10/11/12
Two weeks ago, at the end of the council meeting, the Finance Director made an offhand comment about some financial difficulties in the South Shore Center vs. the budget and that the budget was never adjusted to reflect the additional cost of the new contract Lizee and friends gave to center director Kristi Anderson at the beginning of the year.
The Insider noted that council did not comment then on the Finance Director's report.
On Monday night, Ms. Anderson appeared to report on the Center. The Insider expected Ms. Anderson to at least mention the financial issue and possibly comment on how she was addressing it. Instead, the report was about how great Oktoberfest was, that it looked like it paid for itself and how much great publicity a local magazine gave it by putting Ms. Anderson on the cover. You can watch Ms. Anderson's performance at: http://lmcc.granicus.com/MediaPlayer.php?publish_id=712 and agenda item 6A.
Two observations:
First, the report Monday night seemed nothing more than a way for Ms. Anderson to get TV time supporting her run for Orono council and the magazine cover with Ms. Anderson's picture served more to promote her than the Center.
Second and more troubling is the following analysis of the Center's finances.
Through August, revenue was $39,656 and expenses were $85,347. This is about 50% of total year budgeted revenue, but 90% of total budgeted expense. If one does a simple forecast, one concludes that, unless a miracle happens, the Center could lose over $50,000 against a budget that has it breaking even.
So who's watching the store? Apparently since former Administrator Heck left in March, nobody. Maybe this is by plan since the Insider recalls several times that Zerby said he wanted to eliminate any separate financial reporting for the Center calling it just another park.
The big questions are, here in mid-October, can the situation be saved? and if not, how do Lizee, Zerby and friends plan on covering up a $50,000 hole?
Happy Reading!
The Insider
Choices as I see them:
ReplyDeleteOne, sell it. Although I do not know who would want it, it needs a lot of work to make it competitive as a small banquet hall or a conference center. I have attended several things there and its not really that nice in my opinion. And its small.
Two, write a business plan and run it like a business, which it is. Do a 2 year plan with quantifiable goals and objectives and a cash flow plan, review it at the end of 2 years and then act. Some of our council people are successful business people. Why haven't they stumbled on this idea?
And for God's sake, tie the director's compensation to performance. The Center's performance, not the director's. I am tired of reading that the director is paid as much again as the annual operating budget. Insider, please correct my figures, I read it here.
Finally, where does the Park Commission stand on this discussion? Did the Insider not just mention recently in a post that their coffers are on the verge of empty?
A lot of us would like to see some trails in this city, then add in the dough we are throwing at AIS. We can't do it all.
Did anyone see the clip of the Roosevelt speech at the end of Jon Stewart's show the other night? Insider, dig that up and post the link. Stewart's daily "Moment of Zen" was very sobering.
Anonymous put some very wise business advice in the above post. Council would be smart to take heed, or they could pay a consultant $10k for the same advice.
DeleteThis was built to be a 'senior' center - that plan failed. It was morphed into a 'community' center, it continues to fail. Obviously the 'greater community' doesn't feel it is as big an asset as the Shorewood Council does. And, if the 'sister cities' thought it was an asset they'd contribute to it - they don't. I don't think there is a business plan that can justify keeping this 'jewel' for another 2-years if it's solely subsidized by Shorewood.
ReplyDeleteAgreed. We might be stuck with this thing thus I think it is good to have this discussion.
ReplyDeleteThe Legion at one time tossed around the idea of buying it but there is inadequate parking for any business establishment. That would hold true for almost anyone else that might consider it as well.
The whole senior thing is one of the issues that is holding it hostage. We have little housing in our area ("South Lake Minnetonka") to attract a critical mass of "seniors" in the old fashioned sense of the word, people who might have used it regularly. Yet we still feel beholden to the original group to keep running it primarily as such.
And it should be noted that communities that are investing in "senior housing" are also investing in walkability. And new "senior" developments are virtual resorts, eliminating the need for "senior centers" like this.
As a "community center" it fails. It has only 3 working rooms and is too small to have a gym. It has an inconsistent history of class offerings. It does not do anything to generate regular traffic for itself.
It does not offer a welcoming space for people of any age to come and hang out, for kids to get together and do homework after school, maybe even a space for tutors to work with their young clients. We have Caribou, Dunn Brothers and Starbucks for that.
You have to pay to use it so to call it a "community center" is to imply that anyone can come in and use it whenever they want, which is not true.
So who has an idea for this entity? I return to my original comment that we might be stuck with it. Lets hear some thoughts, commercial or community. But it has to break even.
Actually, not a bad idea to turn it into a community coffee house. Make coffee a buck a cup, keep it open until midnight, fill it with used furniture and provide wifi.
ReplyDeleteCater to high school kids. The police are only a block away.
It might be a winner.
Insider, your information about the center situation is relevant and timely. However, your attack on the contractor, who is hired and managed by the city council, is not.
ReplyDeleteLikewise the reach into what she does with her personal life is just plain petty.
Agreed. Theses potshots at Ms. Anderson are unnecessary. Ms. Anderson gave her report on Oktoberfest, acknowledged all the volunteers who made it possible - end of story. She stated she turned her invoices over to staff, so apparently she isn't in charge of providing the financial reports?
ReplyDeleteLet's put the blame where it is due - City Council disbanded their oversight committee for this operation, has set no quantifiable measurements for it, and doesn't care about the budget. No matter who you're casting your vote for in this local election, ask them how they are going to address this issue because status quo shouldn't be an option. Leadership matters.
Did anyone read this article?
ReplyDeletehttp://sailor.mnsun.com/2012/09/new-kind-of-working-environment-coming-to-excelsior-2/
Sounds like a low key operation - I'm sure there has to be other entrepreneurs out there that could buy and transform the Center into something that provides a service to the community.
For Zerby and others to claim it should be part of our Parks and Rec budget is troubling and fiscally irresponsible. Keep in mind we don't own the facility. It was a good experiment - but after 3-years, it's time to admit it isn't working and move on.
List it for sale? Woody Love could be the broker.
ReplyDelete