Change is hard. My experience in the civic arena is that it takes "a couple rounds" of putting the idea out there before there is consensus to go forward.
I wrote a bunch about failures of transit referenda in Tampa Bay and the State of Georgia in the 2010s. Georgia introduced a new way to create transportation districts, then expected people to vote up or down in less than a year ("Failure of the transit-roads sales tax measure in Metro Atlanta," 2012).
In Tampa, the two counties can't figure out how to work together on transit, nor can they build support within their counties (Voters reject Greenlight Pinellas," Tampa Bay Times, "My Ride/My Road: Polk County Voters Reject 1-Cent Sales Tax Increase," Lakeland Ledger, 2014).
There are plenty of other examples.
My point was that to do breakthrough initiatives, you have to build the support for it, people are conservative, and that takes time. The other way I put it is that the more time you spend on the front end, with civic engagement and a slew of meetings and other activities, the faster it goes on the back end. Finally, I hate losing. So I'd rather set myself up for success by taking the necessary time to build support.
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-- "Framework of characteristics that support successful community development in association with the development of professional sports facilities," 2021
It was a shocking move. And not all the state, especially State Senator Caroline Lucas, was on board ("Leonsis finally met arena nemesis Lucas, but maybe too late to save it").
Other issues also brought more opposition ("Plan to move Capitals, Wizards to Virginia draws transportation worries," "Plan for new Caps, Wizards arena in Va. stirs up its would-be neighbors") including a casino proposal ("JBG Smith blames Tysons casino conspiracy for derailing Potomac Yard deal," Alexandria Now).
Governor Youngkin just sprung this on everybody. And "everybody" needed more than 3 1/2 months to get on board. Let alone vote on it.
An article about the aftermath in the Post , "Va. Gov. Youngkin arrived like a GOP star, but arena failure clouds legacy," made the point about Youngkin, on most new initiatives he proposes, doesn't attempt to build support for them in advance, therefore fails. (Also see "After Va. arena plan collapses, politicians and dealmakers trade blame" and " Proclamation: Governor Glenn Youngkin Statement On Monumental Sports & Entertainment Project.")
But Holsworth, the political analyst, said he saw a significant difference in the way Youngkin approaches big initiatives compared with previous governors. When Republican George Allen wanted to impose new education standards in the 1990s and had a Democratic legislature, he said, the governor appointed prominent Virginia educators to key administration roles and mounted a campaign around the state to build support from lawmakers and local officials — all before any votes were taken.
Similarly, in the 2000s, Democrat Mark R. Warner logged miles around the state and made endless PowerPoint presentations to persuade business groups and a GOP legislature that Virginia had to raise taxes to preserve its high bond rating.
Youngkin made no such broad effort to pave the way for the arena ... “It’s just not a very keen understanding of the political dynamics of Virginia,” Holsworth said.
So it failed and the teams are staying in DC ("Caps, Wizards will stay in D.C. under deal announced by Bowser, Leonsis," Washington Post) getting $500+ million from the city to do so, and getting the rights to redevelop the adjacent Gallery Place development to add some revenue streams ("MRP Realty to buy Gallery Place, make room for Monumental Sports & Entertainment," Washington Business Journal).
Under the terms of the deal signed Wednesday, pending expected D.C. Council approval next week, the District will send $515 million over three years to finance Capital One Arena’s modernization. In addition, the agreement provides for 200,000 square feet “of newly programmed space throughout Capital One Arena and in the Gallery Place building next door.” The terms also call for a new downtown practice facility for the Wizards, with “options including top floors of Gallery Place,” per Monumental’s release.
2. Real estate transfer tax in Chicago. In Chicago, new mayor Brandon Johnson proposed a higher transfer tax rate on properties selling for more than $1 million, to pay for affordable housing.
Called "Bring Chicago Home," he proposed it in September ("Chicago mayor introduces real estate transfer tax plan to combat homelessness," Axios) for a vote this March. That's 6 months!
It was estimated the tax could raise $100 million per year.
Naturally, the business community especially the real estate development community was against and could spend a lot of money fighting it. Plus a lot of citizens were indifferent.
A number of cities, including DC, have such a tax, so it's not novel (Local Mansion Taxes: Building Stronger Communities with Progressive Taxes on High-Value Real Estate, report, Institute for Taxes and Economic Policy), the issue is getting it passed.
- As of early 2024, 17 cities and counties have progressive taxes on high-price real estate sales, also known as “mansion taxes.” Several others are currently considering adopting these policies.
- Together these taxes raise nearly $3 billion in annual revenue, equipping communities with resources to make progress on critical priorities of local and national concern including housing, education, and infrastructure.
- Local mansion taxes have been around since 1982, but the momentum for them has built in recent years.
- Nearly all of today’s mansion taxes were enacted or expanded between 2018 and 2023.
- Local mansion taxes play an important role in rebalancing upside-down tax codes, advancing racial and economic equity, and raising new revenue to build more resilient and inclusive communities.
- Mansion taxes have proven popular with voters: When put on the ballot, measures to enact or expand mansion taxes have succeeded 86 percent of the time.
Which they didn't. It was also challenged in court by real estate interests, who didn't even want the votes to be counted ("Real estate group appeals Bring Chicago Home to state Supreme Court," Chicago Tribune). The court said no, count the votes.
But it didn't pass anyway, losing roughly 54% to 46%, a 21,000 vote difference in a low turnout election ("Chicago Voters Reject Mansion Tax in Blow to Mayor Johnson," Bloomberg).
Some electeds are chastened ("City Council’s Progressive Caucus responds to ‘Bring Chicago Home’ defeat with ‘we heard you’ humility," Chicago Sun Times). Not the mayor ("Johnson, defiant after 'Bring Chicago Home' loss, vows agenda push will 'get stronger'," Crain's Chicago Business).
But they shouldn't be so chastened, just recognize that they mishandled the initiative, by trying too soon for a vote without building the consensus for the need. From the Axios article, "Why the Bring Chicago Home ballot measure failed"
- People not affected by homelessness don't understand it
- Voters fear rising residential taxes if the measure further hurts commercial real estate
- People worry that the tax could stifle future development
- Citizens have little faith in city leaders
- Voters were confused by the measure's changing legal status and swayed by opponents' commercials
- The measure lacked spending specifics
How Bowser played the long game to keep Capitals, Wizards in D.C.
ReplyDeletehttps://www.washingtonpost.com/dc-md-va/2024/03/30/dc-bowser-arena-leonsis-wizards-capitals-deal/
The Caps and Wizards are staying, and downtown D.C. is ready for revival
ReplyDeletehttps://www.washingtonpost.com/opinions/2024/03/28/dc-arena-capitals-wizards-downtown-revival/
https://chicago.suntimes.com/city-hall/2024/04/03/bring-chicago-home-homeless-ballot-referendum-developer-quintin-primo-lasalle-street
ReplyDeletehttps://www.alxnow.com/2024/04/04/poll-is-alexandria-better-off-without-the-potomac-yard-arena/
ReplyDeleteStadium entertainment districts — such as the one proposed in South Philly — are changing the game for fans around the country
ReplyDeletehttps://www.inquirer.com/real-estate/commercial/phillies-sixers-comcast-sports-complex-philadelphia-20240415.html
When Atlanta Braves fans Jeff and Alison Donovan arrived outside Citizens Bank Park, three hours early and excited for opening day versus the Phillies, they were a bit jarred by the surroundings of the South Philadelphia Sports Complex.
“There’s nothing here,” said Jeff Donovan, gazing across a great plain of asphalt that contains 22,000 parking spaces, three stadiums, and one sports bar. “There’s nowhere for us to really do anything.”
It’s different in Atlanta, he said, where the Braves’ Truist Park connects to the Battery, a big stay-and-play entertainment area that teems with lively restaurants, shops, plazas, bars and attractions. It’s packed on game days.
He and his family travel there from their home in Orlando, Fla., drawn by their love for the Braves and the energy at the Battery, named for an old baseball expression. About 10 million people visited last year.
... It also promises big money for the team owners.
Across the United States and Canada, these types of mixed-use properties are growing like infield grass, with 41 planned or under construction and 43 more up and operating across the five major pro leagues, according to Maryland-based RCLCO Real Estate Consulting, which advises teams and cities on the developments.
Why the popularity?
“It’s the fan experience,” said Erin Talkington, a managing director at the RCLCO office in Washington. “It’s not a great experience to park your car and walk 15 minutes across the parking lot to the game and do the same when you leave.”
Each development differs. All perform two crucial functions.
For fans and families, they provide a fun and safe place to shop and dine and immerse themselves in the aura of their favorite team. In some cities, these districts have become the go-to gathering spot during big games, where thousands gather to watch on outdoor screens that may be half the size of a basketball court.
For owners — and the main reason for the proliferation — they offer a reliable new stream of income. These venues attract people and dollars 365 days a year, so teams earn money not just from one building, not only during games, and even if the home team stinks.
“Owners are really trying to think about, ‘How am I going to maximize my profits off of this team?’” said associate professor Nicholas Watanabe, who studies sports economics at the University of South Carolina. “A lot of them realize there’s a lot more money in developing land.”
Owners have become landlords, and income from leases and rents rolls in regularly. The projects give teams new ways to bundle ticket, hotel and dining packages, and new avenues to sell naming rights, sponsorships and advertising.
Last year, the Battery delivered $59 million in revenue to Atlanta Braves Holdings, which owns the team and the complex. That was up 10% from the previous year.
ReplyDeleteThese mixed-use developments help provide a hedge at a moment when the dominance of American sports programming faces new competition, from such entertainment as video games and on-demand TV, and when fan behavior can be unpredictable. Last year’s World Series between the Texas Rangers and Arizona Diamondbacks was the least-watched on record.
... Of course, that’s not why most people go to the Battery.
They go to ride the mechanical bull at PBR Atlanta, the bar brand of the Professional Bull Riders league, billed as the toughest sport on dirt. They play in the Sandbox virtual-reality center and browse through the unique designs at Baseballism, a fan shop.
“It’s more than just a baseball day experience,” said Winston Parrish, a Braves fan who with his father, Dwight, came from Asheville, N.C., to the Phillies’ opening day game. “You’re able to get a hotel right there in the Battery, and walk from your hotel to the game.”
When Dwight Parrish attended baseball games as a boy in the 1960s and 1970s, the focus was on seeing star players and snacking on Cracker Jack.
“Today, it’s a different thing,” he said. “It’s all about the kids. It’s all about the family experience. It’s awesome."