Every day, in homes and businesses, decisions are made based on return on investment. In making those decisions, we do the research, weigh the pros and cons, and ultimately choose the option we believe will be the most beneficial in the long run.
One of those decisions – the construction of a new stadium to replace an aging Georgia Dome – faces our state today. While there are certainly many factors to consider, an agreement to build a new stadium that shifts the vast majority of the construction expense and future risk to the private sector is a sound investment that will save taxpayers money in the long run.
Georgia has experienced the benefits of a new stadium. Construction of the Georgia Dome helped secure the 1996 Olympics, two Super Bowls, marquis college football games, and the NCAA Final Four. It is home to the Atlanta Falcons and to high school playoffs and has played a significant role in growing our hospitality and tourism industry, which generated $1.26 billion in state tax revenue and directly or indirectly supported 10.3% of jobs in Georgia in 2011.
But the Dome is no longer new. In fact, it is now one of the oldest stadiums in the NFL. Our competitors have been hard at work constructing new facilities that will threaten our future success. The Dome’s highest profile tenant has a lease that runs out in 2020, and events such as the Super Bowl or the Bowl Championship Series are only interested in newer stadiums. An agreement must be reached soon so that construction can begin and Georgia can retain its competitive edge.
Some argue that it would be better to renovate the existing Georgia Dome, but the facts tell us otherwise. The existing facility is owned by the state and taxpayers are responsible both for paying what remains of the bond debt, and for all operating, maintenance and capital expenses – including what would be a costly renovation.
The Falcons have proposed a deal for the new stadium in which they assume not only the majority of the cost of construction, between $700 and $800 million, but also the operating and capital improvement expenses – while treating the public sector as a partner with regard to design and the handling of all legacy events. In addition, the new stadium as proposed would allow Georgia to expand its sports industry by adding major league soccer, which continues to grow in popularity.
Opportunities like this one do not come along often and are never without their share of criticism. While it is important to respect all opinions – and to weigh all the facts – it is equally important that we make the decision that will be best for our state in the long term.
We applaud Gov. Deal, Mayor Reed, the Atlanta Falcons and state and local elected officials for their continued efforts to reach an agreement, and hope that they are ultimately able to reach a decision that will facilitate a new stadium, support our growing hospitality and tourism industry, and contribute to Georgia’s overall competitiveness. It is the right investment and one that will reap significant returns long into the future.
Steve Green is the 2013 chairman of the Georgia Chamber of Commerce and Chris Clark is the president and CEO.