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t Remarks to the South Bend Common Council on the College Football Hall of Fame July 26, 1993 With the release of the Economic Research Associates report,which cost the City $40,000, and the management and licensing agreeements with the NFF, several alarming facts are now in the open. Tonight's remarks will deal only with the ERA report. At the next Council meeting, I'll comment on the management and licensing agreements. 1. ERA estimates that it will cost $368,454 more to operate the Hall in its first year than South Bend estimated a year ago. That is over $1,000 a day. Remember, South Bend is responsible for all operating expenses. (See the expense part of the blue sheet for specific figures.) The Hall will thus be a very expensive gamble. My assumption is that the ERA's estimates will be much closer on the expense side than on the revenue side. 2. The estimated gross expenditure for the average person attending the Hall, based on attendance of 161,878, in the first year is $11.13. That figure includes attendance revenue along with food and gift shop revenue. Either those revenue assumptions are wildly optimistic or a family's visit to the Hall will be much more expensive than is commonly believed. 3. The Capital Improvement Fund, as per the agreement with the NFF, calls for much less annual expenditure_ tha..i is suggested in the ERA report. For each of the first ten years, the expenditure for new exhibits would be $100,000 for the agreement with NFF and $369,868 as per the ERA estimate. Which figure will prove to be more accurate? Remember it is the City's intention to have a "world- class" facility. 4. If the ERA is correct about the amount of "new exhibit development" that needs to take place in the first ten years, the total spending for exhibitry will be $10,698,681. How can such a huge expenditure for museum exhibits be justified? 5. Estimated attendance of 161,878 averages 3,113 per week and 443 per day. Who in their wildest dreams can imagine such crowds flocking to this facility in downtown South Bend? Remember, total attendance outside Cincinnati never reached 100,000 per year. 6. The "Events Market," which is made up of twelve Saturday "rallies," three "festivals," and ten "College Alumni Weekend Getaways," is sheer fantasy. The idea that you can get 42,500 people at those events makes for a reckless gamble. As a point of reference, that number is greater than the yearly attendance of the Hall at Kings Island. Too many eggs are being put in that basket. Jim Cierzniak