Sunday, October 10, 2010

Mesa and Cubs Promote Statewide Economic Impact

Like many of the baseball teams in the Arizona Cactus League, the Chicago Cubs attract a sizeable number of out-of-state fans for spring training contests. In addition to attending baseball games, these tourists spend money on accommodations, meals and other attractions in Arizona. The figures most often quoted by Cubs boosters are $138 million in annual statewide economic impact and $5 million a year in statewide tax revenue. The City of Mesa claims these numbers support the spending of $100 million, plus financing costs, to construct a new spring training complex for the Cubs.

Unfortunately for the residents of Mesa, the amount of statewide spending and statewide tax revenue are immaterial to the financial viability of this development. The only public funding source is the City of Mesa. So, how much tax revenue will flow into city coffers because of the Cubs presence? Oddly enough, the tens of thousands of taxpayer dollars spent on studies never addressed the matter and city officials have not responded to specific questions on this point. The fact is, most of the tourist dollars will be spent outside of Mesa and the city will benefit by only a small fraction of the $5 million in tax revenue.

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