Quote Originally Posted by emu steve View Post
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?
It is a tax capture and the same deal Mr Gilbert is getting albeit his was 50% of and I am not sure of what the percentage is for the stadiums but tax capture does not effect the school budget it effects the city's general budget because all of the tax revenues Or in the case of the 50% collected from whoever.

In short for the next 30 years even if 10,000 people move in next to the stadium the cities general budget does not see a dime,or until the 440 million is paid for.

But the city still needs to come up with infrastructure repairs,improvements etc.

It creates tax dead zones and is based of future speculation and if all that buildout does not occur then the residents have to come up with the funds from somewhere else.

You want them to sign a 30 year note and cannot even let them preserve a little bit of thier past history?