Major League Winners: Using Sports and Cultural Centers as Tools for Economic Development / Edition 1

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Major League Winners: Using Sports and Cultural Centers as Tools for Economic Development chronicles the challenges overcome by civic leaders who are using the development of sports and cultural venues to help create diversified, vibrant, and attractive economic bases within their communities. Drawing on his 30 years of involvement with such projects, Mark Rosentraub presents case studies that demonstrate the innovative private-public partnerships needed to create win-win scenarios. These include how:

  • Indianapolis and Cleveland now boast new images as well as new downtowns thanks to innovative sports and cultural venues
  • San Diego continues to revitalize itself through partnerships of shared risk and returns
  • L.A.’s resurgence makes the most of its location and its glitz
  • Columbus and Reading are proof that even midsized and smaller cities can leverage sports enthusiasm

A decade ago in Major League Losers: The Real Cost of Sports and Who’s Paying for It, Dr. Rosentraub educated us about the insidious nature of the great sports welfare machine. Now, he shows us that those lessons are well-learned. While no urban center will weather this current economic crisis unscathed, the areas that will suffer least and recover fastest are those that are attracting and retaining significant concentrations of diversely skilled human capital. Rather than just provide us with a brief escape from our problems, with the right leadership, sports and entertainment can create opportunities for our cities to reinvent and reinvigorate themselves.

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Editorial Reviews

From the Publisher
... illustrates through telling stories and meticulous research, the power of sports venues to generate economic development.
— Janet Marie Smith, Senior Vice President, Boston Red Sox and former VP of Development, Baltimore Orioles / Camden Yards

… the prescription for how to change the skyline of America’s cities … a must read for civic leaders.
— Charles Isgar, Los Angeles Coliseum

… refreshing departure from the ritualized ideological debates over public funding for sports, culture, and downtown development.
— Dennis R. Judd, University of Illinois at Chicago

… discusses the power that sports and other large gathering places have in helping economic recovery and development. Using the successes of many sports teams in how they help their town blossom and succeed, Mark S. Rosentraub says that these benefits are not a one way street, and that both the sports franchise and the city that hosts them must work together, and how they can avoid the pitfalls and failures that he discussed in his previous book, Major League Losers. Written with much experience, Major League Winners will enlighten those to the strong power that private and public partnership can bring to all those involved.
James A. Cox, Editor-in-Chief, Wisconsin Bookwatch, February 2011

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Product Details

Meet the Author

Mark S. Rosentraub is on the faculty at the University of Michigan, Ann Arbor, USA.

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Table of Contents

Preface xiii

Acknowledgments xvii

The Author xxi

1 Urban Change, a Loss of Centrality, and New Destinies for Downtowns 1

I Introduction 1

A The Era of Subsidies and Hope 2

B What Can New Facilities Do for a Region? 3

C Subsidies and Strategic Investments: The Difference Defined 3

II Sports, Entertainment, and Culture for Image, Attracting Human Capital, and Economic Development 4

III The Beginning of an End to the Need for Central Cities 5

A Population Change 5

B Rise, Decline, and Lessons Learned from Festival Marketplaces 7

C Indianpolis and a Civic Image Strategy 8

D Rise of Sports and Culture for Revitalization 9

IV Why Should Cities Care about Sports, Entertainment, and Culture? 10

A Human Capital and Amenities 12

B Are Sports, Entertainment, and Culture a City's Fool's Gold? 13

V Sports, Entertainment, and Culture: The Trinity for Redevelopment 16

A Cities, Sports Facilities, and Subsidies 16

B Franchise Values and Changing the System 20

VI Misplaced Revenues, Misplaced Values 22

VII Goal and Organization of This Book 24

Endnotes 26

2 Teams, Cities, Elites, and the Real Value of "Big-Ticket"Amenities 31

I A General Framework for Investments in Big-Ticket Items 31

II The Value and Appropriateness of Big-Ticket Items 35

A A City's Image 35

B Amenities and the "Creative Class" 36

C Amenities or Neighborhood Development? 38

III Amenities, Human Capital, and Economic Development 39

A Supply of Amenities 42

B Importance of Amenities 43

IV Organic Urban Change versus Planned Redevelopment 44

A Delayed Development or Stagnation? 45

B Growth Poles 47

V Business Leaders and Urban Redevelopment 49

VI The Unbalanced Playing Field between Teams and Cities 51

A What are Teams Worth? 51

B Implications of the Leagues' Control of the Supply of Teams 54

C How Did the Leagues Amass Their Economic Power? 56

VII Challenging the Leagues in Court, at the Statehouse, or in Congress 58

VIII Revitalization and Development as an Alternative to Subsidies 60

IX Summary 60

Endnotes 61

3 Indianapolis as the Broker City 65

I The Indianapolis Plan: Goals, Objectives, and History 65

II Indianapolis, Sports, and Redevelopment: What Was Built, How Much Was Invested, and Whose Dollars Were Spent? 69

A What Was Built? 70

B Who Paid How Much for the New Downtown? 72

III Has Indianapolis Been Changed by the Sports and Downtown Redevelopment Strategy? 75

A Maintaining Downtown Indianapolis 75

B Regional Economic Changes and the Centrality of Downtown Indianapolis 78

C Image of Indianapolis: Intangible Benefits and the Journey from "Indiana-No-Place" to Super Bowl Host City 87

IV Challenges on the Horizon: Subsidies and Revenues 90

V Indianapolis: The Broker City to Be a Major League Winner 94

Endnotes 96

4 Shared Risk, Shared Returns: San Diego's Unique Partnership for a Ballpark, Convention Center Hotel, and a New Downtown Neighborhood 99

I Introduction 99

A Fiscal Challenges for the Padres 100

B "Poisoned Environment" for Sports Subsidies 100

II The Padres and the "Need" for a New Ballpark 101

III Politics of San Diego's Sports World 102

IV Task Force II and the Generation of Substantial Public Benefits 107

V Public Benefits and the Stigma of Subsidies 107

VI Scorecard on the Ballpark District: What Was Built 112

VII The Scorecard: Taxes Generated 115

VIII The Ballpark District: Development, Land Use, and the Best Use of Urban Land 117

IX The Ballpark District and San Diego: Mutual Risk in a New Model for Public/Private Partnerships 124

Endnotes 128

5 A White Elephant, an Arena, and Revitalization: Using Location and the Glitz of L.A. LIVE to Rebuild a Downtown Area 129

I Introduction 129

II Thinking Outside the Box: Bringing the Lakers and Kings Downtown 130

A The Lakers, the Kings, and the "Fabulous Forum" 131

B The "Fabulous Forum" and Its Limitations 132

C Arena Economics and the Appeal of Downtown Los Angeles 133

III Downtown Los Angeles: Liabilities and Assets 136

IV Sealing and Selling the Deal 140

V Los Angeles' Investment and Returns 141

A Were the Taxpayers Protected? 144

B Rebuilding Downtown: Housing 146

VI Rebuilding Downtown Los Angeles: L.A. LIVE 148

VII Rebuilding Downtown: Other Iconic Projects 153

VIII Conclusions 154

Endnotes 157

6 Columbus, Major League Sports, and a New Downtown Neighborhood: A Failed Initiative and a Privately Built Arena 161

I Introduction 161

II Fighting for a Toe Hold in Professional Sports 163

A Sports Leagues and Their Placement of Teams in Cincinnati and Cleveland 164

B An Effort to Make Columbus Home to a Major League Team 165

III A Privately Built Arena, Real Estate Development, and a Unique Public/Private Partnership 166

A The Arena District Plan 167

B Financing the Arena District 168

IV Columbus' Arena District: An Early Assessment 171

V Columbus' Arena District: What Was Built 176

VI Conclusions 177

Endnotes 182

7 Can a City Win When Losing? Cleveland and the Building of Sports, Cultural, and Entertainment Facilities in the Midst of Population Declines and Job Losses 185

I Introduction 185

II The Crisis of Confidence 188

A Racial Conflict and White Flight 188

B Economic Contraction and Fiscal Default 190

III Cleveland's "Hail Mary" Pass: Downtown Revitalization as Symbols of Confidence 191

A Playhouse Square and a Citizen-Driven Public/Private Partnership 191

B Public/Private Partnership Mayoralty of George Voinovich and the Reinvigoration of a Regime6 192

C Mayor Michael White and the Ballpark and Arena Proposal's Redux 194

D Large Subsidies and the Dispersion of Assets 196

IV Results of Cleveland's "Hail Mary" Pass 198

A Private Investment Levels in Cleveland: Nonresidential Projects 199

B Private Investment in Residential Properties 200

C Tax Revenue Changes 202

D Job Retention and Employment Changes 205

V Extra Benefits from Building Amenities: Regional Cooperation 207

VI Amending Cleveland's Major League Loser Status: New Leases 208

A Provision of Extraordinary Subsidies 208

B New Owners, New Possibilities 210

C New Leases for the Ballpark and Arena 213

VII Business Leaders and Downtown and Community Development 215

VIII Conclusions 217

Endnotes 220

8 Stagnation, Crime, and Population Change: Reading's Volunteer Leadership Group and a Focus on Sports, Entertainment, the Arts, and Culture to Revitalize a Small City 223

I Introduction: Economic Change in a Small City 223

II Changes in a Small City: Economic and Racial Separation 224

A Reading in Brief 224

B Reading and Berks County Today 226

III Into the Breach: A Volunteer Leadership Group and Its Focus on Entertainment 230

IV Reimaging Reading: From the Outlet Capital to a Mid-Atlantic Arts Center 235

V Reading's Leadership Group and Community Development 238

VI Measures of Success 239

VII Conclusions 241

Endnotes 243

9 Sports, Culture, Entertainment and Revitalization: Turning Subsidies into Strategic Investments 245

I Introduction 245

II Subsidies to Investments in the Aftermath of the Credit Crisis 246

A Value of Amenities for Economic Development and Revitalization 248

B Urban Tourism 248

III Lessons Learned: Similarities within Differences 249

IV Lessons Learned: Advice for Other Cities Looking to Sports, Entertainment, and Cultural Amenities for Revitalization 250

A Recommendation 1: Value of Advertising 250

B Recommendation 2: Concentrate Amenities and Make Detailed Plans 252

C Recommendation 3: Build Neighborhoods or Iconic Architecture 254

D Recommendation 4: Link Private Sector Investments to a Commitment of Tax Money 256

E Recommendation 5: Organizations Needed to Succeed as a Broker City 258

F Recommendation 6: Prudent Risk-Taking for Confidence Building 260

What Lesson Does This Offer? 260

G Recommendation 7: "?ber-Plans" Unifying Public and Private Capital 261

H Recommendation 8: Constructively Involve Business Leaders in Downtown and Community Development 262

I Recommendation 9: Level the Negotiating Table 264

V Conclusion 265

Endnotes 266

References 267

Index 277

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