Friday update: Bad D.C. arena math, bad Bucks arena math, bad Columbus ticket tax math

It must be September, because my TV is filled with Jim Cantore and Anderson Cooper standing ankle-deep in water. But anyway:

  • Washington, D.C., is about to open its new Mystics home arena and Wizards practice facility, and Mayor Muriel Bowser says it’s a model of how the city would build a new NFL stadium as well. “We know [sports] can help our bottom line by attracting people to our city, but it also has a big impact when we’re winning on our collective psyche,” says Bowser of an arena that got $50 million in public subsidies for two teams that were already playing in D.C. anyway. Maybe she should go back to using her terrible soccer stadium deal as a model instead.
  • People in Calgary are starting to ask whether, if the city is looking to spend $3 billion on hosting the 2026 Olympics, maybe it should build a new Flames arena as part of the deal? Camels, man.
  • Buffalo Bills co-owner Kim Pegula says she’s going to wait until after the gubernatorial elections this November to start negotiating a new stadium with whoever ends up in charge of the state. It won’t be the lox-and-raisin-bagel lady.
  • Speaking of the Pegulas and New York’s current governor, they’re planning an $18 million upgrade of Rochester’s arena that hosts the Rochester Americans minor-league hockey team (which the Pegulas also own), with costs to be split among the owners and city and state taxpayers. Split how? Sorry, no room in the Associated Press article, ask again later!
  • The AP did find time to fact-check Wisconsin Gov. Scott Walker’s claim that the new Milwaukee Bucks arena would return three dollars in new taxes for each one spent, and found that “Walker omits some of the state money spent on the 20-year arena deal and relies on income tax estimates that experts call unreliable.” I could’ve told them that — in fact, I did, three years ago.
  • “‘Ticket tax’ proposal could lead to higher prices on movies, theater, sports in Columbus” reads a headline on ‘s website, something that the station’s reporter asserts in the accompanying video without saying where he got it from. He’s at least partly wrong: Ticket prices are already set as high as the market will bear, so unless the ticket tax changes the market — in other words, unless people in Columbus are forced to spend more on movies and theater and such because the other options (staying at home and watching TV, going out to eat) aren’t good enough, mostly this will just mean prices will stay roughly the same but a bigger share will go to theater/team owner’s tax bills. (I could try to find an economist to estimate exactly how big a share, but isn’t that really WSYX’s job?)
  • Former Oakland A’s exec Andy Dolich says the team owners may be looking at buying both the Howard Terminal site and the Oakland Coliseum site, and using the revenues from one to pay the costs of prepping the other for baseball, which, if the Coliseum site is such a cash cow and Howard Terminal such a money pit, wouldn’t they be better off just buying the Coliseum site and developing that? Or is the idea that Oakland would somehow give up the Coliseum site at a discounted price in order to get a new A’s stadium done? I have a lot of math questions here.
  • With nobody wanting to spend $250 million on a major renovation of Hartford’s arena, the agency that manages the XL Center is now looking for a $100 million state-funded upgrade instead. Still waiting to hear whether this would actually generate $100 million worth of new revenues for the arena; if not, the state would be better off just giving the arena a pile of cash to subsidize its bottom line, no?
  • Cobb County is only letting the Atlanta Braves owners out of part of the $1.5 million they owed on water and sewer costs for their new stadium. Yay?

Wizards’ $50m practice arena renderings are scenes from a post-apocalpytic nightmare

New renderings for the Washington Wizards practice facility (and Mystics home arena) to be built with at least $50 million in city money were released yesterday, and, I’m sorry, what?

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The new arena will apparently be surrounded by a massive frozen pond, or maybe a thin coating of a liquid polymer. Fortunately, no one will be around to try to walk on it, since that could get ugly.

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Is that a WNBA player? If so, why is she wearing so much makeup? What’s suspending the banner (?) in midair like that? And why on earth is there a film reel countdown projected (?) on a brick wall? What is it counting down to? Will there be any concession stands, or will the whole place just feel like an empty hotel lobby?

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The most important part of any new development: lens flare.

new-dcpract-5Put it all together and you have … dear lord. At least the rest of human civilization appears to have been destroyed in whatever cataclysm turned the very ground into a shiny flat surface, so no one will be around to see this. When the aliens land, though, they’re going to be disappointed that there’s nowhere to buy any curly fries.

D.C. council asks not to pay for Wizards cost overruns, mayor implies that it must hate black people

Oh yay, it’s some actual news for once! Washington, D.C. councilmembers have gotten cranky about Mayor Muriel Bowser’s plan to stick taxpayers with not just the $50 million cost of a new Wizards practice facility but all cost overruns as well — which was first revealed back in December, okay, but it takes a while for the D.C. council to work up a good head of cranky — and have introduced a bill to cap the district’s costs at $50 million:

“The District’s tax dollars are finite, and we have an obligation to our residents and businesses to use their funds as responsibly and efficiently as possible,” [at-large councilmember Elissa] Silverman said in a statement from the dais. “If we have to put more money toward a practice arena because of cost overruns, there is less money for new school construction, new ambulances and fire trucks, new and remodeled recreation centers, and other needed civic infrastructure, especially in Ward 8.”

Silverman also noted that the way the mayor has put forward her plan, the council wouldn’t even have to vote on it — unless the council blocks it by this Thursday, the spending deal will be “passively” approved, which is the kind of crazy that sounds about right for D.C. governance. (Several councilmembers have already filed a motion to extend the arena decision until April 7.)

Bowser’s chief of staff John Falcicchio showed that the council has no monopoly on the cranky, telling Washington City Paper: “It’s troubling that certain Councilmembers would move to strip $5 million from a job creating project in Ward 8. This is similar to the Council’s effort last year to defund the RISE Center at St. Elizabeths. Don’t tread on Ward 8.” Why are you picking on poor Ward 8, councilmembers? Do you think Ward 8 doesn’t deserve your blank checks? If you really loved Ward 8, you would buy it a pony.

All this over whether D.C. taxpayers will pay for an entire $50 million NBA practice arena, or will pay for an entire $50 million NBA practice arena plus any additional costs that crop up when the Wizards decide they want gold-plated exercise equipment. Representative democracy sure seemed like a good idea at the time.

Wizards practice arena plan would put taxpayers on hook for full cost, plus overruns

If the idea of Washington, D.C. spending $50 million on a practice facility for the Wizards sounded terrible enough, it just got worse: The city government would be on the hook for all cost overruns as well, with the team’s share limited to $4.5 million in rent payments over 19 years:

Monumental is the only tenant lined up for the facility and is expected to use it about 40 percent of the time, through Wizards practices, Mystics games and games from a NBA D-League franchise that has not yet been created. Events DC, the city’s convention and sports arm, would be responsible for booking events the rest of the time and would pay for any overruns beyond $55 million.

[D.C. council chair Phil] Mendelson said since Monumental’s contribution of $4.5 million equated to the rent the company would pay over the 19-year lease it expects to sign, the mayor had committed to paying for the entire bill even though ticket sales will go to Monumental. “How will we make any money off of this?” Mendelson asked.

The details of the deal for the arena, which would also host Mystics WNBA games and maybe an NBA D-League team, are still not worked out. Mendelson actually supports the plan, despite his qualms, so it looks to have a good chance of passing — if so, I hope they’ll at least chisel his “How will we make any money off of this?” quote into the cornerstone.

D.C. residents give resounding thumbs-down to mayor’s NFL stadium plans

Residents of the area around RFK Stadium really do not like Mayor Muriel Bowser’s idea to use the land for a new NFL stadium:

More than 150 residents of Capitol Hill filled a church gymnasium Wednesday night to propose ideas for re-use of the Robert F. Kennedy stadium property.

Most of the ideas centered around sports: playing fields, a pool, a boathouse, skating rinks, walking trails, even a velodrome.

There was one idea they widely and intensely opposed: building a new stadium for the Redskins. And almost every one of the more than 20 people who stood up to oppose a new NFL stadium did so without saying the team’s name.

Meanwhile, two former National Park Service workers who live near the St. Elizabeth’s Hospital site really do not like Mayor Bowser’s idea to use it for a new Wizards practice facility:

“I don’t think we need it over here,” said Alphonzo Walker, an unemployed 53-year-old who lives in Ward 8.

“I don’t know about this area,” said Eric Clark, also unemployed and in his 50s, though a few years older than Mr. Walker. “What’s going to happen to the homeless who live there?”

Okay, sure, small sample size. Still, the general principle is valid: If you have a plot of available land, and a plan to dedicate a few tens or hundreds of millions of dollars in city money towards it, what’s the best way to generate jobs and other benefits for the surrounding neighborhood, if that’s your goal? Think carefully before you answer.

D.C. mayor proposes $55m Wizards practice arena, because city was out of other sports to subsidize

Washington, D.C. Mayor Muriel Bowser has scheduled a press conference today to announce her proposal for the construction of a brand-new sports facility in the District. Nope, not the NFL stadium she talked about last week. But wait, you ask: Don’t the Nationals and the Capitals and the Wizards and D.C. United all have new buildings either in place or under construction? What on earth is there left to build?

D.C. Mayor Muriel E. Bowser has reached a tentative deal to build a $56.3 million Wizards basketball practice facility and Mystics arena for majority team owner Ted Leonsis on the east campus of the former St. Elizabeths hospital in one of the poorest corners of the nation’s capital.

Yes, you read that right: a $56.3 million practice facility. Plus a home court for the WNBA’s Mystics, because apparently the team is giving up on ever again being able to sell more than 5,000 tickets a game, despite the league average attendance being over 7,000. (Yes, I’m sure lots of those tickets are freebies or heavily discounted, but still.) The money would come overwhelmingly from public pockets: $23 million from the city itself, plus $27 million from the city-funded Events D.C. tourism bureau, with Wizards owner Ted Leonsis chipping in a whole $5 million, plus another $10 million for unspecified “redevelopment and community philanthropic investments.”

Bowser’s administration says this will be a terrific use of public money, notes the Washington City Paper, because:

A press release about the new facility estimates that it will generate $90 million in tax revenues over 20 years, in part by hosting Mystics WNBA games and an estimated 90 non-basketball events a year.

Okay, so let’s get this straight: Having the Mystics sell fewer tickets at a new arena instead of more back at their old arena would generate more in tax revenues because … there’s such a pent-up demand for concert dates that the Verizon Center will be able to fill those former Mystics dates with lots of new revenue-earning events? While also slotting in another 90 new events at the new arena? All of which will be spending by people who never would have been in D.C. otherwise, because after all, it’s not a big tourist town.

Not to mention that at a 5.75% city sales tax rate, to provide $4.5 million a year in new tax revenues, this new practice facility — practice facility, keep reminding yourself that — would need to generate an additional $78 million a year in sales all by its lonesome. That seems pretty unlikely — though if it could be such a cash cow, you have to wonder why Leonsis can’t just build it with his own money instead of making the people of D.C. build it for him and then hope to earn it back through sales taxes. It’s not like he’d need to take out a loan, even.

If there’s any argument for handing $50 million in public money to one of the richest guys in town, I suppose it would be that this is supposed to “revitalize” a rundown section of Southeast D.C., because what business owner can resist the draw of selling their wares to 17 games a year worth of WNBA fans? There is a Metro stop nearby, so it’s always possible you’ll eventually see condos springing up in Anacostia, like you do in pretty much every other D.C. neighborhood with transit. Of course, whether condos — or easy access to WNBA games — is what poor neighborhoods really most need out of $50 million in public spending is another story, but hey, beggars can’t be choosers, right?

This whole mess still needs to go before the D.C. council, where it will no doubt be the subject of months of raucous debate before it gets approved at the last minute by councilmembers scrawling out an agreement in ballpoint pen on the council floor. Democracy!