'Don't Put Your Fingers in the Cage!' Is Elk Grove poking its fingers into the Zoo's business?
The status of the Sacramento Zoological Society's fundraising effort has been kept confidential, and I don't expect the City or Zoo to report directly on the funding progress.
We've all seen the warning signs or been told at some point in our childhood to not put our fingers in the cage, be it at a zoo, pet store, or any place housing little critters with teeth!
But with the sudden departure of the Sacramento Zoo's Executive Director, Jason Jacobs, one must question whether the City has put its fingers in the cage and was involved in Jacob's ousting. And no sooner than Jacobs can empty his desk, then the zoo announces that it has hired a consultant, Kevin Bell, former CEO of Chicago's Lincoln Park Zoo to "push the boundaries of what's possible as we advance the development of the new Zoo."
I think it is safe to assume that the Zoo's fundraising efforts to raise its required $50 million share towards the construction of the Elk Grove zoo is not going so well. The latest fundraising gala held last week only had a few paid corporate sponsors, mostly from companies involved in new construction projects (see the connection!), and the only press release following the event was that a Wendy's fast food franchisee would donate 25 percent of their sales profits from a couple stores on a specific day. I will avoid making "where's the beef" jokes for now!
The Mayor has a huge political stake in getting the zoo successfully relocated to Elk Grove. For the Mayor, who has a thin resume of accomplishments to begin with, the zoo is crucial to her political future as rumors abound about her quest to head to Washington, ala Ami Bera. To fail in this score would be a hundred times worse than the Rob Bonta takedown.
The City has made it clear that they (we) will own the zoo, and the Zoological Society will operate it. Given the political stakes and the nature of the business relationship, it would seem obvious that the City is calling the shots on this project. After all, if you own a restaurant and hire a manager to operate it, aren't you going to evaluate the manager's performance and approve all business decisions?
Construction of the $300 million zoo will be financed by city taxpayers, bond investors, and $50 million the Zoological Society is supposed to kick in. The approved cost-sharing plan requires the Zoological Society to secure financing commitments of $17.5 million by January 2025; $27.5 million by May 2025; $30 million by January 2026; $40 million by May 2026; and finally the total balance of $50 million by January 2027.
The status of the Zoological Society's fundraising effort has been kept confidential, and I don't expect the City or Zoo to report directly on the funding progress. However, beginning this October 1st, the Zoological Society is required to deposit its required contributions quarterly. So, with the sudden departure of the Director and rapid hiring of a Fixer, can we assume there are insufficient funds on deposit? This three-legged barstool appears to be getting wobbly and might not even make it to the end of happy hour!
The financing agreement does not stipulate what form the Zoo's financing commitment must take. I would assume that most large contributors are not going to offer cash upfront for a project that is years away from completion, let alone breaking ground. Then we all know that some promises of a contribution fail to materialize. Another scenario would be for the City to wrap the unmet zoo contribution into its bond issue. Based on past City practice, we should be most concerned if the City offers some sort of bridge loan to the Zoo to keep the project on track.
The annual attendance projections given in the financing feasibility report shows a steady decline in attendance from 268,019 to 243,654 in the first five years, and beyond that, who knows? The pro-forma projections only go out five years, but the life of the bond obligation will last 20, 30, maybe even 40 years! It's hard to imagine that the Zoo will be able to cover its annual operation and maintenance costs indefinitely, so at some point the taxpayers will need to carry more of the burden. There's a reason why a new zoo has not been built in this country for over 30 years.
The Director is out and the Fixer is in, and you just know the City, as the new owner, is running the show. The Mayor, for one, needs this project, but at least Wendy's is on board! I just have one question, though - Where's the beef?
