Operating costs for proposed Events Center in the millions - KSFY News - Sioux Falls, SD News, Weather, Sports

Operating costs for proposed Events Center in the millions

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Between the operating costs and revenue expected to come in from all three venues: the Events Center, Convention Center and Arena, the city's Finance Director Tracy Turbak says the venues could bring in between one and more than $2.5 million.

But there could be some risks along the way.

"Certainly the number of events, the type of events and attendance at the event is a risk. No one can say with any certainty there's no guarantees how many events will be scheduled, how many people will come to those events," Turbak said.

Turbak mentioned last year the Arena lost more than $120,000 while the Convention Center lost $560,000.

"The older facilities might have a harder time covering their costs," Turbak said.

Because it could cost more to run. Turbak talks about the Arena.

"Out of $2 million in revenues, they were about $120,000 short of breaking even. For a facility that's 50 years old and quite inefficient from the stand point of staffing it takes to put in events and utilities to run a 50 year old building that's really not a bad result," Turbak said.

But he expects the Events Center to cover that loss.

"If you look at the Events Center as a stand alone facility, if you look through the numbers you'll see that it's projected to operate in the black and far enough in the black that it will off-set the operating losses projected for the Convention Center and Arena," Turbak said.

It could cost around $110 million to built the Events Center, but the construction company could have more of an exact number next month.

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