Reply to Wizards and Caps could be moving to Potomac Yard

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Alexandrian who can literally see the arena site from my TV room, who loves the Target, and who fully supports the arena in PY.  It is a great deal for the City. [/quote]

Interesting because every sports economist who has looked at this deal has said its absolutely terrible for the city. Talked to Roger Noll at Stanford last night, who got the JP Morgan report dog and pony show earlier on who said the financials have vastly overestimated the number of events they'll host by 30 or more events per year, which dramatically impacts revenue projections. They all have a problem with the IMPLAN model the City's non-economist consultants used. Apparently true economists no longer use this model and its primarily used by folks looking to push projects as its notorious for over estimating the economic impacts. There is a complete loss of property taxes from the deal...so $300-$400 million that Ted doesn't have to pay since it will be a publicly-owned complex. The useful life of arenas is also generally considered to be 20-25 years. This deal is for financing of 35 years. So we get the privilege of paying for the arena after its no longer considered serviceable. Roger also told us that no matter what level you look at these deals, even down to the neighborhood level, you cannot make a case for a public subsidy over 10-15%. They just do not move the economic needle. Every bit of the money they bring is just taking is from somewhere else and they don't drive enough business to justify the cost. Roger said an arena like this has the same economic impact on a community as a Macys or a WalMart. Not sure we need to be taking on $1.4 billion of debt and other public moneys to pay for a WalMart. [/quote]

This is really helpful. I hope the Alexandria and Del Ray neighbors take note, because THEY are the taxpayers who will be on this hook for this, not Virginians, not Washingtonians nor Marylanders.[/quote]

Oh I am sure the state will be kicking in some funds for infrastructure etc, they should also get some fed Highway dollars for other road, transpotation improvements.[/quote]

Why? This is self-inflicted.  And why should billionaire sports team owners get a free ride?[/quote]

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