Articles like this drive me crazy--although the facts were stated correctly, the Palm Beach Post failed to mention the reasons for our financial loss for the first year of operations at our Casino. This failure of explanation was either not provided to the reporter by the city or Mr. Kleinberg did not include it. Either way, it is a disservice to the residents here.
- The casino and some of the merchants were not operating for the entire first year of operations thus rents were down and less than anticipated. A few were still building out their spaces when the building opened such as the Lake Worth Tee Shirt company, a company that was jerked around by city politics and finally got an approved contract much later than the other merchants.
- The expenses were more than projected. This was a brand new operation and any finance director uses his best judgment based on studies and evaluations. The city did not want to over-charge the merchants (Their success is our success) for the costs at the Casino. It is not uncommon to incur a loss in the first year of a business of this type as there was no other business comparison. Expenses often run higher than estimations.
Benny's: $26,330.51
BF Enterprises: $12,978.70
Mama Mias: $12,824.65
Maxplan enterprises (Kilwins): $12,824,65
Shore Restaurants of Lake Worth (Mulligans): $48,159.84
City Manager, Michael Bornstein is correct when he says, "It's a park, I don't think you will ever see revenues pouring in...and while it is great if it made money, it doesn't necessarily have to." The goal of the city is to have this building self-sustainable and not gouge the merchants. The city will make up the revenue on parking, ballroom and other events.
After one year, I think staff is doing a good job maintaining our beach park. Now if they could only keep Fido off of it.
Merchants at our beach have to know that cold and rain don't bring people to the beach. We have had a lot of that through the Winter and Fall. The city has bent over backwards giving them extended hours and to sell liquor. It is up to them to market their business,
ReplyDeleteIt also didn't mention that the supposed cost-override of $2 mil was for infrastructure that was budgeted in the CIP. Local politicians, such as Scott Maxwell, like to use this against the project.
ReplyDeleteI thought the article was not accurate. As I recall, all of the projections reflected a $400k shortfall in the first two years, and I don't think pool operations were included in that. It was strictly the commercial operation. And it didn't take into consideration that the upstairs would be tenant-less. Why is everyone so shocked?
ReplyDeleteThat said, every time I go to the beach the casino is packed, night & day, weekday or weekend. All the tables are full, including the pizza place. Which doesn't look anything like the way they said it would look. It just looks like a pizza counter. I've spoken to merchants and they've told me business is fantastic. Seems to be a bit of a disconnect. Of course, we had a lot of rain this winter, and I'm sure that has had some impact on parking revenue.
The Casino/beach park is wonderful. We are there every other week, and find it busy, the parking lot full, the merchants busy, etc. Perhaps it is less busy during the week? I think we should charge more for the ball room (to non-residents).
ReplyDeleteThe losses at the pool should not be attributed to the Casino and frankly the City's mismanagement of the pool is the fault of the City. I'd like to know how much revenue the Wimbley Gym is bringing in.
Pool could be so much more of an asset. REC DIR needs to get off his bottom and put his brain to work. Terry has lots of great ideas.83523552
ReplyDeleteParking lot was totally full at 430 today. Businesses were buzzing.
ReplyDeleteReporter focussed on bleeding. "If it bleeds, it leads"
I happen to drive by the beach today and you all are pretty much right. Where there used to be a long line to get into John G's, there is now a long line at each of our parking kiosks. The existing Ballroom is booked solidly for weddings and meetings. Why couldn't we make some minor changes to the other restaurant space upstairs and rent is out for weddings and meetings since we can't find a tenant right now. If someone comes along, we could let them take it then.
ReplyDeleteI seem to remember a best case, worse case and what we think will happen scenario being presented. If those figures are correct, I think we surpassed our worse case scenario. But Laurel is right, things might improve with full year rents and maybe we can teach the whole world how to operate those confounded parking meter machines.
I have my stickers and I wouldn't even stand in line for John G's, one of the best restaurants in the county. How many people will return to the joke of a system that requires you to wait in line for 10 to 15 minutes just so you can walk back to your vehicle then join you family on the sand or in a restaurant? I'd find another beach.
The author and readers of this blog including laurel seem to spend a lot of time defending a multitude of mistakes the "best commission ever" and "best city manager ever" made. Why is that?
ReplyDeleteWhat mistakes?
ReplyDeleteThe only one that affects our city that I can think of was NOT taking back the CRA.