The latest pledge by the City of Mesa towards financing the Chicago Cubs spring training complex has virtually no chance of showing a return on the investment. Whereas the initial plan unveiled back in January stated that the State of Arizona would pick up at least one-half the cost of the development, the city has now committed to fund the entire public portion of this project in an effort to meet a July deadline regarding financing.
The primary way government agencies generate income as a result of business and development projects is through the receipt of taxes. Of all the money spent in connection with Cubs spring training activity only a portion is taxable and, of that total amount, just a small portion flows to cities. In the case of the new Cubs facility, most tax revenue would go to the state and county. Of the overall sales tax of 9.05% in Mesa, the city receives 1.75%. Also, keep in mind that money spent at away games in another jurisdiction will not benefit the City of Mesa. In the end, Mesa will get far less than $1 million per year in revenue from this enterprise while paying out many millions of dollars annually in bond debt service to pay off the stadium and practice fields.
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