Universal Orlando Resort Expansion (Part 1)

[IAmFloridaBorn]

I have a feeling they have a longterm plan that includes two more dry parks (so four total). One will definitely get built, but one could just be a goal that they set for some year down the line. Whether they ever actually hit that goal would be another question entirely.

This. Especially w/ Sea World in Flux. The South tourist corridor will be the hot zone this next decade. Transit and devlopment. Will be interesting to see what happens. 2 parks has always been more realistic than 1 park. IMO.

 

[Legacy]

I'm just curious if Comcast will throw some change at the idea of a Sand Lake Express Rail that runs from IoA to the "Convention Center/I-Drive/CityWalk South." The *cough* altruistic nature of the endeavor could give some massive tax breaks from Orange county and it would be in Universal's best interest as a way to cut Disney's airport transportation off at the knees.

Disney didn't want to play ball with the idea of a rail going to I-Drive. They wanted it to only go to them. Universal positioning themselves the way they are could accomplish both with a single line.

 

[Ashhanbre]

Can't win them all I suppose

I liked it. If Universal didn't build something every time someone told them its too much like Disney, then nothing would ever get built.

 

[GAcoaster]

Just took a drive up Universal Blvd. and noticed there is now a Universal Security guard stationed on property. Right next to the apartments there's a dirt road and they have a guard in a gray Jeep with the Universal logo and "Security" lettering on it. Not sure if that's the entrance to the new parking lot (I'd guess it is) and I assume they got them a jeep so they can patrol the entire property over there on those dirt roads.

 

[JoeCamel]

Just took a drive up Universal Blvd. and noticed there is now a Universal Security guard stationed on property. Right next to the apartments there's a dirt road and they have a guard in a gray Jeep with the Universal logo and "Security" lettering on it. Not sure if that's the entrance to the new parking lot (I'd guess it is) and I assume they got them a jeep so they can patrol the entire property over there on those dirt roads.

Somebody has to guard the left over landscaping plants.......

 

[quinnmac000]

News report seem to suggest Comcast is spend hungry now as their political battles paid off....so maybe expect a fast track of land grabs and initial development of some properties.

 

[Bobharlem]

News report seem to suggest Comcast is spend hungry now as their political battles paid off....so maybe expect a fast track of land grabs and initial development of some properties.

Yeah, not sure if this extends to Universal team members or not (or at least full time) -- the memo DOES call out the theme parks toward the end though. There were also rumors of the starting rate going up to $15 off of this and the new tax plan though (but that may just be wishful thinking based off what the few banks have done)

But yeah. this is aligning well for the future expansion.

 

[Nick]

Yeah, not sure if this extends to Universal team members or not (or at least full time) -- the memo DOES call out the theme parks toward the end though. There were also rumors of the starting rate going up to $15 off of this and the new tax plan though (but that may just be wishful thinking based off what the few banks have done)

But yeah. this is aligning well for the future expansion.

Universal may well be on a path to $15, but it's likely a very incremental path, with a goal of reaching it by 2023 or something like that. That's what most major cities tht are going for $15 minimum wage are doing... slowly increasing it year over year.

 

[tidecat]

Yeah, not sure if this extends to Universal team members or not (or at least full time) -- the memo DOES call out the theme parks toward the end though. There were also rumors of the starting rate going up to $15 off of this and the new tax plan though (but that may just be wishful thinking based off what the few banks have done)

But yeah. this is aligning well for the future expansion.

The real question is how fast can the size of the workforce in the Orlando area grow to meet Universal’s needs? I’m sure some of that will come at the expense of current competitors, especially on the hotel side, but even adding 8,000 jobs in a metro area of 2.3 Million people is not insignificant.

 

[Frank Drackman]

I imagine there is some kind of tax advantage that Companies want to get in this tax year before the laws change as the place I work made a similar announcement.

I’ve just never known the place I work at to offer anything outside of a pay period, but a letter I got suggest we may get a special bonous next week.

Hey, I’ll take what I can get, but I can’t help but feel there is a taxable event behind a sudden payout like that.

 

[Mad Dog]

The real question is how fast can the size of the workforce in the Orlando area grow to meet Universal’s needs? I’m sure some of that will come at the expense of current competitors, especially on the hotel side, but even adding 8,000 jobs in a metro area of 2.3 Million people is not insignificant.

Projected huge increase of Puerto Rican workers joining family in the Orlando area should alleviate a lot of those labor force concerns. The Island economy is in tatters and Orlando is home to one of, if not the largest, Puerto Rican enclaves in the mainland.

 

[zg44]

Projected huge increase of Puerto Rican workers joining family in the Orlando area should alleviate a lot of those labor force concerns. The Island economy is in tatters and Orlando is home to one of, if not the largest, Puerto Rican enclaves in the mainland.

Yeah, Orlando alone is projected to gain somewhere around 200,000 Puerto Ricans displaced by Maria or more.

 

[GAcoaster]

The latest figure was 209,000 people have migrated to Orlando from Puerto Rico since Maria hit already.

 

[Frank Drackman]

I imagine there is some kind of tax advantage that Companies want to get in this tax year before the laws change as the place I work made a similar announcement.

I’ve just never known the place I work at to offer anything outside of a pay period, but a letter I got suggest we may get a special bonous next week.

Hey, I’ll take what I can get, but I can’t help but feel there is a taxable event behind a sudden payout like that.

Sorry to quote myself, but I should say that my thoughts on this board are mine and not that of my employer. I am not a finance guy and I do not like talking politics (unless I am trying to understand what someone is made of).

Anyway, from what I can gather, the whole idea is that Companies will spend more, invest more, in this country. I think something changes on how assets depreciate so that Companies might be incouraged to spend more now...which in theory could mean more jobs...so maybe all this means more money invested in the parks...no clue from me, i’m not sure how I feel about any of the changes...I tend to try and walk a middle/independent ground...I do think the new tax changes lean more to one side though...but I imagine something might trickle down.

 

[GoUCFKnights]

Sorry to quote myself, but I should say that my thoughts on this board are mine and not that of my employer. I am not a finance guy and I do not like talking politics (unless I am trying to understand what someone is made of).

Anyway, from what I can gather, the whole idea is that Companies will spend more, invest more, in this country. I think something changes on how assets depreciate so that Companies might be incouraged to spend more now...which in theory could mean more jobs...so maybe all this means more money invested in the parks...no clue from me, i’m not sure how I feel about any of the changes...I tend to try and walk a middle/independent ground...I do think the new tax changes lean more to one side though...but I imagine something might trickle down.

I am interested in this as well, from a non-political perspective. A lot of companies are in a rush to spend a ton of money right now, handing out bonuses, raises, etc... why exactly are they doing this? Other tax cuts didn't seem to have as large of a "trickle down" effect, especially so immediate like we're seeing now.

 

[tidecat]

It makes sense to “front load” these bonuses as the corporate tax rate is higher now (35%) than it will be in the future. It is the same thing as an individual moving a charitable contribution from 2018 to 2017 to take advantage of a larger tax deduction.

 

[Teebin]

So, with what has been said, there won’t be any bonuses coming in future years? This is a one and done?

 

[Mr. EPCOT]

So, with what has been said, there won’t be any bonuses coming in future years? This is a one and done?

I believe Universal Team Members got a similar bonus back in 2010 to celebrate the success of Hogsmeade, so you never know.

 

[RFRees]

So, with what has been said, there won’t be any bonuses coming in future years? This is a one and done?

Depends on how tight the labor market becomes. If unemployment stays low and quality workers are jumping to whoever pays more / offers better benefits, then companies will need to keep offering more bonuses and such.

But aside from that, the big reason they are doing this is for the PR. They want to be seen as doing 'right thing' in using this profit on their employees and investments. What is important is they make us believe they are spending their extra profits on 'the right thing' rather than sending the majority of the extra profit to shareholders, hence the press releases. (Business rule: what is true typically doesn't matter as much as what the population believes to be true.)

And these press releases hit three target areas:

Current and potential employees: They want to be seen as a good company to work for
Consumers: They want to be seen as a good company to buy from
Politicians: They want to make them (and voters) believe the tax cuts and deregulation "worked," to encourage them to keep these cuts/deregulations and potentially expand them further
​

But back on subject, that is a good to see press release and hopefully it means a lot of growth for UO and potentially Orlando as a whole.

 

[bob albert]

I expect bonuses likely to be a one time thing. The corporations are going to keep most of the tax break money. They always keep the money.