WRA MEeting Friday: No Attachments

When You Wish You Were Wrong



Remember when the $100,000,000 million dollar stadium was going to cost us $90,000,000 million, but be "revenue neutral" due to the $91,000,000 from "Stage 1" private development.    

Since that time, the cost has increased to $130 million, and the City of Worcester taxpayer's cost increased to $110 million dollars.    

Even at  $110,000,000 million cost to taxpayers we should be fine right?    What is an extra $20,000,000?


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Back to our hired gun, Zimbalist, in the Field of Schemes:

Basically, Zimbalist says that he hasn’t changed his tune on stadium subsidies — he still thinks they’re almost always a waste of cash — but the extra development that was promised alongside the stadium should generate lots of tax revenue, so Worcester should come out even.


In other words Zimbalist based his pro-forma/ approval on the "extra development".  What if the reality is that we have had nothing to date, will have nothing in 2020 and we do not see anything in 2021.    Would he now think that this stadium subsidy is a waste of cash?

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Meanwhile on this blog, way before COVID, we have pointed out:


  1. We do not own the land where the stadium is being built
  2. We have not private development agreements with the developer who is is going to make this project "revenue neutral"
  3. We do not have a signed lease with PawSox

Truth be told, we hoped that we would be proven wrong.    That the stadium would be built on budget full of fans surrounded by $91,000,000 million of private investments costing the taxpayers nothing.   

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Today, here are the facts:
  • The whole basis of Zimbalist approval of the project, $91,000,000 of private investments, is not going to happen any time soon
  • We do not own the land where the stadium is being built
  • We have no private development agreements with Madison
  • We have no lease with the PawSox
  • PawSox have not even paid there first $3,000,000 installment payment due last December

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Here are some new facts that we will see soon:


  1. The PawSox will not sign a lease paying us $100,000 per month, when their revenues are dependent on ticket sales, which are not going to happen during COVID. 
  2. There will be another $15,000,000 cost overrun coming soon
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Just when we thought things could not get worse, we get the Skansa letter. 

We look forward to the updated Auditor's report and the new pro-forma.   We are sure these reports will show this project to be "revenue neutral".     The truth is that there is no way in hell that this DIF generate enough revenue to cover the notes on this project?     

There is just no way!!!     Keep in mind the original pro-forma shows:

  1. debt service starting at $2,77,0000 in year 1
  2. increase every year 
  3. finally ending at $5,111,000 in year 30
That was based on $90,000,000 of debt not the current $110,000,000.  Oh yeah, the PawSox have only committed to a 15 year lease, but technically have committed to nothing since theyt have never signed any lease?





Right now this project is going to be a financial disaster for the City of Worcester.  We wish we were wrong..


 

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