The City is being asked to put in $160M of cash, $60M worth of land, $47M to build a parking garage, and $20M to $30M to move a power substation that's in the way. That's $297 million of capital that we are going to tie up.
So what kind of return are we getting out of this investment? How does $650K a year sound? (KMA report, page 3, 2nd paragraph.) That's 0.2% return on investment!
Compare this to some other investments:
|Mutual fund, indexed to S&P 500, 5 year average||8.23%|
|San Jose real estate (median home price, 2000-2005 average)||12.6%|
Councilmember Kevin Moore says the stadium sounds like "an absolute winner." Maybe. On the Planet Mongo. Not here.