Palin's Sports Complex in Wasilla - Triumph or a 30k family buying a 1mil home?

[jefa_IHB]

I'm trying to sort through the morass of the Wasilla government budget to learn about the Sports Complex Palin spear-headed.



There's a lot of snark out there about Palin not properly vetting the land deal, which I'm not really interested in. I was just trying to see if the project made sense at all.



The original bond was for 14 million, but it looks like they've had to raise 19 million total since they created the project (when you add legal of around 2 million, new additions of around 3 million).



The idea was that the complex would benefit the community, promote growth, bring in dollars from outside the community etc etc.



From what I gather the complex has an operating shortfall of about $120k a year. The report says it generates 2.4 million in additional dollars spent in the city of Wasilla, and generates new tax revenue of about 120k a year. (Actually a little less, but I'm going to keep the numbers even b/c I dont' feel like nitpicking).



So what do we have? A government owned entity, run and managed by the government. It generates roughly as much tax revenue for the government as it costs the government to operate. However, you still have all this debt outstanding (and I can't for the life of me figure out what the remaining debt is). They're spending roughly 600k on the debt this year and it looks like 700k next year. And they're spending more money upgrading the site (new parking, ballfields etc).



What do you guys think? Smart move or boondoggle?



19 million dollars in debt.

2.4 million in new revenues to the community.

Taxes pay for operating expenses.

Taxpayers pay for the debt. (Someone somewhere said it turns out to be around $3k per resident... which would include all the children that live there I assume.)





Also, I found it interesting that the majority of Wasilla's expenditures come from Federal money. So maybe we should really say that the United States is funding the debt on the sports complex.



Let me know if I'm way off base. The reports are confusing.

 

[green_cactus_IHB]

How about that $600mn bridge to Wasilla?

 

[socalmd_IHB]

how about the millions for that airport that has population 100





but oh wait I forgot they're "mavericks"





more like hypocrites



McShame/Failin

 

[WINEX_IHB]

[quote author="green_cactus" date=1221642307]How about that $600mn bridge to Wasilla?</blockquote>


Obviously you are missing the larger point. Are you expecting Sarah Palin to be against all bridges? That's kind of bizarre.

 

[jefa_IHB]

Very confused still, but pulled out some interesting wasilla tidbits. I was wrong about federal money for the yearly budget. Fed money comes in for one time capital improvement projects.



There is a 5 year capital improvement plan (page 25) which outlines 66 million in new capital projects. In 2007, they expect to spent roughly 11.7 million of which 8 million is federal money. and around 1.5 million is local money. The next four years the local amount grows slowly, while the bulk of costs is paid by the feds or the state. (It seems to flip flop).



For the sports complex section, they would like to add what looks like 4 million dollars worth of improvements: a ballfield, a master plan, a parking lot & RV park, a portable floor, stadium and trails. Of this 4 million dollars, they will pay roughly 400k, and will get the state to pay them 3.6 million. (page 24 and 25) No money from the feds on that one. The Feds are paying for an 8 million dollar library it looks like.



On page 258, it shows operation and transfer budget for the sports complex at $870,947, and debt service at 1,807, 5556, for a total fund of 2,678,503. Total budget for the city is 18.6 million.

The sports complex appears to cost more than the entire public works budget (roads, property maintenance at 2.1 million). Public Safety is 4.4 million of which 2.2 million is for community policing.



On page 255 it shows the comparison in tax revenue for the last ten years.. It notes that the abrupt shift from 6.5 million in tax revenue to 8.7 million tax revenue in 2002 was due to the tax increase to service the Sports Complex debt. It was a .5% sales tax increase which the voters passed. (I read somewhere it was like 3 hundred something people to 2 hundred something people. 340 to 260? Something like that).



The debt as of 7/1/2007 was 9.1 million (page 171) The General Admin cost in 2007 was proposed at 865k. And the Operating Revenue was 720k with a shortfall of 144k which was made up through government transfers. (page 170).



It also says ". Even though we are transferring monies to the Sports Complex, a

study of the impact of the Complex on the economy of the City of Wasilla concluded that the

economic activity generated by the Complex generates over $117,000 in sales tax per year to

the City of Wasilla with total local spending to the business community estimated to be 2.68

million dollars."



From a community business perspective, I would say they've spent about 19 million (without interest) so far, with a current cost of 2.7 millionish that generates 2.7 million new dollars spent in the community. They have plans to spend 3.6 million of someone else's money and 400k of their own to make it even more desirable, to generate even more revenue for their community. They just started operating in 2004 (or 2005), and started payments in 2002, so they DID have about 4 years of very high payment with very little to show for it (but that's what happens with a new business).



Since they aren't taking these dollars from vital capital improvement projects (like cell phone service, emergency services, libraries, roadworks which it appears that the federal government and state government pay for them). I would say this isn't a bad use of their dollars after their debt payment is done, which will happen in a few years. They'll be saddled with an operating shortfall, but 200k or less is more than worth having 2.6 million or more new dollars in your community, I would think.



The overall impression I get is that Palin created a large government run entity through raised taxes that long-term will generate jobs, income, and other good things for her community. Though it may never be profitable from a business perspective, I think it will be profitable from a community perspective. By hiring people who generated tons of earmarks for her community, she was able to have other high priority projects funded (like roads), so that the tax burden wasn't burdensome for a less vital project like a sports complex (because they weren't having to pay for their other infrastructure). The new government of Wasilla appears to be continuing this path today.

 

[PITS founder_IHB]

I wouldn't give a plug nickle if the complex is on contaminated land. The nearby Smith Ball fields were developed on top of the old Knik Landfill. Does anyone have information on land-use of either of these properties? Our organization, People Investigating Toxic Sites, has files of many sports complexes that were built on old dumpsites. Most closed dumps contain carcinogenic chemicals and highly explosive, highly flammable methane gas. Our list of cancer clusters in communities near closed dumps is getting longer and longer. Was Gov. Palin the Mayor when Wasilla approved development of a ball field for the closed Knik Landfill?