Lawsuit could halt planned Orange County Convention Center expansion

An Atlanta developer is seeking to halt a planned $560 million expansion to the Orange County Convention Center until the county builds a highway interchange promised nearly 30 years ago.

Universal City Property Management filed a lawsuit late last month in Orange County Circuit Court, citing land covenants attached to a 1998 sale of 230 acres to the county. The county bought the land to expand the convention center amid a nationwide race to be a leader in hosting business meetings.

Under the terms of the $69 million deal, the county couldn’t expand the convention center again until it extended Kirkman Road from Sand Lake Road to State Road 528, with a highway interchange.

Earlier this year, the county announced plans to begin construction on an expansion to the convention center, a plan delayed by the COVID-19 pandemic, though that section of Kirkman Road has not been built. Construction on the convention center is slated to begin in December.

“Orange County has and continues to blatantly ignore and violate the terms and restrictions of the Land Use Covenant,” the lawsuit reads. “Orange County still has not proceeded with, or even made any efforts to proceed with, the design, engineering, or construction of the Kirkman Extension and beachline Interchange as required by the Land Use Covenants.”

An Orange County spokesperson said the county government doesn’t comment on pending litigation.

Tucker Byrd, the Winter Park attorney who filed the lawsuit, said the development company decided to pursue legal action after numerous discussions with the county over the interchange went nowhere.

“The county has not pursued building the interchange per se although it certainly has studied the matter,” he said in an email. “By comparison, our client has studied the matter thoroughly and believes the project viable. Certainly, the county believed so back when it made the promise.”

UCPM is owned by Georgia businessman Stan Thomas, who purchased the company from Universal Orlando in 2003. The theme park giant in 2016 bought back 475 acres of the land for its new Epic Universe park, which opened in May.

Thomas intends to develop his land to support the tourism and hospitality industries, Byrd said.

The county announced earlier this year that the $560 million “Grand Concourse expansion” to the convention center was expected to begin construction next year and be completed in 2029. It includes 44,000 square feet of meeting space and a 100,000 square foot ballroom. The county is also planning to add another 200,000 square foot multi-purpose space to the facility.

The convention center totals 7 million square feet today.

The lawsuit contends the company should receive damages “in the hundreds of millions of dollars,” and it seeks a permanent injunction halting the county from the convention center expansion “unless and until the Kirkman Extension and the Beachline Interchange have been designed, engineered and constructed by or on behalf of Orange County.”

So far no hearings have been scheduled in the matter.

Thomas, who made a name for himself building shopping centers in Georgia, lost at least some of his accrued Orlando property in a $285 million foreclosure. Some of that land was was purchased by Universal, and other parcels became TopGolf and other I-Drive attractions, Orlando Weekly reported. 

Kirkman Road runs north and south through the tourism corridor snaking west of Tangelo Park along the western edge of Epic Universe. The road had stopped at Sand Lake Road — until Universal and Orange County agreed to a deal in 2019 to extend the road to Universal Boulevard to serve Epic.

Under the arrangement, the county kicked in $125 million in taxpayer money toward the 1.7-mile extension.

However, the road stops short of State Road 528.

Epic Universe opened in May, becoming the entertainment giant’s latest theme park offering with worlds dedicated to Super Nintendo and the Wizarding World of Harry Potter.

The original land transaction between the two parties dates back to 1998, when Universal City Property Management — then controlled by Universal Orlando Resort — bought more than 1,500 acres of undeveloped land between Sand Lake Road and State Road 528, which the lawsuit states “was and remains one of the most valuable real estate assemblages in Central Florida.”

As the deal was closing, the county asked Universal to donate or sell it about 200 acres, and the two sides worked out a deal for 230 acres so the county could expand its convention center. The lawsuit states Universal cut the county quite a deal, selling the land at a 75% discount.

Beyond the Kirkman Road restrictions, the county also agreed in that deal not to build hotels on the land, or allow Universal’s competitors to advertise at the new convention center, the lawsuit says.