The things we’d forgo to build a new Falcons stadium
Much of the public debate about a potential new stadium for the Atlanta Falcons has focused on the wrong question.
The issue is not whether the Falcons, their fans and — above all — owner Arthur Blank would benefit from having a new stadium built with an expected $400 million in tax money. The issue is whether building a replacement for, or complement to, the Georgia Dome is the best use of those millions.
As an economist would say, is it worth the “opportunity cost”? That would be the next-best choice among all possible things the money could buy.
And we could buy a lot of things for $400 million — the state’s expected portion of the $700 million project. Put another way, we’re talking roughly $19 million a year. Based on recent years, that’s the portion of annual hotel/motel tax revenues in Atlanta that would be dedicated to the new stadium.
Hotel tax revenue is sometimes considered “free money” because it comes from visitors. That’s why it’s better to think in terms of what we give up by using it a certain way.
Loading ...For example, it could go to cutting property taxes. Atlanta takes in $18 million to $20 million in general funds (see page 4o of this PDF) for each mill of property taxes. (A mill equals a dollar of tax for every $1,000 of a home’s assessed value.)
If the city were to lower property taxes by one mill and replace the revenue with hotel taxes, the owner of a $250,000 home would save $250 a year. (Hey, that’s about what it costs to take a family of four to a Falcons game!)
On the other hand, we could continue to spend the money, just not on a new stadium. The list of potential projects is long. Here are some possibilities, not all of which I’m endorsing simply by including them here.
For $400 million, we could build the entire 44-mile network of high-occupancy toll (HOT) lanes planned to help ease congestion in the region. Or we could make a number of improvements to freeway interchanges choked by traffic.
For those more interested in public transportation, the city could complete about a third of the BeltLine’s 22-mile transit loop. Alternatively, it could more than cover the first phase of the proposed streetcar route along the Peachtree corridor (a project I’d personally put at the bottom of the list).
Or the city could do the opposite of what governments tend to do and reduce the burden on future taxpayers.
With $400 million, the city could erase more than a quarter of its $1.5 billion pension funds deficit. Or it could pay for a big chunk of its continuing, $4 billion water and sewer infrastructure repairs. Those costs are inescapable. Why pass them on to unborn Atlantans when visitors could help us pay them down now?
Just to get a full grasp of what $400 million will buy, let’s look outside the city limits. For that money, we could pay the rest of the cost of deepening the Savannah port, which would benefit the entire state. It would also fund a large part of an outer perimeter or new north-south expressway allowing cargo trucks to bypass Atlanta.
Or we could hedge our bets in the water wars by building new reservoirs to fulfill our water needs in the event we lose access to Lake Lanier.
These alternative uses of the hotel tax revenues would require new state legislation. But surely Republican legislative leaders, good small-government conservatives that they claim to be, would rather use this money to lower other taxes or to build more pressing infrastructure than a spare football stadium. Right?
And even if you believe money raised from out-of-towners should be used to attract more visitors, the Georgia World Congress Center and Atlanta Convention and Visitors Bureau would still get almost a third of Atlanta’s hotel tax revenues.
Given the other possibilities, I’m not sure why we’re seriously debating a new stadium.
– By Kyle Wingfield
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113 comments Add your comment
KimZ'sPackage
March 11th, 2011
3:40 am
Put it in a HUGE grass field in a majority white area of town. Fans can tailgate, feel safe, and it would create jobs for the white people looking for work. I wouldn’t leave my nice car, truck, or van in vine city with all my tailgating equipment while I watched the game. Falcon fans don’t want to support more hotels, restaurants, shops, or neighborhoods. They want Grass areas to park and tailgate. We have no interest in spending more money for STUFF other than what we are bring to our party. We don’t care about helping to make Vine City better for the people living there. We are going to Party for a day about 8 to 12 Sundays a year. Who cares what happens to that area when it is not Home Game Sunday. First it was Underground now Atlantic Station and people haven’t learned. These mixed use areas don’t work too well. You need people to work and shop and live. The people that would work in the stores can’t afford to live there. Business people don’t want be around the scumbags that end up hanging around waiting to rob steal from hard working people. Somebody making more that 80k/yr ain’t going to live next door to a $5 crack chick.
We don’t need a new stadium. If the Taxpayers are going to build the stadium, then the Falcons need to be like the Packers. The people get to own the team if we build them the home.
KimZ'sPackage
March 11th, 2011
4:36 am
Some basic # from the Stadiums.
Atl Fulton Co Stadium cost $18 million. It was used year round for the braves too.
$18 mil/ 26yr = $692307.69/yr
Say the Falcon played 10 games/yr that is 260gm. The Braves played there too so cost was much less
$692307.69/ 260gms = $2662.72/game( don’t forget the Braves used it too)
$2662.72/game is a good price
The Ga DOME cost $214 Mil. High school games, bowl games, basketball games and some other events have been held in the Dome too.
$214 mil/ 25yr = $8560000/yr
Say there were 10 Falcon games/yr The Super Bowl, the NCAA Tourney, and Bowl Games made some big money.
$8560000/ 250gm = $34240/gm yes there were a few other events to help lower this cost, but this was no Bargain.
$700 mil/ 25yrs = $28 mil/yr
$28mil/ 250gm = $112000/gm
Yes there will be some other events at the New OUTDOOR Stadium, but not as many as can be inside at the DOME.
Mr. Blank if you can’t afford to build the NEW STADIUM without the taxpayers help, then sell the team to somebody who can afford a new stadium on their own dime OR NO New Stadium OR The People of Georgia get to own the team just like the Green Bay Packers. It is not for the Tax Payer to make a place for your team to play and help fix the ghetto around your new toy house. The Tax money could be straight spent on better projects that will last longer than the 25 years the Stadiums seem to be useful before needing replaced.
KimZ'sPackage
March 11th, 2011
4:56 am
Build A. Blank a new stadium with tax money, but Artie and his wife have cook dinner every night at their home. They have to invite and eat dinner with every tax payer in the state if he wants our business. He has to treat us just like he would if he were wanting money from an investor or bank.
seldomfound
March 11th, 2011
4:58 am
I’ve heard the the real issue is that the financial arrangement with Mr. Blank and the Falcons is not beneficial to them. Couldn’t we re-organize the financial structure of the deal with the current dome for much cheaper than we could build a new stadium? Hell – I’d move that we give all the revenue from the Falcons games to them if it meant avoiding a new stadium (especially one that’s outside, and a long walk from any marta station).
winkasdad29
March 11th, 2011
7:54 am
I’d much rather see the Georgia Dome undergo a renovation that would bring it on par with other NFL stadiums. Put on a retractable roof and add the skyboxes Blank wants. Let Mr. Blank pay for it with his own money.
By the way, Kyle this is an excellent article. Let’s use that $400M for things we really need.
Andy
March 11th, 2011
8:03 am
Kyle… you sir, are a moron.. the bigger problem is that they want to build it just down the street, so either way, it is still too close to the ghetto parts of town where we have some of the worst crime.. terrible views for those people who will want to tailgate.. unless you get rid of a good mile or two of everything on the other side of Northside Drive.
Call it like it is
March 11th, 2011
8:07 am
How about this the Falcons actually win a superbowl, then we talk about a new house. In regards to who pays for it, Blank does. In regards to the dome, nothing wrong with it. Have had season tickets for the past two years in the dome, had them for 5 at Fulton County. Every fan I talk too from another team loves the comfort of the dome, including Green Bay. It’s not like an outdoor stadium is going to make them better. Don’t recall any rings being won in Fulton County.
Silly, people losing jobs, owners,players fighting for money, people losing homes, and the Falcons are demanding a new home. Please.
Timmy
March 11th, 2011
8:56 am
There is nothing grosser in professional sports than indoor football in Georgia . After reading these comments it is clear the best idea would be to have an outdoor natural grass stadium built in the suburbs . Deepening of the port in Savannah ? Really Kyle ? Really ? Let the city of Atlanta not be burdened with the Falcons anymore . Hopefully the powers that be have read this enlightening article & will figure out away to bring in less revenue so they can fix there infrastructure , pension , and budget problems .
Richard
March 11th, 2011
9:37 am
Why not have the Falcons play at Turner Field? Take some of the bed tax and run a Marta train to Turner field, then you’ve solved a couple of problems for a lot less money.
There is very little overlap between Falcons and Braves games. The 49′ers do it…and their baseball team went all the way in post season.
The poeple working at Turner field would have more events to be employed, and with more events maybe more development near Turner.
John
March 11th, 2011
9:51 am
Stadiums should not be paid for by taxpayers. They should be built by team owners and financed by those that go to the games. I have never attended any sporting event and never will, why should I have to pay for their venue? Any money available should be going toward reducing my property taxes.
bill
March 11th, 2011
10:10 am
For my name changes I have two words for you…Lambeau Field…. Green Bay you know the Super Bowl champs. That team and stadium are owned by the people of Wisconsin. That stadium is open air and built at least 50 years ago. Go ahead and build Arthur Blank a new stadium and he can sniff some body elses jock now that Mike Vick is an Eagle. At least Win something Arthur before you fleece the public.
atlpaddy
March 14th, 2011
9:20 am
Dear Kyle and all the idiot posters – the City of Atlanta is not giving away $400 million to Arthur Blank. That would be our “Republican” politicians in the Georgia General Assembly. The proposed site is located on land owned by the GA World Congress Center. Therefore, put the blame on the ‘fiscally responsible’ Georgia Republican Party.
Blank Rules
March 14th, 2011
1:33 pm
Billionaires like Blank run the city and he will get what he wants for the new stadium, when he wants it, by threatening to leave the city. He wouldn’t leave, but the city will be too scared to take a chance and give him $700 million – $1 billion—whatever amount he wants, even if he builds a stadium 1 mile from marta, open air. That’s why he’s a billionaire–he knows how to “convince” people to give him a lot of money.