The sports center: Spending vs. investing

Clearly, every person reading this opinion piece can quickly recall and articulate several government spending boondoggles from Washington, D.C., to Palmer.

If I may, I’ll share my thoughts on one local specific example where there is a true difference on government spending vs. government investing. I strongly subscribe and believe thriving communities are those that increase the opportunities for private companies to flourish, creating employment with private innovation and ingenuity. Creating more private wealth will actually create better schools, public safety and infrastructure. “Government” seldom holds the keys to efficiency over a genuine profit-and-loss-driven private business plan.

So I have seldom, if ever, carried the torch by declaring my personal support for a government-owned and operated asset. But today I feel compelled to step out and give credit where credit is due regarding the Curtis D. Menard Memorial Sports Center.

Since I was co-chair and treasurer with the late Dr. Curt Menard on the “Build it Now Committee” from 2001 until March 2002, I feel compelled to reiterate how we got here. More than 11 years ago we mounted an intense year-long community campaign disseminating and distributing much data, research and surveys to get accurate information to the public — the voters of Wasilla — on this multi-use sports complex if the .5 percent sales tax initiative were to pass in the special “proposition” vote. And it did pass by only 17 votes in March 2002.

With a look at how it turned out 11 years later, here is my perspective of actual costs vs. revenue, intrinsic and actual. We, the initiators of the Build it Now Committee, realized at the time there would be a non-traceable direct cash flow increase to the city because of the increased sales tax receipts spent by the users of the facility. It’s a user-fee-type scenario where those who come to town to receive the benefits of this investment help pay for it.

We also knew some day that it may come to this, that “the sky is falling” at the sports complex. Quite honestly, it is working as planned. Take the recent nearly week-long USA Wrestling Tournament that took place at the complex. The event also brought many first-timers to the community, plus a monumental cash flow to the city. Wasilla McDonald’s ran out of food, the hotels were sold out. There were nearly 900 athletes here, plus an estimated 2.5 fans per athlete. Statistics estimate accommodations, food, fuel and incidentals at $117 per day for 3.5 days. Do the math and that’s about $368,550 spent in the Wasilla area, and with Wasilla’s 2 percent sales tax, that’s about $7,371 in direct cash to the city.

Those sales tax dollars generated by the center are not calculated as sports center income that is used to offset sports center costs. This is just one example of one event, and currently there are several events per week, sometimes several events a day. And remember the multiplying factor of those outside dollars spent locally, that the estimated $ 300,000 cash spent in town for a major event has a tenfold positive economic impact on small businesses borough-wide; another substantial benefit absent from the profit and loss ledger at city hall.

Trade, sportsman’s, home shows and Christmas bazaars draw as many as 40 percent of their vendors from out of town. I am told because of setting up expanded and expensive booths for these events that the local merchants see sales rise several days prior to a major event, and nearly every sale is under $500, so every dollar is taxed.

I have also heard from a local family that recently moved to the Valley with their five children: “When it was all said and done, we chose to move to the Valley because our kids, they wanted to be close to the multi-use sports complex. (With) three hockey players and two soccer players, it closed the deal. Wasilla it was.”

Now two family wage salaries, year-round, are paying sales tax.

And what is the value of enhancing a child’s life, increasing self-confidence, finding positive healthy friendships and mentorships developed by coaches and teammates that would not have happened without this center?

Another quote from a single mom from Meadow Lakes: “I had been looking for a place to find positive relationships, with fun activities, that I could afford, and I found few places in the Valley until the sports complex came to town. Now I take my kids every week. It was a game-changer for my family and me.”

Let’s review the other genres and demographics being met, in addition to the athletics. One Lord Sunday (3,000 attendees), Wounded Warrior and veteran’s events, parents with strollers, business seminars, graduations, Christmas Friendship Dinners, concerts, Rotary events, funerals and more. It’s a facility for all ages; literally from age 1 to age 100, you’ll find them at the Menard memorial multi-use sports center.

I owe it to my two friends and immense contributors to the Valley, Curtis C. Menard and Curt Menard Sr., and to the “Build It Now Committee,” which invested a tremendous amount of time, talent and treasure to get the 17-vote margin, to tell this story. If nine people had said no instead of yes, this community would not own a spectacular $15 million facility today, and it would likely never have occurred.

As for profit and loss, rental of a one-hour sheet of ice recently increased from $205 to $225 to generate more cash flow. Meanwhile, the average cost in Anchorage is about $400 per hour. My question is, shall we raise the costs to use the facility to the users — the owners — who are the taxpayers that funded the construction to the breaking point where they cannot afford to use it?

My belief is no, the center’s incalculable benefits to our community far outweigh the ledger entries on the accounting statement. Friends of Wasilla Library should also be huge fans of the sports complex, because every dollar of sales tax the complex generates, means an additional half dollar will also be brought in for building a new library, a 50 percent increase.

I say thank you to the leadership with vision on the city council that reviewed this plan, approved the concept and allowed this dream to come true in 2002: mayor Sarah Palin, council members Howard O’Neil, Dianne M. Keller, Noel H. Lowe, Judy Patrick, Ron Cox and current councilwoman Colleen Sullivan-Leonard.

The Menard sports center is something very positive for this community. Curtis C. Menard, as President of Wasilla Rotary, closed the Rotary meeting at 1:15 p.m., Aug. 8, 2001, turned to me with a slight hug and said, “John can you come over and join me at my dental office at 5 p.m., Friday, Aug. 10. I need you to help develop a strategy how to get this proposed sports complex built. The kids of our community need a safe and fun place to recreate indoor all year around, seniors too.”

I said, “You bet I’ll be there at 5 p.m., sharp Friday. We’ll get this done.”

Curtis was tragically killed in a plane accident the next day, Aug. 9, 2001. Our planned meeting never happened, but I accepted his cause and his plea as a mission, and I am proud to have played a role in achieving success. Both Curtis C. and Curt D. Menard believed in something good, and this Curtis D. Menard Memorial Sports Center is something good, something very good, and will bring a great return on investment for generations to come.

John Klapperich is chair of the Mat-Su Borough Planning Commission and a 35-year Valley resident.