Soccer economics

Published: Thursday, Oct. 13, 2005 10:12 p.m. MDT
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This week's news conference to announce a new soccer stadium in Sandy failed to answer a key question: How much public money will be involved, and in what form?

That's more than just a messy little detail to be worked out later. Virtually every party to this project seemed to be reassured during the announcement, except taxpayers. And their contribution isn't likely to be minor.

Despite the party line, an enterprise zone or some other tax scheme won't create zero burden on the taxpaying public. Unless someone has discovered a tree that grows dollar bills, the money used for construction has to come from somewhere. Even tourism taxes exact a cost, if only that some people would be less likely to visit or bring their conventions here.

And while everyone from the governor down was happily extolling the stadium's economic development advantages (which, if realized, would defy several scholarly studies into the effects of many other such projects), few people seemed eager to confront the bait-and-switch tactics that allowed Sandy to put the deal together in the first place.

Last year, state lawmakers gave Salt Lake County the authority to bond for $80 million to add improvements to its convention facilities in Salt Lake City and Sandy. About $20 million of that was specifically supposed to build a covered parking garage at the South Towne Expo Center in Sandy. This was to be near the center, itself, so that people wouldn't have to risk their health by crossing a busy street.

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But the soccer deal, which has the blessing of House Speaker Greg Curtis, also a Sandy resident, would instead use that money to buy land for the stadium and attach a garage to it — across the street from the convention center. Rather than make soccer fans walk across the street 15 or so times a year, this would force patrons of the Expo Center to cross the street for events that are held virtually every week.

It's also hardly a minor side-note to point out that Salt Lake City is on the hook for $8 million of the $20 million garage bond, which forces the city to help pay for a stadium in Sandy. Salt Lake City, you may recall, was competing with Sandy for the right to house the stadium.

These aspects are troubling enough, but they don't begin to explain the full picture of taxpayer involvement.

When it comes to these types of projects, public officials either lack economic sense or hope their constituents do. In this case, there are promises that the stadium project will include retail, housing and restaurants. Of course, the stadium won't suddenly create new demand for shopping and eating, any more than it would put fresh $100 bills in each resident's pockets. Like all other retail centers built through incentives, it simply would attract shoppers who otherwise would shop elsewhere.

That's bad news for neighboring cities and their tax base.

The sooner taxpayers get details on the full extent of their involvement in this project, the better.

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