There is no doubt about it! Yuma suffers from a lack of venues for small to large events. Musical acts and promoters complain about it. Local sports and music fans complain about it. In fact there has been a clamoring for the local government to do something about it.
Recently, an events center (arena) seating up to 3000 people has been proposed for Yuma. This would in fact be good start to improving the entertainment situation in Yuma. I would support any move by private organizations to build and operate such a facility.
Unfortunately, the current proposal calls for the City of Yuma to finance the building of the events center. The for profit company would build the center, operate the center, and reap the profits, then turn the facility over to the City. The Yuma City Council proposes to establish an entertainment district with a special sales tax in order to pay off the bonds that would be required to come up with the money to build the center. The sales tax would not only apply to the arena but to nearby businesses that would supposedly benefit from being nearby such a facility. If the revenues from the special district and the arena do not meet expectations, then Yuma’s residents could expect an increase in other taxes in order for the city to pay off the bonds.
This is a great deal for the private company, the reap the profits from building the place, reap even more profits from operating the center, while avoiding the liabilities of actually owning the property! When the center becomes outdated or unprofitable, then they can simply walk away, leaving the City holding the bag. What a great business model, someone else finances the project, someone else inherits the liabilities and risks, and the business reaps any profits from the venture!
While I can not blame the developers for proposing such a sweetheart deal to Yuma, the citizens of Yuma need to take a hard look at this deal before jumping on the bandwagon. Private enterprise has a proven track record of meeting the service needs of a community, when enough of a market exists to make it profitable. This would include operating facilities to meet the entertainment needs of a growing town such as Yuma. The special entertainment district tax could actually discourage new businesses from entering the market unless they too could get the city to subsidize their operation.
The market exists for new entertainment facilities in Yuma. The opportunity for private enterprise to step forward and meet the needs of the community is prime. The idea that the city government is needed to finance the project is wrong. The citizens of Yuma already are carrying a heavy tax burden and should not have to pay an additional sales tax in order to attend a show or a game.