SHARKSPAGE

Interview with San Jose Mayor Chuck Reed on Sharks-Wings, Joe Pavelski, A’s stadium in San Jose, and the record $116 million budget shortfall

San Jose Mayor Chuck Reed took office in January 2007 and quickly established himself as a straightforward and no-nonsense city leader. Lauded for his fiscally responsiblility, and his efforts to build a more open and transparent City Hall, Mayor Reed is working hard to address one of the most difficult challenges the city has ever faced, a record $116-million budget shortfall.

He took the time to answer a few questions about the San Jose Sharks, the WCSF series with the Detroit Red Wings, Joe Pavelski, the proposed A’s stadium, the financial impact of HP Pavilion, and what needs to be done to address the record $116-million budget shortfall facing the city.

Interview with San Jose Mayor Chuck Reed:

[Q] Last year the Sharks had a Presidents Trophy winning regular season, they were flirting with historical NHL records early and the constant buzz pulled in a large number of casual Bay Area sports fans and non-sports fans alike. Ultimately they were disappointed in the loss to Anaheim. This playoff season the Sharks have had to battle and overcome obstacles almost every game. What kind of identity do you think the Sharks are forging for themselves this postseason?

[Mayor Chuck Reed] The Sharks’ come-from-behind victories have shown that they’re not going to fold when they run into adversity. They fought through some tough games in the first round, but they really turned it on to close out the Avalanche, and have since they’ve carried that momentum into the Detroit series. They’re going to need that kind of tenacity the deeper they go in the playoffs.

[Q] San Jose Sharks center Joe Pavleksi is having a career year, narrowly losing to Team Canada in overtime during the Olympic gold medal game in Vancouver, now leading the Stanley Cup Playoffs in goal scoring. The building interest in him locally and nationally focuses not just on his talent and intelligence on the ice, but also his character, humility and respect off of it. If Joe Pavelski, or “The Big Pavelski” as broadcaster Randy Hahn likes to call him, is to become the face of San Jose for a few weeks, how do you think he would represent the city?

[Mayor Chuck Reed] Since the Sharks took the ice in the early 1990’s, they’ve been great ambassadors for the City of San Jose. I know Joe’s earned a place in the heart of many of our local Sharks Fans and I have no doubt that he and his teammates will continue to make us proud throughout this playoff run.

[Q] It has been over 5 years since the NHL lockout kept HP Pavilion dark for a year, which had a significant impact on downtown San Jose businesses. Since the lockout, the Sharks have been a strong Western Conference contender each season and their influence seems only to have grown. What kind of economic impact do the Sharks and HP Pavilion have on downtown San Jose over a year, and do you see that growing?

[Mayor Chuck Reed] The Sharks and HP Pavilion have been tremendous assets for downtown San Jose. The City commissioned a study last year which showed that the Sharks generate approximately $113 million in total economic impact every season, including $38 million outside of HP Pavilion in surrounding businesses. This in turn generates approximately $2.4 million in tax revenues for the City of San Jose.

When you factor in all events at the HP Pavilion, the researchers found that the arena has provided a total of $1.7 billion in cumulative economic impact since being built in 1993. That’s one of the many reasons why we’re committed to ensuring that the HP Pavilion remains a world-class venue, not only for the Sharks, but a wide variety of entertainment options.

Link to study:
http://www.sjeconomy.com/publications/pressreleases/ei.hp.pavilion.pdf (PDF file)

[Q] There are arena plans in San Jose for the Oakland Athletics and San Jose Earthquakes, as well as a dual-use NFL facility discussed up the penninsula in Santa Clara. Each has the possibility to cement the South Bay even further in the local and national sports landscape, but even a privately financed arena can have hidden costs. What are some of factors residents need to consider with a new sports complex?

[Mayor Chuck Reed] The success of Sharks and the HP Pavilion highlight the positive impact that sports can have on our local economy. In the case of a potential Major League Ballpark – which would host roughly twice as many home games as the Sharks – our study shows that a downtown stadium could generate $130 million in annual economic impact and $5 million in tax revenue for local governments.

It’s also important to know that the City Council adopted a set of principles which state that the stadium would be privately-built, privately-financed and privately-constructed, and that voters will have to approve any contribution of land or money to the project. However, none of this can move forward until Major League Baseball resolves the issue of territorial rights and gives the A’s an OK to pursue a new stadium in San Jose.

Link to Economic Impact Study:
http://www.sjredevelopment.org/ballpark/EI_Report_09022009.pdf (PDF file)

[Q] The new fiscal year starts July 1st, and San Jose is facing a record $116 million budget shortfall. For residents of San Jose who may not be intimately aware of the current financial situation, what kind of tough decisions are going to have to be made by the city going forward?

[Mayor Chuck Reed] San Jose is facing the most difficult fiscal situation in our history. Our $116 million shortfall is more than the budgets for all of our parks, libraries, community centers, and senior services combined.

In light of these challenges, our city has had to face to prospect of laying off hundreds of city employees and slashing neighborhood services that our residents depend on. Some of the most drastic cuts we’ve had to consider include: eliminating senior nutrition programs, cutting 160 positions in the police department, closing 21 community centers and reducing library branch hours to 3 days per week.

The choices we face this year are extremely difficult, but there is an alternative. To minimize these cuts, I’ve asked all city employees to agree to a 10 percent reduction in pay and benefits. The City Council and top Management staff have already agreed to a 10% cut and I hope the rest of our employees will follow. We can save jobs and vital services if we all share the sacrifice.

Link for more information on the city’s budget situation:
http://www.sanjoseca.gov/BudgetInfo.asp

[Q] Any predictions for the remainder of the Detroit vs San Jose playoff series?

[Mayor Chuck Reed] I’m confident the Sharks will be able to close this one out and I look forward to another round of playoff action in downtown San Jose!

You can find out more about the Mayor and his Green Vision and Open Government policies at sanjoseca.gov/mayor. Thanks for taking the time to talk a little playoff hockey, for your service to the city, and for your honest and informed responses.

This blog also interviewed his predecessor, former Mayor Ron Gonzales, after the 2004 Western Conference Final series with Calgary.