The interim City Manager, the Recreation and Parks Director and the Economic Development Director want to sink an estimated $3.7 million into an indoor sports complex and cover it with a used 215' by 400' fabric covered, metal structure and potentially pump 150 tons of air conditioning into the unit to support uncertain sports events in the desert.
To pay for the complex, city administrators propose spending approximately $1 million generated from a land deal with Nevada Community Solutions (NCS).The additional money is projected to come from more land sales or by using Rural Development Authority (RDA) funds. At some future date, NCS would further develop 500 acres near the sports complex.
This issue goes back to 2004 when then-city officials entered into an agreement with NCS whereby NCS would develop land west of Mesquite. NCS gave the City a $6 million down payment. In March 2010, NCS offered to terminate the agreement if the $6 million was returned. City officials opted to look at new ways to spend the money.
The policy issue before the Mayor and city council remains essentially the same. Return the money to NCS or do something. It's the "do something" problem that eventually generated the desire to build the indoor sporting complex.
This project highlights the major problem with city economic planning and development. They approach these deals with a “build it and they will come,” philosophy. This philosophy is an economic fallacy. They also approach projects with a “sunk cost,” mentality. That is, we have invested time and money into this project and can't stand to see it go to waste. That is another economic fallacy.
Mayor Mark Weir and some members of the city council appear uncomfortable with the situation, as well they should. Weir and councilman Kraig Hafen come from the private sector and probably, and instinctively, feel uncomfortable with spending based upon economic fallacies. Councilman Allan Litman, comes from a government background, but is well aware of the need to conserve taxpayer money and avoid questionable spending.
Clearly, appointed city administrators have forgotten, if they ever knew, that markets exist in both the private and public sectors and even government economic planning must be built upon classic market strategies. The same laws of supply and demand that govern business success also work in the delivery of government services and projects. It's up to the elected Mayor and the city council to steer these appointed administrators in more thoughtful economic direction.
In this deal with NCS, if it should continue, the two parties should quantify the exact nature of the market for increasing recreational opportunities in a desert setting this close to the well-established opportunities in both St. George and Las Vegas. If none exists, engage in some “out-of-the-box,” thinking as alternatives. If nothing fits into a marketable strategy, return the funds and move on. Consider, for example, the market that exists for smoke free gaming as an alternative to the current gambling environments. Instead of indoor recreation, the city-NCS and gaming investors could potentially re-open the convention center or the Oasis and offer quality dining in addition to smoke-free gaming.
Elected officials, among other things, could offer substantial tax credits for the business venture and possibly set-aside a portion of the complex for artists, writers, and a history museum with artifacts that exemplify the western life.
In the future, elected officials should consider a smoke-free city ordinance, based upon the economic success of this investment, and existing research by Richard Roesler (2006) and Eriksenand F. Chaloupka (2007)which shows that the fear of losing business if smoking is banned in casinos, bars and restaurants, is unfounded.
In marketable terms, Mesquite's true assets are not its smoke-filled casinos, seasonal golf courses and sports fields. Its true value is it's atmosphere of individual freedom, opportunity and a sense of well-being that comes from healthy, peaceful, desert living.
Michael M. McGreer writes on public policy. His books: No Harm, No Foul, Bioterrorism in the 21st century, and All Rivers Flow West, are both available on Amazon. Click here to see his blog
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