An Orlando article today has an hint on where the arena will locate,
Why would Orlando pay $600,000 for this house?
The city plans to spend $6.8 million on this and 4 other parcels in Parramore.
Mark Schlueb {sodEmoji.|} Sentinel Staff Writer
Posted July 26, 2006
....."Another possibility would put the land at the center of Dyer's push for new downtown venues. Some city officials, including Commissioner Daisy Lynum -- who represents Parramore -- want a new National Basketball Association arena built at the corner of West Church Street and Hughey Avenue."....
http://www.orlandosentinel.com/news/local/...-home-headlines
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I think this location make sense since there are a lot of empty land there with many houses with no historical value. And the arena can feed off the existing entertainment from 55 West, PTP. and it is closer to the bar too. A streetcar can also be built to join the PAC going thru Churh Street to the stadium, this will eliminating building many garages for parking. They can all use the same garage.