Question:
Our village has experienced a 5.54% decline in population over the past 5 years, from 3336 to 3151 residents. Recently, we've received a $3 million grant with no strings attached. Considering our declining population and potential for future growth, would investing in a Skatepark as a local attraction be an economically viable decision to stimulate local economic activity, attract new residents, and boost tourism? What factors should we consider when evaluating the potential return on investment for this project?In our town we have a seasonal town pool, seasonal skating rink and a small parking that accommodates 2 to 7-year-olds.
I feel like a skatepark would bring in much need tourism, events like Red Bull. A hub pro to put on a show.
Answer:
If the purpose of the skatepark is to have income generating events, the sponsorship should be locked in before committing to construction.
But if you have 3 thousand residents, are there not other public goods that would benefit a larger share of the residents and that might attract more new residents? I suspect a skate park would not attract more residents.
Towns of 3 thousand are not likely to have large employers. In Iowa, the great majority of residents in towns of 3000 work in another town. Towns with many out-commuters may need after-school care or places for kids to recreate. Depending on the weather in your town, it may need to be an indoor facility so it can serve year-round. I would think of community centers or other public goods that would serve a large fraction of your population that would make your town a better place to live.
In short, do not build a facility designed to entertain nonresidents. Worry about your current residents.
