San Diego, California - The economic impact study authored by two prominent San Diego economists has demonstrated that the proposed downtown “convadium” project would have a wide array of economic benefits for San Diego workers and residents.
The study, authored by Dr. Alan Gin and Dr. Murtaza Baxamusa, was funded by the San Diego Chargers. “The Chargers gave us complete freedom to do our research over the summer months and to come to whatever conclusions we believed were warranted,” said Dr. Alan Gin. “The study we are releasing today is the result of three months of intensive work by Dr. Baxamusa, our research assistant Kelly Allende, and me.”
The final study uses replicable and academically accepted methods, conservative assumptions and robust government data, so that the findings are independently verifiable. It identifies three specific areas of economic impact: (1) The impact of the construction of the project; (2) The impact of the Chargers’ operations in San Diego; and (3) The impact of additional conventions and meetings through the use of the convadium as an expansion of the Convention Center.
According to the economic impact study, “the estimated total employment impact for the construction of the convadium is 15,000 jobs, of which roughly 12,400 are direct and 2,600 are indirect and induced. The vast majority of those jobs will be in the construction sector. The construction of the convadium will increase regional output by a total of $2.1 billion, increase labor income by more than $800 million, and will have a value-added impact of $1.2 billion."
Impacts of Chargers Operations
The study also analyzed the impact of the Chargers’ operations on the local economy and found that “the regional impact of the Chargers’ operations is $126 million for output, $67 million for labor income, and $96 million for value-added.” The study also noted that “this economic impact is likely underestimated due to lack of data on expenditures by visiting fans of the opposing teams and on expenditures by Chargers’ players in the local community.”
Impacts of Additional Conventions and Meetings
According to the study, “the regional impact of the Convention Center expansion portion of the convadium is $272 million for output, $110 million for labor income, and $150 million for value-added.”
The Study’s Conclusion
The economic impact study concluded that “the total permanent effect of the convadium is the combination of the impact of the Chargers’ operations in San Diego and the impact of the Convention Center expansion. Employment impact is an increase of more than 6,400 jobs, of which more than 4,200 are direct and 2,200 are indirect and induced. The combined direct expenditures of more than $300 million will have a total estimated impact of nearly $400 million on regional output, $176 million on labor income, and $246 million on value added.”
Carol Kim, Director of Community Impact for the San Diego County Building and Construction Trades Council, applauded the findings of the economic study.
"The convadium will result in thousands of new good-paying jobs for San Diegans, plus new apprenticeship training opportunities for community members to 'earn while they learn,' receive full family medical coverage, retirement benefits, and enter into a life-long middle-class career without college debt. This is a clear boost to our economy and a benefit for our communities,” said Kim.