Civic Center continues to see losses

One of the items on the City Council’s agenda for Tuesday is adopting the Peoria Civic Center’s FY2011 budget. This document also shows the Civic Center’s FY2010 performance.

You can see some performance graphs of FY2001 through 2009 in this previous post. The FY2010 numbers continue the downward trend. The Civic Center had 518 event days, a drop of 10% from 2009 and the lowest number since FY2006. Their operating loss before depreciation is $97,015; their total net loss is $4,768,927.

Things are looking bleaker in 2011. The Civic Center Authority expects only 491 event days in the next fiscal year, and are taking several cost-cutting measures to mitigate their anticipated losses. Of particular note, they state, “Convention center business is projected to decrease in FY11 with a further reduction in FY12.” The exhibit halls/convention space was the portion of the Civic Center that was increased the most in the recent $55 million expansion. The consultant who recommended expansion predicted large increases in convention business. Nine full-time positions have been shed through layoffs and attrition over the past two years, and the three top executives are getting no raises or bonuses again this year.

HRA tax revenue is down significantly. In FY2009, the Civic Center’s tax subsidy was $1,446,276; in FY2010 that had dropped to $990,946, a 31.5% decrease. In FY2011, they’re budgeting to receive $950,000 in HRA taxes.

The Civic Center is often cited as an example of success in municipal investment. Civic leaders will refer to current large projects as the “Civic Center project of our day,” sometimes adding, “Can you imagine downtown without the Civic Center?” The implication is that the Civic Center has been wonderfully successful in some way, but I have yet to figure out how. In its 30-year history, it has never been able to make a profit without HRA tax subsidy. It also has not spurred any peripheral development that has been able to sustain itself. The Grille on Fulton, despite its perfect location for capturing Civic Center traffic, could not stay in business, nor could any other restaurant that tried to locate there. Other properties surrounding the Civic Center are vacant; several nearby buildings were razed a few years back to expand parking.

Nevertheless, the City has poured $55 million more into the Civic Center, and is now spending more millions to get an attached hotel built across the street. They keep pursuing the pot of gold at the end of the rainbow that’s promised by our little leprechaun consultants, but only consultants and developers are actually getting the gold. Meanwhile, the City is looking at laying off even more police officers and firefighters, and wondering why they can’t attract more people to move here.