After voluntarily forfeiting a $1-million performance deposit check on Oct. 1 to the county, Austin, TX-based FaulknerUSA still hasn't come up with a financing plan for the undertaking in the prime tourist corridor at State Road 535 and Osceola Parkway, sources in Osceola County government tell GlobeSt.com.
Under previously disclosed terms, the county would contribute a maximum $98.5 million to build the center. A revenue bond issue would underwrite the entire project and a planned adjacent 800-room hotel. The county would create a nonprofit corporation to own the land and the buildings.
FaulknerUSA's last funding suggestion to the county was to raise the hotel bed tax to 6% from 5% to shore up the future bond issue. However, commissioners are undecided if this tactic would resolve the financing issue, independent planners tell GlobeSt.com.
Terri Dusek, FaulknerUSA's communications director, tells GlobeSt.com "the project financing hinges on the county's vote on Dec. 15 regarding levying an additional cent of bed tax." She says the increased tax is important to the deal because "the bond market needs to see an additonal layer of reserve funds due to the slower-than-anticipated rate of economic recovery in Central Florida."
Dusek tells GlobeSt.com "there seems to be good community support for the (additional) cents, especially from the US 192 corridor hoteliers and even from a group called Ax the Tax--that group's first ever pro-tax position."
She adds, "With the additional cent reserve, the convention center and hotel project financing could close in approximately 60 to 90 days and construction would commence immediately thereafter."
"If the county can't come up with some plan that would satisfy Faulkner, the project is dead for this year and on hold for the next few years," an independent Orlando planner and consultant intimate with the project's financing negotiations tells GlobeSt.com.
Administrators at Osceola County and couldn't be reached by GlobeSt.com's publication deadline to learn whether new funding deadlines have been set for the project. FaulknerUSA officials previously stated they would not bow out of the project until suitable financing could be arranged.
In a letter to Osceola County chairman Paul Owen in September, FaulknerUSA chairman Mark F. Shultz wrote: "I assure you that in no way is the project's momentum slowing. Faulkner USA and the entire team continue to rapidly move forward. Activities under way include preparation for contractor selection, permitting and finalization of the design phase.
"FaulknerUSA has earned the reputation of the being the company that can make developments a reality in the most challenging circumstances. We have pledged that reputation, along with an investment as of today of more than $2.9 million. Our commitment to delivering this project for the people of Osceola county is unwavering.
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