Real Cost Of Stadium


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A Stadium in Fremont? What Would it Really Cost? Presented by Fremont Citizens Network

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Real Cost Of Stadium

  1. 1. A Stadium in Fremont? What Would it Really Cost? Presented by Fremont Citizens Network Updated: January 21, 2010
  2. 2. Stadium Sites <ul><li>2008: </li></ul><ul><ul><li>Pacific Commons </li></ul></ul><ul><li>2009: </li></ul><ul><ul><li>Warm Springs </li></ul></ul><ul><ul><li>GrimmerxOsgood </li></ul></ul><ul><li>2010: </li></ul><ul><ul><li>Warm Springs </li></ul></ul><ul><ul><li>GrimmerxFremont </li></ul></ul>* Estimated distance 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 Middle Irvington High 2.2 mi*
  3. 3. Threat to “Quality of Life” <ul><li>Personal safety - Crime and vandalism </li></ul><ul><li>Decreased property values </li></ul><ul><li>Impact to schools </li></ul><ul><li>Increased traffic/commute time </li></ul><ul><li>Increased homeowners insurance </li></ul><ul><li>Parking </li></ul>
  4. 4. Perceived Benefits <ul><li>Economics ? </li></ul><ul><li>Jobs ? </li></ul><ul><li>Put Fremont on the MAP ? </li></ul>
  5. 5. Economics <ul><li>A’s Claim </li></ul><ul><ul><li>Economic boost </li></ul></ul><ul><ul><li>Increased sales-tax revenue to Fremont </li></ul></ul><ul><ul><li>Job opportunities </li></ul></ul><ul><li>Reality </li></ul><ul><li>ALL existing economic research says ballparks DON’T bring: </li></ul><ul><ul><li>New businesses </li></ul></ul><ul><ul><li>New jobs </li></ul></ul><ul><ul><li>Boost in spending (substitution effect) </li></ul></ul>$ 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.” * $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
  6. 6. Comment from Economist <ul><li>University of Chicago economist, Allen Sanderson: </li></ul><ul><li>“ 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. </li></ul><ul><li>* 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. </li></ul>
  7. 7. Jobs <ul><li>Per A’s </li></ul><ul><ul><li>13,000 temporary construction jobs – “Ballpark Village” </li></ul></ul><ul><ul><li>Stadium alone </li></ul></ul><ul><ul><ul><li>432 full-time A’s employees – average salary $26,000 and not available </li></ul></ul></ul><ul><ul><ul><li>Part-time - seasonal, temporary, low-paying </li></ul></ul></ul><ul><li>No NEW full-time stadium jobs! </li></ul>
  8. 8. Cities in the Red * ** Stadium Location Cost ($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 1994 Coors Field Denver $215 $161 1995 Chase Field Phoenix $355 $270 1998 Safeco Field Seattle $517 $393 1999 Comerica 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 2004 Nationals Park Washington $611 $611 2008 Citi Field New York $850 $263 2009 New Yankee Stadium New York $1,300 $507 2009 Target Field Minnesota $522 $428 In-Progress (2010) Marlins Ballpark Miami $515 $360 In-Progress (2012) Rays Ballpark Tampa $450 $297 In-Progress (2012)
  9. 9. Examples Stadium Location Cost ($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
  10. 10. Costs to Taxpayer/Residents <ul><li>AT&T Park - privately funded , BUT received: </li></ul><ul><ul><li>$10M in tax abatement from City of SF </li></ul></ul><ul><ul><li>$80M in infrastructure upgrades </li></ul></ul><ul><ul><li>$1.5M for solar panels installed inside the park in 2007 </li></ul></ul><ul><ul><li>ALL TAXPAYER MONEY! </li></ul></ul><ul><li>If Fremont paid the $80 million, </li></ul><ul><li>Cost per Fremont family = $1,600 </li></ul><ul><li>* “AT&T Park” – </li></ul><ul><li>** “Giants to put solar panels on AT&T Park” – </li></ul>
  11. 11. Other “Hidden” Costs <ul><li>Lost business for local retail – sales tax </li></ul><ul><li>Increased police services & infrastructure </li></ul><ul><li>Building a new command center inside the ballpark to deal with Emergency Services </li></ul><ul><li>Lost opportunity costs </li></ul><ul><ul><li>Business development in lieu of stadium – e.g., SC study </li></ul></ul><ul><ul><li>Housing development adjacent to the new BART station </li></ul></ul>
  12. 12. Crime/Vandalism * AT & T Park Total Number of Incidents = 6,744 2008 Data 0.5 mi radius 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
  13. 13. Fremont Public Safety <ul><li>Fremont has the smallest ratio of police officers to residents for cities of similar size </li></ul><ul><li>City of Fremont 2008 budget: ~$130 million </li></ul><ul><li>Public Safety: 68% of Fremont budget (more than $88 million) </li></ul><ul><ul><li>If our police can’t respond to alarm calls, how will they manage all these additional crimes? </li></ul></ul>
  14. 14. A’s Mitigation for Public Safety <ul><li>A’s will provide private security around stadium only on game days , and only at game times </li></ul><ul><li>A’s will provide $1 million to the City’s General Fund to cover ALL city costs </li></ul>
  15. 15. “ Hidden” Costs: Public Safety <ul><li>Increased overhead </li></ul><ul><li>Investigation of incidents </li></ul><ul><li>More CHP patrols </li></ul><ul><li>Monitoring/compliance of noise and illumination at the stadium </li></ul><ul><li>Additional security for schools </li></ul><ul><li>A’s will NOT pay for these “hidden” costs! </li></ul><ul><li>YOU and I WILL! </li></ul>
  16. 16. Traffic Hey, Kids! We are going to win the race!
  17. 17. Traffic <ul><li>10,000 more cars @ the exact same time, going to the exact same location </li></ul><ul><li>At least 45% of days (Apr-Sep) </li></ul><ul><li>Costs to General Fund: </li></ul><ul><ul><li>Repair & maintain infrastructure </li></ul></ul><ul><ul><li>Investigation of accidents </li></ul></ul><ul><ul><li>Investigation of reported incidences </li></ul></ul>
  18. 18. As Proposed by A’s <ul><li>No property tax for the Stadium </li></ul><ul><li>“… The ballpark is assumed to have some form of underlying public ownership, and not be on the property tax rolls …” </li></ul><ul><li>Investment of this magnitude should generate $5 million in property tax ($175 million over 35 years) </li></ul><ul><li>Another way public funds are given away! </li></ul>* A’s Benefit Analysis Report
  19. 19. WHO will Benefit? <ul><li>Lew Wolff & Co. – new stadium raises value of team </li></ul><ul><li>Lew Wolff & Co. - rezoned lots for 3,200 residential units </li></ul><ul><li>MORE than $2 BILLION! </li></ul><ul><li>Builders & contractors working for Wolff & Co. </li></ul><ul><li>City officials - who want to boast that they brought a professional stadium to a small city like Fremont. </li></ul>
  20. 20. In Summation <ul><li>No ECONOMIC benefits </li></ul><ul><li>No new JOBS </li></ul><ul><li>Untold risks to get on the MAP </li></ul><ul><li>Why take the risk? </li></ul>
  21. 21. What Can YOU Do? <ul><li>Educate yourself – </li></ul><ul><li>Send letters (to MLB, city council) </li></ul><ul><li>Show up for protests </li></ul><ul><li>Spread the word </li></ul><ul><li>Volunteer </li></ul><ul><ul><li>LET’S NOT BE THE NEXT CITY IN RED INK </li></ul></ul>
  22. 22. <ul><li>&quot; Never doubt that a small group of dedicated people can change the world because it is the only thing that ever has .&quot; </li></ul><ul><li>- Margaret Mead </li></ul>
  23. 23. QUESTIONS?
  24. 24. Does a Stadium Make Sense for Fremont? <ul><li>No real job creation </li></ul><ul><li>Drain on City General Fund </li></ul><ul><li>Reduced revenue </li></ul><ul><li>“ Hidden” costs </li></ul><ul><li>Traffic congestion </li></ul><ul><li>The answer is “ NO ”! </li></ul>
  25. 25. HP Pavilion vs. Cisco Field <ul><li>Incidents reported in 2008 within ½ mile radius of each site </li></ul><ul><li>Traffic-related </li></ul><ul><ul><li>1,072 incidents (HP Pavilion) </li></ul></ul><ul><ul><li>12 incidents (Cisco Field-WS) </li></ul></ul><ul><ul><li>49 incidents (Cisco Field-PC) </li></ul></ul><ul><li>Disorderly conduct </li></ul><ul><ul><li>2,019 incidents (HP Pavilion) </li></ul></ul><ul><ul><li>26 incidents (Cisco Field-WS) </li></ul></ul><ul><ul><li>27 incidents (Cisco Field-PC) </li></ul></ul><ul><li>Crime </li></ul><ul><ul><li>2,000 incidents (HP Pavilion) – Jan-Feb only </li></ul></ul><ul><ul><li>72 incidents (Cisco Field-WS) </li></ul></ul><ul><ul><li>152 incidents (Cisco Field-PC) </li></ul></ul><ul><li>* www. </li></ul>