Players purchase: no

Two common analyses business leaders go through when they face tough decisions, opportunities or quandaries over whether to make a particular move go like this:

1) Does the decision being considered fit and align with the organization’s mission? Or does it fall outside the bounds?

2) Span of control. Every organization has a limit on how many challenges it can take on at once; a limit on what its staff can successfully accomplish and control; and a limit on the key resources of people, time and money. Do we have what we need to accomplish what we’ve already undertaken?

What effect will this next idea have on available resources?

These analytical exercises came to mind in the wake of Sarasota City Manager Tom Barwin going public with the idea that he thinks it makes sense for the city’s future for taxpayers to purchase the Players Theatre property on the east side of Tamiami Trail, across from the Van Wezel parking lot.

Price tag: $9.5 million.

Go through the analysis.

Mission

If you parse the city’s mission statement while thinking of  investing or spending $9.5 million of taxpayers’ money on the Players property, be honest, it would be a stretch to say that property would fall under the rubric of providing high-quality services. 

When taxpayers think of city services, they want water and sewers; garbage collected; police and fire protection; and low taxes. They also want parks, of which this property might be a part.

But to purchase the property, the city will need to increase taxes — or cut services. Even if the city had $9.5 million sitting in a rainy-day slush fund, that would be $9.5 million unavailable for some other use in the future. If a big hurricane hits, the city will need money from somewhere. 

Call it an investment, but it also would be a new cash burden.

Here’s another reality: No one knows how long it will take before construction actually begins on redeveloping the 40-acre bayfront property. If you look at how long it took other cities to develop their performing arts centers or bayfronts, the timelines run anywhere from five to 20 years. It took Longboat Key 14 years to renovate its Bayfront Park.

Is that a good use of taxpayer money — to buy and hold? Not only would taxpayers be funding annual maintenance costs while it waits for something to happen at the Van Wezel site, there’s the opportunity cost: The city would be foregoing the cash from a private development paying much-needed tax revenue in perpetuity.

The city needs money. And the only way to grow its revenue is to increase taxes or increase its economic base. Owning this property would increase taxes and reduce the city’s economic base. That’s not “building a prosperous community.”

Span of control

Perhaps it’s our cynicism toward government, but rare is any government entity that is proficient in the real estate business. The city of Sarasota is no exception (e.g. former police station; former Selby Library).

City residents, we would bet, would much rather the staff focus on fixing traffic issues and lift stations; having a well-staffed Police Department; and a government regulatory climate that doesn’t choke, but rather encourages, more business. You know the old saw: If you’re not growing, you’re dying. Sarasota needs to grow to thrive. 

Let’s not overlook, either, such things as the $155 million in unfunded pension liabilities; constructing a parking garage on St. Armands Circle; whether to “invest” $12 million into the Bobby Jones golf courses; and funding the city’s necklace of roundabouts. Last year’s general fund budget showed operating revenue falling short of covering expenses by $1.4 million.

We’ve reported in these columns before how City Manager Barwin rang alarm bells that the city’s pension problems are unsustainable — and still haven’t been addressed.

While it may sound visionary for the city to purchase the Players property, in our view, the idea doesn’t fit the city’s mission, and it’s outside of the city’s span of control. 

Be prudent. Don’t do it.