OUR VIEW: Funding the State Theatre a long-term gain for town
Published: November 2, 2009
Updated: November 2, 2009
» If committing $1.5 million in financial backing is what it takes to get the project rolling, go for it.
Few local issues in recent years have generated as much passion as the State Theatre Foundation’s request to secure renovation funds from the town of Culpeper.
The plan calls for the town to guarantee $1.5 million in bonds, an amount needed in addition to the $8.1 million already pledged by private sources, to complete the project as it was initially drawn up.
Is such a large financial arrangement between a town and nonprofit entity rare here? Absolutely, but it happens in other localities all the time in an effort to stimulate growth and the local economy. A similar package helped build The Paramount Theater in Charlottesville. Look what kind of events and acts it attracts.
If all goes according to plan, the State Theatre should be an economic engine for the town. So in the long run, the town would be making an investment in growth, its tax base and the future. It is estimated that every dollar spent at the theater will bring $7 more downtown. The debt service on the funding is projected to be more than met by what the State Theatre returns.
The ironic thing is that with cost projections being what they are, the town’s money likely won’t be needed. It was supposed to cost $10 million to complete the transformation, and it will probably come out with a tag of no more than $7.5 million. So the entire issue could be a moot point.
While we understand the pleas of those who don’t want to commit money to this project, at the end of the day, it will probably be worth it.
That said, are there reasons for concern and questions? You bet. The devil is in the details, and Town Council must draw up some sturdy legal documents before making a decision.
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By the Star Exponent’s own admission, almost 70% of the folks surveyed voted against the wasteful expenditure of our hard earned tax dollars. Nonetheless the Star Exponent considers the project to be worthy of our money. Does anyone else on this site see the lack of logic in the today’s editorial?
This is nothing more than a giveaway of our tax dollars to a few well connected townspeople. Where are the handouts for the town, county and school employees that have received no raises the past two years? Where is the help for all of our food banks and the Free Clinic?
If the town has so much of our money just sitting around to be handed over to entities that have no track record of profitability, no disclosure of their books, and no business or marketing plan; how about a one year moratorium on all of our property taxes? We paid it in; we should be the ones getting a break.
This is a colossal boondoggle that will never turn a profit.
I admit I’m not great at math, so please help me out here…
(1) Private sources have pledged $8.1 million.
(2) The cost projections show the transformation will probably cost no more than $7.5 million.
(3) The public is being asked to kick in $1.5 million.
(4) Huh??
If funding this project is expected to produce $7 for every $1 dollar expended, why aren’t commercial lending institutions fighting over the chance to lend money to the project?
And finally: The CSE takes a firm stand by saying funding the project ‘will probably be worth it.‘ What a ringing endorsement. I’m sold! Take my tax dollars, please!
So, the sky is not falling and it’s not a done deal. It’s worth a long, hard look before a decision is made either way.
This is a request for a donation, nothing more. There is no business plan and never has been. Maybe Media General could donate the amount. Do you you yhink the shareholders would mind? The taxpayers sure do. This is a nice idea and in a good economy might make sense, but with people losing jobs, pay raises for town employees non exsistent and tax revenue dropping, this is not the time.
CSE writes: “ it will probably be worth it”.
Not exactly a ringing endorsement.
To even have a chance for success then the buisness plan should be recalculated to what is really needed. To ask for $1,500,000.00 and not need the money I am sure thats a smart investment.
I can point to another endeavor in Florida no less that is the same issue and even with 50 years of historic concerts, and other art projects the community is letting it go by because the cost is prohibitive.
The food closet is putting together over 700 dinners(that’s a record folks)for Thanksgiving. I think the money could be better spent right here at home. I just returned from an overseas trip to Asia, if you think we are out of this mess, think again.
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