April 26, 2007

Chamber Connection

History repeating…

By Pat Dando
President & CEO
San Jose Silicon Valley Chamber of Commerce

When opportunity knocks and doubts arise, it is best to look to the past to see what has worked and what hasn’t. Such is the case with the proposed move of the San Francisco 49ers to Santa Clara.

Not only is the notion exciting, it could quite possibly be the most important development project in Santa Clara in years. Packaged with a state-of-the-art stadium and an established fan base, one of the most popular NFL franchises is knocking on our door and we don’t have to look very far back to realize that this would be a most welcome houseguest. The HP Pavilion stands today as a glowing example of an investment that has, and continues to, pay off while providing an entertainment venue for young and old alike. Let’s not forget the controversial vision to build a theme park several years ago, and yet, Great America has since become a popular destination.

But the mere mention of public-private funding has a tendency to send many a taxpayer running for the back door. I remember when discussions to build an arena fit for a professional hockey team, not to mention a myriad of entertainment venues, was less than popular with residents. When recent talks turned toward tapping into Santa Clara's $387 million municipal utility reserve fund to help finance the $800 million stadium near Great America, power officials, who have rested comfortably on the surplus as a cushion for future electrical system improvements and “A” bond rating borrowing power voiced concerns that the prospect of higher rates would render the glass half empty, rather than half full.

Santa Clara has a rare opportunity to take advantage of smart savings by turning this project into smart investing. Sure it’s a risk, but these are odds this valley should take because the natural increase in jobs, consumer spending, tourism and tax revenue could produce a sizable jackpot, not to mention the notoriety we’ve desperately been seeking.

Preliminary estimates place the public investment at less than one-quarter of the total cost, despite the national average of over 30 percent allocated toward the other 32 NFL stadiums. In this case, the price of admission will give Santa Clara ownership of the stadium. This is not just another subsidy; it is an investment in our future.

The 49ers are without a doubt a substantial regional asset and Santa Clara would be well served to support this franchise’s efforts. Years from now, we could be gauging its many accomplishments by the glow emanating from the filled-to-capacity stadium with as much pride as we do the Shark Tank today. As with any vision, it all boils down to seeing the forest through the trees.