Scenario
You have recently been hired by a mid-level city to be the managing director of the region’s existing public assembly venues. There is currently a 30-year-old arena with a seating capacity of approximately 6,000, a small convention center with limited amenities and only 50,000 ft2 of exhibit space with 10 meeting rooms, and a city-owned parcel of land encompassing nearly 250 acres that is being used only once or twice a year for a county fair and a recreational vehicle show.
Your new employer has asked you to investigate what would be the best avenue for the city to take in order to use some funding received as a gift from a recently deceased long-time resident. This citizen had always supported most civic endeavors, but no one realized that this person would leave the city an endowment that could generate 1 million dollars annually.
The city’s population has increased steadily for the past 10 years and is currently estimated at 200,000 residents. All indications are that the population will continue to increase, and a local tech company has added several hundred new jobs with salaries at or above $50,000 each. Suitable housing options are limited, so the local construction businesses are experiencing strong activity.
The local college has a strong sports program, but all of their facilities are older and smaller and they have been talking about what they could do for their football, basketball, and soccer programs. They have been promised some state funding, but not enough to cover the expected costs of new facilities. These programs attract a steady flow of loyal fans and tend to fill most available hotel and motel rooms around event days.
While by no means a wealthy city, they have been able to provide basic services and keep the local taxes at reasonable levels. A majority of citizens desire new venue options, even if their taxes were to increase by an acceptable amount.
Assignment
Looking at the history of public assembly venue development and options generally available, what are reasonable suggestions you could make to your new employer on possibilities for public assembly venues, what might work best, what might satisfy the most citizens, and how might the cost of new venues be financed with creating an unrealistic debt for the city?
1. What type of venues might work best in this situation and why?
2. How could the most people be served by these options and how?
3. How much money could be invested without putting a burden on city finances?