Concept Check 1-4

s the nominal and real costs of sport facilities continue to rise, the sources and methods of financing have become very complex and creative. Moreover, has the public's understanding of the benefits and costs of sport facilities. What partnerships between political jurisdictions and team owners have increased, as 1. How can a stadium or arena be built without putting too much financial burden 2. How does location affect the costs of a stadium or arena project? What are the pros and cons of locating a stadium downtown versus out near a highway? 3. When the construction ends up costing more than initial projections, should government be responsible for paying the additional costs? Of the following list of public financing sources, which ones satisfy the principles will the next wave of stadium financing bring? of horizontal equity, vertical equity, the benefit principle, and efficiency? alculate the savings in total construction costs from issuing a $100 milli CONCLUSION Facity Financing CRA concept CHECK local government? on a the local 4. general obligation bonds revenue bonds sales tax sin taxes state appropriations player income taxes land donations infrastructure improvements certificates of participation tax increment financing and property taxes tourism and food and beverage taxes sale of government assets ticket and parking revenues lotteries and gaming revenues reallocation of existing budget tax abatements PRACTICE problems OB paying 25-year maturity. out at 5% rather than a revenue bond paying out at 7%, both w s the nominal and real costs of sport facilities continue to rise, the sources and methods of financing have become very complex and creative. Moreover, has the public's understanding of the benefits and costs of sport facilities. What partnerships between political jurisdictions and team owners have increased, as 1. How can a stadium or arena be built without putting too much financial burden 2. How does location affect the costs of a stadium or arena project? What are the pros and cons of locating a stadium downtown versus out near a highway? 3. When the construction ends up costing more than initial projections, should government be responsible for paying the additional costs? Of the following list of public financing sources, which ones satisfy the principles will the next wave of stadium financing bring? of horizontal equity, vertical equity, the benefit principle, and efficiency? alculate the savings in total construction costs from issuing a $100 milli CONCLUSION Facity Financing CRA concept CHECK local government? on a the local 4. general obligation bonds revenue bonds sales tax sin taxes state appropriations player income taxes land donations infrastructure improvements certificates of participation tax increment financing and property taxes tourism and food and beverage taxes sale of government assets ticket and parking revenues lotteries and gaming revenues reallocation of existing budget tax abatements PRACTICE problems OB paying 25-year maturity. out at 5% rather than a revenue bond paying out at 7%, both w