Tuesday, February 10, 2009

Las Vegas's Latest Gamble

The February 8th New York Times article, Roll of the Dice on Las Vegas's Shabby Downtown, investigates the mayor of Las Vegas's decision to raise taxes on the lower-income parts of the city during the present economic decline. Downtown, which is faded and ignored "like a worn-out show girl," is mostly filled with older bars, wedding chapels, cash-checking stores, and a few new things like outlet malls. Mayor Oscar B. Goodman wants to dump cash in the eroding area to revive its glitz. Consider some of the plans for the editions/additions:
The project would include a new city hall (never mind that the existing one, built in 1973, has an addition only six years old), a casino resort (the first in downtown in some three decades) and office, residential and commercial space (because, the developers of this project assert, the eventual economic recovery will create demand for it).
The project would include a new city hall (never mind that the existing one, built in 1973, has an addition only six years old), a casino resort (the first in downtown in some three decades) and office, residential and commercial space (because, the developers of this project assert, the eventual economic recovery will create demand for it).
While the idea of revamping a decaying or tired part of a city is admirable and part of a mayor's responsibility, the timing and choice of neighborhood is unfair to the rest of a city known for swimming in money. "For taxpayers, the bottom line could mean borrowing $150 million to $267 million, with tax revenue from new development paying it back over time," the journalist reports. That is a lot of money to invest in a hope for the "eventual" for an area struggling with rent, mortgages, and business expenses. Especially as the burden is on those who live there and the reason is to clean up the face of the main drag.
He [the mayor] thought little of suggesting that federal stimulus dollars help finance a planned museum — downtown, of course — commemorating the mob’s role in building up Las Vegas...The downtown casinos have, however, never matched the allure of the Strip or its gambling and hotel revenue, and the area, though popular with some locals, has long struggled with crime and blight.
The injustice of imposing taxes on struggling communities to build and buy sports teams, arenas, more casinos, land, unnecessary city buildings, 1,000-room hotels, etc. is unnecessary padding of reputation for the wealthy without concern for the critical economic climate of less-prosperous areas or impoverished areas. It's not unlawful injustice, but it's inconsiderate social injustice. The downtown will not gain the most from this makeover--even if the will accrue more business, it will take more than newly-painted walls and fresh pavement to make it safe, and welcoming, and the fall before the eventual decline could be widespread and caused by one man concerned with appearance. Improvements can only be made when people can afford it, and the mayor is risking the entire low-income downtown by raising taxes.

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