The LAA posted their 2018 financial report this week. For the first time since the arena opened, the TIF revenue stream declined year over year. I had previously remarked that the TIF was one bright spot with arena finances. But that conclusion now appears to have been premature.
In 2016, I forecast where the TIF was headed based on the high rate of annual growth during the first 5+ years of operation. That forecast was revised after the 2017 number was posted. The 2018 result, however, makes that forecasting effort more difficult since the trend is less clear.
One thing that is clear is optimism based on growth in economic activity downtown is not being validated by the TIF number, at least not at the moment. The actual number is now $3-1/2 million lower than the forecast just two years ago. Keep in mind that performance, good or bad, is reflected in successive years' numbers. When your momentum declines, you have to make up that difference the following year and then some.
I haven't gone over the full annual report in detail yet, and there are some balance sheet items that are hard to explain on first glance. When I have more to comment, I'll add to this thread or start a new one. Here's the LAA website containing that report if anyone wants to read it now. Look for it under the link to "Financials and Meeting Minutes."
LINK
In 2016, I forecast where the TIF was headed based on the high rate of annual growth during the first 5+ years of operation. That forecast was revised after the 2017 number was posted. The 2018 result, however, makes that forecasting effort more difficult since the trend is less clear.
One thing that is clear is optimism based on growth in economic activity downtown is not being validated by the TIF number, at least not at the moment. The actual number is now $3-1/2 million lower than the forecast just two years ago. Keep in mind that performance, good or bad, is reflected in successive years' numbers. When your momentum declines, you have to make up that difference the following year and then some.
I haven't gone over the full annual report in detail yet, and there are some balance sheet items that are hard to explain on first glance. When I have more to comment, I'll add to this thread or start a new one. Here's the LAA website containing that report if anyone wants to read it now. Look for it under the link to "Financials and Meeting Minutes."
LINK
