Jeff Dankert
Staff Writer To prepare and provide for the July 13 Kid Rock Concert for a Cause at the Illinois Valley Regional Airport, the city of Peru had a net cost of $22,809.06. But some of this was one-time cost. More events could increase the city’s hotel-motel tax. In short, the city of Peru might now have an airport/concert venue with a capacity of 15,000.
“This is a perfect venue for this,” city treasurer Gary Hylla said. “Where else could you see something like that? You’d have to travel all the way to Chicago, Peoria or Moline.”
Hylla credited Mayor Scott Harl with tackling roadblocks. The concert achieved a hurdle: It was a non-aeronautic activity at an airport, an airport supported by public money via the Federal Aviation Administration and state Division of Aeronautics. Now that it succeeded, the city could regularly use the airport for large concerts and events. It’s important that the airport fund suffers no losses, said Hylla. “We want to make sure the airport is made whole all the time,” he said. The city outlined costs in a report it prepared for its meeting last week in Springfield with state and federal airport officials about the concert. The airport received $15,364. This included $9,000 under an agreement that concert promoter Merry Noonan of Lou’s LaGrotto restaurant would pay $1 for every ticket sold. This was considered reimbursement for fair market value for the event, Hylla and Harl said.
“They were very satisfied with what we showed them,” Hylla said. The city also paid the airport $6,364 for loss of farm rent on 32 acres of former cropland converted to grass for parking.
Each year the 32 acres of tillable land are converted for parking, the city would pay the airport fund the fair market farm rent value, said Hylla and Mayor Scott Harl. Noonan also reimbursed the city $4,080.22 for police security.
The city absorbed costs for grass seed ($4,030), grass seed planting ($4,173.76), engineering costs for parking ($3,889) and engineering costs for maps ($1,461.50). These are one-time expenses that would be covered by hotel-motel tax, Hylla and Harl said.
The city also incurred costs through public works ($2,217), legal expenses to prepare a contract with Noonan ($525) and fire department expense ($148.74). This and the annual farmland rent would bring the city’s annual cost, at the most, to $9,000.
“Through further concerts or further events we have up there, we’ll start to recoup that money,” Harl said.
Hylla said the city is seeking ways to make it profitable. It could charge for parking. And while “intangible,” Hylla said, visiting crowds could bump up sales tax and hotel-motel tax.
“It’s very easy for the city not only to break even but to make money,” Hylla said.
Jeff Dankert can be reached at (815) 220-6977 or perureporter@newstrib.com.
36 comments:
more money for noonans mansion in the lakes and free beer and pizza for our mayor and his buddys . thats all it about !
Dalzell had a chance to put themselves on the map and they blew it. This could be a big opportunity for the future. Concerts are a big draw.
WHATS HYLLA GOING TO DO AFTER APRIL ? BETTER START LOOKING FOR A JOB NOW !! HOPE NEW MAYOR CLEANS HOUSE !!!
Concerts may be a big draw but the city would have to prove to the people that it's profitable for the citizens. As alderman Radke requested proof in writing of Dairy Queen's money loss I think proof needs to be presented to the residents of Peru that this venture would be profitable to them. Does anyone know how much was donated to the cause and how much Noonan profited? Rumor has it that she makes a bundle. We have a lot of work that needs to be done in our city. We don't need to add more work to our list to future "Concerts for a Cause". We keep referencing that our hotel/,motel tax increases with these concerts. Has anyone ever done an actual study and proven by how much?
10:41 another post on the blog on the concerts showed the illusion of the additional hotel motel benefits. To become actually profitable they will need to start charging normal venue fees and auditing the concerts. ( No more nice round number attendance) and publishing by independent audit the concessions sales to verify their percentage of sales tax.
The actual estimated hotel bump is closer to $1500 to $2000 with a complete sellout of Peru hotels (some of that is actually Oglesby) .The actual revenue, estimates and all airport issues will be discussed and available during the election campaign for the new mayor. You may need to read it in different papers though, the News Trib seems to accept whatever comes from the city officials and Ms. Noonan . Every citizen will have the opportunity to review the concerts and the unusual relationship the city of Peru has with this Concert Series in great detail if they wish, from first one until the most recent. What they choose to do with the information will be up to them. But the mass distribution is already a done deal. It ain't pretty.
11:12 AM
I look forward to the actual numbers and some honest disclosure. What does this city do for the majority of its citizens in addition to providing basic services. Some people do not like that the city pays for the Band Concerts but that happens to be one of the few things done for that segment of the population. I very much don't like the location that they must be insisting upon Why not use the lovely area called Rotary Park alias City Park that is off the main highway? Who is pulling the strings to keep it at the Maude Powell Plaza?
In previous years they held concerts at Centennial Park, what has happened to that?
And now they want the Peru Airport to be used by a private individual to host her "for profit" concerts for a possible small or non existent amount of sales tax to the city of Peru.
I am begining to believe they the city does not wish the word COMMUNITY to be a part of our vocabulary.
It hasn't been that long ago that the majority of Peru voted for one of three candidates to manage the government affairs of the city. Presently it appears that the winning candidate did not realize this but thinks he has been elected to fulfill his dreams of a second childhood. Peru does not need a concert promoter or a wedding official as Mayor for another term but does need someone who understands the mission of Mayor and the vision to fulfill the needed goals to make Peru successful. Somewhere in the last election many voters lost the way and should and will make amends in the next election to acquire someone who wants to utilize Mayor time to be Mayor.
Concert situation sounds like a nice opportunity for Peru to promote itself and provide an opportunity for even more diverse events. Imagine the profit potential if the city were to require the promoter to share in the take from just the concessions. The city holds all the cards and would be wise to leverage Ms. Noonan a little bit for a cut of that action. With new ideas and a chance for the city to profit from these events there is no reason for anybody to oppose this concert venue.
Except of course those few narrow-minded bloggers who are intent on bitching about each and every issue that arises in this city. You people really need to open your minds a little.
There's a really big and exciting world out there people.
Lighten up and get a clue!
You must be referring to the Maud Powell Memorial location. Where could you find a more accommodating area? To the west is one of the tallest buildings in the area with a brick wall, to the north and a brick building to the east all three stopping air movement. To the south is a state highway-Route 6. Six adds to the rhythm of the band with horns tooting, motorcycles roaring, trucks sounding off and a constant stream of car noises all of this done to the heat of exhaust pipes and their fumes, Now not only being surrounded by brick structures you have a nice hot floor of brick to place your chair over and if the sun is the optimum direction their are no trees to provide shade.
Are you sure you would like to trade all this kin for the original Veterans Park, after all who wants to sit their chair down on a beautiful grassy plot with the largest, oldest and most beautiful monument to our area soldiers for an unknown amount of miles. Besides this is one full block off the highway with a full square block of seating and covered with shade trees. This park also has playground equipment besides benches and tables for full family activities while a concert is going on.
With very little effort it makes way too much sense to have the concert at the original Veterans Park so please don't bring this suggestion up again. Who in their right doesn't enjoy sucking exhaust fumes at the Maud Powell Memorial while being able to hear a half of a song in unshaded 90+ degree heat. Why not take the Rotary Park, rename it the Johnny Kaye Park and do musical entertainment for all ages. Makes more sense than hard rock at the airport. John Kaszynski was a local boy. Maud Powell was here long enough to have a baby bottle of milk and Kid Rock was here long enough to smoke a _ _ _ _ _.
To 11:12 a.m. - My goodness. Aren't you the busy little beaver. I'm sure you are going to blow the lid off of this outrageous scandal.
I assume you want us all to assume this actually is a "scandal".
Correct?
Looks like the city got a good screwing for over $4000.00 in labor to seed those few acres. What a joke! In addition to free beer and pizza I wonder how much kickback is under the table.
Does it really matter what Ms. Noonan is profiting? She is backing the concert financially 100%. She gives money to which ever charity she chooses. If you care to look into the past, over $400,000 has been donated to local schools and charities, more than any one of us on this blog has donated. She is doing this for the good of the community, concert by concert, putting Peru on the map for tourism. Like the article said, these one time expenses would be covered by hotel-motel tax. I still do not comprehend why people are complaining/whining about concerts at the airport. No rules or regulations are being broken, no one's home is in jeopardy. It is bringing 10's of 1000's of people to our small community. I am just hoping that our good citizens have not ruined this for the future.
Lucy, 99% agree with you but that hard to satisfy 1% will continue to use their big mouths to knock anything and everything the city does.
1:55 PM
My point is that a community has to be more than a city that "attracts" thousands of people to a municipal airport for a privately hosted concert. The money generated by the city is not enough to justify the expenses. I would like to know how many of the concert goers were from Peru? Only Peru and its departments because we the taxpayers are the ones who will always pay and provide if needed security, liability, fire protection, ambulance service if required. The city is not financially in a position to take this on. Look around at the work that has been done and needs to be done within this city and the money it will take. We have not even been able to take down the old swimming pool or power plant without problems arising. We don't need to take on another "maybe it will work" issue.
Well said, Lucy! Just keep the mindset that you come to this blog for entertainment. The vast majority of reasonable people aren't going to come on here to try to argue with people who throw a fit over grass seed. Cities do these things all of the time, and it does cost some money. And for the fool that thinks Gary Hylla deserves to be fired......of course you cannot be serious.
The worst thing going in this community is this blog as other people judge the rumors and nonsense as fact and how everyone here thinks. Wrong. We are still a pretty progressive community with low taxes, a great elementary school disttrict and yes even low utilities. Compare anywhere around! the proof is in the numbers! We are not perfect, but some of you whiners need to run for office or shut the hell up.
3:25 PM
Gee what ruffled your feathers? Is the truth irritating them?
12:54 Lucy there are many things of which you are unaware regarding these concerts. Or perhaps you are aware of them.
12:23 I have not been a busy little beaver, simply one of what I assume to be many in and out of city service who have been interviewed. As for whether there is any scandal, like I said before, that will be up to the electorate to judge.
I do get a little tired of people saying everything is fine no matter how low the percent of Charitable proceeds has been or how the city unusually subsidizes one business. I also tire the of the few who complain about the concerts without taking formal action, so I also hope for resolution soon. I agree blogs are not the place for many comments or formal accusations.
3:25 Actually cities rarely do things like this , and for very good reasons.
It looks to me like the airport needs to be taken away from the City of Peru. As much as it pains me to say it, there are reasons Illinois has so many "special districts" and "mini-government bodies." Illinois law has provisions to create a Regional Airport Authority. 500 signatures on a petition gets it on the ballot. I hate extra government bodies - but I think that is the only way to ensure the airport is used correctly. The airport is a transportation asset - not an entertainment venue. What is next... Is Mayor Harl going to "pull a Daley" and destroy the run ways in the middle of the night so he can make a park? Rember that little trick with Meigs Field? All in the name of creating an entertainment venue.
3:25 Did you come on this blog for entertainment? Apparently it's more than that because you commented on this blog. If it was strictly entertainment to you,you wouldn't comment - you'd just read. What makes you think that those who post on here don't have lst hand proof of what they post? What makes you think Lucy's comments are reputable but others are not?
Brian
Think of what you are saying. Is Peru government really so out of touch that an airport that size needs it's own Airport Authority? People throw out that 99% figure supporting everything from concerts to private sports clubs in peoples back yards. Just because Hylla says so does that mean 99% of Peru thinks it is a great idea? Is that what Peru has become? A big party?
This really is disgusting.
4:01 anon....what am I not aware of? Please, I am dying to know what else there is to complain about. This blog is entertainment. A place for people to voice their opinions to the select few who want to read this. I actually enjoy reading people's opinions and voicing mine.
My personal opinion....I don't want to see this city miss out on a good opportunity.
Lucy
If you do not know already than you can wait until everyone else is made aware I guess.
As for your participation and sharing your ideas, over the history of the posts, they seem to crop up whenever the concerts are in question, and they consist primarily of blind support for them. They also state that no one should care about the proceeds distribution, and that is something I disagree with as well as many others.
I agree that the concert promoter assumes the risk of the guaranteed front fee for the entertainment, and the risk that nobody will buy tickets. But many other front end and back end fees have been subsidized by the city AND the actual charity receiving the funds- and no one knows the details of the agreement between the promoter and the entertainment.
Promoters who buy weather insurance and offer no refund due to unforeseeable events as a stated policy minimize their risk. If the venue charges are covered by municipality, front end and back end fees are covered, the promoter is on the hook only for insurance and deposits for stage and event services. The problem is, no one knows because they are not publicly audited, although they are public fund supported. It is a cash driven concession operation, which is where most concert venues make money. Maybe all is great and on the up and up. But given the statements that the promoter is always so close to losing money, I do not see why there is such a strong desire to continue at such great financial risk. The charity donation amounts are comparable to many local fund raisers. Why such risk taking and strong government involvement in a risky private enterprise? Maybe you know the answers to that. To me, it does not make fiscal sense for the government given the minimal hotel tax bump and tourist income. But you think it is a great opportunity. That's what makes the blog great for different opinions.
READ THIS!!!!!!!! WOULDNT IT BE INTERESTING IF NOONAN WHEN TRYING TO BOOK ARTISTS PROMOTES THIS CONCERT TO THE BOOKING AGENT AS CHARITY. DOES NOONAN DISCLOSE HER PERSONAL REVENUE OR DOES SHE
SAY ALL PROCEEDS GO TO CHARITY. SOMEONE SHOULD MAKE A FEW CALLS TO THE BOOKING AGENTS FOR ALL THE CONCERTS THAT NOONAN HAS PROMOTED AND SEE WHAT SHE TOLD THEM. Artist perform for less money thinking that all revenue goes to a charity! !!!!!! WOULD BE INTRRESTING!!!!!!!!!!!!!!
I meant ALL REVENUE AFTER ALL EXPENSES PAID FOR CONCERT. DID NOONAN PROMOTE IT THAT SHE WOULDN'T BE PROFITTING FINANCIALLY. ???????
5:49
The details between two private businesses when setting a music performance agreement are not , by law, required to be disclosed to the public. The city could of course stipulate in its ordinance agreement that they be copied on all finalized agreements for performance guarantees, gate cuts, concessions cuts as well as requiring independent audits of concessions to obtain a cut of those revenues as well. But that would of course mean the public could see them through FOIA. I believe that even if the mayoral challenger supports these concerts, much more disclosure and revenue sharing will be required.
This is the standard practice at professional music venues across the country. It is also the norm at Farm Aid and other charity concerts. Venues typically are paid on a base percentage of gate, concession, and usually take a large portion if not all of sponsorship revenues to cover their variable costs depending on artist and anticipated size of the crowd.
Sponsors are what generally make the larger concerts possible at many venues, since attendance is so variable, the sponsors cover the fixed cost of the venue. They won't let a promoter book their venue on the simple promise of a cut of gate. The venues cost is covered then, whether the show sells out or not.
Professional concert venues holding crowds of these projected capacities seem to have more stringent requirements in many areas than the airport has had in the past. If the FAA had not stepped in, you wonder if even the weak ordinance passed for Kid Rock requiring some payment would have ever happened. During the campaign, I would guess this will become a major issue.
Since concerts involve more than $20,000 (twenty thousand dollars) how is each individual item going to be put out for bid? How will the city clerk make sure that all promoters are contacted to get the best deal for the concert. The big money maker, sales of alcohol will no longer be allowed since the City of Peru is using the concert as a money maker rather than a charitable event it will have to enforce its own ordinance that they cannot be issued a liquor license.
How was a special license issued at the last airport concert since the profits from alcohol sales are being paid to a private business rather than a charity? Liquor Commissioner - Mayor what is your answer since this is under your bailiwick?
There is a significant lack of justice in a government body that operates under the philosophy that it is easier to ask for forgiveness than permission.
8:30
I think the city plans to rent out as a venue. The promoters of the special events will need to make the arrangements you are talking about. I wonder if the 4th of July can be held there. Maybe next to the big fuel tank.
Your point about the Special event liquor license is a very good one, and one that has not been answered to anyone's satisfaction. I believe Kristy is the expert on that one.
WOULD KID ROCK HAVE COME TO PERU TO PERFORM IF HE KNEW THAT NOONAN WAS ALSO PROFITING FROM SALES REVENUE OF CONCESSIONS? OR DID NOONAN PROMOTE CONCERT TO KID ROCK AS ALL PROFITS GO TO CHARITY. This concert was actually a small venue for kid rock. Did he perform because it was charity not knowing NOONAN profits from it. OUT OF KINDNESS KID ROCK PERFORMED??????
I'm sure Kid Rock performed because it was financially advantageous for him to do so.........he got paid! As every other performer and band has been paid. Ms. Noonan gets paid as well with the profits after expenses and the amount she gives to charity. Face it folks its just one big Monopoly board and everyone gets paid or they wouldn't be doing it. What's wrong is when tax money is being used for this private gain.......investigate, locate and expose. The light has a way of cleansing things but it takes work to dig thru the dirt and camouflage to expose what's really going on. Keep up the good work and fight the good fight.....
Anon 8:30 Your subject of the legality of issuing a special permit liquor license in the most regulated business in the United States is one that must be explored.
The liquor laws are enforced by the City Liquor Commissioner, the State Liquor Commission and the Federal Alcohol and Tobacco Division. This enforcement is not one of trail and error but one of laws and ordinances which have legal steps which must be followed by everyone involved. This administration has been a example that the weakest link in the chain is the City Liquor Commissioner who holds this office only because he has been elected Mayor rather than his qualifications. This position has been utilized to secretly boast the Mayors yearly salary. What is the Mayors yearly salary for being a part time Mayor and what is his yearly salary for being Liquor Commissioner or is it presently being hidden by combining it within the Mayors salary? Similar to taking a earmarked sum and putting it in the general fund and than drawing it out for what a city treasurer wants it to be used for rather than what it is intended for.
10:57 I am just saying there is no way to force Kid Rock's management to divulge the terms of the performance. He may have discounted his guaranteed up front money, which for big acts can range from 250k to 500k, plus a cut of concessions. That is the minimum guarantee, and generally the gate is split 85/15 in favor of the performer for A list acts. At least for this concert there is some firm attendance figure, even if if it is oddly a round number of exactly 9000. You only need multiply the ticket price by the attendance to get the gate figure. Usually that is audited pretty tightly by big time acts, because concerts and promoters generally get a pretty bad rap as far as lawsuits with all the cash transactions. It is a strange business for a city to sponsor.
If the promoter tries to negotiate more favorable terms based on a charity concert claim, there is no way to find that out unless the Performer is compelled in some way to divulge that information. In short, asking Kid Rock is not going to get you very far. How deeply his front people investigate a promoter is impossible to know.
Kid Rock did raise one million dollars for the DSO in his hometown on a single concert with only 5000 attendees, so he has some history of playing free or close to free for a charity event. With these concerts we have no idea how much the bands donate or discount their normal rates. Up until recently, citizens hardly knew anything at all except a check got cut to a local charity for between 20 and 40 k. If the average person ever does the math, they might be upset with it, they might not. People pretty much like to party here. Nobody gets to worked up about stuff like this.
Hey Lucy, every mother should support her daughter. Plus she sells your pizza, for a very expensive amount at the concerts. So we expect you to support Merry.
Peru = Booze.
They can't have one without the other. LOL!
Personally I think its way past time for the present government of Peru to turn this airport strictly into a airport,quit wasting a complete four year term with foolishness i.e. concerts, fireworks, public comment rulings, financing of large corporations etc. and be lead for what they have been elected for. GOVERNING THE CITY OF PERU
Anon 9:37 Good thinking. The Mayor has no business taking tax payers finances and investing it in support of private business such as the concert. He promised to get this money back to the taxpayers and than has reneged. He has the ethics of many of our Illinois politicians.
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