Tuesday, January 17, 2012

Super Bowl Costs FINALLY Beginning To Be Revealed

Thanks to all of my alert readers who have sent me links to news items reporting that some of the costs of the Super Bowl are FINALLY being revealed.  So, lets move forward here by listing our references and listing the costs now being reported.  To put it into perspective, the 2012 Super Bowl bid was submitted in April, 2008, and its terms are what are falling out into public view just 19 days before the event.

Articles of interest used for this blog entry in the order I received the links from alert readers:
Scott Olson, IBJ,  1-16-12 -- "CIB expects to lose money during Super Bowl"
Jon Murray, IndyStar, 1-17-12 -- "Super Bowl 2012 will drop Capital Improvement Board for a loss"
Mike Corbin, WIBC, 12-21-11 -- "Super Bowl Host Committee Releases Final Numbers"

Let's start with the last one and the claims of the Host Committee CEO, Mark Miles.

He claims that the "they've raised and are investing $154 million for some 250 housing units as part of the Super Bowl Legacy Project."  Well, as I recall, federal funds coming to the City were the bulk of the money being invested in the near eastside neighborhood.  Those funds were augmented by the NFL, but a clear accounting of the exact dollar amounts supplied by taxpayers but not credited to them has not been forthcoming.  From what I have heard, the lion's share of the investment comes from the taxpayer, not the host committee or the NFL, yet they are the ones getting nearly all the credit.

Also claimed is that the Host Committee "has also raised close to $27 million, surpassing the $25 million goal needed to host the 2012 Super Bowl."  No mention what that money was spent on.

And finally, this nugget: "Committee officials also say the city has fixed the Pan Am Garage which has been plagued by structural and water issues."  I recall news accounts of the Department of Code Enforcement closing parts of the underground garage at Pan Am Plaza until repairs could be made.  I thought that the garage was owned by someone other than the City and our MDC gave Pan Am Plaza to the Indiana Sports Corporation years ago now.  I certainly hope that the implication that the City paid to fix the garage and shore up the Plaza is erroneous.

The two stories on the costs and revenues of the CIB have overlapping figures.

The CIB will lose $810,000

$4 m to the City to pay for police overtime
$2 m for CIB employee overtime and temp hires
$794,000 paid to State to be applied toward stadium and convention center debt

$2.4 m hotel tax from visitors - not NFL employees
$440,000 food and beverage taxes - but none from LOS or ICC
$100,000 car rental tax - but none from NFL employees
(figures above are from IBJ and total $2.94 m - Star reports total estimate of $3.1 m from these taxes)
$4.1 m from NFL for labor costs due to Super Bowl events

hotel tax
restaurant tax
fuel tax
car rental tax
admissions tax
Star reports that "State lawmakers exempted the NFL and its affiliates from paying nearly all state and local taxes in connection with the Super Bowl".

The NFL will get the food and beverage tax revenue for concessions sold inside LOS and ICC, instead of that money flowing to the CIB.

between $150 m and $300 m in direct spending by visitors

NFL gets proceeds from parking lots owned and operated by State and Local government entities - the full extent of this agreement has not yet been divulged
DPW, DCE, IMPD, IFD real costs associated with events - IMPD already spent at least $500,000 in 2011 in preparations and the City already spent $600,000 to provide free Wi-Fi in the mile square
Income lost to taxpayers in City's Georgia Street giveaway to Indianapolis Downtown Inc., not to mention loss of that entire asset which just saw $12 m taxpayer renovation (bipartisan vote of Council, by the way)
Cost to Indy-Go for free bus service for visitors


Gary R. Welsh said...

Free bus service for Super Bowl visitors? I thought federal law wouldn't allow our public bus system to be used for sporting events like the Indianapolis 500. Why can it be used for the Super Bowl?

Had Enough Indy? said...

Gary - I don't know. Townies get the free rides, too. At least downtown.

From the IndyGo website --

Free Rides on local fixed route service (excluding the Green Line Express) and paratransit service (Open Door) from Thursday, February 2 through game day, Sunday February 5.


Cato said...

This is fascism. This is the direct marriage of governmental power to corporate need.

It's sadly nice to know I was right. I had been citing Robert Baade and Philip Porter in forums all across the city since 2007-08, but those who stood to benefit launched a successful disinformation campaign.

I'd love to see those who testified, under oath, before the city and state in various committees be tried for perjury.

This Super Bowl was an outright crime on the citizens of Indianapolis.

Anonymous said...

Cato, as much as it pains me to say this::::

You were correct on the Super Bowl

Anonymous said...

I believe bus service is being provided with corporate sponsorships and extra government funding.

During the week of the Super Bowl, Monarch Beverage and World Class Beer will be sponsoring free shuttle buses that will run between downtown, Fountain Square and Mass Ave taking visitors to bars, restaurants and stores along the route. On that bus will be advertising for our “Drink Local” campaign along with a Twitter hashtag, #IndianaBeer.


The Hancock County Visitors Bureau agreed to chip in $3,600 to fund the service.

The visitors bureau already is underwriting the $17,000 cost of bus service between Greenfield and downtown Indianapolis on Super Bowl weekend.


Anonymous said...

LA Newspaper Tells Readers To Stay Home

$399 for Super Bowl parking? And still a 20-minute walk?


Anonymous said...

Don't forget the city must pay for those hundreds of bagged parking meters caused by street closings.

"Some of the street closings begin a full 17 days before the February 5 Super Bowl date. Under Mayor Greg Ballard's 50-year lease agreement with ParkIndy, special event organizers are required to reimburse the private consortium that operates the parking meters for the revenues its loses out on because of street closures."


Had Enough Indy? said...

anon 2:26 - thanks for all of that detail. One clarification, when you refer to the Greenfield bus being funded by the 'visitor's bureau', which bureau would that be?

Had Enough Indy? said...

anon 2:40 - I want to say that the parking meter sale carved out an exception for the Super Bowl. I'll have to look through that agreement again, so it will take time to do so. Just wanted to put that out there, though.

Had Enough Indy? said...

anon 2:30 - maybe the Times can find a groupon deal for their readers. Thanks for the link.

Paul K. Ogden said...

HEI, I don't recall the Super Bowl exception to the parking meter contract, but you could be right. FYI, it is a searchable document so you can type "Super Bowl" in and do a search. Frankly though I'm not sure they have it on line anymore.

Had Enough Indy? said...

Thanks Paul. Search functions are great !

I couldn't find the agreement quickly on the City's website, but.. I had a copy that I dropped onto my hard drive (p153 of the pdf).

Super Bowl exceptions were written in. Here's the list of timing and locations:

39 days (mid jan to early feb) - all meters on streets directly surrounding LOS
10 days prior to Super Bowl - all meters on streets directly surrounding ICC, Georgia St between Capital & Pennsylvania, Meridian St between Monument Cr and South St, meters on block N, E & W of Monument Cr
3 days (Thurs - Sat before Super Bowl)- Zones 1 & 2 S of Michigan St
22 days (mid jan to early feb) - meters on streets surrounding accreditation center
18 days (late jan to early feb) - meters on streets surrounding media center, meters on streets surrounding team and nfl headquarter hotels.

Anonymous said...

Fox 59 is reporting that the NFL is actually reimbursing the city only $3.5 million instead of the $4.1 million the CIB is touting. Raising the the CIB's projected loss from $810,000 to $1.4 million.

It doesn't take much questioning to find that this event has been financially mismanaged from the very start.

Much like our $750 million white elephant gift to Jim Irsay.

I am starting to wonder if the true economic impact may be negative if this cold weather Superbowl (during a down economy) doesn't attract the projected 150,000 out-of-town visitors that CIB needs to get to a direct spending threshold of $150+ million.

The NFL shortfall comment is at end of the broadcast.



This public safety meeting also uncovered that security plans are still up in the air, two weeks before the event, and the police union wants overtime pay, while management is trying to keep cost down by adjusting shifts and eliminating vacation days.

Anonymous said...

Must check out this show that has a little fun with Indy hosting the Superbowl.

The Middle:

Frankie is deeply disappointed with her volunteer assignment at the Indiana-hosted Super Bowl.


Anonymous said...

The NFL has tentatively called a brief owners meeting for Feb. 2 in Indianapolis, three days before the Super Bowl to approve financing for the planned 49ers stadium, including providing up to $200 million in funding grants from the league.

Should Indianapolis feel like they got ripped off holding the bag on $750 million Lucas Oil Stadium with potential Superbowl hosting losses as a "reward"????

Heck, Irsay just got a NFL loan, not a grant.


Had Enough Indy? said...

anons 2:26, 2:30, 7:53, 12:00 - I'll by using your info and links on today's post. Thanks for contributing.

anon 9:08 - I happened to see that. I didn't realize they were set in Indy until that episode. She ended up managing the line waiting for the port-o-lets. Thought there would be enough rest rooms inside the building... but guess not !

Anonymous said...

ICVA Leader Says City Needs To Be Better at "Evaluating Business" and determine "How Aggressive We Want To Be With Incentives"

Video interview airing this weekend:


I think he reads your blog posts.....

pleguin said...

Hi! Does anyone associated with this blog have a ball park estimate of how much the Super Bowl cost taxpayers, in the end?