Assemble the task force now and get busy. Let’s have all the
facts on the table and public before deciding to spend $12.4
million tax dollars
So, the city is “going to the chapel and it’s going to get married to Gilroy, formerly Bonfante, Gardens.” Thus far, it feels like a very emotional decision. But before the “true believers” rush headlong into plunking down $12 million tax dollars, let’s get the facts.
First, let’s dispense with the notion that the debt willwill somehow magically disappear. It won’t. Under the latest scenario presented to the City Council, the city would put $12.4 million in an escrow account to purchase the bonds from those who financed the financially ailing park’s debt. That would give title to the city immediately for the 536 acres of theme park in west Gilroy off Hecker Pass Highway, even though bond holders could hang on until the last of the notes comes due in 2010, collecting a tidy 8.15 percent interest all the while.
The city could shell out $12.4 million in cash, finance it with bonds or perhaps use a combination of both. Either way there’s a cost. It’s just spin to contend that Michael Bonfante’s dream horticulture-amusement park is debt free until profits from the park are enough to pay off the $12.4 million in debt. That’s not going to happen anytime soon, and may never happen.
Second, where are the operational facts?
The proposed deal should be utterly and completely transparent to residents. Gilroyans should hear all the operational facts before any city purchase. For example:
How much does Cedar Fair, the company operating the theme park under contract, receive for its services?
What are the attendance numbers since the park opened?
What’s the full balance sheet look like with the current debt in place?
This decision will impact the city budget for years to come. It should be a business decision, and the Council should share the facts with the public.
Determining whether the theme park aspect will be shuttered and the Gardens will become essentially a lower maintenance “regional” city park should be done prior to any purchase, not afterward.
Mayor Al Pinheiro suggests eventually assembling a task force after any deal to study the feasibility. Why wait? Why not get all the facts before making the decision?
Clearly, many are emotionally involved in the park. But investing city dollars – money that could go to other purchases and projects – shouldn’t be done until all the facts are out.
Perhaps it’s best to purchase the park for the city’s future. Perhaps other projects should be put on hold or shuffled. Perhaps the city can operate the park and make money.
But until all the facts are made public, the decision ducks the scrutiny it deserves.
