Quote:
Originally Posted by Robbob
From the Summary portion of the report you linked:
"If the stadium or arena has effects on the local economy, one might think that those effects would appear most obviously in the vicinity of the facility. Proponents of stadium and arena led growth typically contend that restaurants, bars, and hotels in the area will expand their business as fans patronize the establishments before and after the game. If this argument is correct, then property values and rents should rise as the present value of the new stream of profits is capitalized into property values. On the other hand, property values may fall as the presence of rowdy, drunken fans in the neighborhood makes it a less pleasant place to live or operate a business. The results suggest that property values are slightly higher in the first ring, with a diameter of a half mile."
Is that not area exactly in the CRL area? I would think that it shows the area will be beneficial to that area because it is confined to just the west village area (guessing maybe 2km^2).
I think the study goes more to dissuade or poo poo areas like Detroit where they think the area will raise property value and bring jobs. In this case you are just talking about a smaller area all within that first ring where there was a positive from the arena. I may be reading it wrong, but that is how I interpreted it.
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Which is fine. I am not claiming that there won't be development, I am just stating that the amount of development is grossly overstated by developers in programs like this. This, in turn means that less tax revenue would be generated.
The fact is that 250 million is a ton of money to raise given the small size of the area, impacted by the fact that a large portion of that small area will be a net zero for the cities tax coffers.
Also add in the fact that the development in the WV will take away development opportunities in other areas of the city. An arena won't increase the population, or the spending habits of the people here (people still spend the same money, will just spend on different things/different areas) so the city is ultimately spending 250 million of its own money that it could have gotten from a different area of the city to finance a new arena (not counting any changes in WV that will need to be done).
Just some more sources from an empirical study:
http://econjwatch.org/articles/do-ec...nd-mega-events