Sweetheart deals with taxpayer dollars violate the public's interest

The ever-expanding use of taxpayer dollars and sweetheart deals by public officials to incentivize and subsidize the private projects of some of the wealthiest corporations is a violation of the public’s interest.

The Krause Group wants the taxpayers to contribute monies for a sprawling new downtown soccer stadium project. The preliminary proposal would use $40 million to $50 million of taxpayer dollars. For decades, economists have deemed such investment a poor use of public money.

Research shows that such projects do not bring enough economic benefit to justify the cost. The conclusion of decades of research tells us that scarce economic development dollars could be better used for other investments. A 2007 study in the Journal of Sports Economics found that adding a professional team did “not have a positive economic impact on the local community” and contributed no rise in regional incomes.

In addition, the ongoing legal saga over Downtown Des Moines Fifth Project has taxpayers on the hook for over $47 million. Some suggest the Des Moines City Council selected the wrong builder for the project. The Council members’ approval of the sale without discussion is a dereliction of their duty as public officials. City Council member Josh Mandelbaum, cousin of the developer, abstained from the vote, according to The Des Moines Register. The troubled project’s final cost to taxpayers is still unknown.

The “sweetheart deal” between the City of West Des Moines and Google might have worse optics. The city is handing over $40 million to the trillion-dollar corporation Google, for a citywide internet conduit network.

Read more: https://iowacapitaldispatch.com/2021/02/27/sweetheart-deals-with-taxpayer-dollars-violate-the-publics-interest/