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This page contains a single entry from the blog posted on September 23, 2009 3:05 PM. The previous post in this blog was Killer cop in Chasse case may get suspended. The next post in this blog is Town tells Gadhafi: This ain't no KOA. Many more can be found on the main index page or by looking through the archives.

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Wednesday, September 23, 2009

Story time with Little Lord Paulson

Here's the latest batch of whoppers from Lake Oswego's minor league sports kingpin:

Portland Beavers owner Merritt Paulson on Wednesday released an economic impact study indicating his proposed Beaverton baseball park would generate 285 jobs and more than $20 million in annual economic output across three counties....

The study was prepared by Economics Research Associates, a Los Angeles consulting firm specializing in sports facilities....

According to the study:

• Construction alone would generate 787 jobs across Multnomah, Washington and Clackamas counties. It would produce nearly $30 million in income and wages, and generate nearly $100 million in economic output.

• Annually, the stadium will produce 285 jobs, would generate around $8 million in income and wages, and more than $20 million in economic output across all three counties.

Is that what the City of Beaverton needed to hear? Good, then they need to run right out and borrow about $40 million right away.

Comments (15)

This should be duck soup to demolish ... simply find all the similar ERA pre-scam projections all over the country and then find the actual results for those projects and line them up. These guys don't get to be "specialists" in sports facility projections without delivering the spin desired by the funders; for objective analysis you need to consult the academics who go around pointing out what really happens after the deals are done and the graft pocketed.

I want whatever substance he is abusing.

http://www.heritage.org/research/urbanissues/bg1223.cfm

excerpt:

Targeted by promoters, many cash-strapped cities are induced to finance, in whole or in part, monumental entertainment-oriented infrastructure projects. A substantial body of evidence exists to show just how successful these urban revitalization schemes that depend on costly entertainment-oriented infrastructure projects have been. Much of that evidence suggests that publicly funded mega-entertainment centers make a rather unimpressive contribution to a community's economic vitality and employment opportunities.


And speaking of "Economics Research Associates:

http://www.mchenrycountyblog.com/labels/Richard%20Starr.html

Is this report available for public consumption, or will Oregon's Sultan of Sports only dribble out the detail he wants us to see?

Things sure have changed since April, when his consultants put out an earlier report for having the teams in Portland:

Merritt Paulson says his proposal will create 300 new jobs for Portland. In reality, his own economic consultant says his teams will create about 160 family-wage jobs and about 54 low-wage seasonal jobs. About 100 more jobs would be added outside the teams at restaurants, bars and garbage haulers who feed of the teams.

I'm lost, is Paulson putting any money at all into the Beaverton deal?

I thought he really doesn't care about the Beavers and just wanted to get the soccer stadium done.

A giant concrete pyramid, or huge statue of Michael Jackson, or a Beaver, could be built at the same cost & generate as many construction jobs. Any of these would probably be better as a tourist draw, too. And bring fewer continuing costs for Beaverton (graffiti removal & not much else.)

"huge statue of Michael Jackson, or a Beaver"

Soory, gigantic beer fountain would be more representative and get greater pull on tourists.

ERA was the firm that back in 2002 told us how to revitalize downtown Portland -- including an ice skating rink in Pioneer Courthouse Square. That, and everything except retail should be pushed out of all ground floor space downtown. The whole load can be revisited here.

I pass the Planner's Hat to Steve. Consider, too, the possibility of an All-Subsidy baseball outing in Beaverton. Based on figures at least as valid as the Consultant's, I reckon you could take a $285 trip in a private car on WES for an outlay of $2.10, and then sit in a $10,000 seat in the Stadium for $20. If Beaverton wants to be as labor- & Paulson-friendly as PDX, the Taxpayer-supported Peanut monger will sell you nuts. You will feel like a King (or a well-fed Fireman.)

Not to mention that Paulsons company will get the no-bid contract to build the stadium. That's how he gets his down payment back, by padding construction.

I'm lost, is Paulson putting any money at all into the Beaverton deal?

$8 million, plus a big $500,000 a year in rent. A true recipe for disaster for the city.

Ranz, padding construction costs for Paulson will be a very easy scenario if this deal goes down.

Let's assume the construction cost will be $48 Million for the stadium, which is a very high number for 8000 seats. Then Paulson grabs this number out of thin air without an open-bid process. It then becomes very easy (when data is showing that open bidding is coming in over 38% less than architect's, politician's and engineer's cost projections) that Paulson could pocket over $18.24 Million being the overlord contractor. He easily recoups his paltry $8 Million offer.

What a deal for Beaverton's taxpayers. When are the scams going to end?

When are the scams going to end?

When it stops being profitable for Paulson and his ilk.

As an illustration of the kind of scams sports owners like to pull, there's this from Chicago:

http://www.ctj.org/taxjusticedigest/archive/2009/09/no_tax_on_the_845_million_sale.php


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