Kukla's Korner Hockey
by Paul on 05/21/12 at 04:02 AM ET
from Amanda J. Crawford of Bloomberg BusinessWeek,
Glendale officials are negotiating an arena lease that would give a potential buyer of the team $17 million a year to manage the arena, while they work to close a $32 million budget deficit for the coming year. The city fired 49 workers last week and is considering a sales-tax increase that would make its rate one of the highest among major U.S. cities, according to the Washington, D.C.-based non-profit Tax Foundation.
“They said under the worst conditions financially we would make over $100,000 on the arena” each year, said City Councilman Phil Lieberman, who has served for 20 years. “How could we go wrong? It would cost us nothing.”
The losses underscore the risks cities confront when they offer incentives to lure professional sports teams and develop nearby properties in anticipation of an economic surge, said Timothy James, an economics professor at the W. P. Carey School of Business at Arizona State University in Tempe.
“They’ve got a big hole in their budget to keep the ice hockey team in town,” James said. “It’s not like a road system or hospital where there are benefits everyone gets. It’s a sports team. It should be able to stand up on its own.”
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Paul Kukla founded Kukla’s Korner in 2005 and the site has since become the must-read site on the ‘net for all the latest happenings around the NHL.
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