WBJ: Following their inaugural season, the WooSox seek to build on COVID-impacted attendance

 

 

 

The Red Sox had a great year 

The taxpayers had a bad year

 

 For fiscal 2021, which ended June 30 and included the first two months of the WooSox season, the city needed the stadium taxing district to generate about $640,000 to cover the remainder of the $2.1-million stadium bond payment not already paid for by the capitalized interest. 

The revenue from the ballpark district fell short, generating about $391,000.

 

Let us translate:

  1. this year we have a bond payment of $2,100,000
  2. we took $1,460,000 that we borrowed to pay this first bond payment (capitalized interest)
  3.  leaving us $640,000 to pay 
  4. we only raised $391,000
  5. short $249,000

 To say we were only $249,000 short is a true reflection of how short we really were.    We borrowed $1,460,000 that we are calling "capital interest".   You need to add these two numbers together.

We were short $1,809,000 to cover the $2,100,000 bond payment. The DIF only generated $391,000!!!        

Keep in mind:

  1. Bond payments increase each year
  2. Believe next year (year 2) is that last year we have capitalized interest

 


 

 

Comments

Gary Samela said…
Does Clark University's purchase of the old Diamond Car property mean it will be taken off the tax rolls?
Anonymous said…
Clark purchased Diamond ? Were they one of the Colleges that Mike O'Brien got a PILOT agreement with?
Back to the WBJ article, the rich get richer and we taxpayers get stuck with the bill. This comes as no surprise it's Worcester.
Anonymous said…
Worcester Business Journal reports that the assessed value of the properties is $2.9 million. After the ballpark audit is completed someone needs to audit the Assessor's values.
Anonymous said…
The quote from Matheson that the City is in a pretty significant hole tells it all. Does the City even realize they are in a hole. From their comment that the reserve will grow to $3.2 million and that needs to cover payments of $3.9 and $4.8 I don't think they know how bad this is. They should show us their financials.
Anonymous said…
There is a comment in the T&G that Clark has a PILOT agreement with the City. A tax exempt university will pay more taxes on an empty property than a for profit business which we built a $175 million ball park for. Think about that for a minute and tell me this is not a sweet heart deal.