A new arena?

Council cautious on arena plan

Last night, there was a large hubbub at the Sacramento City Council meeting about public funding for a new multi-use arena venue in downtown Sacramento for the Sacramento Kings. One councilmember decided they didn't need to hear the proposal to decide it was a bad idea. It's too bad, because this issue is not just about the Sacramento Kings having a new place to play basketball, but rather one that involves the greater potential of downtown Sacramento.

A couple of years ago, I went on the Sacramento Metro Chamber study mission to Denver. Among the topics we learned about included a presentation of how Denver created a special district to help publicly finance the construction of a new Mile High stadium. We had our welcome luncheon in the top floor of the old Denver Petroleum Club. From the 38th floor, we had an unparalleled view of Mile High stadium with the Front Range beyond.

The new Mile High stadium was built with the approval of a multi-county initiative, which imposed an additional $.01 cent per $10.00 retail tax on the existing tax rate, while Pat Bowlen, the Bronco's owner, paid 25% of the stadium costs. This type of initiative was not new to Denver, as a similar measure was used to provide regional funding for the Denver Zoo, their Science Museum (a great regional attraction) as well as funding for arts programs that benefited the entire region.

The long and short of it is, the people of Denver recognized that their city was the center of the culture and nightlife for their region. They chose to make an investment (about $12 annually per family) in a venue that brought tourism and people to their downtown. This investment created economic development opportunities for new small business people, filled their hotel rooms, spurred new restaurants, and generated revenues that benefited their city. For those of us on the Study Mission, what we saw in Denver excited us. Denver was carrying out a vision that would suit Sacramento well.

Now, does this mean that the City of Sacramento should rush headlong in the pursuit of a new arena? Not necessarily. There are still more questions that need answering, and more study of the potential financial benefits for the city. The City Council needs to take all the information into consideration, rather than making a predetermined decision. Like the saying goes, sometimes you have to spend money to make money. A new arena just might be an economic boon for the city. The people of Denver certainly thought so.