Des Moines Register
06-26-07
Culture key to economy, Destiny supporter says
By MELISSA WALKER
REGISTER STAFF WRITER
The Des Moines area faces a slow, economic decline if it doesn’t filter more
money into arts, cultural and regional attractions, the former mayor of Pittsburgh
mayor said today.
Tom Murphy spoke visited the city to lend support for the proposed “Yes to
Destiny” sales tax that will be considered by voters in Dallas, Polk and Warren
counties July 10. He said Des Moines has a good base of quality jobs, but a
sales tax increase and regional cooperation are investments to keep those jobs
and fill them with young people who stay in Des Moines and Iowa.
“If you don’t understand that, you’re not going to win in the competition,” he said
at a meeting with Des Moines Register editors and reporters.
The Des Moines area has enjoyed a run of success over the past few months,
highlighted by the Hy-Vee Triathlon. New restaurants and entertainment venues
have popped up along Court Avenue downtown. Large employers Wells Fargo
and Wellmark Blue Cross and Blue Shield have expanded or announced growth
plans, and Money Magazine named West Des Moines among the best places to
live in the country last year.
Sales tax supporters say Yes to Destiny will sow the seeds for sustained
success.
The plan is modeled in part on Pittsburgh’s. It would raise an estimated $750
million over 10 years. About one-third of the money would be distributed by a 15member panel to trails, cultural events and regional attractions such as Blank
Park Zoo and the Science Center of Iowa. The remainder would go toward
property tax reduction and to boost city budgets, which theoretically could further
reduce property taxes.
But a sales tax increase and expanded recreational trails system did little to
prevent Pittsburgh’s slide to the brink of bankruptcy, which caused hundreds of
employees to be laid off while Murphy was at the helm.
The city’s downtown did not flourish as promised after the sales tax went into
effect, said Bill Urbanic, budget director for the Pittsburgh City Council. He said
Murphy’s strategy caused “a fiasco with our downtown retail section” and gave
tax money to for retail projects that later closed.
Murphy, who now advocates for “smart growth” for the Urban Land Institute, said
Pittsburgh’s money problems, which included the city’s need to ask the state for
a $40 million line of credit to pay its bills, had nothing to do with the sales tax and
were instead a result of the state’s tax system.
He said the sales tax eliminated an unpopular personal property and created a
pool of money for trails, libraries, a zoo and other cultural efforts, and spread
some of the cost of those attractions to neighboring cities.
Murphy said sales tax money has been used to build about a half dozen new
venues in Pittsburgh, including a convention center and professional sports
stadiums, that draw millions of people every year.
“This funding has acted as a real catalyst for us,” he said.
Culture as business
WHAT’S NEW: A report Tuesday said arts and cultural organizations in the Des
Moines area generated more than $87.7 million in sales last year and more than
$44.5 million in “added economic value.”
WHO: The report, by David Swenson a Iowa State University economics
professor, was paid for by a foundation affiliated with the Greater Des Moines
Partnership, the primary proponent of a three county, 1-percentage point sales
tax increase that would pump millions into arts and recreation efforts.
WHAT: The study analyzed income, expense, employment and attendance data
from nonprofit educational, cultural, and artistic organizations that have received
money from Bravo Greater Des Moines, a partnership offshoot that gives hotel
tax money to various organizations and projects.
DETAILS: The study said arts and cultural organizations attracted 2.5 million
visitors in 2005-2006. Those visitors spent more than $8 million on goods and
services. More than 500,000 visitors drove more than 100 miles to visit, the
report said.
QUOTE: “This new report underscores the importance of investing in arts and
culture,” said Bravo’s Leisha Barcus.