How do you put a positive spin on a $4.33 million loss for the Civic Center? Observe:
Peoria Civic Center net loss less than expected
The Peoria Civic Center is not immune to a wicked economy.
But having budgeted for a net loss of $4,764,988 for the 2011 fiscal year that ended Aug. 31, the actual total of $4,332,368 seems less egregious.
More than $432,000 less egregious.
“I would say it’s below budget and we hope to always make budget,” said Jim Wetherington, who was promoted to Civic Center general manager on May 1 upon the retirement of Debbie Ritschel.
“Considering the market that was out there, I think staff did a phenomenal job cutting expenses.”
That’s one way to look at it. Here’s another:
When the $55 million Peoria Civic Center expansion was proposed in the early 2000s, consultants confidently stated the Civic Center would have a net operating income of $1.5 million once they reached a stabilized year of operation. That should be now, since it’s been four years since the expansion was completed in March 2007. Instead, the losses have been and still are trending downward. Rather than $1.5 million in net income, they ended FY 2011 with a $4.33 million net loss — a difference of $5.83 million.
So, the headline could just as accurately have read, “Peoria Civic Center net loss $5.83 million more than expected.” It all depends on which expectations we want to reference.свети георги
Ref. Times 1 4-2-84, Page 3, Byline 2, should read:
”Miniprod Forecasts lncrease Chocolate Ration, April, 1984…’from 20 to 25 Grams Per Week.”
Orwell wasn’t that far off….
well the obvious answer is “if only we spend an additional 37 million$ on our portion of the hotel then, folks, then the civic center will hold a profit.
see if this doesn’t float on the council floor come hotel debate….
Isn’t this the whole point of the hotel project that the city wants to cancel? There has always been discussion that the Civic Center needs an attached hotel to reach it’s full potential.
I’d argue that that Civic Center management’s narrow view of what kinds of entertainment Peorians want to see is part of this issue. Many sold suggestions for various acts have been and are made; just as many are ignored. I’d prefer management that wants to see the facility used a lot and actively works to achieve that goal.
I think the concept of the “attached hotel” is being used as yet another excuse for the continued failure of the PCC. We literally have several hotels within easy walking distance of the center. . I think the rehab of the Pere would be great, but the current deal is not good for Peoria taxpayers.
The PCC would benefit greatly from an attached quality hotel.
Is anyone in PIA gov’t with spending authority accountable? Sure doesn’t seem so – budgeting for a sizable loss is not cutting expenses. Anyone who says the PCC will ever turn a surplus if this is done or that is buildt should be promptly fired. Like the RecPlex for the Park District, the Civic Center is a white elephant for the city.
I wonder how much money they would lose if they fired all the staff, turned the heat down to 50 and shut off the lights…permanently? Probably less than $4.3 million.
I heard an unhappy investor in this hotel deal say Matthewsrecently told himthis is a done deal.Hisassistant &legal team have been meeting at city hall &Matthews assured this guy that the city,thruemails,calls & meeting, has signed on and is moving forward-the vote is just a housekeeping matter. His company is behind in payments,fees,construction expense & on and on. I don’t think he or his project are in any condition to save the civic center when they can’t handle their own finances.Gary The whole process is a joke at the Peoria taxpayers expense.
I suspect he is like most developers–highly leveraged and operating on other people’s money. This project has probably put an enormous financial strain on him.
I think the council vote will be close
Any idea what the annual operating budget of the Civic Center is? I’m wondering what the $4M loss represents as a percentage of budget. That loss is “small” (if $4M loss can be considered small) if the budget is $100M (i.e. – 4%). But it is even more significant if the annual operating budget is smaller — say $10M (40% loss). I haven’t been able to find it looking quickly online…anyone know what it is?
This is how people who live off the public dole act. It’s not their money and doesn’t affect their pay so they are happy with a smaller loss than they expected. What a bunch of idiots. They, the company that runs the PCC should all be fired. Bring in another management company and fire them if they don’t perform or at least one that doesn’t issue a news release claiming how good they did for US by only losing $4.3 million. If no one can do it, then sell the place. I’m sure the good Reverend Purple who rob the monies given to him for the old Szold’s building can turn it into another church.
I don’t have time to read it, but if you go to the Oct. 11, 2010 Peoria Chronicle post, fittingly titled “Civic Center Continues to see Losses”, the first sentence has a link you can click on to see the operating budget for Fiscal Year 2011.
2011 Total (Budgeted) Operating Revenues: $5,538,422
2011 Total (Budgeted) Indirect Expenses: $5,538,060
2011 Depreciation: $5,611,833
2011 (Budgeted) Operating Loss: $5,611,471
2011 Total (Budgeted) Non-Operating Revenues (includes HRA tax income): $846,481
2011 (Budgeted) Net Loss: $4,764,990
2011 Actual Net Loss: $4,332,368
Peoria really can’t afford any more “successes” like the Peoria Civic Center.
so therefore the city needs to come up that amount from the general revenue fund to pay the difference or will they dip into the what there is of the downtown TIF…that they have switch funds over the warehouse district.
I am asking as I am unsure
CJ we have another “successes” it is called Midtown Palza…
CJ:
I think it would be better to look at the actual results instead of the budget. Were revenue (both operating and non operating) and expenses more or less than budget? That would show how management is doing in bringing in events and or controlling expenses (and then looking at expenses to see where it is lower for example is maintenance not being done which would cost more in the future). If depreciation (a non cash expense) is causing the loss than that might be more acceptable (again it would need to be reviewed and understood).
I understand that the results are not what was forecasted when the expansion took place but that is something that needs to be explained.
all that is relevant –
dear boss:
we expected to lose lots of money. we did. a little less than we planned though.
don’t worry. our salaries have been paid.
Depreciation isn’t a real cost… it is a phony accounting bs maneuver.
Damn, I know I am beginning to sound like a broken record, but this is the problem that has to be fixed before anything else. If the Civic Center is not booked out and drawing the crowds, there is no point to restaurants, hotels, ballparks, etc. etc. etc. (Now I sound like the King of Siam). SMG is the culprit who has left us hanging, blaming the economy instead of hustling to bring in the acts, or competing with the ever growing number of competitive venues in the area (Like East Peoria, Bloomington, etc.). We spent all this money building an absolutely fantastic venue for concerts, sports and the arts, and yet the stages are empty, the floor space lies dormant, and other venues are taking our business who are willing to charge less.
Poor management is not the sole distinction of SMG. Someone explain how we failed to keep an AFL or IFL team in Peoria (Pirates / Rough Riders) while the Bloomington area manages to keep the seats filled with Prairie Fire fans?
SMG owes us some new thinking and a lot more hard work toward keeping that place occupied.
It’s a lot easier in a town with a major university population and all of the resources and revenue that brings. That, and/or another employer like Caterpillar is what Peoria would need to change the population demographics to one that could support such a facility.
I just don’t know how the City of Peoria gets out of the downward spiral in a down economy. It’s like a society that during the seven years of harvest needed to borrow to feed it’s population. Now in the seven years of famine, it is producing even less and is like a crack addict jonesing for one more trip.
Hint on the propaganda the Civic Center people spread. The Pere operates at 44% filled per the JSEB on 9/4/2011. How can that be Civic Center moguls; you spread the lies that you needed a bigger hotel to handle all the visitors and you can’t fill the Pere or surrounding hotels now?
Even when all the hotels were susposedly filled for one event this year, my daughters found two rooms at the Mark Twain.
Peoria is loaded with stories of failed projections and the Peoria City Councils support of this doomed from the “get-go” project should mean that all that vote for it should be removed from office when they come up for election.
All along most businessmen I know say if the project can’t stand on it’s own why would the council invest more taxpayer risk in the deal??