My friend just told me he thought we had to pass a referendum for the Rox to stay. If the Enron guy and some other big cheeses step up and pay for the land and arena can't it be done without the public?
Public money is not strictly needed. I don't see any individual Houstonian gifting $100+ million toward a new BB arena. The Enron guy may be able to sweeten Les's deal with Enron money (corporate sponsorship) and may help with the PR on the next referendum. But that is it.
Actually, no referendum is needed to use public monies either. Here's the breakdown as I understand it: Money that is already in existence or about to be (i.e. tax revenues collected or yet to be collected - parking tax, hotel, rent car, etc), that has specifically been earmarked for the Sports Authority budget may be used for ANY sports-related venture including basketball. In the last referendum, the vote wasn't on whether or not we should raise the amount of tax collected (i.e. percentages) or on extending the amount of time the tax is in effect. The last referendum was simply to allow the Sports Authority to allocate future tax revenues to a downtown basketball/hockey arena. From what I understand, if the land was donated or purchased by a private business like when Enron bought the land for the baseball park, the city could conceivably budget a downtown stadium through the use of publicly owned municipal bonds and re-allocation of funds in the Sports Authority treasury without an election. The problem with this move in the past has been that politicians are loathe to make moves without public approval - in other words, they want to cover their butts with a referendum. That way, if the public comes back and says, "Why the hell did we build that thing?" The city can say, " Well, you voted for it!" Some cities have even passed laws prohibiting the allocation of city funds for large expenditures like sports venues without a general election. As is my understanding, we would only have to vote if there are NEW taxes created for the purpose of a new stadium or an INCREASE in existing taxes for the same purpose. Right now, the best bet for the city might be a non-referendum budgeting of an arena. It may be the only way to get one built. Mattress Mac called in to the Bench this morning on KILT AM and said that very thing. If several business leaders were willing to pick up the cost of the land, Alexander was willing to pick up a percentage of the building costs and the city was able to use existing tax revenue and dollars from the sale of the land where the Compaq Center is now (after all, we wouldn't need that building any longer) to fund the rest of the stadium, it could actually get done without a referendum.
Jeff, I liked your answer and learned from reading it. Thanks, but the key part I got was where if Les would be willing to pay a percentage it might be done. Do you think after offering to pay 50% and being turned down and now[with Sterns offer to move] do you think he will be willing to pass up deals with no money and a sweetheart lease to pay money to stay?? I don't know the answer but would like to have your comments, it just seems to me to be bad business and the fact that he took it personel when it got turned down. Thanks
Olajuwon owns an old bank building that he is planning on turning into a mosque at some point in the future. It has been used numerous times over the past 5 years for filming movies because it is beautiful on the inside.
LOL! You know what's funny is that I've NEVER in my life heard of a city that was disappointed because they decided to build an arena and keep a team, but every single one that has lost one is miserable about it. I wonder how that could be...?
I'm not looking forward to the next year or two. ------------------ Proud Cheerleader 'til we move to New Orleans 302
Sorry Jeff, Phoenix citizens got very mad about the sweetheart deal to help form the D-backs. They threw out the city council members who authorized the public financing of it. In fact their last words before being kicked out on their behinds was a loud squeal something like “but look for what we did for all of you, we legitimized the city with major league baseball, you don’t understand, but, but, but,…ayeeeeee”.
Maybe they got pissed about the deal, but that was for the purchase of a new team, not to keep an existing one. If Bob McNair had flaoted a sweetheart deal past the voters for a new stadium, I'm sure that there would've been huge complaints there too. But, in 10 years, do you honestly believe that the citizens of Phoenix are still going to be cursing their former political leaders or cheering for their baseball team?
You could be right in the long term, besides many voters forget easily. I just wanted to make the point that not everyone accepts sweetheart deals for these sports tycoons, they can have negative repercusions for their sponsers and supporters.
