Universal’s affordable housing pledge is one small step in right direction

Congratulations to Universal for stepping up. But the company should understand why skeptics aren’t ready to throw a full-blown parade in its honor.

Skeptics rolled their eyes last December when Universal Orlando pledged to help combat the area’s affordable housing crisis.

The announcement came right before Orange County commissioners voted on a controversial plan to give $125 million to help Universal build a road through its next big theme park, Epic Universe.

Commissioners approved the plan, and we didn’t hear much from Universal until last week. The company said it’s searching for a developer to build 1,000 affordablehousing units. They will be built on a 20-acre parcel Universal is donating for the cause.

We’ve done our share of eye-rolling when it comes to tourism and wages and affordable housing. So congratulations to Universal for stepping up. But the company should understand why skeptics aren’t ready to throw a full-blown parade in its honor.

The company basically donated a piece of land worth $9.5 million as it was angling for $125 million in taxpayer money.

That commitment was just a cherry on top of an all-too-familiar pile of political donations, opaque negotiations and hardball threats. The end result was a sweetheart deal that will extend Kirkman Road 1.7 miles at a cost of $315 million.

That works out to a hefty $13,926 per foot, approximately $5,570 of which will be paid by public funds. That cues up the usual argument:

Universal says that money is a good investment, since what’s good for tourism is good for Orlando. Skeptics say at least some of the money could have gone to schools, law enforcement, public transportation and other needs.

Affordable housing is at the top of that list. The low-wage tourism industry didn’t solely create the crisis, but it has done precious little to solve it.

A Disney spokesperson said affordable housing “remains a key priority in our community,” but the company hasn’t offered any plans to address it.

Universal at least is paying more than lip service to the problem. If Orlando’s biggest employers really wanted a model to pattern themselves after, we suggest looking at California.

What Big Tourism is to Central Florida, Big Tech is to Silicon Valley. In the past year, Google, Apple and Facebook have pledged $4.5 billion toward affordable housing in California in general and the San Francisco area in particular.

A comparison to Orlando isn’t perfect, but it’s close enough. Due largely to the tech boom, the median home price in

Santa Clara County is $1.2 million. That’s about $900,000 more than homes in Orange County.

But the median family income in Santa Clara County is $126,606. That’s double what it is here. Last year, the Orlando metro area was the worst in the nation for affordable housing for households making $24,600 a year or less.

No doubt, Big Tech is rolling in money. At $2 trillion, Apple is the world’s most valuable company. Facebook posted an $18.4 billion profit last year and Google made $10.7 billion.

But Orlando’s tourism manufacturers aren’t exactly struggling start-ups. Disney made $11.05 billion in 2019. Comcast, which owns Universal, had a $13 billion profit.

With that kind of cash on hand, couldn’t it have pledged more than a $9.5 million plot of land to show it means business when it comes to affordable housing?

To be fair, Universal’s revenues plunged 94% during the coronavirus shutdown. At least it didn’t use that an excuse to back out of its December commitment.

“The need for affordable housing in Central Florida is strong,” CEO John Sprouls said, “and our vision is clear.”

Well, not really. Not yet.

The 1,000-unit development isn’t a lot in the grand scheme of the crisis. The prospectus calls for developers to maintain “a diverse and affordable rent structure.”

The actual rent costs have not been determined. It is early in the process, but there are a couple of things Universal could do any time if it wanted to make its vision really clear.

It could lobby legislators to stop raiding the state’s Sadowski Fund of money meant for affordable housing. Better yet, Universal could tell local leaders the company supports diverting Tourist Development Tax funds to non-tourism needs.

You can almost hear the laughter coming from Comcast headquarters, but we shouldn’t be too critical. Universal has come up with a specific plan to address one of Central Florida’s most pressing problems. That’s more than its competitors can say.

It’s a laudable step in the right direction. But if Big Tourism really wants skeptics to stop rolling their eyes, it needs to look at Big Tech and realize how far it has to go.

Editorials are the opinion of the Orlando Sentinel Editorial Board and are written by one of its members or a designee. The editorial board consists of Opinion Editor Mike Lafferty, Jennifer A. Marcial Ocasio, Jay Reddick, David Whitley and Editor-in-Chief Julie Anderson. Send emails to insight@orlandosentinel.com