Page 2 of 2 Previous

Continued: In St. Paul, pain of NHL lockout more a pinch than a punch

  • Article by: MIKE KASZUBA , Star Tribune
  • Last update: December 19, 2012 - 12:31 PM

The National Hockey League lockout doesn't appear to be creating a large economic drag on St. Paul, despite repeated talk of financial pain by some city officials.

Some individual businesses are being hurt by the three-month lockout, but state sales taxes and lodging taxes in St. Paul were up slightly in November compared to November 2011, when the NHL was playing games at downtown's Xcel Energy Center.

State Department of Revenue officials cautioned that the tax figures don't paint a definitive picture, but said November's numbers, and the results from the NHL's 2004-2005 lockout, suggest that neither the city's economy nor the downtown core's are driven by professional hockey.

State sales tax figures increased in St. Paul during much of the 2004-05 lockout.

"If there was a significant impact of the lockout in 2004-05, it cannot be demonstrated using these statistics," said Paul Wilson, the research director at the Minnesota Department of Revenue.

Some city officials and civic leaders, who have said that this year's lockout is causing widespread economic pain, said state sales tax totals likely present a flawed perspective. .

"Tragically, and I say this with a certain amount of humor, sales tax receipts fall into the category of lies, damn lies and statistics," said Matt Kramer, the president of the St. Paul Area Chamber of Commerce. Kramer, a onetime chief of staff to former Gov. Tim Pawlenty, said that anyone analyzing sales taxes needed to be "extraordinarily careful" to compare "apples to apples."

St. Paul Mayor Chris Coleman said this week that while the lockout is having a ripple effect throughout the city, the number of businesses in financial jeopardy because of it "might be a half dozen, it might be a dozen."

Coleman said that, even with the lockout, the city was continuing to rebound from the recession and that "I'm overall very pleased with where St. Paul's at right now" economically.

Benefit not clear

John Wengler, a co-owner of Billy's On Grand, a bar and restaurant two miles from the arena, said he stopped running shuttles to Wild games two years ago because of a lack of interest. "Do you want my honest answer, or do you want me to jump on board with what everyone else" is saying about the situation, he said jokingly.

"That's not driving our economy," he said of the games.

At O'Gara's, another St. Paul bar that still has shuttles to Wild games, co-owner Kris O'Gara said the games provide a "nice boost" but said the bar was more than surviving. "We're still fine," she added.

Even at Cossetta's, the longtime Italian deli a block from Xcel Energy Center, manager Ray Vanyo said the lockout was likely curtailing new customers but that "we're still getting good business" primarily because of a nearly completed expansion.

State officials said that citywide sales tax, use tax and lodging tax figures do not show a consistent overall economic benefit or loss to St. Paul that can be associated with hockey.

Wilson said sales tax figures for the city actually increased 4.2 percent from January through May 2005, during the lockout, over the same five-month period in 2004, before the lockout. For the 2005-06 hockey season, the first year after the lockout, the figure was up again, by 2.1 percent.

In addition, Wilson said that it was also difficult to draw conclusions by examining data for a narrower geographic area that includes the Xcel Energy Center and surrounding businesses.

During the 2004-05 lockout, state sales tax collections in that narrower area dropped by 9 percent in 2004 to $30 million, and again by 3 percent in 2005 to $29.1 million. While the decreases could be blamed on the lockout, state sales taxes for that area dropped by 18 percent in 2007, to $27.5 million, when hockey was being played. Wilson said the 2007 decreases suggested that the presence of hockey was not enough to offset other, unknown, factors.

"Collections in both 2007 and 2008 [combined] were even lower than in the missing season years of 2004 and 2005," Wilson wrote in an analysis of the data.

Wilson added that the narrow geographic area including the Xcel Energy Center represents less than 20 percent of all sales tax collections in the city, meaning any losses or gains might be offset by activity elsewhere in St. Paul.

City officials said the lockout's imprint is noticeable in other ways.

For starters, they said, parking ramp revenue near the Xcel Energy Center fell dramatically from September and October 2011 compared with the same two months this year. For October, revenue from six parking ramps dropped from $364,611 in 2011 to $278,222 this year, a 24 percent decrease. The decrease from September 2011 and the same month this year was 29 percent.

City officials also said that comparing city sales tax figures from October 2004 through April 2005 -- during the lockout -- with the same time the next year showed a $300,000 boost, for a total of nearly $8.7 million.

Not yet at breaking point

At the Eagle Street Grille, across the street from the hockey arena, owners Joe Kasel and Kevin Geisen have received much publicity as they have described the effect of the lockout. In a letter to the NHL's commissioner, Kasel said that Wild games accounted for half of the business' annual gross revenue.

But Geisen said that while the lockout had significantly hurt business, it had not yet brought them to a breaking point.

"At this point, I would say no," he said last week of possibly going out of business. "[But] it wouldn't take too much to push us over."

At Alary's, a longtime downtown bar and restaurant, owner Al Baisi said the lockout has been felt as well. The bar's four shuttle buses that take Wild fans to the arena, eight blocks away, are idle. But he said he is more than surviving. "Overall, we're still doing fine here," he said.

Mike Kaszuba • 651-222-1673

  • related content

  • Video: StribCast: How hard is St. Paul hit by NHL lockout?

    Wednesday December 19, 2012

    Hear about today’s news developments – including Ponder’s wedding and the end of the world – from the Star...

  • By the numbers: Effect of NHL lockout

    Tuesday December 18, 2012

    State revenue officials said overall sales tax figures in St. Paul -- and also for just the city's downtown area -- present a cloudy picture on the effect of the...

  • Setoguchi taking time off from ECHL team; Spurgeon update

    Tuesday December 18, 2012

    The Ontario Reign announced that Devin Setoguchi has been suspended, but the Wild winger clarified Tuesday that he is taking a leave of absence until the NHL lockout is resolved

  • Kevin Geisen, co-owner of the Eagle Street Grille, worked the lunch cr...

  • get related content delivered to your inbox

  • manage my email subscriptions

ADVERTISEMENT

Minnesota 16 FINAL
Buffalo 17
Atlanta 7 FINAL
Baltimore 29
Tennessee 17 FINAL
Washington 19
Seattle 26 FINAL
St. Louis 28
Cleveland 6 FINAL
Jacksonville 24
Cincinnati 0 FINAL
Indianapolis 27
Miami 27 FINAL
Chicago 14
New Orleans 23 FINAL
Detroit 24
Carolina 17 FINAL
Green Bay 38
Kansas City 23 FINAL
San Diego 20
Arizona 24 FINAL
Oakland 13
NY Giants 21 FINAL
Dallas 31
San Francisco 17 FINAL
Denver 42
Houston 10/20/14 7:30 PM
Pittsburgh
San Diego 10/23/14 7:25 PM
Denver
Detroit 10/26/14 8:30 AM
Atlanta
Boston 95 FINAL
Brooklyn 90
Minnesota 112 FINAL
Oklahoma City 94
Golden State 83 FINAL
Houston 90
Charlotte 96 FINAL
Chicago 101
Utah 91 FINAL
LA Lakers 98
Minnesota 1 FINAL
Los Angeles 2
San Jose 0 FINAL
NY Rangers 4
Calgary 4 FINAL
Winnipeg 1
St. Louis 0 FINAL
Anaheim 3
TX-San Antonio 20 FINAL
Louisiana Tech 27
Syracuse 30 FINAL
Wake Forest 7
Purdue 38 FINAL
Minnesota 39
Western Ky 38 FINAL
Fla Atlantic 45
(12) Baylor 27 FINAL
(22) West Virginia 41
(11) Kansas State 31 FINAL
(17) Oklahoma 30
Iowa 31 FINAL
Maryland 38
So Florida 38 FINAL
Tulsa 30
Tulane 13 FINAL
UCF 20
Virginia 13 FINAL
Duke 20
Akron 20 FINAL
Ohio U 23
Western Mich 26 FINAL
Bowling Green 14
Eastern Mich 14 FINAL
Massachusetts 36
Appalachian St 53 FINAL
Troy 14
(25) UCLA 36 FINAL
California 34
Texas A&M 0 FINAL
(4) Alabama 59
Army 17 FINAL
Kent State 39
Kansas 21 FINAL
Texas Tech 34
UAB 22 FINAL
Middle Tennessee 34
Rutgers 17 FINAL
(13) Ohio State 56
(8) Michigan State 56 FINAL
Indiana 17
New Mexico 31 FINAL
Air Force 35
NC State 18 FINAL
Louisville 30
(21) Clemson 17 FINAL
Boston College 13
Ball State 32 FINAL
Central Mich 29
Cincinnati 41 FINAL
SMU 3
(9) Georgia 45 FINAL
Arkansas 32
Oklahoma State 9 FINAL
(10) TCU 42
San Jose St 27 FINAL
Wyoming 20
Miami-Ohio 41 FINAL
Northern Ill 51
New Mexico St 17 FINAL
Idaho 29
Colorado 28 FINAL
(20) USC 56
(23) Marshall 45 FINAL
FIU 13
Southern Miss 30 FINAL
North Texas 20
Georgia Tech 43 FINAL
North Carolina 48
Tennessee 3 FINAL
(3) Ole Miss 34
Utah State 13 FINAL
Colorado State 16
Missouri 42 FINAL
Florida 13
Kentucky 3 FINAL
(24) LSU 41
(16) Nebraska 38 FINAL
Northwestern 17
Georgia State 27 FINAL
South Alabama 30
Washington 20 FINAL
(6) Oregon 45
Iowa State 45 FINAL
Texas 48
(7) Notre Dame 27 FINAL
(2) Florida State 31
Nevada 42 FINAL
BYU 35
Stanford 10 FINAL
(14) Arizona State 26
Hawaii 10 FINAL
San Diego St 20
Arkansas State 10/21/14 7:00 PM
Louisiana
Connecticut 10/23/14 6:00 PM
(18) East Carolina
Miami-Florida 10/23/14 7:00 PM
Virginia Tech
So Florida 10/24/14 6:00 PM
Cincinnati
Troy 10/24/14 6:30 PM
South Alabama
BYU 10/24/14 8:00 PM
Boise State
(6) Oregon 10/24/14 9:00 PM
California
North Texas 10/25/14 11:00 AM
Rice
UAB 10/25/14 11:00 AM
Arkansas
Rutgers 10/25/14 11:00 AM
(16) Nebraska
Maryland 10/25/14 11:00 AM
Wisconsin
Texas 10/25/14 11:00 AM
(11) Kansas State
Minnesota 10/25/14 11:00 AM
Illinois
Memphis 10/25/14 11:00 AM
SMU
North Carolina 10/25/14 11:30 AM
Virginia
San Jose St 10/25/14 12:00 PM
Navy
Northern Ill 10/25/14 12:00 PM
Eastern Mich
(25) UCLA 10/25/14 1:00 PM
Colorado
Akron 10/25/14 1:00 PM
Ball State
Massachusetts 10/25/14 1:00 PM
Toledo
Ohio U 10/25/14 1:00 PM
Western Mich
Ga Southern 10/25/14 1:00 PM
Georgia State
Kent State 10/25/14 1:30 PM
Miami-Ohio
Oregon State 10/25/14 2:30 PM
Stanford
Fla Atlantic 10/25/14 2:30 PM
(23) Marshall
Louisiana Tech 10/25/14 2:30 PM
Southern Miss
(1) Miss State 10/25/14 2:30 PM
Kentucky
Georgia Tech 10/25/14 2:30 PM
Pittsburgh
(22) West Virginia 10/25/14 2:30 PM
Oklahoma State
Texas Tech 10/25/14 2:30 PM
(10) TCU
Michigan 10/25/14 2:30 PM
(8) Michigan State
Boston College 10/25/14 2:30 PM
Wake Forest
Central Mich 10/25/14 2:30 PM
Buffalo
Vanderbilt 10/25/14 3:00 PM
Missouri
Old Dominion 10/25/14 3:00 PM
Western Ky
UNLV 10/25/14 3:00 PM
Utah State
Temple 10/25/14 4:00 PM
UCF
(15) Arizona 10/25/14 5:00 PM
Washington St
Texas-El Paso 10/25/14 6:00 PM
TX-San Antonio
Wyoming 10/25/14 6:00 PM
Colorado State
Syracuse 10/25/14 6:00 PM
(21) Clemson
Texas State 10/25/14 6:00 PM
ULM
(3) Ole Miss 10/25/14 6:15 PM
(24) LSU
(4) Alabama 10/25/14 6:30 PM
Tennessee
So Carolina 10/25/14 6:30 PM
(5) Auburn
(13) Ohio State 10/25/14 7:00 PM
Penn State
(20) USC 10/25/14 9:00 PM
(19) Utah
(14) Arizona State 10/25/14 9:45 PM
Washington
Nevada 10/25/14 10:59 PM
Hawaii
Columbus 3 FINAL
Red Bull New York 1
Seattle 2 FINAL
Los Angeles 2
Ottawa 6 FINAL
Hamilton 16
Montreal 20 FINAL
Toronto 12
Calgary 33 FINAL
Winnipeg 23
Edmonton 24 FINAL
Saskatchewan 19

ADVERTISEMENT

question of the day

Poll: Grade the Vikings offense

Weekly Question

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

Connect with twitterConnect with facebookConnect with Google+Connect with PinterestConnect with PinterestConnect with RssfeedConnect with email newsletters

ADVERTISEMENT

 
Close