Entries Tagged 'Denny Sanford Premier Center' ↓

Events Center closed for Summer Repairs?

The new car is in the shop already?

I heard a peculiar thing yesterday. I was told a part-time employee of the Events Center was recently informed that after the Paul Simon concert that the Events Center would be closed for the remainder of the summer for ‘repairs’.

Before I get my ‘conspiracy theories’ rolling I will say this from my experience of working at the Washington Pavilion’s performing arts hall, this isn’t all that uncommon for entertainment facilities.

I worked as a lead usher the first four years the Pavilion was open. We didn’t hold any entertainment events in the hall during the summer. Mostly because many touring acts either don’t tour during the summer or they do mostly outdoor venues. We also liked it as part-time staff because we got our summers off. The Pavilion would use the time to do light maintenance and ‘deep cleaning’ of the hall (clean seats, clean carpet, and make minor repairs to flooring, stage gear and seating). However, we were never told this was for major repairs.

There are some questions though. Is the honeymoon over with the Events Center? Notice we have many repeat acts already. Is there only so many sold-out shows we can do?

But the bigger question is the terminology ‘repairs’. I do know that some major renovation is being done at the Convention Center, but this is a facility that is as old as the Pavilion. So what is going on at the Events Center, a very NEW facility. Like I said, totally understand deep cleaning and regular maintenance, but if major repairs are already being done at the place, one wonders what is up. I joked when I first heard the revelation that it will probably take a few months to drain the water from the walls.

But will we ever know since the one time there seemed to be negligence by the builder (siding) the whole settlement became a secret that seems to be protected by state law (Still waiting for the Supreme Court to rule).

I’ve been asking around about the ‘repairs’ I will keep you posted. Too bad the buttrocker palace across the street isn’t still open to pick up the slack.

Mortenson must be taking time off from the Vikings Stadium

Image: KELO-TV

To find time to work our mini-disaster right here in Sioux Falls,

Beginning on Wednesday, May 10, 2017, crews will be working on the north side of the Denny Sanford PREMIER Center to repair a portion of exterior soffit. The work should be complete in approximately one week.

In late December 2016, a portion of the soffit on the Denny Sanford PREMIER Center became dislodged due to significant winds. The soffit is located on the north (back) side of the building, and the damage appeared isolated. Beginning May 10, a subcontractor will inspect the building’s soffit and perform any necessary repairs.

This work will be completed at no cost to the City*.

*How will we ever know? Everything is a secret agreement.

This is a good start, but can you fill in the blanks?

I guess the CVB has been listening to my requests for economic impact of the Events Center and other entertainment venues in the city;

“When there’s something big going on in town, people are at gas stations, filling up their cars to drive home.  They’re eating in the restaurants.  They’re shopping all over the town,” Schmidt said.

All of this made for a lucrative 2016.  Schmidt says concerts, plays, sporting events, conventions — you name it — brought nearly $500 million into the city.

Hey this is great, but without details, it’s just all fluff. I would like to see the formula the CVB used to come to these conclusions, I would also not only like to see the sales figures of the EC but of all the entertainment venues. We own, operate, take care of and pay the mortgages of these facilities, we have a right to see the numbers.

This story was just a teaser that leaves me with more questions.

Déjà vu?

Makes you wonder how much water the walls of our EC are holding back?

Minnesota Vikings stadium officials say they’re concerned about leaky walls and loose panels at the new $1.1 billion facility.

The Star Tribune reports that stadium executives said Friday that zinc panels covering the entire exterior of the building are being tested and that the panels’ durability are a health and safety concern. U.S. Bank Stadium has been open only nine months.

The facility’s general contractor, M.A. Mortenson, is working on the northwestern facade of the stadium after water seeped through and created puddles in various places, including a concourse.

Oh, but it gets better;

Minnesota Sports Facilities Authority says it doesn’t expect to have to pay for repairs. A Mortenson executive says the company will bear its responsibility for repairs.

I guess we will never know how much Mortenson has paid us or if it was sufficient. Because 1) we have no idea what damage could be behind the walls and 2) the settlement has been kept secret. If I were the next mayor, the first thing I would do is cut a hole in the wall, and see for myself.

Did they finally fix the siding on the Denny?

Nope, I realized it’s just a hockey puck graphic . . .

Graphic; KELO-TV screenshot

Argus’ new entertainment reporter writes puff piece on ticket sales at the Denny

Here we go again, breaking in another new reporter at the Argus that allows city hall and it’s minions to buffalo them into a puff piece.

It was so nice of Chris to tell us this;

“I don’t think you’ll find a market of our size with a venue of our size that has had the number and the level of touring events that we’ve had the last two and a half years in the country,” said Chris Semrau, assistant general manager for SMG, the management company for the Premier Center.

Pollstar, an international touring publication that collects venue ticket sales, ranked the Premier Center as No. 88 in the world for tour ticket sales in 2016. That does not include sporting or special events. Usually new venues decrease in rank their second year, but the Premier Center rose 12 slots from No. 100 in the world in 2015. The facility is already doing better in 2017 than consultants for the city had projected.

And that sales number are what? Still a highly guarded secret apparently.

Chris also added this;

“We have hosted many country tours for multiple reasons, first financially. They do very well in this market.”

Just how much have the artists made at the EC?

More smoke and mirrors to cloud what we really want to know. Stop with the BS and just give us the actual numbers. How much money is going straight out the door.

The Chamber says I am wrong, but offers NO evidence

Just like most of our shallow leaders in Sioux Falls, the head mouth piece of the Sioux Falls Chamber, Mark Lee, had this to say about my city council testimony Tuesday night;

We often hear interesting things at City Council during public input, but on Tuesday we heard a new argument. The Premier Center is harming the economy of the City of Sioux Falls. You can listen to it if you choose by going to the City’s website and listening to public input between 12:34 and 15:21. The premise, if I might summarize, is that paying acts to come here and promoters to promote and SMG to manage means all our money is “going out the door.” Thus, there is no economic benefit, but rather harm.

Virtually all the empirical evidence is to the contrary and we’ve heard no other such contention, but we began to wonder. Has Omaha come to grips with how the CenturyLink Center is harming their economy? Or, how about the financial disaster must be happening in Kansas City due to the Sprint Center?  The Target Center and the Xcel Energy Center in the Twin Cities has to be bringing the metropolitan area economy to its knees, right? Why do communities build these money draining facilities?

Anyway, the City Council agenda was light on substantive issues Tuesday so this seemed to be the most interesting thing to report. Still, we’ll stay alert to the financial challenges our successful Premier Center imposes on our city.

Empirical evidence? We are not Kansas City or the Omaha. I WANT economic evidence from Sioux Falls. I actually have been asking for it since the Events Center has opened, and city councilors have asked also, with no avail. I guess the over 20 employees in the Finance Office don’t have the time to put together some simple tables;

I say prove me wrong and give us the numbers, because I have only guessed from extrapolating tax revenue that the EC had around $25 million in sales last year (but they couldn’t even give us those numbers).

So some would ask why I think the EC is a drain on the economy.

• While we have had continued sold out shows at the EC, sales tax revenue is down more then before we built the facility.

• The only development that has occurred at the site was a pawn shop that went out of business and a tax payer subsidized hotel.

• We take around $9 million a year directly OUT of 2nd penny road funds CIP to pay the bond mortgage on the EC. This is $9 million a year that won’t be spent with local contractors building our roads. That’s a lot of lost labor.

• We don’t use the net operating revenue to pay down the debt.

We can make the EC economically beneficial to the community though. If we start promoting the majority of the shows ourselves (like the Pavilion does) instead of just being a rental facility. We could probably inject enough money into the community to not only operate in the black but pay down the mortgage. SMG has argued they are not in the promotion business, OK, then we hire a management company that is, and we pay them a commission on the shows.

This isn’t rocket science folks, and it is hardly a steep request to ask for the sales numbers. But just like the secret siding settlement, the City, and it now seems the Chamber have something to hide. So instead of coming clean or even proving me wrong, they do what they know best, kill the messenger.

Is the city making ANY money on the Events Center?

It looks like we are going to get some more smoke blown up our butts tonight on Metli-Land TV (are they still calling it that, hard to keep track);

“A lot of the on sales we do, we have some of the highest grossing, out-of-the-gate sale of just about any building around the country of our size,” Torkildson said.

Ever notice when we ever hear anything about the EC it’s always about breaking records, but we never hear how all that record breaking is benefitting the community, in the form of revenue coming back into the town.

Don’t get me wrong, I’m sure there are some positive numbers somewhere, but why are we not seeing them?

As a tax paying resident of Sioux Falls, sorry to say, I just don’t see much sense on paying the mortgage on a building that I will never use because I still have to pay another $100 dollars for a ticket just to walk through it’s doors. From my perspective, I have to take VALUE in the Events Center in how much it’s existence benefits my community as a whole, and that means in dollars and cents.

We do know some things. The EC’s mortgage is around $9 million a year. The EC operations are covered and then some, a net of over $2 million this past year. We also know that we paid (mostly the state) $1.5 million in taxes.

But here is what we don’t know or only speculate on. Where does the net revenue go?  Back to the city to help pay the mortgage or in a secret SMG fund they get to play with for promotions, etc.

If the EC had approximately $20 million in sales last year, how much got redistributed in the community, and how much went straight out of town?

When will the CVB give us an educated estimate of how much money is spent in Sioux Falls by out of town concert goers? And how much tax revenue is generated?

While there are some positive things going on at the EC, I just don’t see how the city is benefitting financially from building the facility? Some would say ‘quality of life’. Sorry, but my life hasn’t gotten any better in respect to entertainment due to the EC, just more expensive.

I think it is time the city and SMG show the citizens just how much we are getting reamed while SMG and it’s associates are raking in the dough which never get’s redistributed in our community.

Representative Greg Jamsion introduces law to curb government secret settlements

I guess it takes a former city councilor becoming a Pierre lawmaker to get our city to stop with their secrets;

District 12 Rep. Greg Jamison’s House Bill 1166, introduced on the House floor Wednesday, aims to bolster South Dakota’s open records laws by making it more difficult for municipalities, school districts and any other governmental entity in the state to keep settlements of civil or criminal proceedings confidential and shielded from the public.

In 2015, the city of Sioux Falls did that when it agreed to keep secret a $1 million settlement it entered with contractors involved in the construction of the Denny Sanford Premier Center after some exterior paneling began to warp before the facility’s opening in October 2014.

“The bill is reflective of that,” Jamison said Thursday. “Clearly that was a problem and I saw an issue that needed to be addressed and here’s my chance.”

I wish Greg luck in getting this passed.

Events Center Cheerleading still leaves us with unanswered questions

Cash cow or cowardly boondoggle?

Stormland TV tried to polish the turd called the Events Center tonight, but still left us with more questions;

• The GM of the EC said tonight that people coming to SF for shows generate (private business) revenue and sales tax revenue throughout the community besides what is generated at the EC itself, but could not give us a solid number of what that revenue is, only saying it is a lot. There are formulas to determine these kind of things, in fact the Convention and Visitors Bureau has produced these numbers in the past. Have they been stifled because of the BID tax fiasco?

• The EC admitted they had a net operating revenue of $2.1 million, which is great, BUT;

  • Who gets this money? Does it go back to the city, put in the general fund to help pay the almost $10 million dollar mortgage each year? Does it go to help pay for maintenance of the building? Assuming the EC is ran like the Washington Pavilion (city owned building – privately managed) that all maintenance expenses come from the CIP not from the net revenue. And if the money doesn’t go back to the city (and citizens) where does it go? Who has control of it? SMG or the tax payers of this city?

• The EC paid in $1.5 million in sales taxes (assuming) that is from the 7.5% total tax rate that is almost $20 million in sales from the EC. Where did this money go? Promoters? SMG? Artists? Out of state suppliers? How much recirculated in the community or did it go straight out the door of SF? Can we get the breakdown of these sales?

While I am very pleased the place is entertaining people and is not sucking us dry on operations, I’m concerned the money the EC is generating is leaving our community while lining the pockets of a lot of people who couldn’t even pick SF out on a map of the United States while the citizens foot the bill for the mortgage.