Good approach

Published 10:11 am Tuesday, January 18, 2011

Daily Herald, editorial

Reports from the Legislature are that the chairman of the powerful House Tax Committee opposes using state tax money to build a new Minnesota Vikings football stadium. That’s good news for Minnesotans.

Rep. Greg Davids (R-Preston) , has been reported as saying that because his district, just down the road from Mower County, would not benefit from a new stadium, he won’t support legislation that would require those residents to pay for the stadium. Instead, he supports the idea of a ticket tax or other user fee. Taxes that affect only those who derive benefits from a stadium are fiendishly difficult to create, because so few actually benefit. There is a possibility that some real economic development benefits might exist within a few blocks of a stadium, but it is very difficult to show that those benefits extend any further than that. Sure, there are one-time construction jobs and a few times a year there’s a chance to make money as a security person or selling concessions. But the dollars added to the economy are few in comparison to the project’s gigantic price tag.

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The biggest winners from a new stadium, of course, would be the owners of the Minnesota Vikings. That’s why they should pay for the bulk of the project, just as any other business pays for its own manufacturing facilities and offices. A user fee, which would basically be a surcharge on tickets, or a special sales tax in a limited geographical area on game Sundays, might be acceptable as a way to help the project along. Anything else is just a gift to rich people.

We’re glad to hear that Davids is taking a sensible approach to the stadium issue.