Quote:
Originally Posted by rubecube
You're missing the point entirely. The city collects its funds from the business owners via property taxes, not income. Would the property values of those businesses increase with increased traffic from a new arena? Most likely yes. Will they increase enough to offset the funds being pumped into the stadium? Most of the recent data in other cities suggests no.
Another question is, even with the increased revenue, will those businesses be able to remain afloat if/when the city dramatically raises their property taxes to make up for the money spent on the arena?
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Actually, you are missing my broader point. I understand how the City collects its taxes, like all taxes its a rate times a base. You made the claim that concerts are good for the local economy but basically irrelevant to the city. I am looking beyond the simple A x B tax calculation and suggesting that the success of the Calgary economy does indeed benefit the city of Calgary. It just may not be as direct and convenient for you for the purposes of this argument. A better economy translates into more people moving to Calgary for starters....more homes being built, more businesses being started, etc. etc. A growing economy = a growing tax base.