Metro Seattle: NHL, NBA and Arena - Part VI
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03-22-2013, 12:25 PM
Seattle Sin Bin
Join Date: Feb 2012
Location: Tukwila, Bellevue
Field of Schemes exposes Sactown's Fuzzy math on arena:
Instead of leasing out the city’s future parking revenues to a private operator and using the proceeds to pay for the arena, the city plans to form a non-profit corporation that will get the parking revenues, plus hotel tax money, and use that to pay the bonds.
The lost parking revenues from the general fund would be paid off with excess parking revenues from the non-profit, plus ticket taxes.
Anybody spot the problem here? (Other than that the rendering in the video is pretty horrible.) In order to help fund a basketball arena, the city will divert $9 million a year in future parking revenues to a non-profit, which will use the money to pay for the arena, then take whatever’s left over and repay the city for its $9 million in — wait just a cotton-pickin’ second here…
Unless the Sacramento city manager really thinks that you can make money magically multiply by shuffling it back and forth really fast between two cups, then, the only thing really new about this deal is the introduction of a non-profit shell corporation to actually sell the bonds and collect the parking revenues.
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