Much of the former mayor’s presentation,
...summarizes facts his audience already knew
— that DPAC ...is making a profit...
Greensboro News & Record Editorial Page Editor
who rarely mentions the News & Record parking lot
in the running for the PAC location
"DPAC is not profitable!!!!!!!
"DPAC is not a money pit!
It is actually making money.
There it was in the Herald Sun and the N&O,
and a press release from City Hall:
For the fiscal year ending 6/30/11, DPAC had a profit of $2.5M
and gave the City of Durham $1M of that.
...However, it was Durham Performing Arts Center, LLC
that made a $2.5M profit.
The “giving” of $1M to the City
is a mandated payment made in accordance with the contract between DPAC, LLC and Durham.
The contract provision requires that the City receive 40% of any net profit.
...net profit and City share–were down 13% from last year.
...no mention of a mortgage, debt service or rent.
...We get no rent, and we pay the debt service.
The city borrowed $33.7M to build DPAC.
...Servicing ...DPAC debt will require 28 years of annual payments
of nearly $2.5M ($67.8M total.)
...The city is also paying $275K for operating costs and $344K
to transfer to the mandatory reserve for improvements and maintenance.
The total City subsidy for DPAC is $3.1M for FY 10-11.
$3.1 million costs - $1 million profit = - $2.1 million loss?
...At the end of the day, DPAC is subsidized by City funds."