Gary,
Could you please show us all where Mr. Ostrow states that a public investment would come from Minneapolis? And in response to your question for why the public would get involved in such a "loser" deal like a ballpark, it's because public financing can do many things cheaper than can be done by private financing. For example, if a ballpark along the lines of what the Minneapolis C-17 group were constructed, a public contribution of $100 million would be assumed. If the State (not City of Minneapolis, but State) were to issue bonds for this public investment, then doing so would allow the project to take advantage of lower interest rates that the State has access to and the private sector does not. I spoke with a colleague who's worked on a number of public financing projects and percentage-wise, the difference is not huge, maybe 1/8 (or 0.125) of a percentage point. However, when you look at numbers like $100 million, that little 1/8 means a lot. Assuming bonds were issued for 30 years, it would be a savings of about $400,000 annually in interest payments, or $12 million overall for the project. That's why public financing is desired, not because stadium financing such a "bad deal" that business owners are "too smart" to get involved in it. It's because the State has a great credit rating that lets it get investment rates that nobody else can. When you also look at the fact that the State of Minnesota's annual budget is $27 BILLION (not million, BILLION), you notice that $100 million is about 1/3 of one-percent of the state's annual budget. You also should consider that this investment would be spread out over the number of years for which the bonds are issued, making it an even smaller hit. Now throw in that the bonds would be paid back by game-day parking surcharges, ticket surcharges and/or taxes on concessions, meaning that unless you're a baseball fan who goes to watch a game, the cost to you is absolutely nada, zippo, zilch! On the plus side, however, that investment has more immediate payoffs: It creates jobs, which are sorely needed for tens of thousands of folks who have been laid off in recent months. It keeps jobs for people employed by the Twins and the hospitality industry (hotels, bars, restaurants, etc.) that has already taken a big hit from 9/11 and would take a further hit if the Twins are contracted. It creates incomes for people who get those newly-created jobs or who get to keep the ones they have, meaning they'll pay income taxes, rather than collect unemployment benefits and/or public assistance. They'll also spend money and pay sales taxes. If I recall correctly, Gary, you work as a hotel manager, so you might well be one of the folks whose job gets saved by doing the hospitality industry a favor. So as you see, Gary, there's a lot more involved than just building a ballpark to house a billionaire's team. There are a whole lot of REAL people who can benefit considerably from this investment, not to mention folks like me who just want to keep being able to go watch their Minnesota Twins. In addition, financing a public contribution through a bond issue means you get the money for doing the construction, land purchase and all the rest up front, without requiring the full costs of these coming due immediately - just like if you or I take out a mortgage or a home equity loan for whatever reason we might need to. It doesn't have that large of an impact on keeping up with our other responsibilities and in some cases can make it easier - take a look at how much more vibrant things are in the Warehouse District since Target Center was built and think of all the sales, property and income taxes that has produced for other Minneapolis or state projects. Do you really think that would have happened on its own? Do you really think that all the 1.8 million folks who went to a Twins game last season would have come to downtown Minneapolis for a play or a movie? I can share my experience as a Timberwolves season ticket holder - right now, I'm going downtown 2-3 times a week, meaning in addition to my paying for a game ticket, I'm also paying for parking, for whatever food I get before, during or after the game, plus whatever else I might stick around for after the game like hitting First Avenue or one of the nearby brew pubs, though that's usually only on weekends. If not for the Wolves, I probably might go downtown once a month at most during the winter. I would personally like to commend Paul Ostrow for not burying his head in the sand. Real leadership is shown when a politician recognizes the broader impacts of a controversial issue like stadium financing and shows the courage to work towards a fair solution instead of hiding behind the "no ballparks for billionaires" rhetoric spouted by those who are unwilling or unable to see the bigger picture. Mark Snyder Ward 1/Windom Park [EMAIL PROTECTED] _______________________________________ Minneapolis Issues Forum - A Civil City Civic Discussion - Mn E-Democracy Post messages to: [EMAIL PROTECTED] Subscribe, Unsubscribe, Digest option, and more: http://e-democracy.org/mpls
