January 04, 2005
Nothing but net

You thought maybe all we covered was the "generally well-conducted laughingstock election"? O-hooh no....

Via the Orb, according to Seattle Times reporters Jim Brunner and Bob Young, your temporary Stadium taxes might never expire: (edits and emphases added)

Seattle's three major professional-sports franchises could benefit from future tax subsidies as part of a proposal by the Sonics to fund a $180 million expansion of KeyArena.

The proposal being floated would extend indefinitely the life of several temporary taxes now used to pay off the debt for the construction of Seattle's publicly owned football and baseball stadiums.

Instead of expiring by 2020, as originally conceived, some or all of the taxes would remain in place to raise money for future renovations to Qwest Field and Safeco Field, as well as KeyArena, according to Sonics officials and others briefed on the plans.

Now, far be it from me to tell the Sonics officials their job, but...
Sonics officials previously had disclosed plans to ask the state Legislature for funding to expand KeyArena. They now acknowledge [read: 'finally stopped lying'- ed.] that the legislation would go further, essentially establishing a permanent sports-stadium tax.
Ah. Well, six of one, half dozen of the other... "Asking the state legislature for funding" =your tax money.
The idea has drawn sharp criticism from at least one City Council member, who fears that arts groups that rely on the same source of revenue could lose out.
At least... one. Is worried. About the arts groups. Losing out.

From a permanent tax.

But Terry McLaughlin, executive vice president of the Sonics, said of the proposal: "We've approached it as being a better idea, that it is more comprehensive than a single building or a single franchise."

McLaughlin said the management of the Mariners and Seahawks were briefed on the proposal and seemed supportive. "It's in their interests as well," he said.

Oh, gee. Well. Ok then. That's all that matters.
Asking the Legislature to extend the taxes for all three sports facilities may prove controversial, the Sonics' McLaughlin acknowledged.

One critic of previous stadium deals was immediately skeptical when told of the Sonics' proposal yesterday. "Oh my God, that's worse than I thought," screamed said Seattle City Councilman Nick Licata, who helped lead the opposition to taxpayer gouging funding for the football and baseball stadiums.

Woohoo! You go, dude.
Licata said he wants to ensure that arts groups, which have received some of the same tax money, don't get cut out by the sports teams.
D'oh! Spoke too soon.
McLaughlin said the tax idea emerged in back-alley conniving brainstorming sessions with Gerry Johnson and Jay Reich, both partners with the law firm Preston, Gates and Ellis, who have played roles in recent public-private partnerships, including the construction of Safeco and Qwest fields.
I think we need a new word for "brainstorm." Can you imagine that conversation?:

McLaughlin: "C'mon guys! Think! How can we improve my, I mean, our profits without taking on any risk?"

Reich, snapping fingers: "Hey! Those taxes! Aren't they set to expire eventually, as promised?"

McLaughlin, drooling, a glow in his eyes: "Yee-aahh. I see where you're going..."

Johnson, jumping up and down on the boardroom table: "MAKE 'EM PERMANENT! MAKE 'EM PERMANENT!"

Both have been hired by the Sonics to work on the KeyArena plan. Johnson declined to comment yesterday, and Reich could not be reached.
All that "brainstorming" will wear you out.
The last arena renovation was completed in 1995 and paid for with $74 million in public bonds. In a deal with the city of Seattle, the Sonics agreed to help pay the bonds off by giving the city a hefty slice of revenue from luxury suites and all the income from naming rights to the arena.

The Sonics now say the market has changed and the team has not been able to fill its suites, due in part to the competition from the new baseball and football stadiums. [also publicly financed-ed.] Sonics officials say the team has lost $50 million over the past five years.

Boo-freakin'-hoo, boondoggle boys.

Heh. When the market (and quality) eludes you, there's always soaking the taxpayer, right?

The Sonics' losses, in turn, have been dragging down the finances of the city-owned Seattle Center, which has run up a budget deficit of $9.4 million.
Expanding the building will not help the Sonics win, it will only help us all lose.

Re-distribution of loserhood sounds a lot like socialism, doesn't it?

About $60 million in debt remains from the 1995 renovation of KeyArena. The Sonics and Seattle Mayor Greg Nickels are backing the proposal to extend several taxes to retire that debt, as well as pay for an expansion.

The city hopes bonds can be sold to provide cash up front for the expansion. The bonds would be paid off later by the taxes.

That's what they hoped for last time.
Altogether, the taxes used to finance the construction of the stadiums and pay off the remaining debt from the Kingdome raised more than $50 million last year, according to the state Department of Revenue.

They include a hotel/motel tax, sales tax, a tax on restaurant meals and drinks, and a car-rental tax.

You might think the first and last only affect you and I to a small degree directly, but the ripple effect on our economy is enormous. Our ally local businessman Armen Yousoufian suffered a severe business loss at his hotel due to the cumulative effect of all these, and had to close his doors. A tax is never just on the payer. We all pay eventually.
Licata said he isn't sure the Sonics are wise to link KeyArena to the controversial football and baseball stadiums.

"I think they take on baggage because there is lingering public animosity to how those [stadium] decisions came down," Licata said.

Safeco Field, which opened in 1999, was built with taxpayer money despite voters' rejection of a tax increase to pay for the stadium four years earlier.

But look at how successful the team has been since then, he noted drily.
Public financing for Qwest Field, which opened in 2002 as Seahawks Stadium, was narrowly approved by voters in 1997 despite critics who objected to taxpayer subsidies for the Seahawks and their owner, billionaire Paul Allen.
Do you detect a pattern here?

Posted by Brian Crouch at January 04, 2005 10:25 AM | Email This
Comments
1. Once again, I am happy that I do not live in King county. People voted against public funding for the stadium in '99, but the stadium was built anyway WITH public funding.

So, get used to those temporary taxes as it appears that they will be around for a long time. As the only opposition to this appears to be someone that thinks that his pet charity will get short changed if the taxes are made permanent and benefit all three pro teams in Seattle.

Posted by: Jim on January 4, 2005 10:45 AM
2. To paraphrase Ronald Reagan, the closest thing to eternal life on earth are government programs. I guess the corollary to this is that the taxes that support them are also just as enduring.

Never, ever believe that a tax is only temporary. The tax you currently pay on your telephone was institued over 100 years ago, as a 'temporary' measure to finance the Spanish-American War.

While the war only lasted less than a year, the tax is still with us.

Maybe in a hundred years we (or our descendants, I should say, since I don't anticipate seeing my 137th Bday) will still be arguing about the stadium tax as well.

Posted by: Kevin S on January 4, 2005 10:45 AM
3. This is the problem with setting up these kinds of situations, once you start feeding them, they never seem to stop. And if you oppose them, saying, let's put in language that guarantees no matter what an end date, you'll hear, "Oh you're just being paranoid." Yeah, right.

Posted by: Emily on January 4, 2005 11:29 AM
4. I wonder if Sonics management would have the nerve to make this suggestion if the team wasn't playing so well right now.

My guess is they'll ride the wave of public euphoria (read: ignorant rich people) right into getting this tax made permanent.

What's disappointing is that none of this will make it any easier for me to take even one of my kids to a single game.

Posted by: Jody on January 4, 2005 11:37 AM
5. ". . . the law firm Preston, Gates and Ellis"

That name "Gates." Why does that look familiar? Maybe the same father of a billionaire Microsoft founder who OPPOSES elimination of the inheritance tax? Inquiring minds want to know.

We are having fun in Washington, DC, as the former drug-addict mayor, Marion Barry, looks like the model of fiscal conservatism compared with the NEW ("Washington Nationals") bunch.

Life goes on.

Ron in Virginia

Posted by: Ron on January 4, 2005 11:37 AM
6. Jim, you may be happy that you don't live in King County due to this proposed permanent tax but, if you live anywhere in the State, you're paying it anyway. The request is going to the State Legislature, not the King County Council. That's what really irritates me.

First, how does this fit with Locke's POG? With all that's needed for higher ed, transportation, etc., how can anyone honestly think that subsidizing some of the richest business owners in the State through tax subsidies makes any sense. Second, as an eastern Washington resident, we get absolutely NO benefit from the pro-sports teams. If King County wants to support the teams through taxes, have at it. But how do residents in Pend O'Reille, Ferry, Spokane, Whitman, and so on counties benefit by the Sonics having an upgraded facility to play in.

This is such a ludicrous request; it'll probably get passed. God I wish we could divorce ourselves from the Kings of King County.

Posted by: Bill on January 4, 2005 11:41 AM
7. Did someone say something about nothing but net?

Posted by: Skor Grimm on January 4, 2005 11:59 AM
8. This is one of the few times I AGREE with this site. I think private corporations should have to pay for their own resources. Just as we dont have to contribute to Starbucks Corp if we dont want to (well, sorry coffee lovers, you're supporting Starbucks :P), we shouldnt have to pay for for-profit sports facilities. The fans should foot the bill.

Posted by: John Slyfield on January 4, 2005 12:27 PM
9. Bill, as in the orginal stadium deals, the taxes in question would be authorized by the state legislature, but imposed and collected only in King County.

Posted by: j.a. on January 4, 2005 12:33 PM
10. To quote Ronald Reagan: "If you've seen one tree, you've seen them all." So much for the pungent and pithy humor of RR, who is now deader than a doornail-- thanks!! to Republican opposition to stem cell research. But, I digress. You can change the subject, but the important and galling {to you} fact remains. YOU LOST! No amount of minutiae-searching pettifogging can reduce the astounding fact that Washington Republicans are so inept they lost an election that they'd already won! Don't try to change the subject. Only losers do that.

Posted by: headless lucy on January 4, 2005 12:53 PM
11. Poor ol' headless lucy - reduced to sliming a dead man.

Must be a very lonely world you inhabit in that mind, ol' gal.

Posted by: steve miller on January 4, 2005 12:55 PM
12. What will help the Sonics is if they WIN!!!! The Mariners tried that and people finally became interested. Funny how that works.....

Posted by: Michele on January 4, 2005 01:24 PM
13. Lucy, RR died because he was OLD! Not because we don't have stem-cell research. We all are going to die someday from something. None of us are going to live forever.

For you to finitely declare that Rossi lost is intectually insulting. The election, at worst, is a statistical tie. Always was, always will be. No one, and I mean NO ONE can say who truly got the most votes and won, valid or otherwise. The numbers are too close and are within the margin of error.

Don't come on here preaching about who won or lost. The reality is that we'll never know, and now, with the muddled mess of over-ballots, etc., the entire process is screwed up. It's intellectually insulting, to yourself too, to try and tell us that we lost and to 'get over it'. Don't waste your breath trying to lecture, you're underwhelming.

Still, you can talk all you want; the will of the voters has not been fulfilled. Don't shoot me though, I'm just repeating the message. 58% of the people support a revote versus 36% who don't. 55% of the people feel Rossi probably won versus 35% who think Gregoire did. Those numbers aren't a stastical tie; they are very clear in their intent.

You can bluster all you want at an obscure message board at this website, but it won't change that dynamic. This thing's likely going to a revote no matter how hard your party huffs and puffs to try to blow down the Republican doors. The fact is, without a revote, an presumed Governor Gregoire will be politically impotent.

Get over it.

Posted by: Bill on January 4, 2005 01:40 PM
14. "Let me make one thing perfectly clear." I am a pathetic loser and you lost. Put that in your no-spin zone and smoke it. How do I know you lost? Because the election has certified Christine Gregoire, Dem., as the winner, not Dino "Loserboy" Rossi, Rep., as the winner. He is the [ you guest it] Republican loser, who won an election and somehow had to relinquish it to a Dem.--- a womyn no less! I know you feel small and ineffective because you lost. But, hey, you have lots of other loser company. You can,t float Dino Rossi into the Goovernor's mansion on a raft of lawsoots because you'll just look more like the contentious , sower, sore loozers that you are.

Posted by: headless lucy on January 4, 2005 02:09 PM
15. Lucy, my dear, once again you missed the main issue. The will of the people, as demonstrated by the aforementioned survey, has not been met. That is the milestone that, above all else, must be met.

You can go into personal insulting all you want, typical reaction of someone incapable of debating in a logical fashion, but the fact is that, whether or not CG ultimately is awarded the position of governor, she will be without a mandate. In fact, even though the Dems control both houses, she'll have a very difficult time finding anyone who will align with her on an agenda that's anything other than politically benign. They all have political futures to consider too.

So, shoot the messenger if that's what gets you off. But it won't change the ultimate outcome of the spoiled electoral fruit. Frankly, CG and the rest of the D party have a much more difficult problem than the R's do. It's almost a no-win situation in the long run. CG may win the immediate battle but in the long run, she's going to hurt your party in the bigger war.

As for looking like sore losers, I don't think so. Right now, the R's look like the group pointing out the problems with the system while the D's look like they're willing to accept a broken system, so long as it benefits them. At least that's how the public currently views this. Again, just the messenger.

Now, go ahead, launch into your vitriolic speech again. I wouldn't expect anything less!

Posted by: Bill on January 4, 2005 02:29 PM
16. Without a head lucy: "So much for the pungent and pithy humor of RR, who is now deader than a doornail-- thanks to Republican opposition to stem cell research."

When you say moronic things like that, how can anyone hear anything else that you say? Bush opposed FEDERAL FUNDING of EMBRYONIC stem cell research. There was no ban.

To date there have been 5000 successful life-saving therapies performed using umbilical cord blood stem cells, most of these in the past 3 years... under BUSH.

To date under Clinton and Bush combined, there have been ZERO successful embryonic stem cell therapies...

So, basically, you oppose any stem cell research that doesn't involve killing an embryo, I guess.

Posted by: Bleeding heart conservative on January 4, 2005 03:05 PM
17. To everyone:

If there's one thing worse than feeding a troll, it's feeding an off-topic troll. This thread is about an arena. The OP said:

"The Sonics now say the market has changed and the team has not been able to fill its suites, due in part to the competition from the new baseball and football stadiums. [also publicly financed-ed.] Sonics officials say the team has lost $50 million over the past five years."

The Sonics are in first place now, right? If they can't make money now, and can't fill those suites now, then it's time they moved to Las Vegas, or to San Francisco (where the teams now build their own damn stadiums).

Posted by: FedUpWithThis on January 4, 2005 03:18 PM
18. Thanks for catching that first j.a. These tax proposals must go to the state legislature for approval before the county can begin collecting them. The only time I have to contribute is when I drive up to Seattle for a weekend away from Portland.

/rant on
I'm just getting tired of hearing whining pro teams saying pay for our new improved stadium or we'll move the team to another more willing to pay city. I say let them go. They are a private company and should be able to support themselves, if not let them go out of business or move. As long as cities/counties continue to let these companies bully them into paying bills that they should be paying they will continue to do so. Why do the taxpayers have to subsidize a group of rich kids getting richer?

Would King county support a tax to help Microsoft develop the next version of Windows? I don't think so. But what is the difference? I cannot see one.

/rant off

Posted by: Jim on January 4, 2005 03:40 PM
19. Not only do they ask the taxpayers to subsidize, they also, in turn, soak the fans. All in the name of paying absolutely outlandish salaries to the athletes. Just look at the price of tickets and concessions. It's way out of hand. Until market economics knock down the payrolls of these teams, we're going to be faced with the same requests on an ongoing basis. Let the market decide what's acceptable. The owners, managers, and players are apparently incapable of that reality.

Posted by: Bill on January 4, 2005 03:56 PM
20. To all sports fans:

According to Forbes magazine, the Seattle Mariners (as of the season ending 2003), made more operating profit than any of the other 29 Major League Baseball teams. The Mariners made around $25 million, and that includes baseball's "revenue sharing." (The operating profit is EBITDA--you all know what that means.)

So, the Mariners have a taxpayer-financed stadium? That was dumb!

Posted by: FedUpWithThis on January 4, 2005 04:21 PM
21. ACK!!

Enough already!!!
[rant]
We have a bazillion dollar deficit in the state, We have King County stealing our land with some communist CAO, We have *Sin* taxes placed on everything from soda to cigarettes by people in our state government that don't even believe in God! How can they believe in sin?, We have failing public school systems, We have cities like Spokane laying off their police officers, Liberal judges who free murderers, child molestors and drug dealers -(and try to sneak their halfway houses into our neighborhoods.), We've had more stadium construction and repair than we've had *deserving* teams - yet we can't seem to keep our Medic One system and Fire Departments funded, We have some of the most oppressive (nanny) State, county and city laws in the nation - all designed to take our money in fees, fines, and penalties if we fail to adhere to them...(because the liberals insist they know whats best for us).....BUT with all of these ingenious ways this state government has devised to separate us from our hard earned cash...(taxes, tickets, fees, fines,..etc..)The liberal government has decided that this state should not be friendly to business! So our jobs are going elsewhere - so is our money - that means their tax income is going too!...... Our stupid enviros' decided to create frankenfish (Modified fake salmon) in some absurd effort to save our wild salmon - and instead created an environment that is actually killing them!... We can't work because the jobs are going south..er.. north, east, west..anywhere but here, We can't fish unless *they* say so and for a price, Don't get me started on our hunting lotteries.. We can't heat our home with wood because of burn bans (though the large smelters don't seem to have burn ban days...)We can't say Merry Christmas, We can't manage our own properties in King County, Our voices via our votes don't mean anything!.........And the most common denominator in all of this oppression - is that it has come from the liberal Democrats running this state for over 20 years![/rant off]

I feel better now......but not really....

Posted by: Deborah on January 4, 2005 08:45 PM
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