Will You Pay an Extra Nickel for That BK Value Meal?

By: Mr. Wilson on October 13, 2009
As we get closer to making a decision about a new arena in Lincoln, we're finally seeing some nice details roll in. The latest numbers are the taxes being proposed to fund the arena:
  • A 4 percent hotel occupation tax.
  • A 2 percent occupation bar and restaurant tax.
  • A 4 percent car rental occupation tax.
Not supplied -- at least not by the Journal Star -- is an estimate of just how much money that would bring in each year. We're aiming for some $350 million for the whole project but taxes won't cover the entire price tag. The payoff will also be spread over some number of years. So yeah ... we're missing a few details. We could probably calculate a reasonable guess for the amount of cash we could expect to make annually from these taxes. Does anybody know where we can find detailed tax reports for Lincoln from 2008? As much as I don't like funding this project with tax dollars, at least the proposal only targets Lincolnites' discretionary spending. A property tax increase would have been a complete bust. Taxing restaurants will stir up a little fuss, but only briefly. Two percent will prove to not be worth the fight for most people. Let's take partial public funding of the arena project as a given. Can you think of a better way to fund it?

Comments

See what your friends and neighbors have to say about this.

Fletch
October 13, 2009 at 2:05PM

Taxing the smokers worked brilliantly to build the Devaney Center. Then, in an ironic twist, they were no longer allowed to smoke in the building. Thanks for paying for our place - now get the hell out.

I’d not argue with that plan to be used again.

Fortissimo
October 13, 2009 at 2:12PM

I can think of a great way to pay for it.. don’t build the arena.  I think Lincoln has some very big dreams about how much the arena will catch on, and I don’t think they are logical dreams.  It seems that we keep hoping we can reproduce the excitement that is shown over our football team; sold out every game… but it never happens.  Hockey, Baseball, Lincoln Events Center, Pershing…. All these places that are already established ... didn’t Pershing just need a huge infusion of cash because they ran out mid year?  Didn’t the Governor just announce that there is a huge shortage of funds and that cuts were going to have to be made?  So why are we looking at sinking millions of dollars into an arena that we can’t afford?

Gene
October 13, 2009 at 3:10PM

Can you think of a better way to fund it?
On the Journal Star’s website, charge commenters $0.25 for every exclamation point and $0.50 for every word in all capital letters. The arena will be paid for by Christmas.

Dave K
October 13, 2009 at 5:43PM

Well said, Fortissimo. It’s good to see some common sense on this issue once in a while. 

I heard Doug Emery on the radio this morning say that the increased tax revenues from the arena will lead to lower property taxes. And he was serious! LOL!

Nobody has paid much attention to the fact that the city is paying for and promoting their own pro-arena propaganda.  So Lincoln taxpayers are paying for material that is trying to convince them to vote in favor of paying more taxes. The best part about it is that they’re implying that we’d be voting on tax increases for out-of-towners (so long as you don’t enjoy eating in restaurants). 

I think the city should contribute one dollar to the group(s) (when they exist) opposing the arena for every dollar they spend on their pro-arena propaganda (If we could get a 2-to-1 match, that would be great, hahahaa).  Otherwise, I don’t see much separating the Mayor’s office from the lobbyists who are demonized at every level of American politics.

Steve
October 13, 2009 at 6:02PM

I’m still waiting for other options to be announced from the “common sense” people.

Dave K
October 13, 2009 at 6:14PM

Options for what? To make Lincoln more like Omaha?  I don’t buy the ‘need’ premise.  Just because a ‘need’ for an arena has been concocted doesn’t mean those who oppose it have to think of something that we ‘need’ more.

Having said that, here’s one option: Don’t hassle a developer who wants to build a 50 million dollar hotel in downtown Lincoln on the premise that the hotel plans violate the ‘master plan’ (another grand concoction of city government).

Steve
October 13, 2009 at 6:21PM

Options for Pershing.  Or is it ok?

Gene
October 13, 2009 at 6:43PM

What does that have to do with the arena?

Fletch
October 13, 2009 at 6:53PM

I absolutely think we need the arena.

Fortissimo
October 13, 2009 at 7:14PM

Options…

Find a different locate that does not involve millions of dollars of needless work; buying railroad property, moving tracks, build a new Amtrack station, parking garages and parking lots.  Focus on areas that are more easily accessible instead of compounding an already nightmare of Football Saturday’s. 

Lincoln was just voted as “needing more work” in regards to where our students rank state wide, lower than Omaha.  I have a much more vested interest in seeing that $350 million be diverted to schools than to an arena.  I find the proclamation “We have a really cool arena” as rather unimportant compared to “Our elementary school was listed as Needing Improvement for the second year in a row!” (7 of our elementary schools are failing, with 5 of them listed as failing for 2 or more years).

Steve
October 13, 2009 at 7:28PM

Ok, a different location.  Where?  UNL is now out of the picture, so where?

Dave K
October 14, 2009 at 1:40AM

Steve, so what you’re saying is that I need to come up with alternative options for a publicly-owned arena that (I assume) will draw acts like Miley Cyrus and Britney Spears.  Again, the concoction of a ‘need’ does not place a burden on non-supporters to come up with something to fulfill that need.  I don’t see the providing of an arena as the responsibility of the government on any level.

Steve
October 14, 2009 at 12:03PM

All I’m curious about is whether you think we need to do something about Pershing, and if so what?  And if not, why?  I’m seriously not badgering…just curious.

Neal
October 14, 2009 at 11:21PM

Steve, see if you notice something about these (admittedly paraphrased) exchanges:

PERSON A: I don’t think we should build an arena.
STEVE: But how would we pay for the arena?

PERSON B: I don’t think we should build an arena.
STEVE: But then where would we put it?

As far as funding and location, my vote would be to let all those people who think the arena is going to be soooooo profitable and such a hit pony up the money themselves. Then they can keep all the profits. But of course, it won’t pay for itself, and that’s why these things are always paid for by the public.

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