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Rosenthal: Fiscal Conservatism, Changing Culture Say “No” to SF Event Center

My blog neighbors Jennifer Holsen and Scott Ehrisman have been waging war against the big event center that goes before Sioux Falls voters on November 8. I naturally sympathize with Holsen and Ehrisman and other event center opponents, if for no other reason than that the supporters of Mayor Huether's plan all seem to be members of the big-money Establishment. (I know, disliking the people who back a plan does not invalidate the plan; I'm just confessing my own ad hominem urges.)

I thus note with interest a declaration of opposition from one of the great members of the Establishment, Sioux Falls businessman and Republican big dog Joel Rosenthal. Without dabbling in ad hominem, Rosenthal blogs that, despite the inadequacy and obsolescence of the Sioux Falls Arena, now is not the time to sink city tax dollars into a new event center:

Any conservative approach demands their must be a dedicated source of finance. While I prefer a dedicated local sales tax that would levy a 1% general sales tax that raises the necessary money in 4 or 5 years and then could be rescinded; even a pledge of parking revenue, beverage revenues, ticket tax of some other source is necessary.

Using and depending on the current general sales tax is risky. While clearly the City could fund bonds it places necessary and ongoing city government expenditures in jeopardy [Joel Rosenthal, "Not the Time," South Dakota Straight Talk, 2011.10.22].

Rosenthal also questions whether the evolving conference and concert market will support a large concert venue:

Our culture has changed. The convention and meeting business has been transformed by technology (teleconferencing, webinars, and the like) and people are taking in their entertainment through technology as well. The most popular concerts are by performers who play to the plus 40 crowds. The Boss, Parrotheads, Dylan, Elton John, etc. With the exception of a couple of current country & western stars young people are accessing their music and entertainment differently. They are not attending concerts [Rosenthal, 2011.10.22].

I wonder if responsible civic leaders like Rosenthal might apply the same conservative reasoning to the "event center" on which Madison voters get to cast ballots on November 8. The Madison Central School District and various citizens insist that we can't spend $8.2 million to renovate our high school without spending an additional $6.3 million to build a bigger, better gym with a couple thousand seats to host larger sporting events. Yet given current fiscal constraints, given reductions in staff and student opportunities, don't we want to be real cautious about how we invest our tax dollars?

I look forward to readers' commentary on the validity of the analogy between Rosenthal's reasoning on the Sioux Falls event center and mine on Madison's new gym.

12 Comments

  1. Roger Elgersma 2011.10.24

    Sioux Falls seldom fills the old one so we obviously have not grown into a new one. The consultant one previous task force ago said that Sioux Falls is not big enough for that big of a venue. Consultants seldom tell you that you are wrong since they have a hard time finding work after telling rich people they are wrong. Unless of course you are so wrong that they would look foolish if you tried and failed.
    This whole project is typical of those who think positive attidude will naturally metamophize into success. Two task forces ago we had people that wanted one at the same time as Des Moines did. They have three times the population we do and two very large universities within driving distance. Three months after they built it they fired the three managers since they were not filling it as they had projected they would.
    Show me the need before you ask me for hundreds of millions. Especially while we are cutting the kids in school and cutting parks, police etc.

  2. Douglas Wiken 2011.10.24

    Event centers are like a chute to blow money out of South Dakota on the next airplane a celebrity can get on.

  3. Michael Black 2011.10.24

    Rapid City has an awesome event center. They have multiple events going on at any given weekend. The Black Hills seems to be able to support it. Why is Rapid different than SF?

  4. John Hess 2011.10.24

    People want this stuff or they'll go elsewhere. Build it!

  5. Michael Black 2011.10.24

    SF is counting on attracting more events. I doubt very much that would happen. A new gym in Madison will see far more use.

  6. caheidelberger Post author | 2011.10.24

    Point of information: Barnett Arena in the Rushmore Plaza Civic Center seats 9,400, can hold 10,400 festival style. The ice arena holds 5,127 for hockey, 7,450 for concerts. The theatre seats 1,741. Projected seating for the SF event center: 12,000.

    Indeed, one would think that Sioux Falls, which serves a larger metro area, could draw more concerts and crowds than Rapid City. But Rapid is also a cultural hub in a way in which Sioux Falls is not. Our nearest competition -- Cheyenne? Billings? Bismarck? -- is over five hours away (dang, might as well drive to Sioux Falls). Sioux Falls has to wrestle with Sioux City, Omaha, Lincoln, Des Moines, and the Twin Cities all within closer radii. Plus, Rapid City can make an overnight stay more appealing with the opportunity to tour the Black Hills. I wonder: do opportunities for extended stays have any impact on concert attendance?

    Now wait a minute, Michael: on what basis do you doubt that the growing city of Sioux Falls will attract more events but posit that a new gym in populationally stagnant Madison will see more use? (You might be right; I just want to hear your reasoning.)

  7. Michael Black 2011.10.25

    The gym will see more use than any event center in SF. They think they can increase 30 some events over the course of the year in SF. A gym will have practices, games and PE as well the the potential of a few new Saturday tournaments. It should be interesting if the voters are willing to fund either project.

  8. caheidelberger Post author | 2011.10.25

    ...so why is Heartland touting its big donation to the Sioux Falls campaign but not yet shouting about Madison's new gym?

  9. caheidelberger Post author | 2011.10.25

    Michael dare you suggest that Russell Olson and Mike McDowell's tossing of other people's dollars is more about self-interest than effective policy?

  10. Michael Black 2011.10.25

    Heartland is doing a good job of promoting their contributions...just like any business, charity, non profit or politician would do. It doesn't make it wrong. It's all about marketing...everything in this world is.

  11. Charlie Johnson 2011.10.25

    When we speak of heartland, of who do we speak? Easy to do PR and spend time doing it, when it's other people's money-namely the rate payers.

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