"Councilman Zack Matheny, whose district includes most of downtown, doesn’t dispute the economic impact of a new venue, saying it could be higher than $7 million. “It would be a huge asset for our center city,” he said.
But he questions the projections of a net operating surplus.
By late June, the council must decide whether to put a $30 million bond referendum on the November ballot to help build the $50 million downtown venue. The rest could come from hotel/motel tax revenues and private investors.
Operating figures don’t take into account costs associated with borrowing that $30 million, which could run $3 million a year, Matheny said.
“We don’t have a surplus at the coliseum, and we had 912 events out of 365 days (in 2011),” he added.
In the past three years, operating deficits for the entire coliseum complex have ranged from $1.5 million to $1.8 million. The city plans to contribute $1.9 million in the next fiscal year’s budget to cover the deficit.
Nor has AMS specified an exact number of seats yet, Matheny said. Promoters it surveyed suggested 2,800 to 4,000 seats, with a minimum capacity of 2,500.
“How can you have a budget showing a surplus when you don’t know how many seats would be in there?” Matheny said."
But wait, that's not all the bad news.
"Across the country, performing arts centers generally are not money-makers, said Walker Sanders, president of the Community Foundation of Greater Greensboro. At the council’s request, the foundation hired AMS and formed a community task force to study the issue.
“You don’t look for a performing arts center to be a money-maker,” Sanders said. “You look for them to be an economic generator.”
But just an hour’s drive east, the Durham Performing Arts Center has netted an operating profit since it opened in 2008.
The city of Durham, which owns the building, shares net profits with the company that runs it. The city’s share has topped $1 million for the past two years and is expected to do the same this year."
Well, not quite.
"Operating figures don’t take into account the annual debt service of $2.5 million a year. The city uses its net profits to help pay off that debt and for building maintenance.
“Net profit doesn’t cover all the debt service, nor was it intended to,” said Reginald Johnson, Durham’s interim community development director."
You don't say... Seems the "community survey" is being called into question not only by me but by the mayor-in-waiting himself.
"Matheny and Councilwoman Trudy Wade asked whether an online survey of 860 residents, which showed strong interest in attending shows in a new venue, adequately measured community sentiment. It didn’t seek opinions on borrowing money to build it, Wade pointed out."
But that isn't the only survey and the other survey is still ongoing. You can let your opinion be known by clicking here.
If you know me then you know I've never been a fan of Zack Matheny but you know what-- I think Zack is starting to grow on me. As a matter of fact, if the election were today I'd vote Zack over Robbie. Hell, I'd vote Zack over Robbie any day!
Continue to article #104. George Strikes Again!
