Quote:
Originally Posted by tkflames
If all of the below expressed in today's dollars is a value greater than 0 then the city is better off then it would have been had it not invested.
$82M from parking revenue
+$231M from net increase in taxes in the area over X years
+ profit generated from 28 public days per year
-delta loss from not operating Rexal
-delta rent of city office space from before vs now
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I'm not sure I follow your numbers:
- If they can't reach the expected parking revenues annually, they need to pay for the loan another way. The article mentioned using more CRL dollars, which means less money for other developments, and more long term infrastructure debt.
- For the next 20 years, they won't receive any tax dollars from the district.
- The agreement states that the 28 public days are for community events, and not commercial purposes. They won't be making any money on them.
Overall, you can argue that they would have wanted an arena district there all along and this got a somewhat useful bump from Katz. But, could they have developed the area themselves, without chaining themselves to Katz and competing against his own developments in the same space? They aren't doing themselves any favours right now. The city pays for the development now, the fans pay more for tickets now, on the hopes that in 20 years they start reaping the benefits. Would they have generated more value now by developing it themselves?