Winter Haven | Legoland Florida Theme Park

[Lakelander]

Anatomy of a Deal: How Polk Landed Legoland

Agreement is the product of intense, secretive negotiations.

By Gary White
THE LEDGER

Published: Tuesday, February 2, 2010 at 10:28 p.m.


WINTER HAVEN | When a British visitor arrived at Cypress Gardens Adventure Park one day in November 2008, the gates were closed and the park was empty.

But the compact, dark-haired man wasn't turned away. He had been invited.

Brian Philpot, a co-owner of the venerable theme park, took the wheel of a golf cart and gave his guest a tour of the 150-acre attraction.

Fourteen months later, that visitor, Nick Varney, CEO of England-based Merlin Entertainments Group, was back at the park, this time standing at a lectern - red and shaped like a Lego - to announce his company had bought Cypress Gardens and would transform it into Legoland Florida. The attraction is scheduled to open by late 2011.

Between Varney's hushed first visit and the celebratory press conference Jan. 21, the park was the subject of intensive and secretive discussions involving not just the Cypress Gardens owners and Merlin representatives but also Polk County tourism officials and government leaders. Today, the county commission is expected to approve a package of incentives totaling up to $5 million over 10 years for the company.

"We both thought the deal was dead a number of times," said Philpot, who, along with partner Rob Harper, sold the park for a price indicated by county tax records as $22.3 million. "Whether it was the Lego team or whether it was us, Rob and me, whenever we got to those moments we were able to resurrect it with one solution or another. It just goes to show their side and our side were really committed to getting this done."

Mark Jackson, director of the public-private Central Florida Tourism and Sports Marketing, also played a crucial role, crafting a package of incentives that promises up to $5 million over 10 years to Merlin for choosing Polk County over other potential locations for its fifth Legoland park and only second in the United States.

"I think I put on about 10 years with this one," Jackson said of the negotiations. "My hair has gotten grayer, my wrinkles have gotten bigger and my stress level has gone up. But in the end it was all worth it."

FIRST CONTACT IN 2008

Philpot and Harper, managers of Mulberry-based Land South Holdings, first heard from Merlin executives in the summer of 2008. Merlin, the world's second-largest operator of tourist attractions behind Walt Disney Co., was seeking a site for a second American Legoland park.

Philpot and Harper made plans to meet with Merlin executives in November 2008 at the annual convention of the International Association of Amusement Parks and Attractions in Orlando. Merlin CEO Varney was a keynote speaker at the convention.

Philpot said he and Harper first met with John Ussher, Merlin's general manager, and John Jakobsen, managing director for Legoland parks, at the convention. Philpot said Merlin representatives made a scouting trip to Cypress Gardens, and their report convinced Varney to take a look.

At the time, the park was closed on weekdays, making it easy for Varney to visit without attracting attention.

At the Jan. 21 press conference, Varney described his response to Cypress Gardens as "love at first sight." Philpot said the Merlin CEO made no attempt to maintain a poker face on that first visit, either.

Varney may have loved the place, but Philpot said the company had to go through a long period of analysis before making an offer.

Philpot said he and Harper knew Merlin was considering other properties, and he heard rumors about three sites in Orlando, including the former Splendid China attraction, which closed in 2003. Philpot said he heard one out-of-state entity offered to make $150 million in infrastructure improvements to lure Legoland.

Meanwhile, the Cypress Gardens owners were hearing from other potential buyers, before and after they shut down operations at the park last September.

Philpot said he and Harper declined some competing offers as the Merlin deal slowly developed.

As negotiations heated up last summer, the Cypress Gardens owners met with leaders from county planning departments and the tourism agency.

Jackson, the point man for Central Florida Tourism and Sports Marketing, began a long series of phone calls with Merlin's Florida-based lawyer. Jackson said Poole, England-based Merlin was engaged in intensive research on Polk County, conducting Lego brand-recognition marketing surveys, even as his own group plunged into a crash course about Merlin.

Jackson and other county officials quickly determined the theme park's financial potential merited a major offer of incentives from the county, and Jackson began drawing up the details.

Meanwhile, he and others - including Tom Patton, executive director of the Central Florida Development Council, which oversees Jackson's agency, and Polk County Manager Mike Herr - began meeting individually with all five county commissioners and all nine members of the Tourist Development Council board, which oversees the tourism and sports marketing agency.

Consulting with more than one at a time would have required public notice under the state's open-government laws, and Jackson said Merlin representatives wanted to avoid publicity.

UNANIMOUS SUPPORT

Jackson said the commissioners and TDC board were unanimous in supporting financial incentives for Legoland. The TDC voted to approve the incentive deal last week.

Herr and other county officials also discussed transportation concerns with Merlin representatives.

Those talks included plans for a land swap that would allow the county to reroute Helena Road away from the park on its south end, a plan the county had considered for years.

Herr said he and his staff also discussed its development review process and how it calculates impact fees.

Jackson and Merlin representatives also traveled to Tallahassee to meet with Gov. Charlie Crist and leaders from the state's Department of Community Affairs and Department of Environmental Protection. Jackson said state agencies were brought in to ensure a potential Legoland would face no obstacles from a conservation easement on Cypress Gardens established in 2004 as part of a complicated deal among state and county officials, the Trust for Public Land and a private buyer.

Though Merlin representatives never made any explicit demands from the county, Jackson said it was understood that the company wanted assurances of support.

Jackson said he spent many nights and weekends crafting a package of inducements. He continually revised the package based on suggestions from Herr, Patton and County Attorney Michael Craig.

"When you're dealing with a company of that size and that magnitude and realizing what's at stake, there are always going to be some tense times and nervousness," Jackson said.

"You get a little tenseness and then there's a bright spot, tenseness and a bright spot. There's a lot riding on it, and you take it personally. It was a roller coaster ride."

The result was a four-page letter dated Aug. 20 and addressed to Jakobsen, spelling out in detail what the county would offer and what it expected from Merlin.

"Knowing what our competition was, it (the offer) had to be pretty powerful," Jackson said. "I felt we pretty much had one shot at it, and this came together very quickly. I knew we had to put our best foot forward, not sit here and finagle back and forth."

Under the marketing partnership arrangement, Polk's tourism agency will pay Merlin $350,000 a year for 10 years.

The company also will be eligible for up to $150,000 a year for a decade through the Polk County Business Incentive program, which rewards new businesses that pay at least 115 percent of average county wages.

Jackson's offer also pledged marketing of Legoland at physical locations and through media operated by his agency.

Merlin won't receive the county money right away. Jackson said the first check from the tourism fund will go out when the park opens. Merlin won't become eligible for the PCBI until after it hires a staff and submits records proving it meets the program's criteria.

And if for any reason Legoland ceases operations, the flow of county money would stop, Jackson said.

While attention has focused on Polk County's promised payments to Merlin, Jackson said he thinks the benefits to the county will outweigh the costs.

For example, he said Merlin's agreement to promote Polk County vacation packages through its 4-million-member Lego Club database offers invaluable exposure.

A county economist has projected an economic impact of $459 million a year from Legoland Florida. The county expects to take in $1.4 million a year in intangible property taxes, Jackson said.

Jackson said the promised $350,000 a year to Merlin represents about 5 percent of his agency's tourism development funds.

Under state law, that money can only be used for tourism initiatives, meaning it isn't coming from the general county budget.

"We will probably double that in terms of just tourism revenue (increases) the first year they're in operation," Jackson said.

"So it is going to pay for itself."

Even with the county inducements, it took another four months before the purchase was completed. Philpot said potential obstacles arose into late December.

Asked about moments of doubt, Philpot said, "Since we initially began negotiating the deal in earnest, I'd say half the weekends were that way. We really did not have a firm feel the deal was going to happen till Christmas."

http://www.theledger.com/article/201...anded-Legoland

[HeartofFlorida]

Would an aquarium made of Lego blocks hold water? Mark Jackson thinks it could be so.

A Sea Life aquarium could eventually be part of the final package as Legoland comes to Central Florida according to Jackson, director of tourism and sports marketing for the Central Florida Visitors and Convention Bureau.

The second phase of Legoland construction "possibly, if you look at the California model, (could include) a Sea Life aquarium (and) definitely a resort destination hotel," he said Friday at a meeting of the Haines City Chamber of Commerce. Merlin Entertainment, the company which will build Polk's Legoland's park, also owns Sea Life aquarium centers, more than 30 around the world including one in California at the Legoland park there. Company officials told Jackson a Polk Sea Life aquarium is a possibility.

There are two Sea Life attractions currently in the United States, one adjacent to the California Legoland attraction and a second stand-alone attraction in Arizona. The California location opened in August of 2008, and was the first one to be built in this country.

Construction of the water attraction was completed in about 10 months. Legoland charges a separate admission for the attraction, but according to its Web site, a one-day pass that allows adults to visit both Legoland and Sea Life costs $77. An individual adult ticket to Sea Life costs $19.

The Sea Life attraction contains 72 Lego models and features more than 200 species. The company describes it as "an interactive, immersive and inspirational child's guide to the life of the sea."

A 35-foot-long acrylic ocean tunnel allows guests to walk through and experience Lost City of Atlantis without ever getting wet. Guests can also explore the 36,000 square-foot, two-story Aquarium, and discover 36 displays holding more than 250,000 gallons of water.

Key features throughout 14 themed rooms include the Discovery Zone, where guests interact with marine life experts, touch tide pool animals and take an inside look at the lives of sea creatures from special pop-up viewing stations; the Shoaling Ring, where guests are surrounded 360 degrees by schools of swimming fish; and the Ray Lagoon where several species of rays appear to "fly" through the water in Mayan temple ruins.

Key creatures include sharks, rays, jellyfish, seahorses, an octopus and several species of freshwater fish which can be found in California lakes and streams as well as cold water marine animals native to the California coastline, the company noted.

Dollar signs - lots of them - are bright spots in the area's future thanks to Legoland, according to Jackson. They recently announced plans to locate a Legoland at the site of the former Cypress Gardens Adventure Park to be opened by late 2011.

The other Legoland in the U.S. - in Carlsbad, Calif., is the only theme park in the country to see an increase in visitors - and revenue - last year, he indicated. That park's 6-percent increase can be compared to Orlando-area tourism which was down "almost 20 percent last year," Jackson told those attending February's Haines City Northeast Polk County Chamber of Commerce luncheon Thursday.

And these visitors are, according to Jackson, "towing a trailer full of money behind them ... and they're just dumping it in Polk County."

Tourism is an export, Jackson said, "wherein somebody from another country or region purchases a product or service, they drop off their Pesos, Euros, Loonies, ... whatever it may be, they're dropping it off here. They're taking away with them a great feeling, a photograph, a great experience. That's what we want them to have here in Polk. They're leaving here with something - a product or service."

Jackson said he and his agency worked for months to put together the deal that in January resulted in Merlin's purchase of the former Cypress Gardens property in southeast Winter Haven from Bryan Philpot and Rob Harper's Land South Holdings.

Merlin, formed in 1999, has grown to have 59 attractions in 13 countries on three continents and is second in size only to Disney. Merlin's goal, Jackson said, is to become the worldwide leader in branded, location-based entertainment.

Existing Legolands are in Billund, Denmark; Gunzburg, Germany; Windsor, England; and California.

As a result of the partnership, Polk will, among other things, have a kiosk at the Legoland entrance. "We will touch 2 million people annually as they come through the park," Jackson said. "We'll get them to stay longer ... stay two or three days, not one day."

Lake Wales and Ridge communities in general will benefit, Jackson adds.

"These visitors naturally will be attracted to Lake Wales," he said. "Between Lake Wales itself, with all its natural charm - everything from fish camps to a thriving art culture - and Bok Tower Gardens, that area is a magnet for visitors. It will turn Lake Wales into (more of) a destination."

Other businesses "won't be able to keep up with the demand," Jackson said. Vacation rentals and hotel and motel rooms will increase, especially up and down U.S. Highway 27.

"The highway - 27 - is the vessel that will bring these visitors in," he said. "Businesses up and down the highway will see significant changes."

Jackson said the area can expect a capital investment of "a lot more than $100 million" in phase 1, and 1,000 new jobs. Initially construction jobs and all the related things; 1.5 - 2 million visitors annually; $459 million economic impact for Polk County.

"That'll be one of our largest industries - ever."

The county annually will receive $1.4 million in sales tax - about 18.6 percent of the 7 percent state tax comes back to the county. That's from just spending in the park.

There'll be also $1.2 million in property tax, Jackson said, as well as Tourist Development Tax revenue: "If we generate 50,000 room-nights, we'll generate $175,000 in additional tourism spending. If 200,000 room-nights, $700,000 annually."

Jackson says the county's half-million-dollar annual contribution is a "pretty good investment."

But that's not all, Jackson said. "The most valuable thing: We have access to their data. Four million people are cult-like followers of Lego toys. We have visibility at 59 theme parks world-wide. We have access to their other marketing channels as well.

"We'll be sharing billboards, print and electronic media, and other advertising and splitting the costs. We're raising our revenue and we're reducing our cost," he added. ""You can't pay for that kind of visibility to be associated with the second largest attractions company in the world."

We will see if this comes to fruition.

[HeartofFlorida]

More details to emerge next week. Enjoy!

[IAmFloridaBorn]

This park is going to fail because of location.

[HeartofFlorida]

[Lakelander]

Looks pretty good.

[I-275westcoastfl]

Originally Posted by IAmFloridaBorn

This park is going to fail because of location.

I disagree, they need to find a way to get an expressway to lead to it.

[HeartofFlorida]

Originally Posted by I-275westcoastfl

I disagree, they need to find a way to get an expressway to lead to it.

That's already been decided upon. How quickly funding is approved (if ever) during the current regime is another matter.... Best case, 10-15 years..... Worse case, NEVER. The closest interchange would be at US27 approximately .82 miles south of 540 (Cypress Gardens BLVD). From there, another 3.76 miles and you're there. That's about as close as it's gonna get especially with the NIMBY's in the area. Now that Legoland is on the verge of completion and the planned ILC (outlined on panel E-1), this might help expedite things a little. Only time will tell.

For full-size versions of the maps below, click here.

[I-275westcoastfl]

I knew something was in the works but if/when it ever gets built is another story.

[HARTride 2012]

Legoland Florida is stepping up its efforts to hire before its October opening.

Park officials said about 800 jobs are available in operations, food service and retail.

Job seekers can apply for a job at www.LEGOLAND.com/jobs.

http://www.baynews9.com/article/news...-fill-800-jobs

[HARTride 2012]

Originally Posted by HeartofFlorida

That's already been decided upon. How quickly funding is approved (if ever) during the current regime is another matter.... Best case, 10-15 years..... Worse case, NEVER. The closest interchange would be at US27 approximately .82 miles south of 540 (Cypress Gardens BLVD). From there, another 3.76 miles and you're there. That's about as close as it's gonna get especially with the NIMBY's in the area. Now that Legoland is on the verge of completion and the planned ILC (outlined on panel E-1), this might help expedite things a little. Only time will tell.

For full-size versions of the maps below, click here.

With the Transportation Trust Fund wiped GONE, I doubt this project will EVER get off the planning books

[HeartofFlorida]

Originally Posted by HARTride 2012

With the Transportation Trust Fund wiped GONE, I doubt this project will EVER get off the planning books

We'll see. CSX already has the state over a barrel so why stop there? This project directly benefits them too.

[HeartofFlorida]

Source: The Ledger

WINTER HAVEN | Legoland Florida is giving its Facebook fans an even easier way to make reservations at local hotels.

One click on a newly created "Plan A Trip" link on the Legoland Florida Facebook page brings up a menu of hotels, tickets, vacation packages, car rentals and flights. The page includes links for the 13 partners in Legoland's Bed & Brick preferred lodging program. [read more...]

More: http://www.theledger.com/article/201...ick-Now-&tc=ar

[HeartofFlorida]

Source: The Ledger

TALLAHASSEE | Gov. Rick Scott, who killed high speed rail in Florida earlier this year, is pushing ahead with a major transportation plan that calls for speeding up road projects and relying more on new tolls to help pay for them.

The plan, unveiled by the state's transportation chief at a road-builders conference Friday, also calls for reviving work on controversial new road projects such as the Heartland Parkway in Florida, as well as a parkway stretching across the state from Manatee County. The Scott administration wants to consolidate the groups responsible for approving new roads and look at ways to eliminate "regulatory burdens" to accelerate construction.

More: http://www.theledger.com/article/201...p=all&tc=pgall

I told you all CSX would get the Heartland back on track.

[HARTride 2012]

Not surprising. And I will not be surprised if the Quad-County Beltway in Tampa gets resurrected cause of this. Oh, and look out for another shot by the legislature to eliminate the THCEA & OOCEA again next session. I'm willing to bet that they (the legislature) will win next time.

He also said that DOT wants to privatize and outsource as much as possible in the coming years.

This is especially not surprising.

[HeartofFlorida]

Source: The Ledger

WINTER HAVEN | Legoland Florida will offer a shuttle service from an Orlando shopping center to the Winter Haven park, scheduled to open Oct. 15.

Tickets are on sale at a discounted preview price of $5 per person for the round trip. The cost will eventually rise to $10, Legoland Florida spokeswoman Jackie Wallace said.

More: http://www.theledger.com/article/201...e-From-Orlando

[Orlando Villas FL]

Originally Posted by HeartofFlorida

http://www.theledger.com/article/201...e-From-Orlando

This can only be good news I guess, and of benefit to the local tourism industry.

I'm curious to see how this Legoland will compare with the ones in Europe (Denmark, England and Germany).

[TampaMike]

Tomorrow is the big day! Anyone going for the opening day or is everyone else being smart and waiting until the park isn't jammed back? haha

Also, looks like Legoland doesn't want to wait too long for an expansion. Plans are that they want to construct a water park by next summer. Also, there is plans for a hotel resort. Legoland is going to be a huge economic boost for Winter Haven.

http://www.bizjournals.com/orlando/n...u&ana=e_du_pub

[HeartofFlorida]

Source: The Ledger

BARTOW | The Central Polk Parkway, a proposed major toll road through rural sections of eastern Polk, is slated to get $37.9 million for design work in the upcoming Florida Department of Transportation five-year work plan.
That figure didn't include any money for buying right of way or construction, and those would total substantially more than the design costs. more...

More: http://www.theledger.com/article/201...p=all&tc=pgall

I hate it when I'm right. One thing obviously missing from the provided photo versus other preliminary designs is a US27 exit. Not the smartest move.

[HeartofFlorida]

Originally Posted by TampaMike

Tomorrow is the big day! Anyone going for the opening day or is everyone else being smart and waiting until the park isn't jammed back? haha

Also, looks like Legoland doesn't want to wait too long for an expansion. Plans are that they want to construct a water park by next summer. Also, there is plans for a hotel resort. Legoland is going to be a huge economic boost for Winter Haven.

http://www.bizjournals.com/orlando/n...u&ana=e_du_pub

Obviously, Merlin is serious about making this location a success. With the news of funds for the CPP, the drive from I-4 to Legoland will get easier in future.

As far as visiting Legoland, will probably do so during Thanksgiving while I'm in the area.