The city of Virginia Beach could release information today on how much infrastructure costs would be for a proposed $200 million arena, according to an article in today’s Virginian-Pilot. More on that tomorrow, then; in the meantime, here’s how the Virginian-Pilot again completely screwed up its reporting on Virginia Beach’s two arena proposals:
The council voted in May to begin negotiating with USM instead of rival development group W.M. Jordan, which included politically influential developer Bruce Thompson. Those negotiations are continuing, and the city won’t release cost estimates.
The Virginian-Pilot obtained both proposals in February and reported that each arena would cost about $200 million. The key difference is that W.M. Jordan wanted taxpayers to pick up nearly all of the costs, while USM said it would obtain private financing.
Oy gevalt. No, no, that’s not the key difference at all. As was discussed back in May, the W.M. Jordan plan would have provided $10.5 million a year in public money to pay off arena bonds, whereas the USM plan is set to provide $7 million a year in tax kickbacks so that the developer can pay off arena bonds. Which is indeed better — 7 is less than 10.5, last I checked — but is not at all the difference between “taxpayers picking up nearly all of the costs” and “private financing.”
Anyway, the Virginia Beach city council is set to receive a consultant’s report today on infrastructure costs, so we should learn more about the city’s total outlay then. Though if USM is smart, it will offer to pay for the infrastructure costs now, and have the city repay them later, since apparently no one in the local media is clever enough to see through such advanced accounting tricks.