A Business Proposition
I have a few curmudgeonly questions about the proposed sports complex. Let us be mindful that this is purely, only, and always a business proposition for the Sports Facilities Companies (SFC). They are in it for the money. That’s fine. That could be the national motto, “We’re In For the Money.”
But what about risk? We will need to sell nearly $60M in bonds, which will have to be repaid, with interest. What is the risk to SFC if this complex does not turn out to be a money machine? As far as I can tell, there is no real risk to them. SFC makes money no matter what happens. When one party has no risk, and the other has all the risk, careful consideration should be given to what is at stake. For example, if we invest $60M in a sports complex, will we be able to invest in other things if the need arises? Or will this debt prevent that? Can SFC give examples of cities where a study was conducted, but they decided not to proceed? Can SFC give examples of a city where a sports complex like this was built, and the tax revenue allowed them to expand or improve services, like a new water plant, say, or dedicated bike trails, or improved transportation for the elderly for doctors’ visits, or, even better food security for those that lack it, and, hey, decrease property taxes?
If SFC, as they do in some cities, manages the construction of the complex, what percentage of construction costs do they get? What is the estimated year-to-year cost of the sports complex, maintenance, and fees to SFC? Will SFC ever build a complex in, say, Galesburg or Canton that might compete with this one? Why wouldn’t they? Remember, SFC gets paid to manage the complex even if it doesn’t make money for as long as they have a contract.
I’m also curious about the so-called “off-ramps” for this deal. Where/when is the last one? Is this to say we would consider walking away from the project once construction began? Also, what negative effects, if there are any (to, say, the YMCA or the city park system), could this project have? Will memberships in the sports complex be sold, as is done for SFC complexes in other cities? Both the YMCA and the parks provide invaluable services to our community. The Y is not free, but it is not expensive and contributes to the “gross general happiness” (if you will) of the community, both young and old. The community would be impoverished without it. The YMCA also provides affordable childcare to many who would otherwise go without it. We should not do anything to harm it. Likewise, our city park system, which I am grateful for and a daily user of. I would like to see more funding for the parks.
If we are spending $60M, this project needs to be winwin- win for the community. I’m not feeling it yet.
William Thompson Macomb
Editor’s Note: See page 2 of this edition for clarification on many of these concerns.
