Public or Private Financing for NBA in Oklahoma City: Who Should Foot the Bill?

 

Ten Dollar Billsimage courtesy of freefoto.com

For two seasons, Oklahoma City was the temporary home for the New Orleans Hornets NBA basketball team due to the damage sustained by New Orleans during hurricane Katrina.  During their time in OKC, the city embraced them, and sold-out games were the rule, rather than the exception.  (GO HORNETS!)  Now that the Hornets have returned to New Orleans, OKC looks to be the likely new home for the current Seattle Supersonics, as they have been purchased by investors from the metro area.  If Seattle continues to refuse to build a new state-of-the-art arena for the team, it will apply to relocate to Oklahoma City.

With this opportunity to have our own permanent NBA team, rather than one "on loan" for a while, the city and its citizens are faced with a decision.  We are being asked to finance improvements to our own arena, the Ford Center, to make it more attractive to the NBA.  It is proposed that the improvements be financed through a temporary sales tax of 1%, which would, of course, be paid by all citizens, whether they attend basketball games or not.

Those that oppose the financing arrangement cite the fact that the money could be used for other purposes, such as upgrading of streets and transportation, which would be of greater benefit to the citizenry in general.  They also feel it is unfair for those who do not attend the games or have interest in them to be asked to help finance a private business enterprise for wealthy club owners, and think it places a financial burden on those with limited incomes.  There is also the concern that in another ten years, we too would be facing building of a new arena or losing our team to yet some new venue eager for NBA status.  Those with these concerns favor private financing or possibly charging a sur-tax on tickets so that those who reap the benefits of the improvements are the ones who pay for them.

The mayor and those who support the idea of public financing cite the fact that the NBA presence would have a significant impact on the way others perceive our city, attracting more new businesses and improving the economy for all of us.

Good arguments on both sides!  Do any of you have experience with similar situations in your locales?  What is your opinion?

 

Oklahoma City Ford Center Website

 

4 Comments on Public or Private Financing for NBA in Oklahoma City: Who Should Foot the Bill?

In Seattle the way they have financed other Stadiums is through hotel and restaurant taxes. This puts the burden primarily on people visiting the area from outside the region. An increase in the sales tax is a tough sell. I'll be surprised if they are able to get that kind of initiative passed. 

02/21/2008 06:45 PM by Bob Stewart - ActiveRain (ActiveRain)


Sorry Bob, but they did not consult us about this!  From what I am hearing, if we do not make the suggested improvements to the Ford Center, they will not come.  The vote on that measure is next week, March 4, so we should have a little better idea about how things will go then.

02/21/2008 06:48 PM by Ruth Ann and Henry Mertens-Oklahoma City Real Estate (The Mertens Group-Paradigm Realty)


THANK YOU OKC VOTERS!!  It passed today, and I just want to add a couple of things:

The 1% sales tax was already in place for a previous project in our city, and it would simply be extended for another 12 to 15 months.  This definitely made it an easier sale.

Secondly, IMO all citizens benefit from our gaining an NBA team.  I've not been a big NBA fan since Jordan left the Bulls, but I still completely support this initiative, as I see the big picture benefit for our city.

Third, this initiative does not help finance the wealthy club owners.  The property being improved is owned by the city and would be leased to the Sonics.  The improvements to the venue also increase our chances for drawing more of the large regional events, which would also bring more money into our local economy.

Great post Henry & Ruth Ann.  I also have been posting about this issue and am glad to see that a large majority of our citizens saw the big picture.

Sorry Bob!  :)

03/04/2008 11:59 PM by Ryan Hukill - Edmond RealtorĀ® (Hukill Group - Paradigm Realty)


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Real Estate Agent: Ruth Ann and Henry Mertens-Oklahoma City Real Estate (The Mertens Group-Paradigm Realty)
Ruth Ann and Henry Mertens-Oklahoma City Real Estate
Oklahoma City, OK
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