Sunday, March 20, 2011

Rolling Rams

Posted on Sun, Mar 20, 2011 at 12:00 AM

At times this season, Virginia Commonwealth University's mens basketball team looked horrid. In a blowout loss to the University of Richmond in December, the Rams couldn't buy a bucket, their defense was spotty and I remembered wondering if there was a serious recruiting problem.

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Thursday, March 10, 2011

The City Stadium Dilemma

Posted on Thu, Mar 10, 2011 at 12:00 AM

Virginia Commonwealth University is reasserting its interest in acquiring City Stadium, according to the Richmond Times-Dispatch. This isn't exactly big news, of course, as VCU has been expressing interest in the property ever since the University of Richmond built its own on-campus football stadium, which opened last fall. VCU would use it for multiple purposes, keeping the 16-acre property as an athletic facility, but make no mistake: the university sees City Stadium as a potential home for VCU Rams football, Division I-AA, if it ever decides to pull the trigger and start a team.

There's no question that VCU football makes sense. With a student population of 32,000, making it the largest public university in the state, and a huge alumni base in metro Richmond, it would have instant fans and paying customers. Football builds loyalty to the university, helps bolster fundraising and, perhaps most important, becomes a significant marketing tool for the university nationally. As President Michael Rao attempts to attract more out-of-state students who pay higher tuition, adding football can become a powerful campus amenity.

For the city, however, VCU's interest in the property poses a dilemma. City Stadium may be the most valuable piece of underdeveloped real estate in the city. It's bounded by Interstate 195, the Downtown Expressway and Powhite Parkway. See our story this week. Fulton Hill Properties wants to build a retail center on the site for this very reason: It may be the only property in Richmond that has the market potential to develop right now -- regardless of the economy — because of its size and interstate proximity, making it easily accessible from south and north of the river, from the near West End to Church Hill. 

While nearby residents want the property to remain an athletic complex, the property offers an opportunity for the city to land major, tax-producing retailers. Not that long ago, Wal-Mart even expressed interest in building a supercenter on the property. While even the mention of big boxes makes certain people in the city, and many in the surrounding neighborhoods, shudder, such retail can be a huge economic generator. In a city that desperately needs to add jobs and keep retail dollars from fleeing to the surrounding suburbs, City Stadium offers a rare opportunity. 

The economic impact of handing the property over to VCU would be nil. VCU is tax-exempt, thereby generating no real estate revenue. In fact, VCU already sits on nearly $1.5 billion worth of real estate between its medical and academic campuses. It doesn't generate a drop of real estate taxes.

And college football, if VCU does decide to launch a team, also wouldn't help the economy much. There is a wide perception that college football would mean big business, but not really. In fact, an economic study looking at the impact of college football games on local economies led by Robert A. Baade, a sports economist at Lake Forest College in Lake Forest, Ill., found that even major college football programs create no discernible economic impact on their respective communities. 

“While successful college football teams may bring fame to their alma mater, fortune appears to be a bit more elusive as big plays and big crowds inside the stadium don't seem to translate into big money outside the stadium,” the study concludes. Read the study here.

So, City Stadium becomes an interesting test for Mayor Dwight Jones and City Council. What to do? Cede the property over to VCU and realize no net economic benefit and keep nearby residents happy? Or sell the land to retail developers and go for jobs and tax revenue on behalf of the entire city?

Thursday, February 24, 2011

Hail Rockfish!

Posted on Thu, Feb 24, 2011 at 12:00 AM

Virginia's "Official" Saltwater Fish


Dealing as they do with weighty matters, the Virginia House of Delegates on Tuesday conferred the honor of "official saltwater fish" to the striped bass, otherwise known to Southerners as the "rockfish."

In many ways, this is cause for celebration. Rockfish are extremely tasty and tend to be caught in the cold months, when sustenance is needed. They can be cooked any number of ways, such as grilling, sauteeing and baking. I know a woman who steams them and then serves the fillet bits like a shrimp cocktail. I like to slow-roast mine with winter vegetables.

But there are questions about the rockfish and its haughty designation.

Del. Jackson Miller (R-Manassas) almost killed the catch, saying the lowly and oily menhaden was far more important commercially to the Old Dominion. What's more, it sustained English settlers at Jamestown in hard times.


I, for one, am tired of romanticized survival stories for, frankly, what were a bunch of indulgent gentlemen who lawn-bowled all day. There are other possibilities for the state fish, although not necessarily of the saltwater variety. One is the blue channel cat, which can grow so huge it can swallow a man whole like Jonah. Or the snakehead, a feared invader that a few years back caused the biggest alien invasion scare in D.C. since Klaatu and Gort landed their flying saucer on the Mall in 1951.

The rockfish is a fine fish for the Old Dominion. But others do claim it, too, and it may have Obama-like birthing issues. Consider this passage from a 1994 New Yorker assessment:

"Striped bass are in many respects the perfect New York fish. They go well with the look of downtown. They are, for starters, pin-striped, The lines along their sides are black fading to light cobalt blue at the edges. The dime-sized scales look newly minted, and there is an urban glint to the eye and a mobility to the predatory jaw. If only they could talk, they would talk fast."

But if it could talk, would it say, "I really belong in Virginia?"
 
Peter Galuszka

Conventioneering

Posted on Thu, Feb 24, 2011 at 12:00 AM

Michael Meyers, general manager of the Greater Richmond Convention Center, says the authority's recent financial report included a misprint. (See our story this week.) The total number of convention attendees in 2010, he says, was actually 296,718, a 13 percent decline from 2009. A little better than the financial report indicates, but still down considerably.

What this year holds is an open question. In an interview Monday, Meyers told me he expects 2011 to remain relatively flat as far as revenue and attendance growth, but in an email Tuesday says the center is forecasting an “8.6 increase over FY2010.” Meyers says the convention center is anticipating 322,099 in overall attendance by the end of June. “This projection is fluid as we have a lot of potential event activity in the remainder of the year which has yet to be confirmed,” he says in the email.

Meyers is in charge of running the center's day-to-day operations, and he's made up much of the shortfall by cutting expenses 5.7 percent on the year. Hosting fewer conventions and conventioneers also means less expense.

Fewer conventions results in less food service revenue, as well. In fiscal 2010, the convention center's primary operating revenue source -- food and beverage service -- declined 42 percent, from $779,364 in 2009 to $448,137 in 2010. 

Thursday, February 17, 2011

Cantor's Pork Vote is Hush-Hush

Posted on Thu, Feb 17, 2011 at 12:00 AM

Eric "Young Gun" Cantor, the Republican House Majority Leader from Henrico County, seemed older and out-gunned Wednesday when new Republican members in the GOP-controlled House voted 233-198 to kill an alternative engine for the new F-35 strike fighter that even the Pentagon didn't want.
 
More than half of the new Congressmen voted against the engine that the House's older leadership, represented by Cantor and House Speaker John Boehner of Ohio, worked desperately to keep in the federal budget.
 
Their reason? Pure pork. The alternative engines would be built jointly by Rolls Royce, which has its North American headquarters in Virginia, and in Ohio where partner General Electric has big manufacturing plants. The House decided to drop the alternative and go with the main supplier, Pratt & Whitney, thus saving $450 million.
 
One place you won't read the story is the Richmond Times-Dispatch, which ran a wire service piece about the vote but (predictably) left out any mention of the role of Prince Eric, whom the newspaper deeply loves and whose wife, Diana, serves on the board of parent firm Media General.
 
The irony is that Cantor had cast himself in a book he co-wrote called "Young Guns" last year that depicted himself as a youthful, vibrant, deficit and budget-cutting kind of guy. It was meant to play in the mid-term elections which saw a number of GOP victories, such as recapturing the House. The bad guy was free-spending President Barack Obama, who also asked to cut the second jet engine and save billions.
 
Now, however, it seems that some of those even younger "Young Guns" have the gumption to stand up to oldster such as Cantor and Boehner. Backed the the Tea Party movement, some actually believe it when they say they want to cut the federal budget, and that means Pentagon sacred cows.
 
Odder still is that this particular sacred cow is something to military does not want. They seem happy with the P&W engine for the new fighter jets that will be used buy the Navy, Air Force and Marine Corps.  The 2,443 airplanes will cost $382 billion. Defense Secretary Robert Gates says that not adding the extra engine will eventually save $3 billion.
 
For further news, one place not to look is the Richmond Times Dispatch.
 
Peter Galuszka

Sunday, February 6, 2011

On the Radio, Day 1

Posted on Sun, Feb 6, 2011 at 12:00 AM

This year marks the 150th anniversary of the Civil War's first year. Historian Ed Ayers, president of the University of Richmond, shared his thoughts on the war and its legacy in Richmond in this week's cover story (click here). I continued that discussion with him Monday morning when I filled in for Jimmy Barrett as guest host on “Richmond's Morning News,” on 1140-AM WRVA. Click here to hear Ayers' thoughts on Richmond's opportunities in the Civil War's anniversary.

If you tuned into the Super Bowl on Sunday for the ads as well as the game, you'll want to hear what John Norman had to say about the winners and losers. Norman is the new chief creative officer of the Martin Agency, and helped create one of the Super Bowl's most acclaimed commercials, Coke's “Happiness Factory” (watch it below).

And Marcus Messner of the VCU School of Mass Communications discussed the journalist assaults and media lockout during the riots in Egypt. (Speaking of, Messner is set to moderate a discussion with CNN's Anderson Cooper at the Richmond Forum on Feb. 19-20. I'm giving away two tickets to the Sunday matinee on the 20th to a lucky reader of The Scoop, my weekly e-mail newsletter.

Tomorrow is my second day filling in on WRVA's morning news show (1140-AM) and we'll be discussing synthetic marijuana, economic segregation in Richmond Public Schools and the hottest arts events coming up this season. Plus, the woman at the center of the City Hall sexual harrassement controversy, Jennifer Walle will stop by for an interview. That along with the latest local news, traffic, weather, sports and more, from 5-9 a.m.

You can hear it at 1140-AM, or streaming live over the Internet at WRVA.com. Or, if you have the iHeartRadio app, you can tune in using your iPhone.

Monday, January 24, 2011

Ham, Mustard, Chips, AR-15

Posted on Mon, Jan 24, 2011 at 12:00 AM

The next time you are packing up that picnic lunch for a foray into a Virginia state park, you might want to include an AR-15 assault rifle or a Glock 19 automatic pistol with your mustard and ham sandwiches.
 
Gov. Robert F. McDonnell says it's okay to openly carry firearms in the state's parks.
 
His decision, widely hailed by the gun lobby, is particularly striking coming so soon after the Tuscon shootings that left six dead and 14 wounded, including Rep. Gabrielle Giffords. It's also stunning considering that the state is coming up against the fourth anniversary of the mass murders at Virginia Tech by a disturbed gunman who left 32 dead.
 
McDonnell made his decision in a Jan. 14 letter to Conservation and Recreation Director David A. Johnson.
 
One wonders in what universe McDonnell and Attorney General Kenneth Cuccinelli, who originally requested an opinion on carrying guns openly in state parks when he was a state legislator, live.
 
Increasingly nasty political blogs and advertisements, such as those of Sarah Palin, put cross-hair sights on political figures that various groups want voted out of office.
 
Now when you try to escape for some quiet time in the state's parks, you may have to pitch a tent next to someone openly packing heat. Let's hope you don't have to ask your neighbors to pipe down at bedtime. And although alcoholic beverages are supposed to be off limits in parks, rangers often look the other way at campsites. Who's going to want to confront someone who is tipsy and has a .45 caliber ACP automatic in his Velcro holster?
 
McDonnell wants to extend the open guns policy to state forests as well.
 
That makes sense -- during hunting season. Otherwise, a completely insane gun policy is going to make Virginians, once again, look like a bunch of nuts.
 
-Peter Galuszka

Thursday, November 11, 2010

Treading Taxes

Posted on Thu, Nov 11, 2010 at 12:00 AM

It came as a shocker in the Richmond Times-Dispatch on Tuesday. The top of the fold lead story -- “Tax no problem, study says” -- was giant, head-thumping news. A Joint Audit and Review Commission study found, shockingly: “Virginia's corporate income tax limited impact on economic development and eliminating it would not make up for lost revenues to the state,” the T-D reports. Translation: Cutting business taxes may not give the state economy a lightning jolt of prosperity, nor do companies looking to relocate here really consider the corporate income tax rate a major factor when deciding which state to infiltrate with new jobs and investment.

The lead story in Thursday's Wall Street Journal Thursday touched on a similar theme: “Deficit Panel Pushes Cuts.” Not tax cutting, but deficit cutting. Turns out a White House commission is pushing for another wholly shocking, politically impossible strategy to reduce the federal deficit by $3.8 trillion over the next decade: Eliminating tax cuts to the middle class, and even raising (gasp!) the gas tax by 15 cents. (There are other recommendations, such as cutting the federal workforce by 10 percent and cutting $100 billion in defense spending. Good luck.)

That this is front page news is a little dispiriting. No one would argue that our state and federal governments shouldn't be more responsible with our money, but there's a fundamental flaw in the prevailing philosophy of the GOP, which holds that reducing taxes, especially for businesses, is the only sensible way to improve the economy.

A stronger, more provable case can be made for exactly the opposite: Government spending, not tax reductions, has a bigger, more positive impact on businesses. 

There are tons of studies in academia that bear this out. Reagan long ago brought us trickle-down economics, the idea that cutting taxes for the rich who run our corporations leads to more capital investment and job creation, which trickles down to the rest of us by way of jobs and income.

That's not to say there isn't some trickle down. It just that it pales in comparison to a more coherent strategy: Increasing taxes for the purposes of improving roads, services and public infrastructure, which translates into improved cost efficiencies for businesses.

It's really simple logic, if not unbelievably unpopular. Improving roads, for example, makes businesses that depend on roads to deliver their products or services more efficient and profitable. In July 2008, we published a cover story on this strange phenomenon:

The no-tax-is-good-for-business philosophy is so pervasive that most macroeconomic textbooks even fail to challenge the assertion, says Arthur H. Goldsmith, an economics professor at Washington and Lee University. What if government spending on public infrastructure such as roads and schools had an equally stimulating effect on the economy? In a research paper published in the spring edition of the Journal of Economic Education, Goldsmith argues precisely this point.

"Borrowing to finance government consumption does crowd out private investment and thereby has the capacity to harm long-run productivity and output," he writes. "However, government investment spending by enhancing public capital improves productivity directly and may promote private investment, by enlarging profit expectations, further promoting productivity growth."

In other words, government spending on infrastructure, such as roads, actually helps make businesses more efficient, and therefore more profitable. So much so that "long-run growth fostered by government investment spending may exceed the detrimental effect on productivity associated with crowding out," Goldsmith writes.

Of course, we shouldn't be so stupid to think that our politicians will wake up tomorrow and, I don't know, propose raising the gas tax to pay for the state's crumbling highways. I won't mention how popular former Gov. Mark Warner passed the largest tax hike in state history and left office with higher approval ratings than George Allen. Warner will need to shed his moderate, Blue Dog leanings before 2012 if wants to have any semblance of a political future. The Tea Party has ensured no such absurdity will occur at least until then. But make no mistake: Taxes are what's holding our economy back.

 

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