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Harrison Square

Harrison Square It is time to temper our exuberance with careful contemplation… The baseball stadium CAN’T exist without the hotel The hotel CAN exist without a baseball stadium Of the following facts

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Harrison Square

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  1. Harrison Square It is time to temper our exuberance with careful contemplation…

  2. The baseball stadiumCAN’T existwithout the hotel The hotelCAN existwithout a baseball stadium Of the following facts • A new hotel is a stand alone project for which the city bought Belmont property years ago to support the Grand Wayne Center • And an ice-skating rink or soccer field or other aesthetically pleasing facility would provide the same benefits

  3. Public dollars + interest (does not include money for Hotel and Garage) $60-65 Million Stadium 60 Condos/retail 90 Parking spaces …Will They Come? Private (Hardball) dollars for The Project $19.5 Million $9.8 for 60 Condos $4.7 for Retail $5.0 for Stadium If we build it…

  4. And ask the following questions... • Is it the best way to use the taxpayers’ money? Whether it’s Property Tax or Income Tax, isn’t it all out of the tax-payer’s pocket? • Should public money be spent on NEW amenities, not duplicate those already serving the community? • Can’t we give our city “Room to Dream” by encouraging other ideas for this area?

  5. And the following ones… • Is baseball the BEST development? • Is existing stadium INADEQUATE? • Can Coliseum recoup LOSS from parking, concessions and lease payments? • Should condos be built on RIVERFRONT rather than around a ballpark? • MULTIPLE bidders for condos?

  6. And the following... • If it’s worth $60-65 million to entice the building of 60 condos and retail stores, should we bring development that complements something we don’t already have? • Should we put out proposals to other developers around the country to hear their ideas for ventures outside the hotel and garage? • If it’s worth doing, isn’t it worth doing right?

  7. TOTAL 42.14 M TOTAL 31.2 M TOTAL 30.26 M CEDIT 19.84 M CEDIT 12.62 M TOTAL 22.0 M TOTAL 21.20 M TOTAL 14.22 M JEFF. PTE. TIF 25.2 M JEFF. PTE. TIF 16 M CRED 11.25 M CRED 7.14 M HARRISON PTE. TIF 19.1 M HARRISON PTE. TIF 12.12 M Parks Bond 1.5 Parks Bond .95 Light Lease Fund: 1M Current Credit Bond 5 M JEFF. PTE. TIF, CASH ON HAND 6 M Cash Reserves 3.55 M BELMONT PURCHASE 2.1 M TOTAL FUNDS TOTAL FUNDS TOTAL FUNDS PRESENT VALUE PRESENT VALUE PRESENT VALUE Cash Reserves Cash Reserves CAN BE SPENT IN: DOWNTOWN CRED & ELSEWHERE 45% of TOTAL JEFFERSON POINTE TIF 33% of TOTAL HARRISON SQUARE TIF 22% of TOTAL Harrison Square: WHERE the MONEY COMES FROMandWHERE IT COULD BE SPENT 

  8. TOTAL 57.98 M INTEREST 4.12 M LAND & INFRASTRUCTURE 4.5 M CONDOS, RETAIL 4.16 M INTEREST 14.56 M LAND & INFRASTRUCTURE 4.74 M TOTAL 19.5 M 4.68 M RETAIL STADIUM 25.9 M 9.82 M CONDOS 5 M STADIUM CITY of FORT WAYNE HARDBALL, INC. Harrison Square: PHASE ONE COMMITMENTSonSTADIUM, CONDOS & RETAIL 

  9. TOTAL 45.2 M INTEREST 14.56 M LAND & INFRASTRUCTURE 4.74 M TOTAL 14.9 M TOTAL 14.9 M TOTAL 14.5 M STADIUM 25.9 M RETAIL 4.68 M CONDOS & RETAIL CONDOS 9.82 M STADIUM 5 M FORT WAYNE HARDBALL, INC. HARDBALL PHASE I HARDBALL PHASE II HARDBALL PHASE III STADIUM CONDOS & RETAIL Harrison Square: COST of STADIUMvs.COST of CONDOS & RETAIL 

  10. The Economics of Sports Facilities and their Communities

  11. “The Economics of Sports Facilities and their Communities” “Few fields of empirical research offer virtual unanimity of findings. Yet, independent work on the economic impact of stadiums and arenas has uniformly found that there is no statistically significant positive correlation between sports facility construction and economic development.” Baade and Dey, 1990; Baim, 1992; Rosentraub, 1994; Baade, 1996; Noll and Zimbalist, 1997; Waldron 1997; Coats and Humphreys, 1999. page 103 • John Siegfried and Andrew Zimbalist Journal of Economic Perspectives, Vol. 14, No. 3, Summer 2000, pages 95-114.

  12. “The Economics of Sports Facilities and their Communities” • However, even if we assume, optimistically, that on average people spend as much outside the sports facility as they do inside, the economic impact of sports teams in proportion to a typical metropolitan economy is diminutive.” page 104 • Ibid

  13. AREA RETAILERS AREA RETAILERS AREA RETAILERS Claim and reality THE CLAIM • Existing facilities are “inadequate” • A new stadium would facilitate efforts to redevelop an urban core BUT... no inducement for independent retailers to invest in adjacent businesses

  14. “The Economics of Sports Facilities and their Communities” CORE DEVELOPMENT • “Neither a football stadium hosting ten games annually, nor a baseball stadium park with 81 games, is likely to induce many rational independent retailers to invest in adjacent businesses.” page 109 • Ibid

  15. “Professional Sports as Catalysts for Metropolitan Economic Development” ABSTRACT • “The primary beneficiaries of subsidies are the owners and players, not the taxpaying public.”page one • “These results suggest that professional sports have been oversold by professional sports boosters as a catalyst for economic development.”page 16 • Robert A. Baade (1996) Journal of Urban Affairs, Vol. 18, No. 1, pgs. 1-17

  16. “The Economics of Sports Facilities and their Communities” KEY REASONS • Apart from their relatively small size, there are three key reasons why professional sports teams do not promote economic development: the substitution effect;extensive leakages; and the likely negative effect on local government budgets.” page 115 • John Siegfried and Andrew Zimbalist Journal of Economic Perspectives, Vol. 14, No. 3, Summer 2000, pages 95-114.

  17. “The Economics of Sports Facilities and their Communities” Three key reasons why professional sports teams do not promote economic development Substitution effect Extensive leakages Negative effect on local government budgets John Siegfried and Andrew Zimbalist Journal of Economic Perspectives, Vol. 14, No. 3, Summer 2000, pages 95-114.

  18. “The Economics of Sports Facilities and their Communities” • “…the stadiums built more than a decade ago do not include the luxury boxes, club seats, catering facilities and advertising opportunities that generate cash flow from high income fans. In other words, although the existing facilities are not physically obsolete, they are economically obsolete.” page 98 • Ibid

  19. “Professional Sports as Catalysts for Metropolitan Economic Development” • “…the new genre of stadiums is economically ambitious in ways that frustrate rather than encourage neighborhood economic development .” page 3 • Robert A, Baade (1996) Journal of Urban Affairs, Vol. 18, No. 1, pgs. 1-17

  20. “Cities Back from the Edge, New life for Downtown” • “To think that stadiums can provide a salvation or even a mild assist to the ills of downtown is pure folly…”page 318 • Robert Brandes Gratz with Norman Mintz. Preservation Press, 1998

  21. “THE RISE OF THE CREATIVE CLASS…and how it’s transforming work, leisure, community and everyday life.” “Not once during any focus groups and interviews did any member of Creative Class mention professional sports as playing a role of any sort in their choice of where to live and work.page 303 • Richard Florida. Basic Books, a member of the Perseus Books Group, New York. 2002.

  22. “THE RISE OF THE CREATIVE CLASS…andhowit’s transforming work, leisure, community and everyday life.” • “…professional sports stadiums.The ostensible economic goal of these facilities is one to which they are sublimely irrelevant. The most recent studies show that stadiums do not generate economic wealth and actually reduce local income.And ponder, for a moment, the opportunity costs of these facilities. Imagine what could be accomplished if the hundreds of millions of dollars were spent on university research or other things that actually generate economic wealth—or even on more fine-grained neighborhood improvements and lifestyle amenities that attract and retain talented people.” Page 303 • Richard Florida. Basic Books, a member of the Perseus Books Group, New York. 2002.

  23. 67% is Public Spending “More than $21.7 Billion will be spent on these 95 stadiums and arenas built or planned since 1990. Public coffers will contribute close to two-thirds of this amount.”“The Economics of Sports Facilities and their Communities”, John Siegfried and Andrew Zimbalist Journal of Economic Perspectives Vol. 14, No. 3, Summer 2000, pages 95-114

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