KC Stadium TIF Thread

Discussion in 'MLS: News & Analysis' started by kopiteinkc, Nov 7, 2007.

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  1. szazzy

    szazzy Member

    Apr 18, 2004
    Kansas City, MO
    Re: TIF approval for KC Wizards moves forward

    Thanks for that. Hopefully you're not quite as useless in real life.
     
  2. rocker

    rocker New Member

    Dec 15, 2006
    Re: TIF approval for KC Wizards moves forward

    well, I can understand this reaction since academic evidence shows that sports stadiums do not provide economic value to a city. If "value" is something else, that's harder to quantify.

    As one article, which included a review of previous studies, concluded in the "Journal of Sports Economics" recently:

    "It is common for a city to use expensive incentives such as a state-of-the-art stadium or tax exemptions to induce a major professional sports team to relocate to or remain in its area... Municipalities compete fiercely for professional sports franchises, offering concessions and incentives in the hundreds of millions of dollars ... This competition continues despite strong economic evidence that a professional sport team does not have a positive impact on the local economy." ("An event study of the economic impact of professional sport", Lertwachara + Cochran, Journal of Sports Economics, Vol 8, No 3, June 2007)
     
  3. Dr. Foosball™

    Dr. Foosball™ New Member

    Dec 23, 2006
    Hot Springs, AR
    Club:
    FC Dallas
    Nat'l Team:
    United States
    Re: TIF approval for KC Wizards moves forward

    I really hope KC doesn't let this temporary move turn in to their own little Southlake debackle like Dallas had. From what I understand, Dallas still hasn't recovered fully from that year.
     
  4. szazzy

    szazzy Member

    Apr 18, 2004
    Kansas City, MO
    Re: TIF approval for KC Wizards moves forward


    I think the mindset of the fans is completely different. First and most important - leaving Arrowhead was not a choice, similar to Soldier Field/Naperville. Wizards fans are tired of the orange sea of Arrowhead. This is also not a high school, but a new professional stadium with grass, and the requisite amenities that people expect today. The surrounding businesses also already make this a popular destination.

    We go into this situation knowing it is temporary, and we have set upcoming deadlines to know if we'll be in a new stadium soon.
     
  5. cowtown

    cowtown Moderator
    Staff Member

    Dec 8, 2006
    Plano, TX
    Club:
    FC Dallas
    Nat'l Team:
    United States
    Re: TIF approval for KC Wizards moves forward

    I wasn't there for the Sucklake year either, but knowing what I do about that stadium and that area, KC's plan couldn't possibly be as bad. At least baseball stadiums only have two painted lines and no permanently painted endzones.

    [​IMG]
     
  6. triplet1

    triplet1 BigSoccer Supporter

    Jul 25, 2006
    Re: TIF approval for KC Wizards moves forward

    It's been a long haul, but Kansas City looks to be very close.

    Good luck.
     
  7. Stan Collins

    Stan Collins Member+

    Feb 26, 1999
    Silver Spring, MD
    Re: TIF approval for KC Wizards moves forward

    [​IMG]

    Let's not get into petty disputes here, this is the TIF thread!
     
  8. Stan Collins

    Stan Collins Member+

    Feb 26, 1999
    Silver Spring, MD
    Re: TIF approval for KC Wizards moves forward

    It's the most understandable of the three, but the reason I still labeled it a knee-jerk reaction is that people respond this way regardless of the details of the project, when the economic analyses quoted depend on a certain set of assumptions about the proposals--ones that, it turns out, seldom apply to MLS stadia.

    One is that the venue hosts few events other than the home team (and the home team can't bring in economic activity), another is that the public is funding the bulk of the project, another is a usually hidden assumption concerning the opportunity cost (that there's some other shining use for the land the stadium would wish to occupy).

    The last, and my favorite, of these I call the 10,000 foot fallacy. Economists ask whether a proposal creates economic activity, presumably in the Universe, or at best in the Metro area. But that's an improper unit of analysis, because it isn't 'the Universe' or 'the Metro Area' that's deciding, it's whatever governmental unit the funding is being requested of. And they do this not on the basis of creating overall economic activity, but creating profit in the form of new taxes, just like a firm trying to create new sales.

    The studies usually tell cities that they should not subsidize stadiums because they 'create no economic activity, just shift it around'--but this is like telling AT&T not to invest in it's mobile network because that would not 'create new mobile customers, just shift it between companies.' You can imagine AT&T's response to that would be something like. . ."Uh, that's the whole point, Chief!"
     
  9. JacksonJazz#9

    JacksonJazz#9 Member

    Dec 12, 2000
    Grand Ledge, Mich
    Club:
    Plymouth Argyle FC
    Nat'l Team:
    United States
    Re: TIF approval for KC Wizards moves forward

    when do tickets for the "Bay City Rollers" go on sale?

    "S A.... T U R.... D A Y.... Night"


    Sarcasm
     
  10. T-Bo

    T-Bo Member

    Feb 7, 2007
    Re: TIF approval for KC Wizards moves forward

    Stan, thanks for your post.

    I'd wanted to respond myself but didn't have the time.

    It just seems to me that nearly everything I've ever read about the economic benefit of new stadia suffered from the same assumptions that all but guarantee the conclusions.

    It's too bad people are sometimes afraid of drawing conclusions from anecdotal evidence. (Interestingly, business people rely almost exclusively on anecdotal evidence in formulating business plans, but that's for some other post.) In my area - suburban Maryland - I've seen the affect on downtown Baltimore of the construction of Camden Yards, how the Chinatown section of DC was revitalized by the construction of MCI, and the ongoing, and frankly amazing changes going on in Southeast DC around the nearly-completed Nationals ballpark.

    I also saw how building Capital Centre and FedEx Field in the suburbs of DC on the Capital Beltway had virtually no affect on that region of Prince Georges county. I can see how one might find that the latter examples average out the former, but I think one would have to have some kind of hidden agenda to do that in the face of such compelling examples.

    Just my 2 cents.

    T
     
  11. MJ-inBRITAIN

    MJ-inBRITAIN Member

    Feb 19, 2006
    Nottingham, UK
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    Re: TIF approval for KC Wizards moves forward

    Interesting, do you think that this was down to the effect of having "foot traffic" as opposed to car traffic? Foot traffic gets people into more shops/bars/cafe's etc? I don't know the area.... a bit worried here because i'm just thinking that KC is a massive car town. It's one of the biggest (4th I think) geographically spread out wise and public transport infrastructure is not very widely used or available.
     
  12. Stan Collins

    Stan Collins Member+

    Feb 26, 1999
    Silver Spring, MD
    Re: TIF approval for KC Wizards moves forward

    That part is true.

    Wanna know how to spot a non-credible economist?

    When you ask an economist a question, and he doesn't start the answer with "that depends. . ." you know you don't have a good one. :)
     
  13. MJ-inBRITAIN

    MJ-inBRITAIN Member

    Feb 19, 2006
    Nottingham, UK
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    Re: TIF approval for KC Wizards moves forward

    lol, or a liar!
     
  14. slashersfc

    slashersfc Member

    Sep 1, 2006
    Kansas City
    Club:
    Kansas City Wizards
    Nat'l Team:
    United States
    Re: 12/6/07: 60-90 Hours

    The city council finance committe is still making tweaks to the project before it goes before the mayor for vote.

    Also, the city council could overturn the mayors veto with 8 of 12 votes. Right now I think we would have enough to overturn it, IF the council members really want to go against the new mayor...
     
  15. Stan Collins

    Stan Collins Member+

    Feb 26, 1999
    Silver Spring, MD
    Re: 12/6/07: 60-90 Hours

    It works like a normal legislature/executive, yes? The Council votes, and then the Mayor has to decide on a veto? I was wondering because the size of the Council majority might affect the Mayor's vote. (Mayor might not want to risk the loss of political capital that comes with a veto override, for instance, or just might not want to be seen standing in the way of a large majority).
     
  16. CommonSense

    CommonSense Member

    Jul 12, 2006
    Portland
    Re: 12/6/07: 60-90 Hours

    move KC to St. Louis.

    It's just not going to happen in KC. They had a great team, still couldn't draw. Now they're playing a freaking baseball stadium with no end in sight. Give them a year, if they can't get a stadium deal done, move 'em to St. Louis. Not only does it give St. Louis a team, it allows MLS to expand into cities like Montreal or a second NYC team.
     
  17. Stan Collins

    Stan Collins Member+

    Feb 26, 1999
    Silver Spring, MD
    Re: 12/6/07: 60-90 Hours

    It's an owner's right to keep trying in a market until they're convinced it can't work. And KC's ownership structe (multi-headed and all local) makes it unlikely that they'll give up easily.

    If the current feasibility study is anything to go by, it will only take attendance of 13,000 a game in an SSS to hit the profit point, and that's not at all unrealistic if they can get a deal done.

    And nearly every stadium proposal involving any public funding at all (even the occasional one that doesn't, a la Vancouver) is going to have some struggles. If we gave up at the first sign of difficulty, we'd almost never get them done.
     
  18. The Blind Pig

    The Blind Pig Member

    Jul 14, 2005
    Section 8
    Re: 12/6/07: 60-90 Hours

    i think you mean to say that columbus would have folded or moved (yes, not public funding, but still)
     
  19. Goldenstick

    Goldenstick Member

    Jul 4, 2003
    Bridge City, Texas
    Club:
    Houston Dynamo
    Nat'l Team:
    United States
    Re: 12/6/07: 60-90 Hours

    KC sure is having a hard time getting a deal done. I thought for sure that the mayor would be behind a project like this. (taking an old mall and bringing in new development) Sounds like he has another plan for the money somewhere down the road
     
  20. Stan Collins

    Stan Collins Member+

    Feb 26, 1999
    Silver Spring, MD
    Re: 12/6/07: 60-90 Hours

    Could be. Whatever the reason, it looks like he decided to oppose the project late enough in the process as to be a challenge for proponents to react.
     
  21. noel R

    noel R Member

    Nov 20, 2007
    chicago
    Re: 12/6/07: 60-90 Hours

    I'am confused. Is govt. putting up any money. doesn't TIF mean that taxes generated by the project are credited towards the original investment. And don't cities offer these to any developers willing to invest in area the city has targeted, due to lack of tax base, due to being run down in the first place. This can turn out to be almost as bad as the Whitecap situation in Vancouver.
     
  22. cjgwizard

    cjgwizard Member

    Apr 25, 2006
    LSP, section 129
    Club:
    Sporting Kansas City
    Nat'l Team:
    United States
    Re: 12/6/07: 60-90 Hours

    Actually this project was leaping over hurdles with little obstruction until the mayor slammed on the brakes yesterday. The confusing part is that the city's TIF commission unanimously approved this project's financing last month, but now the mayor disapproves of the super-TIF portion. This mayor even reorganized the TIF requirements so that they are more stringent, and the project still was passed by the commission. Everybody who has been following this locally knows this area is extremely blighted....it's currently an abandoned shopping mall that is generating absolutely no money at all and there are no other options currently on the table for this area. If it goes to a city council vote and the mayor vetos it, the council can still override the veto. Currently, the council is all for it, so the next few weeks will be interesting.
     
  23. maturin

    maturin Member

    Jun 8, 2004
    Re: 12/6/07: 60-90 Hours

    The Kansas City area has been showing, through both its attendance and its politics, that it really is not a good market for our league. It is a shame, but even KC fans must realize by this point that there are more deserving markets out there. St. Louis or Philadelphia would each produce both a stadium and good crowds, and KC is clearly able to produce neither. Time for them to pack their bags.
     
  24. broder

    broder Member

    Jan 18, 2007
    Mission
    Club:
    Sporting Kansas City
    Nat'l Team:
    United States
    Re: 12/6/07: 60-90 Hours

    Thank you frenchy, I'll make sure to tell OnGoal that all there hard work is for nothing, since the team will never be a success. If only our stadium progress could be hassle free like Columbus, Chicago, and Salt Lake, and the relative ease of which DC and Houston are getting their stadiums built.
     

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