Downtowners, we need to get a grip

I'm afraid however we've reached a point where perception is reality. If the sheeple think that downtown has parking and traffic issues, then downtown has parking and traffic issues. These are the same folks who would gladly tear up majestic green space to connect 22nd, 26th, or 33rd street Louise to Kiwanis. These are the same folks who always speak in a condescending manner when it comes to speakers at a private college, and who demonize the educated and the wealthy. I'm all for being financially prudent. It's a balancing act between lower up front cost versus payback. Correctly termed return on investment.

Billings, MT has a 12,000 seat arena owned by the county. This arena is out at their fairgrounds, near the interstate, nowhere near downtown. They estimate it adds $100 MILLION back into the local economy by visitors from outside the county. This number is reached with a whopping 25-40 usage dates a year. Our current arena, half the size of the Rimrock Arena in Billings, sees about 150 usage dates a year. So, assuming economies of scale, half the $100 million, then triple that for our use dates, and we’re looking at $150 MILLION DOLLARS annually added back to the Sioux Falls economy from those outside of Minnehaha County.

Now, if we’re able to add to the payback ratio based on a downtown location significant enough to offset increased construction costs and an extended timeline, taking into account a limited amount of ancillary events since the convention center is where it is, then we should indeed build it downtown, I’d love to see it there myself personally. But, if we are simply able to operate a facility at a break-even point financially, and pump $200 MILLION annually back into the local economy (most arenas actually turn a profit the first few years they’re open) that’s win-win. Mayor Huthers plan would indeed recoup construction costs over the first few years of existence. If you’re adding 2 years and perhaps 50% to the price tag, I’m not convinced anymore that the increased return would be on scale with the initial investment. It wouldn’t be pretty, certainly not cool, and a cold walk from parking at the Legion, but it would get built unless the “downtown or nowhere” people come to their senses and realize we’re about out of shots to get this thing built at all.