Seminole's funding plan for indoor events center: ‘Math doesn't work'

Yahoo

19-05-2025

When Seminole County decided last February to let hotels put a new $1.75 per-night fee on local hotel rooms, the idea was to raise millions of dollars to build a new indoor events center.
But with an estimated price tag of upwards of $100 million for the 172,000 square-foot facility — roughly twice what the hotel fee could support — county leaders now realize their plan has a big hole.
'The math doesn't work,' Commissioner Andria Herr said Tuesday during a staff presentation. 'We all need to have realistic expectations or be willing to have realistic expectations elsewhere in the spending of the county dollars.'
Advocates had hoped it might be possible for the complex to be built entirely with revenue from Seminole's new tourism improvement district fee, or TID.
Now they are asking whether Seminole should tap other revenue sources for the additional millions needed, such as its penny sales tax, sponsorships, or the taxpayers' money set aside for parks in the county's general fund.
Seminole's new TID fee — which hotel guests started seeing on their bills April 1 — is expected to raise $3.2 million annually. The assessment is added on top of the county's 5% tourist tax — also known as a bed tax — and 7% sales tax.
But at that TID rate, Seminole would be able to borrow only up to $51.2 million toward building the new indoor facility, according to county records. The latest estimates, from 2023, showed a facility expense between $66 million and $100 million, and county officials acknowledged this week that inflation likely has driven up the cost.
Seminole — which lacks the big-name theme parks and other flashy tourist attractions as neighboring Orange County — has relied on amateur athletic tournaments to draw visitors for at least the past decade. The county boasts six outdoor athletic facilities, including the Boombah Sports Complex off East Lake Mary Boulevard near the Orlando Sanford International Airport
A new multi-million dollar indoor arena near Boombah would more than double the number of people booking local hotel rooms, according to county projections.
Such an indoor venue also could be used for small conventions, banquets and high school graduations, as well as amateur athletic competitions for volleyball, cheerleading and martial arts.
In an effort to move the project forward, Seminole commissioners on Tuesday agreed to hire a consultant — or a facility program plan manager — to put together a detailed plan on an indoor complex and how to pay for it.
The consultant would answer: 'Here's what the development project needs to be. Here's the size that we're looking for, and then develop not just the scope, but also a budget for the project, so we can narrow that [financial] gap and really land where we think the sweet spot might be for this,' said Rick Durr, Seminole's director of parks and recreation department.
The indoor facility — proposed for an old vegetable field at the northwest corner of Moore's Station Road and East Lake Mary Boulevard in Sanford — would have enough space for 12 basketball courts or 24 volleyball courts, according to preliminary plans. It could seat at least 6,000 spectators. It also could include meeting rooms, café, and a stage.
By comparison, the Addition Financial Arena — at the University of Central Florida — is 252,000 square feet and can seat 10,000 spectators.
Supporters of an indoor complex say Seminole has long lacked an indoor venue for banquets, conventions and graduations. This month, graduating seniors from Seminole's nine public high schools will head to the UCF arena for commencement ceremonies.
'It's not just about sports,' Durr said in support of building the facility.
But Commissioner Amy Lockhart said athletic tournaments that fill Seminole hotels could conflict with local events at the center. She pointed out that when the Boombah Sports Complex was built nearly a decade ago, it was seen as a facility for local sports leagues. But it is now frequently booked for large amateur athletic events.
'I can foresee a potential conflict where we have seven high school graduations, all in a particular month, and we've got a great offer on the table from someone who wants to host an event that's going to generate a ton of revenue,' Lockhart said of the indoor complex. 'We need to be able to allow our locals to be able to use it.'
In 2024, Seminole had nearly 2.3 million visitors, including an estimated 60,860 that came for athletic tournaments. By comparison, Orange County — a worldwide tourist destination with its large theme parks — had nearly 60 million visitors last year.
A new indoor complex would bring in an additional 49,794 visitors into Seminole in its first year, and 85,437 additional visitors in its fifth year, according to county forecasts.