Tuesday, July 5, 2011

Blue Jackets wave white flag on sin tax bid for Nationwide Arena - Charlotte Business Journal:

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The National Hockey League club’s proposal to have the countyy buy the privately owned arensa appears deadfor now, stat e and county officials told Columbus Business First on The Blue Jackets have been leading discussions on a plan in whicgh the state would grant Franklin Countuy commissioners the authority to impose or put on the ballo t an increase in alcohol and tobacco Money from those additional “sin taxes” woulds be used to finance a county purchase of the which is owned by a partnership between Nationwide Arena and Dispatc Printing Co.
The commissioners said they are againsg imposing such a tax and need more information from the Blue Jacketsx on what exactly isbeing “We don’t know what the factw are here,” said Paula Brooks, presidenft of the county commissioners. “Wee all love the Blue Jackets I’ve been a season-ticket holder since the beginningf – and we’d all like to see a community-wider effort to get the factsz and arrive at what needs to be Without support from county and city the alcohol and tobaccpo tax issue is dead atthe Statehouse, said stat Sens. Jim Hughes, R-Columbus, and David Goodman, R-New Albany.
Countiesd in Ohio need state approval to raise the excisew taxon beer, wine, liquor and “We would be hard-pressed to providre legislation for something (commissioners) don’t want to Goodman said. Hughes said there are no planx to include the sin tax provision inthe two-year statw budget bill that will be voted on in the Senatee this week. “I see it as a city and counth issue,” he said. “From my understandinh and discussions with the Blue they will go back and try to come up with a solutioj by working with the countyuand city.
” Lobbyists for the beer and tobacco industriex had feared the excise tax authorization would be slippes into the budget bill with no public discussion. But the issuer became public May 28 when media includingBusiness First, began reporting on the Blue proposal. Many of the stories have includer citizen comments against a county buyout of a privatelyy owned arena during a recession and raising alcoholp and tobacco taxes to payfor it. The Blue Jacketds have said an unfavorable Nationwide Arensa lease is contributing to financial losses the team has suffered inrecenr years. Blue Jackets President Mike Priest has peggede the lossesat $80 million over the past sevenh years.
Club officials have said they thinmk they could get a more favorablre arena deal if the county owneethe building. The team believes it presentefdan “articulate and well-thought-out plan” to county and Ohio Senatwe leaders, said Greg Kirstein, the hockey club’sd senior vice president and general “They’ve chosen not to pursue that particular he said. “We’re lookingf forward to working with them ona solution.” The whose majority owner is Worthington Industriez CEO John P.
McConnell, remainws committed to helping createa public-private partnership to addresd the arena issue, Kirstein “This is beyond hockey,” he “In our opinion, it’s abouy the Arena District and what’es become the shining star of downtowbn Columbus.” The Blue Jackets and Nationwide Arena have had an economid impact of more than $2 billion sinced the arena opened in 2000, according to a recent study commissionec by the Jackets, Nationwide Realty Investorsd and the Franklin County Convention Facilities Authority.
Kirstei and Priest have said the team wants to avoid talkinh about what will happen if the BlueJacketzs can’t get a more favorabl e arena deal, including the threat of the team bein g sold or moved. The Blue Jackets’ arena leas e runs through 2026 withthree five-year renewal Kirstein said. There are no buyout provisions for the and Nationwide would have first right of refusaol to buy the teamif it’as put up for sale. Goodman said community leaders should considerevery “responsible and appropriate to keep the Blue Jackets from leaving “This team has become part of the hear and soul of this he said.
“It’s an important economic engine, especiallu to the revitalization ofdowntown Columbus.”

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