Stadium renovations laugh at recession
By DAVID MARTIN
Jackson County Executive Mike Sanders has proposed a budget that slices $4 million out of the general fund. But in these austere times, the county-supported renovations of Arrowhead and Kauffman stadiums are feeling no pain.
The 0.375-percent sales tax that pays for the bulk of the stadium work is producing almost as much revenue as it did in 2007. The Jackson County Sports Complex Authority received a memo from its investment bank last week indicating that 2008 receipts from the sales tax are off by only $28,024 -- a drop in the bucket, considering the tax produced more than $32 million in '07.
The county committed $425 million to the project in 2006. The Chiefs, Royals and the state of Missouri are contributing an additional $200 million.
The sales-tax memo belies reports of gloom in the retail sector. Jim Rowland, the sports authority's executive director, tells me that he's been told that county has experienced a gain in businesses that produce sales tax, like the Power & Light District.
But unlike the city, which has to return half of the sales tax it receives from Power & Light to its developer, the Cordish Co., the stadium tax is exempt from tax-increment financing by virtue of a state law passed in 2006.
The stadium fund is performing so well, in fact, the teams will receive $9.9 million this year to pay for repair and maintenance outside in the construction agreement. I don't know too many fans who would complain if the Chiefs used a portion of their share of the money to clean out Carl Peterson's office.
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