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A plea for help

Support urged to keep debt-ridden C.R. Science Station open

Janet Rorholm

The Gazette

October 19, 2006

Attendance has declined steadily since the IMAX theater opened in 2001.

The Science Station has run at an operational loss for two years, losing $350,000 in fiscal 2004-05 and $150,000 in fiscal 2005-06, which ended Sept. 30.

Because of failed pledges and inadequate fundraising, the Science Station had to take out a loan, which it has not been able to repay, placing it at risk of foreclosure.

Hastings said optimistically high attendance projections for the theater were part of the problem.

[Note: This material is copyright by The Gazette, and is reproduced here as a matter of "fair use" for non-commercial, educational purposes only. Any other use may require the prior approval of The Gazette.]



  CEDAR RAPIDS — Losing the Science Station and its McLeod/Busse IMAX Dome Theatre would be a huge blow, business leaders and officials say, hindering efforts to bring in convention and tourism business as well as efforts to recruit businesses and workers. ‘‘It’s one less card in our hand that we can play if it closes,’’ Tim Boyle, president of the Cedar Rapids Area Convention & Visitors Bureau, said Wednesday.

  Science Station officials issued a formal plea to the community at a news conference Wednesday morning for funding to erase $1.3 million in debt. Without those funds, officials said, they will close the 20-year-old non-profit Nov. 15.

  Boyle and others said a diversity of cultural attractions, like the Science Station and museums, is one of the area’s biggest assets.

  ‘‘I think as a city we need to examine ourselves. Are we an overgrown small town or are we a small major city?’’ Boyle said. ‘‘I like to think of us as a small Minneapolis. A small town is a nice place to live. . . . A major city has arts, museums, sports, cultural and historical attractions. It has exciting and appealing bars and restaurants.’’

  Behind-the-scenes pleas for assistance from the Science Station have gone largely unheeded, not only by the city of Cedar Rapids and Linn County supervisors but also by businesses and individuals.

  ‘‘We are making a plea to the community to be a part of rebuilding and reinvigorating this great asset,’’ board Chairman Dan Thies said.

  Several people expressed concern Wednesday about the community’s lack of support for the hands-on science and technology center. Attendance has declined steadily since the IMAX theater opened in 2001.

  ‘‘It’s a crucial part of a community that wants to be Iowa’s Technology Corridor,’’ said Terry Pitts, executive director of Cedar Rapids Museum of Art. Pitts and other museum directors were on hand to lend their support to the Science Station.

  Pitts said losing one attraction hurts all attractions.

  ‘‘You need a certain number. You’ve got to have a critical mass in order to make it an outing or a school trip, so you’ve got to save the Science Station and you’ve got to save The History Center,’’ he said. Lee Clancey, president of the Cedar Rapids Area Chamber of Commerce, speculated some of the hesitation to help may stem from people wanting to see if Science Station leaders can restructure operations and make the facility a workable business.

  Given The History Center’s recent turmoil, people need some assurances that the Science Station can operate in the black without its debt load, she said.

  ‘‘The History Center got out of debt, and it still couldn’t make it operate without debt,’’ she said.

  The Carl and Mary Koehler History Center, 615 First Ave. SE, temporarily closed earlier this year after accumulating $170,000 in debt. It had faced foreclosure in 2003 but was saved by city and county government, local donors and banks, which donated $1.4 million to retire the museum’s mortgage. The center is now staffed by volunteers and open 12 hours a week.

  The Science Station has run at an operational loss for two years, losing $350,000 in fiscal 2004-05 and $150,000 in fiscal 2005-06, which ended Sept. 30.

  Officials stressed the Science Station could be viable if its debt is erased. It has made a profit for five out of the last 10 months, energized largely by some big-name films at the IMAX and new traveling exhibits.

  Joe Hastings, Science Station executive director, said it could have done better, but lack of funds forced cutbacks in marketing earlier this year.

  Hastings is resigning effective Oct. 31.

  The bulk of the Science Station’s $1.3 million debt comes from construction of the IMAX theater. Because of failed pledges and inadequate fundraising, the Science Station had to take out a loan, which it has not been able to repay, placing it at risk of foreclosure.

  Hastings said the IMAX theater, however, is not a liability. Today, the Science Station, with about a $1.1 million operating budget, receives about 80 percent of its revenue through ticket sales, concessions and other sources. The remainder comes from donations. Without IMAX, the earned income likely would drop to 50 percent at best, Hastings said.

  Officials said that while they have been able to restructure the Science Station’s contract with IMAX to decrease the fee it pays to show IMAX films, more negotiating needs to be done to make IMAX more profitable. Hastings said optimistically high attendance projections for the theater were part of the problem.

  The Science Station also has struggled to pay $75,000 a year in rent to Paxton Properties LLC and 419 LLC of California on one of its three buildings that make up the Science Station. The city leases a second building — a former fire station — for $1 to the Science Station. The IMAX is the third building.

  The Science Station also has been hurt financially and in terms of credibility by an embezzlement of $313,000. Former office manager Nancy Listman is accused of the crime and has yet to go to trial.

  Big-name supporters of the Science Station in the past hope the community at large will come to its aid.

  ‘‘We think it’s a great asset for the community,’’ said Jeff Busse, trustee for the Lavern T. Busse & Audrey Busse Foundation, which gave $750,000 toward construction of the IMAX theater. ‘‘We want to help. We want to be part of a group that solves it, but we can’t do it alone.’’

  Earlier this year, the foundation pledged $105,000 toward the purchase of the building the Science Station rents from Paxton Properties, hoping that would kick-start the fundraising campaign to save the Science Station.

  While Science Station officials had hoped to raise $3.5 million for a recovery plan earlier this year, it has since scaled back its fundraising target to the $1.3 million needed to erase its debt.

  Steve Knapp, spokesman for the Clark and Mary McLeod Foundation, which provided $750,000 toward construction of the IMAX, said the McLeods are disappointed the community has not used the Science Station to its full potential.

  ‘‘Unfortunately, for whatever reason, it hasn’t been community- sponsored. It is not getting the numbers to keep it going,’’ he said.

  The community needs to get behind the Science Station, not just supporters with deep pockets, Knapp said.

  ‘‘Does this community want it?’’ he asked. ‘‘Is it important to this community?"