Property Appraiser, Universal Square Off in 860-Acre Tax Tiff

The theme park, which owns 2,500 acres in southwest Orlando, is fighting to keep a special agriculture-zoned exemption for 860 pine tree-covered acres at Universal Boulevard and International Drive that is worth $1.4 million in saved taxes each year.

Universal has had a lower tax assessment on the 860 acres since 1999 when Orange County chairman Rich Crotty was the property appraiser. The property was then zoned agriculture with a lower tax assessment.

But Bill Donegan, his successor and a former Orange County commissioner, contends Universal should pay the $1.4 million tax bill because the 860 acres are essentially commercially used land that is being prepared for sale or development. Universal owns a total 2,500 acres. The park bought the 860 acres in 1998.

Donegan and his staff contend Universal already has sold off parcels totaling $185 million, moved canals, extended Universal Boulevard and mitigated wetlands--all signs of near-future development. Donegan maintains Universal is not deriving revenue from agriculture-related products which it must do to keep its lower assessment.

But Universal is arguing at a special hearing that opened Oct. 18 in Orlando that it has invested about $520,000 so far in growing pine trees on the 860 acres.

The park maintains it has no plans to develop the tract into a new theme park or condominium community for another 20 years and should be allowed to keep the lower agriculture-zoned tax status, county staffers following the controversy tell GlobeSt.com on condition of anonymity.

Special master Francis E. Pierce Jr. with the county's Value Adjustment Board will make the final ruling next month. Universal can still sue the property appraiser and the board in Orange Circuit Court if the decision doesn't favor the park.

Other large Orange County land owners are appealing similar rulings made by Donegan. Among them are hotelier Harris Rosen, Busch Properties, Sea World, Hyatt Hotels and Hilton Hotel Corp.

Absent this year from the appeal route is Walt Disney World. Disney, the largest taxpayer in Central Florida, isn't fighting a $200,000 addition to its annual $50 million tax bill.