Sports Authority may need taxpayer rescue

[musicman]

Harris County taxpayers may have to inject up to $7 million a year into the Harris County-Houston Sports Authority for the next two years due to a financial crisis sparked by the souring of bonds used to build Minute Maid Park, Reliant Stadium and the Toyota Center.

Facing balloon payments on $117 million in variable-rate bonds, the authority now is obliged to pay off the debt in five years instead of 23 years. That would require $24 million a year — a figure that, together with more than $30 million in additional obligations, would push the authority to the brink of insolvency.

The alternative: Convince major banks to provide lines of credit that would give the authority a two-year window to refinance. That would cost $7 million a year.

But those deals would create a new set of problems: The authority would have to take $7 million a year now used for stadium maintenance and the expenses of the Harris County Sports and Convention Corporation and spend it on repaying the loans. To make up the difference, Harris County may have to pick up some of those expenses with property tax revenue, a step that some say indirectly violates stadium boosters' promise that taxpayer dollars would not be used to pay for the new venues.

full article

[Fringe]

Time to sell off the Astros? 

[LTAWACS]

Time to sell off the Astros? 

As lunatic as that sounds, I think it's a winning idea.

[Subdude]

“But no matter what happens here, there's absolutely no way the taxpayers of Harris County or the city of Houston could be negatively impacted.”

Friedman said that even in a worst-case scenario in which the authority cannot make its payments, that failure would not impact taxpayers, only investors in its bonds.

Conveniently ignoring the knock-on effects of default on the bonds.

[crunchtastic]

Harris County taxpayers may have to inject up to $7 million a year into the Harris County-Houston Sports Authority for the next two years due to a financial crisis sparked by the souring of bonds used to build Minute Maid Park, Reliant Stadium and the Toyota Center.

Facing balloon payments on $117 million in variable-rate bonds, the authority now is obliged to pay off the debt in five years instead of 23 years. That would require $24 million a year — a figure that, together with more than $30 million in additional obligations, would push the authority to the brink of insolvency.

The alternative: Convince major banks to provide lines of credit that would give the authority a two-year window to refinance. That would cost $7 million a year.

But those deals would create a new set of problems: The authority would have to take $7 million a year now used for stadium maintenance and the expenses of the Harris County Sports and Convention Corporation and spend it on repaying the loans. To make up the difference, Harris County may have to pick up some of those expenses with property tax revenue, a step that some say indirectly violates stadium boosters' promise that taxpayer dollars would not be used to pay for the new venues.

full article

hahahahahahahaha! That's brilliant. The 'major banks' are barely solvent themselves.

I will refrain from stating the obvious. Except to say that the supporters of publicly-funded stadia are welcome to pay my share of the

Reliant/Toyota Center/MMP bailout tab.

[RedScare]

I wonder what Bob McNair's favorite political action committee, the Club For Growth's position is on taxpayer funded stadiums for billionaire sports team owners.

[kylejack]

I want to go back in time and find every dude who told me there could never be any taxpayer exposure because they're just bonds and punch those guys in the face. I knew this would happen and told them repeatedly.

[musicman]

I want to go back in time and find every dude who told me there could never be any taxpayer exposure because they're just bonds and punch those guys in the face. I knew this would happen and told them repeatedly.

Annise Parker "The city has not built one single stadium, and no funds from city property taxes have been used.

Minute Maid Park, Reliant Stadium, and the new downtown multipurpose arena were all approved by voters and built with bonds issued by the Harris County-Houston Sports Authority. The bonds are being repaid through hotel/motel, car rental, and event ticket taxes. State law is fairly specific on the use of such funds"

[kylejack]

Case in point! Gene Locke has blood on his hands from the sports authority too.

[Subdude]

Annise Parker "The city has not built one single stadium, and no funds from city property taxes have been used.

Minute Maid Park, Reliant Stadium, and the new downtown multipurpose arena were all approved by voters and built with bonds issued by the Harris County-Houston Sports Authority. The bonds are being repaid through hotel/motel, car rental, and event ticket taxes. State law is fairly specific on the use of such funds"

Yeah, they were sold on the basis that these massive projects could be paid for totally by outsiders and never cost city taxpayers a dime. So much for free lunches.

[samagon]

There are what, 4 million people in the county?

I'm willing to pay the $2 a year, and I'm also willing to pay for one other person.

[feufoma]

Time to sell off the Astros? 

They wouldn't be missed...

[AtticaFlinch]

They wouldn't be missed...

Well... it would be pretty pointless to go to the stadium if they weren't there.

Think about what the stadiums have added to downtown before you dismiss them and the sports authority. Besides, it's not their fault the economy took a nosedive. Taxpayers wouldn't have to pony up anything had we continued to ride high on positive economic growth.

[crunchtastic]

Well... it would be pretty pointless to go to the stadium if they weren't there.

Think about what the stadiums have added to downtown before you dismiss them and the sports authority. Besides, it's not their fault the economy took a nosedive. Taxpayers wouldn't have to pony up anything had we continued to ride high on positive economic growth.

Taxpayers would not have to pony up anything if the leagues and team owners paid for their own facilites. Municipal funding for privately owned teams is a boondoggle, always has been. Corportate welfare of the worst sort.

And until someone documents and proves the itemized net financial gain to both the county and the local economy, I'm tired of the same ole' BS about 'economic growth' and 'creates jobs.' Not only are we paying their way, we're not even getting championship teams in return. I'm on the hook for a private enterprise's poor financial risks, and the Astros hire a damned bench coach! The Sports Authority and the owneres and the leagues can kiss my ass. Their teams can't win rings, they price their product so that the average person can't afford it, and expect us to be grateful??? No thanks.

[gto250us]

There is no accountability for the assholes who made this deal

[AtticaFlinch]

And until someone documents and proves the itemized net financial gain to both the county and the local economy, I'm tired of the same ole' BS about 'economic growth' and 'creates jobs.'

There's more to it than just that. There's added value that can't be quantified or itemized. You know, like the whole downtown revitalization that was kicked off with the building of Enron... er Minutemaid Park. I'm sorry that economic growth and the creation of jobs aren't important to you, but they're pretty important to most people in town. Just because precise money values can't be itemized on a ledger sheet doesn't mean there's no positive impact.

As for our economic woes and lack of a championship of late, well... at least we aren't Detroit.

Edit: And, the Astros did win an NL championship just a few years ago. Sure, they were blown out in the World Series, but they still got there. The Rangers, the Expos and the Mariners have never been. Not even to get blown out.

[LTAWACS]

There is no accountability for the assholes who made this deal

The lot of them should be made to pay for their sins.

[RedScare]

There's more to it than just that. There's added value that can't be quantified or itemized. You know, like the whole downtown revitalization that was kicked off with the building of Enron... er Minutemaid Park. I'm sorry that economic growth and the creation of jobs aren't important to you, but they're pretty important to most people in town. Just because precise money values can't be itemized on a ledger sheet doesn't mean there's no positive impact.

As for our economic woes and lack of a championship of late, well... at least we aren't Detroit.

Edit: And, the Astros did win an NL championship just a few years ago. Sure, they were blown out in the World Series, but they still got there. The Rangers, the Expos and the Mariners have never been. Not even to get blown out.

Detroit Pistons

NBA Champs 2004

Eastern Conference champs 2004, 2005

Division champs 2002, 2003, 2005, 2006, 2007, 2008

Detroit Tigers

AL Pennant 2006

Detroit Red Wings

Stanley Cup Champs 2002, 2008

Conference champs 2002, 2008, 2009

Division champs 2001, 2002, 2003, 2004, 2006, 2007, 2008, 2009

Detroit Lions

2002-2009 record 29-83

Houston Rockets

NBA champs 0

Western Conference champs 0

Division champs 0

Houston Astros

NL pennant 2005

Houston hockey

No NHL team

Houston Texans

2002-2009 record 40-72

Yeah, glad we're not Detroit...

[AtticaFlinch]

Detroit Pistons

NBA Champs 2004

Eastern Conference champs 2004, 2005

Division champs 2002, 2003, 2005, 2006, 2007, 2008

Detroit Tigers

AL Pennant 2006

Detroit Red Wings

Stanley Cup Champs 2002, 2008

Conference champs 2002, 2008, 2009

Division champs 2001, 2002, 2003, 2004, 2006, 2007, 2008, 2009

Detroit Lions

2002-2009 record 29-83

Houston Rockets

NBA champs 0

Western Conference champs 0

Division champs 0

Houston Astros

NL pennant 2005

Houston hockey

No NHL team

Houston Texans

2002-2009 record 40-72

Yeah, glad we're not Detroit...

That's not entirely right. The Rockets have won two championships. Sure, they played at Lakewood Church then, but still...

I suppose my Detroit comment exposed my glaring deficiency in general sports knowledge. Even with the crappy teams who we may or may not indirectly end up paying for, I'd rather live here than Detroit.

[RedScare]

That's not entirely right. The Rockets have won two championships. Sure, they played at Lakewood Church then, but still...

I suppose my Detroit comment exposed my glaring deficiency in general sports knowledge. Even with the crappy teams who we may or may not indirectly end up paying for, I'd rather live here than Detroit.

I only listed 2000-2009 since the first of the new stadiums opened in 2000. If you would like to further weaken your argument on the value of new stadiums by pointing out the Rockets' 2 NBA titles in an arena built in the 1970s, be my guest.

[AtticaFlinch]

I only listed 2000-2009 since the first of the new stadiums opened in 2000. If you would like to further weaken your argument on the value of new stadiums by pointing out the Rockets' 2 NBA titles in an arena built in the 1970s, be my guest.

I'm not sure how that weakens my argument that the Downtown stadiums have added an unquantifiable value to the neighborhood.

Unless... maybe you were referring to my argument that my sports knowledge is paltry at best? If anything, I think I've only strengthened that argument by continuing on about the Rocket's mid-90s championships.

[Subdude]

There's more to it than just that. There's added value that can't be quantified or itemized. You know, like the whole downtown revitalization that was kicked off with the building of Enron... er Minutemaid Park. I'm sorry that economic growth and the creation of jobs aren't important to you, but they're pretty important to most people in town. Just because precise money values can't be itemized on a ledger sheet doesn't mean there's no positive impact.

As for our economic woes and lack of a championship of late, well... at least we aren't Detroit.

Edit: And, the Astros did win an NL championship just a few years ago. Sure, they were blown out in the World Series, but they still got there. The Rangers, the Expos and the Mariners have never been. Not even to get blown out.

I'm sorry, but building stadiums has a pretty darn lousy track record at job creation. If that were the goal there would have been a lot more effective ways to spend the money than on stadiums. The pro teams just play off the public's fear of being considered second-tier if they lose a franchise.

And creating unquantifiable value is nothing short of swell, but the Sports Authority is on the hook for bond payments that are very much quantifiable.

[AtticaFlinch]

I'm sorry, but building stadiums has a pretty darn lousy track record at job creation. If that were the goal there would have been a lot more effective ways to spend the money than on stadiums. The pro teams just play off the public's fear of being considered second-tier if they lose a franchise.

And creating unquantifiable value is nothing short of swell, but the Sports Authority is on the hook for bond payments that are very much quantifiable.

Regardless of whether or not you agree with me that our new stadia have helped spur some economic growth, you must admit ours is a small price to pay. At least we weren't suckered into an even bigger boondoggle like those rubes in Dallas:

We pay on $117 million in variable-rate bonds while they'll end up doing the same on $350 million. Plus, we got three stadiums out of the deal.

[kylejack]

Regardless of whether or not you agree with me that our new stadia have helped spur some economic growth, you must admit ours is a small price to pay. At least we weren't suckered into an even bigger boondoggle like those rubes in Dallas:

We pay on $117 million in variable-rate bonds while they'll end up doing the same on $350 million. Plus, we got three stadiums out of the deal.

Another city making a worse choice does not improve the value of ours.

[kylejack]

There's more to it than just that. There's added value that can't be quantified or itemized. You know, like the whole downtown revitalization that was kicked off with the building of Enron.

Post hoc ergo propert hoc fallacy. Just because it happened after does not mean it happened because of the park being built. Discovery Green and Hess Tower could have been built with or without the ballpark.

[AtticaFlinch]

Another city making a worse choice does not improve the value of ours.

But it still isn't much of a price to pay really.

Post hoc ergo propert hoc fallacy. Just because it happened after does not mean it happened because of the park being built. Discovery Green and Hess Tower could have been built with or without the ballpark.

But to say it hasn't affected economic or physical growth Downtown is blatantly fallacious in and of itself. True there is no substantive cause/effect correllation between the stadiums and the revitalization effort, but it's also impossible to say with 100% certainty that the stadiums are a product of revitalization and not a catalyst in the effort. There's no quantifiable proof either way. What can be said though is the baseball stadium was built during the beginning stages of the effort. That did happen. Building Minute Maid was the opening salvo in the effort that's ongoing today.

I remember when the eastern edges of Downtown resembled the southeast side of Downtown. It was a pretty scummy area for a long time, full of vagrants and surface lots. Now, not so much.

[RedScare]

But it still isn't much of a price to pay really.

But to say it hasn't affected economic or physical growth Downtown is blatantly fallacious in and of itself. True there is no substantive cause/effect correllation between the stadiums and the revitalization effort, but it's also impossible to say with 100% certainty that the stadiums are a product of revitalization and not a catalyst in the effort. There's no quantifiable proof either way. What can be said though is the baseball stadium was built during the beginning stages of the effort. That did happen. Building Minute Maid was the opening salvo in the effort that's ongoing today.

I remember when the eastern edges of Downtown resembled the southeast side of Downtown. It was a pretty scummy area for a long time, full of vagrants and surface lots. Now, not so much.

Actually, you could look at the dead zone around Minute Maid and make the argument that it did nothing for downtown. The $248 million spent on Minute Maid would have made a much bigger splash )literally) if it had been used to fund the Buffalo Bayou redevelopment.

I am not too offended at the building of the stadiums, especially the downtown venues. However, the fact that 3 of Houston's wealthiest men used $1 Billion of our tax dollars to build stadiums that cost even more to attend games in, is definitely a sore spot. And, it is not just Houstonians. The pro leagues held citizens all over the US hostage for these overpriced con jobs.

[AtticaFlinch]

Actually, you could look at the dead zone around Minute Maid and make the argument that it did nothing for downtown. The $248 million spent on Minute Maid would have made a much bigger splash )literally) if it had been used to fund the Buffalo Bayou redevelopment.

Perhaps, but it doesn't do too much good to argue it after the fact. It's a lot easier for many average citizens to justify to themselves spending money on something they'll all enjoy over something only a handful will enjoy. Despite their abysmal records, people like having the Rockets, Astros and Texans here. Even if they never attend a game at the stadium, they may still watch it on TV. Even though they may never enjoy Minute Maid in the seat at the ballpark, they still can reap the benefits of having the team play here in Houston. The Buffalo Bayou redevelopment is a harder sell to suburbanites (the bulk of the voting population) who never make it into the city to enjoy any amenities anyhow. Just a random sampling of the HAIF politics forum will tell you people vehemently don't want their tax dollars spent unless there's a direct benefit to them. That's why even now, 25 years after it began, the Buffalo Bayou redevelopment is still trying to attain funding, and they've only completed the first phase of the construction process.

I am not too offended at the building of the stadiums, especially the downtown venues. However, the fact that 3 of Houston's wealthiest men used $1 Billion of our tax dollars to build stadiums that cost even more to attend games in, is definitely a sore spot. And, it is not just Houstonians. The pro leagues held citizens all over the US hostage for these overpriced con jobs.

Yeah, but that's what they did. It was a real threat in most major cities, and we even lost the Oilers when we tried to call Bud Adams' bluff. It turned out he wasn't bluffing though. I stopped enjoying football after that. I didn't live here when the Texans came to town, and I can't get into them. And, didn't the city end up paying considerably more for Reliant than even despicable ol' Bud wanted? Didn't the city help defray some of the costs of purchasing the new franchise?

Besides, the Astrodome did suck. It was nearly as primitive as the Colosseum. Visibility was horrible. Players were never happy with the Astroturf. It may have been the eighth wonder of the world when it was constructed in the sixties, but it didn't age well. An update was necessary if we were going to keep our pro sports teams. If we didn't build them, our teams would have left town eventually. Then who would we root for? The Cowboys? Not a chance in hell. The Rangers? Not likely.

I'll gladly help pay for a portion of the stadium as long as it means I never have to root for the Cowboys.

[citizen4rmptown]

Houston Rockets

NBA champs 0

Western Conference champs 0

Division champs 0

Houston Astros

NL pennant 2005

Houston hockey

No NHL team

Houston Texans

2002-2009 record 40-72

Yeah, glad we're not Detroit...

Houston Rockets, haven't they made it to the Playoffs like every year since 2001?or some other year. WE WERE THE ONLY TEAM TO PUSH THE LAKERS to 7 GAMES, says a lot about the Rockets.

Houston Dynamo, 2 Championships back-to-back in inaugural seasons. Going for the 3rd! And made it to the playoffs every season.

Houston Texans better than the Detroit Lions based on their records.

Good sports teams don't make a good city. Although i wish we had better teams, i am proud of the Dynamo and the Rockets.

[RedScare]

Houston Rockets, haven't they made it to the Playoffs like every year since 2001?or some other year. WE WERE THE ONLY TEAM TO PUSH THE LAKERS to 7 GAMES, says a lot about the Rockets.

More like every year since 2007.

Good sports teams don't make a good city.

Never said they did. I was merely correcting the misperception that Detroit's teams aren't any good.