More On Riverfront Park Privatization
The following commentary by Shawne FitzGerald, questioning the economics of the MPRB's contracts with the Mississippi riverboats, was posted August 30, 2010 on the Minneapolis On-line Issues List:
MORE ON RIVERFRONT PARK PRIVATIZATION
Wednesday's Park Board meeting has two items related to privatization at Central Riverfront Regional Park, Boom Island and B F Nelson sections. Both on the Regular Meeting agenda.
The Park Board would cancel the Skipperliner contract to operate Mississippi riverboats from MPRB properties and grant a new contract to Paradise Lady. It is a no-bid exclusive use contract written for the remainder of 2010 (except for the reference that this is an "initial" agreement). See
http://minneapolisparks.org/documents/agendas/2010-09-01/8-1-042REG.pdf
Park Watch did some research years ago that suggested that the Skipperliner boat contract was losing money (so taxpayers were subsidizing riverboat customers). The I-35W bridge collapse intervened, Skipperliner and the MPRB became involved in a dispute, and Skipperliner, primarily a boat builder, went bankrupt. Time for a fresh look.
Has the Mississippi riverboat contract made money or cost money? Who are the people served by this amenity? Minneapolis residents? Park Board Commissioners are urged to find answers to these questions before passing a resolution that says it is in the "public interest" to operate excursion and private/corporate cruise boats off Boom Island.
A plea for transparency....Park Board business ventures should each have pro forma business statements, a balance sheet and an income statement, so that decision makers and the general public can gauge the value of the privatization. I may be wrong but I thought the MPRB invested $100,000+ in docks, hook-ups, and improvements for Skipperliner - were these costs ever recovered? Where is the balance sheet?
The capital question is timely for the Commissioners are also being asked to approve Boom Island engineeering plans that may subsidize the Mississippi riverboat operator:
-Improve excursion boat boat landing $154,500
-Dredging $101,500
See last page:
http://minneapolisparks.org/documents/agendas/2010-09-01/2-4-040REG.pdf
The riverboat contract is only $35,000 a year (if and when collected) and that is gross revenue. It doesn't include the park maintenance, utilities, police, etc. Is there a profit on this or are Minneapolis taxpayers subsidizing those boat rides?
Shawne FitzGerald
Powderhorn Park