It seems it takes a $1 billion construction project to get state legislators to debate economic theory and for others' eyes to gloss over.
In Tuesday's Senate debate on the Vikings stadium, DFL Sen. John Marty continued to argue sports stadiums don't bring one new dollar of economic development to a city, citing numerous studies. In fact, he argued dropping cash out of a helicopter would generate more business than a stadium.
From my experience, many of those studies do contend in fact just that, and argue convincingly in some cases. In fact, I've seen studies that suggest stadiums LOWER the average wage in a town because they do create jobs, but a lot of lower paying jobs, so they lower the average wage.
Others contended, and rightly so, that the $18 million to $25 million in player income taxes cannot be denied. That's true. You lose them, you lose the income tax.
Marty tried to argue that the spending people would do on other things without Vikings stadium would bring similar income tax revenue.
To that I say, not even close. Let's just take one salary, say of Adrian Peterson. He gets about $15 million a year. It would take the employment of 500 new workers making $30,000 a year to pay roughly the same same income taxes as Peterson.
And that's probably a very conservative estimate because the people at $30,000 would pay a much lower rate than Peterson.
If Marty is arguing the number of jobs created by people going to movies and plays versus a Vikings football game would generate the same in income taxes as Vikings players, he is not using common sense and his math and assumptions are very far into conjecture land.
Yes, perhaps stadiums don't contribute to substantially higher OVERALL economic impact. One can debate that based on a number of assumptions.
But there is some new spending that happens with a stadium. Sometimes it isn't the amount one would spend, but it's the rate of spending. Do I spend more money when I go to a Vikings or Twins game than when I go to the local pub? Yes. Do I spend it faster? Yes.
As in all things economic, one cannot assume a cause and effect "ALL OF THE TIME." So, in some cases, Marty is right, the money would spent anyway. In other cases, he is not. Some spend more on sports than movies and would then SAVE less.
In the end, for me, it's not so much about the economics, though I do clearly think there is some benefit.
It's also a quality of life thing, as much as that is a soft cost. Don't forget the old phrase "We'd be a cold Omaha" without pro sports. I believe that is very true.
A few other choice quotes from the Senate Vikings stadium debate.
From DFL Sen. John Marty,
"You don't build a $1 billion stadium for monster trucks" referring to argument that state gets benefit from other uses of stadium.
That is getting one of my top votes for snarkiest quote of the day.
Another Marty quote:
"If the team were not here, we spend the money in other ways....we don't throw it in a recycling bin, in the garbage, flush it down the toilets. We don't do that."
Nice three phrase rhythm on that one.
From Sen. Roger Chamberlain, R, Lino Lakes:
"We can keep 'em here. We need a better deal. We don't make any money on this deal, " and income tax from player's salaries is "a rounding error."
Sen. Sean Nienow, R, Cambridge, commenting on the overriding of Minneapolis requirement for a referendum on paying its share via city charter.
"This bill says to the voters, to the electorate, to the voters, your desires are irrelevant, because we think this is important, you're inconvenient....cause you might cause a delay."
DFL Sen. Patricia Torres Ray from Minneapolis, in response to Nienow's strong words on Minneapolis charter.
She spoke quietly in her Hispanic accent:
"Please don't use this argument and don't use us the way they are using it, because it is hypocrisy. Because it is not about Minneapolis....just don't use it today, because what you are saying is not reflecting honesty."
To which Nienow replied:
"Madam President I resent those remarks. I have been consistent and honest and I deeply resent that."
More fun to come tomorrow.
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