Kent County, Michigan is set to hold a public vote on August 6 on whether to hike its hotel tax rate from 5% to 8% to fund a minor-league soccer stadium and music amphitheater, and if you’re wondering things like “Why should I care?” and “Where the hell is Kent County?” wait till you hear who did the economic impact study:
Over a 32-year period, the estimated economic impact of the proposed soccer stadium and the 12,000-capacity Acrisure Amphitheater totals $1.2 billion in Kent County, according to an economic impact study commissioned by Grand Action 2.0, the private economic development group leading the charge to build the venues…
How did the author of the study, CSL International, come up with those figures? Are they accurate? How likely is the economic impact to materialize?
Yes, it’s the Wile E. Coyote of economic impact studies again! If past history is any guide, CSL came up with those figures through math errors, but let’s go check out their report and see … oh, it’s not online? Not even on Grand Action 2.0, the site set up by the private business owners seeking to get public money for their project, one of whom is Dick DeVos, the Amway failson and husband of Trump education secretary Betsy DeVos? Well, let’s see what CSL officials had to say, I guess:
For example, consider a family that buys a pizza, hot dog, beer and soda, he said. Demand for those products ripple through the economy, and can be felt by the companies that supply food and beverages to the amphitheater, [CSL principal John] Kaatz said.
“Somebody’s got to deliver the product to the stadium,” he said. “So, you’ve got delivery guys from off-site bringing in all the product. Then the product has to be warehoused at then venue. It has to be prepared at the venue. The product has to come from somewhere, so it’s shipped maybe from a wholesaler to another vendor who ends up shipping it to the stadium.”
Sure. Now consider a family that doesn’t go to a minor-league soccer game, and instead eats dinner somewhere else. Somebody’s got to deliver that food to the restaurant, or to the supermarket. Think of all the jobs that are created by people doing whatever they do with their lives now that have nothing to do with soccer! The economy is a wonderful web of spending, and a lot of it has to do with people just being hungry and needing places to live, and those things don’t change when there’s a new soccer stadium in town.
But then, I’m not an economist, unlike John Kaatz, who, well, has a bachelor’s in economics, I’ll give him that. What do actual professional economists say about his expertise?
(No actual economists were cited in MLive’s article, presumably because it took too long to transcribe all of Kaatz’s quotes and there was a deadline approaching, what do you want from your journalists, blood?)
The hotel tax rate hike is expected to generate an additional $9 million a year for the projects, which would cover about $140 million in construction costs — though that’s presumably assuming that people don’t start staying in the next county over, or avoiding the tourist mecca of Grand Rapids altogether, to avoid the high hotel taxes. The soccer stadium — to be the home of “professional soccer,” according to Grand Action 2.0’s website, no further details provided, though there’s previously been talk of a USL franchise — would require $115 million in public funds, and an accompanying 10,000-seat amphitheater would cost $114 million, so this will require additional state and city money as well, some of which has already been approved. Assuming that the hotel tax hike passes on August 6, that is, which this woman is committed to stopping with her stern glare.
UPDATE: Wait wait wait, this is better:
As an Orlando resident, every time I hear the name “deVos,” I automatically recoil. Outside of the obvious — namely, their origin story centered on MLM, and the type of people, policies, and programs they support and sometimes even bankroll — that family has taken so much from this town for years and years and years without scarcely giving anything back, and they will no doubt come grovelling again for “upgrades” to the arena that was built for them in the coming future.
The Magic could win the next five NBA championships and I still wouldn’t root for them because I despise their ownership so much.
Saving that quote and will just apply it to all non-economist cited studies put out by the owners to “justify” public money.
I have not eaten pizza or had any soda since 1979 unless I was at a soccer game. I only take meals of any kind while watching professional sports at the venue.
CSL would like to contact you and get permission to use this quote. :)
According to census data, Kent County, MI has grown population every 10 years without the minor league soccer stadium and amphitheater. Maybe they should use the land for more housing that pays real estate taxes.
“The product has to come from somewhere”
So, we DO want to know how the sausage is made now?
Help me out here…
Please don’t forget that CSL is Legends and Legends is in the process of merging with ASM Global, which operates all of the Grand Rapids venues.
When will they ever learn?
(hummed to the tune of “Where Have All The Flowers Gone?)
The IOC must have seen the billion dollar handout of taxpayer dollars from Utah to Ryan Smith and figured Spencer Cox for a total patsy (correctly). Utah has already agreed to spend (at least) $4,000,000,000 on a 2 week event when all venues are already built from 2002. Spencer Cox agreed to be a partner in blackmail, protecting corrupt Olympic organizations and the age faking, athlete doping Chinese Olympic team. Hopefully the DOJ and FBI will increase their investigations into Olympic corruption, given the effective guilty plea of forcing the Salt Lake Organizing Committee to become co-conspiritors in blackmail. All sports from the lowest level of blackmailers. league baseball to the Olympics are nothing more than extortionists and blackmailers.
I’m not sure blackmail is the right term. Extortion, I think.
But everyone who cares already knows the IOC is as bent as a $17 bill and yet cities and states keep throwing money at them. At this point, it should not be the job of the Federal Government, supported by people in every other state, to save SLC from their own stupidity.
Besides, there is nothing to investigate here. The extortion is all pretty much out in the open.
Where are all of these people coming to GR going to park? Recent news flash they are building a parking Ramp for 340 cars for 10 thousand seat stadium that is only serviced by one two lane road. The same brain trust/economist must have planned that.