kcmiz wrote: ↑Wed Feb 01, 2023 10:16 pm
beautyfromashes wrote: ↑Wed Feb 01, 2023 4:07 pm
Personally, all the social outrage about funding seems a bit tired. Putting in $1B to get a matching $1B that will generate a significant return both financially and socially in the urban core is a no-brainer.
The city isn’t in a position to pay a billion dollars for anything. The Marlins stadium in Miami is a cautionary tale for how disastrous public financing of stadiums can be. The Cardinals paid for their own stadium albeit partly with a loan from the city. St Louis should be the model. Why can’t the Royals pay for their own stadium?
Cardinals paid something like $200-300 million iirc
STL had $100 million from city state. Sales and property tax exemptions of another $400 million Public loan of $45 million face value ($100 million + over its lifetime).
Edit: Here is a run down
The Cardinals did put up much of the initial funding for the $398 million cost of the new Busch Stadium: $90 million in cash, $200 million from the sale of corporate bonds and land which they value at $20 million. Assuming finance charges for the bonds at about $110 million, their outlays will be around $420 million. However, they will be getting it all back--and a whole lot more.
The most overlooked subsidy the Cardinals are receiving for the new ballpark is the 5 percent admissions tax on tickets that the city no longer collects. The Cardinals now get to keep what they used to pay to the city. In almost every news account, this is mentioned as merely a footnote. It will actually be the largest subsidy for the ballpark.
In 2005, the Cardinals paid $5 million to the city for the admissions tax. It was the last year the team would pay it. Assuming ticket prices will increase an average 5 percent annually, the amount of this subsidy to the Cardinals will come to around $350 million over the 30 years of the redevelopment contract.
From news accounts and public records, we have estimated the main sources of revenue going to the Cardinals for the new ballpark:
* $350 million over 30 years due to the repeal of the 5 percent St. Louis admission tax.
* $20 million from property tax abatement on the new stadium over 25 years by the city of St. Louis. The Cardinals paid 8604,000 in property taxes in 2005.
* $108 million, what it will cost St. Louis County taxpayers to retire the $45 million of bonds sold for the stadium.
* $42.7 million from the state of Missouri for tax credits and highway ramp construction.
* $100 million over 30 years from the naming rights for the new stadium. It has been estimated it would be worth $3 to $5 million dollars annually. The actual amount isn't known because the Cardinals have refused to divulge the information.
* $40 million from the Ballpark Founders Program, which charged season ticket holders an additional $2,000 to $7,500 for the better seats in the new ballpark.
* $10 million from selling memorabilia from the old Busch Stadium: 11,000 to 14,000 pairs of seats at $600 a pair, signs, urinals, etc.
The cost of subsidies from taxpayers for the new ballpark comes to around $520 million. Other sources of revenue are about $150 million. This does not include the considerable amount of increased revenue the Cardinals will take in from other sources at the new ballpark--higher ticket prices, premium seats, luxury suites, increased advertising, etc.