Question 10.1: Benefits and Costs of a Convention Center and Sports Complex...
Benefits and Costs of a Convention Center and Sports Complex
A new convention center and sports complex has been proposed to the Gotham City Council. This public-sector project, if approved, will be financed through the issue of municipal bonds. The facility will be located in the City Park near downtown Gotham City, in a wooded area, which includes a bike path, a nature trail, and a pond. Because the city already owns the park, no purchase of land is necessary. List separately the project’s benefits, costs, and any disbenefits .
BENEFITS Improvement of the image of the downtown area of Gotham City Potential to attract conferences and conventions to Gotham City Potential to attract professional sports franchises to Gotham City Revenues from rental of the facility Increased revenues for downtown merchants of Gotham City Use of facility for civic events
COSTS Architectural design of the facility Construction of the facility Design and construction of parking garage adjacent to the facility Operating and maintenance costs of the facility Insurance costs of the facility
DISBENEFITS Loss of use of a portion of the City Park to Gotham City residents, including the bike path, the nature trail, and the pond Loss of wildlife habitat in urban area