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Watch the $$$ On Arena Funding
by Pat
Pending
Last week
was one of excitement over a proposed basketball arena in Louisville.
Local businesses are now pitching in to try to woo the Grizzlies to
Louisville. What is most
interesting is to watch the money in this deal.
A local property owner is offering land on which to build the arena
in exchange for a minority ownership in the franchise.
This sort of free enterprise arrangement is most welcome.
The landowner gives something (land) in exchange for part ownership
in the enterprise. Also,
Tricon (Kentucky Fried Chicken) is offering millions to the Grizzlies’
owner in exchange for naming rights, to call the team the Colonels and the
arena the KFC Bucket. Again,
this is another welcome free enterprise arrangement, with both sides of
the transaction giving something of value and receiving something of value
in the bargain. However, when
it comes to the really big bucks to build the arena, where are the
businessmen and investors? Nowhere
to be found! No, as of the
latest report, taxpayers will be footing the entire bill to build the
arena, and the Grizzlies will use the facility rent-free.
In other words, taxpayers are to pony up the full $220 million plus
to build the arena in exchange for ABSOLUTELY
NOTHING!
Several
third party groups protested this arrangement last week, including members
of the Libertarian party, members of the Constitution party, and members
of the Green party. The real
question is, where were the members of the two big parties?
Do the Republicans and Democrats think it is alright to forcibly
take $220 million of taxpayers’ money in exchange for nothing?
We know we did not elect these people for their investment
expertise, but this is ridiculous! Maybe
they could learn something from the business folks involved in this
transaction. If you are going
to strike a bargain, you need to be receiving at least as much value as
you give. The concept of
spending $220 million to build an arena and simultaneously entering into
an agreement to provide access to the arena for thirty years on a
rent-free basis doesn’t seem to be a very good bargain for our
taxpayers. Perhaps our
elected officials should be reminded that we hire them to protect our
property – not plunder it!
Previous
articles in Jefferson Review concerning the arena:
Byron
Himmelheber Article on NBA Arena
http://www.jeffersonreview.com/articles/
2001/031201/MBA.htm
June 12
Rally
http://www.jeffersonreview.com/articles/
2000/061200/Citizens
Hold Rally Protesting Tax Funding of Arena.htm
Is There A
New Arena In Louisville’s Future?
http://www.jeffersonreview.com/articles/
2000/050800/Is
There A New Basketball Arena In Louisville's Future(5-8-00).htm
Funding
Arenas and Roads
http://www.jeffersonreview.com/articles/
2000/062600/Funding
Arenas and Roads.htm
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