What Will Magic Be Willing To Pay?

<div class="quote_poster">Quote:</div><div class="quote_post">When county commissioners hear the Orlando Magic's pitch for a new arena Tuesday, there will be one question on everyone's mind: How much will the team pony up?

Magic officials will say only that their contribution to the $385 million project will be "significant" and that they will pay more than other NBA teams in comparable markets in recent years.

But that isn't saying much. The Memphis Grizzlies paid nothing toward the 2-year-old, $250 million FedEx Forum, which Magic officials have pointed to as a model arena. The Charlotte Bobcats paid $23.2 million of the $265 million cost of the new Charlotte Arena. For the $190 million AT&T Center, the San Antonio Spurs paid about $45 million.

The Magic aren't comparing themselves to teams paying a bigger portion, such as the Dallas Mavericks, which gave $295 million toward the $420 million American Airlines Center, or the Miami Heat, which received land and an $8.5 million-a-year operating subsidy but paid all $185 million in construction costs.

In Orlando, leaders are poised to use tax for whatever the Magic don't contribute -- a prospect critics have long derided as corporate welfare for millionaire athletes.

"The question is, who's getting their wallet out?" newly elected Orange County Commissioner Fred Brummer asked.

Competing interests

The Magic are competing for a pool of money also expected to fund a new performing-arts center and Florida Citrus Bowl upgrades. Most will come from the tourist tax on hotel beds, but property taxes, a downtown taxing district and state money also are in the mix.

All three projects are estimated at $1.1 billion, and county leaders will make final funding decisions in coming months.

Magic officials maintain they will contribute what's fair, given that the new arena also will host other events, such as concerts, that bolster the local economy and enhance the region's entertainment options.

"It's the community's arena," Magic spokesman Joel Glass said. "We use the community's arena only a portion of the time."

There is little doubt county and city leaders will open their wallets as widely as possible rather than risk losing the Magic to another city. But the amount set aside for an arena -- potentially the costliest of the three projects -- could prove pivotal in deciding whether all three projects get built or whether they are scaled back.

One idea to save money is gaining steam: moving the arena -- now dubbed an "events center" -- out of downtown to 40 acres adjacent to the Orange County Convention Center.

Universal City Property Management President Marc Watson said the center could be surrounded by restaurants and shopping. The private development would pay a special tax assessment to help fund the events center's construction and operation, similar to plans for the arts center.

"That could free up a lot of money," Orange County Mayor Rich Crotty said.

Opening wallets

An early architect of the three-venue effort, former Orlando Mayor Bill Frederick, months ago pegged the Magic's possible contribution in the $100 million range.

That's a far cry from the last time the Magic -- an organization that says it loses money each year but is valued at $247 million, according to Forbes magazine -- sought a new arena in 2001. Team owner Rich DeVos offered $10.5 million for a $250 million facility. Public opinion quickly turned against the plan, and the Magic shifted focus to a $75 million renovation.

That was shelved after the Sept. 11 attacks pinched tourist-tax revenues.

This time around, it's unclear whether the Magic would offer mostly cash or whether they plan to pass some of the cost to fans by adding ticket surcharges. Or, as negotiations with the city continue, the Magic could request a larger share of concession, naming rights or parking revenues that mostly go to city taxpayers now.</div>

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