Just say no to tax support for arena

I reviewed the news reports about the four proposals to build a taxpayer-supported sports arena in the valley. I downloaded the proposals themselves, poring over the details, weighing the strengths and weaknesses of each project. I consulted with colleagues to find out what insights they could offer.

Then I sat down to write a column. I typed hundreds of words contemplating the various questions raised by Clark County commissioners, interested parties and my own perspectives on the issues. Stumbling through this thicket of facts and figures, I finally came to a realization: Building a taxpayer-supported sports arena in Las Vegas right now is about the most ridiculous idea I can imagine. The reasons are many.

First, how can we justify giving a single tax dollar for something like this when we're slashing public services, laying off workers and cutting salaries? Is a new arena a higher priority than our beleaguered public hospital, for example? The financial woes of University Medical Center are well-known. It has been taking on water for some time, and the county is desperately searching for ways to keep it afloat. Providing medical care to those in dire need is a vital part of a community's social fabric, more important than hosting basketball games or monster truck rallies.

UMC is not the only priority to consider, but it best illustrates the dilemma the county commissioners face. A sports arena is a fun and sexy project, while the public hospital is, generally speaking, a pain in their necks. But in terms of priorities, it seems abundantly clear to me which one ranks higher.

All the arena proposals talk of raising or reallocating tax revenues to pay for construction. I find it abhorrent to think that we would do this rather than dedicate a new source of tax revenue to something more essential to the community.

Another reason to question the sanity of arena backers: Las Vegas already has four large arenas. UNLV has the Thomas & Mack Center, MGM has the MGM Grand Garden and Mandalay Bay Events Center, and The Orleans has its arena.

To be sure, none of these existing facilities is ideal to host a major-league professional sports team, the Holy Grail of this whole enterprise. But none of the four proposals provides any guarantee that its arena ever will become home to a big-league basketball or hockey franchise. Since snagging a team is such a gamble, the proposed arenas are counting on attracting other events, from concerts to circuses to rodeos.

But guess what? We already have several arenas to handle those kinds of events, and they aren't having much trouble accommodating the world's greatest spectacles. The MGM Grand Garden's upcoming lineup includes UFC fights and concerts by Sting, Lady Gaga and Michael Bublé. The Mandalay Bay Events Center schedule includes a Rihanna concert and a big-time boxing match. The Orleans is hosting a Carrie Underwood show, the Ringling Brothers and Barnum & Bailey Circus and the World Hip Hop Dance Championship. The Thomas & Mack has concerts, a Tahitian dance competition and the 2010 USA Basketball Showcase. Clearly, we aren't hurting for arena-style attractions or places for them to happen. Instead of boosting the economy, a new arena could end up taking business away from the others.

In the end, the deciding factor on a new arena is taxpayer assistance. If Las Vegas were a smaller community looking to build its first arena, it would be easier to make the case for a sales tax increase or some other means of helping to finance the project. The Smith Performing Arts Center, under construction in downtown Las Vegas, is an example of a taxpayer-supported project that is filling a genuine gap. It will be the community's first performing arts center, and it is expected to host an array of arts events that bypass Las Vegas now.

By contrast, considering the existence of four large arenas, and considering the recession and real estate bust that have made Las Vegas one of the worst-hit cities, the notion of focusing on a $500 million arena instead of other needs is a little galling.

Perhaps because we're not accustomed to deep and prolonged recessions, Las Vegans seem incapable of treating what's happening as a crisis. When you consider the unemployment rate, the foreclosed homes, the commercial vacancies, the bankruptcies and the budget cuts, it's obvious that Las Vegas is hurting bad. Yet, just when a growing number of Las Vegans needs public services more than ever, they're being cut back. And by all accounts, things are going to get worse before they get better. Experts project a $2.5 billion deficit in the state budget when legislators huddle again in 2011. Making the painful cuts needed to balance that budget will be far more difficult than the relatively modest cutting that has been done so far.

It may be a reasonable time to build an arena if it's paid for through private investment. The marketplace can decide in that case. But if it requires taxpayer support, the timing is all wrong.

Geoff Schumacher (gschumacher@reviewjournal.com) is the Review-Journal's director of community publications. His column appears Friday.