Sharon Boyd, Editor/Publisher

          DallasArena.com
Your alternative to
The Dallas Managed News  
            
Another Way

  Home       Search     

               

BadDealLogo.gif (6018 bytes)


 

No Jones Tax
                             

06/10/04   A MODEST PROPOSAL

While the Dallas County Commissioners authorize a study to evaluate the benefit to the public of using county wide hotel occupancy and car rental taxes to help finance a new Dallas Cowboys Stadium, in the face of important deadlines, we believe it is fair to ask:

Why are the Commissioners still involved in the stadium issue at this juncture? 

After all, the Cowboys have announced their preference for locating their new stadium in Fair Park, a City of Dallas owned park facility, which obviously will require the active, direct participation of City of Dallas officials in the negotiations that necessarily will occur, and in the design and construction of the stadium. 
    James Northrup:
  
An inspired approach.
   Richard was the last of the great Dallas city managers.
   Darrell Jordan is the greatest mayor we never had. (Thus far.)
   If Jones cannot get a major city to support him, a countywide hotel tax fails.
  Ft.Worth ain't that dumb.
 

Would it not be preferable and much more efficient to eliminate this extra layer of bureaucracy if the stadium could be built without it?

We believe it can be, thus eliminating the need for a county wide referendum, and perhaps eliminating the need for a referendum in the City of Dallas. 

How would we propose the funds be raised for the public component of the stadium?s cost? 

Simply, the same way the City of Irving built Texas Stadium, using seat options and revenue bonds, essentially having the stadium financed by those who intend to use it.

The Cowboys have said the stadium will cost approximately $650,000,000 and they expect the public to come up with around $425,000,000 of that amount.  To keep the math simple, assume in a 75,000 seat stadium that 25 year options for the best 40,000 seats, entitling the owner to purchase a Cowboy ticket and perhaps a ticket for other events such as the Cotton Bowl Classic, for the seat covered by the option, could be sold for an average price of $10,000.  That would yield $400,000,000. 

Revenue bonds attached to the seat options, which the option purchaser would be required to purchase, issued on terms favorable to the City of Dallas in the average principal amount of $625 would yield the remaining $25,000,000.  The options could be detached from the bonds, allowing someone who wanted to sell his option the opportunity to do so. 

The Cowboys would pay rent to the City of Dallas in an amount sufficient to pay off the $25,000,000 bond debt in 40 years.  The duration and price of the seat options and the face amount of the bonds we have used could vary due to market conditions, of course.

Since the City of Dallas? tax rate would not increase or otherwise be affected, no referendum would be required.  No hotel occupancy or car rental taxes would be needed.  Those two important industries would not oppose the stadium project and would probably enthusiastically support it.

We believe this plan offers a practical and fair way to finance and construct the very best all-weather, multi-use stadium in the world for the Dallas Cowboys and the citizens of Dallas. 

We urge the Mayor and City Council of Dallas to seize the initiative and negotiate directly with the Cowboys, to the end that a City of Dallas / Dallas Cowboys partnership to build this stadium will become a reality in time for the Cotton Bowl Athletic Association to submit its application to join the Bowl Championship Series this December,  and so that Dallas can get in line for future Super Bowls, Final Four Tournaments and other special events at its magnificent new facility.

                                                   Darrell Jordan

                                                  Richard Knight

 

                                        

    





                            

 

  Ward politics is the Devil's key to the soul of the city council.  It is how some council members got themselves in trouble in the past.  It is the bait that will get others in trouble in the future. 4/6/8