Company Profits Off City-Owned Amway-Adjacent Parking Lot Without Having to Compete for the Lease

The City has been letting the same company charge Amway Center guests for parking during every Amway Center event on a City-owned lot since 2011 and wants to continue letting the same company keep the same financially lucrative lease until 2022.

The parking lot is across from the Amway Center's Geico Garage at 448 S. Division Ave (MAP).

The company owns the vacant lot immediately adjacent to City’s lot at 428 S. Division Ave and has made minor improvements to both properties in order to use them as a surface parking lot.

The company is called 428 S. Division LLC. They pay the City $729.30 a month plus Leasehold Tax, Stormwater Utility Tax and applicable Florida State Sales Tax. Amway hosts several events throughout the year, so the potential profit from charging Amway guests to park on this lot is astronomical.

An opportunity for other companies to bid for this profitable and lucrative lease has not been made available to the public. The lease goes before the City Council today, March 20th. The City wants to continue renting to this company for up to an additional five years at the same rent with 5% increases per year. The City clerk recommends "Approval and authorization for the Mayor... and City Clerk to execute the Lease... without further City Council approval..."

The Lease term shall be two (2) years commencing on April 1, 2017 and ending March 31, 2019, and may be extended for three (3) additional terms of one (1) year each upon mutual agreement of the parties.  Rent shall be $729.31 per month and will increase at 5% per year.  Either party may cancel the Lease for its convenience with ninety (90) days prior written notice.  

Additionally, the Lease is subject to Tenant obtaining the temporary surface parking use permit pursuant to Part 4N Chapter 58 Orlando City Code.  Should such permits expire or otherwise terminate while this Lease is in effect, the Lease will also automatically terminate at the same time.

The City-owned lot

The Tenant owns the lot right next door. The City says the tenant has made improvements to the lot they rent from the City.

Both lots are across the street from Amway Center's parking garage. They're used to make money renting out parking spaces to Amway Center guests. 

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