Mecklenburg county taxpayers forced to give $1 million to the failing U.S. National Whitewater Center.

WRAL:

CHARLOTTE, N.C. ? Mecklenburg
commissioners agree that the county is obligated to give $1 million to
the financially strapped U.S. National Whitewater Center.

The Charlotte Observer reported that commissioners questioned center
leaders for nearly an hour Tuesday night before agreeing that the
county owed the money as part of a pledge by six local governments.

No vote was necessary.

The center recently reported a $2 million shortfall and said it was
unable make payments on $38 million in loans used to build the facility.

Center executive director Jeff Wise says the facility is working
with lenders to restructure its loans while also looking at ways to
raise more money. But he says forecasts show the center’s revenue
falling about 20 percent this year because of the economy.

Did you get that:  “No vote was necessary.” County commissioners signed a contract that forces them to give taxpayer money to a failing facility. Our research shows that county taxpayers will be forced to give a total of $7 million to the facility, $1 million per year (see below).
Where was the county legal staff?  Where was the Local Government Commission?  Why would seemingly intelligent commissioners sign such a contract.  Obviously he or she was not thinking of county taxpayers.

But this is nothing new. See JLF City and County Guide 2008 for criticism of city and county subsidized restaurants, convention centers, stadiums, etc. It is not rocket science that these facilities fail.  Does Randy Parton Theater ring a bell?  We predicted the Whitewater Center would fail in the City and County Guide 2008.

Charlotte is home to the $38 million U.S. National Whitewater Center,
which consists of a man-made river, trails, lodge, and rock-climbing
center. Area governments guaranteed the center’s loans and promised to
cover some losses in the first seven years of operation. Predicted to
have 20 percent profits in its first year, the center posted a $1.7
million loss; it covered operating costs, not debt service. Now local
governments will pay. Mecklenburg County pledged $7 million ($1 million
annual limit); Charlotte, $2 million; other Mecklenburg and Gaston
County governments, $3 million.

(Thanks go to JLF Intern Abby Alger for her research on this project.)