$11mil for Romare Bearden is a better investment than the $87mil for Panthers - here’s why

While my kids all have Panthers jerseys, the road to lasting urban relevance is not paved with civic subsidized sports teams. Recent public investments in 3rd Ward lay out the case for what really matters.

The Facts

– Romare Bearden Park. The city/county spent $11 million to develop Romare Bearden Park, excluding land. Since opening, the park has blossomed into an awesome uptown enclave.

– BB&T Ballpark. The city/county kicked in $14 million to help get the park built, with the remainder of the $54 million price tag paid for by the Knights, per press reports.  Attendance at Knights games nearly tripled in the first year Uptown.

– Bank of America Stadium. In 2013, $87.5 million of public funds were approved for improvements to Bank of America Stadium ($75 million for renovations, plus $12.5 million for maintenance and game-day traffic management), according to the Charlotte Business Journal. In exchange, the city gets a 10-year contract for the team to stay put. The first wave of renovations is finished, with subsequent improvements on tap for 2016 and 2018.

The Real Story

By taking 8 uptown city blocks “out of the market,” the city, county and their development partners created a scarcity of land. Scarcity drives demand, increased demand drives up prices and, in this case, higher prices for real estate ultimately lead to real cash in the form of higher property taxes.

Let’s model this

– Looking at the parking lot at 3rd and Poplar (224 W. Third St.), the property was valued at $1.38 million in 2013, a 13% increase from a $1.23 million value in 2010. A dashboard survey of the parking lot doesn’t show $150,000 of improvements!

C5’s Take

Important, well-timed investments can create value for cities in fungible ways. The owners of 300 South Tryon (currently a parking lot at the corner of 3rd and Tryon), recently announced plans to build an office tower and hotel complex. By my reckoning, this will be the first major office building Uptown since 2008. Looking over to the Bank of America/Ritz Carlton superblock at College and Trade, 300 South Tryon could be valued at +$200-300 million and generate over $3 million of annual tax revenue when it’s developed. When the city executes on a terrific common good (the parks), it acts as leader to spur adjacent property owners to make something really great.

Let’s continue the thoughtful allocation of tax dollars towards projects that spur development – with both a long-lasting aesthetic and financial return.

Photos: Mark Hames & Ortega Gaines / Charlotte Observer

This story was originally published December 10, 2014 at 12:56 AM with the headline "$11mil for Romare Bearden is a better investment than the $87mil for Panthers - here’s why."