Amway Arena - Renovation Plans

Renovation Plans

Experts stated that the arena was outdated since the day its doors first opened. Although it was built to NBA specifications at the time, construction began right before mid level luxury seating and lower level club seating became the de facto standard (the arena lacks both of these features). The Orlando Magic's desire for a major renovation of the building dates all the way back to 1994 when it was only five years old, as the team was seeking to increase revenue by expanding the limited retail & concession space and luxury seating. In 1996, the team spent $100,000 to have Conventions Sports & Leisure of Minneapolis study and determine renovation ideas. Major renovation was beginning to seem unfeasible in 1997 when the task-force determined that the cost of implementing everything that the team wanted would reach up to $75 million. The revenues brought in by the changes likely would not be enough to cover mortgage payments on money that would have to be borrowed to pay for the renovation. Also, at the time, the city still owed $40 million on the original construction of the building.

Beginning around 2000, the Magic began to push the City of Orlando for a brand new arena, replacing the TD Waterhouse Centre. Since the city, as well as Orange County, were not keen on picking up the tab for a second facility in a little over a decade, the Magic stated they would contribute to the cost of building it. They did not, however, say how much. They also indicated they expected public dollars to be used, too. Discussions became contentious in 2001, as the team threatened to look elsewhere if Orlando would not build a new arena, or contribute a significant amount to a renovation. At the time, the team was losing $8 million annually. Magic President Bob Vander Weide stated, "If we can't break even in the long term and we can't stay competitive, maybe this isn't the best place for us." The Magic outlined where an arena should be built, the potential cost, what type of tax should pay for it and what could be done with the existing building once it was abandoned by the team. In a meeting with county and city officials, team owner DeVos said he was seeking $200 million in public money, including $121.5 million from the tourist tax collected by the county, $50 million from the city of Orlando and $28.5 million from the state. Officials were staunchly opposed. Any plans for renovation or replacement relied on tourist-tax revenue, and after the terrorist attacks of 9/11, the numbers of tourists in the area declined sharply. Then-Orlando Mayor Glenda Hood and Orange County Mayor Rich Crotty were close to a deal for a major renovation, but talks were broken off for several years due to the sagging tourist tax dollars. At the grand opening of the Amway Center on October 1, 2010, Crotty remarked "When I look around this building, I think to myself, 'Boy, am I glad that didn't work.' Sometimes good comes out of bad."