crime area. Universal, which borders Orlando's affluent Dr. Phillips neighborhood, has received credits for 1,561 jobs since August 2010, including cooks, security guards and boat drivers, among many others.

It is not Universal's first time dipping into this particular incentive pool. Records show the theme-park resort claimed more than $3.8 million in high-crime-area tax credits back in 2000-01 after the 1999 opening of its second theme park, Universal's Islands of Adventure.

What's more, a joint venture among Universal, Loews Hotels & Resorts and the Seminole Tribe of Florida, which operates three luxury hotels at Universal Orlando, has received an additional $2 million in tax credits — all issued from 2000 to 2002, shortly after the three hotels opened.

According to data from the Florida Department of Economic Opportunity, Universal and its hotel affiliate have together claimed 37 percent of all the tax-credit money awarded to date statewide through the high-crime-area program.

A former state lawmaker who helped establish the program accused Universal of exploiting an initiative supposed to help revive struggling neighborhoods.

"That's an abuse of what we intended," said former state Sen. James Hargrett, a Democrat who represented a Tampa-area district from 1992-2000. "It may be legal, but it isn't in the spirit of what we passed or the intent. It's not right."

Universal would not discuss its use of the program, beyond issuing a prepared statement.

"We are thrilled to have created more than 1,500 jobs within our community over the past couple years," Universal said through a spokesman. "These jobs cover a wide range of professional and hourly positions and are an important part of the overall economic contribution our growth has brought to this community. As with any company, incentives are an important motivating factor as we plan future growth and investment for Universal across the globe."

Universal would not say whether it intends to pursue more of the tax credits in the future. The resort is in the midst of building a second Harry Potter land, a major Transformers-themed thrill ride and a fourth hotel — all of which will require it to add more jobs
 
It's definitely not good that Universal is getting the money, but it's poor legislation by the state. How do you not foresee big players like this cashing in? Poor Florida tax payers.
 
If the State wanted the program limited to small scale businesses then they should have written the law accordingly. If they disliked it the first times it happened, they should have amended the legislation.
 
It's definitely not good that Universal is getting the money, but it's poor legislation by the state. How do you not foresee big players like this cashing in? Poor Florida tax payers.

They're not 'getting' money, they just pay less in taxes. And completely agreed that the legislation was poorly written if it did not set limits to these tax brakes.
 
While the park fan in me loves what Universal is doing with the expansion and my business side has no issue at all with claiming the tax break (it doesn't break the plane into unethical conduct), the other side of me knows that the jobs the expansions have and will create are low income jobs that will further stress the local economies more than they add to them. It is the reason so many people working in and around Disney live in the old motels along 192 (the school buses stop at a lot of them, I even know people who have or currently live in one), and why I laugh every time I hear or read something out of RCID about their "housing plan." Universal, Disney, and SeaWorld (along with the rest of the travel industry in town, but they are the largest fish in the pond) need to get together and help the counties and cities come up with a solid, workable housing solution for the ballooning low income workforce they create and employ.

I don't fault Universal at all for taking the credit, and the fact is that it is just a drop in the bucket when it comes to overall revenue. The amount of this tax break won't make or break the city, county, or state budgets. If the politicos don't like it, they can change the law, but they won't, and we all know why.
 
The government put forward this program and Universal claimed the tax credit.
I seem to remember a while back Disney got a sewage treatment plant over the City of Orlando by the fact they are a city.
They did not put a size limit on the companies claiming this credit
The lawmakers want to be able to claim "They are making jobs"
 
It's frustrating to hear that executives received nearly 6 million in bonuses when the front line employees who guests see everyday aren't seeing much benefits from Universal's success. I would love to see Universal help lower their turnover rate and see their employees more than just disposable. I guess this happens in all large companies though.
 
While the park fan in me loves what Universal is doing with the expansion and my business side has no issue at all with claiming the tax break (it doesn't break the plane into unethical conduct), the other side of me knows that the jobs the expansions have and will create are low income jobs that will further stress the local economies more than they add to them. It is the reason so many people working in and around Disney live in the old motels along 192 (the school buses stop at a lot of them, I even know people who have or currently live in one), and why I laugh every time I hear or read something out of RCID about their "housing plan." Universal, Disney, and SeaWorld (along with the rest of the travel industry in town, but they are the largest fish in the pond) need to get together and help the counties and cities come up with a solid, workable housing solution for the ballooning low income workforce they create and employ.

I don't fault Universal at all for taking the credit, and the fact is that it is just a drop in the bucket when it comes to overall revenue. The amount of this tax break won't make or break the city, county, or state budgets. If the politicos don't like it, they can change the law, but they won't, and we all know why.

Agreed 100%

It's frustrating to hear that executives received nearly 6 million in bonuses when the front line employees who guests see everyday aren't seeing much benefits from Universal's success. I would love to see Universal help lower their turnover rate and see their employees more than just disposable. I guess this happens in all large companies though.

While indirectly related to the tax breaks (since paying less taxes means more net income for the company), the bonuses to the big wigs also bother me quite a bit, because I'm sure they make plenty of money already. See, some large companies also have profit sharing programs, where at the end of a fiscal period, they give bonuses to all the employees (or those qualifying after having been at the company for a certain amount of time). This would be a much better option... IMO.
 
What kind of tax is the article referring too? Supposedly Disney pays no property taxes - except for sales and corporate taxes of course. I would imagine that even with the tax break, Universal manages to pay a bit more than Disney.
 
I've always agreed that a living wage should be paid by all large corporations such as Disney , Universal etc.. Small businesses not necessarily, since it would probably stunt their ability to exist or grow.....Concerning the tax breaks; Most areas in the country use tax breaks of some sort to attract and keep businesses. Without Universal, Disney and the rest of the tourist oriented companies, Orlando would probably still be a very small town/city with little development. So I would think the Orlando area needs to keep the tourist industry healthy and happy. As long as the tax breaks are legal, it would behoove a company not to use them.
 
It's frustrating to hear that executives received nearly 6 million in bonuses when the front line employees who guests see everyday aren't seeing much benefits from Universal's success. I would love to see Universal help lower their turnover rate and see their employees more than just disposable. I guess this happens in all large companies though.

While the front line might not be getting much benefits, there's definitely a ton of people aside from the execs receiving benefits from the success.
 
Umm...Dr Phillips is considered a high crime rate area?! :stunned: Really?!!?!

They are some nice houses and neighborhoods down Sand Lake, color me shocked.
 
Umm...Dr Phillips is considered a high crime rate area?! :stunned: Really?!!?!

They are some nice houses and neighborhoods down Sand Lake, color me shocked.
I would guess that it is based on ZIP codes as that is how a lot of that type of data is organized.
 
Umm...Dr Phillips is considered a high crime rate area?! :stunned: Really?!!?!

They are some nice houses and neighborhoods down Sand Lake, color me shocked.

While Universal borders Dr. Phillips, it is not actually in Dr. Phillips, and that's the key thing. Go back along Vineland and look at the housing back there, plus the nice looking but crime-ridden MetroWest area. Universal is located in that area, since Turkey Lake is basically the border of Dr. Phillips.
 
The tax break is only for full-time employees. If an employee is FT, than atleast they're getting benefits with that, and wages within Universal went up across the board. I'm okay with companies claiming tax incentives like this if the money is going backin the company, and it seems the money won't be wasted under Comcast Uni.
 
I abundantly agree with this. Just because you're a Jesus theme park doesn't mean you're not still a THEME PARK. Pay your share like the rest of us.

I don't see how they duck taxes just by letting some people in for free one day a year :shrug: and by some that's less than 1000 I believe. That's like the "eyesore on I-4" that's been under construction for 13 years now. People want to complain about Universal getting tax breaks but the mega pastors get whatever they want? ...to borrow a quote from JungleSkip.."lol..whut"? :lol:
 
Back in 2003 - 2004 UOR tried to get a tax break as a nature park, an environmental haven. It didn't work. Corps have a right to try anything they can. They probably got the idea from AK... although I am not sure if they get a tax break for this... there is a case to be made that they should! And it is a weird reason that I believe so.
 
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