Wednesday, September 17, 2008

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.