The Pittsburgh Business Times reports that one of the key projects in that highly touted $600 million effort to reinvent downtown Pittsburgh is in trouble.
One lender has filed a foreclosure notice against the developer who was hoping to build new apartments atop the YWCA on Wood Street.
So much for the latest Pittsburgh “renaissance.”
That said, we were taken aback by this line in a local newspaper editorial:
“The Downtown plan got on the right track by helping developers close funding gaps caused by high costs and stingy banks.”
We all should be raising red flags when banks, having done their due diligence, don’t open up their vaults for dubious projects — but government types then raid the taxpayer kitty because, of course, they think they know better.
All together now: Ahem.
Here we go again: Local media is reporting on the grand economic benefits/impacts that this summer’s U.S. Open golf tournament in Oakmont will bring to the region.
It cites a $200 million figure claimed by the USGA, the United States Golf Association.
But The Sports Journal had a decidedly different take on such claims in general back in 2008:
“There are theoretical reasons to believe that economic impact studies of large sporting events may overstate those events’ true impact. In addition, evidence suggests that in practice the ex ante estimates of economic benefits far exceed the ex post observed economic development of communities that host mega–sporting events or stadium construction.
“The best recommendation is simply for cities to view with extreme caution any economic impact estimates provided by sports franchises, sponsoring leagues or event-organizing committees.”
It is sage advice that is roundly pooh-poohed by, you guess it, those who believe they know better.
Writing in The Center Square, John Styl quotes an expert to pooh-pooh the know-better crowd that keeps insisting on massive benefits/impacts for cities hosting the NFL Draft.
“Though I am not aware of any academic study of draft events, the extensive study of sports and mega-events demonstrates that there is little reason to believe that the NFL Draft might have some large economic impact that might justify … public expenditures” to support it, says J.C. Bradbury of Georgia’s Kennesaw State University.
“We know that these events largely just replace existing tourist spending and represent a small share of the local economy,” the professor noted.
Bingo.
And that comes from someone who really does know better.
Colin McNickle is communications and marketing director at the Allegheny Institute for Public Policy (cmcnickle@alleghenyinstitute.org).
