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Bill Rhoda, a private consultant who helped city negotiators with the agreement, noted that AEG is expected to realize a 6.7 percent return on its investment in the project -- far less than any comparable pro-football deal -- after expenses such as building a stadium and securing a team, so it needs the full naming rights payout to make the arrangement pencil out.
One among the dozen or so speakers to offer comment toward the end of the hearing said he was concerned that officials, who estimated that the deal would mean a $410 million net gain to city coffers over 30 years, were exaggerating the projects' benefit to taxpayers.
Victor Citrin, who lives near the project site, said that that officials' rosy calculations include room taxes paid by guests at hotels that separate developers are expected to build to serve visitors to the stadium and newly enlarged convention center.
He noted, however, that several new hotel projects have been exempted from paying room taxes as a development incentive, so there's no reason to believe these new hotels wouldn't also get a pass.
"All these hotel rooms are not going to generate any hotel tax," he said.
Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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