Debate over Dodgers effect on sales tax lingers

When Fran and Ian Love opened the Clubhouse Bar & Grill in Vero Beach in 2005, they thought their new eatery would be a gold mine because of its prime location.

Just steps away from Dodgertown, the Loves’ restaurant thrived when the Dodgers played spring training games at Holman Stadium. But with the local economy tanking and Dodgertown now a ghost town, the couple are struggling to keep their doors open.

“We can’t afford to lose any more customers,” said Fran Love, who has shed half her staff and currently opens after 2 p.m. because of less traffic. “I am working the kitchen now, I am taking extra shifts.”

The Loves aren’t alone in their financial losses. Indian River County and the state lost a substantial boost of tax dollars brought during the height of the Dodgers spring training games in March.

A comparison of overall sales tax receipt revenues collected in Indian River County during March showed a $1.9 million decline in total sales tax collected versus March 2008. In Indian River County, residents pay a 7-cent sales tax, with 1.5-cent going toward the county’s general fund, and infrastructure projects. The remaining money is collected, disbursed and spent by the state.

Economists and tourism experts have a different opinion. They say the economic impact of spring training in communities across Florida is minimal.

“Certainly the Dodgers was a big part of the economy, but a lot of this is due to the recession,” said Stan Smith, director of the Bureau of Economic and Business Research at the University of Florida, which collects statewide economic and demographic research. Bill Fruth, president of Policom Corp., an economic consulting firm based in Palm City, shared the same sentiments.

Debate over Dodgers effect on sales tax lingers - TCPalm.com - August 26, 2009