Jackson State University is asking the State of Mississippi for an up-front investment of $75 million toward the stadium’s total construction cost of $200 million. The initial $75 million will be repaid by combining the projected General Fund revenue of $39 million from sales and other taxes, plus the amusement tax of $50 million over 20 years.
An economic impact analysis shows the significant contributions Jackson State University’s domed stadium would make toward tax revenue, employment and personal income in Mississippi. The information reinforces the university’s position that the stadium is a Mississippi endeavor, not simply a university project. The stadium will provide a venue for significant events in central Mississippi. The calculations in the analysis were set for fiscal years 2013-2022.
The analysis found that the stadium would generate $64.6 million annually in tax revenue. In the first year of construction, the project would produce a $64.8 million increase in personal income and generate $7.22 million for the General Fund.
The following are key findings from the economic impact analysis prepared by the Mississippi Institutions of Higher Learning based on data provided by Jackson State University:
The first year of construction would generate 1,835 jobs. The second year of construction would generate 600 jobs. Over the next 10 years of the stadium’s operation, an estimated 335 jobs would be maintained annually.
The stadium’s impact on personal income in Mississippi would be a $64.8 million increase in the first year of the project. The impact would be a $28.7 million increase the second year. These figures are representative of every Mississippi resident associated with the project. The first two years include construction. The average annual increase of personal income after the first two years would be $18.2 million.
ANNUAL GENERAL FUND TAX REVENUE
The total General Fund tax revenue during the first year of the project, including the contractor’s tax, corporate tax and sales tax, would be $7.22 million. The total General Fund tax revenue for the second year, including the contractor’s tax, corporate tax and sales tax, would be $5.36 million. The General Fund revenue between 2013 and 2022 will be $24 million.
Some 733,500 are expected to attend the stadium annually for paid events that include JSU football and basketball games, the Battle of the Bands, high school football and basketball tournaments, concerts, festivals, tradeshows and other exhibitions.
The 7 percent amusement tax will be split with the Department of Revenue. It is projected over 20 years to produce $50 million for the State of Mississippi.
Ticketed events will generate $24.95 million annually in tax revenue. Ticket prices will range from $5 to $60, depending on the event.
If 4,000 of the 6,000 parking spaces are filled, $3.4 million in tax revenue would be generated. Each space costs $10.
Merchandise sold at events would generate around $4.8 million in revenue annually.
The concessions and vending would generate $5.7 million in tax revenue annually.
The estimated revenue generated from visitors who stay in motels, dine in local restaurants and purchase fuel would be $25.6 million. This figure is based on the following calculations: 60 percent of the visitors spending $15 on food; 30 percent spending $60 on lodgings; 25 percent spending $45 on gasoline.
STADIUM’S TOTAL TAX REVENUE
The total tax revenue based on ticket sales, parking, merchandise, concessions, food, lodging and gas would be nearly $64.6 million annually.