Mike has kept a lot of his campaign promises so far, so it is a good possibility he could pull this off, but I have some questions, assumptions and predictions (and I am sure Sy will chime in 🙂
“We don’t know what the plan is,” City Councilor Vernon Brown said. “We don’t know the size. We don’t know how it would be paid for.”
This is the biggest problem, how will you pay for it. If I was a guessing man, and I am, I think the city will use the Pavilion subsidy that runs out in 2014 to subsidize the place and pay down bonds;
The city issued a bond in the 1990s to help finance the conversion of the old Washington High School into the Washington Pavilion of Arts and Science. That bond issue has been paid through the city’s entertainment tax. It’s scheduled to be paid off in 2014, which would free up about $3.8 million a year in additional revenue. But there might be competition for that money, since it could be used as a future revenue source for other projects.
Why do I think bonds? During Huether’s budget address he ranted and raved about how well the city has ‘managed debt’ and thanked everyone from Munson to meter maids for doing such a good job. He will just take out bonds for whatever private investors won’t pony up.
He also said there are private investors in Sioux Falls willing to help with the events center and that a key goal is to identify them to partner with such a project.
What worries me though is that he is trying to steer away from the public vote.
Though Huether declined to comment on details of the plan, he said a public vote on the project will be considered.
If he thinks he can just convince people to go along with his funding plan without a public vote, he is NUTS. Whether is it bonds, private investors or selling his bullshit platitudes, doesn’t matter, the voters better get to approve it or he will find out really quick how fast 2014 will come and go without an events center.
It doesn’t seem like the right economy for an ambitious project. That said, a public project could provide jobs until the economy gets better. I’ve learned not to trust city government and worry bids would be ‘usual’ (rigged) rather than ‘competitive’. I’m just not in the mood to make another mayor rich from under the table bags full of cash.
Yes, voters must decide. I’ll vote NO. If it passes, I’m OK with it provided there’s no new taxes.
As I’ve said before, the Events Center is to be viewed as an investment. The only way it should move forward is if the voters approve the investment. The investment will work as long as we set it up to succeed. Unfortunately, the Mayor is going to propose a facility that will shortchange us on our investment for generations.
Bonding is the way to go, but as we’ve sat on our hands for nearly a decade, we might be in for tough sledding there as well. The Obama Admin, or at least his “blue ribbon” debt commision will propose killing the Tax free status of Muni Bonds, the kind designed for this type of project.
Also, we built the Arena during a recession, and that worked out well for us. You want competitive bids? This is about the most competitive bidding environment anyone can recall. Too bad we aren’t in a position to capitalize on it.
And yes, Taxpayers should foot a chunk of the tab. The place will be an economic generator, even if you never set foot in the place. And it’s possible it will make money sooner than later, as a poster on the AL noted here:
“Polk County will receive a $536,563 profit from the taxpayer-owned Iowa Events Center for the fiscal year that ended June 30, officials announced this morning.
The return is the largest profit since the $218 million Events Center opened in 2005 and has helped disarm concerns the recent loss of the Iowa Chops minor league hockey franchise would put dent in revenues.
Even with the loss of hockey, officials said the Event Center’s success has outpaced expectations envisioned some eight years ago when county supervisors approved its construction.
“To say I had my fingers crossed was a vast understatement,†Supervisor Robert Brownell said. “This has turned out better than even my wildest expectations.â€
http://www.argusleader.com/comments/article/20100725/NEWS/7250323/Mayor-Events-center-will-open-by-2014
Yes, voters should vote. They should. When events centers are built, voters vote. They do.
And the good people of SF will rejoice 🙂
Mike (#3) sounds like Hubris. ‘They should’ ands ‘They do’ gospel according to Mike makes me think so.
Maybe there are ‘two of him’. It’s to bad you can’t see his hands out holding an imaginary beach ball.
I need one of those Millionaire books. I no longer take the Argus and could use it to start a fire.