Orlando backs incentive for entertainment district next to Kia Center

Orlando leaders Monday unanimously backed an incentive package for a massive development planned to rise next to the Kia Center downtown, bringing apartments, hotel, retail and space for business meetings on land of the former city police headquarters.

The incentive deal includes $2.5 million from the Community Redevelopment Agency to fund the construction of meeting space – which officials have longed to add to its downtown offerings for years – as well as repaying up to $40 million in property taxes over about a decade.

The district, discussed for more than a decade, is expected to include 200,000 square feet of office, 125,000 square feet of retail, 16,000 square feet of meeting space, a live event venue able to seat 3,500 people, a 1,100-space parking garage, a 260-room hotel and 273 apartments.

Of those apartments, 10 are considered attainable or set aside for families who make 80% or less of the Area Median Income.

“It’s pretty exciting to get this mixed-use development going,” Orlando Mayor Buddy Dyer said ahead of the vote. “The district will activate the site of the OPD headquarters 24 hours per day.”

The venture is expected to include at least $500 million in private investment, according to the agenda item.

The Sports and Entertainment District is primarily owned by The Machete Group and JMA Ventures, with the DeVos family, who own the Magic, as minority partners, holding a 20% stake.

JMA Ventures built a similar one million square foot district in Sacramento next to the Golden 1 Center, where the NBA’s Sacramento Kings play home games.

David Corlock, the CEO of The Machete Group, said the development would not have happened without a public contribution, blaming the rise in capital costs as a chief challenge.

Opponents of the incentives have argued the city should secure more affordable units, in a region facing a bout with rising homelessness and in a severe shortage of affordable housing.

Eric Gray, who runs the Christian Service Center in Parramore, said the city’s investment should come with a heftier commitment to affordable housing.

“I think our Downtown Development Board is doing phenomenal work, but in a community with arguably the worst affordable housing crisis in the nation, any homes being funded even in part by the city need to more aggressively meet our affordability needs,” he said.

Sebastian Castro, an Orlando resident who previously worked at the arena, questioned why the incentive was necessary.

“I understand public-private partnerships are essential to the growth of our city, however, it seems to me unfair that a well-funded private entity whose employees are rockstars for creating global partnerships is set to be given $2.5 million taxpayer dollars for conference and events space,” he said.

Lawanna Gelzer, a candidate for the vacant District 5 seat on the city council, called the deal a “handout to the 1%.”

“They already got their arena…which is on the backs of taxpayers,” she said.

Commissioner Jim Gray, who for years has criticized downtown’s offerings as too skewed toward nightlife and too few other uses, said the project has the chance to bring life to the area.

“I think this project could be one of the more transformative projects that we’ve seen in a long time downtown,” he said. “I understand the concern…I see this project as not just forgoing tax revenue, but it’s an investment.”

rygillespie@orlandosentinel.com