A Stadium in Fremont? A Stadium in Fremont? What Would it Really What Would it Really Cost?Cost?

Presented by Fremont Citizens Network

Updated: January 21, 2010

Stadium SitesStadium Sites2008:

◦Pacific Commons2009:

◦Warm Springs◦GrimmerxOsgoo

d2010:

◦Warm Springs◦GrimmerxFremo

nt

James Leitch Elem.1.5 mi*

Warm Springs Elem.2.0 mi*

Weibel Elem.0.6 mi*

Grimmer Elem.2.0 mi*

Hirsch Elem.Horner MiddleIrvington High

2.2 mi*

* Estimated distance

Threat to “Quality of Life” Threat to “Quality of Life”

Personal safety - Crime and vandalism

Decreased property values

Impact to schools

Increased traffic/commute time

Increased homeowners insurance

Parking

Perceived BenefitsPerceived Benefits

Economics ?Jobs ?

Put Fremont on the MAP ?

$EconomicsEconomics

A’s Claim

◦ Economic boost

◦ Increased sales-tax revenue to Fremont

◦ Job opportunities

Reality

ALL existing economic research says ballparks DON’T bring:

◦ New businesses

◦ New jobs

◦ Boost in spending (substitution effect)

Stanford University economist, Roger Noll:

“Taxpayers should view new stadiums as a consumption expense, NOT an investment that will produce more jobs and local business.”

* http://news-service.stanford.edu.pr/97/971218stadiums.html

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Comment from EconomistComment from Economist

University of Chicago economist, Allen Sanderson:

“If you want to inject money into the local economy, it would be better to drop it from a helicopter than to invest in a new stadium.

* Michael O’Keeffe and T.J. Quinn, “The house that you built: Owners, pols play games with billions of taxpayer dollars,” New York Daily News, October 12, 2002.

JobsJobsPer A’s

◦13,000 temporary construction jobs – “Ballpark Village”

◦Stadium alone 432 full-time A’s employees – average

salary $26,000 and not available

Part-time - seasonal, temporary, low-paying

No NEW full-time stadium jobs!

Cities in the RedCities in the RedStadium Location Cost ($M) Public Subsidy ($M) Year

US Celular Field Chicago $150 $150 1991

Oriole Park @ Camden Yards Baltimore $235 $226 1992

Jacobs Field Cleveland $173 $152 1994

The Ballpark @ Arlington Arlington $191 $153 1994Coors Field Denver $215 $161 1995

Chase Field Phoenix $355 $270 1998

Safeco Field Seattle $517 $393 1999Comerica Park Detroit $290 $145 2000

Minute Maid Park Houston $266 $180 2000

Miller Park Milwaukee $414 $324 2001

PNC Park Pittsburgh $233 $193 2001

Great American Ballpark Cincinnati $361 $300 2003

Citizens Bank Park Philadelphia $346 $173 2004

Petco Park San Diego $411 $288 2004Nationals Park Washington $611 $611 2008

Citi Field New York $850 $263 2009

New Yankee Stadium New York $1,300 $507 2009Target Field Minnesota $522 $428 In-Progress (2010)

Marlins Ballpark Miami $515 $360 In-Progress (2012)

Rays Ballpark Tampa $450 $297 In-Progress (2012)

* www.LeagueofFans.org** en.wikipedia.org

ExamplesExamples

Stadium Location Cost ($M) Public Subsidy ($M) Year

The Ballpark @ Arlington Arlington $191 $153 1994

Safeco Field Seattle $517 $393 1999

Petco Park San Diego $411 $288 2004

New Yankee Stadium New York $1,300 $507 2009

Costs to Costs to Taxpayer/ResidentsTaxpayer/ResidentsAT&T Park - privately funded, BUT received:

◦ $10M in tax abatement from City of SF

◦ $80M in infrastructure upgrades

◦ $1.5M for solar panels installed inside the park in 2007

ALL TAXPAYER MONEY!

If Fremont paid the $80 million,Cost per Fremont family = $1,600

* “AT&T Park” – en.wikipedia.org

** “Giants to put solar panels on AT&T Park” – sanfranciscogiants.mlb.com

Other “Hidden” CostsOther “Hidden” CostsLost business for local retail – sales tax

Increased police services & infrastructure

Building a new command center inside the ballpark to deal with Emergency Services

Lost opportunity costs

◦ Business development in lieu of stadium – e.g., SC study

◦ Housing development adjacent to the new BART station

Crime/VandalismCrime/Vandalism

0.5 mi radius

* www.crimereports.com

AT & T Park

Incident Type Number Disorderly Conducts 1,245 Alarm 936 Assault 678 Theft from Vehicle 296 Breaking & Entering 208 Theft 202 Weapons Offense 131 Theft of Vehicle 121 Robbery 53 Death 50 Assault w/ Deadly Weapon 35 Missing Person 32 Sexual Offense Related 21 Vehicle Recovery 16 Other 2,720

Total Number of Incidents = 6,744

2008 Data

Fremont Public SafetyFremont Public SafetyFremont has the smallest ratio of police

officers to residents for cities of similar sizeCity of Fremont 2008 budget: ~$130

millionPublic Safety: 68% of Fremont budget

(more than $88 million)

If our police can’t respond to alarm calls, how will they

manage all these additional crimes?

A’s Mitigation for Public A’s Mitigation for Public SafetySafetyA’s will provide private security

around stadium only on game days, and only at game times

A’s will provide $1 million to the City’s General Fund to cover ALL city costs

““Hidden” Costs: Public Hidden” Costs: Public SafetySafety Increased overhead

Investigation of incidents

More CHP patrols

Monitoring/compliance of noise and illumination at the stadium

Additional security for schools

A’s will NOT pay for these “hidden” costs!

YOU and I WILL!

TrafficTrafficHey, Kids!

We are going to win the race!

TrafficTraffic10,000 more cars @ the exact

same time, going to the exact same location

At least 45% of days (Apr-Sep)

Costs to General Fund:

◦Repair & maintain infrastructure

◦Investigation of accidents

◦Investigation of reported incidences

As Proposed by A’sAs Proposed by A’sNo property tax for the Stadium

“… The ballpark is assumed to have some form of underlying public ownership, and not be on the property tax rolls…”

Investment of this magnitude should generate $5 million in property tax ($175 million over 35 years)

Another way public funds are given away!

* A’s Benefit Analysis Report

WHO will Benefit?WHO will Benefit?Lew Wolff & Co. – new stadium raises value

of team

Lew Wolff & Co. - rezoned lots for 3,200 residential units

MORE than $2 BILLION!

Builders & contractors working for Wolff & Co.

City officials - who want to boast that they brought a professional stadium to a small city like Fremont.

In SummationIn SummationNo ECONOMIC benefitsNo new JOBSUntold risks to get on the MAP

Why take the risk?

What Can YOU Do?What Can YOU Do?1. Educate yourself –

FremontCitizensNetwork.org2. Send letters (to MLB, city council)3. Show up for protests4. Spread the word5. Volunteer

LET’S NOT BE THE NEXT CITY IN RED INK

"Never doubt that a small group of dedicated people can change the world because it is the only thing that ever has."

- Margaret Mead

QUESTIONS?QUESTIONS?

Does a Stadium Make Sense Does a Stadium Make Sense for Fremont?for Fremont?No real job creationDrain on City General FundReduced revenue“Hidden” costsTraffic congestion

The answer is “NO”!

HP Pavilion vs. Cisco FieldHP Pavilion vs. Cisco Field Incidents reported in 2008 within ½ mile radius of each site Traffic-related

◦ 1,072 incidents (HP Pavilion) ◦ 12 incidents (Cisco Field-WS) ◦ 49 incidents (Cisco Field-PC)

Disorderly conduct◦ 2,019 incidents (HP Pavilion) ◦ 26 incidents (Cisco Field-WS) ◦ 27 incidents (Cisco Field-PC)

Crime ◦ 2,000 incidents (HP Pavilion) – Jan-Feb only◦ 72 incidents (Cisco Field-WS)◦ 152 incidents (Cisco Field-PC)

* www. Crimereports.com