The New Stadium Scam Is a Server Farm
La Porte, Indiana, is a small city between South Bend, Indiana, and Chicago, Illinois. The recent announcement that Microsoft is investing over a billion dollars into a vast new data center campus in La Porte is expected to be transformational for the town of 22,000 people.Â
Microsoft was given a 40-year tax abatement on equipment, a renewable state sales tax exemption through 2068, and just $2.5 million of payments in lieu of taxes (PILOT) over four years—roughly 30 percent of what it would normally owe. After that? Nothing. Local utilities would cover the infrastructure.
Indiana’s levy system is designed to reward growth with lower taxes. But when the biggest newcomer isn’t taxed, the reward goes with them, the burden stays with the taxpayers, and the scales get tilted by bureaucrats.
Just 60 miles up the toll road sits Soldier Field, home of the Chicago Bears. The stadium’s 2002 post-modern renovation cost $587 million, $387 million of which was shouldered by taxpayers. Two decades and two dozen quarterbacks later, Chicago only has $640 million (thanks to $256 million in interest) left to pay (oh, and the Bears are now threatening to leave.)
Cities have long bankrolled stadiums for billionaire team owners, while promising taxpayers jobs, tourism, civic pride—maybe even a Super Bowl. The results? Almost uniformly dismal. The Cincinnati Bengals deal left Hamilton County, Ohio, buried in debt and obligated to fund high-tech upgrades just to keep pace. Miami, Florida, spent $500 million in public funds on a baseball stadium for the Marlins, only to see attendance collapse and the team gutted. St. Louis is still paying off the Edward Jones Dome, even after the Rams skipped town for sunnier Los Angeles. Charlotte, North Carolina, is the latest addition to this hall of shame after handing over $650 million in tourism taxes to renovate Bank of America Stadium, earning them the “Worst Economic Development Deal of the Year” distinction from the Center for Economic Accountability.Â
Today’s stadium boondoggle is a server farm: shinier, techier, but
Article from Reason.com
The Reason Magazine website is a go-to destination for libertarians seeking cogent analysis, investigative reporting, and thought-provoking commentary. Championing the principles of individual freedom, limited government, and free markets, the site offers a diverse range of articles, videos, and podcasts that challenge conventional wisdom and advocate for libertarian solutions. Whether you’re interested in politics, culture, or technology, Reason provides a unique lens that prioritizes liberty and rational discourse. It’s an essential resource for those who value critical thinking and nuanced debate in the pursuit of a freer society.
