Enhanced economic impact study from JLL indicates the Orlando Dreamers will generate approximately $26 million in additional TDT revenues for Orange County each year
The incremental annual TDT revenues will provide funding for more than 50% of the annual bond debt service for Orange County's portion of the MLB stadium financing
ORLANDO, FL / ACCESSWIRE / July 17, 2023 / The Orlando City Baseball Dreamers, LLC (Orlando Dreamers) today announced they have received back the conclusions from the additional economic impact study work they recently commissioned. The results from the additional review indicate that bringing Major League Baseball (MLB) to Orlando, playing in the planned domed stadium located on the 35.5 acre parcel adjacent to SeaWorld and the Orange County Convention Center, will provide approximately $26 million in incremental Tourist Development Tax (TDT) revenues to Orange County annually. The analysis, completed by JLL, supplements the previous detailed economic impact study the firm completed which demonstrated the Orlando Dreamers' MLB presence would result in excess of $40 billion in economic impact to Orange County over 30 years.
The Orlando Dreamers' stadium financing proposal involves a request for $975 million in TDT funds to be put towards construction of a planned domed stadium and its accompanying parking garages, estimated to cost $1.7 billion in total. Team ownership will be responsible for arranging the $700 million balance of the financing. The proposed arrangement would result in Orange County becoming the sole owner of the stadium and parking facilities, as well as retaining ownership of the site. This deal marks the largest private funding in MLB history for a publicly owned stadium.
According to Pat Williams, Co-Founder and President of the Orlando Dreamers, "The confirmation of the very significant incremental TDT revenues our MLB initiative will provide annually to Orange County is incredibly exciting news. In addition to the approximately $700 million the team will be responsible for providing towards stadium and parking garage construction costs, Orange County will receive a substantial subsidy back each year towards its portion of the stadium financing obligation." Williams anticipates Orange County will issue a 30-year bond as the structure for financing the county's $975 million portion.
Williams further noted that the incremental TDT revenues being generated by the Orlando Dreamers' operation would likely cover approximately half of the indicated bond's annual debt service requirement. "A 30-year AA rated municipal bond in the amount of $975 million issued in recent years would require payments of less than $50 million annually. Even at today's meaningfully higher interest rates, the projected annual debt service would only increase to about $55 million. We would anticipate rates to have modestly softened by the time Orange County would effectuate the bond offering," he indicated. "Further, the $26 million in incremental TDT annual revenues projected by the JLL analysis is based on 2023 dollars. We are confident that level will meaningfully increase as years pass due to inflation as nightly hotel room rates climb, while the annual bond debt service would remain fixed," Williams emphasized.
Williams again underscored the requirement that contingent funding approval for stadium construction be in place before Orlando would be awarded a franchise. "MLB unconditionally wants to see a public/private partnership in regard to stadium funding," continued Williams. "We believe the process to secure a team could move very quickly, so we have to be prepared to make our best case in the next few months. Just as when I was able to bring the Magic here many years back, the NBA would not consider granting the city a franchise without proof that there was public financing in place for an arena."
About Orlando City Baseball Dreamers, LLC
Orlando City Baseball Dreamers, LLC was established to bring Major League Baseball to Orlando and Central Florida. The organization is led by Pat Williams, Founder of the Orlando Magic, and updates can be found at www.orlandodreamers.com. Orlando is the largest media market in the United States without a Major League Baseball team, recently surpassing Miami in terms of media market size. Orlando is also the most visited destination in the world.
SOURCE: Orlando City Baseball Dreamers, LLC