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Manhattan Institute Senior Fellow Steve Malanga on cities spending money to build massive convention centers.
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It's nothing is cities have been shelling out big box to put out massive convention -- -- in bringing in in and more money.
With events like well the Detroit auto show that's right but doesn't work our next guest says his giant waste your tax dollars people I'm guessing development advances.
It's obviously recovered the auto show this week advocates of electronic shot Vegas sub later in the places they want it out it's always you say no I would say it's.
Always what I would say however is that the industry has been shrinking for years it's shrunk by about twenty to thirty million attendees in the last decade.
And -- at the same time cities continue to keep building more more than -- -- -- increased from 53 million to seventy million square feet.
So there's no incremental business out there.
And yet around the country they're all these new projects including this mega project that was just announced in New York last week yes the biggest convention center in -- country I don't.
Enough private funding -- I believe that Cuomo is out for people -- other countries yet local story.
And -- -- as a governor new York and he wants to build a huge convention center -- where the aqueduct racetrack weighing -- increase in but it side believes to be privately funded -- that's how he -- well there's a quid pro quo there because he wants that that they would be the builder is going to -- -- also going to have the opportunity to do casino gambling and -- but I still have my doubts because there's not there's no incremental business even.
The places like Las Vegas we have which has -- CES show Orlando.
And Chicago which of the three big multi.
Your -- that place is kind of the great -- down.
Of over -- expansion in the you've -- debuted at Rebecca McCormick place for an event -- -- just massive amounts of empty space but again.
To -- point you mentioned private money -- it's on the back -- taxpayers with in many of these.
As in most of these places and that's the other thing is that in a lot of places where they have expand or are expanding its always about government money -- especially municipal bond money and you have to ask yourself well this is such a good business that everybody wants to be -- minute why isn't the private sector building these thing rights.
You know it reminds there's always been an argument about and the similar to this about sporting arena -- a done a million stories are engineers about we have one of New York to -- to -- Olympic Stadium on the westside of Manhattan and and other cities have been through this.
Where they say well if we build the stadium is gonna bring X amount of of money -- And they usually don't take into account the money that was already there then -- -- the replacement factor and economics the -- That's the same deal here with mr.
absolutely and here's a thing as both did.
All of these centers and all these -- -- -- all these stadiums 23.
-- 24 NFL -- last two decades almost all built with public money.
All these things -- all build on these studies which say well here's what will get if we build it right well we built a lot of these places and we've been able to go back and look at them and studies have shown.
They never produced anything like the kind of bounce they produce a lot of low wage jobs.
But I think we can go to -- -- -- -- that would.
Then it begs the question they get bill why and is the 'cause it's favoritism is political favoritism.
To builders contractors develop.
Listen listen but Mayer's love to cut ribbons on stadiums and convention centers that says that we're doing some thing.
You know over the long run but then the taxpayer gets stuck with the bill.
Usually about time that happens whoever actually did the deal the mayor to do you know the god there -- -- by that is that that's where but I guess that would discuss this and I tell you who is right about it as Yogi Berra used to say no when he goes that restaurant because too -- to try to does this fit the idea that like.
I think so all these people come to the restaurants and then what about the people don't go because they don't want to deal with the crowds of the new people coming of the restaurants and Arnett.
-- still people how I thank you -- obviously if the appreciate it.
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