Let’s face it, I don’t think too many tax payers in Sioux Falls are that naïve or ignorant to think the Events Center will pay for itself (You know, cuz like, it is quality of life). Even with sponsorships, you have operating expenses, maintenance and mortgage payments, a steep bill that has to be paid for the next 30-50 years.
I think this is pretty obvious to anyone who owns a home or business, or for that matter a lawnmower or snowblower.
But it still hasn’t stopped the manager of the Events Center and our city finance director from talking about ‘Net Operating Income’ which leaves out our mortgage payment on the facility.
Paying 9 million in debt service to make 2 million in income doesn’t make you a financial genius, and surely not worth bragging about. Even if you factor in the supposed tax income of $1.5 million you are still at a $5.5 million dollar loss for the year. It would be like making a household income of $3,000 a month with a $6,000 a month home mortgage payment. Not sustainable, or even reasonable.
It’s dishonest to say ‘its in the black’ or ‘net income’. Â Now if you want to say the operations are in the black, that is perfectly honest, and believable. Â But don’t say it’s making a profit or ‘net income’. Â This word play effects people not knowing the distinction and creates the perception that it’s a wild success.
Also note, anyone who has read the prospective and then retrospective studies on all of these venues knows that the first two years don’t really mean anything. Â It takes until about the third year before you see what NORMALIZED operations will be. Â This is the honeymoon period and cannot be counted on as the norm going forward.
We should be honest. Â Don’t claim it’s making tons of money, it’s not. Why not say it’s costing us money, but it provides a quality of life, and it’s worth the cost (and you can agree with that or not).
How about using that 2 million in “net income” and help out the paratransit system instead of trying to raise the rates 25% to gouge the customers who have to use it?
And you point out the sad part about this, they probably won’t even put the money towards the mortgage payment.
Just like the south side Walfart I’m sure turdback and heater I mean mmm will believe it will pay the seven or so million on sales tax to make mmm look fit for governor. Still a clowns with a hog barn sitting at 85th and Minn. thanks mmm. I’ll be voting for any one else than you.
Watched the linked video. A lot of numbers with no accounting at all for reality. The analysts who dream up these numbers get a huge FAIL. They suggest one in four concert goers stays overnight in a hotel. Are you kidding me? Think about it. The SF MSA is 240,000 people. All within twenty minutes of the denny. Not certain what the population is within an hours drive of SF, but I would not be surprised if at least 95% of tonites concert goers do live within an hour of town. And when that show is over with they will get the hell out of dodge. To suggest 3000 out of town people at a sold out event are going to further wine, dine, gas up, and lay their heads down in a SF hotel is fantasy.
Our businessman mayor needs business and accounting experience. This credit card godfather moved from retail into payday loan customer.