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March 6, 2005
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| Duluth's Aquarium is asking for an indefinite subsidy while it works to boost attendance. (MPR Photo/Bob Kelleher) |
Duluth, Minn. — Built in 2000, the Great Lakes Aquarium cost about $36 million. About half of that money came from bonds issued by the state. The aquarium is supposed to pay back those bonds. And if it doesn't, the city of Duluth is on the hook.
City Councilor Russ Stewart says legislative leaders were skeptical of attendance projections for the project.
"So the city had to promise to keep it open," Stewart says. "Looking back, that was a foolish decision. But it would look bad at the legislature if we didn't honor that commitment."
The city has already forgiven its share of construction costs, nearly $7 million.
Attendance consistently falls short of projections. The president of the Aquarium's board of directors, Pat Schoff, says that's partly because people don't know it's open.
"When the mayor closed the Aquarium in November of 2002, that was a big headline down in Twin Cities papers," Schoff says. "When he re-opened it within a week, that was on page 20, and people just don't know it."
The Aquarium has always suffered from a mild identity crisis. Is it an educational institution, like a museum, or is it a tourist attraction?
It has strong educational programs for school children and adults. Some people say it's boring because it concentrates on Lake Superior fish and animals.
Pat Schoff says the educational mission comes first, and always will.
"On the other hand, we're also an entertainment," he says. "In order to educate people, you have to get them in the door. So we've tried to enhance the visitor appeal, make things a little flashier."
Two years ago the Aquarium hired Ripley Entertainment to manage the facility. Pat Schoff says Ripley brings experience and creativity that make it well worth the roughly $200,000 per year management fee.
The Aquarium is asking the city for a $300,000 subsidy, every year for the foreseeable future. Most city councilors seem to feel they have no choice. Including Jim Stauber who is known as a fiscal conservative.
"If we were to close the aquarium, which seems to be almost the only other option, we would still have tremendous debt to pay and no revenue to pay it off," Stauber says. "So this option is least expensive, and has the smallest impact to Duluthians. And the good news I think will be that we will make a final decision, and we don't have to address this every six months or every twelve months from here on out."
But it could open a Pandora's box of requests from other tourist businesses. Sam Maida at the Lake Superior Zoo says everyone needs money for marketing and building new displays.
"Since we face those same challenges, we certainly could use an infusion like that as well," Maida says. "And that's probably true for a lot of area attractions."
Other attractions doubted the rosy attendance projections when the Aquarium was built. And they didn't want to have to split the tourist dollar with any more venues. But now that it's there, they don't want the Aquarium to fail.
Part of the Aquarium's request would pay for tanks for a saltwater exhibit from the Ripley aquarium. It's called "The Abyss," and it was created by Titanic discoverer Robert Ballard.
Duluth Aquarium board chair Pat Schoff says that could boost attendance close to the break-even point.
"I don't expect that the education program on its own would ever be self-sustaining. You don't expect that from an education facility," he says. "But I do expect that we can develop an entertainment facility that will draw enough people, so that it will support the educational mission."
There's another complication. The Aquarium owes an unknown amount in legal fees from a dispute with one of the firms that built the facility. Some city councilors say the Aquarium hasn't been up front about that matter, but Pat Schoff says the Aquarium's attorneys won't let him talk about it.
The city council is expected to take up the request early next week.
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