| Author | Message | ||
     jayjay Citizen Username: Jayjayp Post Number: 752 Registered: 6-2005 |
Has anyone ever seen a fully developed business plan for SOPAC, and if so can you share it with us? I am very concerned about the financial burden this will place upon us taxpayers. SOPAC has already received nearly $1,000,000 in payments to supplement their operating expenses from 2001 thru 2005 from SO taxpayers. And the BOT will fork over another $350,000 this year, and the place isn't even open yet. I heard SOPAC people at the BOT meeting talk of repaying the huge bond debt to the town (we'll see if that ever comes to pass), but what about these operating supplements? Running a place like this is no small task for the best of professionals. I think its far overdue for the SOPAC board to operate in the sunlight and publish their business plan. Since we are all putting up the money, we have a right to this information. | ||
| MHD Citizen Username: Mayhewdrive Post Number: 4595 Registered: 5-2001  |
jayjay, I think I saw a Calabrese Business Skool case on this and the Business Plan went something like this: The movie theater has 600 seats and movie tickets cost $9. Each theater will have 2 shows per night. 600*9*2= $10,800 revenue per night (every show will sell out, right?) $10,800 * 365 = $3,942,000 revenue annually (every show will sell out, right?) We'll also sell some popcorn, soda & candy, so let's round up to $4,000,000 in revenue every year. The project costs $14,000,000 to build. Break-even in less than 4 years, right?  | ||
| sbenois Supporter Username: Sbenois Post Number: 15623 Registered: 10-2001  |
Let's take one giant step back: THE DISTRIBUTORS OF THE FILMS GET THE MAJORITY OF THE BOX OFFICE TAKE. If anyone thinks that $9 bucks a ticket is going to SOPAC, please tell me when to stop laughing. http://electronics.howstuffworks.com/movie-distribution4.htm | ||
| MHD Citizen Username: Mayhewdrive Post Number: 4596 Registered: 5-2001 |
S, I guess you missed my "wink" at the end of the post and the reference to the "Calabrese Business Skool" at the beginning, eh? | ||
| sbenois Supporter Username: Sbenois Post Number: 15624 Registered: 10-2001 |
Nah. I saw it. My post was more for the business skool planners. who might not have figured out some of these things yet. | ||
| jayjay Citizen Username: Jayjayp Post Number: 753 Registered: 6-2005 |
And then there's the fact that South Orange already has three theaters for live performances - one at the Baird and one at the Middle School and one at Seton Hall, plus the live performances in the park. So SO will be competing at least with itself (not to mention other nearby live theaters). If we could have poured that money into the Middle School auditorium we would have created a tremendous venue space for evening and weekend use and made the Middle School a place of pride, and there would have been plenty left over to spruce up Baird. And as for that catering hall. Doesn't each temple in town (of which there are three) already have one for use for Bar Mitzvahs. And what businesses want to use a catering hall in a movie theater? Most want to use hotel rooms with A/V equipment and staffs and lots of menu choices. There aren't even sizeable businesses in town to recruit. And business people don't want to have employees pay to park. And as for the movie house, if Clearview wanted to locate a movie house in South Orange it could have approached one of the many so-called developers and come up with a plan. Why should we taxpayers have to subsidize movie goers, and incur the additional costs of policing etc. The police right now don't seem to have the resources they need to crack down on auto theft in the transit lot. Yep. They've got a plan. | ||
| joel dranove Citizen Username: Jdranove Post Number: 944 Registered: 1-2006 |
jayjay: Please read your message to the Board on 9/11. jd | ||
| susan1014 Supporter Username: Susan1014 Post Number: 1762 Registered: 3-2002 |
Actually, I think the discussion is a bit off base...I dont' think that the BOE is looking to have any of the school auditoriums developed as a general performance venue. Seton Hall is actually eager to move much of its theater program to SOPAC as a paying user. And I'm guessing that there will be some desire for an additional party rental space in town -- not every party is a kosher bar/bat mitzvah or wedding (all that you will throw in my synagogue!) I don't agree with everything that was done along the way in the development of this venue, and I too would like to see more detail on the business plan. However, the deed is done, and I'm eager to see the venue complete, and become a patron. Let's ask for the light of day, and hold the BOT and SOPAC Board accountable for any mistakes that they made, but lets also look toward opening day and try to make this project a winner, whatever its history may be. As we look toward political change in this town, I for one will not be looking to political platforms that seem to be trying to make SOPAC fail. | ||
| jayjay Citizen Username: Jayjayp Post Number: 754 Registered: 6-2005 |
Susan- Who is trying to make SOPAC fail? That's in no one's self interest. You talk about "more detail on the business plan." Have you ever seen any business plan? If you have, can you share some details? | ||
| susan1014 Supporter Username: Susan1014 Post Number: 1763 Registered: 3-2002 |
No, I've never seen a business plan, but I have heard the limited information made public, including the recent BOT meeting. And to your other question...you sound like you are eager for it to fail given your questioning of its very existance -- I'll be glad to hear it if I'm misreading you. | ||
| bets Supporter Username: Bets Post Number: 934 Registered: 6-2001  |
susan, am I wrong in thinking that Seton Hall's payment was a $1 million bond that will be paid off over 20 years? I'm pretty sure that's how SHU joined the SOPAC party... | ||
| susan1014 Supporter Username: Susan1014 Post Number: 1764 Registered: 3-2002 |
I believe they will also be paying standard rent for their use of the theater for rehersals and performances, based on what I've read. The million paid for improvements to the space that made it suitable for their needs, and may have gotten them some priority choice of rental nights, but I believe they will be a paying user. | ||
| joel dranove Citizen Username: Jdranove Post Number: 952 Registered: 1-2006 |
"believe" is not fact. What are the facts? jd | ||
| jayjay Citizen Username: Jayjayp Post Number: 756 Registered: 6-2005 |
None of this should be speculation. As long as we taxpayers are footing the bond, we should know exactly what projected revenues are, and what the assumptions are that when into them. | ||
| sbenois Supporter Username: Sbenois Post Number: 15628 Registered: 10-2001 |
I can assure everyone that at least 5 million a year in revenue will be coming in. Beyond that, I don't know. | ||
| susan1014 Supporter Username: Susan1014 Post Number: 1765 Registered: 3-2002 |
Joel, "believe" means that I've got other things to to than go read back issues of the News Record, etc. to serve as your research department. I'm repeating what I've read and heard in official venues, but putting in the word "believe" only because I'm doing it from memory. | ||
| SOrising Citizen Username: Sorising Post Number: 719 Registered: 2-2006 |
Facts and a real plan are essential, as is making each of them public. Neither facts nor a plan is public. Stating that they need to be hardly demonstrates a desire for SOPAC to fail. But given the track record of the people behind it and their infamous ineffectiveness at real estate development, asking critical questions and holding the BOT accountable for answers may contain some of the damage, say from 14 million to double or triple that. Because the people behind SOPAC are suspect, sketchy innuendos about a plan are woefully insufficient. A seasoned and well respected entertainment and/or real estate venture entrepreneur might get away with sketchy public plans. But such a venture probably wouldn't risk its reputation on poor to no plans. It is very clear, however, that the instigators of SOPAC do not have the professional track record to be left to their own injurious devices. Aside from the theatres you mentioned that will compete with SOPAC, jayjay, there is also the rise of DVD mail subscription services like Netlix and others, DVD recorders, etc. Major new movies more and more may be piped directly into homes on a subscription basis via fibre optic and other large, higher and higher speed multi-media technologies. Movie theatres may have to contend increasingly with accelerating rates of technological obsolescence. Having so many theatres in SOPAC may make it increasingly difficult for them ever to break even. | ||
| Dave Supporter Username: Dave  Post Number: 10613 Registered: 4-1997  |
In case the SOPAC board needs help, this looks like a well-organized business plan for an art center http://arts.ucsc.edu/artcenter/businessplan/ | ||
| joel dranove Citizen Username: Jdranove Post Number: 957 Registered: 1-2006 |
Maybe they can just adopt it. jd | ||
| Steve Hickson Citizen Username: Shickson Post Number: 62 Registered: 4-2006  |
jayjay raises a valid point and concern. And susan1014 you are right in that the citizens of South Orange should do all we can to help make SOPAC a success---it is in all of our best interest. That said, it is clear that the BOT, SOPAC board members and even the SOPAC controller can not articulate a clear business plan to the taxpayers of South Orange. During the last BOT meeting I specifically asked what level of revenue would be required (either monthly or annually) for SOPAC to break-even against its operating expenses and debt-load to the town. Long story short---we got no answer. I'm not taking an anti-SOPAC stance---in fact, I think SOPAC as a strategy is great for the town---but the execution has been somewhat flawed---not enough parking and no frontage or marquis on South Orange Ave---these should have been MANDATORY SOPAC features given that South Orange is trying to position itself as a cultural/arts center. That said, I hope it works and I hope citizens like jayjay keep pressing for answers on what it will take for SOPAC to work. SOPAC represents a $14MM investment and gamble on the part of our town. If it works, like we all hope it does, that's great. But if it doesn't it could create quite a burden on us especially when you factor in our already heavy $70MM debt. Keep your fingers crossed as you buy your tix to Yo-Yo Ma. | ||
| J L Bryant Citizen Username: Jeffbryant Post Number: 76 Registered: 6-2002 |
As a slight rewind, susan, about your comment of "...I don't think that the BOE is looking to have any of the school auditoriums developed as a general performance venue. Seto..." ... I'm sure the BOE wouldn't like schools being used for more extracurricular functions, but.... Please don't misrepresent the BOE as some independant, self-directing entity in town that is unanswerable to the community it serves. Though BOE's may act like that frequently, don't ever forget that a BOE is put in place by and must (ultimately) answer to the taxpayers. If we wanted to open our schools (note OUR schools, not "theirs") for town functions or service, it would be our right make that happen. The assets are ours. That said, I too hope SOPAC will be successful. |
