Duplin Commissioner David Fussell continues to express his concerns over the lack of profit produced from the Duplin Events Center.
The Duplin County Board of Commissioners’ advertisement of a Request for Proposal (RFP) for the Duplin Events Center produces concerns from the Compass/VenuWorks, the company that now operates the center, and Events Center advisory board. Although the contract between the commissioners and VenuWorks technically does not end until June 30, 2010 after beginning July 1, 2005 to last five years, the county may end its affiliation with the company any time after the conclusion of three years. Commissioner David Fussell has become very adamant in regards to the proposed expense VenuWorks asked for in their budget. The 2009-10 county budget has an operational budget of $313,925 designated as in past years. Steven Peterson president of VenuWorks was present at the commissioners meeting on Monday, Aug. 17, to answer questions that had been posed mainly by Fussell regarding the Events Center.
Peterson stated, “We have been here to see the development of this adventure from its inception and we are pleased with the program. I feel there may have been some misunderstanding of the expectations of such a venture. Some expectations are not realistic. When the expectations are realistic, the results will be realistic; but with unrealistic expectations you get results that are not what you think they should have been. I hate to be the bearer of bad news but the truth is that a venue of the size of the one here in Duplin County may never make money. This is true of every center throughout the country of similar size facilities.”
The VenuWork’s president also stated that this was also true in all of the centers around the country, adding that many are now empty as a result of not producing money. “We feel that the expectations for your facility will continue to need to be subsidized by the county and with continued growth that subsidy can be reduced to possibly around $200,000 annually,” explained Peterson. He continued to share what his company feels should be considered in the expectations for the Events Center. “The income coming from the Events Center should include the money coming from the booked events and activities held there, but one must also look at the whole picture.” Peterson’s whole picture includes the revenues raised through travel by those attending the events such as gasoline for the transportation, the restaurants serving food, motels providing lodging for those wanting to stay overnight, and retail sales as those coming to the events shop and spend their dollars locally. Concerns raised by Peterson that would help to make the Events Center more successful would be, increased visibility of the facilities and presenting the facilities in a more positive light which would help to develop trust between the center and its offerings with the citizens of the county.”
The company president further stated, “I would like for everyone here to understand that we have invested in this venture too. We have lost money as well, but we have been able to develop relationships with booking agencies to bring in bigger and better entertainment and entertainers. I too am not aware of another facility the size of this one that is able to support three full-time staff members. These staff members stand on our shoulders acting as encyclopedias to enable to be more efficient in their jobs. The question is ‘Are you going to keep the Events Center?’ I do not want to be the bearer of bad news, as I said, but neither do I want to give you unrealistic expectations.”
At this point Fussell spoke up to ask additional questions of Peterson, some relating to the current contract between the county in VenuWorks while also citing the current economic situation as a big part of his concern in regards to the Events Center not making money for breaking even for that matter. “It is our fiduciary obligation to see that the taxpayers of this county money is spent correctly.”
“We have attempted to be as accountable and transparent as possible and have provided documentation of the centers finances. Your facility is in the middle of the more modest facilities we have,” said Peterson. VenuWorks currently manages 28 separate facilities across the country. “We meet annually to develop goals each year for the facility and work on the budget. Are we meeting our goals here? Yes, we are if you only look at the goals buts as for my personal goals it may not be as good.”
Board chairman Cary Turner then asked if the goals for the center had been shared with everyone involved. “I would like to see the established goals that have been set in the past. To my knowledge I have never seen the goals that have been set and would like to see them.”
Duplin Events Center director John Vogt spoke up to state, “We meet each year with our board to develop our goals and developing our budget. We also review our progress toward meeting our goals at each of our meetings.” Vogt added that monthly progress reports are done for the Events Center board and he would see that the commissioners received copies of the goals and updates. “Most people in the county,” added the director, “don’t see the money that the center generates for the county. We need to gain the commitment of this board to promote the center rather than speak so often with negative tones. As our attractions grow so will the money coming in, not only from Duplin County but from other areas. When we look at the overall concept of events centers it is evident that very few of them make enough money to be self sufficient. But our center is good for the community, good for the economy and good for people. In actuality only one-half of one percent of the county budget is used to subsidize the Events Center.”
Vogt noted that he feels the center is bringing in more that the $313,925 amount in the budget through additional revenues coming from the event attendees putting money into the local economy buying gas, food, shopping and lodging.
The RFP sent out by the commissioners states that Duplin County is soliciting proposals from qualified management firms for the management and operation of the county owned Duplin County Events Center located in Kenansville. Management services included but not limited to: planning, organizing, booking, directing, promoting, marketing, financial management, box office operation, minor facility maintenance, concessions, alcohol service, security, cleaning, labor and other services customarily provided under such management agreements. Facility specifications are listed along with the county’s goals for the center. The RFP gives specific guidelines for what is requested from the firms as to what experience the may have, what services they must provide and plan to provide with a detailed plan of how the overall operation of the center will be conducted by them. Proposal from all interested firms must be received by the county no later than 5 p.m., Thursday, Sept. 3, 2009. The county is scheduled to review and select firms to be interviewed by Wednesday, Sept. 16 with those firms appearing before the Events Center Advisory Board on Wednesday, Sept. 30. The advisory board will them make a recommendation to the commissioners on Monday, Oct. 19, 2009.
Chairman of the Events Center Advisory Board Stephen Williamson, stood to address the commissioners urging them to allow the advisory board do what is supposed to do. “We would like to see this board and our board committed to insure that the Events Center is successful. As a board we do not feel we have been utilized in decisions made by the commissioners concerning the Events Center and for that reason we wish to present a resolution.” Williamson then read the advisory board’s resolution stating the Duplin County Events Center Advisory Board is duly appointed by the commissioners and charged with advising and making recommendation to Events Center management and the commissioners regarding the operations of the Events Center and in that regard, the unanimously agreed to asked the Duplin County Board of Commissioners not seek the RFP and that they both individually and as a body, desist from portraying the Events Center as a county liability; and instead join with the advisory board in promoting the Events Center as the cultural and community asset it is, and economic asset to the county it can become.
Commissioner Zettie Williams moved to accept the advisory board’s recommendation and commissioner Frances Parks seconded the motion. Williams stated, “Enough has been said about the Events Center. Its a baby and we get to continue to take care of it so that it will become a positive feature of our county. We need to be more positive in what we say about it so our residents can use it and enjoy it. We may not see it make money in itself, but the facility offers so much for businesses and families within and outside the county to use it.” Parks then commented saying, “We keep saying and acknowledging that Duplin County is No. 1 in agriculture as we continue to flip-flop with Sampson County for the top spot. I do not judge success in dollars. One of the most dignified graduations I have ever seen was this spring as James Sprunt Community College held its ceremony in the center. Several of the high schools use it in an attempt to prevent drug and alcohol abuse by young people attending proms and graduations. It (the Events Center) is worth the cost seeing the utilization of the center by these groups. We need to stay positive.”
Commission chairman Cary Turner commented that he could not argue that improvements had been made while VenuWorks has managed the facilities but he could not support the resolution of the advisory board because it limits the bid process and does not allow for other firms to submit proposals. “There may be another company that is a better fit for us. It may well be VenuWorks, but I feel we should seek all interested companies and see what is out there and which will best serve the county.”
Williams responded expressing her concern that (the commissioners) were not giving the advisory board the respect they deserve and adding that the board had been overlooked in many of the decisions made by the commissioners.
Parks then remarked, “Look at the last three years with VenuWorks. They had to start with nothing and it took them a little time to discover exactly how to move ahead. If we go with a new company then they too will have to start at the ground floor.”
Fussell continued his concern with the amount of tax dollars the county is having to subsidize the center and could not support the resolution either.
Commissioner Reginald Wells did not arrive at the meeting for the discussion and commissioner Harold Raynor was again in attendance via the telephone due to recent surgery and when the question was called the resolution was defeated by the vote of 3-2.
The commissioners informed the county manager to continue with the RFP as previously approved by them.
In speaking with several citizens of Duplin County outside the board room, several individuals have expressed their concern about a possible conflict of interest for commissioner Fussell as he is on the board of business within Duplin County that is expanding its services. Some of those services will be to provide events that may directly compete with those of the Events Center and therefore they see it as a conflict of interest.
Fussell in response to whether he feels he has a conflict of interest said, “Duplin Winery is the number one tourist attraction in Duplin County with approximately 100,000 visitors last year. No business in our area would benefit any more from increase visitation to our area than Duplin Winery. We like folks to visit Duplin County. If new folks visit our area, just maybe they will visit Duplin Winery. Duplin sponsors dinner shows, festivals, special tours, the Bistro Restaurant, and other activities to attract people to our area. Every guest to the Duplin Event Center, to Duplin County is a potential opportunity for Duplin Winery to expose Duplin Wines in a positive setting equals we love people. I want the Event Center to be a great success. There is no conflict of interest; however, as a Duplin County Commissioner, I am most aware of the fiduciary responsibility entrusted to me. I would like for the Duplin County Event Center to be use more, become more profitable and a less of a tax burden to the citizens of Duplin County. The operating loss of the Duplin County Event Center not counting debt service and interest over the past years are as follows: (according to information shared by Fussell), FY 2005-2006 loss $658,176; 2006-2007 loss $ 270,655; 2007-2008 loss $ 385,824; 2008-2009 loss $300,887; 2009-2010 projected loss $ 313,925. These losses take money away from public safety, education, health and other important services needed in Duplin County. These losses are unacceptable. The folks you spoke to who say that I have a conflict of interest in regards to the Duplin County Event Center are sadly misinformed and are trying to mislead the citizens of Duplin County by covering up the facts and assigning blame away so our citizens do not look at the ‘Bottom Line’ Thank you for the opportunity to respond.”
To contact Billy Todd, call 910-592-8137 ext. 117 or e-mail sigeneral@myclintonnc.com.
Post a Comment
