A new downtown Sacramento sports arena would pump around $7 billion into the regional economy over its 30-year life, according to a study commissioned by Mayor Kevin Johnson's arena task force.
The study by Capitol Public Finance Group said the proposed arena would create $157 million a year worth of economic activity, including dollars spent at hotels, restaurants and so on.
But the study acknowledged that much of the money would be spent by area residents. Subtract that spending, and the net new dollars to the region totals $24.6 million a year.
Officials with the task force said the report makes it clear the arena would be worth the estimated $387 million.
"The return on investment the public would get from this is enormous," said political consultant Chris Lehane, the executive director of the task force. The task force, which had been called Here We Build, today renamed itself Think Big.
Sacramento City Council member Rob Fong said the arena would be "not only good for downtown, not only good for Sacramento, it's good for the six-county region."
The task force is still cobbling together a plan for financing the new arena, which is needed to keep the Sacramento Kings from leaving town. Lehane said a report on financing is expected Sept. 8.
The report said the arena would bring 3.1 million visitors a year downtown.
The report didn't estimate the number of jobs that would be created. But Capitol Public Finance, in a study last year, predicted that a new arena would create 3,700 construction jobs and 375 new permanent jobs, over and above the number already employed at Power Balance Pavilion.
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