Tuesday, April 26, 2011

Guest Blog by BID Executive Dave Syverson - Naming Rights Study

Why does the mayor want to spend $65K on a naming rights study at this time when much of this data is readily available online? Take a look at the link below:

Or,  how about we simply order the book from Amazon and save $65,000:

Also, how is this firm going to determine in the next 45 days what the naming rights will be worth at the time they are sold? Here’s a breakdown of some other facilities comparing when they broke ground, when they opened and when the naming rights deal was announced:

Facility:  Qwest-Omaha

Broke Ground: 2001
Opened: 2003
Cost: $291 million
Naming Rights Amount/Announced: $14 million/Aug. 2003
% of Cost: 4.8%

Facility: Wells Fargo-Des Moines
Broke Ground: 2002
Opened: 2005
Cost: $99 Million
Naming Rights Amount/Announced: $11.5 Million/July 2005
% of Cost: 11.6%

Facility: Intrust-Wichita
Broke Ground: 2007
Opened: 2010
Cost: $205 Million
Naming Rights Amount/Announced: $8.75 Million/January 2008
% of Cost: 4.2%

Facility: Sanford EC-Bemidji
Broke Ground: 2007
Opened: 2010
Cost: $35 Million
Naming Rights Amount/Announced:  $2 Million/October 2010
% of Cost: 5.7%

Facility: Tyson-Sioux City

Broke Ground: 2001
Opened: 2003
Cost: $57 Million
Naming Rights Amount/Announced: $4 Million/October 2001
% of Cost: 7%

Notice how none of these centers are even close to the $24.5 million (25%) that the Mayor is counting on to raise privately. Also, note that the Superlative Group held out Intrust in Wichita as an example of their success, Intrust was built downtown as part of the larger plan to push economic development.

Here’s the Mayor of Wichita’s take: 
“The best cities across America understand that your downtown brands your community, for better or for worse. Cities with revitalized downtowns have a better chance of recruiting new business’ and attracting new jobs — thereby expanding the property tax base and generating more sales tax”. - Mayor Carl Brewer, Wichita, KS

Dave Syverson
Build It Downtown

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