The Alerus

[sultan]

I was just curious how the Alerus figures their profit in comparison to the Fargodome. Over on Bisonville someone is questioning how the Fargodome comes up with their bottom line on how their facility is doing. They are wondering if it is doing as well as they say. If there is someone out there that knows something about accounting procedures or practices please inform us as to how the Alerus is actually doing in comparison the Fargodome.

[SiouxMD]

I was just curious how the Alerus figures their profit in comparison to the Fargodome. Over on Bisonville someone is questioning how the Fargodome comes up with their bottom line on how their facility is doing. They are wondering if it is doing as well as they say. If there is someone out there that knows something about accounting procedures or practices please inform us as to how the Alerus is actually doing in comparison the Fargodome.

[url="http://www.in-forum.com/articles/index.cfm?id=115360

[dakotadan]

Alerus Center Video

This is a video from the Alerus Center website. I just thought it was kind of neat. It talks about the impact that the Al has on the Greater Grand Forks community.

[jimdahl]

A favorite topic of Sioux detractors:

Alerus Center: Council hears budget; officials project deficit

As before, commission chairman Randy Newman named two major factors for the anticipated $141,000 loss: the 155 percent increase in electric rates and the inability of the center to perform at a "higher level."

Instead, commissioners took a defensive stance, reminding the council members, Hal Gershman and Curt Kreun, that the old Civic Auditorium used to lose in the neighborhood of $240,000 a year. Commissioners also noted that a recent economic impact study conducted by UND shows the center brought $12.6 million in new economic activities to the city.

As part of the university's shift to Division 1, school officials are asking for a host of improvements to the center that, at last estimate, cost $400,000.

But that's just a short-term fix, which, in this case, means 15 to 20 years. In the long-term, though, UND wants to increase football attendance significantly, somewhere in the 30,000 to 40,000 range for important games, according to commissioner Phil Harmeson, who also is senior associate to the university president.

It's nice to see the Alerus defending its economic impact -- the notion that an events center needs to independently run in the black is a little silly. The whole point of such a thing is to generate economic impact in the city (which is then taxed, which pays the budget "shortfall").

Also nice to see some long-term thinking out of UND on the athletics front. Though the increased attendance goals will undoubtedly draw some criticism, it won't happen if you don't try and when long-term means 30 years and when "important games" could mean a I-A foe instead of Minn.-Crookston, who knows. (See Football may need bigger arena thread in football forum, where this aspect is already being discussed).

[Local Boy]

Don't fall for the Alerus commission's spin. The place is in big trouble. The coming year's operating loss will be in the 300-400K range (at least). Also, The Alerus counts their tax contribution as "revenues". That amount is 400K. That's a 700K-800K annual operating loss that doesn't account for any debt service or depreciation. Also, $880K of their revenues is suite and advertising revenue. The anticipation is, after the current contracts expire, many will not renew. No events = no benefit to suite ownership. No events = no benefit to advertising at the property. This issue will greatly increase the Alerus' operating loss in the future.

The economic impact is also very false. There are very few events that draw from out of town. Maybe year one, and two, there were. There are VERY few now. It's also a very sad fact that The Alerus boasts about their increasing banquet sales. The Alerus was sold to the community to be a regional draw. Sadly, all the menus, and pricing, have been dummied-down to attract a local clientele. The center is now in direct competition with local businesses. By the way, the labor costs at The Alerus are well over 50%.

This will probably be the year that the wheels really come off with the community and the commission. The citizenry of G.F. have become very apathetic towards community leaders and have virtually tuned out. Voter turnout in the last elections was less than 10%. The Fritz always had the support of the community. Citizens would support national, and international acts, even if they were unknown artists; to support a great venue. The Alerus doesn't enjoy this benefit. The coming catering conundrum with The Canad will prove to be another massive issue in the future. The emerging Grand Forks blogoshere has many more facts about this money pit. Check it out. An informed citizen has put the true annual cost of The Alerus at about $7,000,000 when you factor in the operationg loss, tax contribution, depreciation, and interest on the bonds.

Not good.

[jimdahl]

Don't fall for the Alerus commission's spin.

Oh, I've always independently believed that the point of a convention center is not to generate a profit through its operations, but to spur economic activity. I'm just happy to see it in G.F. newsprint, as I think it is shared by most city leaders throughout the country. That North Dakotans expect their convention centers to operate in the black, I think, demonstrates a significant risk aversion.

There are very few events that draw from out of town. Maybe year one, and two, there were. There are VERY few now.

No doubt that the decline in the small market concert industry is a huge problem; unfortunately it's somewhat outside the Alerus' control. Given that externality, what should they do?

It's also a very sad fact that The Alerus boasts about their increasing banquet sales.

This is one of the things they chose to do -- pursuing other opportunities to leverage their infrastructure to generate revenue. It's a logical response for an organization that the public demands run itself like a for-profit business. I would prefer the public be more willing to accept the "losses" so the Alerus didn't have to compete in such peripheral markets, but that would draw even more local criticism.

Criticizing known and admitted problems is easy. Here's a more interesting one (open to all) -- what should the Alerus do that would earn your praise as a good move (given that it exists and given its somewhat immutable operating environment).

[GF_siouxfan]

Alerus Center Video

This is a video from the Alerus Center website. I just thought it was kind of neat. It talks about the impact that the Al has on the Greater Grand Forks community.

this vid is long im half way threw

[GF_siouxfan]

that video is better than all of my science videos in school put together