Category: non-sports subsidies

Friday roundup: Moreno re-ups Angels lease, plus sports leaders mumbling incoherently

access_time personNeil deMause

So this happened:

That’s it, I’m done, I can’t top that. RIP comedy (???? – 2025 AD), reality has finally become too absurd even to laugh at.

If anyone still cares about the rest of the news, here’s some:

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Was the Carolina Panthers’ $650m renovation deal really the worst of 2024? An investimagation

access_time personNeil deMause

The Center for Economic Accountability, a friend of this site, announced its annual “Worst Economic Development Deal of the Year” award for 2024 this week, and the winner was the city of Charlotte, for giving $650 million to Carolina Panthers owner David Tepper for renovations of his team’s stadium. CEA said in a press release that “Charlotte’s Bank of America Stadium deal stood out from the rest of the competition for a combination of factors that included its high cost, lack of transparency, poor returns, questionable economic justifications and the Panthers ownership’s checkered history with subsidized projects.”

There’s certainly a lot to be said for the Panthers deal as a terrible one: The city of Charlotte put up $650 million out of $800 million for renovations to a 28-year-old stadium it didn’t build and doesn’t own, in exchange for Tepper extending his lease for just 15 years and getting to open “good faith” negotiations for a new stadium as early as 2037. Still, it’s worth looking at some of the other contenders from 2024:

All worthy candidates, even if there can be only one winner. The lesson here isn’t that Charlotte is singularly bone-headed when it comes to handing out public money to local billionaires; it’s that siphoning off public money for private profit is a pandemic with no end in sight, and even the less-bad deals would be scandalous in a saner world.

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Friday roundup: Browns officially want $1.2B for Brook Park dome, Chiefs will take whatever stadium money someone offers

access_time personNeil deMause

Thanks to those who’ve re-upped as FoS supporters in recent days without my reminding you. There are still a handful of numbered Vaportecture art prints left, so donate now if you think that’s the kind of thing you’d like, or if you don’t want that thing near your house at all but just want to support the work of this site.

Speaking of work, there’s a whole lot of it today:

  • Cleveland Browns owners Jimmy and Dee Haslam have confirmed they are indeed focusing on a new domed stadium in suburban Brook Park, releasing a statement yesterday saying, “The transformative economic opportunities created by a dome far outweigh what a renovated stadium could produce with around 10 events per year.” The statement also said that “this stadium will not use existing taxpayer-funded streams that would divert resources from other more pressing needs,” which neatly obscures the fact that it would use $1.2 billion in new taxpayer-funded streams that would divert resources from other more pressing needs. And headlines like “It’s official: Cleveland Browns moving to Brook Park” remain premature, since nobody in state or local government has approved the $1.2 billion in tax money yet, so really we’re still just at “Browns owners’ #1 choice is someone giving them $1.2 billion,” and who wouldn’t want $1.2 billion? I bet you could roll around in it real nice.
  • Speaking of non-announcements, Kansas City Chiefs owner Clark Hunt says he might want to move to a new stadium in Kansas, or move to a new stadium in Missouri, or renovate his current stadium in Missouri, whatcha got? “I certainly don’t expect to have anything finalized by [next spring], but I’d like to know the direction that we’re heading in that time frame,” said Hunt, which isn’t even a fake deadline, come on, man, don’t you know you’re supposed to set a date and then move it later if necessary? Do I have to call you up and read Chapter 4 to you out loud?
  • In extremely unsurprising news, NFL owners unanimously approved Jacksonville Jaguars owner Shad Khan’s plan to accept $775 million in public money to pay for stadium upgrades. “The NFL believes in Jacksonville. I believe in Jacksonville, and I know our fans and the people throughout the community believe in Jacksonville,” Khan said after the vote from London, where his team will keep on playing one “home” game a year under the new deal because one can always believe in two places at once.
  • As if Chicago doesn’t have enough new stadium demands, Chicago Fire owner Joe Mansueto says he’s looking at building a soccer-specific stadium as well. Mansueto says it would be privately funded, but they all say that, so if he does settle on a location and a plan, it’s worth keeping an eye on the fine print.
  • For everyone writing up your “Where will the Tampa Bay Rays play in 2025?” articles, please cross Durham, North Carolina off the list, Bulls management says there’s no room there. Also if you’re wondering what is being done with the Rays stadium roof that was blown off last week, you can buy bits of it on eBay.
  • Green Bay Packers management says it wants to sign a 30-year lease extension on Lambeau Field and pay for all stadium upgrades in that time and just wants the city of Green Bay to freeze its rent in exchange. That’s probably not a terrible deal, but it would cost city taxpayers something — $30 million, according to city operations chief Joe Faulds — and the current lease runs through 2032 with a 10-year team extension option, so one can see why the city might not jump at the chance. Anyway, let this be a reminder that even fan-owned sports teams can demand public money, nonprofits got the profit motive too.
  • It took 27 years for this Tom the Dancing Bug cartoon to come true, but with cities like Tulsa offering cash payments for remote workers to relocate to their cities, you too can now be Ned Balter.
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Kansas official: Multibillion-dollar bidding war for Chiefs and Royals is “gross” but still “the right thing to do”

access_time personNeil deMause

The Missouri Independent ran a long article on Friday about the current border war between Missouri and Kansas over the Kansas City Chiefs and Royals, much of which is about how throwing money at sports teams to move to your state is pointless, which you can probably skip if you already read this website. What’s more interesting, to me anyway, is what it says about how and why elected officials in both states are totally chill about engaging in a bidding war despite agreeing to a binding ban on interstate bidding wars just five years ago:

“I do not like this. It feels gross,” Kansas state Rep. Jason Probst said during a caucus meeting of House Democrats in June. “This whole show that’s going on feels disgusting to me. And it’s still the right thing to do.”

In an interview, Probst, who is from Hutchinson in central Kansas, said the reality of professional sports requires governments “to play the game” and offer public assistance, lest they risk losing teams altogether.

“You can stand on your principles. … But if another state isn’t playing by the same set of rules you are, then they’re going to make that investment and they’re going to take that away,” he said.

Yeah, that whole “this is bad policy, but if we don’t do it somebody else will” thing is precisely why development subsidy watchdogs have been saying there’s a need for cross-border nonaggression pacts for almost 30 years now. And Kansas and Missouri did just that in 2019, but unfortunately it only seems to have applied to Kansas’s payroll-tax-kickback program, not the sales-tax kickback program it plans to dip into for $1.4 billion or more of state stadium spending, so oh well! Also, apparently legislators back in 2019 forgot to say out loud that they were including an unstated “sports teams don’t count” clause:

“The sports teams are sort of in a special category of their own. I don’t think that’s what that legislation really was meant for,” [Missouri House Majority Leader Jonathan] Patterson said of the truce.

The article also includes some dirt on the STAR bonds program that Kansas has approved for use on new Chiefs and Royals stadiums, noting that it is “often-criticized” and has mostly “failed at its goal of increasing tourism” and has even led to defaults on one project’s bonds when sales tax revenue came in slower than expected. Kansas officials point out that since these are revenue bonds, the state can just let the bondholders swing in the breeze if the bonds default; University of Colorado-Denver economist Geoffrey Propheter counters that that’s never going to happen:

“In the real world, there’s a huge risk to Kansas state taxpayers,” he said. “They’re going to have to decide to either bail out the project or do nothing. And if they do nothing, their credit, the state’s credit worthiness, will take a hit. And that will make all future borrowing more expensive.”

All of this is an excellent example of why relying on states and cities to agree to stop raiding each others’ businesses is a hopeless cause: As the 1995 Federal Reserve Bank of Minneapolis paper cited above notes, there have been lots of attempts at interstate nonaggression pacts, and they’ve always ended up being broken by one state or another. The only solution is for Congress to step in — which U.S. Rep. David Minge tried to get it to do back in 1999 by taxing local level subsidies out of existence, only to find that his colleagues in the House had no interest in even giving it a committee hearing, doubtless because business leaders in their states wanted to keep those subsidies flowing.

The next best hope is that local officials on one side of the state border or the other decide to say “too rich for our blood” and let the neighboring state “win” the team and all the stadium costs that go with it, knowing that those can never be paid off by whatever small bump results in local tax revenue. Unfortunately it doesn’t look like anyone made this point in the Independent article, but hang on, I’m not to the end yet, oh look:

But this sort of jockeying between states only benefits team owners, said Neil deMause, a journalist who has written a book about stadium subsidies. Taxpayers and fans, he said, stand to gain little, especially if game tickets become more expensive at new facilities.

“All the economists I know say the best thing you could do is reject it for your state and have the stadiums get built in the other state,” deMause said. “You still get to go drive across the border and see the games the same way as you would otherwise … but you don’t have to pay for building the thing.”

What that guy said.

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Friday roundup: $2.5B Philly stadium development could demand public money, KC sales-tax vote too close to call

access_time personNeil deMause

It’s Friday again, and you know what that means: Time for the cavalcade of bullet points on news we didn’t have time for the rest of the week (or which just broke since Thursday morning, that happens too).

  • The Philadelphia Phillies and Flyers owners say they’re going to partner on a $2.5 billion mixed-use development in the teams’ shared parking lots, with restaurants, shops, hotels, apartments, and a 5,500-seat performance stage. The Philadelphia Inquirer reports: “Asked if the project would require public tax dollars, the company said that it was still working on an estimated cost, and that there were many ways to finance the development,” which is decidedly not “no”; stay tuned on this one.
  • Apparently it is allowed to conduct polls in Missouri during the early voting period, and one conducted in Jackson County on the April 2 referendum on a 0.375% sales tax surcharge extension to fund Kansas City Royals and Chiefs stadium projects is … tied, basically, with “yes” ahead by 47-46% but with a 4.5-point margin of error. The poll was taken last weekend before the latest news that community groups are urging a “no” vote, and by the Remington Research Group, which is connected with the “yes” campaign, so all this doesn’t look great for the team owners, though of course they still have more campaign spending to do.
  • Asked if state and city money would be required for the $2 billion Royals stadium — since team owner John Sherman is only putting in $1 billion and the county sales tax surcharge would only generate $250-350 million, sure seems like yes — team EVP Sarah Tourville told Fox4KC: “What I’ll tell you is that the Royals are committed to putting private capital into the stadium. We’re committed to a billion dollars of private capital in the stadium district.” That’s also decidedly not “no.”
  • The Arizona Coyotes briefly posted some arena renderings on their team app on Tuesday, and they’re super-tiny images that don’t have any fireworks at all, come back when you have something high-resolution, guys. Team owner Alex Meruelo still doesn’t actually have the land to build an arena on, since he first has to win an auction for state land where the bidding starts at $68.5 million, then also find the money to build the thing, but baby steps, and baby images, first, apparently. A Sportsnet reporter warned last weekend that the Coyotes could relocate if they don’t win the land auction, but 1) there might not be time to do so before the 2024-25 season and 2) we’ve been hearing this for decades now about multiple arena plans, wolf-crying caveats apply.
  • Oakland A’s management has agreed with the Las Vegas Stadium Authority on a community benefits agreement worth at least $2 million a year, which is less than they’re paying 34-year-old relief pitcher Scott Alexander. Also, community benefits agreements are supposed to be signed with community groups that can oversee and enforce them; teams can sign them with local politicians, sure, but that generally turns out very badly.
  • Speaking of going very badly, “Oakland A’s again block all replies on Twitter after realizing how much everyone hates the A’s” is an excellent headline about how very badly things are going for A’s execs right now.
  • The Chicago Bears could use personal seat license sales to fund “a significant portion” of a new lakefront stadium, reports Crain’s Chicago Business, which also notes that the team used PSLs to fund a portion of its 2002 renovation of Soldier Field — a portion of the team’s share, not the public’s share, don’t get crazy now — and that those licenses’ “value would evaporate” if the team moved to a new stadium. “Buy the right to buy tickets and keep it forever or until we tear down the stadium and build a newer one, whichever comes first” would not seem to be the best marketing strategy, but team owners do seem to rely on sports fans having short memories.
  • I was all set to see where sports subsidies would fall on Phil Mattera’s list of biggest mega-scandals, but sadly he ranks these by how much in penalties companies have paid for their misdeeds, and sports team owners have so far escaped prosecution for their crimes, unless you count the St. Louis Rams settlement.
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Friday roundup: Opposition builds (somewhat) to sports subsidy plans in Virginia, Kansas City, elsewhere

access_time personNeil deMause

It’s been a rough week, what with new stadium demands dropping every couple of hours, half of them from Jerry Reinsdorf. But there have also been signs of new organized opposition from all corners, some of them involving heavy hitters:

  • The Northern Virginia AFL-CIO came out against the proposed Washington Capitals and Wizards arena in Alexandria after being unable to reach an agreement with the teams and the state on whether a hotel that would be part of the $2 billion project would employ union workers. “If they’re against it, then the arena deal is probably going to have a very difficult time,” remarked Virginia House Speaker Don L. Scott Jr. afterwards, as the arena bill heads for reconciliation talks between the house, which passed it, and the senate, which didn’t even give it a hearing. “If it dies, it dies.”
  • Virginia state Sen. Louise Lucas, meanwhile, upped the ante on her opposition to Alexandria arena plans, challenging D.C. Mayor Muriel Bowser on Twitter to “compete by both offering $0 in taxpayer dollars to these teams and let them decide where they want to pay to build their own arena.” (Bowser’s account did not respond, unless this counts.) Former Alexandria mayor Allison Silberberg, who is part of the Coalition to Stop the Potomac Yard Arena campaign, was so pleased that she brought Lucas a cake.
  • After the Kansas City renters’ group KC Tenants came out against the upcoming April 2 referendum to renew Jackson County’s 0.375% sales tax surcharge and give the money to Royals owner John Sherman as part of a potential $1 billion in public money for a new downtown stadium, calling it “$167 per household, per year, all to pay for a playground for the wealthy and for tourists,” a group of city residents have formed the Committee Against New Royals Stadium Taxes to likewise oppose the tax hike. The group has “little to no money in its bank account,” according to the Kansas City Star’s account of campaign manager Tim Smith’s characterization, but it does have a parked domain name and its organizers are members of the extremely active Save Kauffman (Royals) Stadium at Truman Sports Complex Facebook group, which is a recommended follow if you want to see how extremely angry many Kansas City residents, and Royals fans, are about this whole state of affairs.
  • Arthur Acolin, a real estate economics professor at the University of Washington, released a three-page report on the proposed downtown Philadelphia 76ers arena that found that disruptions to existing businesses during construction and operation could cost the city and state between $260 million and $1 billion in lost tax revenues. The math is a little rough — it looks like Acolin just added up all the economic activity in the area of the proposed arena and calculated what would happen if it fell by sample round numbers — but as he writes, “the 76ers have provided nowhere near this level of details nor any of the analysis behind their figures.” It was enough to get the 76ers to respond by calling the report “fatally flawed” and “another attempt by those who oppose the project to obfuscate the truth by pumping out misinformation and half-baked theories instead of engaging in productive dialogue,” in a CBS News article that repeatedly refers to Acolin as “Albert Alcoin,” which should get all their copy editors immediately fired, if they had copy editors, which they probably don’t.
  • Arizona Republic sportswriter Greg Moore wrote a column about Diamondbacks owner Ken Kendrick’s threat to leave town if he doesn’t get public stadium money that includes the subhead “I don’t like bullies,” and really the rest of the column is just icing on that four-word cake.
  • I brought my mighty rhetorical weight to the airwaves, or at least the internetwaves, by going on the Sox Machine podcast to talk about why giving Reinsdorf $1.7 billion in tax money for a new Chicago White Sox stadium development (since upped to $2 billion) would be crazytown.

So that’s it, then, the tide is finally turning, and maybe soon we can all stop pushing this damn rock back up this damn hill day after day? Hahaha of course not, the forces of vacuuming up money and giving it to rich people so they can have more money (because that’s what makes them rich people) continue unabated:

  • The Utah legislature advanced a bill to hike sales taxes in Salt Lake City by 0.5% to generate $1 billion for an arena for a nonexistent NHL team, with the backing of Mayor Erin Mendenhall. This would be on top of $600 million or more in proposed hotel tax hikes to help pay for a stadium for a nonexistent MLB team. Hockey bill sponsor state Sen. Dan McCay denied that this was giving in to threats by the Jazz ownership that they could move out of the city limits without a new subsidized arena, then added, “you’d hate to see downtown lose the sporting opportunities they have now,” so, yeah.
  • Chicago Mayor Brandon Johnson delivered up a fresh bowl of word salad about whether he’ll endorse city money being used for a new White Sox stadium: “As far as public dollars, we haven’t gotten into any of those specifics just yet. But I will say that we’re gonna explore all options. … Everything is on the table here. But again, I want to make sure that there’s a real commitment to public use and public benefit. … There’s no guarantee that they’ll get it from the city. What I’ve said repeatedly is that we need to make sure that our investments have real public benefit and that there has to be a commitment to public use. Those conversations are being had, and there are some promising developments that eventually we’ll be able to talk about out loud.” He has it right here on this list…
  • The new $27 million Rhode Island F.C. soccer stadium in Pawtucket will now cost state taxpayers $132 million over 30 years, because the Pawtucket Redevelopment Agency got a terrible bond rate. State commerce secretary Liz Tanner defended the pricey borrowing by pointing out that even though the state legislature could have just appropriated the money and saved taxpayers a ton of interest payments, “there would’ve been a level of uncertainty without knowing whether the legislature was going to pass those dollars or not,” and we can’t have that, now can we?
  • The Dodger Stadium gondola project — surely you remember the Dodger Stadium gondola project — lurched forward again on Thursday when the Metro Board of Directors signed off on its environmental impact report. The gondola still needs approval from the city of Los Angeles and parks and transit officials, plus to figure out who exactly will pay for its potential $500 million price tag, but if nothing else it lives to gondola another day.
  • Oakland A’s owner John Fisher is reportedly focused on staying in Oakland until a new Las Vegas stadium is open in 2028, and also Sacramento is the frontrunner to be the temporary home of the A’s, this is way too blind-men-and-the-elephant for me, maybe let’s all calm down about the latest rumors you heard, guys.
  • And in non-sports news, Louisiana Gov. Jeff Landry defended signing a bill to remove the requirement that recipients of state development subsidies report how many jobs they’ll be creating, because “this program is about capital investment. It is not about job creating.” Just gonna sit here and let that roll around in my brain for a while, have a great weekend and see you back here Monday!

 

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Friday roundup: Sports subsidy protests in Virginia and KC, plus 2023’s biggest non-sports subsidies went to an industry that may surprise you (this is how clickbait headlines work now, right?)

access_time personNeil deMause

No news worth reporting yesterday, but I instead spent my morning recording this interview about the Oakland A’s potential move to Las Vegas, which covered a lot of ground in just half an hour. Tune in to hear what Brodie Brazil and I discussed, or just to see what’s on my living room wall behind the other end of the sofa from where I usually sit for Zoom interviews!

And a few other things of note happened this week, let’s get to them:

  • The newly formed Coalition to Stop the Arena at Potomac Yard rallied yesterday at the site of the proposed $2 billion Washington Capitals and Wizards arena, with former Alexandria vice-mayor Andrew Macdonald saying, “We don’t need an arena to thrive,” and local resident Shannon Curtis saying the project would “create a traffic boondoggle.” In related news, apparently the Potomac Yard Metro station was set for possible closure until this project was proposed because nobody was using it, but now, as discussed before, it would need expansion to handle arena-sized crowds. Hmm, maybe that should be included in the already-$1.5 billion public price tag? Just a crazy notion.
  • People in Southeast D.C., which is home to the new arena where the Washington Mystics play but which may lose the team to the current Capitals and Wizards arena if those teams relocate from D.C. to Virginia, are equally steamed about the whole thing. “I can’t stress enough that we’re not leaving; there’s still a commitment to the neighborhood,” promised Caps/Wizards senior VP John Thompson III, saying the team owners would work with the city to “bring other events” to the neighborhood “to help fill the void” — which sure sounds like leaving, though I guess keeping the arena open and every once in a while holding a concert there or something is technically just “moving out and promising to visit.”
  • As if Kansas City Royals owner John Sherman didn’t have enough prospective stadium sites to play off against each other, now the owners of the old Kansas City Star printing plant site want back in the game. (No details on who would pay for a stadium at that location.) Meanwhile, residents packed the first public meeting by Jackson County yesterday on the Royals’ plans, with KMBC reporting that “many voiced their concern about continuing a tax when they didn’t know where the stadium would be or any specifics about how it would benefit low-wage earners.” The local food and retail workers union also demanded that the project include a community benefits agreement to require that stadium jobs be union, which is already part of the tax extension proposal, and anyway CBAs often don’t work out that well for many reasons. But sure, better-paying jobs are better than worse-paying jobs, can’t get if you don’t ask.
  • The owners of the new Oakland Ballers minor-league baseball team say they signed a deal to rent out the Oakland Coliseum to host one game this summer, but A’s execs blocked them by enforcing their exclusive right to play baseball at the stadium. (Yes, the stadium that A’s owner John Fisher is trying to get out of as fast as possible. Irony is not his strong suit.) A fan group spokesperson said he figures it’s because Fisher was in “a position of embarrassment” because “I think we would have outdrawn them,” which is maybe wishful thinking but also maybe not.
  • Wondering how the biggest sports subsidy deals compare to the biggest non-sports subsidy deals? Check out good Jobs First’s list of the top megadeals of 2023, headed by Ford getting $1.7 billion from Michigan for an electric car battery plant and Volkswagen getting $1.3 billion from South Carolina for its own EV battery plant. Nothing against electric car batteries any more than against sports, but at 6,500 jobs combined, that’s nearly half a million dollars per job, which is a sports-level awful ratio — good job, car companies, even if not good jobs!
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Friday roundup: Tempe faces probe for spying on arena opponents, WI trims Brewers subsidy ask to mere $557m, plus new adventures in logical fallacies

access_time personNeil deMause

 

 

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Friday roundup: Coyotes suing Phoenix over arena suit, Bills agree to CBA with no oversight, and other adventures in fine print

access_time personNeil deMause

Lots going on this week, so let’s get right to it:

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Friday roundup: Titans inch closer to $1.26B in public cash, O’s looking to replicate Braves’ ballpark district somehow?

access_time personNeil deMause

Welcome to the end of another week, wherein I have bookmarked an article on why we never have enough time but haven’t found time to read it. I want to consider whether this qualifies as real irony or the Alanis kind, but I apparently don’t have time for that either, so it will have to be left as an exercise for readers — today’s comments should be fun!

And now, on to more things we didn’t have time for this week:

  • The Metro Nashville council passed a bill on Tuesday to issue $760 million in bonds for a Tennessee Titans stadium — part of a larger $1.26 billion public commitment for a $2 billion stadium— even though nobody knows exactly where the money would come from to pay off the costs. This is one of those things where the council has to vote multiple times on the same thing, though, so the real final approval vote is set for April 4, by which time maybe some of those questions will be answered, but I wouldn’t hold my breath. “I don’t even think we should be going through the farce of the first reading on a bill this massive with this big of a price tag when we have an administration that didn’t answer our most basic questions and give us the information that we needed,” said councilmember Ginny Welsch, one of 10 councilmembers to vote against the bill, which is more than the eight who voted against a similar proposal back in December but there are 40 members on the council total, hence the recommendation against breath-holding.
  • Maryland Gov. Wes Moore is preparing for lease extension talks with the owners of the Baltimore Orioles by visiting the Atlanta Braves‘ stadium district, which Maryland Stadium Authority chair Craig Thompson noted “is looked at and admired by some as a model.” Sure, okay, but it was also built on completely vacant land in the suburbs, while Camden Yards is in the middle of the city and surrounded by existing buildings, including a historic warehouse that was turned into an Orioles mall that is also looked at by some as a model, where are you going with this, guys?
  • The Richmond Flying Squirrels‘ stadium is getting $3.5 million in city-funded upgrades even though it’s set to be replaced by a new one soon because MLB threatened to annihilate the team otherwise, as MLB does. “Richmond is just on fire right now and we’re really, really excited,” said Flying Squirrels COO Todd “Parney” Parnell, which, too soon, Parney.
  • Hey, remember when Virginia “won” the race to host Amazon’s new second headquarters by offering up $750 million in subsidies? How’s that going? Oh.
  • Haven’t had enough bullet points yet? Please enjoy this list of bullet points about the many ways corporate subsidies in New Jersey are messed up! My favorite is how the state Economic Development Authority gets more money for its own budget the more tax breaks it hands out, what’s yours?
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