Moore: "If You Build It" Didn't Work in San Diego

Russell J. Moore GoLocal MINDSETTER™

Moore: "If You Build It" Didn't Work in San Diego

State Senator Donna Nesselbush could learn from San Diego's fail.
Pawtucket State Senator Donna Nesselbush should ask San Diego officials how her "if you build it they will come" economic theory is working out for them. 

I'm sure she won't though, because she wouldn't like the answer.

Let's also add Governor Gina Raimondo, along with Nesselbush, to the group who should take a look at the cautionary tale that is San Diego and Petco Stadium, which is located there and built at great expense to the taxpayers.

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That's because when the ownership group of the Pawtucket Red Sox revealed their plan to construct a new stadium in Pawtucket earlier this year, on the site where the old Apex building is located, Governor Gina Raimondo expressed support for the plan, saying that it seemed to “pay for itself."

Study History, Please

San Diego learned the hard way to take what Lucchino promises as a grain of salt. That's because, as President and CEO of the San Diego Padres back from 1995 until 2001, Lucchino spearheaded an effort to construct a new stadium there and he hoodwinked San Diego the same exact way he appears poised to pool the wool over our collective eyes. (When I say "our" I mean our leaders like Nesselbush, who is, for some reason, enamored with Lucchino.)

The team and other supporters promise? You guessed it. Taxpayers wouldn’t be on the hook to support the stadium because it would “pay for itself”.

How’s that working out? Not so well, actually. (What a surprise.)

The City of San Diego is forking over roughly $14 million dollars per year to pay off the cost of the bonds that financed the stadium. Development from around the stadium was supposed to pay off those costs. I think Nesselbush would be surprised to learn that that hasn't happened. 

Promises, Promises

A leading San Diego blog, called “The Voice San Diego”, reported in 2015 that the plan’s big promises failed to materialize.

“Former city manager Jack McGrory, who helped push for a downtown ballpark in the mid-’90s and later led the Padres’ efforts to usher in downtown commercial development, said the current arrangement isn’t what the Padres envisioned. The deal was supposed to pay for itself,” the article states. http://www.voiceofsandiego.org/topics/news/city-promised-new-money-would-pay-for-ballpark-it-cant-prove-it-does/

That’s almost precisely the same argument that the Pawtucket Red Sox are making right now. We all know it’s nonsense.

Make no mistake about it: If a new Pawtucket Red Sox stadium is constructed, the taxpayers will be paying for it, and dearly.

When the average person asks for a loan, or goes to the bank with a business plan, the bank makes sure that they collect as much information as possible. Past performances are a good indication of future results. So why aren’t we talking about the track record of ballfields and stadiums and how they’ve been eating away at precious tax dollars?

Economic Fairy Tales

The folks in San Diego, however, learned their lesson. A new proposal that would have built a new stadium for the NFL’s Chargers, would have forced the city to raise its hotel tax significantly to pay for the deal.

The people of San Diego went to the polls and shot the deal down. The team has left town, and relocated to Los Angeles. The San Diego residents thought it was better that the Chargers fleece someone else besides themselves. Imagine that?

That’s why it was heartening last week when House Speaker Nicholas Mattiello mentioned that he would be open to the idea of a voter referendum to decide on whether we should help multi-millionaires pay for their new playground. It will be interesting to see if the state Senate follows suit.

One gets the impression that the state Senate doesn’t care about how the Pawtucket Red Sox stadium deal is paid for, just as long as it creates jobs for the Laborer’s Union. There’s absolutely nothing wrong with a desire to create jobs for Rhode Islanders. Lord knows, we need them desperately.

Will We Ever Learn?

But the state taxpayers need to be protected. If we’re going to spend money, it makes sense that we get the best possible return on our investment. Aren’t we better off spending our money helping the needy, educating our youngsters, and rebuilding our crumbling infrastructure?

Average folks learn from their mistakes. Smart people learn from the mistakes of others. Idiots don’t learn.

Which are we going to be? Are we going to learn from San Diego’s mistake in dealing with Lucchino? Are we going to learn from our own 38 Studios mistake? Or, are we just idiots who just keep making mistakes?

Don’t answer that. It’s too painful.

Russell J. Moore has worked on both sides of the desk in Rhode Island media, both for newspapers and on political campaigns. Send him email at [email protected]. Follow him on twitter @russmoore713.

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