Krause can't really believe this can he?

Krause gone nuts already that did not take long. I can't believe this, Mr. Krause you need to take a look around Minnesota and around the country there are kroc centers and like centers all over and not in one city is it a "money pit". There are many in smaller city's then Duluth and they are doing very well.


We here at Duluth Politics have been critical of some projects such as the DECC expansion and the ice arena and center that they want to built at the old Clyde iron site. Perhaps because we believe so strong in the kroc centers. Duluth can not support to many sporting event areas. We know eact of the three projects have the own idenidtys but still we don't believe Duluth is a large enough city to support them all.


Mr. Krause I wonder how much of this is because it is in part a salivation army project? You are a fool if you think this is another GLA, or even softcetner.


Don't let Kroc center turn into a money pit
Commentary by GARRY KRAUSE
After reading the Jan. 26 editorial, "Construction hike shouldn't raise cost to city for Kroc," I must respond.
I recently participated in a lengthy meeting with state Salvation Army officials. Much of our discussion focused on long-term operating budgets. Operating budgets are especially crucial to high-maintenance facilities such as the proposed Ray and Joan Kroc Corps Community Center. Long-term operating budgets need to be formulated to ensure there are no future organizational cash-flow problems. Cash flow is the lifeblood of any venture.
The Kroc endowment will not operate the Kroc center forever. Eventually, there will need to be ongoing fundraising.
My question-and-answer session with Kroc representatives revealed the budget has not yet been entirely completed. When considering the scope and size of the facility, I am not surprised. Facilities that contain aquatic components are extremely expensive to maintain. Pools and associated equipment suffer from liquid and chemical damage. Swimming areas require elevated supervision and care. In general, utility costs for aquatic centers are higher than other traditional facilities. It is extremely hard to predict anyone's future energy costs.
I am in support of the Kroc center. However, because the Kroc center will begin to experience expensive maintenance costs as it ages, I informed state Salvation Army representatives I would be looking for a solid long-term operating budget. In particular, I will be watching for a budget with viable numbers. I was promised a long-term budget would be forthcoming. It was communicated that Kroc estate representatives also were looking for the same type of financial information.
At the editorial's referenced full City Council meeting, we received information from a different group of local Kroc representatives. Once again, I articulated the due diligence needed for a detailed long-term operating budget. Understanding maintenance costs will begin to mature in time, I did add the comment that the organization needs to be self-sufficient, and that we do not need to be hit with a request for future city funding. We do not need to experience another aquarium. Local representatives stated the Kroc center would be self-sufficient.
At our most recent council meeting, it was revealed the Kroc project would not fund the replacement (or creation) of tennis courts, bocce courts, a skateboard park, or a required parking lot. The cost of providing these services most likely will fall to the city. Our community enhancement project has hit us with an unanticipated expense, and we have not even removed the first shovel of dirt.
From my perspective, the city gets blindsided by too many surprises. For all intents and purposes, cost overruns have become the operating norm. The city recently experienced unanticipated expenses in other improvement endeavors, including a hospital development and the Cirrus expansion. Duluth cannot afford to pay for private-endeavor shortfalls. We need to look closely at every activity to ensure there are no future surprises linked to our budget. I do not want to see the city face a cost overrun exceeding the industry norm of around 10 percent.
It is the fiscal responsibility of lenders, directors, commissioners and elected officials to ask sound financial questions. It is the responsibility of leaders to ensure due diligence is performed in all endeavors. Being informed, and monitoring key construction and operating costs is what stakeholders, namely residents, expect from our city leadership. Duluth needs to develop proactive cost-containment measures.
Should the council ask more probing questions in the future? Absolutely. For me, the questions have just begun.