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Friday, February 20, 2009

Information Short On Details With Hockey Plan

After almost three weeks of quiet, the Janesville Gazette finally posted an “update” last Saturday about the business contract between the Janesville city manager and a group of investors requesting special consideration to bring a Junior A hockey team to the city.
Individual Excerpt:
Janesville's city manager has reworked some numbers and renegotiated a contract with Wisconsin Hockey Partners, and the results show the city could collect $14,000 to $20,000 in net annual revenue if a junior A hockey team locates here.
At least the article did confirm earlier suspicions that before this contract was so-called “reworked,” the Janesville administration had the taxpayers on the hook for the private investors game time security.

There are different ways to look at this net annual revenue if looking for additional clarity. It does appear the team will pay $4,200 a year to rent the new lockers and additional space that the taxpayer’s $229,000 improved. A whopping $350 a month. At that pace, it would take 54 years just to pay back the remodeling investment, and that's without interest.

But the administration isn't looking to have the remodel cost paid back because they view this expense not as a handout for the hockey team, but as an improvement of a city asset. Which could lead one to assume that IF the hockey negotiations fell apart - the city would still spend the $229,000 to improve the arena because after all - they're not doing it for the hockey team. Don't bet on it.

What happens in a few years if the ice arena needs a new roof or a heating or cooling system? Janesville taxpayers have been down this road before with the city dump expansion where the private user’s tipping fees barely covers for an extra roll of toilet paper. Some business model, heh?

At this pace, the city would be better off just giving the private hockey investors a $229,000 forgivable loan towards building their own new hockey facility. This way the team would be responsible for their own debt and destiny, liability insurance, heating, cooling, utility bills, snow plowing and all the other daily maintenance and hardware necessary to have an indoor ice rink. Janesville could collect $50,000 or more in annual property taxes alone on such a facility, as long as they don't give that away with a TIF. No complicated contracts, no headaches and no BS.

On Tuesday, the Gazette posted another article pitching the hockey team. Title said, “Junior hockey would boost high school enrollment.” But the better half of the story said,”Junior hockey schedule would disrupt high schools.”

Probably the worst part is that taxpayers have to rely on a newspaper to disseminate information we should instead be receiving directly from the city's web site. In this era of digital connectivity and open government, there is no excuse why the proposed contract or at least its key elements are not available on the web. A little voice in my head keeps telling me,"Psst, but that's just the way they want it."

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