Here’s something from the “once you start a subsidy, there’s no end” department: In 1973, the Minnesota Legislature created the Spirit Mountain Recreation Area Authority. With its views of Saint Louis Bay and trails that are longer than just about anywhere in the Midwest outside of Lutsen, Minnesota, it’s a fine place to go skiing or snowboarding.
But it’s also an example of the dubious practice of government-practiced “economic development” activities. As a public entity, Spirit Mountain has competitive advantages over Lutsen and other privately owned ski areas. For example, it receives $225,000 per year for its share of Duluth’s tourism tax.
If the City of Duluth gets its way, Spirit will soon receive $6 million of federal “economic stimulus” dollars. The money would be used to buy snowmaking equipment.
You might scoff at the idea that a ski area on the shores of Lake Superior actually needs snowmaking equipment, but as a snowboarder and skier, I’ll testify to the value of snowmaking equipment in extending the season and providing a solid base for an area’s customers.
But should taxpayers foot the bill for this? On a statement published by the U.S. Conference of Mayors, Duluth says that the $6 million will create 70 jobs. That’s $83,000 a job.