Universal Orlando Resort Expansion (Part 1)

[quinnmac000]

It's because there's all sorts of bonus tax implications to getting property improvements activated as quickly as possible before tax law phaseouts begin in 2023.

I'm not a tax lawyer, so I can't talk specifically about Comcast, but basically the expensing depreciation bonuses will begin to phase out after 2023. So if Universal wants to take advantage of those, they need as much built as possible by December 31, 2023. They'll still get bonuses in 2024-2027 for improvements, but each year they lose an additional 20% of the bonus I think.

If thats the case, wouldn't it more likely to build the two parks and the water park by that date to save the most money? While it makes sense to wait to open and phase, if the main reason it got fast tracked was due to the bill and is set to expire then, I would expect them to at least cover two parks (dry and wet and most of the other park by then as well as continually update USF and IOA at the same time).

 

[Magic-Man]

What would happen if the dry park and the water park were connected somehow? Would Universal even think about that?

 

[Ridgepole]

What would happen if the dry park and the water park were connected somehow? Would Universal even think about that?

Sogwarts express? Probably not.

 

[Scott W.]

You don't count IOA as a new theme park?

I count it as a new park and along with CityWalk and the 3 original hotels, it was a huge project but it was getting built next to USF. This project adds all the infrastructure on top of it plus the scale is so much larger. This park when it opens, could be doing double what IOA did in its opening year with how busy Orlando is projected to be plus the attention that some of the IPs will bring.

Sogwarts express? Probably not.

A drop slide out the park into the water park would be bad ass though.

 

[zg44]

If thats the case wouldn't the be more likely to build the two parks and the water park by that date to save the most money? While it makes sense to wait to open and phase, if the main reason it got fast tracked was due to that is set to expire then, I would expect them to at least cover two parks (dry and wet and most of the other park by then as well as continually update USF and IOA at the same time)

Well, it really depends on how much they view as realistic in terms of making sure everything is profitable as they expand.

As far as overall tax benefits go, it should be in the several hundred million range ($500-700 million range) as long as they have most of a theoretical $3-4 billion buildout completed by Dec. 31 2023.

As far as specific parts of the package goes, shifting the water park from 2023 to 2024 probably results in a reduction in tax benefits in a 20% loss of the tax benefits that would accrue and is probably a reduction of $15-25 million in tax benefits as an example.

Tax benefits are definitely a factor but Universal would probably be willing to lose a slight benefit (going from 100% to 80%) if there are delays.

It does support @Disneyhead's contention though that things are on an accelerated timeline.

I'd imagine that Universal wants the maximum tax benefits for CityWalk 2.0, dry park, water park, and 5 hotels if possible. That requires them to aim for 2023 or earlier on most of it.

 

[Galaxy Defender]

What would happen if the dry park and the water park were connected somehow? Would Universal even think about that?

Would we then have two damp parks?

 

[Magic-Man]

If that new water park even measures up to this one, I'd be happy.

I wonder what they are going to do differently this time around. Maybe not make it as crowded and small (given, they didn't have a choice the first time). Maybe a more family-friendly park? What about the theme?

God, these next few years are going to suck, aren't they? Wake me up when it's 2023 :yawn:

 

[quinnmac000]

If that new water park even measures up to this one, I'd be happy.

I wonder what they are going to do differently this time around. Maybe not make it as crowded and small (given, they didn't have a choice the first time). Maybe a more family-friendly park? What about the theme?

God, these next few years are going to suck, aren't they? Wake me up when it's 2023 :yawn:

maybe they will finally do the self augmenting waterslide and the glowing sands patent that we thought Volcano bay would have back when it was Wondersea Island.

 

[Magic-Man]

maybe they will finally do the self augmenting waterslide and the glowing sands patent that we thought Volcano bay would have back when it was Wondersea Island.

Wait, self-augmenting waterslide? Explain?

 

[quinnmac000]

Wait, self-augmenting waterslide? Explain?

My bad...I meant articulated waterslide...Universal put out a patent for a concept for a waterslide the user could control and change to fit their thrill levels etc.

US20120258812A1 - Articulated waterslide - Google Patents

 

[Magic-Man]

My bad...I meant articulated waterslide...Universal put out a patent for a concept for a waterslide the user could control and change to fit their thrill levels etc.

US20120258812A1 - Articulated waterslide - Google Patents

That might not have been developed for Volcano Bay. Maybe somewhere else................

Are we absolutely sure that everything won't open at the same time?

 

[Disneyhead]

Oct. 1st 2022.

 

[Magic-Man]

Oct. 1st 2022.

Huh? What? WHAT?

 

[Mike S]

Oct. 1st 2022.

No way.

 

[Mad Dog]

Oct. 1st 2022.

My guess too....It's the race against the mouse, and Universal just purchased a Cheetah. We're taking bets. My bookie will be online soon. :thumbsup:

 

[Scott W.]

I'm really hoping they bring back the huge sand timer and have a good model. Is the building next to Mummy still free?



Maybe the reason we haven't had a Nintendo announcement is because they're waiting until they announce the new park? :shrug:

 

[Magic-Man]

Would they really open up a new theme park (and citiwalk. And resort. And possibly a water park) in October? Is that a smart move?

 

[captainmoch]

Time to start camping out to be the first one inside the park! It's legal to camp out in a construction site, right?

 

[Teebin]

Mark Woodbury better get his azz down there with a shovel right now!

 

[Magic-Man]

I'm really hoping they bring back the huge sand timer and have a good model. Is the building next to Mummy still free?



Maybe the reason we haven't had a Nintendo announcement is because they're waiting until they announce the new park? :shrug:

*starts refreshing Universal Orlando's blog every five minutes*