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New Burnsville PAC chief battles profit expectations

April 15, 2010 at 1:21AM

Jon Elbaum, new executive director of the Burnsville Performing Arts Center, knew he faced a public relations challenge when he took over the controversial facility early this month. What he learned in a hurry is that he also must deal with financial expectations he finds unrealistic.

The City Council is accepting applications from community members for a soon-to-be launched advisory board, which will report to the council on Performing Arts Center (PAC) matters. A draft of an outline spelling out the board's duties calls for it to help make the PAC "financially self-sustaining." Council Member Dan Kealey said he hopes that the board will be able to "show us how to make [the PAC] more profitable."

Elbaum, who previously operated art centers in Colorado and Iowa, said no such facility nationwide operates without subsidies.

"It is tough for people who might have a business background to understand the concept," Elbaum said. "I can see where it makes political sense [for council members] to say that. It's a safer stand to take."

Elbaum said he had a similar experience while running the Bridge View Center in Ottumwa, Iowa.

"Certain folks felt the center should be profitable even though they knew it wouldn't be," Elbaum said. "It creates unrealistic expectations for the public. It's not my place to lecture the council, but I will use every opportunity I get to make the point. I'm sure I will have the opportunity to speak with individual members of the council to talk things through."

Steve Peters, president of VenuWorks, the company hired by the city to operate the arts center, told council members on Tuesday that the first year of the PAC amounts to a "success story." That, despite an operating loss of $533,599 -- $113,000 more than anticipated.

Peters also told the council the center is on track to meet or exceed demands of the 2010 budget, which calls for a shortfall of $430,573. Through February, the PAC has a negative balance of $72,982. February saw a deficit of $22,140 following a $50,842 deficit in January.

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Burnsville Chief Financial Officer Tammy Omdal notes that the PAC earned nearly 40 percent of its operating revenue in the fourth quarter of 2009, typical for such a venue.

After failing on Tuesday to come to an understanding on the role the advisory board will play, the council will hold a special work session next Tuesday in hopes of reaching agreement. It hopes to have the board in place next month.

Reacting to the draft put together by Mayor Elizabeth Kautz and Council Member Mary Sherry, Council Member Charlie Crichton called it "a pile of junk."

Crichton said anyone applying for a spot on the board would have no idea what they were applying for. Council members agreed to offer additional suggestions and comments before the next meeting.

Dean Spiros • 952-882-9203

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DEAN SPIROSsouth today, Star Tribune

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