Update On VZ Center Upgrades
In late January, this blog first mentioned Abe Pollin’s request to the city for $50M to pay for Verizon Center upgrades. The city has introduced legislation calling for ticket tax parity with the Nationals to fund the upgrade costs. As always, the devil is in the details but barring any outrageous terms and as long as all the funding comes via the ticket tax or revenue generated inside the arena, we don’t see any reason for the D.C. Council to full suplex this legislation and give it the takedown.
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Anyone know where I can get a copy of the bill that was introduced yesterday? I can’t find it on the DC Council website.
Pollin did feed at the public trough and continues to — $100 million for land acquisition/infrastructure/site preparation in the initial phase as well as continuing tax breaks, discount lease (Verizon Center is on city-owned land) and police OT (that other events are charged for).
DC already has an extremely high per capita debt load and this debt is designed primarily to spiff up/increase the revenue associated with luxoboxes. There’s no public benefit. Let Pollin pay for his own upgrades and recoup the costs from box owners.
Personally, I prefer having the Verizon Center in DC rather than the previous arena in Landover, MD. I believe that is worth something substantial to DC residents.
If the land belongs to DC, then it seems to me that Abe Pollin and his company are mainly making money from the operating profits of the Arena and not the inrease in the value in real estate. If we agree that it is important to maintain the quality of the arena to be competitive with arenas in other major cities (lest concerts and shows bypass DC, and tax revenue go elsewhere), and if Washington Entertainment is mainly making money off of the operating profits, then it makes economic sense for the District–as essentially a business partner of Washington Entertainment– to play a role in helping to finance these improvements. Patrons will be paying for this upgrade either way (by a tax or by ticket prices).
Pollin’s not threatening to go anywhere, other cities are removing skyboxes (which, post-Abramoff, are in disrepute), and competition among venues for events is primarily local anyway –it’s not among major cities. Additional subsidization of Verizon center doesn’t make sense.
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As someone who worked in this area in the late 80s before the Verizon Center and who now lives here I give mucho props to Mr. Pollin for what he has accomplished without feeding at the public trough.
But that said why must he do so now? If the improvements are a good idea shouldn’t he fund them himself? Why can’t he float a commercial bond and take on the risk. Why must the DC taxpayer be left holding the bag while he gets the reward risk free?
The city has already given him a huge break all these years by not charging the full 10% entertainment tax.
DC has a limited borrowing capacity. When it does borrow it should be for projects that benefit the public good. I have a hard time including sports teams into that definition, especially when there are more pressing matters at hand.