Dear Commissioners:
Last Fall each of you were in full support of the steps taken to defease the bonds attributable to the Pensacola Civic Center.
This bold and historic action was taken with a clear and unequivocal intent to free up additional tourism development taxes to further support our tourism marketing and promotion efforts in the worst economy in the history of our great country.
I write to question whether you have lost your commitment to our tourism efforts and the entire tourism industry in light of support to return hockey to the Pensacola Civic Center.
First, of the overall tourist development tax monies made available by the defease of the Civic Center bonds, more than $350,000 went immediately to further subsidize the current operations of the Civic Center because of its performance struggles.
Your efforts to bring hockey back to the Civic Center will totally consume all of the remaining tourist development tax monies that were made available by the defease of the Civic Center bonds for the foreseeable future.
I understand the Civic Center operates approximately $500,000 better without hockey. Unfortunately, this computation does not include more than an approximate $4.5 million of depreciation in the value of the building which has occurred over the years.
Your current proposal to return hockey to the Civic Center will cost approximately $275,000 in needed capital improvements made necessary solely because of hockey. These are capital improvements that are not otherwise needed at this time.
In addition, the operational losses to be incurred during the hockey season are estimated to be approximately $300,000 annually based upon average crowd attendance of 2000 persons per game.
It will take an average attendance of just under 7,000 persons per game, per season, for the Civic Center to financially break-even with hockey being played.
The average tourist development tax subsidy per person attending any event at the Civic Center was $2.81 during the 2006-2007 fiscal year. In February 2009, the same subsidy per person exploded to $5.83 person. You are paying $5.83 of taxpayer dollars for each person that enters the Civic Center for any event or meeting.
SMG, the manager of the Civic Center, has told you of the financial disaster which will occur if hockey returns to the Civic Center. Your staff has confirmed and informed you of the pending financial disaster.
In June 2008, the tourism industry requested that an advisory committee be established to assist in the review the operations and future of the Civic Center. This proposal has been warmly received by all parties. You need to take action on this item.
As always, I am available to further discuss this issue with you at your convenience.
Sincerely,
John A. Panyko,
Chairman – Tourism Administration and Convention Committee
