Posted on 12/25/2009 2:24:17 AM PST by reaganaut1
CINCINNATI — Years after a wave of construction brought publicly financed stadiums costing billions of dollars to cities across the country, taxpayers are once again being asked to reach into their pockets.
From New Jersey to Ohio to Arizona, the stadiums were sold as a key to redevelopment and as the only way to retain sports franchises. But the deals that were used to persuade taxpayers to finance their construction have in many cases backfired, the result of overly optimistic revenue assumptions and the recession.
Nowhere is the problem more acute than in Cincinnati. In 1996, voters in Hamilton County approved an increase of half of one percent in the sales tax that promised to build and maintain stadiums for the Bengals and the Reds, pay Cincinnati’s public schools and give homeowners an annual property tax rebate. The stadiums were supposed to spur development of the city’s dilapidated riverfront.
But sales tax receipts have fallen so fast in the last year that the county is now scrambling to bridge a $14 million deficit in its sales tax fund. The public schools, which deferred taking their share for years, want their money.
The teams have not volunteered to rewrite their leases. So in the coming weeks, the county plans to cut basic services, lower its legal bills and drain a bond reserve fund with no plan for paying it back.
“Anyone looking at this objectively knows it’s a train wreck,” said Dusty Rhodes, the county auditor. “I told them they were making a big mistake, but they didn’t want to hear me.”
Cincinnati is hardly alone. In Indianapolis, the Capital Improvement Board spent 2009 trying to find $32 million to run the Lucas Oil Stadium and convention center.
(Excerpt) Read more at nytimes.com ...
I’m not saying arenas can’t be built with private money. I’m questioning whether they can be the “draw” the restores downtown areas.
Depends on the city. So far, the Arena District has been a great success for downtown Columbus. 41 Blue Jackets home games, 70 Clippers games and other assorted events in the arena and the new ballpark. 15 years ago that site was the location of the old Ohio Pen; decrepit and certainly not generating any revenue, tax or otherwise.
Boy, do I miss Greg Lashutka.
In my town, now they are asking for 12 million for, among other things,an artificial turf football field. I’m writing a letter to the editor asking why they don’t ask for a retractable dome, and imploring my good neighbors to maintain their excellent voting record. My town, God bless em, votes no on everything. I love it.
So-called “convention centers” are even worse.
Every po-dunk town want’s a “convention center” ... like who is going to have a convention there anyway.
If it is proported to be a profitable venture, then a private developer/owner would do it.
These things almost never make money ... that’s why they rook taxpayers into paying (and paying and paying) for them.
Government should not be in the business of business
IMO, no. They destroy downtown areas.
They are too big and the parking requirements too great. Many cities’ downtowns have been destroyed by stadiums, convention centers, Olympic venues, etc.
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