11 May 2009
It's clear that in supporting 1A, they are looking out for their own interests. To bridge the budget gap, the state may look towards taxing tickets, food and beverage, parking, anything related to running a franchise. Anchutz Entertainment Group, the giant stadium and arena operator, could become a big time loser if such taxes pass.
While it makes sense that these contributors would back 1A over taxes on their own operations, these two issues aren't mutually exclusive. 1A isn't guaranteed to fix the budget, especially if future state revenue falls short of projections. If that occurs, guess who's next?
I'm curious about the potential revenue the state could raise through a "fun tax." I suspect that while it would affect teams and fans, the proceeds would be a drop in the bucket for the state.
1A and its companion propositions are losing big time, according to Field Poll results from the beginning of the month.
Listeners will get an easter egg for their time: the correct pronunciation of my real name! Discuss away.
One more thing: the economic impact report I cited in the interview can be found here (PDF).
The council Tuesday also will take up its most comprehensive plans yet for ensuring that business owners and other residents remain part of the city's evolving ballpark conversation. The mayor's previously announced "Diridon Station Area Good Neighbor Committee," citywide town hall meetings and frank chats with neighborhood leaders are part of the prescription.I'm a little wary of having 27 members in this committee, but at least no one will be able to say they are being underrepresented. Perhaps it takes a village to build a ballpark.
The Diridon committee would include 27 members, including transit officials, neighborhood leaders and representatives from the group that runs HP Pavilion and from nearby businesses such as Adobe Systems. Its work could start as soon as June, Reed said, with a review of the 2007 report clearing use of the Diridon area for a stadium.
Mayor Reed also indicates that he wants the project to make money for San Jose, but doesn't indicate how. The model I drew up in the last post indicates that San Jose wouldn't make money. They could through a more expensive lease. More likely is some kind of revenue sharing agreement, especially if it involves the redevelopment zone just created out of the Diridon/Arena area.
Credit goes to the Mayor/Council for being steadfast on looking for a public vote. Even if it is only advisory, at least it goes to the point of directly asking citizens if it's a good deal. I'm not for ballot box planning, especially if no public money is going towards the ballpark itself. However, with the Mayor's promises of open government, this is an appropriate step.