From: "Michael Hohmann wrote:

> Why aren't state legislators and Library Board/mgmt/Friends debating how
to
> finance the Minnesota Planetarium and Space Discovery Center in the new
> downtown library, employing such innovative schemes?  Maybe a combination
of
> gov't. loans and capital bonding, and a %age of matching funds from the
> private sector, (two-thirds state funds- loans & bonding, one-third
private
> matching), sell naming rights and branded meeting rooms... think Carlson
> School, etc.  Lease time to colleges/universities; have traveling
exhibits.
> The loan could be repaid from a portion of the planetarium gate fees over
a
> 15-20 year period.  Do some innovative planning/marketing and make
> planetarium revenues a part of the equation. [A deal where contraction
isn't
> an issue, most staff and management aren't millionaires, the private
sector
> loves the place and uses it, a majority of the Board are elected by the
> public, there's no need for salary caps, and Minneapolis voters already
> agreed to pay for nearly 80% of the project- the central library and
> planetarium. The Minnesota Planetarium and Space Discovery Center is a
> statewide educational resource-- let's pony up some statewide resources!]

The Planetarium is part of the new Central Library.  The funding for the
referendum did not include the Planetarium, only the library.    (As you
note, the Planetarium is a state resource and appropriately should be paid
for out of state resources.)  The Library is currently under construction.
You need the money now to build the Planetarium .  You can't wait so see
what fund raising you could do or what corporations may do.  You have to do
whatever you are going to do now.

You could sell bonds to pay for the planetarium.  The problem isn't in the
borrowing of money but in the paying back of the money.  Usually you can't
borrow money unless you have a secure way of paying it back.  Typically you
can't sell bonds based on the revenues from fund raising because you can't
guarantee that any of the money will be raised.  It isn't clear that gate
fees will cover even the operating costs of the facility much less capital
costs. Typically colleges and universities don't have a lot of revenue and
would not be able to pay large rental fees.  You fall back to a general
revenue to be able to fund this facility.  But this is typical for
educational institutions.  We don't try to fund elementary schools through
fund raising.  We see a general benefit to citizens and thus fund it out of
general revenues.  A specialized educational facility like the Planetarium
should be no different.

Carol Becker
Longfellow








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