Gopherguy05 wrote:
Got to love the idiots in this state. And before someone tried to paint this the wrong way, I'm actually pro-stadium if we can do it using racino or some other similar means....
Can't be done. There is no 'other means'. Not really.
I'd be pro-Lamborghini if I could get it done using 'some other means'. The real hang up isn't some potential gambling revenue or not - its what do the sponsors pledge to use to back it all up when [not if] that falls short either partially or catastrophically.
Its a lot like the Vegas monorail - everyone was for it so long as they didn't have to back the bonds if revenue fell short - it did - and the bond holders got screwed royally because there was no back up. Here they know they can't even think of getting decent rates on a bond issuance unless the state backs up the payment [ultimately takes responsibility by pledging tax revenue as worst case payer]. You can have all kinds of 'revenue sources' in between but at days end the state is the only 'adult' with deep enough pockets to sign off as payer of last resort.
I doubt the bond market would even trust Ziggy and all his fortunes to back it up. Developers like him are masters of 'strategic default' and very hard to tie down. Meanwhile the stadium is here, state is here, tax payers are here - see the connection?
I suppose he could [in theory] pay in cash - but I doubt he has anywhere near that much liquid. He has assets but would require some gnarly liquidations [huge tax ramifications] or borrowing against his assets [as collateral] and then as above - who back stops the collateral should it falter [it often does over the lifetime of a typical stadium - see recent RE collapse and what happened to Zell's promises - he just walked away].
Its one fugly issue but really not that difficult to parse. If we want the stadium - ultimately the taxpayers will be the ultimate last inline payer no matter how the deals are structured and sold. How much and how often the state might get dinged is debatable but the fact remains the same - for it to be built the state and taxpayers will have a lot of skin in the game. Or it won't get built.