The Stadium Scam and Cities as Instruments of Democracy

I’m working on the edits for an article I’ve been working on in some way, shape, or form since 2010. Yes. 2010. Such is academic publishing. The article (no spoilers) deals in chief with the ways that cities as legal corporations might potentially serve as instruments of public democracy by expressing and acting in the public interest. I counterpose this kind of democracy with a prevailing privatized view of political participation defined by the contribution to a candidate or a single-issue nonprofit advocacy group.

Spoiler alert (OK, a little one): I contend that public democracy is better. However, a big problem for cities, where people have routinely demonstrated a desire to practice public democracy, has been the renewed opposition of state legislatures, substantially influenced by the American Legislative Exchange Council (ALEC), to urban government action in response to democratic pressure.

What has made working on these edits tolerable and not a crushing reminder of the absurdities inherent in the academic publishing model is that current events keep reinforcing the argument. Today’s example comes from Deadspin, which, while nominally a sports blog, is routinely at the front of the line identifying the ways that sports (among other spectacles) have been leveraged by capitalists to transform cities and secure extensive public subsidies for billionaires (see also here and here).

The stuff that Bill Bradley describes could be happening anywhere, but it has particular poignance since it’s happening in Detroit, where local democracy has taken a considerable beating at the hands of capitalists and rural-suburban politicians). There, the city council has advocated requiring developers receiving public funds for major development projects to sign Community Benefits Agreements, legally binding contracts that would set terms by which the developer would be required to abide. These might address hiring, the number of construction and non-construction jobs to be established, the wages and benefits to be paid, and the proportion of local residents to be hired.

The precipitating events behind the proposed local law were many, but one stands out:

“We are allowing these large corporations—companies that could build a hockey arena without our money—to get in the corporate welfare line and take resources away from us,” Rashida Tlaib, a Michigan state representative who serves Detroit, told me. “In exchange for what?”

The hockey arena Tlaib mentioned is for the city’s beloved Red Wings, owned by pizza baron Mike Ilitch. The Ilitch family, whose net worth is estimated at $3.2 billion thanks in part to their Little Caesars pizza empire, received $284.5 million in public money to build a new, $450 million arena in the city’s Cass Corridor neighborhood. (They are desperately and vapidly rebranding it as the “arena and entertainment district.”)

While the Ilitch family was finishing up its honeypot stadium welfare deal last year—not to mention a wildly below-market rate $1 land transfer for 39 vacant parcels—they refused to sign a CBA that would ensure a certain percentage of permanent, non-construction jobs at the arena went to Detroiters. A group of locals formed the Corridors Alliance in an attempt to engage with the Ilitches, but their efforts were futile. The Ilitches did, however, agree to a mayoral executive order that demanded 51 percent of construction jobs go to residents and 30 percent of construction contracts go to local businesses. (The mayoral order, like Marathon’s hollow promise, is not legally binding.)

Take public money, the CBA reasonably insists, and deliver public benefits. Sounds about right? Not so fast:

The opposition made it all the way to the state capitol in Lansing during December’s lame duck session, where Republican State Representative Earl Poleski introduced House Bill 5977, which would “prohibit local units of government from creating a ‘community benefits ordinance.'” The bill, which died in December and was reintroduced in January, would ban Detroit’s proposed ordinance outright.

“House Bill 5977 sets up the state as a dictatorship telling local units of government that they cannot do what is best for their community, workers and residents when it comes to wages and benefits tied to economic development in that community,” Tlaib said in a statement.

I should also mention that the Detroit Regional Chamber Political Action Committee donated money to Poleski’s reelection campaign last summer, according to Secretary of State disclosures. And while it was a paltry and deeply stupid check for only $250, it’s worth asking why the Detroit Regional Chamber is propping up a state representative from Jackson, a county 80 miles west.

The reason of course, is that the concept of pre-emption, which plagued cities in the nineteenth century when urban special interests could leverage the anti-urbanism of rural legislators to stop cities from doing anything they didn’t like, has come back in with a vengeance. Whether it’s an idiosyncratic case like Detroit’s CBA initiative or the kinds of cookie-cutter pre-emption bills ALEC has distributed through the State Houses to try to kill off living wage bills or environmental protections, urban special interests of the stadium-building class have discovered that the states are a potent weapon against local democracy.

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2 comments on “The Stadium Scam and Cities as Instruments of Democracy

  1. […] I wrote recently, preemptive laws prohibit municipal governments from enacting particular policies. Preemption in […]

  2. […] more serious stuff by me on stadiums and cities here and here, and of course the blog Field of Schemes is the leading […]

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