Link to the agreement
From Pages Page 7 & 8
Pro Forma Overview:
The construction of the ballpark is designed to be self-supporting. The City will create a District Improvement Financing (DIF) area around the ballpark to capture new revenue created by the project. New revenue within the boundaries of the DIF will be used to pay back the bond. For example, the City’s Pro Forma calculates the following new revenue for year 2022, the first year of full debt service payments:
Sources Amount
Ballpark Taxes $ 147,167.00
Parking Revenue $ 845,650.00
LF Boutique Hotel & Retail Taxes $ 313,060.00
WG South Hotel, Apartments & Retail Taxes $ 1,628,067.00
Personal Property Tax $ 11,526.00
Use and Occupancy Tax $ 571,388.00
Advertising $ 156,000.00
8 City Revenue Events $ 40,000.00
Source Total $ 3,712,858.00
Uses Amount
Debt Service $ 2,733,000.00
Operating Costs $ 96,920.00
5% contingency $ 141,496.00
Use Total $ 2,971,416.00
Surplus $ 741,442.0
In 2022, the City will owe $2,971,416 towards the bond payment and operating costs for the ballpark. Therefore, in 2022, the City is estimating a surplus of $741,442 which includes a 5% contingency. (The sources and uses will fluctuate from year to year.)
_________________________________________________________________
Fiscal 2022 runs from July 2021 thru June 2022.
In other words it starts less then 24 months from today.
We feel the park will be down in time and can only assume that the projected revenues for the ballpark will be realized:
How are we doing on the public-private partnership agreements for the development projects around the ballpark.
Stay tuned...
From Pages Page 7 & 8
Pro Forma Overview:
The construction of the ballpark is designed to be self-supporting. The City will create a District Improvement Financing (DIF) area around the ballpark to capture new revenue created by the project. New revenue within the boundaries of the DIF will be used to pay back the bond. For example, the City’s Pro Forma calculates the following new revenue for year 2022, the first year of full debt service payments:
Sources Amount
Ballpark Taxes $ 147,167.00
Parking Revenue $ 845,650.00
LF Boutique Hotel & Retail Taxes $ 313,060.00
WG South Hotel, Apartments & Retail Taxes $ 1,628,067.00
Personal Property Tax $ 11,526.00
Use and Occupancy Tax $ 571,388.00
Advertising $ 156,000.00
8 City Revenue Events $ 40,000.00
Source Total $ 3,712,858.00
Uses Amount
Debt Service $ 2,733,000.00
Operating Costs $ 96,920.00
5% contingency $ 141,496.00
Use Total $ 2,971,416.00
Surplus $ 741,442.0
In 2022, the City will owe $2,971,416 towards the bond payment and operating costs for the ballpark. Therefore, in 2022, the City is estimating a surplus of $741,442 which includes a 5% contingency. (The sources and uses will fluctuate from year to year.)
_________________________________________________________________
Fiscal 2022 runs from July 2021 thru June 2022.
In other words it starts less then 24 months from today.
We feel the park will be down in time and can only assume that the projected revenues for the ballpark will be realized:
- Ball park taxes 147,167
- Advertising 156,000
- 8 City Revenue Events 40,000
- Parking Revenues 845,650
Total 1,188,817
The rest of the revenues are dependent on an awful lot of private developments over the next 24 months.
- Hotel & Retail taxes 313,060
- Hotel, Apartment & Retail taxes 1,628,067
- Personal Property tax 11,526.00
- Use and occupancy tax 571,388
Total 2,524,041
______________________________________________________________
How are we doing on the public-private partnership agreements for the development projects around the ballpark.
Stay tuned...
Comments
First, I am fairly bullish on Worcester and think that it is reasonably likely that the tax revenues generated in the neighborhood will be sufficient to cover the bond payments.
That being said, being able to cover your bills is not the same thing as being a sound investment. Kelley Sq. was rapidly gentrifying before the stadium, and therefore there is no reason to believe that the stadium is causing economic development in the area but is instead simply occurring at the same time. Furthermore, there is reason to believe that the stadium district will cannibalize business from other areas of the city. A person who goes to a new restaurant in the ballpark district instead of a restaurant on Shrewbury St. or downtown, or an out-of-towner who stays in one of the new hotels instead of another hotel in the city is down having their entire tax bill going to the stadium instead of the city.
Similarly, all of the residents of any new housing in the neighborhood are dedicating their property taxes towards the stadium instead of streets, police, fire, schools, etc. All of those apartment taxes that usually go towards providing services to the people who live there are now going to pad the pockets of the WooSox owners, millionaires and billionaires who didn't want to pay the full cost of running their own for-profit business. Instead, those services will be paid for by the residents in the rest of the city.
So again, the question of whether the city will be able to pay for their $75 million handout is a completely different one than whether the city should have just given $75 million to a group of mega-rich out-of-town businessmen.
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