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January 23, 2019

7/3/2009
Bucket's Got A Hole In It
The City of Shelbyville built a conference center at Intelliplex Park with a $1.2 million Certified Technology Park Grant from the State of Indiana and a $400,000 city loan to the Shelbyville Redevelopment Commission. The 4,500-square-foot publicly-built conference center is connected to two 20,000-square-foot wings of a privately-constructed office building.

City officials declared the new Conference Center to be "the showpiece of the Intelliplex development" and a "cost-effective means to offer additional incentives for businesses to locate at Intelliplex."

On February 1, 2007, the Shelbyville Redevelopment Commission selected Tubesock, Inc. to manage the Conference Center. Since then, the building has been available for rental to both businesses and residents.

Yet despite full-time, paid management, the conference center facility has failed to produce significant rental income.

A review of operating expenses and revenues during the most recent 17-month period shows the Conference Center is operating in the red. The Conference Center produced a net operating loss of over $51,000 in the 2008 calendar year and is on schedule to lose even more in 2009. (See itemized details of Conference Center operating expenses and rental income at the end of this article).

Shelby County has an abundance of public and private meeting rooms, so a city-owned conference center has never been a crying need in the community. Most local observers recognize construction of the Conference Center was predominantly tied to the ongoing Intelliplex development.

Now, however, the Intelliplex Conference Center is costing the city over $50,000 a year to keep the facility in operation.

Honestly, how "cost-effective" is that?

And for how long can the city sustain $50,000 in annual operating losses?

At some point will the Redevelopment Commission be forced to sell the Conference Center? Perhaps at a loss? Just to get out from under the expense? If so, who would buy it? I wonder? Hmmm...

Meanwhile, the mayor pretends to be outraged at the prospect of paying $57,000 per year (a little over four dollars per square foot) for the Shelbyville Police Department's share of occupancy costs at the Criminal Justice Center.

The mayor and a handful of advocates seem hell-bent on walking away from Shelbyville's 16-year, $5 million investment in the Criminal Justice Center. Preferring instead to spend an additional $2 to $3 million to purchase and refurbish a church for a redundant Police Headquarters and other expansions of city government offices. Even though informal polls show an overwhelming majority of residents opposed to such a plan.

One minute a scrooge. The next minute a spendthrift. How curious.

At any rate, the mayor has neither demonstrated an actual need nor has he presented a convincing argument for purchasing the church and moving the Police Headquarters out of the Criminal Justice Center. Cramped city government office space is not a compelling argument, it's a testament to government growth. Also, the main constituents of elected city officials are city residents, not city employees. Perhaps members of the Shelbyville Common Council should keep that in mind when the mayor requests funding for his spending projects.

And finally, if it can be proved that the city actually needs to expand government office space, there are several available rooms at the city's underutilized Conference Center.

Intelliplex Conference Center Operating Expenses follow:

2009 Y-T-D Rental Report (5 Months)
(Year-to-Date January thru May 2009)

2009 Y-T-D Rental Income: +$375

2009 Y-T-D Expenses: ($26,094)

2009 Y-T-D Net Operating Loss: (-$25,719)


2009 Y-T-D Rental Income (Itemized):

Jan 15 - McNeely Law Office - $200

Feb 17 - Energy2Action - $50

Mar 4 - Maria Comstock - $25

Apr 2 - Shelby County Ag - $100

Total 2009 Y-T-D Rental Income = $375


2009 Y-T-D Expenses (Itemized):

Tubesock, Inc. - ($15,088)

RushShelby Energy - ($4,107)

Vectren Energy - ($3,634)

Lightbound - ($1,000)

Plymate Mats - ($890)

Shelbyville Public Utilities - ($276)

Indiana American Water - ($296)

Simplex Grinnell - ($411)

Rush Hickman Electric - ($242)

Glanton Pump - ($150)

Total 2009 Y-T-D Expenses = (-$26,094)


2008 Rental Report (12 Months)

2008 Rental Income: +$2,245

2008 Expenses: ($53,501)

2008 Net Operating Loss: (-$51,256)


2008 Rental Income (Itemized):

Jan 2 - Gretchen Morgan - $100

May 15 - Leadership SC - $150

Jun 23 - Muncie Bible - $550

Jun 27 - Irwin Union - $130

Jul 15 - Energy2Action - $120

Jul 15 - SMR Ventures - $200

Sep 22 - McNeely Law Office - $195

Sep 24 - Blue River Education - $50

Oct 20 - Major Hospital - $250

Dec 8 - Major Hospital - $250

Dec 29 - Southeast OB/GYN - $200

Dec 31 - Energy2Action - $50

Total 2008 Rental Income = $2,245


2008 Expenses (Itemized):

Tubesock, Inc. - ($33,205)

RushShelby Energy - ($9,750)

Vectren Energy - ($4,495)

Lightbound - ($2,400)

Plymate Mats - ($1,204)

Shelbyville Public Utilities - ($846)

Indiana American Water - ($694)

Simplex Grinnell - ($411)

Shelby A/C & Heating - ($346)

Glanton Pump - ($150)

Total 2008 Expenses = ($53,501)



Reader Comments

Posted: Tuesday, July 14, 2009
Article comment by: Kate Smith

Thanks, Dee, for finding these numbers.
Is that true--that tubesock is owned by a city council member? Wouldn't that be a pretty clear violation of ethics? Is there something that could or should be done with this information? Is there a state agency that oversees such things?


Posted: Saturday, July 4, 2009
Article comment by: joe dirt

Has the 400,000 from the waste water fund been paid back? If so where did that money come from?


Posted: Friday, July 3, 2009
Article comment by: Screwed Taxpayer

So what is Tubesox doing to justify the multiple thousands of payments going to that company which is owned by a member of the City Council?

Of course, that question will never be answered in the local news media as we never found out why Evergreen Investments was paid hundreds of thousands of dollars to "develop" the Intelliplex grounds, etc.

FBI, anybody????????

Shelbyville: City of Screwed Taxpayers.

Should be on the signs coming into town.




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