Wanting Baltimore to be a world class city must not require taxing its citizens into Third World status.
But that is what the Baltimore Development Corp.’s plans for a new arena could do.
BDC has four proposals for a new arena that at best are pastel renderings of wishful thinking.
Wracked by the worst economic downturn since the Great Depression, we must not distract ourselves with projects that have no basis in reality.
Doing so leaches resources from real needs and in this specific case would harm the greater public good if taxpayer money were used.
Huge questions remain as to whether tearing down debt-free 1st Mariner Arena and taking three to four years to build a new one on the site was a good strategic decision in the first place.
A feasibility study last year estimated it generates $50 million in annual benefit.
Even keeping revenue flat, that means we would lose up to $200 million in public good before the first patron buys a ticket to an arena saddled with massive debt.
How massive? At least $300 million, according to BDC President M.J. “Jay” Brodie, and that does not include hotel, office and retail projects.
Huh? Haven’t they looked around? We may have trouble finishing and selling Baltimore projects in the works now, and two that have been postponed, without adding more to the load.
Even economic optimists say it will be the second half of next year before we see signs of recovery. And even when better times return, lenders might remember what got them in trouble in the first place, which means credit probably will be tight and expensive.
Sure, all of Maryland should be thrilled that four strong groups stepped up. Their proposals are aggressive and, well, beautiful.
We all thank ESmith Legacy and
Garfield Traub Development
Struever Bros. Eccles & Rouse
Capital Venture Group
Cormony Development
A&R Development
Accent Development Co.
But thanks does not include putting any public money on the line in any way, directly or indirectly. We need to start requiring principals to put all that they have, including homes and personal property, at risk.
Then we can find out if they really believe. When they have nothing to lose, they don’t have to distinguish dreams from delusions. Every project looks good, and the bigger the better.
The very magnitude of these arena proposals tells us this is one high-hope project that needs a reality check.
