Home Letters To The Editor The proposed Sports Arena is flim flam on taxpayers to enrich the wealthy

 

Editor:

re: The VB Arena Proposal should be terminated immediately.

The framework of this proposal puts city and state taxpayers in a position of significant financial risks.

The public will provide 92% of funds required, and the prospective franchise is not asked to provide any funding, but is being subsidized. (See: Funding sources) is one of many studies documenting these concerns.

This proposal has not been sufficiently studied (by an independent unbiased source).

Some examples of concerns; additional costs ($46 MILLION) that have recently been identified and there is a rush to push the initiative through at any costs.

Historically, stadium and arena costs have encountered significant costs overruns . The cost to build the new arena is $300 MILLION.

Currently the city is budgeting only 1% ($3M Hotel Tax) to cover any overruns. A more realistic figure to cover change in scope of work or overruns would be at least 10% or $30M, which is also not a part of this proposal.

This proposal will not provide the revenue stream that the city needs.

The net return to the city (excluding tax revenues) is projected at 3.7 million dollars per year page 30

The city has documented funding shortfalls due to the loss of significant revenue from the state to pay for its share of the city employees retirement system (VRS), and there will be additional shortfalls with new Medicare expenses.

Due to the loss of purchasing power from the gas tax, the city cannot keep up with new road construction.

As mentioned above we are going to ask the state tax payers to provide $80 MILLION ($30 MILLIION for franchise relocation, $8 MILLION for corporate relocation; and $42 MILLION for the franchise’s loss of revenue awaiting construction of the arena) of $150 MILLION.

The arena proposal puts too much financial risk on the tax payer, and needs to be restructured, with full visibility of the public.

Virginia Beach Taxpayer
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