Universal Orlando Tries to Get Lower Property Taxes
This is rather amusing. Universal Orlando was to go in front of the Orange County Value Adjustment Board to ask for a reduction in their property taxes. Representatives for Universal Orlando bailed when they found out that a reporter from the Orlando Sentinel would sit in on the hearing. The representative for Universal Orlando and Loews Hotels told the magistrate they did not want to discuss their "business data" in front of a journalist. The was magistrate unswayed and turned down the request to lower the property taxes.
After the hearing, Universal Orlando and Loews Hotels refused to provide a comment for the Orlando Sentinel. What is clear is that profits have increased from the Universal Orlando and Loews Hotels partnership.
The three hotels are owned by a joint venture between Universal and Loews, which then pays ground rent to Universal Orlando based on a percentage of hotel revenue. The joint venture paid Universal approximately $13.3 million in 2010, according to regulatory filings — an increase of more than 600 percent from $1.9 million in 2009 and a 10.7 percent increase from $13.2 million in 2008. (The payments plummeted in 2009 because the hotels did not meet a contractual cash-flow threshold.)
Anyone know know Loews cash flow problems in 2009?