Here is another letter to the editor that I fired off this morning.
Dear Editors:
Nobody doubted that the new Cowboy's Stadium in Arlington would increase tourism and the associated tax receipts in Arlington (Susan Schrock ,"Arlington records tenfold increase in tourist spending during the fiscal first quarter" Star-Telegram 3/9/2010 1A). Rather, we wondered if the increase would pay for the stadium as promised? If the interest rate on the $350 million in stadium bonds issued by the city were a paltry 5%, the annual debt service alone comes to $17.5 million. An increase in tourism dollars by $15 million in the Fall would generate $0.3 million in city sales tax revenue (if the city's sales tax rate is 2%). Even if the three off-season quarters saw comparable tax collections, revenue from increased "economic activity" still comes $16 million short. Rather than applauding these gains, the Ms. Schrock could have exposed the stadium for the boondoggle that it is.
Michael R. Ward
My wife says I am turning into an angry, letter-writing curmudgeon but I claim some expertise. See:
Carolyn A. Dehring, Craig A. Depken, and Michael R. Ward, “A Direct Test of the Homevoter Hypothesis,” Journal of Urban Economics, 64(1) (2008) 155-170.
Carolyn A. Dehring, Craig A. Depken and Michael R. Ward, “The Impact of Stadium Announcements on Residential Property Values: Evidence from a Natural Experiment in Dallas-Fort Worth,” Contemporary Economic Policy, 25(4) (2007) 627–638.
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