Reply #32: The idea is to stimulate growth [View All]

[SaveElmer]

It is not a direct subsidy to a sports franchise, it's a small investment in an improved economy. The gamble is, and in this case it is a good gamble, that by building the stadium, Hennepin County will end up better off financially in the long run. This will happen through increased foot traffic in Minneapolis patronizing restaurants, stores etc. This will not only result in increased employment which in and of itself strengthens the tax base, but it will also result in increased tax revenue from businesses benefitting from the stadium. It also contributes to the overall standard of living in the city which aids the business climate in more intangible ways. The current stadium is not profitable for the team, and isn't an attraction in and of itself. By building a stadium which meets the need of the team, and by providing an additional downtown attraction it can benefit both.

It gets more publicity because it is a sports franchise, but city, county, and state governments subsidize private enterprise all the time - tax breaks for relocation, infrastructure improvements, and things such as convention centers.