Syracuse, NY -- Unless Onondaga County fixes its convoluted relationship with Oncenter, the convention center complex is likely to remain financially weak and ineffective, Comptroller Robert E. Antonacci II said in an audit released Thursday. Antonacci’s audit was spurred by a financial crisis last November when the non-profit corporation that runs the Oncenter complex asked the county for a $575,000...
Syracuse, NY -- Unless Onondaga County fixes its convoluted relationship with Oncenter, the convention center complex is likely to remain financially weak and ineffective, Comptroller Robert E. Antonacci II said in an audit released Thursday.
Antonacci’s audit was spurred by a financial crisis last November when the non-profit corporation that runs the Oncenter complex asked the county for a $575,000 bailout — in addition to the county’s regular $2.2 million subsidy.
That crisis stemmed in part from a gap in leadership and sloppy financial management last year — issues that have been addressed by Oncenter’s new managers, Antonacci said. But Oncenter faces ongoing financial hardships and operational distractions from its contract with the county, he said.
Example: Oncenter is required to pay more than $2 million a year for building maintenance and utility costs at the county-owned buildings it manages, principally the county War Memorial and the convention center. Antonacci identified more than $1 million of those costs that the county should absorb, including more than $500,000 in steam charges from the county itself.
Another example: Oncenter loses more than $100,000 a year running a cafeteria for county workers at the Civic Center. The county recently issued a request for proposals seeking another vendor to run the cafeteria, said James Rowley, chief fiscal officer.
Antonacci recommended that the county renegotiate its contract with Oncenter to relieve the corporation of building maintenance and other tasks that detract from its primary mission — bringing visitors to Syracuse from out of town. “Those changes would bring some clarity to the Oncenter’s core mission,” Antonacci said. “We want overnight visitors.”
Rowley said County Executive Joanie Mahoney will consider changing the contract, which would also require approval from the Legislature.
Terri Toennies, Oncenter’s president and CEO, agreed with Antonacci’s report. Unless the county takes over some maintenance and utility costs, Oncenter may have to ask for emergency funding of $200,000 to $500,000 later this year, she said. “We’re very excited about this report,” Toennies said of the audit. “This is a good business model for us to follow.”
The Onondaga County Convention Center/War Memorial Complex Management Corp. — Oncenter, for short — is a nonprofit corporation created by the county in 1992 to operate the convention center, the War Memorial, the Civic Center theaters and parking facilities.
The county typically subsidizes Oncenter with money from a 5 percent tax on hotel rooms. Including the $575,000 bailout last November, the county gave Oncenter $2.76 million in 2009, up from $2.4 million in 2008.
Contact Tim Knauss at tknauss@syracuse.com or 470-3023.