Posted by John Vrooman on Wednesday, August 22, 2018 in Major League Baseball.

Interview with Alabama Media Group (Mobile).

I wanted to ask you if a city like Mobile (population near 200K, with a regional population over 400K) needs to be more aggressive and focused in addressing new stadium or sports venue construction projects. Or, do you think Mobile is smart by not forking over any taxpayer money for projects are often supported by tax funded entities elsewhere.

Regional economists call this the “Zoo effect” where different sized cities at different stages of development coexist in a regional economic pyramid. Mobile coexists with Birmingham, Montgomery, and Huntsville on an economic tier below Miami, Atlanta, Charlotte and New Orleans or maybe Nashville in the Southeastern economic hierarchy or pyramid.

It’s called the Zoo effect because the cities at the top of the pyramid have the big fancy Zoos and major symphonies so the lower tier cities can pass over those services and concentrate on more local public economic issues like public safety, schools and roads.

Mobile can pass on the symphony and the zoo and concentrate on a set of second tier services similar to Birmingham, Montgomery and Huntsville, but it has to provide the second level services for the smaller cities below it in its economic pyramid

This is why Mobile is now dealing with diverse fiscal issues like a minor league baseball park without a team, a $10 million football stadium at the University of South Alabama, and a new civic center. (The real world distribution of professional baseball franchises in the major and multilevel minor leagues roughly mimics the levels of the regional economic pyramid.)

Mobile takes a free public service ride on the cities above them but suffers an extra burden for the cities below them in the pyramid. Mobile doesn’t have to worry about the lions in the Zoo, but it has an extra regional responsibility for say USA and possibly its athletics.

(The real world problem with Mobile funding a USA football stadium in the Sun Belt Conference is that Division 1 football “pyramid” is currently being polarized and split in half by the recent explosion in Power 5 football media revenues way above Sun-Belt USA’s pay grade.)

Mobile also might have some responsibility for a regional convention center because it is a public good for its Gulf-Coast pyramid, but not so much responsibility for a minor league baseball park because it is a private business ultimately controlled by Major League Baseball.

So the final answer to your question is yes and no. The key to regional economic growth ultimately lies in these optimally sized, intermediate economic tiers. Mobile should be more aggressive and consistent on the public services that exist in its own unique Gulf-Coast pyramid, and lay back and let the larger upper tier pyramid and private business services be funded by the top tier markets and private business.

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