Tuesday, August 25, 2015

FORT WAYNE- PERMANENT BACKWATER pt 1

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https://www.facebook.com/GinaMBurgess/posts/10207369848589268

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BUYERS BEWARE— IS THE DOWNTOWN ARENA STUDY FLAWED? I have been waiting patiently for the past month for the Mayor’s Downtown Arena Study Committee, as headed up by Chuck Surack, to release their findings or at least to give a “thumbs up” or “thumbs down” assessment. During that time, I’ve read all 36 pages of the Downtown Arena Executive Summary and the 188 pages of the Downtown Arena Study, as prepared by Hunden Strategic Partners, the same folks who were used to garner public support for the most recent expansion of the Grand Wayne Convention Center. [1][2][3]
After my review of all documents, it’s become painfully clear that this “study” is nothing more than paid propaganda aimed at providing evidence that a new “Downtown arena” would be feasible and, of course, anything that is Downtown and “feasible” is good for all this so-called Downtown “economic development.” Now, some of you may think my assessment is jaded and to my doubters I cordially invite you to read through these documents first-hand. Any good-faith review is going to reveal the following:
1. The study was conducted by Hunden Strategic Partners (HSP), the same folks who have performed similar work in the past to provide evidence that the Grand Wayne Center expansion was necessary. (I’ll have more on this company tomorrow with plenty of references.)
2. HSP’s main theme throughout the study is that a stadium is needed to bring events to Downtown during the winter months. That the purpose of these events is to provide needed pedestrian traffic to existing and developing restaurant and retailers, which need year-round demand to survive. Do you understand what is happening here? The Henry administration (backed by Harper and the rest of City Council, supported by DID, Greater Fort Wayne, etc) “sells” the idea to the public that there is enough pre-existing interest in Downtown to support building a new stadium when in reality a new stadium is needed to support Downtown “economic development” projects. Sincerely, this is darn-near textbook “bait and switch.”
3. HSP fails to acknowledge the Grand Wayne Center as having the flexibility to act as an entertainment venue, but oddly enough recognizes C2C Music Hall. Folks—anyone who has been to a HolidayFest concert at the Grand Wayne Center knows it has the capability of doubling as an “entertainment venue.”
4. HSP’s report is dependent upon and assumes that the area’s largest employers will remain in the area. Ironically, that includes Vera Bradley who downsized their workforce just this past year, sending jobs overseas to China.
5. HSP tries to position a new Downtown arena as an alternative venue to the Coliseum, but admits that the new arena would be a competitor of the Coliseum. In an effort to emphasize what appears to be a manufactured need, the HSP survey claims that the Mad Ants and the Derby Girls are not satisfied with the Coliseum. Personally, that is a hard sell given the reality that neither of these organizations would be in existence today without the Coliseum. And really, just what exactly is the extent of their “not being satisfied”?
6. HSP makes some really bad assumptions throughout their report. One of the claims is their acknowledgement that Fort Wayne residents travel to Indy, South Bend, and elsewhere for events, which is then followed by a gross assumption that if a comparative event venue were built in Fort Wayne for similar sporting events, entertainment acts, etc. that residents from Indy, South Bend and elsewhere would travel to Fort Wayne. Seriously, what were these guys smoking? That’s like saying someone who lives in Florida near Walt Disney World is going to go out of their way to visit Indiana Beach. Do you really think that is going to happen?
7. HSP then goes on to compare other arenas, but the comparisons are nearly all faulty. Of the 6 arenas being “compared,” only one arena was proper. That arena was the Budweiser Event Center in Loveland, Colorado. Why was that the only appropriate comparison? Because of the 6 communities compared—Loveland was the closest in population and demographics to Fort Wayne.
8. HSP also tries to make the argument that it would be good if Fort Wayne was on the first itinerary of major events, but then as it clumsily tries to explain how a Downtown arena would not be in competition with the Coliseum (and simultaneously in competition with the Coliseum)—HSP actually makes a solid counterpoint to its own argument. How? HSP affirms that by not being on the “first itinerary,” Fort Wayne is actually able to capitalize on that position by taking advantage of “off days” of major touring acts. Interestingly, the only “first itinerary” venue in all of Indiana is the Banker’s Life Fieldhouse. This means none of the other venues in Indianapolis and none of the venues in South Bend are “first itinerary” venues. That’s not too uncommon as most states only have one “first itinerary” town. So, of course, this begs the question---with most States only have one “first itinerary” town and Indianapolis being that designated location here in Indiana, just what the heck are we trying to do??? Besides setting ourselves up for a financial failure by building a stadium that won’t be able to support itself?
9. HSP advocates a design that would primarily benefit the Mad Ants and create “opportunities” for NBA exhibition events---like the kind already being hosted at the Coliseum---and touts the possibility of Fort Wayne hosting the NCAA play-off games. What? First, do you really think Indy is going to give THAT up without a fight? Secondly, why would the NCAA look at Fort Wayne, when they can look to larger cities like Indy, Cleveland and Chicago—all within a few hours drive and a half hour flight from Fort Wayne? Please don’t get me wrong---I’m all for Fort Wayne trying to bring in more conventions, tournaments, etc. to boost local tourism, but we need to focus on a obtaining a consistent stream of well-known mid-size events so that our local tourism industry can gain the experience needed to manage a larger event of NCAA caliber. Otherwise, we set ourselves up to be a one horse town.
10. HSP admits the cost of building a stadium is significant, admits that the local economy is weak and cyclical (true story, check it out), and that this venue would be in direct competition with the Coliseum. But then it goes on to discuss a “management fee” of $200,000+ a year and how this “management fee” DOES NOT INCLUDE the salary or benefits of the permanent staff, the arena’s utilities, or maintenance. So just what does this “management fee” cover? Nothing except lining for someone’s pockets. (Same thing is happening with Parkview Field as has happened with other private-public partnership projects of the past. Remember the Public Safety Academy??) Worse, HSP admits to a NET OPERATING DEFICIT of $231,000 (year 1) and how that deficit will actually GROW to become $817,000 (year 10). And---really can’t believe there is an “and” here---AND the naming rights is being counted as REVENUE instead of just being a typical fundraising catalyst to help pay off the initial debt service. (At least Parkview’s naming rights of Parkview Field went to help pay down the initial debt service. So what are we doing here??)
11. Now, for all of you optimists out there who still want to believe that all this “downtown development” is a good thing…good for the economy, good for job creation, etc.---Please, please, please read through the study. HSP admits that a Downtown arena could….COULD (as in not definitely, but perhaps maybe)…create up to 196 full-time EQUIVALENT jobs. That’s not permanent jobs. That’s not full-time jobs. That is full-time “equivalent” jobs---meaning multiple part-time jobs that will most likely be minimum wage. Worse, HSP admits that these jobs will be created by the Downtown stadium project, but that these jobs will not be onsite. So, just where will these jobs be? Well, with the recommended location being beside the Grand Wayne Center, between the other recent public-private partnership projects of the Downtown Library (recently expanded) and Parkview Field (recently built)—after eliminating Taco Bell, Rally’s and King Gyros (or about 196 full-time “equivalent” jobs)—these jobs are likely to come from the 3 street level restaurants being recommended as part of the Downtown arena project. But isn’t that onsite? Yes it is….and probably indicative of yet another textbook “bait and switch.” Alternatively, this proposed site is also right next to the up-and-being-developed Ash “Cash & Slash” Brokerage site—which originally promised 200 non-descript jobs. Hhhhmm….???
Folks, as of December 31, 2014, Fort Wayne’s debt load was $754,641,718. This project is already reporting significant operating deficits---just like all the municipally-owned parking garages and most of the other Downtown development projects. The project touts the creation of 196 full-time “equivalent” jobs, but doesn’t come clean on the fact that it will be displacing about 196 full-time “equivalent” workers. Besides getting in debt, creating another project that will have to be taxpayer subsidized directly (and indirectly---utilities, maintenance, security, etc.), what exactly are we doing here??
Whatever you view—whether you agree with this project or disagree with this project, please take some time and read through the study for yourself. See for yourself whether you find this study to be as flawed as I did.
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SOURCES:
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  • You, Dean RobinsonKenneth White Jnr and 9 others like this.
  • Bill Bean Thanks for the links.
  • Cedrick K. Tinker I work with the company that is updated the Coliseum and I tell them ever day they in the works of building a downtown arena.
  • Evert Mol The Ants and roller derby don't like the Coliseum because the sparse crowds in a large arena make their product look bad. The question is the financial impact on the taxpayers. We don't even know what the ultimate impact of the ballpark is on our pocketbooks and probably never will since it's been declared a great success.
    • Gina Burgess If you read the arena survey, they admit to an operational deficit that grows over the course of ten years. The deficit starts in Year 1 at a $231,000 deficit and then grows to a $817,000 deficit by Year 10. Sincerely, its in the survey. Please read it.
  • Dean Robinson "The Mad Ants and Derby Girls are not satisfied." That is absolutely hilarious! Taking on Chuck "Sweetman" Surack is risky business He is Fort Wayne's new Keith Busse.
    • Gina Burgess Chuck Surack is a nice guy, but these guys (Surack included) take turns being cheerleaders for the local economic initiative du jour. The "cheerleaders" follow a pattern--a significant campaign contribution to the Mayor (directly and indirectly through Carson Boxberger), an appointment to the head of a task force/commission/committee, press conference/news release touting their appointment and what a good outstanding citizen the cheerleader is, and then depending on the amount of the campaign contributions, the value of the initiative being "studied", etc that determines whether or not you get a Mad Anthony's Red Coat. 

      Sincerely, I am not even being facetious---look at the past decade of Red Coat winners and cross reference their campaign donations and the public initiative du jour. These guys need the media to promote and sell this propaganda to the public but once its online, its very hard to retract and control it. At some point, they are going to realize that in the digital era--info is a two way street and that they only have control over one part of that two way street. Or they could try this newfangled concept of just being honest about what they are trying to---most of which stems from the need to CYA over past mistakes and bad choices. 

      Besides, at the end of the day, my issue isn't with the people that finance the political machines. Most of these guys have corporate interests and making money is what corporations do. I can't even fault them for taking the easy and locally bery lucrative way of using taxpayer money. I just wish these guys would step back, re-evaluate the amount of money they spend on "pay-to-play" politics and crunch the numbers. Sure, they get all these so-called economic development incentives, but what if they didn't have to pay through the nose and multiple layers of government for those incentives. I'm betting anything that their cost savings would either cancel out the "pay-to-play" expenditures or may even garner them more profit if they took out the "pay-to-play" middleman....and hence, may not even need the "incentives." 

      Many of these movers and shakers are good guys, have family and friends in this town, attend church and are active in the community---some of its sincere and real, some is to carefully craft a respectable public image. But at the end of the day, they don't want to see this town and the people in this town hurt. But for some reason, they just can't shake the whole "pay-to-play" system that demands taxpayers subsidize non-sustainable public projects.
  • Dean Robinson I wouldn't say the study is flawed. It will provide the local advertising-supported "news" media with the proper cheerleading points. The regular rogues gallery of corporate partners will keep pumping sponsorship and advertising dollars through local arts and culture events to make all the private partners look great (Hanning & Bean notwithstanding). This is how public-private partnerships work. There are no mistakes here.
  • Russell Mcnutt The question should be what new events will it bring RV shows, concerts gun shows pet shows ect. Will they have shows that bring people to the Fort. That's your revenue. Doesn't matter if local companies down size. You're not after local folks you're after out of Townes, day trippers make them stop at Fort Wayne between going from Chicago to Indianapolis or Bloomington 
    I've been living and my wife works in a tourist state and towns in AZ and NM. The locals work the events shops ect out if towners spend
    Will the arena attract out of town people to come and spend money That should decide if it's worth it or not
    It doesn't sound like it right now.....how much do mad ants and derby chicks bring from out of town
    Ok I'm going to step out and take a risk of hate mail
    I've lived and worked in tourist towns my wife runs a tourist based store I've been everywhere in this country and I love to visit places for different reasons and I've observed states grow and others fail
    If Fort Wayne wanted to improve income to the city, bring business and thrive......
    They would take the stick out and build one casino downtown and one outside of town different types of folks
    Towns explode revenue wise. While dad is gaming mom is shopping. While kids are watching derby chicks parents are gambling. They eat out stay at motels. The boys go to colts games the girls gamble 
    It employs the heck out of locals
    Business improves
    Crime doesn't sky rocket
    You need unarmed security that's called job creation 
    AZ, NV, NM are laughing all the way to the bank
    You'd even fill up those rooms downtown 
    Dad gambles mom and kids go to grand Wayne they buy gas...., they break down need mechanics and yes some may break a law and the folks there know how to make money off crime
    Ok, done with that rant😎
    • Gina Burgess The only way for the Downtown arena to attract out-of-town events is for the Coliseum to shut down. There's so much entertainment venue competition now that local venues are already cannibalizing each other. When Parkview Field first opened, it mimicked whatever events were happening at Headwaters Park and began drawing some of the events away from Headwaters Park, like County Fest. In addition to Parkview Field, you have the Coliseum, the Embassy, Come2Go Music Hall, Foellinger Theater, Spiece Fieldhouse, the Plex, and the various facilities at IPFW, Indiana Tech, Ivy Tech, University of St. Francis, etc. 

      Locally, we are flooded with entertainment venues, sporting venues, retail operations and restaurants. And our local economy can't support all of this. But we keep building and building because the cold, hard reality is that if we stop building then economically--Fort Wayne is right back to the days of Harvester. The even colder and harder reality is that the City is so saturated that we are nearing the point of implosion. That's why the City is trying to get everyone to buy into the whole regional cities initiative thing as well as the whole "Road to One Million" initiative that is being touted to try to attract more residents to the Greater Fort Wayne area. Why? Because in the good old days, the City could hide its runaway spending and ever-increasing ferocious appetite by annexing parts of Allen County. But now, to stay afloat--it literally needs more tax revenue than there are people in Allen County able to pay the kind of tax revenue needed. 

      In fairness to the current and past Administrations, this problem has been on the horizon since Harvester's pull-out in the early 80's. At that time, Win Moses was Mayor and he was faced with record flooding, pre-Reagan recession economics, and the area's biggest employer leaving. In a very desperate attempt---and note that I am not criticizing him here as Moses was in a no-win situation---in a very desperate attempt to stabilize the local economy and try to fill in the void left by Harvester, Moses turned to construction. Hence, the erection of One Summit Square (now known as the Indiana Michigan Power Center). Unable to bring another employer to the Greater Fort Wayne area as large as Harvester and unable to stop the flow of other larger manufacturers from leaving the area (i.e. Magnavox, GE, etc), City Administrations have relied on construction jobs to fill in the voids. The most lucrative, massive, and biggest job creators are public-private construction, such as the Public Safety Academy, the erection of the Grand Wayne Center and later its expansion, the erection and demolition and expanded erection of the Downtown library, Parkview Field, Harrison Square, Ash Brokerage, Cityscape Flats, countless parking garages and the list just goes on and on and on. 

      This kind of continued development cannot be sustained. Local taxes keep rising and that limits the amount of money local residents have to spend. Less money in the local economy means less jobs can be sustained in other sectors. Less jobs means lower incomes. Lower incomes means even less money to spend. The cycle has played itself out so dramatically that retail and restaurants outside of Downtown and Jefferson Pointe are going out of business. Coliseum Blvd has seen a dramatic drop in businesses. Empty big box stores litter Fort Wayne. Shopping centers and strip malls all over the City have vacancies--and in some cases, the whole strip mall is empty. Even Glenbrook Mall has been impacted---if it wasn't for holiday shoppers, its very likely that this mall would close down too. For the past few years, its had trouble paying its property taxes, has fallen behind on basic repairs and general maintenance.

      Now to be fair, there are pockets of successful development that dots Fort Wayne's landscape, but if you compare the success stories with the economic failures---you'll see that Fort Wayne is positioned to go the way of Detroit or Gary if something doesn't change. The Administration is banking on the Governor's regional cities initiative. Personally, I think that is a pipe dream because it doesn't address the underlying problem--it simply continues to mask it.
  • Dean Robinson Indiana doesn't do well with casinos. One bankrupt casino operation bought another bankrupt casino operation within the last couple of years in the Hoosier state. Casinos tend to encourage certain crimes and vices other than gambling. This is not hate mail, Russell Mcnutt. We are open to ideas other than turning Fort Wayne into Pottersville.
  • Dean Robinson Feel free to Google "Indiana Grand," "Indiana Live," and - my personal favorite - "Gregory Rayburn."
  • Russell Mcnutt I've seen it work
    The Navijo Nation is rich
    I bet the Casino going bankrupt because of management 

    I fuss the way to find out is.....if possible find out how many people leave Indiana on the weekends to go to Chicago and MI to gamble. How many people leave Ohio travel through Indiana 
    You get the point
    On the 20 east leaving Texas on Friday night going to LA to gamble the traffic is at a stop for hours then the opposite on Sunday night and worse on holiday weekend 
    Texas saw that money leaving and is getting ready to build 
    As you said it was a suggestion 
    If a group of independent people or a group of both parties done research and asked some of these thriving cities and spoke to the Navijo nation I bet the results would be interesting 
    It would be hard to keep the politicians out. The tax revenue from the casinos would pay for areana. Here's a question. The casinos that failed were they the horse ones....they don't work. Need the machines the slots ect ....the cards
    • Gina Burgess In 2009-2010, Henry tried to get a casino referendum on the ballot, but that initiative failed at the State house due to the large amount of opposition that came from key stakeholders, namely conservative church-going right-to-lifers Fort Wayne residents (aka Republicans) and other existing casinos who rely on Fort Wayne residents for their profitable operations (namely those in the Chicago/South Bend area). Indiana has 11 casinos--8 are river based, 2 are "racinos", and 1 is land-based. The most successful casinos tend to be river based and located on or near state lines. 

      Regionally, the Pokagon Band of Potawatomi Indians has been pushing for a tribal casino. However, they want to base it in the South Bend area too. The Indiana State legislature has been somewhat resistant to the idea---I'm guessing due to the interest of the same stakeholders that thwarted Henry's casino attempts.

      Economically, a casino or two makes sense. Socially, however, it totally doesn't. Fort Wayne prides itself on being the City of Churches---you can't have "sinners" openly play where "saint" congregate. With gambling comes other vices, like alcohol, drugs and carnal entertainment and with that trifecta comes sex and with sex comes unwanted pregnancies and with unwanted pregnancies comes abortions from amoral women and if those conservative church-going right-to-lifers aren't there to stop it all then the very fabric of Allen County's social moral compass is at risk (as well as the house of cards political propaganda machine). Sincerely and somewhat humorously--the one thing that could probably fix some of the Fort's economic woes can't fix the economic woes without cutting off the political arm of the right to life crowd. Decisions, decisions---make money or lose political power. Truly, couldn't happen to a nicer bunch of hypocrites. wink emoticon
    • Russell Mcnutt Thanks Gina Burgess I didn't know about the other casinos 
      I did know about the reasons Indiana won't go all in that's the stick...lol
      Funny the number one industry in America is porn....get over it churches. All the red X's as you drive down any interstate in America. 

      Thanks for info. I know that stick will stay firmly in place for a long time
    • Mark Garvin Forget a casino in Fort Wayne,; it will never happen. Indianapolis desperately wants a casino because the bloviated egos running that City think a casino is all that is needed to make Indy a tourist, vacation, convention paradise, and blame the absence of such a paradise on the failure to bring in gaming. The rest of the State won't give Indy a casino because the good residents of Indy feed the other gaming sites. Allowing a casino in Fort wayne further defeats Indy's dream. Talking about a casino here is a waste of time.
    • Gina Burgess Mark Garvin -- In fairness, we should at least acknowledge Hoosier Park Racing and Casino. While not in Indianapolis, Anderson is close enough. So, a casino could happen in Fort Wayne, but I do agree with your assessment that it is rather unlikely.
      Unlike · 1 · 23 hrs
  • Russell Mcnutt Guess not fuss.....lol

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