O R L A N D O C I T Y C O U N C I L W O R K S H O P A P R I L 2 2 , 2 0 1 3

SPORTS AND ENTERTAINMENT DISTRICT

SED DEVELOPMENT, LLC

HISTORY & BACKGROUND

•  Concept of a sports and entertainment district has been contemplated by the City for many years.

•  2004 City of Orlando Parramore Task Force Report: •  This report’s recommendations included:

•  Improve the environment in Parramore to encourage new and expanded business.

•  Foster the development of entertainment, arts, recreation, and culture in Parramore.

•  Develop a reputation for Parramore as an entertainment destination.

•  2006 City of Orlando Community Venues Master Plan: •  Identified the opportunity to create a sports and entertainment

district.

2006 VENUES MASTER PLAN (EARLY CONCEPTS)

Early design concepts included the expansion and redevelopment of adjacent uses to compliment the venues.

HISTORY & BACKGROUND

•  During the design and construction of the Amway Center, the benefits of a sports and entertainment district were considered by the City and the Orlando Magic.

•  SED requested the City consider a feasibility study and land

purchase option agreement in 2011 to explore potential opportunities.

•  The initial vision for the project was a proposed mixed use development including the following: •  Hotel and conference center •  Office Tower (including the relocated Orlando Magic corporate headquarters) •  Parking Garage •  Retail including restaurants

FIRST OPTION PROPERTY

CITY BLOCK

HISTORY & BACKGROUND

•  Milestones:

•  September 2011 - Orlando City Council approved the Feasibility Study and Option Agreement for the first option property (parking garage / communications tower).

•  February 2013 - Orlando City Council Workshop discussed

Greenworks / OPD Headquarters Relocation Update. •  February 2013 - Orlando City Council approved the Feasibility

Study and Option Agreement for the second option property (OPD Headquarters).

•  March 28, 2013 - SED exercised its option to proceed to

contract approval and closing on the first option property.

STUDY & FINDINGS (FEASIBILITY STUDY PERIOD)

•  Analyzed other sports and entertainment districts throughout the United States including Charlotte, Nashville, Dallas and Los Angeles. •  Results vary across these districts •  Model for a successful project is complex

•  Engaged top planning and design consultants with experience on comparable projects. •  RTKL Associates, Inc.

•  Initiate early market demand studies for retail, hotel, office •  Early studies show promising demand trends that need further analysis

•  Initiated communication with other stakeholders associated with first option property. •  Orlando Union Rescue Mission •  Church Street Parking Garage Retail Tenants

STUDY & FINDINGS (POTENTIAL CHALLENGES)

•  Potential challenges include: •  Close proximity to the OPD Headquarters. •  Possible constraints to the ideal site plan including the location

of the hotel and conference center.

•  Model for a successful sports and entertainment district requires an appropriate level of size and scale. •  Potential integration of residential component.

NEXT STEPS

•  The addition of the second option property and relocation of OPD Headquarters helps to address the stated concerns. •  In the process of revising plans to include the entire City block and optimize

the project layout.

•  Propose a transaction structure to combine first option and second option into a single transaction. •  Delivery goal of April 28, 2013

•  Request an opportunity for Orlando City Council to consider the proposed transaction structure combining the first option and second option. •  City Council meeting goal of June 3, 2013

CONCLUSION

•  Continue to work and coordinate with the City and stakeholders to discuss the project and consider the key terms for the transaction structure.

•  SED and the Orlando Magic are committed to pursue this exciting opportunity to invest in downtown Orlando.