Feel like that would be cancelled out by the opportunity cost of high network individuals not spending in the area.

Do the math of what it costs a city per resident - napkin math it, total tax intake divided by population. Now compare that to the additional taxes and money that person (who is wealthy) is not injecting into your city.

So out of touch to think the net spend of a gov directly on an individual would be worth sacrificing all of that additional capital injected to your other neighbors and their businesses.

Yes but the area would collect far more revenue overall if an individual of commensurate means was actually dwelling within the dwelling.

Except land is one of a city's most important resources, and they often aren't paying much property tax (https://en.wikipedia.org/wiki/1978_California_Proposition_13).