Part XIII: Phoenix Coyotes - The Final Cut?
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10-13-2010, 09:07 AM
Join Date: May 2010
Originally Posted by
I thought then & think now that IEH's projections on parking revenues were wildly optimistic so I wont even bother addressing it short of saying it would have to be instituted slowly & gradually in terms of price. As for the private businesses "voluntary participation" in the CFD, ya, it'd have to be a sales tax, but no, not just on event dates, all year long. I dont quite follow your reasoning that jobing would be a less attractive a destination if implemented. Parking & luxury taxes are the norm in dozens of markets throughout the US. Dont get me wrong, Im' no advocate for immediate $20 parking or 10% surcharges & taxes. It would have to be done slowly. Thus far, Ellman & the merchants are not included in the CFD, likely awaiting the disposition of a sale before moving forward.
Im guessing he got it from the upcoming (Nov) hearing before Baum. Isnt the COG seeking $200M from Moyes Estate, Moyes countering with $5M?.
Certainly, the CFD would have to tap into revenue from businesses year-round, not just on the days of Coyotes games.
In that regard, I continue to wonder about the business case for this. According to an article in The Arizona Republic, the sales-tax revenue from the Westgate businesses was about $13 million (
). Raising sales taxes for that district would have to make it worthwhile for the local businesses. So how much of their business is generated by Coyotes fans? I begin with the simplifying, but optimistic estimate that 7500 Coyotes fans (i.e. more than 50%) patronize Westgate businesses in connection with each and every Coyotes game. If each of them spend $50 ($200 for a family of 4) on local businesses, then the total revenue for the year would be about $15 million. I have seen it noted that the Glendale sales tax rate is about 3%, in which case the total tax revenue from Coyotes fans on game days would be about $450,000. This represents about 3% of the total sales tax revenues that Glendale reports that they receive from the arena and surrounding Westgate businesses.
This suggests to me that although important, Coyotes fans per se must represent a rather small proportion of the revenue generated at Westgate businesses. So, the question for those businesses must be how much they are willing to increase their cost structure to support the Coyotes operation.
I welcome comments on this analysis, which is admittedly simplistic. Particularly, I would be interested to know whether others have any estimates about the proportion of Westgate's total business revenue is driven by Coyotes' fans.
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