Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...
By Alex Ebert
Major League Soccer announced FC Cincinnati as the league’s next expansion team after the squad sealed its stadium plans with about $40 million in state and local support.
The team also reached a long-term tax increment financing (TIF) agreement with the local school board.
The May 29 announcement capped Cincinnati’s rapid ascent as a soccer town. The squad already nets crowds far above the 21,000-seat, soccer-specific stadium it is building for the 2021 MLS season. Despite a year of haggling with local officials, the team’s owners committed to paying an estimated $250 million of their own money.
“New cities embrace big things, we embrace new ideas,” Mayor John Cranley (D), a supporter of tax incentives for the team expansion bid said. “Great new cities don’t give in to naysayers.”
While the team is paying most of the way, that wasn’t always the plan. Last year, the team sought about $100 million in taxpayer assistance and authored an economic study arguing that the public support would lead to 820 jobs and bring about $71 million in new spending by the team’s fifth year.
But that plan didn’t catch on with the Cincinnati City Council or county, which would have had to increase or implement some new form of taxes. Over time, the team changed its request to commitments from the city and state to provide funding for the public infrastructure around a team-built stadium.
The team won over the Democratic-controlled city council twice. First, it got a vote in November for a $52-million incentive agreement that fell through because it couldn’t secure that location. Then the team landed a final $34 million in city taxpayer support through a mixture of money from local hotel taxes, Cincinnati’s capital improvement fund, and TIF revenue.
The team also won over the state and local school board. The Ohio Legislature provided $4 million in this year’s capital improvement budget. The team also secured the new stadium’s land in a TIF and land-swap deal with the local public school system.
FC Cincinnati’s bid falls between two extremes in the public funding debate for pro soccer.
In January, the league announced that a David Beckham-led expansion in Miami is going ahead with private funding, asking nothing from the taxpayers.
In December 2017, the league approved Nashville’s expansion plan, which calls for issuing between $200 million and $225 million in bonds for a 27,500-seat stadium, funded with a ticket tax.
To contact the reporter on this story: Alex Ebert in Columbus, Ohio, at firstname.lastname@example.org
To contact the editor responsible for this story: Ryan C. Tuck at email@example.com
Copyright © 2018 Tax Management Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)