Amidst lockout, arena commission charges forward with economic benefits report
At a press conference today from the Sheraton Grand Hotel in Downtown Sacramento, the regional arena commission, recently renamed Think Big Sacramento, released a study identifying the economic benefits of a new entertainment and sports complex. According to the report, the key findings are:
- $157 million in revenue for the entire region on an annual basis, including $100 million in Downtown Sacramento, $116 million to the City of Sacramento, $131 million to the County of Sacramento and $157 million to the greater Sacramento region.
- Over a thirty year period, the Sacramento region will receive over $7 billion in economic activity.
- 3.1 million new visitors to Downtown Sacramento annually.
- An increase of over 300,000 guests to hotels within walking distance of a new downtown arena, should they spend at least one evening overnight in Sacramento.
- Fiscal benefits for government agencies created by the three-million new visitors include $6.7 million annually generated by $5.8 million in sales taxes over $900,000 in transient occupancy taxes. Additional revenue would be expected to be generated by increases in other sources of government.
Among those present today was Think Big Sacramento’s Executive Director Chris Lehane. He said the commission hopes to announce a public-private financing model by the beginning of September. And with the NBA lockout set to take effect at midnight, Lehane was asked if a work stoppage is a concern regarding the project’s momentum.
“Obviously (we’ll have to) deal with a potential lockout situation,” Lehane said. “Obviously we’re aware of it and cognizant of it. But at the end of the day, we’ve made it pretty clear that this is not solely about building a facility for a professional basketball team. This is about what makes sense for the broader region and specifically what other types of civic benefits can be derived from this.”
Also notably in attendance was State Assembly Member Roger Dickinson, Sacramento Councilman Rob Fong and the report’s author Cathleen M. Dominico. She is managing partner of Capitol Public Finance Group – “a full service, independent public finance consulting firm head-quartered in Sacramento.”
After the jump, audio of Lehane and Dominico addressing media questions and a link to download the report.
Download economic report here.