It must be difficult for Tracy to run his presentation with all the puppet strings in the way
I watched the city council informational meeting where finance director Turbak laid out how we are going to pay for the Events Center.
1) Money from our reserves as a down payment (our money)
2) Bonds (paid back with our money)
3) Private money ($0 so far)
That’s right, the city is geared up to spend taxpayer money when no private money has been secured. Zero. Zilch. There is also no pricetag.
The timeline comes amid indications that some in the business community could be gearing up for a campaign to win voter approval.
To Hell with ‘campaigns’. When are you going to start cutting checks? I’m sorry, but voters will never approve an Events Center until private industry gets a little skin in the game. I would almost be ready to swallow a new events center funded mostly by bonds IF and ONLY IF private industry ponies up, at least 30%, especially developers in this city who have made millions from handouts from the city (infrastructure upgrades).
Finance Director Tracy Turbak said the facility can be built without new taxes.
“I believe taxpayers will be more tolerable – more tolerant – of projects that don’t hit them in the wallet.”
No ‘new taxes’ as of yet. But what is stopping the city from raising the entertainment tax to subsidize the facility? Nothing. The mayor’s plan for a new EC has been smoke and mirrors from the beginning. Don’t believe me? Let’s talk about the transparency issue. How many of the Mayor’s EC presentations have been available online before he presented them? Zero. How many can you look at now online? Zero. Maybe I’m wrong, and if I am, I encourage people to point me in the right direction. I can’t find them.
Zero transparency won’t get you far with voters, this is the main reason why I think this will go down in flames. Many councilors are not happy about the lack of transparency and the plan may end in their hands, then we are back to square one again.
Why? Because we refuse to look at the 700 pound gorilla in the room; Voter approval of a funding source.
http://www.siouxfalls.org/eventscenter
Thanks Tom. You answered one half of my question. But why are these presentations not available at least 48 hours in advance?
The private money won’t appear until they know there’s an actual project that they can put their name on. Sanford didn’t announce their naming rights deal for the Bemidji Events Center until a month before the place opened.
If you do it right, there will be competition for naming rights in 2013 or 2014 when the place is being built.
I can also tell you that a couple of the people I’ve spoken to who can actually write a 7 or 8 figure check won’t support it at the Arena site, so even if if makes it past the voters it will be an uphill climb to hit even 20%.
This is why I have suggested a percentage vote. In other words, voters agree to bond 70% if 30% comes from private.
Be prepared for Huether going ahead without a vote. The council has no authority and there’s no recall in city ordinances. I’m not sure people realize one man has complete control of city assets and future liabilities.
Huether has Klingon’s and Enterprise shields are broke.
The firm the City wants to hire to tell them how much naming rights are worth is holding up Wichita as an example of how they deliver. They initially told their Mayor and the City Council they could get $9 million for naming rights and Intrust had the top bid at $8.75 million. They ended up going back and getting a couple other major sponsors to pony up $3 million a piece for a concourse and a plaza, so they delivered $14.75 million. Nice work, right?
Not so fast, Intrust (which is just over a year old) cost over $200 million to build, so they got a total 7% of private sector funds from their local heavy hitters, how do we expect 20% let alone 30% especially when we are simply adding a big concrete box on the end of an already laughably underperforming facility located in a declining part of town?
Sy.
Intrust cost $11,742 per seat to build. Yet somehow we are going to get a first class facility with the amenities promised (like proper arm and leg room) for $8333 a seat? Just one of several transparency issues that BID and the good mayor are seen squirming in their seats like Darren Smith trying to sell another study.
I’ve always thought that 20 – 30% of naming rights cash is fantasy land.
Tyson paid 4 million for a 20 year deal to call it the Tyson EC.
Well, like I said above, if we don’t get it, we don’t build.
http://www.sportsvenues.com/pdf/names.pdf
And it didn’t even cost 65 grand to find this.
They should hire ‘SY & SY’ to market the EC.