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Seattle City Council President Nick Licata spoke March
29 before a U.S. House of Representatives subcommittee
examining the impacts of taxpayer-financed stadiums, convention
centers, and hotels. Here’s an excerpt of his comments.
In 1995, I co-founded Citizens for More Important Things.
This group fought the use of taxes to construct three
stadiums for professional sports organizations over the
past dozen years. Since becoming a city councilmember
I have continued to be involved in this issue.
Efforts to secure public funding for these facilities
[follow] a pattern that has been repeated across the nation,
where perfectly usable facilities are declared too shabby
for the home team. If they are not replaced with a more
expensive facility, it’s adiós amigos to
the home fans.
Seattle rebuilt our Seattle Coliseum in 1995 to the specifications
of Seattle’s professional basketball team, the Supersonics,
creating the state-of-the-art NBA KeyArena at a cost of
$75 million in public money. The sale of luxury boxes
was to pay off the construction bonds. When the team could
not sell enough of them, the city had to pick up the tab.
Nine years later, after the city had paid millions annually
and with over half the public debt still outstanding,
the team said that the facility was outdated and it could
not be profitable unless the public invested over $200
million for a new facility. When they got the cold shoulder
from political leaders and the public, the Sonics were
sold for an estimated $80 million profit to a new owner,
who now wants the public to contribute more than $400
million for an even bigger facility, this time in a suburban
area.
In 1995, while the city was remodeling for the Supersonics,
our professional baseball team, the Mariners, declared
that their venue, the 18-year-old Kingdome, was obsolete
for baseball, and threatened to leave Seattle if they
were not provided with a new stadium with a retractable
roof, at a cost to the public of over $300 million. The
previous year the county had spent $73 million repairing
the Kingdome’s leaky roof. A few weeks after local
voters rejected a sales tax increase to pay for the new
stadium, the state legislature met in an emergency session
to approve a tax package that eventually built it.
The Seahawks, seeing how successful the Mariners were,
demanded significant remodeling of the Kingdome for football
in 1997, threatening to move if they did not get it. Before
they could move, Microsoft cofounder Paul Allen purchased
the team, subject to public approval of a $300 million
public funding package. He spent $7 million on the election,
outspending opposition 21 to 1, and won by approximately
0.2 percent. The Kingdome was then imploded, with about
$100 million in debt still unpaid.
What does this pattern reveal? Just what our city staff
discovered when reviewing the life of professional sport
facilities around the nation. When public money is used,
professional sport facilities are remodeled every six
years. Why? Because public money is readily available
and free to the teams. They have little reason to conserve
it.
If pending state legislation passes for the new Sonics
basketball arena and a speedway that NASCAR has requested,
our city, county, and state governments will have contributed
a breathtaking $2.3 billion over the past dozen years
for new professional sports venues.
This money could have gone to provide public benefits
or public facilities with a broader, more important use.
For instance, city admission taxes used to fund such services
as police and social services; there are county service
taxes which could go to hundreds of local community groups
to support economic development; and finally, there are
state retail sales taxes that normally fund education.
What about the benefits from these facilities? I’m
no economist, but what I have seen in Seattle, and in
other cities that I have visited in my capacity as a member
of the National League of Cities, has not revealed any
lasting advantage of subsidizing huge stadiums or arenas.
Overall there is meager evidence that new stadiums improve
urban living or increase retail shopping in their vicinity.
Our own experience shows that certain crimes increased
around the two new stadiums from what they had been previously
in that same neighborhood.
Municipalities need to provide more important pubic
services than building half-billion-dollar sports venues
whose primary purpose is not the enjoyment of sports
games but producing profits for team owners and huge
salaries for players. The federal government can stop
this trend by using its regulatory authority. I urge
you to do so.
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