Executive Director Tony Camarillo looks to creative ways to offset city’s growing $5.6 million subsidy.
LAKELAND — Being in the business of bringing community events together when health experts recommend social distancing during the COVID-19 pandemic isn’t just difficult but costly.
Tony Camarillo, executive director of the RP Funding Center, said the city-owned complex hosted its first public events during the weekend since COVID-19 struck in mid-March.
"I walked through, and it’s amazing to see," he said. "First of all, it’s just amazing to see people doing business in masks, complying with social distancing and going through our temperature checks."
So it’s not quite business as normal. The pandemic has caused the RP Funding Center to lose approximately $2 million in annual revenue. These costs must be covered by city and paid, in part, using taxpayer dollars.
Michael Brossart, Lakeland’s financial director, said he anticipates the city’s subsidy of the convention center will increase from $4.3 million in 2019 to to $5.56 million for fiscal year 2020. His estimate is based on the venue not being able to hold any major events through September.
If RP Funding Center is unable to contract any major events through January, Brossart warned the city may be facing a $5.4 million subsidy to assist the venue with operating costs in fiscal year 2021.
"It’s not easy to budget in a pandemic, I’ve never had to do it before," Camarillo said. "I’ve been in this business through 9/11, through The Great Recession and it’s been nothing like this."
The center’s executive director said approximately $1.5 million in losses is because of event cancellations since the COVID-19 pandemic reached Polk in mid-March. He estimated another $575,000 decline in revenue from postponed events, some rescheduling more than once.
City Manager Tony Delgado said the RP Funding Center’s staff are under a partial furlough through August to offset these losses.
Camarillo said this affects 48 full-time city employees, who have been asked to take off two days per pay period — or approximately one day per week. There is no overtime, he said, even when an event runs late.
"It’s been a little difficult at times," he said.
Camarillo said he has done a line-by-line review of the center’s operating expenses with Assistant City Manager Emily Colon to decide where further cuts could be made, if necessary.
The center’s revenue shortfall led Commissioner Stephanie Madden to question whether the city should maintain ownership of the downtown conference and events center.
"It’s hard for me to swallow these dollar figures," Madden said. "Inching toward $6 million a year during the middle of a recession, it gives me great anxiety."
Her financial concerns were echoed by Commissioner Sara Roberts McCarley who inquired what long-term contingency plans there are and possible deeper cuts.
"I want to stop the hemorrhaging," she said. "We need to take a hard look at the numbers."
Mayor Bill Mutz and other commissioners agreed that once COVID-19 passes, the city should take a critical look at the RP Funding Center and what can be done to lessen it’s financial dependence on the city.
Camarillo said his staff have been working hard to find possible events the center can host that are looking to do business.
"You might be surprised that we’ve done a few funerals," he said. "Being a place someone can put to rest their loved ones, we’re here for them as well."
The funeral of Ken Riley, one of Florida A&M University’s most respected icons and a former NFL star, was held at the RP Funding Center on June 13. Camarillo said he’s received a number of phone calls inquiring about weddings during the pandemic, though none has booked the venue yet.
Hosting these types of events is not a typical function for the conference center, according to Camarillo, but it has plenty of space to do so with social distancing and a team of experienced event planners. It could provide an alternative stream of revenue for the RP Funding Center.
"I don’t want to become a funeral home. But In these times, we have to do what we can as the civic center, the community center, for the city and its residents," he said. "I have to continue to look for business. It’s a little bit of a fine line to walk. "
Commissioner Phillip Walker commended Camarillo and his staff for such creative measures. The center has been used by the Lakeland Police Department during the pandemic as a staging center prior to the Black Lives Matters protests. It’s also a possible location for COVID-19 patient treatment should the pandemic start to overwhelm local hospitals, according to Camarillo.
The executive director said the center often hosts city events and functions, playing a key role in many emergency situations — including its frequent use a hurricane shelter.
"When push comes to shove, there’s a reason a hotel was built next to us. They know the potential business that is here," Camarillo said. "We’re an economic engine, no two ways about it."
Camarillo said he remains hopeful about the future, as he is in talks with Polk State College and Southeastern University about holding their graduation ceremonies in December.
With some of the largest parking lots in downtown Lakeland, the RP Fnding Center’s executive director said he’s not opposed to hosting outdoor events during the pandemic, as long as it makes economic sense. Possibilities include outdoor concerts or movie nights.
"If we got to a point where we knew we could break even or make a little money and help the community get out of their houses, I’d do it," he said.
Camarillo said another option to bolster the center’s economic future includes utilizing more technology to host virtual events, or a hybrid of virtual and live events that limited the number of attendees for public safety.
"If that’s the future, we’re more than capable," he said.
Sara-Megan Walsh can be reached at swalsh@theledger.com or 863-802-7545.
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