Brian Costin from the Illinois Policy Institute (the guy who gave Bloomington the transparency award), made the following comments to this story on Facebook:
The only true way to truly measure the economic benefit is profit and loss. If a company loses money it is consuming more resources than it is creating. This is a drain on the community and the taxpayers who are forced to subsidize it.
Government bureaucrats like to trot out economic development studies with multiplier effects to disguise an embarrassingly failing business misadventure. The key flaw in their economic studies is they don’t give the same multiplier effect to non-subsidized industries that are profitable on their own. By their flawed mathematical models they could justify the forced taxpayer/public investing in ANY business no matter how unprofitable or horrible for the economy.
by: Diane Benjamin
The Coliseum is a public-private partnership. The City of Bloomington built it with no idea how to run it, so they hired 2 guys – Central Illinois Arena Management. The Coliseum’s only claim to fame is the economic impact it has on the City. It doesn’t matter that:
- your taxes are higher because of it
- it doesn’t make money
- there is no transparency in concessions.
The Coliseum first quarter (May 1 – July 30) is posted on the City website. http://www.cityblm.org/Modules/ShowDocument.aspx?documentid=7358
You are supposed to believe they can lose money, but everything is great because they contributed $2,026,789 to the local economy. They even put their calculation right on the statement:
*CVB calculation:
Meetings: Number of attendees * 25% * $64
Events: Overnight attendees: Number of attendees * 25% * $125
Day attendees: Number of attendees * 75% * $34
Conventions: Same as events
Those numbers represent what they think people attending events spent OUTSIDE the Coliseum. The only true way to calculate economic impact is tax revenue. Making up a number is far easier. The City allows CIAM to pat you on the head and tell you everything is great! Meanwhile, the Coliseum finally booked a concert – for next May. The fiscal year ends 4/30/15, so evidently they are getting a jump on next year. This year is being written off as a huge loss, very few events are booked before next April. Worse, extending their contract will be on the City’s agenda. Instead of putting the management out for bid, I wonder if the City will continue to let CIAM shaft taxpayers.
Why did I bring up public-private partnerships? Because if this:
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Painter was talking about a new public-private partnership to rehab mobile homes. Taxpayer money will be funneled to a group that will have very little transparency or accountability. I’m sure Mayor transparency will point out this is Federal money being used. He must think they earned from somewhere other than us.
Expect it to work about as well as the Coliseum. The Friends of Government will make money, the taxpayers get the bill.
Tired of hearing about problems and want solutions?
Painter is up for election next year.
Throw her off the Council!
Reblogged this on BLNNews and commented:
Comments by Brian Costin, Illinois Policy Institute
City’s cut from concessions only $8000 for three months? Seems low