The details of the agreement were finalized on December 22, 2006. In the agreement, the City of Orlando will take ownership of the new arena, while the Magic will control the planning and construction of the facility so long as contracting procedures are done in the same public manner as governments advertise contracts. In addition, the City will be paid a part of naming rights and corporate suite sales, a share estimated to be worth $1.75 million the first year of the arena's opening. The Magic will receive all proceeds from ticket sales for Magic games, while the City will receive all proceeds from ticket sales to all other events.[8] The Orlando Magic will contribute at least $50 million in cash up-front, pick up any cost overruns, and pay rent of $1 million per year for 30 years. The City of Orlando will pay for the land and infrastructure. The remaining money will come from bonds which will be paid off by part of the Orange County, Florida, Tourist Development Tax, collected as a surcharge on hotel stays, which was raised to 6% in 2006. The Magic will guarantee $100 million of these bonds.
The Orlando City Council approved several operating agreements connected with the arena plans on May 22, 2007.[9] The City Council approved the plan officially, 6-1, on July 23.[10] The Venue plan received final approval by the Orange County Board of County Commissioners, 5-2, in late evening of July 26 after a long day of public hearings.[11] Amendments were made by the County Commission which were approved on August 6 by the City Council, 6-1, sealing the deal once and for all. On December 1, 2007, the City and the Magic came to an agreement on nearly $8.5 million in compensation to three owners of the land where the arena is planned to be built. An eminent domain hearing confirmed the agreement and finalized the sale.[12]
