What STOP doesn't seem to understand is that while parking revenue will help pay the debt on the bonds issued, income directly derived from the existence of an arena will replace that amount of money of more to the general fund. Net effect on general fund revenue = zero.
Sacramento residents WILL NOT pay one more cent in any assessments or taxes than they do right now. The truth is this isn't really a subsidy. The city will use revenue derived from a city asset (parking) to build a brand new city asset (the CITY WILL OWN THE ARENA). So the new Kings owners will not be receiving a any actual money from the city. What they get is the right to lease the new arena and 2,700 parking spots from the city. They also take on all the expenses of operating and maintaining the arena, paying any debt they will incur on the arena. They are also responsible for paying for any municipal services provided during events at the arena, like police.
The bond money actually comes from private investors, like people saving for their retirement. I've had municipal bonds in my portfolio.
Finally, I laugh at people who talk bad about people outside the city limits. If you want the city to thrive and have more revenue, without raising taxes, then you want all the people from outside the city you can to come and spend their money in the city. Businesses are looking to buy run-down, often vacant, properties in downtown, because they want to be near the new arena. That's new business, new jobs, new revenue from the arena and the other businesses drawn to the area. Revenue like, more parking revenue, sales taxes, increased property taxes from new and renovated properties.
In addition, ticket buyers will pay a 5% surcharge per ticket, $1 per ticket for future maintenance and repair of the arena. People from all over the area will attend events. Basketball is only about 1/3 of the events. Many will pay parking, shop in the arena stores paying sales taxes. Many more will spend money in the new and existing bars, restaurants and stores in the arena surrounding the arena.
I came to Sacramento in 1967. I remember the time before the current arena, when you had to go to the bay area for the kinds of events drawn to an arena. I want to spend my money in Sacramento, not drive all the way to the bay area and give my money to the revenue streams of those cities (like sales taxes, ticket surcharges, parking and possibly hotel taxes) and help pay for their infrastructure, their arenas and stadiums.
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