As details are starting to
materialize after yesterday’s surprise announcement that the Braves plan to
move to Cobb County (and almost my backyard) for the 2017 season, there are
still many more questions than answers. We’ll start to try to break these
down into specific posts for each of the many issues that this relocation will
face (and/or create).
The $450 Million dollar question –
an amount that is also still in question – is how will Cobb produce the amount
of public money that is at this point still rumored, but not confirmed, as the
public contribution. Dave Pendered of the Saporta Report gives us a primer on how it may work:
The Coliseum and Exhibit Hall
Authority (Cobb-Marietta) has the sole power to set the hotel tax rate,
according to state law. The Braves began talks with the coliseum authority in
July, according to espn.com.
The coliseum authority now operates
three destinations in the Cumberland area near the site of the planned Braves
ballpark – Cobb Galleria Centre, Galleria Specialty Shops, and the Cobb Energy
Performing Arts Centre.
In 2010, the hotel tax generated in
excess of $9 million. That figure is based on a report in the Marietta
Daily Journal that an 8 percent payment from the authority to the Cobb
County Convention & Visitors Bureau would amount to $8.9 million.
I went online today to sample hotel
reservations in various Cobb hotels, and it does appear that the local hotel
tax is set at 8%. Note that this is on top of the local sales tax of 6%
which is also levied. Thus, we currently burden our visitors with a 14%
charge to pay for the services they receive during their stay.
More importantly, according to
Pendered’s article, the maximum amount of the tax under state law is 8%.
For those looking to a quick increase, you’ll need to look to the Georgia
legislature. Now look back at that word quick….Anyway,
$9 million/year won’t service the
debt on $450M. There are other possibilities such as Tax Allocation
Districts, CID funds, even local SPLOST dollars. But those are
speculation. While questions are needed and advised, rampant speculation
isn’t necessarily helpful. But neither are secrets now that the deal has
been announced.
In short, we still have more
questions than answers on how Cobb County taxpayers will be affected.
Only when we have these answers can we attempt any sort of credible
Cost/Benefit analysis and discussion.
Source: Peach Pundit 11/12/13
Comments:
If this boondoggle requires selling $450
million in 30 year Bonds with a 5% return, the total cost would be around $900
million. This $900 million paid off in
30 years would cost about $30 million a year.
If there is $8.9 million a year in hotel tax to contribute to this debt
service, the net loss would be about $21 million a year for the first 30 years.
This $21 million could have been used to mill and resurface 105 miles of 2 lane
asphalt road each year.
Our track record suggests that we would
be tearing down this stadium in 15 years and still having to pay off the $21
million debt service for the next 15 years when we tear down the 2nd stadium to
build a 3rd stadium. I bet if the baseball teams had to pay the
entire cost of building new stadiums, they wouldn’t be doing it every 15 years.
“Go Braves and take them Falcons
with ya !”
Norb Leahy, Dunwoody GA Tea Party
Leader
No comments:
Post a Comment