Saturday, July 10, 2010

Mesa Remains Silent on Direct Benefits of Cubs Spring Training

Now that it appears that there is a very real possibility of the City of Mesa footing the entire bill for the cost of the proposed Chicago Cubs spring training facility, this is probably a good time to figure out just exactly what in the way of revenue would flow to city coffers if the project goes forward. Oddly enough, the studies commissioned by the city never addressed this particular issue. While various numbers are quoted by city officials, none of them pertain to the revenue which might be anticipated to be received by Mesa from taxes and revenue sharing.

The statistic most often quoted by Mesa officials is the sum of $138 million which represents a recent study’s estimate of the total amount of economic activity generated by Cubs spring training statewide. It is important to note that economic activity is not income. The same study estimated that the total amount of tax income created as a result Cubs spring training was about $5 million statewide. This includes sales tax, payroll taxes, gasoline taxes, etc. Mesa’s main source of revenue would be from two sources; sales tax and hotel bed taxes. Because the rate of tax at the city level is far less than at the state level, Mesa’s income would be a fraction of the $5 million figure. Just how small this number is explains why nobody has bothered to hazard a guess.

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