This week I find myself at odds with some of my friends and acquaintances on the issue of whether the public should purchase the FACC and rescue it from it’s current financial crisis. People that know me are aware that I don’t normally align along the usual party lines across all issues, however on this issue I seem to have made some friends and acquaintances angry with me. In response to my opposition to the FACC bailout; I’ve been accused of spreading disinformation, not knowing the facts, being irresponsible and one friend in particular has accused me of “being unfair to our community” in my role as one of the editors of Fairfield Voice.

The irony in all this is I was not going to post my own opinion piece on the issue, but now that I’ve had a taste of the Pro FACC steamroller I feel compelled to raise a voice on this issue that I feel needs to be heard rather than flattened.

Vote NO And Enact Plan B

A city councilman recently accused me of spreading disinformation because I have been vocal about my opinion that we should vote NO and therefore pressure private parties to purchase the FACC. Let me make my logic clear so that this council member (and other FACC bailout supporters) will stop spreading misinformation about my opinion.

The FACC board continues to paint this picture that they are a new management team with new direction and that the FACC is a great asset and investment. I will assume this is true — people I know and respect are involved with the FACC. Assuming that the FACC is being run by skilled professionals, then we can assume they have a plan B. It would be irresponsible not to have a backup plan.

What is plan B? I speculate that it’s a private party or parties covering the debt and assuming the risk. And of course no one knows about plan B because if it was made public, you’d never have a chance of getting the tax payers to foot the bill.

What if I’m wrong — what if the vote fails on May 4th and plan B never materializes? Well then my answer is that we, the public, just saved ourselves from a bad investment.

It’s easy for thousands of people to vote on the allocation of tax revenue they don’t have to immediately pull out of their pockets — and vote yes on spending hundreds of thousands of dollars on an ailing business because all their friends say it’s a good idea. But, that doesn’t mean it’s a great investment. Now if the private money in this town (and there’s a lot of it in this town), invests in the FACC, then that’s telling. That means someone who has made a lot of money, or a group of people who have confidence in the future of the business, thinks the FACC is in the right direction.

So, vote NO. Let’s see what plan B is. Let’s see if anyone else will assume the risk and validate that the FACC is really a worthy investment. If a private party assumes the role of rescuer, then we all win. If there is no plan B, if no one steps up . . . then we know that the FACC is probably not the sustainable business model we’re being sold. And everyone in the community can rethink the proposal, and the FACC will be forced to come with a new plan. I reject this ticking time bomb scenario that if we all don’t vote yes now, then a black hole appears where the FACC currently sits and “Fairfield’s reputation will be damaged.”

Which brings me to:

You’re Either With The FACC Or Ignorant

I’m not sure if it’s calculated or not, but the FACC has made great attempts to control the current debate by staking claim to “the facts”. That’s just about all you hear when you voice an opinion they don’t like. You’re told to go to their website and get the facts. Your opinion doesn’t count until you go get their facts, at which point I guess you will suddenly agree with their position and then you too can own the facts.

It’s patronizing.

The FACC can speculate laundry lists of scenarios if the you vote NO, but if you speculate a scenario they don’t like . . . time to go to their website and get the facts!

The Pro FACC Brigade also wants you to think that once you understand all their facts, you are logically bound to conclude that your tax dollars should fund them. They don’t recognize opinions opposing the plan as anything but uneducated until you’ve either “talked to Rustin” or gone to the website and read “the facts”.

This past week I read dozens of Facebook posts and blog comments that were in support of the FACC ballot measure. However when I posted my opinion against the ballot measure, I was told to stop “encouraging people to vote no” until I talked to members of the FACC board (to get the facts I’m sure).

It works like this:

* Update your Facebook status in support of funding the FACC – you’re simply expressing an educated opinion.
* Update your Facebook status in support of NOT funding the FACC – you’re “spreading disinformation” and “encouraging people to vote no” (those quotes are from real responses I got on Facebook), and of course you need to “get the facts”.

If this wasn’t about giving up hundreds of thousands of dollars of our tax revenue, it would be comical. But this isn’t a joke – it’s a red flag. Let’s ignore for a moment that I have any other concerns over the FACC bailout. When one side tries to assume this type of righteous posture, it only polarizes the community more, and in my opinion is a sign that you should reconsider participation in that posture. In other words, if you’re standing for and promoting the FACC deal, step back for a minute and consider why you’ve come to that opinion. Is it fear? Is it because you’re a donor? Is it because everyone in your political alignment is doing it?

The Most Important Fact: The FACC Does Not Have All The Facts

This is another reason why we need to vote NO and put pressure on FACC to find private investment, corporate sponsorship or other options. Because I can guarantee you – private money would not vote yes on this deal as it exists today. Why? Because neither FACC board members nor City Council members are clear on the terms of the deal. Isn’t that crazy?!

We’re being pressured to vote yes, and hand over hundreds of thousands of dollars of tax revenue, yet the terms of the deal are to be negotiated AFTER THE VOTE. In an email on April 27th, Bob Moore (FACC Board Member) describes the terms of the lease being proposed if the City assumes ownership:

We have not worked out the terms of the lease with the City relative to specific term, lease amount (other than it will be a nominal amount for some period of time). It’s also possible that if the FACC is ever able to generate positive cash flow without donations, the city may want some sort of additional compensation. No specific terms have been negotiated.

Are you kidding me? No offense to Bob Moore whom I respect a great deal, but it is absolutely irresponsible for the City Council and the FACC board to allow this measure to go up for election without these terms ironed out and presented to the public. This type of negligence with tax dollars offends me and it should offend you!

This IS A BAILOUT

When you see someone giving their support for the FACC on Facebook or in front of the City Council, note down their name, and then go here and view the list of the people who have donated/invested in the FACC. So far I’ve found a match every-time with one exception. It’s not surprising they are encouraging you to vote yes in order to secure their investment with your tax dollars.

You can call this ballot measure whatever you like, but at the end of the day, it is a bailout. And I don’t blame donors for wanting to take the easy road and have other tax payers help bailout their investment. But it’s the wrong choice. You absolutely need to vote down this measure and force the City, the FACC, the donors and the community to rethink the deal. I will gladly support the right deal, but this isn’t it.

Yes, it’s been a while since our last Fairfield Story, but I’m back to tell you about Rustin Lippincott.

Recruited to Fairfield to be the Executive Director of the Convention and Visitor’s Bureau, Rustin was soon asked to become the Executive Director of the Fairfield Arts and Convention Center as well.

A single dad, who recently became engaged to Lindsay Haskins of Cedar Falls, Rustin is a native Iowan having grown up in Ft. Madison where he competed in wrestling, football, and baseball.

After college, Rustin worked in an ad agency in Cedar Falls which tapped his innate talent to promote. After the agency, he worked for the Cedar Valley Catholic school district, where he marketed the value and benefits of a religious education and the student athletes – whom he was integrally involved with as their football and wrestling coach. Not only did he hone his promotional skills there, but he also learned a lesson about how the decisions not-for-profit boards make for the good of the organization are not always the most popular in the community.

He was soon recruited by the city of  Nauvoo to lead efforts to promote their unique community as the director of their Convention and Visitors Bureau. In Nauvoo, Rustin had the opportunity to promote a piece of American history, and became as passionate about promoting Nauvoo and its history to prospective visitors as the residents were about their community.  Ironically, Nauvoo had a unique set of challenges, as the people who had lived there for generations were initially at odds with newcomers. Those newcomers were the Mormons who regard Nauvoo as a major part of their religious history. As a result, many have chosen to reside there and many Mormon visitors from around the world are drawn there – sound somewhat familiar?

Rustin has gleaned a lot from each of these experiences. Most notably, his ability to find the balance between unique groups and to galvanize their individual passions to become one that  promotes the economic values of tourism. Which, as Rustin aptly puts it “gets each group to where they want to go.”

This is not only true of the City of Fairfield, but in his role at the FACC where he seeks to mend fences and to bring everyone in town with a stake in the future of Fairfield to join together to support the Center for the betterment of the entire community.

Rustin resides in town with his daughter Jada, and when asked what he loves most about Fairfield, he sincerely had trouble keeping his response to less than 20 minutes. So when pressed, he summed it up as being with Jada and to attend events as a regular guy having fun with family and friends – to not be “on the job.” He loves to eat out in town and while doing so, to people watch,  thoroughly enjoying Fairfield’s diversity.

In addition to running the CVB and the FACC, Rustin serves on the boards of the Fairfield Beautification Commission, FPAC, The Volunteer Center and Rotary. He is also Iowa’s representative on the Tri-State Development and Tourism Taskforce as well as the VP of Marketing for the Eastern Iowa Tourism Association.

Rustin believes that Fairfield’s  unique selling proposition is that we are like a big city in small town Iowa. We’re heavily influenced by arts and culture and a strong manufacturing community, yet supported by Midwestern values. He believes we have the “best of both worlds” right here in our backyard. And he wants residents to come out and experience everything that visitors are coming to Fairfield to do and to enjoy our community as much as they do.

His role with the FACC is a natural, as it is one of the many assets we have that draw meetings and visitors to town. What he loves about it, is that the FACC provides residents with a great venue to host activities and to feature the community’s talents. He also loves that it’s a gathering place for all generations -  kids, adults, and seniors. Rustin is working hard for it to become the entertainment hub in Fairfield doing everything from hosting weddings and the high school prom, to trade shows, and featuring performers of all kinds. With all that the Center provides the community, he just wants it  to be on peoples’ minds when they are looking for something to do to have fun. To be in the mix and to be known as a place where there is always something to do for practically everyone in town…

Rustin clearly loves both of his jobs. He is passionate about promoting the unique community that Fairfield has become. For as he likes to say “Fairfield offers something for everyone, and you don’t have to look very far for something that will make you smile.”

And smiles are something that Rustin Lippincott always seems to have something to do with…

The following is a letter from FACC Board Chairman Bob Moore, as originally posted on the FACC blog.

Dear Patrons, Friends, and Supporters of the FACC,

Last year, under the leadership of Executive Director Rustin Lippincott, the FACC underwent a dynamic and positive shift by presenting a broad variety of affordable events that appealed to a high percentage of our local residents and which attracted approximately 17,000 out of town visitors. One significant result of this management transformation was that Center revenues grew over 400% last year. Mayor Ed Malloy along with many other Fairfield residents, civic and business leaders see the Center as a significant, irreplaceable Community asset for two primary reasons:

Quality of Life

photo by Will Merydith

1. A continuing and broad choice of top entertainment and cultural events for families and adults, without having to drive to Cedar Rapids, Des Moines or Iowa City.
2. A multi-functional, spacious location for parties, indoor markets and wedding receptions.
3. A place to get to know your neighbors better while having an enjoyable, relaxed time.

Economic Impact

1. Out of town visitors that came to Fairfield because of Center events generated an estimated $3,000,000 in additional spending in Fairfield in 2009.
2. Even during a recession and with traffic routed around Fairfield with the new bypass, Fairfield’s local option tax collections rose by 1% last year.
3. Local employers acknowledge the FACC as an important local feature for recruiting and retaining talented and skilled employees.
4. Over 100 local organizations have had successful meetings and events at the FACC.

The FACC building in itself represents our community working together for economic growth and improved quality of life.

Facilities like the FACC generally are constructed and operated to serve the community and rarely break even without community support. If you live in the Fairfield area, you are likely aware that even with our success in 2009, our recent business planning has clarified the need to become debt free and to establish an annual fundraising campaign to operate at breakeven each year.

Debt Free Plan

We are currently underway with a plan to eliminate our debt via a public/private partnership with the City of Fairfield, its residents, Iowa State Bank, the USDA, and our individual and business donors by raising a total of $1.6 million. To date, Iowa State Bank, the Fairfield City Council, the FACC Board of Directors and several key FACC donors have already made firm commitments to this plan.

Annual Fund Plan

photo by Guy Harvey

In December we launched our “300 for 100” Annual Fund Campaign to raise $360,000 by June 30th for needed capital improvements and operating funds in 2010. If only 300 businesses and individuals donate an average of $100 per month, we’re confident that the Civic Center will remain healthy, grow and continue to serve our community. Over the past three months, we have already raised $123,000 (34%) of these funds.

You may be interested to know that by May 1st we plan to insure that the FACC property remains under local control by:

1. Appealing to local businesses and individuals who have the committed vision and resources to invest in Fairfield’s long-term growth. We are raising $950,000 from this group, $550,000 of which has already been raised.
2. Helping more Fairfield citizens see and feel how the Center directly and meaningfully benefits their lives so that on May 4th, they will support passage of the referendum to permit the City to own the Center free and clear through a reallocation of approximately ½ of the 25% portion of its community betterment local option sales tax collections over a 9 or 10 year period ($650,000 in total).

As a patron of The Fairfield Arts & Convention Centerthere are a number of ways you can help secure its future:

1. Continue coming to Center events that appeal to you, and encourage your friends to do so. Also, your patronage is important at Fairfield’s other venues that present live entertainment such as – Morningstar Studio, Café Paradiso Red Rock Tavern, and Revelations. Every venue is an important contributor to Fairfield’s richness.
2. Become more informed about our 2010 business plan and the May 4th referendum by reading this website or contacting Rustin or any of our board members.
3. Support the FACC financially. Make an instant donation, or download a donation card which provides several payment options, including monthly automatic payments.
4. Vote on May 4th in favor of local option sales tax referendum.
5. Help us educate your friends and neighbors about how the Center enriches our community and family life and about the importance of voting Yes on May 4th.

Thank you for your past and future support.

Sincerely,

Bob Moore
President
FACC Board of Directors

[UPDATE: the County Board of Supervisors voted no to have a public vote on whether to fund the FACC with LOST revenues]
The Jefferson County Board of Supervisors held a public hearing Thursday evening on whether or not the county should hold an election to support the Fairfield Arts and Convention Center (FACC) with a portion of the Local Option Sales Tax (LOST).   A standing room only crowd filled nearly 200 chairs and then lined the sides and back of room.   Thirty two citizens expressed opinions that varied widely from the thoughtful to the absurd during the 2 1/4 hour public hearing at the fairgrounds.

The meeting started with each supervisor giving some background on the issue, then Pat McMahon and Dave Neff spoke on behalf of the FACC.  Then a steady flow of citizens started to approach the microphone, some didn’t necessarily like the idea of having any change in the LOST allocation, but did support the process of letting the people express themselves at the ballot box.

The current allocation for the county portion of the LOST funds is 80% for property tax relief and 20% for bridge and culvert repair.  According to the supervisors, the current property tax relief that could be put toward the FACC, should a vote be held and it passed, is $6 per $100,000 of  valuation.  In other words, a county resident with a property valued at $500,000 would lose $30 of tax relief per year, however, many speakers were not interested in having any of their money going toward the center.

One speaker was not interested in holding an election because they didn’t want the county to incur the cost. Bob Moore of the FACC board responded that they have the money raised to cover the election cost for both the city and county, they will make a donation of that amount to each entity.

Jim Salts spoke in favor of the center and the vote saying, “if we don’t look forward and make the community attractive, our young people will have no reason to return and live here after college.”

A ’show of hands’ vote near the end of the meeting indicated that the majority of citizens in attendance were not in favor of putting the issue to a vote, nearly half of the speakers indicated a desire to put the question to a vote.

The Board will vote on holding the election during their regular meeting Monday @ 9:00, an estimated 4500 residents in the unincorporated areas of the county would be eligible to vote in the proposed election.

Facts and information about the plan to save the FACC can be found at http://www.fairfieldcenterinfo.com/

It was standing room only at tonight’s Fairfield City Council meeting as over eighty residents packed City Hall. The council opened up the meeting to hear public comments on the proposed vote to shift 12.5% of the local option sales tax (LOST) to create a public-private partnership between the City of Fairfield and the Fairfield Arts and Convention Center.

Mayor Ed Malloy opened the public hearing explaining that the question before the council tonight was whether to put the issue to a public vote, which would probably take place on May 4th. Getting ahead of perhaps the biggest criticism of the proposed funding of the FACC, Mayor Malloy explained that the FACC grows the revenue for LOST and therefore will contribute to sewers and streets (which currently receive 75% of LOST funds). Furthermore the Mayor assured that the re-allocation of LOST funds to the FACC, would not take away any current allocation of LOST funds to sewers and streets.

In a lighter moment from the meeting, residents were asked to limit their comments to two and a half minutes, with a thirty second warning given by City Clerk Joy Messer.

Over a dozen residents addressed the council and nearly all of them told the Mayor the issue should be put to a public vote (no matter whether or not they supported the re-allocation of funding).

Public comments opened with several FACC supporters speaking, including Dave Neff, Ken Ross, Fred Swartz and Pat McMahon (Fred and Pat are both members of the FACC board of directors). They were all well spoken and represented different perspectives on why the FACC is an asset to the community and therefore important to support with public funding.

Ken Ross, who has run several companies in Fairfield, provided a business perspective on one of the biggest criticisms of the FACC – a poor business plan that had to be redone. He explained that it’s common for a business plan to be re-written once a venture is launched in order to adapt to new information and unforeseen challenges.

Ray Griffin was the first resident to speak in opposition to the proposed funding of the FACC. Ray Griffin is also the author of a recent ad in the Fairfield Ledger where he argued that “bailing out the Civic Center” may jeopardize other programs like Little League, Police Department, Jefferson County Trails, Green Strategic Plan, and Parks Department. He addressed the council with concerns over lack of education over the proposed partnership and potential increase of property taxes. Mr. Griffin argued that if the FACC were to take LOST funds, then other entities would be underfunded, which would then force an increase in property taxes to cover the difference.

Another resident who addressed the council agreed to hold the vote, although she was opposed to the proposition of funding FACC. She expressed her opposition by questioning priorities. “What would happen if the public voted on more funds for our streets?”

The most unique comment of the evening came from resident Denyce Rusch, who spoke not of business plans, costs, or tax priorities, but of taking a sick relative to a musical at the FACC, and the emotional value of having access to the arts in our community.

After hearing everyone in the crowd who wished to speak, the council spoke briefly about the proposal, including a short thank you from councilwoman Susan Silvers who thanked the residents in attendance for voicing their different opinions “in a professional manner” (unlike some of the more heated hearings this council has witnessed in the past).

The council voted unanimously to put the proposition to a public vote this Spring. The next immediate step for the FACC board is to find residents of Jefferson County to convince their officials this coming Thursday to approve a similar vote for county residents.

Bob Moore, President of the Fairfield Arts and Convention Center Board, spoke to the Fairfield City Council Monday evening.  Mr. Moore reviewed the center’s revised business plan and some of the center’s highlights from 2009.

Some of the highlights include;

• 262 Events in the Sondheim theater
• 325 Meetings and expos
• Nearly 14,000 out of town visitors
• $5 Million of spending influx from those visitors

Even with all the good news, the center is still  unable to fund the debt, or the annual operating expenses.  The board has a two-part fund raising plan, one to retire the $950,000 non-mortgage debt, and one to supplement operating revenues estimated at $306,000 for 2010.  The plan is to approach past donors first, those donors generously gave $400,000 to the center last year.  Mr. Moore stated that the next 3-4 months will determine the future of the FACC.

The FACC has been appraised at $1.75 million as an operating facility, this figure fits favorably with the amount hoped to be reallocated from city and county Local Option Sales Tax (LOST) funds.  As required by the USDA, the mortgage guarantor, the FACC building is currently for sale, however no interested buyers have yet surfaced and the FACC board has little confidence that one will appear.

In an effort to keep the refinancing process moving forward, Mr. Moore asked that the Council schedule a public hearing for the first meeting in January.  This would be the first step in the process of getting the LOST reallocation to a public vote.  The Council voted unanimously to hold the public hearing January 11, 2010.  It was suggested that consideration be given to holding the meeting somewhere other than City Hall in order to accommodate the large crowd that it will undoubtedly attract.

So, the question is; should the city & county reallocate LOST revenue to the FACC?

UPDATE: click here to download the FACC Business Plan.