Excerpt from Thesis:
It is obvious today that these projections, both equally for the revenue streams and for the stadium costs, were optimistic. The State had applied these hopeful figures since the basis for their argument to make the arena. Moreover, County economist Alfie Meek defined other benefits to the Region. He calculated $15 million annually in new monetary activity and 200 new jobs that might pay $6. 5million in new personal income (Gwinnett County, 2008). These statistics were based partly on impacts seen from your Gwinnett Area, home of a minor group hockey team.
Despite the price overruns and high likelihood of future earnings shortages, bringing the team to Gwinnett probably will have a positive impact. The County was eager to create a stadium, however they made their particular decision based upon relatively optimistic numbers. The high end approximate for presence revenue, for example , was $468, 000; the county used $400, 500, very close to that high end estimate. The county increased the expense of the stadium under the assumption that a AAA team might draw a larger attendance than an independent group. However , they will approved significant improvements to the stadium after construction had begun, which in turn resulted in the $19 , 000, 000 supplemental money. The Region is less likely to recoup its investment in the arena as a result of these kinds of year-over-year shortfalls and the additional $19 million outlay. Taxes revenues for the $15 mil of improved economic activity are not likely to cover the shortfall. Nevertheless , the project’s contribution to the overall regarding the Gwinnett economy, especially during this period of economic difficulty, will be a great for the community. The hockey team will be a draw for businesses and residents, and the contribution to the GROSS DOMESTIC PRODUCT of the location will offset the direct cost towards the county. The citizens of Gwinnett Region are, essentially, subsidizing the project to be able to facilitate economic growth and an increase in cultural prestige to get the region.
For part, the Atlanta Vaillant benefit greatly from the package. They added nothing to the price tag on building the stadium, but will received solid revenue avenues from its operation. The Richmond, VA, stadium was outdated and would not provide the form of strong earnings streams instructed to profitably operate a minor little league baseball franchise. The Braves were essentially breaking also there. Beyond the financial rewards, there are snowboarding benefits as well, since the Chevaleresque will have quick access to players from their top rated farm golf club so near home. The key reason why that the Braves did not contribute to the cost of the stadium happens because the Chevaleresque had solid negotiating electricity relative to Gwinnett County. The County experienced already chose to pursue a stadium and saw the involvement from the Braves since adding significant value towards the project. For their part, the Braves would have received related benefit by simply relocating their minor group club to the number of different metropolitan areas. The Region needed the Braves more than the Braves required the State. The Vaillant used this same formula for the moving of two of their other minor little league clubs. It really is unlikely, therefore , that the Vaillant were ready to share some of the stadium costs despite the fact that they are going to benefit equally financially and operationally in the relocation to Gwinnett.
Performs Cited
Not any author. (2008) “Gwinnett Braves” Gwinnett Region. Retrieved 12 , 7, 2008 at http://www.gwinnettcounty.com/cgi-bin/gwincty/egov/ep/gcNavView.do?path=Home|Hidden+Page|Gwinnett%20Braves
Tucker, Harry. (2008) “Gwinnett stadium deal ‘lucky coincidence’ for Braves” Atlanta Journal-Constitution. Retrieved Dec 7, 08 at http://www.ajc.com/metro/content/metro/gwinnett/stories/2008/01/15/bravesdeal_0116.html
Tucker, Harry Redmon, Jeremy (2008) “Ballpark figures achievable Gwinnett Stadium” Atlanta Journal-Constitution
Retrieved December 7, 08 at http://www.ajc.com/metro/content/metro/gwinnett/stories/2008/04/19/metgwinnettdeal_0420.html
No publisher. (2008) “Fitch Rates Gwinnett County Devel. Auth. (Georgia) $33MM Revs ‘AAA’; Prospect stable” Reuters Retrieved 12 , 7, 08 at http://www.reuters.com/article/pressRelease/idUS204073+20-Feb-2008+BW20080220
Pearson, Jordan. (2008) “Gwinnett County: Economy hinders ball field naming” Fox Sports activities. Retrieved Dec 7, 08 at http://msn.foxsports.com/mlb/story/8831534/GWINNETT-COUNTY:-Economy-hinders-ball-field-naming-
Young, Camie. (2008) “Stadium budget enhance OK’d” Gwinnett Daily Content. Retrieved January 7, 08 from http://gwinnettdailypost.com/main.asp?Search=1ArticleID=49881SectionID=6SubSectionID=S=1
