Being honest upfront could save officials some pain

Not that it comes as a huge surprise, but the Winston-Salem City Council opted yesterday to postpone a vote on whether to bail out the downtown baseball stadium by securing a $12.7 million loan and providing another $3 million.

It was the prudent move, especially when a goodly portion of the populace is now using such words as "due diligence" and "oversight" in reference to the project.

The delay also allows members of council a few days to talk tough about protecting the city's interests and show concern for their constituents before the inevitable -- a vote in favor of the bailout.

"None of us like the choice we are facing tonight or in the next couple of days," Mayor Allen Joines said.

In some regards, the roadmap from this point forward is clear. The city secures the loan and hands it over to the developers, who then restart the construction process. Creditors get paid, subcontractors return to work and the stadium gets finished in time to play ball in 2010.

Other than that, what have we learned? Anything?

Public plus private = oil plus water

The first (and most obvious) thing is that more than a few people are angry -- and rightly so.

When plans for the ballpark were announced, we were sold a total cost of $22.6 million, with $12 million of it coming from the city in a public-private partnership touted by Billy Prim (then co-owner of the Dash with soon-to-be ex-brother-in-law Andrew "Flip" Filipowski) and the developer behind the deal, and city officials (led by Joines.)

We found out last December that the cost had increased to $38 million, something Prim chalked up to stadium upgrades and improvements. Then, Friday, we learned that the cost is now in the neighborhood of $40.7 million.

What we get in return for the bailout, Prim said, is the deed to the stadium after 25 years and the city's loans being paid off through such team revenue streams as ticket sales.

"It's like me paying the mortgage on your house, then giving it to you when it's paid off," he said Friday.

Here's another analogy. You and I decide to build a house for $250,000. Then you decide the house really needs a pool and a two-car garage, and oh, by the way, I have to take out the loan to cover it or the project grinds to a halt.

With that in mind, the second thing officials should take away is that local government really should stay away from "business" investments. (That deal with Dell is working out well, isn't it?)

And if government insists on attempting to goose the free-market system, it should stick to providing favorable zoning or giving upgrades to the public such aspects as streets, lights and sewers. No matter what these kinds of deals are called -- incentives, economic stimulus or public-private partnerships -- giving public money to private entities is almost always a bad idea.

Keeping up with Greensboro

Another thing we need to reconsider is our apparent case of Greensboro envy. Greensboro has a nice downtown ballpark, so we should have one, too, right?

But we seem to have lost sight of the fact that the Gate City had more than a little help. Close to half of the $20 million cost of Greensboro's ballpark was covered by the Joseph M. Bryan Foundation, a $100-million endowment fund set up to "promote economic, cultural and recreational enrichment" for Greensboro.

Also, remember that while Greensboro has had some new growth in the area, a proposed $60 million to $100 million development called Bellemeade Village that was to be built on a vacant car dealership nearby never came to pass. Just because we build it doesn't mean development has to come.

It's true that Prim's group holds rights to the land around Winston-Salem's ballpark, and thus has $189 million in reasons -- the estimated value of the development -- to see that shops, offices and restaurants are built in the area. But who's to say that the same economic crisis that landed us in this current predicament won't derail those plans, too?

In all likelihood, the ballpark will be a good thing. It will be fun family entertainment and spur growth.

Ultimately, what we should learn is this: Slow down and level with us. City manager Lee Garrity said last night that officials have been working on this mess for "five or six weeks."

So tell us five or six weeks ago, not a few days before a public hearing.

Transparency and openness are good things when the public wallet is cracked. Additional public scrutiny on the front end can prevent heartburn (and vitriol) on the back end.

■ Scott Sexton can be reached at 727-7481 or at ssexton@wsjournal.com.