Its seems the Wichita City Council styles itself as a holding company. Sure they do local government but they also do hotels, downtown redevelopment, museums and staking rinks. I think it's time to change the name to Wichita City Holdings (WCH for short) .
The Skating rink saga continues with the court awarding Canlan Ice Sports (the management company) US$ 119,000.00. (Wichita Eagle - no subscription required) This represents the amount Wichita City Holdings was obligated to pay according to the terms of the contract they voluntary entered into in 1996.
And who can blame WCH for wanting to renege on the deal? They didn't want to keep paying the management company and also have to pay for the losses that have continued to accumulate. Who would? Unfortunately for WCH that's how capitalism works - fail to provide services that consumers demand and you will find that your revenue will not be enough to cover your expenses. A rational investor would realize it's time to liquidate this investment and find a new opportunity.
Unfortunately for taxpayers Wichita City officials are oblivious to such reasoning. After all they can just raise taxes to fund the ice skating rink. But if consumers don't make it viable now why should city officials be allowed to 'legally plunder' the wealth of those of us who have no interest in ice skating. I have just one word of advice for the officials of the Wichita City Council - privatize.
What a great short story on the WCH. I've been seeing this for years and I cannot understand how the city can spend my tax dollars on failing business principles that the WCH uses to make decisions. These folks need some continuing education in Market Based Management. Also they need to run a city and not a WCH...jb
Posted by: Jon Baxt | 28 July 2005 at 01:37 PM