Fun With Numbers: The FedUp Forum

Seems yet another lawsuit is coming from yet another contractor having problems being paid for work done on the FedEx Forum. It puts the total sued for close to $6.5 million, not including lawyer's fees.

But buried down deep in the story is the eye-opener:

Troshinsky said only "a handful" of subcontractors still have claims. Before they're settled, Mortenson is awaiting a $1.3 million payment for its own change order. That payment would come from the New Memphis Arena Public Building Authority, which has indicated that Mortenson could be paid from $1.4 million that remains from funds set aside to pay 2003 windstorm costs. The city and county must approve the use of that money.

the City is going to divert money from windstorm damage repair to pay for the Forum, which supposedly came in on time and under budget at $250 million. I'm really getting sick of being misled all the time by Forum boosters on that $250 million tag.

We already have close to $8 million in work change order payments yet to be made. There's the $35 million in unpayable debt on the now-closed Pyramid, plus the $500,000 to $1 million it takes to keep the building closed but functional. There's more money being spent on consultants to figure out what to do with it. There's somewhere between $12 and $16 million being spent by the City to fix up streets and sidewalks around the Forum. There's the revenue shortfalls from taxes and fees not meeting expectations in the new Forum (taxes on ticket sales, food and beverage, merchandise vendors, etc.). There's the unguessable loss of revenue and tax revenue from shows lost by the Forum's "first refusal" clause on local concert and event promotions. Memphis biggest promoter of events using the Pyramid, Colosseum, etc., (Beaver Productions) has moved his bookings to DeSoto County.

This is just the stuff we know about, and already it's nearing or topping $300 million. Remember that next time someone wants to peddle the "$250 million" price tag. We've already busted it by 20%. How would you feel if the computer or car or home you bought had 20% in surprise, excess costs?

Here's the City filching money from residents who paid for storm repair to fund the FoistedOnUs Forum.

Don't even get me started on how the City is also using construction permit and inspection fees, which all new construction must pay, to demolish the old Baptist Hospital site for the BioMedical Research Initiative. It's not a legal use, but that's not stopping the City.

Three Card Monte Herenton just keeps shuffling the cards fast enough around the table, hoping you'll never keep up. But remember this when he asks for more money. Ask him where the current supply is going.