Proposed U.S. Olympic Museum in Colorado Springs gets $500,000 boost
The Colorado Springs Convention and Visitors Bureau is giving $500,000 to the proposed downtown U.S. Olympic Museum - a significant step for project supporters as they race to meet a March 31 deadline to raise millions more in private funding.
The CVB's board voted overwhelmingly Tuesday to take one-half-million dollars from the agency's $1 million reserve fund and funnel it to the museum over three years, said Doug Price, the bureau's president and CEO. There's no timetable on when payments would start, he said.
"There's nothing that's going to generate out-of-area visitors more than the Olympic Museum," Price said of the project, whose backers estimate will draw 350,000 tourists a year.
"It will be a one-of-a-kind tourist attraction domestically and internationally," he said. "When you look at it, the economic impact over 30 years, it's going to generate $28 million in sales tax revenue. So, we look it at it as an outstanding return on investment for the mission of the CVB - to bring more visitors to Colorado Springs."
Dick Celeste, a former Ohio governor, Colorado College president and chairman of the nonprofit museum's board, said the CVB's commitment shows how strongly community members feel about the project and its potential impact on local tourism.
"It's important because they're professionals in the travel industry," Celeste said. "The money is important, but equally important is the evidence of local support."
There's a precedent for the CVB's commitment for the museum, Price said; in the 1990s, the agency helped fund the Broadmoor World Arena on the city's south side, he said.
The CVB receives 80 percent of funding for its budget from the Springs' tax on car rentals and hotel stays - know as the Lodgers and Auto Rental tax or LART. Other CVB funding comes from membership fees and website advertising.
The CVB's reserve fund is made up of money the agency dedicates for that purpose, Price said; leftover budget funds also can be rolled over into the reserve, he said.
Meanwhile, museum officials also have applied to receive $500,000 directly in LART funds, a request the City Council is expected to consider in February. A committee that oversees the Lodgers and Auto Rental Tax last week approved the museum's funding request.
At issue for museum supporters is a funding shortfall in their $75 million project - a proposed 60,000-square-foot showcase for the nation's Olympic and Paralympic movements. It would be built on a donated site at Vermijo Avenue and Sierra Madre Street in southwest downtown, not too far from the U.S. Olympic Committee's headquarters in the Springs.
The museum is one of four City for Champions tourism projects, which are eligible for state funding of up to $120.5 million over 30 years; the Colorado Economic Development Commission approved the funding in 2013.
At last check, museum supporters had raised $40 million in private donations. At the same time, they hope to receive a $26.2 million loan from a group of three banks; that loan would come in the form of proceeds from bonds issued by the Colorado Springs Urban Renewal Authority - the state-designated City for Champions funding entity - and purchased by the banks. State funds would be used to repay the bonds.
But as a condition of receiving that loan, the banks have given museum supporters until March 31 to raise the remainder of their private donations.
With the CVB's $500,000 commitment, museum officials now need to come up with $8.3 million, Celeste said. Another $500,000 in LART funds would close that funding gap to $7.8 million.
It's uncertain what would happen to the project if museum supporters miss their deadline. But Celeste said he's confident they'll reach their fundraising goal.
"We're going to be making a call the beginning of the week, starting some efforts with individuals in Denver," he said. "I think this is moving in a positive direction. It's never fast enough to make me happy. I'll be happy when we have it all in, committed."
Reported by: The Gazette
The CVB's board voted overwhelmingly Tuesday to take one-half-million dollars from the agency's $1 million reserve fund and funnel it to the museum over three years, said Doug Price, the bureau's president and CEO. There's no timetable on when payments would start, he said.
"There's nothing that's going to generate out-of-area visitors more than the Olympic Museum," Price said of the project, whose backers estimate will draw 350,000 tourists a year.
"It will be a one-of-a-kind tourist attraction domestically and internationally," he said. "When you look at it, the economic impact over 30 years, it's going to generate $28 million in sales tax revenue. So, we look it at it as an outstanding return on investment for the mission of the CVB - to bring more visitors to Colorado Springs."
Dick Celeste, a former Ohio governor, Colorado College president and chairman of the nonprofit museum's board, said the CVB's commitment shows how strongly community members feel about the project and its potential impact on local tourism.
"It's important because they're professionals in the travel industry," Celeste said. "The money is important, but equally important is the evidence of local support."
There's a precedent for the CVB's commitment for the museum, Price said; in the 1990s, the agency helped fund the Broadmoor World Arena on the city's south side, he said.
The CVB receives 80 percent of funding for its budget from the Springs' tax on car rentals and hotel stays - know as the Lodgers and Auto Rental tax or LART. Other CVB funding comes from membership fees and website advertising.
The CVB's reserve fund is made up of money the agency dedicates for that purpose, Price said; leftover budget funds also can be rolled over into the reserve, he said.
Meanwhile, museum officials also have applied to receive $500,000 directly in LART funds, a request the City Council is expected to consider in February. A committee that oversees the Lodgers and Auto Rental Tax last week approved the museum's funding request.
At issue for museum supporters is a funding shortfall in their $75 million project - a proposed 60,000-square-foot showcase for the nation's Olympic and Paralympic movements. It would be built on a donated site at Vermijo Avenue and Sierra Madre Street in southwest downtown, not too far from the U.S. Olympic Committee's headquarters in the Springs.
The museum is one of four City for Champions tourism projects, which are eligible for state funding of up to $120.5 million over 30 years; the Colorado Economic Development Commission approved the funding in 2013.
At last check, museum supporters had raised $40 million in private donations. At the same time, they hope to receive a $26.2 million loan from a group of three banks; that loan would come in the form of proceeds from bonds issued by the Colorado Springs Urban Renewal Authority - the state-designated City for Champions funding entity - and purchased by the banks. State funds would be used to repay the bonds.
But as a condition of receiving that loan, the banks have given museum supporters until March 31 to raise the remainder of their private donations.
With the CVB's $500,000 commitment, museum officials now need to come up with $8.3 million, Celeste said. Another $500,000 in LART funds would close that funding gap to $7.8 million.
It's uncertain what would happen to the project if museum supporters miss their deadline. But Celeste said he's confident they'll reach their fundraising goal.
"We're going to be making a call the beginning of the week, starting some efforts with individuals in Denver," he said. "I think this is moving in a positive direction. It's never fast enough to make me happy. I'll be happy when we have it all in, committed."
Reported by: The Gazette
