Memorandum

August 21, 2023

TO: Mayor Jerry L. Demings

Commissioner Nicole Wilson, District 1
Commissioner Christine Moore, District 2
Commissioner Maribel Gomez Cordero, District 4
Commissioner Emily Bonilla, District 5
Commissioner Michael Scott, District 6

FROM: Mayra Uribe, Commissioner District 3

RE: Response to August 18 Memo regarding Tourist Development Tax (TDT)

Projects Funding Proposal

Mayor Demings and Commissioners,

After reviewing the memo regarding the Tourist Development Tax Projects Funding
Proposal, I have a number of questions and concerns that I wish to discuss at
the August 22, 2023, Board Work Session.

First, the members of the Tourist Development Tax Citizen Advisory Task Force
(TDT Task Force) participated in a very long process that
included thorough discussions and deliberations during numerous meetings that
took place throughout a five-month period between March and July. These members
volunteered their valuable time to serve the residents of Orange County and
provided the BCC with five recommended projects. These projects scored the
highest based on the criteria that were provided to them at the outset of their
meetings. The highest-ranked projects, in order, are the Orange County Convention
Center (OCCC), Camping World Stadium, Amway Center, the Dr. Phillips Performing
Arts Center (DPAC) expansion, and the UCF Sports Village. In the funding
proposal, we are essentially discarding the latter two projects, DPAC and UCF, from
funding consideration by the BCC, and, in doing so, it appears that we are
undermining the work of the TDT Task Force that spent months evaluating these
proposals. Furthermore, unlike the TDT Task Force, these projects were not given
the opportunity to publicly present their proposals to the BCC. This prevented us, as
Commissioners, from having the opportunity to address our concerns directly with
the applicants in a public and transparent manner. We have also been denied
the option to openly discuss these projects as a Board and make determinations
on our own on whether the DPAC and UCF projects deserve any funding
considerations at this time.
Also, the memo proposes extending the term of Orange County TDT debt to 30 years
from the current 20 years; it refers to it as a "minor tweak." Yet, extending the term
of our bonds would result in significantly higher borrowing costs, as the interest
expense on borrowing $900 million over 30 years would result in $554 million in
interest expense, while borrowing over 20 years, at the same rate, would result in
$352 million in interest expense. The County would save over $200 million in
interest by financing debt for 20 years rather than 30 years. In addition, this
extended loan would also compromise and prevent future County Commissions
from having the opportunity to make their own choices.
Per Comptroller Diamond’s informational release, he described a conservative
estimate of available TDT bonding. Have we received the actual figures, including
current interest rates, fees, and options for both 20- and 30-year bonds? I believe
the BCC should be provided with this information so that we, as a collective
legislative body, can discuss and make the decision with a majority vote.

Regarding the Orange County Convention Center project, at our previous TDT
discussion during the BCC meeting, Commissioners requested the updated cost
proposal. Has the County or Convention Center staff requested an updated cost
estimate for the entire project (Phases 5A and 5B), and if so, could you provide an
itemized budget that shows Phase 5A at $500 million? And the project estimate for
5B?

As far as the Camping World Stadium project is concerned, why is Orange

County being asked to fund a City of Orlando venue? Are we slated to receive a
return on our investment or other financial benefit? I don’t believe it serves our
county well to be financially responsible for a municipal venue. What is the City of
Orlando’s contribution towards the stadium renovation, or does the proposal
require that the County be responsible for financing the entire debt?

Finally, and most importantly, a discussion is needed on the current TDT

funding agreement between Orange County and Visit Orlando, which is now at 30%,
an excessive amount, especially when you consider Orange County is spending more
on marketing annually than on total debt service. See below:

2019- TDT Collections $283 million, and Visit Orlando received 22%, or $62
million.

2023- TDT Collections $360 million (estimated), and Visit Orlando will receive
30%, or $108 million.
Furthermore, regarding transparency, Visit Orlando is the only county-funded board
that lacks a proposed and approved budget by the BCC, does not have a County
Commissioner representative on the Executive Board, has no specific financial
requirements, and does not return excess revenue back to the county (unlike every
county department, County Commissioner, and Constitutional Office). Moreover, it is
disturbing to see Visit Orlando provide funding to agencies from surplus
revenues, including United Arts, Florida Citrus Sports, and the Greater Orlando
Sports Commission. Under the County charter, funding these agencies requires BCC
approval, and this practice undermines our legislative authority. Attached are the
minutes from the Visit Orlando, June 8, 2023, Board of Directors meeting.

https://visitorlando.widen.net/s/vdmqknrrnf/vo-2023-q2-board-minutes

A restructuring of this funding agreement with Visit Orlando would provide the BCC
the opportunity to create a transparent, inclusive, and fair process, similar to that of
other county-funded agencies, as well as provide additional funding to other TDT-
eligible projects within our community.

Finally, the memo requested additional funding for Arts & Cultural Affairs and the
Greater Orlando Sports Commission. While I see reason to support these endeavors,
I believe that the BCC should be made aware of the current financial balances these
organizations currently have and note the additional TDT funds they are receiving
from Visit Orlando. We want to make sure we are precise and are not allowing
double-dipping from TDT funds.

I look forward to our discussion on Tuesday.

cc Comptroller Phil Diamond, Orange County Comptroller’s Office

Byron Brooks, County Administrator
Roseann Harrington, Mayor’s Chief of Staff