[Ed’s Note:  Do not believe everything the bureaucrats and politicians tell your or that you read in the newspaper.  The spin they use to ‘justify’ public projects borders on fraud.  Here is an analysis by a member of the Virginia Beach Taxpayer Alliance - it lets you see the facts and believe accordingly.]

Editor:

It wasn't long ago when our great leaders promised that the new Convention Center would generate "up" to $2.7 million in additional taxes to the city (is this from direct, indirect or induced spending?! - economists...you gotta love  them!), an additional 74,357 hotel room nights annually and 2,400 additional jobs.  Has that happened?  Can our City show us where these jobs have been created?  Where's the Report?

We are currently paying over $15 million annually to service the debt on the Convention Center.  When all is said and done, the $207 million dollar Convention Center will cost taxpayers 50% more, $307 million, by the end of the debt pay-off.

I read in the paper today, that the "deal" for the Arena will require Virginia Beach citizens to finance $195 million of the total $380 million.  That amount is so close to the $191 million used to finance the Convention Center, I thought I'd send you that debt service schedule.  This debt is issued through Public Facility Revenue Bonds (PFRBs) and it is issued by the Virginia Beach Development Authority, utterly by-passing voter referendum.  

Do not be mislead by the word "Revenue" in PFRBs.  If the revenue from the operation of the project is insufficient to cover the debt service, the General Fund will make up the difference.  The Convention Center has never covered even the cost of operations under its own roof, much less made any contribution toward its debt service.

As I read through the Arena studies and see the assumptions, this deal is indeed laughable.  See: Convention Center Debt and Promises

Beth

 

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