Fargo approves December 5th special election for Fargodome expansion, remodel

[El_Chapo]

So the total increase on a $200k purchase in Fargo would be ... drum roll please ... $6.25

THAT ^^^^ SHOULD BE PUSHED IN MEDIA NON STOP UNTIL Dec 5

[Hammerhead]

The 2500 cap in Fargo is a big deal

That was probably initiated to prevent auto and farm equipment dealers from being at a disadvantage due to local tax rates.

[Grizzled]

So the total increase on a $200k purchase in Fargo would be ... drum roll please ... $6.25

If that’s not a huge deal just add it in to the entry fee of every attendee to a Fargodome event. Whether it be additional charges to a ticket or pass. For conventions it doesn’t seem like a big deal to add to a booth space or event.

[BigLakeBison]

If that’s not a huge deal just add it in to the entry fee of every attendee to a Fargodome event. Whether it be additional charges to a ticket or pass. For conventions it doesn’t seem like a big deal to add to a booth space or event.

Except that the number of event attendees is far less than the number of retail sales transactions so the fee on the event would be much larger as a a percentage in order to generate the same total dollars.

[HerdBot]

If that’s not a huge deal just add it in to the entry fee of every attendee to a Fargodome event. Whether it be additional charges to a ticket or pass. For conventions it doesn’t seem like a big deal to add to a booth space or event.

Do some math and you will realize the proposition is preposterous.

Fargo did 3.3 billion in taxable sales last year and its growing 8-10% per year. A quarter cent generates 8.25 million a year

Gross hotel sales were 95 million last year. That's 2.85 million a year.

Combined that is 11.1 million a year if we never grow. Realistically we should pay this off in 10 years.

Lets see how a ticket fee works

1) Ticketmaster generally controls tickets and we have no authority to add fees to their tickets

2) Live Nation, who uses ticketmaster, promotes 90% of concerts. Why would they choose a venue that is uncompetitive. Grand Forks and Sioux Falls dont charge user fees. No venue anywhere charges a $6.25 user fee. That's more than parking

3) This year NDSU is averaging 15,000 x 6 games for 90k attendance. 90k x $6.25 a ticket is only 585k. Most years, we would fall in the 750k range. Best case, lets say we sell out every game and 3 playoff games every year. Thats only 1.068 million and it wouldnt grow 10% per year. No where near the 11.1 million

750k would only generate 15 million over 20 years and it wouldnt even cover half the convention center, much less the bond payment

Besides, why should NDSU fund 100% of the project. What Re we going to charge High School games $6.25 a ticket? Nobody would go

[abc123]

Do some math and you will realize the proposition is preposterous.

Fargo did 3.3 billion in taxable sales last year and its growing 8-10% per year. A quarter cent generates 8.25 million a year


1) Ticketmaster generally controls tickets and we have no authority to add fees to their tickets

I thought there was a cap on large purchases? Seems like that number would be incorrect.

You can absolutely add a venue fee to tickets.

[BigHorns]

If that’s not a huge deal just add it in to the entry fee of every attendee to a Fargodome event. Whether it be additional charges to a ticket or pass. For conventions it doesn’t seem like a big deal to add to a booth space or event.

Surcharge would be closer to $15 or $20 per ticket than $6.25.

Events are also price sensitive. Some convention center events they nearly give tickets away free to drive attendance and sales (RV, boat, outdoor shows, etc). Even for concerts, high prices could reduce demand and attendance.

Since attendance and ticket sales aren't guaranteed, revenue wouldn't be either.
Then, instead of a hotel fee, you might be looking at a direct taxpayer bailout of the whole thing.

[HerdBot]

Do some math and you will realize the proposition is preposterous.

Fargo did 3.3 billion in taxable sales last year and its growing 8-10% per year. A quarter cent generates 8.25 million a year

Gross hotel sales were 95 million last year. That's 2.85 million a year.

Combined that is 11.1 million a year if we never grow. Realistically we should pay this off in 10 years.

Lets see how a ticket fee works

1) Ticketmaster generally controls tickets and we have no authority to add fees to their tickets

2) Live Nation, who uses ticketmaster, promotes 90% of concerts. Why would they choose a venue that is uncompetitive. Grand Forks and Sioux Falls dont charge user fees. No venue anywhere charges a $6.25 user fee. That's more than parking

3) This year NDSU is averaging 15,000 x 6 games for 90k attendance. 90k x $6.25 a ticket is only 585k. Most years, we would fall in the 750k range. Best case, lets say we sell out every game and 3 playoff games every year. Thats only 1.068 million and it wouldnt grow 10% per year. No where near the 11.1 million

750k would only generate 15 million over 20 years and it wouldnt even cover half the convention center, much less the bond payment

Besides, why should NDSU fund 100% of the project. What Re we going to charge High School games $6.25 a ticket? Nobody would go

I thought there was a cap on large purchases? Seems like that number would be incorrect.

You can absolutely add a venue fee to tickets.

That is taxable sales from the tax commissior. Fargo already has a cap on the city sales tax portion, (its not new) so they report exactly what was taxed. They even remove non taxable items like agriculture. Plus this 3.3 billion will grow 8-10%

You cannot add a venue fee to a ticketmaster ticket. You could charge a fee if the tickets were bought physically at the Fargodome, but who would not buy online and drive to the dome to pay $6.25 extra.

But even if you could charge $6.25, all the dome concerts only draw 100k max. Thats only $625k on top of 750k (for football). 1.3 million vs 11 million. Not even remotely close enough

Live Nation would pull out and never go to the Fargodome again. They would only go to Grand Forks, Sioux Falls, Bismarck, or Billings. Or only do smaller shows st Scheels Arena

When Garth Brooks sold out 4 straight shows, the Fargodome gave them free rent to land the show. Of course they made it back in vendors

Surcharge would be closer to $15 or $20 per ticket than $6.25.

Events are also price sensitive. Some convention center events they nearly give tickets away free to drive attendance and sales (RV, boat, outdoor shows, etc). Even for concerts, high prices could reduce demand and attendance.

Since attendance and ticket sales aren't guaranteed, revenue wouldn't be either.
Then, instead of a hotel fee, you might be looking at a direct taxpayer bailout of the whole thing.

If anyone thinks the dome is going to charge $20 per ticket and will continue to have events, they are delusional. Imagine buying a Bison ticket in row LL for a $20 fee plus $55. Or going to the home show and paying $20 for a $5 ticket.

We wouldnt have any events to charge a fee for and the dome would not operate in the black like it does now

[BISONBRI53]

something like this - enumerating or at least mentioning 250 conventions that bowed out - is something that needs to be publicized far and wide. No matter what anyone says, this impacts the local economy including surrounding towns.

and monster truck shows!!!!!!

[Hammerhead]

When I was trying to see how much the city collects I found this page that says you need to request a refund if you pay more than $50 or 2% of $2,500. https://fargond.gov/city-government/...city-sales-tax

Just something to keep in mind the next time you make any large taxable purchases in many North Dakota cities.