the real cost of stadium
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A Stadium in Fremont? A Stadium in Fremont? What Would it Really What Would it Really Cost?Cost?
Presented by Fremont Citizens Network
Updated: January 21, 2010
Stadium SitesStadium Sites2008:
◦Pacific Commons2009:
◦Warm Springs◦GrimmerxOsgoo
d2010:
◦Warm Springs◦GrimmerxFremo
nt
James Leitch Elem.1.5 mi*
Warm Springs Elem.2.0 mi*
Weibel Elem.0.6 mi*
Grimmer Elem.2.0 mi*
Hirsch Elem.Horner MiddleIrvington High
2.2 mi*
* Estimated distance
Threat to “Quality of Life” Threat to “Quality of Life”
Personal safety - Crime and vandalism
Decreased property values
Impact to schools
Increased traffic/commute time
Increased homeowners insurance
Parking
Perceived BenefitsPerceived Benefits
Economics ?Jobs ?
Put Fremont on the MAP ?
$EconomicsEconomics
A’s Claim
◦ Economic boost
◦ Increased sales-tax revenue to Fremont
◦ Job opportunities
Reality
ALL existing economic research says ballparks DON’T bring:
◦ New businesses
◦ New jobs
◦ Boost in spending (substitution effect)
Stanford University economist, Roger Noll:
“Taxpayers should view new stadiums as a consumption expense, NOT an investment that will produce more jobs and local business.”
* http://news-service.stanford.edu.pr/97/971218stadiums.html
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Comment from EconomistComment from Economist
University of Chicago economist, Allen Sanderson:
“If you want to inject money into the local economy, it would be better to drop it from a helicopter than to invest in a new stadium.
* Michael O’Keeffe and T.J. Quinn, “The house that you built: Owners, pols play games with billions of taxpayer dollars,” New York Daily News, October 12, 2002.
JobsJobsPer A’s
◦13,000 temporary construction jobs – “Ballpark Village”
◦Stadium alone 432 full-time A’s employees – average
salary $26,000 and not available
Part-time - seasonal, temporary, low-paying
No NEW full-time stadium jobs!
Cities in the RedCities in the RedStadium Location Cost ($M) Public Subsidy ($M) Year
US Celular Field Chicago $150 $150 1991
Oriole Park @ Camden Yards Baltimore $235 $226 1992
Jacobs Field Cleveland $173 $152 1994
The Ballpark @ Arlington Arlington $191 $153 1994Coors Field Denver $215 $161 1995
Chase Field Phoenix $355 $270 1998
Safeco Field Seattle $517 $393 1999Comerica Park Detroit $290 $145 2000
Minute Maid Park Houston $266 $180 2000
Miller Park Milwaukee $414 $324 2001
PNC Park Pittsburgh $233 $193 2001
Great American Ballpark Cincinnati $361 $300 2003
Citizens Bank Park Philadelphia $346 $173 2004
Petco Park San Diego $411 $288 2004Nationals Park Washington $611 $611 2008
Citi Field New York $850 $263 2009
New Yankee Stadium New York $1,300 $507 2009Target Field Minnesota $522 $428 In-Progress (2010)
Marlins Ballpark Miami $515 $360 In-Progress (2012)
Rays Ballpark Tampa $450 $297 In-Progress (2012)
* www.LeagueofFans.org** en.wikipedia.org
ExamplesExamples
Stadium Location Cost ($M) Public Subsidy ($M) Year
The Ballpark @ Arlington Arlington $191 $153 1994
Safeco Field Seattle $517 $393 1999
Petco Park San Diego $411 $288 2004
New Yankee Stadium New York $1,300 $507 2009
Costs to Costs to Taxpayer/ResidentsTaxpayer/ResidentsAT&T Park - privately funded, BUT received:
◦ $10M in tax abatement from City of SF
◦ $80M in infrastructure upgrades
◦ $1.5M for solar panels installed inside the park in 2007
ALL TAXPAYER MONEY!
If Fremont paid the $80 million,Cost per Fremont family = $1,600
* “AT&T Park” – en.wikipedia.org
** “Giants to put solar panels on AT&T Park” – sanfranciscogiants.mlb.com
Other “Hidden” CostsOther “Hidden” CostsLost business for local retail – sales tax
Increased police services & infrastructure
Building a new command center inside the ballpark to deal with Emergency Services
Lost opportunity costs
◦ Business development in lieu of stadium – e.g., SC study
◦ Housing development adjacent to the new BART station
Crime/VandalismCrime/Vandalism
0.5 mi radius
* www.crimereports.com
AT & T Park
Incident Type Number Disorderly Conducts 1,245 Alarm 936 Assault 678 Theft from Vehicle 296 Breaking & Entering 208 Theft 202 Weapons Offense 131 Theft of Vehicle 121 Robbery 53 Death 50 Assault w/ Deadly Weapon 35 Missing Person 32 Sexual Offense Related 21 Vehicle Recovery 16 Other 2,720
Total Number of Incidents = 6,744
2008 Data
Fremont Public SafetyFremont Public SafetyFremont has the smallest ratio of police
officers to residents for cities of similar sizeCity of Fremont 2008 budget: ~$130
millionPublic Safety: 68% of Fremont budget
(more than $88 million)
If our police can’t respond to alarm calls, how will they
manage all these additional crimes?
A’s Mitigation for Public A’s Mitigation for Public SafetySafetyA’s will provide private security
around stadium only on game days, and only at game times
A’s will provide $1 million to the City’s General Fund to cover ALL city costs
““Hidden” Costs: Public Hidden” Costs: Public SafetySafety Increased overhead
Investigation of incidents
More CHP patrols
Monitoring/compliance of noise and illumination at the stadium
Additional security for schools
A’s will NOT pay for these “hidden” costs!
YOU and I WILL!
TrafficTrafficHey, Kids!
We are going to win the race!
TrafficTraffic10,000 more cars @ the exact
same time, going to the exact same location
At least 45% of days (Apr-Sep)
Costs to General Fund:
◦Repair & maintain infrastructure
◦Investigation of accidents
◦Investigation of reported incidences
As Proposed by A’sAs Proposed by A’sNo property tax for the Stadium
“… The ballpark is assumed to have some form of underlying public ownership, and not be on the property tax rolls…”
Investment of this magnitude should generate $5 million in property tax ($175 million over 35 years)
Another way public funds are given away!
* A’s Benefit Analysis Report
WHO will Benefit?WHO will Benefit?Lew Wolff & Co. – new stadium raises value
of team
Lew Wolff & Co. - rezoned lots for 3,200 residential units
MORE than $2 BILLION!
Builders & contractors working for Wolff & Co.
City officials - who want to boast that they brought a professional stadium to a small city like Fremont.
In SummationIn SummationNo ECONOMIC benefitsNo new JOBSUntold risks to get on the MAP
Why take the risk?
What Can YOU Do?What Can YOU Do?1. Educate yourself –
FremontCitizensNetwork.org2. Send letters (to MLB, city council)3. Show up for protests4. Spread the word5. Volunteer
LET’S NOT BE THE NEXT CITY IN RED INK
"Never doubt that a small group of dedicated people can change the world because it is the only thing that ever has."
- Margaret Mead
QUESTIONS?QUESTIONS?
Does a Stadium Make Sense Does a Stadium Make Sense for Fremont?for Fremont?No real job creationDrain on City General FundReduced revenue“Hidden” costsTraffic congestion
The answer is “NO”!
HP Pavilion vs. Cisco FieldHP Pavilion vs. Cisco Field Incidents reported in 2008 within ½ mile radius of each site Traffic-related
◦ 1,072 incidents (HP Pavilion) ◦ 12 incidents (Cisco Field-WS) ◦ 49 incidents (Cisco Field-PC)
Disorderly conduct◦ 2,019 incidents (HP Pavilion) ◦ 26 incidents (Cisco Field-WS) ◦ 27 incidents (Cisco Field-PC)
Crime ◦ 2,000 incidents (HP Pavilion) – Jan-Feb only◦ 72 incidents (Cisco Field-WS)◦ 152 incidents (Cisco Field-PC)
* www. Crimereports.com
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