02/02/04  Commissioner's Court Meeting on Stadium Funding

LETTER TO DALLAS CITY COUNCIL

Reference:   Where To Find Funding For A Stadium

Hello Council Representatives:

I did not see any of you at the Commissioners' meeting as they discussed "ways to obtain funding for a stadium".  That is surprising since some on the Council believe a stadium might be a great economic deal for Dallas.  No economic impact study, DOT traffic study, environmental impact study, impact on existing and planned ventures, etc. has been presented to anyone, yet.  In fact, no Commissioner even knows where the stadium might be built.

How can anyone state that such a stadium venture would be beneficial to any city at this juncture?

Documented studies of most publicly-funded stadium ventures in other major cities conclude disastrous results.  There are many good books and references on this subject that I've found on the web site http://www.nojonestax.com. They describe such (publicly funded) stadium failures around the United States.

As you know, most rental cars within Dallas county are rented by people who live in the county, or by businesses that operate therein.  Businesses and organizations who hold conventions or seminars within Dallas County will not accept high hotel rates and need only go a few miles out of county to obtain such reduced price services (as in the case of conventioneers who rent their vehicles out of county at DFW Airport).  Therefore, taxing those types of entities would defeat an opportunity for positive economic impact in Dallas.  Taxing any operation excessively defeats growth and stimulates decay. 

Most start-up businesses find bank or investor financing,  have a great service or product, hire lots of employees and thus contribute to the local and regional economy.  They certainly don't go out and beg local residents and existing businesses for non-interest bearing funding in the form of "governmental taxes". 

Perhaps a new type of tax could be invented whereby citizens contribute cash to build a stadium, and in return they receive interest on and return of that capital.  Whoops... that sounds like a corporate bond or stock.  There's one answer -- the new stadium owner could seek bank financing, sell corporate bonds or stock, and investors would get more than their initial investment back.

Those politicians who dreamed up the "Public Funding for Private Enterprise" scheme may need a refresher course in how capitalism operates.  Many in Dallas County do not wish to begin a "Socialistic County Government" technique for funding businesses for the wealthy. 

Additionally, should concurrent citywide events transpire such as the State Fair, Circus at the Arena, Homebuilders Convention, Football at a new stadium, commuters on the way to work, etc., then, the city gridlock might shut everything down at once. 

Of course, DART might be the savior.  Can DART parking lots handle that many vehicles?

Regards,

Rad Field, Dist. 11