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More information about the Performing Arts Center:
The final cost for this boondoggle should be in the range of
$55,000,000.00. This number represents the estimated cost for the
construction (without the expected cost overruns, which we’re sure
you’ll eventually see), loss of revenue from the sale of the property to
a tax paying entity, loss of the tax income from private ownership of
the property, ongoing operating losses, other related costs and the
huge interest costs for the bonds. In spite of the protests from city
officials that interest isn’t counted in the cost of a project like this, it
is a cost that must be paid because of this structure, and is paid from
taxpayer funds. Oh, and don't forget the separate parking structure!
Required by city code for the PAC to operate, it should not be
separated from the cost of the PAC.
Studies, contracted for by the city to determine the feasibility for a
center of this type, projected ongoing operating losses for the first
five years of operation, when extrapolated to the life of the bonds, to
be approximately $7,000,000.00. This is actually a conservative
number, since the study further projected the losses would be
exacerbated starting in year 6 and beyond because of the need for
capital expenditures to replace worn equipment.
In another study, paid for by the city, a majority of the citizens who
were polled answered they would not support a performing arts
center if they were required to pay additional taxes in the range
required to keep it fiscally sound. Taxpaying citizens’ homes in the
already developed area just to the west of the center are dwarfed by
the size of the new neighbor. These citizens in the senior Realife
homes lost their aesthetic view, will be deluged with increased traffic
with a resultant safety issue and could suffer in the value of their
investment in their homes because of the PAC. Again, remember the
Mayor's impassioned speech during the development moratorium
debate about the “citizen's voices needing to be heard”? When the
elderly people from Realife turned out in force, wheelchairs and
oxygen tanks in tow, to the City Council meeting to voice objections to
the PAC, they were summarily dismissed and ignored.
All of the reputable private developers decided not to commit to the
PAC as a private enterprise after performing their own due diligence.
Since their projections were for failure for this type of venture, it
would seem to most reasonable people that it was time to go back to
the drawing board for a new more practical approach to developing
the property. These were some of the principle reasons for our
objection to a taxpayer owned and operated Performing Arts Center.
In spite of all the sound reasons for not going forward with this
project, the approval was made by a 3 to 2 council majority, with Dan
Gustafson, Elizabeth Kautz and Liz Workman voting to approve it.
Council members Charlie Crichton and Dan Kealey voted against this
undertaking.
The decision has been made, and the construction has been
completed. Those who decided to use your taxes for this purpose,
rather than the tax relief that was scheduled as TIF districts matured,
will need to answer to the voting citizens of the great City of
Burnsville.
The final cost for this boondoggle should be in the range of
$55,000,000.00. This number represents the estimated cost for the
construction (without the expected cost overruns, which we’re sure
you’ll eventually see), loss of revenue from the sale of the property to
a tax paying entity, loss of the tax income from private ownership of
the property, ongoing operating losses, other related costs and the
huge interest costs for the bonds. In spite of the protests from city
officials that interest isn’t counted in the cost of a project like this, it
is a cost that must be paid because of this structure, and is paid from
taxpayer funds. Oh, and don't forget the separate parking structure!
Required by city code for the PAC to operate, it should not be
separated from the cost of the PAC.
Studies, contracted for by the city to determine the feasibility for a
center of this type, projected ongoing operating losses for the first
five years of operation, when extrapolated to the life of the bonds, to
be approximately $7,000,000.00. This is actually a conservative
number, since the study further projected the losses would be
exacerbated starting in year 6 and beyond because of the need for
capital expenditures to replace worn equipment.
In another study, paid for by the city, a majority of the citizens who
were polled answered they would not support a performing arts
center if they were required to pay additional taxes in the range
required to keep it fiscally sound. Taxpaying citizens’ homes in the
already developed area just to the west of the center are dwarfed by
the size of the new neighbor. These citizens in the senior Realife
homes lost their aesthetic view, will be deluged with increased traffic
with a resultant safety issue and could suffer in the value of their
investment in their homes because of the PAC. Again, remember the
Mayor's impassioned speech during the development moratorium
debate about the “citizen's voices needing to be heard”? When the
elderly people from Realife turned out in force, wheelchairs and
oxygen tanks in tow, to the City Council meeting to voice objections to
the PAC, they were summarily dismissed and ignored.
All of the reputable private developers decided not to commit to the
PAC as a private enterprise after performing their own due diligence.
Since their projections were for failure for this type of venture, it
would seem to most reasonable people that it was time to go back to
the drawing board for a new more practical approach to developing
the property. These were some of the principle reasons for our
objection to a taxpayer owned and operated Performing Arts Center.
In spite of all the sound reasons for not going forward with this
project, the approval was made by a 3 to 2 council majority, with Dan
Gustafson, Elizabeth Kautz and Liz Workman voting to approve it.
Council members Charlie Crichton and Dan Kealey voted against this
undertaking.
The decision has been made, and the construction has been
completed. Those who decided to use your taxes for this purpose,
rather than the tax relief that was scheduled as TIF districts matured,
will need to answer to the voting citizens of the great City of
Burnsville.
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