One of the sports arena projects still moving ahead despite the uncertain future of both sports and arenas is the minor-league hockey arena in Henderson, Nevada, which had $60 million in public bonds approved last month, though official approval of the project itself is still a ways off. So the Henderson city government is still hard at work justifying its expense, and yesterday they came up with a doozy:
City of Henderson says new arena would create 106% return on investment in first year
“The economic output of the Event Center will, directly and indirectly, enhance sales tax in the area, and the City will benefit from taxes related to construction of the new venue,” said Jim McIntosh, Chief Financial Officer…
The analysis outlined the City of Henderson would benefit $40.9 million over 20 years in projected savings and tax revenue.
In addition, the one-year return for the proposed center was projected at 106.57 percent based on the matching investment from the Vegas Golden Knights.
That is some impressive math salad! Spending $60 million in public money would create $40.9 million over 20 years in savings (on maintaining the amphitheater currently on the site) and new tax revenue, which would amount to a 106.75% return in one year! No need for 3 News Las Vegas to question that, or to provide a link to the actual report!
Coverage in the Las Vegas Review-Journal wasn’t much more illuminating, though it did provide two different uninstructive numbers: the arena would “generate a projected economic output of about $17 million to $26 million” (per year? does this account for any spending just siphoned off from other local businesses?) and “could sustain 89 to 122 jobs” (full-time equivalent or part-time?). And I can’t find anything on the City of Henderson website, or on the site of the analytics company that conducted the study, so your guess is as good as mine as to what it all means. Other than “People are griping about us spending $60 million in tax money on a private sports arena in the midst of a global pandemic, somebody come up with some numbers to throw at them, stat! No, I don’t care if they add up, you think journalists have time to find a calculator and check them? This isn’t 2010, people!”