News of the Arroyo
Title: | Winning numbers |
Subtitle: | |
Date: | 2004-11-06 |
Summary: | November 6, 2004 - An NFL franchise would pump an additional $3.3 million into the local economy each year. Is that all? |
Author: | Gary Scott, Staff Writer |
Publication: | Pasaadena Star News |
Content: | Saturday, November 06, 2004 - PASADENA -- Having a National Football League team playing in a rebuilt Rose Bowl would pump $3.3 million into the local economy each year, according to study released by the UCLA Anderson School of Management. The number more than doubles any year a Super Bowl would be played here, bringing another $4.3 million in economic activity, the study says. The study was prepared by graduate students at UCLA\'s business school under the direction of an adviser. Pasadena Finance Director Jay Goldstone said the 106-page report appears to be professionally done and uses generally accepted models to calculate the economic benefits. \"Generally, I think it was a good study,\" Goldstone said, adding that he would like to see some changes in the way the tax revenues are calculated. Goldstone did take exception to the study\'s assumption that certain fees and taxes would be waived by the city. That, in turn, lowers the projected revenues. \"We took a very conservative approach,\" said Brian D\'Andrea, one of the study\'s co-authors. \"We wanted to make sure everything was defensible.\" Tommy Bligh, who also worked on the report, said the team wanted to generate numbers that \"can be added to but most likely won\'t be subtracted from.\" There are three main areas of economic stimulus associated with a successful NFL bid. The first is the $400 million-plus NFL-financed renovation of the Rose Bowl, which would generate jobs and other benefits in a one-time shot. According to the study, Pasadena would see $50.3 million in economic activity and 306 new jobs. The benefits would be greater for the San Gabriel Valley as a whole, which the study says could see $164 million in new spending and 980 new jobs. And the total benefit to the county would be $281.9 million in spending and 2,193 jobs. The construction portion of the proposed project is expected to take two years to complete. The study calculates the economic benefits by combining the spending on construction materials, local taxes generated, workers\' salaries and profits to the contractors and then adds \"indirect\" benefits that multiply from the initial spending. \"We didn\'t look at spending that would already occur\" without the NFL team, D\'Andrea said. The numbers do not include economic activity associated with UCLA football either. The second area of economic activity the study focuses on is the regular-season operations. The study looked at the new jobs that would be created at the stadium and the local spending generated from their salaries and from fans attending games. The study did not include a team\'s profits, the salaries of the players or NFL advertising contracts in the totals. The overall benefit to Pasadena from regular-season play was found to be $3.3 million a year. The San Gabriel Valley would see an $8 million boon and $73 million would be added to the county\'s economy. Stadium operations would also be expected to generate 97 permanent full-time jobs for Pasadenans and at least $68,700 in tax revenues for the city, the study says. \"I think they seem to be realistic and, if anything, conservative,\" said Rose Bowl General Manager Darryl Dunn of the estimates. \"Sometimes you see these economic impact studies and these billions of dollars that don\'t make sense to you. In this report, you can understand where the numbers come from.\" Finally, the study looks at Super Bowl games. The NFL has pledged to hold Super Bowls regularly in the Los Angeles market if it returns here. For Pasadena, that means another $4.3 million; $35.5 million for the San Gabriel Valley and $315 million for the county. The Rose Bowl Operating Co. commissioned the study to show the benefits a pro football team could bring to Pasadena and the surrounding region. Mayor Bill Bogaard said he was not intimately familiar with the study\'s findings but is wary about any conclusions that overplayed the benefits of an NFL team. \"I believe those who think that having an NFL team will be a massive boost to the local economy are wrong,\" Bogaard said. Councilman Steve Madison said he was pleased the study took a conservative approach to the potential economic impacts but said the decision on whether to bring a pro football team to the Rose Bowl ultimately rests on other issues. Negotiations with the league are focused mainly on the architectural design, governance and the number of events held each year at the Rose Bowl. -- Gary Scott can be reached at (626) 578-6300, Ext. 4458, or by e-mail at gary.scott@sgvn.com . |
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