Monthly Archives

August 2020

How New Sports Stadiums Impact Local Economies

By | Sports

There’s nothing like going to a sports stadium to watch your favorite game. The atmosphere, the fans, the beer, and of course the game itself make for a one-of-a-kind experience. With arenas and fields housing this high-octane excitement, constructing a complex that fits the team’s and fan’s needs is essential for the franchise’s success. Renovations to the sports stadiums and construction of the ballpark depend on sufficient funding, with most of it coming from public sources. This makes it imperative to have a group of advocates, such as Dorn Policy Group, to provide assistance in voicing concerns to key government officials. 

Where Does The Money Come From to Construct Sports Stadiums?

Major league sports in America are in the midst of a major restructuring. There have been several new teams that have entered the major leagues, as well as several relocations. They’ve all either needed to renovate stadiums that were in their respective cities, or completely construct new ones that meet their requirements. 

Most of the money comes from public sources. The subsidy starts with the federal government, which allows state and local governments to issue tax-exempt bonds to help finance these sports complexes. It lowers interest on the debt and as a result, reduces the amount cities and teams are paying for a stadium. However, that money comes from taxpayers, so municipalities must consider what is in the public’s best interest. 

How Sports Stadiums Impact a Cities Economy

“Build the Stadium – Create the Jobs!” exclaimed the San Francisco 49ers as they campaigned for a new stadium in the 1990s. Building stadiums create a lot of buzz, but do they truly impact the local economy? Proponents claim having sports facilities improve a city’s wealth in four ways. 

  1. As the 49ers said, building new stadiums creates jobs in construction, maintenance, customer service, and engineering.
  2. People who attend games or work for the team will produce new spending power within the community, which will expand local employment.
  3. Teams attract tourism to the city, further increasing local spending and jobs for the community.
  4. All of the new spending will have a “multiplier effect,” where the increased local income will cause more spending and job creation.

Advocates argue after the team’s successful launch, they will create so much economic growth they will become self-financing. However, proponents believe the four benefits can be overstated. Economic growth occurs when a community’s resources become more productive. Building sports stadiums is only good for the local economy if a stadium is the most productive way to make capital investments and use its workers. According to the Berkeley Economic Review, the average stadium makes $145 million per year, with none of the revenue going back into the community. 

Dorn Policy Group: A Shutout Lobbying Firm

Ballparks will naturally have a big impact on the local economy. It is a long, grueling process to construct and renovate a stadium that hangs entirely on the shoulders of local government officials. At Dorn Policy Group, we will advocate on your behalf to ensure the right people hear your concerns. Contact us today to learn how we can help your organization fulfill its goals.

Senators Introduce a Bill to Finance Loans for Rail Infrastructure Projects

By | Transportation

The most important component of any railroad is its infrastructure. The term means the combination of elements that make up the rail’s right-of-way (bridges, tracks, tunnels, ties, etc.) and equipment (signs, mileposts, switches, etc.). Rail Infrastructure is vital for our economy, and it is important to have a lobbying firm in place to advocate for and against policies that will impact its efficiency.

A couple of months ago, Senators John Thune (South Dakota) and Maggie Hassan (New Hampshire) introduced the Railroad Rehabilitation and Financing Innovation Act, which aims to improve on the existing Railroad Rehabilitation and Improvement Financing (RRIF) loan program.

What Does The RRIF (Railroad Rehabilitation and Financing Innovation Act) Mean for Rail Infrastructure?

The Railroad Rehabilitation and Financing Innovation Act seeks to improve the RRIF program through three objectives

  1. Half of the funding will be dedicated to short line railroads and the other half will be for passenger rail projects
  2. Streamline the application process by expediting credit review processes for loans and requiring the U.S. Department of Transportation (USDOT) to update applicants on the status of their application
  3. Become more flexible in regards to longer loan terms for certain rail projects and to modify how USDOT evaluates collateral and creditworthiness

How This Impacts Rail Infrastructure

The current RRIF program was launched over 20 years ago and has since only approved one short line loan due to its expense and uncertainty. The new bill is meant to provide stable financing for small railroads for infrastructure investment when they often cannot afford to apply for RRIF. Senator John Thune recognizes the bill’s impact, “This legislation makes necessary updates to RRIF so that short lines are better able to use the program as originally intended.”

In response to the new bill, the American Short Line Regional Railroad Association (ASLRRA) has stated, “The RRIF loan program has long been a promising but underutilized and frequently frustrating program.” In addition, the association is on board with the revisions to make the program a more attractive option for long-term financing.

Let Dorn Policy Group Help With Your Rail Infrastructure Concerns

While transportation has evolved since its inception, the rail system has been an integral part of the U.S. economy for over 200 years. As one of Arizona’s top lobbying firms, we are happy to work with railroad companies to make sure their voices are heard by the policymakers that matter. Contact us today to learn what we can do for you!

 

How Boutique Lobbyists Give Small Business Owners a Voice

By | General Lobbying

According to the United States Small Business Administration, there are approximately 28 million small businesses, which account for 54% of sales across a diverse range of industries.  While it is assumed lobbyists are only looking out for conglomerates, there are many lobbying firms that act on behalf of smaller businesses.  By employing boutique lobbyists to support their business, small business owners are able to voice their concerns with policymakers who matter.

What Are Boutique Lobbyists

Boutique lobbyists are individuals who work for smaller companies. They serve their small business clients by incorporating strategies into their advocacy approach to reach targeted decision-makers. Similar to large corporations, boutique lobbyists focus their efforts on serving businesses based on their political needs. However, the biggest difference between small business lobbyists and those who handle large companies’ political affairs is the client’s ability to spend. Smaller lobbying agencies will understand this and will often take a more frugal approach in their strategy in order to obtain the desired results. 

What to Expect From Boutique Lobbyists

Due to having a lower budget to accommodate smaller businesses, lobbyists will incorporate cost-efficient strategies into their campaign.  They will put their focus into smaller initiatives such as communication strategies, building strong relationships, and networking with the right people.  Another way boutique lobbyists work with small businesses is by including them in all aspects of the advocacy process.  Most of these businesses are working with lobbyists for the first time, so any good agency will take the time to explain their process and update them on their efforts.

Let Dorn Policy Group Work For You

If you are having trouble getting your voice heard by key policymakers let us be your microphone. As one of Arizona’s top-level lobbying firms, Dorn Policy Group is committed to each of our clients!  Contact us today to learn how Dorn Policy Group can help you!