http://www.sacbee.com/351/story/39444.html
Ailene Voisin: Orlando has the arena know-how
By Ailene Voisin - Bee Columnist
Last Updated 1:25 am PDT Saturday, October 14, 2006
The NBA's list of arena-challenged cities is on the cusp of losing one of its own: the Orlando Magic. Contrary to years of speculation, with the moving vans allegedly having mapped out routes to Kansas City, St. Louis, Anaheim, etc., the one-time expansion franchise is neither disappearing nor preparing to fulfill another city's wildest fantasy.
Grant Hill. Dwight Howard. Our old friend Hedo Turkoglu.
Barring a last-second collision over, say, naming rights, central Florida's NBA stars will continue to share the neighborhood with Mickey, Minnie and the gang, though in more spacious, luxurious digs.
So who does that leave on the endangered list? Seattle and Portland have lease issues. Sacramento and Milwaukee, whose outdated facilities were built in 1988, have arena issues. New Jersey's Nets -- their facility the oldest of the non-renovated bunch -- continue to gaze longingly toward Brooklyn.
But the Magic is creeping its way off the charts. Distinguishing itself from the league's other trouble spots, Orlando's team and city/county officials are close to finalizing a uniquely structured $380 million, public/private agreement to fund a state-of-the-art downtown sports arena. The undertaking -- with a total cost projected at $1 billion -- also includes construction of a performing arts center, the refurbishing of the Citrus Bowl and infrastructure repairs, all of which are being presented as critical elements of an ongoing redevelopment project.
No, this one is theirs, their very own private/public fantasy, with Magic officials opting for a less-income, less-overhead approach.
"Everyone is always so focused on how the most recent (arena) deals have been done that they think it's the only model," said Alex Martins, the Magic's chief operating officer. "We determined that we had to look at something different, so we developed a model that we think works for us."
Indeed, primary differences between the Orlando proposal and many recent financing agreements for new arenas include the following:
• The city -- not the team -- operates a facility that will be located on acreage purchased by the city for $100 million (including infrastructure).
• Parking is a non-issue because the plan utilizes existing spaces located within a few blocks of the arena site.
• An existing tourism tax on hotel rooms and rental cars has been increased. Once the construction costs have been paid off, the taxes go toward the $100 million loan that Magic owner Rich DeVos co-signed for the city. DeVos also provides $50 million up front, with another $50 million for operational costs to be paid during the life of the 25-year agreement.
• The final agreement is to be submitted to the seven-member city and county commissions for approval. No public vote is necessary -- a sharp and critical contrast to the situation in Sacramento. And while some opposition is anticipated, those close to the Orlando situation believe the organization and the city/county have the votes to pass.
"The opposition in 2001 was much stronger, and at that time, our (owner) contribution wasn't nearly as substantial," Martins said. "As an organization, we learned from our mistakes. We learned from the way we handled it."
Hmmmm. Anyone around Sac paying attention? Joe and Gavin Maloof? City and county officials?
One certainly hopes so. These arena deals -- particularly in small markets -- require innovation, imagination and, oftentimes, wishful, on-a-star, outside-the-circle thinking. And they universally demand that negotiating parties remain poised, professional and conversant, particularly during the delicate and contentious periods.
Magic officials speak to this from experience. They can lecture about poisonous dynamics, cartoonish behavior, protracted discussions, nasty breakups. During previous attempts to reach an accord, most recently as 2001, former RDV Sports executive John Weisbrod helped swing public opinion against the club with his aggressive tactics and harsh outbursts. His poor personnel moves and the team's repeated failings further crippled hopes for a quick arena resolution, prompting DeVos to fire the longtime hockey official and lure Martins back as a spokesperson/liaison.
The owner's directive was simple: Repair the damage, and alter the club's image. And Martins, who originally joined the Magic in its second year (1990) as a publicist, returned 18 months ago and immediately embarked on a one-man crusade. He meets religiously with city and county officials. He schmoozes sponsors. He chats with fans, soliciting their opinions, acknowledging their gripes, vowing to make changes. He favors the handshake to the hammer. And in that sense alone, he is the antithesis of Kings president John Thomas, who puts the squeeze play on whenever possible and wherever he works.
"(The Magic) was born here," Martins said. "We grew up during our teenage years, and like all teens, we made mistakes. But we've done a good job of re-engaging the community and repairing our relationships with area businesses. We have just gone about things very differently this time."
About the writer: Reach Ailene Voisin at (916) 321-1208 or avoisin@ sacbee.com.
Ailene Voisin: Orlando has the arena know-how
By Ailene Voisin - Bee Columnist
Last Updated 1:25 am PDT Saturday, October 14, 2006
The NBA's list of arena-challenged cities is on the cusp of losing one of its own: the Orlando Magic. Contrary to years of speculation, with the moving vans allegedly having mapped out routes to Kansas City, St. Louis, Anaheim, etc., the one-time expansion franchise is neither disappearing nor preparing to fulfill another city's wildest fantasy.
Grant Hill. Dwight Howard. Our old friend Hedo Turkoglu.
Barring a last-second collision over, say, naming rights, central Florida's NBA stars will continue to share the neighborhood with Mickey, Minnie and the gang, though in more spacious, luxurious digs.
So who does that leave on the endangered list? Seattle and Portland have lease issues. Sacramento and Milwaukee, whose outdated facilities were built in 1988, have arena issues. New Jersey's Nets -- their facility the oldest of the non-renovated bunch -- continue to gaze longingly toward Brooklyn.
But the Magic is creeping its way off the charts. Distinguishing itself from the league's other trouble spots, Orlando's team and city/county officials are close to finalizing a uniquely structured $380 million, public/private agreement to fund a state-of-the-art downtown sports arena. The undertaking -- with a total cost projected at $1 billion -- also includes construction of a performing arts center, the refurbishing of the Citrus Bowl and infrastructure repairs, all of which are being presented as critical elements of an ongoing redevelopment project.
No, this one is theirs, their very own private/public fantasy, with Magic officials opting for a less-income, less-overhead approach.
"Everyone is always so focused on how the most recent (arena) deals have been done that they think it's the only model," said Alex Martins, the Magic's chief operating officer. "We determined that we had to look at something different, so we developed a model that we think works for us."
Indeed, primary differences between the Orlando proposal and many recent financing agreements for new arenas include the following:
• The city -- not the team -- operates a facility that will be located on acreage purchased by the city for $100 million (including infrastructure).
• Parking is a non-issue because the plan utilizes existing spaces located within a few blocks of the arena site.
• An existing tourism tax on hotel rooms and rental cars has been increased. Once the construction costs have been paid off, the taxes go toward the $100 million loan that Magic owner Rich DeVos co-signed for the city. DeVos also provides $50 million up front, with another $50 million for operational costs to be paid during the life of the 25-year agreement.
• The final agreement is to be submitted to the seven-member city and county commissions for approval. No public vote is necessary -- a sharp and critical contrast to the situation in Sacramento. And while some opposition is anticipated, those close to the Orlando situation believe the organization and the city/county have the votes to pass.
"The opposition in 2001 was much stronger, and at that time, our (owner) contribution wasn't nearly as substantial," Martins said. "As an organization, we learned from our mistakes. We learned from the way we handled it."
Hmmmm. Anyone around Sac paying attention? Joe and Gavin Maloof? City and county officials?
One certainly hopes so. These arena deals -- particularly in small markets -- require innovation, imagination and, oftentimes, wishful, on-a-star, outside-the-circle thinking. And they universally demand that negotiating parties remain poised, professional and conversant, particularly during the delicate and contentious periods.
Magic officials speak to this from experience. They can lecture about poisonous dynamics, cartoonish behavior, protracted discussions, nasty breakups. During previous attempts to reach an accord, most recently as 2001, former RDV Sports executive John Weisbrod helped swing public opinion against the club with his aggressive tactics and harsh outbursts. His poor personnel moves and the team's repeated failings further crippled hopes for a quick arena resolution, prompting DeVos to fire the longtime hockey official and lure Martins back as a spokesperson/liaison.
The owner's directive was simple: Repair the damage, and alter the club's image. And Martins, who originally joined the Magic in its second year (1990) as a publicist, returned 18 months ago and immediately embarked on a one-man crusade. He meets religiously with city and county officials. He schmoozes sponsors. He chats with fans, soliciting their opinions, acknowledging their gripes, vowing to make changes. He favors the handshake to the hammer. And in that sense alone, he is the antithesis of Kings president John Thomas, who puts the squeeze play on whenever possible and wherever he works.
"(The Magic) was born here," Martins said. "We grew up during our teenage years, and like all teens, we made mistakes. But we've done a good job of re-engaging the community and repairing our relationships with area businesses. We have just gone about things very differently this time."
About the writer: Reach Ailene Voisin at (916) 321-1208 or avoisin@ sacbee.com.
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