Originally Posted by
emu steve
I wonder about the 'Tax capture' vs Mass transit [[or something else).
In the thread of QLine, Professor Scott verified that NO general fund dollars are going to build, operate, etc. the QLine. Ms. Smith, first grade teacher, isn't buying her students books using her money as school dollars were diverted to the QLine.
The NEXT QUESTION:
Are general fund monies going to support building of LCA? Fair question.
Let's assume the arena cost DDA 600M over 30 years, principal and interest, much like a 30-year mortgage on a house.
Where is the 20M annual payment going to come from?
1). There could be as many as 3M annual ticketed patrons to LCA [[150 dates x 20K per event). If there is a 'ticket surcharge' [[think this is common). The Wings/Pistons could combine for more than 1.5M patrons annually. 90 - 100 events x say 17,500 = say 1.6M. Take 2.5 - 3M patrons and multiple by say $3 per tix and we are easily talking roughly 8 - 9M dollars annually.
2). I believe I read the city expects to collect over 4M annually in non-resident income taxes for events which are now at LCA instead of the Palace. Steph Curry will have to pay non-resident inc tax for the game[[s) he plays at LCA. Visiting NHL players had to pay in the past and future. Nothing changed there.
3). And there is the TIF bit where business in the development area have agreed to pay extra taxes. Those monies will be paid by GM, Gilbert, Ilitches, and any other property owners with the DDA district.
The idea is that these multiple revenue streams pay off the bonds.
Quite frankly these are questions for the Mayor's office.
They would know what the real story is and what is Internet poppycock.
They can answer this question: Are revenue sources from ticket surcharges, non-resident performer taxes for LCA events, TIF revenues, other incomes directly related to events at LCA [[rental payments paid by the Olympia enterprise), etc. sufficient to pay off the annual debt service on the bonds?