Wednesday, September 17, 2008

No Expansion Without Justification

There other choices and needs, besides the Convention Center expansion.  Vote no on ballot question 2B.

Pueblo Citizens for Positive Change

No Expansion Without Justification

Here’s Why a “Vote No” on the Convention Center Ballot Question 2B is the Right Choice

PUEBLO: This Will Cost You Money. It does not matter if it is called a tax or fee, the money is out of your pocket. Where is the value to the community? When will “our real needs” be addressed?

The Urban Renewal Authority (URA), the Convention Center gatekeeper, has not been able to prove that the expansion will bring in a significant amount of out-of-town business to Pueblo. When we requested past performance records URA provided incomplete and inaccurate files, leading one to question the credibility of the URA. National studies show the number and attendance at conventions and trade shows have been decreasing.

The Convention Center operated at a deficit every year and would continue to do so even with the expansion.  During the years 2005, 2006, and 2007 the operating deficit averaged $400,000 each year (Pueblo Chieftain, 6-4-08). The City Attorney told the City Council (6-9-08) that the Convention Center deficit was $500,000 in 2007.

Each year Pueblo sends Global Spectrum, the Convention Center management firm, over $120,000. In 2007 checks were written to out-of-town Global Spectrum for over $150,000 (2007 Convention Center check history).

Financing for the expansion would include paying interest only until the year 2019. What will be the actual cost at the payoff year 2029:  14 million, 20 million? Remember that URA and the City have a history of cost overruns. We have until 2019 to make the decision as to how to spend the Vendor’s Fees or to stop collecting it after 2019.

There are other choices and needs, besides the Convention Center expansion!

To learn more and to record your opinion, visit http://WWW.PUEBLOG.ORG  or http://www.pueblog.us  on the Internet.
Donations for copying are urgently needed (call PCPC). Contact Ted Freeman 544-4479 or Alvin Rivera 566-0069.

Vote No on ballot question 2B

Vendor Fees can be used for puposes other than the Convention Center expansion.  The Convention Center is poorly managed and has not been justified.

Vote no on ballot question 2B

Proponents, including city elected officials, have misled the public about the need to utilize the Vender Fees for expanding the Convention Center.  How to spend Vendor Fees should be the choice of the people. There are other CHOICES AND NEEDS in Pueblo besides the need of the Convention Center expansion. 
Let us examine the past record of the Convention Center operators: Urban Renewal Authority officials in cooperation with the City Council. Vendor Fee expenditures are simply out of control:
• The Convention Center operated at a $500,000 deficit, which has been increasing every year.

• The 2007 contract with Global Spectrum, manager of the Convention Center, has doubled their management fee and incentives are based on gross revenues, rather than PERFORMANCE or any accountability for keeping expenditures in check.  The Convention Center should be managed by a local business source, not a Pennsylvania firm.

• Urban Renewal Authority administrative expenditures, which are not direct operating expenses of the Convention Center, are being partially financed with Vendor Fees.

• It has been shown that the insurance rates provided by Global Spectrum are not competitive.

• Substantial increases in employee salaries and bonuses were made without regard to incentive performance and accountability.

The Convention Center expansion has not been justified:

• National studies and the Hunden Report paid for by the Urban Renewal Authority indicate that both the number of conventions and trade shows and their attendance have been decreasing.

• The Convention Center’s own literature claims they hosted only 25 conventions in 2007.  Further, their reports for 2008 show they only have 12 confirmed events and for 2009 there are only 9 confirmed events with 7 proposals pending.  The Urban Renewal Authority claims there is an increasing demand for Convention Center space. However, their own reports indicate different results.
• The Vendor Fees are committed to paying off the bond debt, operating expenses, and maintenance of the existing Convention Center until the year 2019. Financing for the expansion would include paying interest only until 2019. 

Pueblo Citizens for Positive Change (PCPC) opposes this measure because it lacks a positive economic impact and consequently is not in the best interest of the people of Pueblo or their city government. Thus, PCPC recommends a “no vote” on Ballot question 2B.