Report estimates Lents stadium would create 453 jobs
by Randy Leonard
A recent ECONorthwest report commissioned by Mayor Adams conducts a snapshot economic analysis of the proposal to move the Portland Beavers to Lents Park via the construction of a $47 million stadium. The report takes the vexing approach of weighing the stadium against the impact of not assessing taxes and concludes that the construction of a stadium in Lents would comparitively result in fewer jobs than relinquishing taxes collected for urban renewal to taxpayers.
“Our analysis suggests that the construction of the proposed Lents stadium will create fewer jobs in the City of Portland than would otherwise be created if the public money from taxes were left with households and businesses to spend on private consumption and investment activities.” ECONorthwest Economic Impact of Proposed Baseball Stadium, Section 4.2, May 12, 2009
While it is a seductive conclusion for opponents of the Lents stadium proposal, it is based on an alternate reality in which property taxes otherwise reserved for urban renewal would be retained by taxpayers to spend and invest. This approach gives the impression of a false choice between a stadium and lower taxes, because there is no scenario under which the taxing jurisdictions would consider relinquishing property tax revenues. Further, in the context of urban renewal, the associated tax revenue is required by law to be spent on brick and mortar construction projects. In that light, the stadium’s economic impact should be measured against the reality of the planned expenditure of tax revenues, and therefore the job impact of the stadium should be measured against the status quo. As a result, the findings of this study, when measured against reality, actually support a net job gain of at least 453 job-years.
The ECONorthwest analysis states:
Construction of the stadium would result in gross impacts of 383 job-years of employment directly on construction and a combined 453 job-years of employment in total throughout the economy while the stadium is built .” Section 4.1, May 12, 2009
This number reflects jobs created as a total, and does not consider the residence of the workers or any ongoing job benefit that would result from the operation of the stadium in Lents or any corresponding development that may occur. The report does not go into depth on the prospects for long term job impacts, but generally dismisses any ongoing impacts of the new stadium as merely a transfer:
“…to a large degree, the proposed stadium is intended to accommodate events currently hosted at PGE Park.Therefore, the stadium would not be drawing new events to the City, nor creating new entertainment opportunities. Generally, the stadium simply would shift events already occurring in the City from one location to another.” ECONorthwest Economic Impact of Proposed Baseball Stadium, Section 2.2, May 12, 2009
In the narrow sense of the Beavers, the statement that the move to Lents would merely shift the economic activity from one part of the city to another is accurate. But it does not consider that PGE Park will continue to operate as a Major League Soccer facility, requiring staff for its operation as well as continuing to have events that support the businesses around the stadium who have grown to depend on stadium activities for business. With that in mind, and viewing the Major League Soccer/AAA Baseball investments in their appropriate co-mingled context, the move of the Beavers to Lents will drive the addition of an increased level of vendors, ticket takers, coaches, players, administrative staff, and off site retail, restaurant, and office development to serve both facilities. Without a doubt, this will represent long term employment beyond the 453 job-years projected by ECONorthwest in the construction phase.
Finally, in addition to job creation, there are benefits to making Lents the “Home of the Portland Beavers” that cannot be measured in economic terms. The impacts on youth in East Portlandhaving a positive activity that they can associate themselves with through the community efforts of the Beavers organization or simply having the option to attend a baseball game on a hot summer evening cannot be measured. The opportunities for families to engage in memorable and affordable traditions in their own neighborhood cannot be measured. The opportunity for East Portland high schoolers and little leaguers to play in a first-rate facility cannot be measured, and the psychological impact and advantage of trading “Felony Flats” for “The Home of the Beavers” as a namesake will manifest itself in economic and social benefits that cannot be measured.
Weighed against the reality of urban renewal investment in Lents, the ECONorthwest analysis helps demonstrate that a proposed stadium in Lents would have a significant positive economic benefit, both in the short term and over time. Coupled with the intangible social and economic benefits that are associated, I continue to be encouraged by the opportunity to bring Major League Soccer to Portland and to make Lents the Home of the Portland Beavers.