State bill to help redevelop communities, not just stadiums

By MATT WUNSCHE
and PAT MCCABE
Collegian Staff Writers

For both Pennsylvania sports fans and their communities, help is on the way.

The most publicized aspect of Senate Bill 10, signed by Gov. Tom Ridge Tuesday, is funding for four new stadiums in Pittsburgh and Philadelphia. But the other elements of the bill may have a larger impact on the rest of the state.

The bill raises the cap on redevelopment assistance by $650 million. The Redevelopment Assistance Capital Program provides grants, funded by bonds, for economic, cultural and civic improvement projects, said Ridge spokesperson Steve Aaron.

Raising the cap means the "debt ceiling," or bond amount, for the program increases. In other words, the state can now float $650 million more in bonds for the program, Aaron said.

Local communities, however, must prove they can raise enough money to match the state's contribution. Also, both the General Assembly and governor's office must approve redevelopment plans.

"It's a merit-based program," Aaron said. "It's up to advocates from the local community. It's a 50-50 proposition. They have to show how they will raise their half of the money."

Of the $650 million, $320 million will be designated for new stadiums for Pennsylvania's major league baseball and football franchises, Aaron said.

"It will keep our sports teams -- the (Pittsburgh) Steelers, the (Philadelphia) Eagles, the (Pittsburgh) Pirates and the (Philadelphia) Phillies -- right where they belong -- in Pennsylvania," Ridge said in a press release.

State Rep. Lynn Herman, R-Centre, said it is important for people to realize this is not just a big-city bill. It allows for smaller projects, previously hampered by the funding requirements, to get off the ground, he said.

This sentiment was echoed by state Rep. Kerry Benninghoff, R-Centre. Previously, projects had to cost a minimum of $3 million to receive matching grants, but under the new bill, the cost was lowered to $1 million, he said.

By lowering the share of the start-up cost the community must be able to provide from $1.5 million to $500,000, it affords greater freedom in getting things done, he said.

"With these significant savings, (Senate Bill 10) makes us a real player in the area," he said.

Benninghoff said specific projects benefiting from this bill include arts facilities, water infrastructure and economic development. Previously, communities with water and sewage problems may not have been able to raise the funds necessary to receive matching grants from the state, but with the new bill, it will be much easier for communities to achieve their goals.

But even with those proposed improvements, a 1997 article in The Brookings Review states the positive effects of new stadiums, such as new jobs, increased tourism and higher tax revenues, often are overstated.

According to the article by Roger G. Noll, professor of economics at Stanford University, and Andrew Zimbalist, professor of economics at Smith College, long-term economic growth will occur when community resources, including capital and investments, become more productive.