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.

62 thoughts on “Civic Center continues to see losses”

  1. Check out the uproar in B/N over U.S. Cellular Coliseum over the past 4 years.
    While they are not the “convention center” the PCC is, their management has been having their feet held to the fire.
    The result is that they have worked diligently to book more events and sell more tickets.
    Look at the arena shows booked by US Cell and PCC over the past six months – there is an incredible difference. Hockey season has started. Those teams are anchor tenants of their buildings (33 and 40 dates, respectively), but the real management test is how they do in the off-seasons. Bloomington has a successful arena football team (8 dates) where Peoria does not (I think they gave up a year too soon on the Pirates). Then US Cell has had several arena concerts – some of the sold out – where Peoria has had none.
    I think the Civic Center IS a jewel for Peoria, it just is not managed/sold well.

  2. I know people who have provided the Civic Center management with very detailed proposals and impact studies (positive ones) as to why they should book certain acts, only to be given a polite “no thanks.” There are many times in the past few years that the Civic Center has chosen to remain dark, rather than expend a bit of effort to latch onto a lucrative touring act. I agree that it may be time for some new blood there.

  3. I agree with anon and conrad on this one. The Civic Center wasn’t a poor investment; it is just being mismanaged and is vacant way too often. This isn’t necessarily because of a poor facility.

    As far as vacant properties near the Civic Center, that’s not entirely accurate. Block by block, here’s what surrounds the Civic Center:
    Kumpf, Jefferson to 3rd: CAT campus
    Kumpf, 3rd to Monroe/Garrett: suburban office building; extended-stay hotel
    Monroe, Kumpf to Fulton: Parking lot
    Fulton, Monroe to Madison: Parking deck; church
    Fulton, Madison to Jefferson: Twin Towers (one bar, several offices, residential condo towers)
    Jefferson, Fulton to Liberty: Civic Center Plaza (apartments and offices, including street-level offices); Prairie Building (vacant)
    Jefferson, Liberty to Harrison: PNC Bank building, parking deck
    Jefferson, Harrison to Kumpf: parking lot, bus station

    The only truly vacant space with sidewalk frontage is the Prairie Building. The rest of the buildings surrounding the Civic Center either do not accommodate for any possible street-level development that would potentially thrive off of Civic Center events or are already occupied by uses that don’t maximize the potential of Civic Center traffic.

    For instance, the Fulton Street pedestrian mall just south of the Civic Center. Heading downhill from City Hall, the east side of the street is occupied by the phone company (no possibility for street level development) and a vacant building at Jefferson and Fulton, which looks to be in varying states of disrepair but at the same time has no “For Lease” signs or anything in the windows. The west side of the street is Civic Center Plaza, which at street level has offices, a small gym, and a government office; neither of the three uses really needs to be near the Civic Center (or on street level at all). The south half of the block is an ICC building, which generates foot traffic but does not really offer any amenities for sidewalk commerce.

    While street-level offices are undesirable (more foot traffic is generated by retail and restaurants), this isn’t a problem of just the Civic Center area so much as it is for all of downtown. There is not a single block of downtown Peoria that has street-level retail or restaurants on both sides of the street. The closest we come to that is the oft-cited 500 block of Main Street, but even half of that is dead space in terms of retail (the Pere and the Federal Courthouse).

    The Civic Center in and of itself won’t generate any new businesses, because there’s really no place for new businesses to expand. It may seem like a catch-22, but street-level retail attracts street-level retail. A variety of shops and restaurants encourage window shopping and more business for tenants. What downtown needs is a block of just street-level retail and restaurants that encourages window shopping. The closest we have is the 300 block of Main Street, across from the Courthouse, but again street level offices take up half the block.

    The downtown bar market is oversaturated, but the retail and restaurant markets are sorely lacking. If the City is looking to encourage real development, they need to focus back on downtown and less on Grand Prairie and Dunlap.

  4. Anybody have any idea why the Marriott project continues to be so quiet? Wasn’t there a loan request of the IL Capital Development Board that should have already happened?

  5. The PCC should have never built the addition. The recession really hurt convention business and there are not adequate quality hotel rooms near by.

  6. CJ’s blog should be titled “Everything that is wrong with Peoria” or “Glass half empty” or “This place just sucks and everybody screws everything up” or “Rather than move I just like complaining”

  7. FYI – 2010-2011 Seasons

    Bradley – 16 dates
    Rivermen- 40 dates

    There is a Disney on Ice show and a Tyler Perry show in the arena this month. Other than these two sports, there is nothing else in the arena until Cirque du Soleil at the end of April.
    Not on the calendar yet – There usually is a dirt event (Monster Trucks or rodeo) in January for a couple of days. The Car show in March/April. Easter Service. Bradley (and maybe D150 graduation).
    Am I forgetting anything? We are talking about 72 days the arena is in use in a 6 month period of time…and this is the busiest 6 months.

  8. “CJ’s blog should be titled “Everything that is wrong with Peoria” or “Glass half empty” or “This place just sucks and everybody screws everything up” or “Rather than move I just like complaining”

    Personally, I like “Everything great we’ve been promised with our tax dollars, yet not delivered.”

  9. Personally, I like “Everything great we’ve been promised with our tax dollars, yet not delivered for decades. And the cycle repeats itself again.”

    Or “Taxpayer Bailouts Play in Peoria!”

  10. I do not see any improvements in financial stability with the
    City of Peoria either. Laying off security forces is not an answer to their financial problems. Since they are unionized, it’s last in, first out.

    The museum is shaping up to be a financial disaster.

    Keep an eye on the Peoria Park District finances. Turns out they didn’t need the $5 million dollar parking lot and new entrance for the zoo addition.

    Keep an eye on Peoria County. The board is elected by party. When one party dominates which is the situation now, special interests have a large influence on spending OPM. The voters have an opportunity to balance the board at 9 and 9 on November 2.

  11. You’re right, Peoriafan.

    I have no idea why people continue to leave the city of Peoria, with all these great attractions and such.

  12. I watched them drop the hotel before they built the PCC and all they hype then was it will bring money into peoria by the boat load. I am still waiting for the first boat to come in. If this is a mangement issue then they should ALL be fired and get some folks in that will be AGRESSIVE in getting the place booked. They should not go more than the time it take to do a turn around of the building between events. From what has been reported before they should start by looking into there fees and make sure they are the lowest on ALL fees. Times are tough and folks won’t come to the most pricey place. I would love to see something peoria has promised succeed so far I’m stil waiting and after 30 years am getting a little tired of waiting.

  13. Any one read the J Star Our View yesterday?

    “Our View: Some city services are too critical to cut much more”

    Are you kidding me?

    I know someone has already brought this up, but the J Star has finally reached the bottom. I feel like I am reading the work of some schizophrenic psychotic. One day they are taking nasty jabs at a group of people who are trying to promote ‘responsible spending,’ and now…………..

    Do the ‘Smart People’ in charge at the J Star know who is even writing these …’Our Views?’

    Please, tell these idiots to stop before someone actually reads this paper and thinks all of Peoria is nuts…

    too late………..

  14. Peoriafan,

    I can appreciate your…. misguided loyalty, but don’t you think enough is enough?

    Like the Journal Star, you seem to think the people who “complain” about the course this city is steering are merely the discontented few.

    I can come up with a lengthy list of things I love about this city. Can you honestly tell me there is NOTHING about Peoria that you don’t have a problem with?

    People ARE moving out. They ARE NOT moving in. Why do YOU think this is the case… no museum!?!

  15. I saw a show on WTVP that highlighted the theatres that the Civic Center tore down. What a HUGE loss. The pictures of their interiors were amazing.

  16. Sadly, I don’t think the arguments regarding the Rialto hold much water. We still have an antique vaudeville-era theatre downtown (the Madison) that isn’t being used.

  17. Bill,
    I seriously doubt it. How many single-screen theaters are there in Peoria? Or Bloomington? Or Pekin? Or even Morton? (No, I do not count the Normal or Apollo.)

    So, stick to the argument instead of throwing out red herrings.

    Most reasonable people don’t try and deny that the PCC is a jewel for the city of Peoria – heck, the entire region. The problem is how it is MANAGED. It is under-utilized and thus, a financial drain on the city.

    Feet need to be held to the fire where financial performance is concerned.

  18. Isn’t the single screen in Chillicothe still up and running?

    Movies for a buck…last I heard.

  19. Don’t know specifically about Chilli but small towns are the only places you’ll find them.

  20. There are two screens at the Town Theater in Chillicothe. Adult evening tickets are $5.
    Of course, there soon will be another single-screen theater in Peoria. The (IMAX or not) theater in the PRM—with fewer seats than at the Chillicothe theater—will certainly be a HUGE moneymaker!

  21. I understand not all is right with Peoria and lots of things frustrate me. Any community you live in has issues. It seems this blog and others only are interested in writing about what is wrong and never about what is right. The Civic Center has some issues but it has also brought some great shows and talent to Peoria over the last 30 years. What other city downstate of Chicago can compare to what Peoria has in terms of public facilities such at the Civic Center. Do you really think downtown Peoria would have been better off without it? I guess if your complaints are going to hold water then you should also praise what is good too.
    The Rialto was a fantastic theater and it was a shame it was torn down but don’t blame the Civic Center entirely on that. I suspect it would have been left to a similar fate as the Madison if it was not torn down. I think it is very short sighted of a community as a whole to have let their Palaces, Madison’s and Rialtos fail to become something of civic pride. Unfortunately economics are not on the old theaters side. Almost every city that had an old movie house has lost them. It is my understanding that the Kerosotes family who owned a lot of the old theaters was not interested in operating them anymore as they had moved on to the multiplex shoe box theaters in the strip malls. Kerosotes was not going to sell the old theaters to a competitor to operate so they sold off the properties which were then sold to developers and torn down. Example -Varsity, Beverly etc.
    Some small towns managed to hang on to their theater but believe me they are not making the owners much money.

  22. What are you people doing talking about theatres? Thow days are gone for downtown Peoria. The big question with me is whether Bradley basketball is paying a fair rental, and the same for the Rivermen. They are the two biggest and best attractions and should be paying plenty for the facility.

  23. wacko – Bill just threw that Red Herring out there.

    The Rivermen and Bradley combine for 56 guaranteed dates for the ARENA. There is a Theater and Exhibit Halls, as well. I believe the two sports teams pay a fair amount for their rental.
    The problem – and people keep wanting to get sidetracked from this – is that ALL spaces within the PCC are UNDER utilized.

  24. 150:
    “Bradley does not have the facilities to host men’s basketball.”

    Whose decision was that? They just built a brand new fieldhouse.

  25. The new “arena” seats 4,200. That isn’t nearly big enough for men’s basketball.

    They didn’t need to build a bigger arena because the PCC is available and more than meets their needs.

  26. With 6100 students, building a multi-million dollar fieldhouse that seats 4200 is pretty stupid, doncha think?

    The PCC is going broke and may not be around soon.

  27. No, what was needed was an arena that sits 10,000.

    “The PCC isn’t going anywhere.”
    Ha ha… very funny. How about the management of the PCC? You waiting for District 150 to take it over? The City? Gary Matthews? Dave Ransburg?

  28. “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.”

    WELL SAID CJ!

  29. Bradley cannot afford a 10,000 seat arena and it would have been an absolute boondoggle if they built one. Charlie, you are really misinformed on this one.

  30. How much more would 5800 more seat capacity have cost?

    More than the Peoria Riverfront Museum? More than the 9 million given to Gary Matthews? More than the 55 million given to prop up the PCC? More than what Bradley pays the PCC every year? More than the cost of narrowing Main Street and buying the grocery store next door?

  31. yes Charlie, more than those. Charlie, you are looking foolish here. You need to realize your limitations–those areas where you really don’t have the expertise or knowledge to comment.

  32. I wish I had doable answer(s), I really do. But it seems like the Peoria cheerleaders do too, and aren’t any closer than I am. So a distressed downtown and comparable rest-of-city are no good. Is “investing” bottomless-pit taxes, fees, and grants in all the fluff really the answer? After the CC decision was rammed home, I had one of the gloating cheerleaders tell me the re-election of the “representatives” who voted for it was my referendum. I said “No, my next home will be my referendum.” After 25+ years out of city/county, I can only say I wish I’d done it ten or fifteen years sooner. Hoping for something to be better when one has no control over it, sure doesn’t make it happen. Though wonderful “jewels”, will the path, CC expansion, hotel, museum and so forth really accomplish anything other than claiming and costing more money? When? The memories are fine, but in my stay I put up with enough cost, crime, and general grief to last a lifetime. I feel sympathy for those who are still doing so.

  33. I will patronize charlie with the following:

    More than the Peoria Riverfront Museum? No
    More than the 9 million given to Gary Matthews? Yes
    More than the 55 million given to prop up the PCC? No
    More than what Bradley pays the PCC every year? Yes
    More than the cost of narrowing Main Street and buying the grocery store next door? Yes

  34. Card fan….very well said.

    What I think the “movers and shakers” in this town fail to realize is that crime and the school district are the reasons families leave or would never move here, not the lack of a museum or a trail.

    For some reason, I have a feeling that many of those same “movers and shakers” probably don’t send their kids to 150.

  35. Evansville is building a new arena that approximates the size of the PCC arena (11,000 seats). It’s cost estimate is $128 million. The city is also going to give substantial incentives for a new hotel–to replace an old one already there–so the new arena can attract conventions.

    http://www.evansvillearenaproject.com/

  36. http://www.courierpress.com/news/2010/oct/14/city-considers-its-next-steps/

    When officials in Fort Wayne, Ind., wanted to entice a developer into building a convention hotel in that city’s downtown, they agreed to buy land for the project, demolish the existing structures and furnish the site free of pollutants that might be found in the soil.

    And that was just the start.

    Fort Wayne officials also offered the use of 250 parking spaces in a 900-space parking garage the city had previously, more than $1 million for the construction of sidewalks, curbs, lights and similar things, an annual subsidy of $250,000 for at least 10 years, income-tax credits a developer could sell to raise cash and the construction of a skyway between the hotel, the historic Embassy Theatre and the Grand Wayne Convention Center.

    Evansville pick out items to purchase after the Executive Inn auction hits its final reduction prices before closing on Sunday night.
    The result of all of those incentives is the $25 million Courtyard by Marriott Hotel, which White Lodging of Merrillville, Ind., opened on Sept. 1. The hotel contains 250 rooms, 3,500 square feet of meeting a space and a restaurant that serves breakfast, lunch and dinner — all features Evansville officials have said they want in a convention hotel.

    And the two cities have similar reasons for encouraging the construction of a Downtown hotel.

    Fort Wayne wanted a hotel to stand near its Parkview Field, a baseball stadium that opened in 2009. Evansville officials likewise would like to have a place to lodge travelers in town to see concerts or other events at the city’s new Downtown arena.

    Yet Fort Wayne didn’t get something for nothing, and neither is Evansville likely to.

  37. $50 million for Bradley’s arena.

    Charlie, it is not only the huge cost, but do you really think ther is a market for to 11,000 arenas in Peoria? The Bradley arena would be bleeding red ink.

    Charlie, I know you like to complain, but you are really off the reservation here.

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