The cost to repair the Paramount after the 2008 floods will be $25 million. FEMA will pay 75%, the state 10% and the remaining 15% is to be paid by the city.
The city must decide if it is worth spending $3.75 million (15% of $25 million).
If this were Final Jeopardy I'd say, "Alex, stop the music: This is a no-brainer..." (and I'd be quickly disqualified since I didn't phrase it in the form of a question).
Let's say they spent all that money, completed the project and blew it up. That's right. Take dynamite to the place and level it. The $3.75 million investment from the city would still be worth it. Why? The project is worth much more than $25 million. In economics it is what is called the multiplier. All of those workers will buy food, shop for new clothes, maybe even buy a car from a bankrupt automaker... In other words, a dollar spent to rebuild the Paramount doesn't die. It lives on and multiplies in the community.
Now, assuming they won't blow it up the Paramount was (will be again) a great venue. Some criticize the project because the Paramount was underused. Agreed, it was underused, but that's no reason to oppose the rebuilding plan.
No comments:
Post a Comment