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Originally Posted by Aarongavey
I assumed he was talking about loss leader in the sense that somewhere else the city recouped some money as a result of building an arena. If it is a loss leader in the sense that you just lose money and do not recoup anything then hotels and development have nothing to do with it. Not sure how else the City recoups money outside of tax revenue coming in from a different source.
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I don't necessarily agree with the loss leader positioning, but the building of hotels or other venue's around the arena is only one of many avenue's the city could re-coup money on a venture like this (not that they do).
It's all about how many incremental jobs both directly and indirectly, and there fore how much tax revenue they can collect, are created by a project such as this. Venue's and hotels popping up around an arena or stadium are definitely one way that could happen, but far from an exhaustive list of ways this could happen.