Morton J. Marcus is an economist formerly with the Kelley School of Business, Indiana University. His column appears in Indiana newspapers.
Enid Aphid is the Mayor of Egregious, the small town just a few miles from everywhere. As expected, Enid is running for re-election on her record.
I asked her to go over that record for me.
“I did not raise taxes,” she said as a prelude to her remarks. “I prayed every day for harmony in our town. I opposed widening roads, yet repaired more potholes than any of my predecessors over the last five decades. No one in my administration was caught using town credit cards for personal purposes.”
“Impressive, but hardly noteworthy,” I said.
“Of course,” Enid said, “doing what is expected brings no credit to a public servant. That’s why I sought, and found, the way to advance the economic and spiritual qualities that make Egregious the envy of the state.”
“Which is?” I prompted.
The Mayor responded, “The Egregious Sports Stadium and Civic Pride Center, the ESS&CPC, will bring thousands of visitors to our cherished community, focus national attention on our beloved home, and enhance the esteem in which we hold ourselves.”
“And this will be achieved how?” I asked.
Her answer was quick and forceful. “Jai-alai, polo, badminton, croquet, snooker, and competitive clogging are going to draw an estimated 350,000 visitors to Egregious in just the first year of operation by the ESS&CPC Commission.
“These sports teams and fans will spend $218 per visitor day with an economic impact of $610.4 million plus jobs for every un- and under-employed person in a sixteen mile radius of our town.”
“Who did that study?” I asked.
“Some impressive fellow from Simon Sez Consultants. They’re experts in economics,” she answered.
I asked, “Does Egregious have such teams now?”
“Yes,” Enid sounded defensive. “We have definitive agreements with owners in all those sports to bring teams to this town, using local and international talent. We have contracted to build the venues they need to hold competitions, financed by revenue bonds, on land donated by the town, with all infrastructure in place under the authority of our Tax Increment Financing (TIF) district.”
“Did you make any concessions,” I asked.
“In today’s highly competitive economic development environment, it is common to offer incentives to the enterprising firm,” Enid explained and continued.
“Yes, we will rebate to the owners all revenues derived from parking, food, and other activities at the ESS&CPC. We will compensate the owners for all taxes paid to the town, county, or state by their athletes and management staff. Plus, we will purchase any unsold tickets for the first three years of operation.”
“These sports teams have solid financials?” I enquired.
“Naturally,” she asserted. “Each owner is a brilliant entrepreneur with an intense innovative imagination. They see the future and the future is Egregious!”
“And do you have plans after your time in office?” I asked.
“As with all other public servants,” Enid said humbly, “I want more time with my family, to reflect, and to explore other avenues of public service.”