THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, November 9, 1995 TAG: 9511090508
SECTION: SPORTS PAGE: C2 EDITION: FINAL
SOURCE: FROM WIRE REPORTS
DATELINE: SPRINGFIELD, VA. LENGTH: Medium: 54 lines
A major league baseball stadium in northern Virginia would create 1,790 new jobs and bring $7.7 million a year in new state taxes, a private study released Wednesday concluded.
The economic study prepared for would-be team owner William L. Collins III also figured a park could mean an annual $113 million in new spending at games and in related businesses such as hotels and restaurants. The local government where the stadium is built would reap an additional $1.3 million in new tax revenues annually, the study by KPMG Peat Marwick said.
``An economic impact analysis is one of the first major steps you have to take along this path. There are going to be questions about why should I vote for this, what is the benefit,'' said Mike Scanlon, a spokesman for Collins.
Building a stadium would require local and state government approval. Collins would probably seek state bond financing for some or all of the estimated $235 million project.
The tax estimates include income taxes players and park employees would pay, real estate taxes, business levies and sales taxes.
The new permanent jobs would include team employees, concessionaires, the hospitality industry and other related businesses, the study said.
The report was presented to the stadium authority deciding whether and where to build a park. Collins paid an estimated $40,000 to $50,000 for the three-month study by the New York-based consultant.
Building a stadium would mean an estimated $183.4 million in construction spending over approximately two years, Collins' report said. The state would get $3.4 million in taxes during the park's construction, the study said.
Stadium Authority Chairman George Barton said the study appears sound, but the authority will scrutinize assumptions about the secondary jobs and taxes created by the franchise.
Collins wants to buy a team and move it to northern Virginia, since the area was passed over for an expansion team this year. The team would play first in Washington's RFK Stadium, then move to a new home in the suburbs in 1998.
Collins has reportedly discussed paying up to $160 million to buy the Houston Astros. Collins said his talks with team owner Drayton McLane Jr. have been cordial but preliminary.
McLane has told Major League Baseball officials he wants to sell the money-losing team to Collins. Baseball's owners, who must approve the move, reportedly are skeptical. Acting baseball commissioner Bud Selig and other owners want McLane to exhaust all possibilities to keep the team in Houston before they entertain a move. by CNB