By:  Diane Benjamin

The management agreement for the Coliseum specifies concessions will be handled directly by CIAM or an “independent contractor”.  BMI Concessions is NOT independent, since John Butler owns both CIAM and BMI, I can’t find where BMI ever received approval from the City Council to operate as a separate company.

From CIAM’s management agreement for the Coliseum:  Management Agreement CIAM  Page 9

(1) provide directly or by independent contractor (such contracts with independent contractors subject to the approval of the City, such approval not to be unreasonably withheld) (i) public concessions throughout the Coliseum at locations mutually agreed by the City and CIA (including, without limitation, at permanent and portable concession stands and cafes located in the Coliseum and on the grounds around it), (ii) catering and related services for all catering required at the Coliseum, as requested by the City or any outside group or organization seeking catering services at the Coliseum; (iii) vending services at the Coliseum, and (iv) alcoholic beverage services, to the extent the applicable liquor license permits (collectively referred to herein as”Concession Sc1vices”),

The City Council is being told that BMI Concessions is a private company, and therefore records of concession sales are private.  The very notion that BMI has any right to withhold information is preposterous.  If CIAM had hired an independent contractor, and therefore received a percentage of the sales, they would be examining EVERY event report to ensure they were correctly paid.  John Butler has no reason do that since he owns both companies.

Facts:

• BMI operates in the City owned arena
• BMI does not pay real estate taxes or rent to the City
• Concession sales are logged on City owned equipment (Point of Sale equipment)
• BMI is never audited
• BMI is contractually obligated to pay a percentage of gross sales to the City
• The City has NO IDEA what the gross sales are because they never ask
• BMI is contractually obligated to pay 15% on catering.  Is the City being paid for “backstage catering”?  (Food/Liquor charged to performers and their stage crews)  The City never asks
• BMI is contractually obligated to pay commissions within 3 days of an event.  Do they?  Nobody checks
• Commissions paid to the City have dramatically decreased since the Coliseum opened
• BMI is solely responsible for what commissions they pay the Coliseum Fund
• The City still claims they have no right to audit BMI

Contract negotiations are underway to renew the CIAM contract for another 5 years.

Can David Hales and Tari Renner really be this stupid?

Bloomington taxpayers are being asked to believe that John Butler has given the City every dime he owed.  Since no one is checking, do you believe him?

Can somebody explain why a criminal investigation shouldn’t be conducted and City of Bloomington officials charged with Official Misconduct?

It’s sad the Coliseum was built after the citizens said NO!  It’s even sadder when management isn’t held accountable for faithfully representing the interests of taxpayers holding the bag of debt and losses.  Quality of Life?

Still wonder why government MUST be limited?