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:
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:
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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