"What do you think VOG. It would seem to me they should get the one already grazing at least to a break even point before they throw the albatross around property taxpayers necks."
Having thought about this for awhile let's consider this.
First we have to assume its losing a large amount of money.
THe budget website is saying over $4M a year in debt service alone which makes sense for a $60M bond at 4% over 20 years - you're coming out at over $85M so $4M makes sense.
Then you have the operating costs of $3.93M
To keep it simple we'll say $8M between operating and debt service.
In order to get to break even there would have to be a much much larger number of large public events scheduled which again makes operational costs go even higher.
There's no way to get to that level of break even given the current market conditions. This is why they don't WANT us to know just how badly it's doing so they lump the CC into other budgetary funds.
But just looking at debt and OP costs I see no other types of businesses that can generate the level of revenues needed to get to break even point.
So now what? The only thing to do would be to convert it. How about making it the new city hall? Use the sale proceeds from selling the current one to offset the "mortgage"? County offices? They just moved out of down town. It is a government building used for functions administered by a private company.
I would be curious to see how much of the Op costs are "fees" charged for running the joint, but I suspect those fee's are relatively small compared to debt service so terminating the contract may not get us too much closer to break even - but any little bit may help.
I could not find a good part of the CC's website that told me the employment levels there - got a link?
More information about formatting options