Field of Schemes new post Seattle arena hearing tonight; economists and councilmembers still have qualms

Big Seattle and King County joint council hearing on Chris Hansen's $500 million arena project today, and there's lots of last-minute analysis and jockeying:

• The Seattle Times talks to several sports economists, who note that sports arenas don't do much for your local economy: "The economic impact is approximately zero. All you're doing is recycling fans from one game to another," says the University of Chicago's Allen Sanderson. The Times also cites the University of Oregon's Dennis Howard as asserting that public contributions to sports arenas are on the decline — something not borne out by Judith Grant Long's research, which found that hidden tax subsidies to sports facilities are on the rise, though it's always possible that this has turned around while Long has been readying her long-awaited book manuscript.
• Seattle councilmember Richard Conlin says he's worried that the Hansen deal would set a bad precedent: "Every other business that comes to town, they establish an business, they pay those taxes, those taxes go into our general fund to support police and parks and fire and the other things that we do." It's a legitimate concern: Even if Seattle would be roughly breaking even on the deal, it would be giving up about $63 million in revenues that it would get if it told Hansen, "Go build it yourself, what makes you think you're so special, huh?" (Assuming Hansen would still build under those circumstances, which he insists he wouldn't.) Slippery slopes can be a big problem for development subsidies, so it would certainly behoove the council to work out a standard that doesn't require it to rebate sales and property taxes to everyone who comes along and says they want to put up a building — or for today, at least to ask Hansen why he deserves these rebates more than anyone else. (Preferably using the phrase, "What makes you think you're so special, huh?)
• Speaking of Hansen, he responded on his blog to my calculation that Seattle would more or less recoup its expenses on the arena plan by plugging my book. Now I feel dirty...

Tonight's hearing starts at 5:30 pm Pacific — public meetings held at a time the working public can actually attend, what an innovation! — and will be webcast here.

from Field of Schemes http://www.fieldofschemes.com/news/archives/2012/07/5019_seattle_arena_h_1.html