Guest MINDSETTER™ John Loughlin: PawSox in Providence – A Counter Offer
Monday, April 20, 2015
In the movie My Cousin Vinny, the main character, played by Joe Pesci, makes a “counter-offer” to recover a gambling debt on behalf of his girlfriend. So here’s my “counter-offer” to the new owners of the Pawtucket Red Sox.
As you’ve no doubt heard by now, investors who bought the Pawtucket Red Sox would like taxpayer help in building a new downtown baseball stadium on some of the former 195 land in Providence.
While I support the idea, in concept, I have no interest in any deal that benefits these investors at the expense of Rhode Island taxpayers or puts public money at risk while privatizing the profits.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThat said, there may be another way that would leverage the excitement and entertainment value of a new minor-league stadium on the former 195 land AND benefit the State of Rhode Island as well as the city of Providence.
A huge problem stymieing economic growth in Providence has been, and remains, parking. I for one, hate going into the city because of the lack of parking. So here’s a way to kill several birds with one stone.
Why not have the State of Rhode Island build a 5000 space (or more) parking garage across the street from the proposed stadium and keep the revenue it generates? There are several tangible benefits to this idea.
First, is the obvious revenue. Let’s assume a 5000 parking space garage, that charges $15.00 per spot is at 50% capacity, 5 days per week, 52 weeks per year. That would generate gross revenue of 3.9 million annually. Add to that evening parking, again at $15.00 per spot for 74 home games, again at 50% capacity, you’ve added another 2.7 million in gross revenue, for a total of 6.6 million in gross revenue. And that’s at 50% capacity. Some of this revenue could be earmarked for economic development grants for the City of Pawtucket to help compensate their taxpayers for the loss of the team.
Secondly, offer free parking on the weekends and free parking during the Christmas shopping season with a free shuttle to local Providence retailers and restaurants - now Providence is suddenly an attractive place to shop. It cuts into the gross revenue a bit but we’re still easily in the black.
Third, carve out, say 1000 spaces, for a long term lease to any potential developers of the Superman building. You’ve just solved the parking problem for development of that building into apartments making it far more attractive to private developers.
Fourth, you have just made the remaining 195 lands far more interesting for potential development; you leverage this to asset to lure business to that land as well.
Government doesn’t do very well as private business so I would suggest the State put out to bid a government owned, contractor operated contract to run the garage.
If we fill the garage to 75% or 80% capacity the economics are even more attractive easily covering any help provided to the Red Sox developers and returning a profit to the taxpayers, which should be divvied up as tax cuts improving our business climate.
A state-owned, contractor operated garage could be a win-win for Rhode Island, Providence AND the Red Sox.
It will create construction jobs in the short term and revitalize the downtown retail district plus cut taxes and improve the business climate. It also makes the idea of a downtown stadium an asset to the city and state instead of a liability to be paid for by taxpayers while private investors profit.
Lastly, once the idea has been fully vetted and the numbers crunched by those whom we pay to do this kind of due diligence, namely our Governor and General Assembly, the whole plan should be put to the voter to approve or deny.
If we think out-of-the-box, we could really jumpstart the economy with this simple idea.
John Loughlin hosts the John Loughlin Show Saturdays 10:00 to Noon on News Talk 630 and 99.7 FM WPRO, and is a former Republican State Representative.
Related Slideshow: The Ten Biggest Questions Facing the PawSox Coming to Providence
If the new ownership of the Pawtucket Red Sox want to build a new stadium in Providence, a number of questions need to be answered. The potential for a major contruction project in the state's capitial city touches upon a number of issues, from money, to politics, to jobs, and development.
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