Non-Voted Debt for Economic Development Projects

<p>Kara Millonzi is a School of Government faculty member</p> <p>Several governing board officials, impressed by Team USA’s recent performance during the group stage at the World Cup, suggest that the unit should capitalize on the wave of soccer-fever sweeping the nation as a means to promote economic development in the unit. They propose building a sports arena in order to attract a professional soccer team to the area. The officials believe that the location of a professional soccer team will serve as a catalyst for community spirit amongst the unit’s citizens. And they hope that it also will serve as a catalyst for additional economic development—attracting new restaurants, hotels, retail and other development to the unit, thereby creating additional jobs and increasing the tax base.</p> <p>The governing board discusses the proposed soccer arena at several meetings. It then votes to hire a national consulting firm with expertise in constructing arenas to design the project, estimate its cost, and help the governing board determine the best method to pay for the arena. At some point during the initial discussions about the project, it becomes apparent that there is vocal opposition to building the arena by a significant number of the unit’s citizens. Some citizens speak out against the project during public comment periods at the board’s meetings. Other citizens submit editorials to the local newspapers questioning the propriety of undertaking this type of project in such uncertain economic times. A few citizens take to the blogosphere to decry the waste of public funds on an unnecessary and [...]</p>