Friday, February 20, 2015

Will higher income from a larger civic center actually appear, of are other city projects to be starved?

http://www.kotatv.com/news/south-dakota-news/civic-center-crossfire-vision-fund-projects/31339944

"Don Frankenfeld is a consulting economist who also serves on the Civic Center board.  Frankenfeld says, 'I think the ultimate question is what sacrifices are involved in making the decision in going forward with this $180 million expenditure.  There will be costs and what will those costs be?'
The $180 million expenditure for the civic center expansion means that for five to seven years, no additional Vision money will be available for other projects that have tapped into these funds.  That would include such projects as the Hospice House, Storybook Island, Canyon Lake dam reconstruction, the Club for Boys, and the soccer complex on Elk Vale Road.
Even after that time period, each year for the next 30 years, about $11 million of the Vision Fund will be allocated to pay off the expansion debt. "

The assumption seems to be that the larger civic center will produce larger income for the city.  But will this larger income offset the huge expense?  I think not.

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