Local: Will Cat dump support for museum? Will Peoria media get around to covering IMAX failure?
Merle Widmer, who recently tipped us off to the failure of the Cedar Rapics IMAX, says he thinks Caterpillar stockholders who are nervous about how the economy is affecting their stock price, may put pressure on Caterpillar bosses to stop wasting money on this museum/visitor center thing.
By the way: Has ANYONE in the Peoria media mentioned the Cedar Rapids thing? I mean, the Build the Block ads make a huge frigging deal about IMAX, but it’s apparently not the sure-fire money maker that some people claim it is. You would think that the mainstream media would report on that sort of thing .. well, at least when they aren’t running down stories about lost dogs.
January 22nd, 2009 at 5:34 am
Billy,
What a wonderful opportunity to purchase the used equipment for .20 cents on the dollar. The Build The Block should jump on this deal by spending part of the advertisement dollars on buying this equipment. Save a dollar here and there and they could get the price down to the point where everyone would want it.
January 22nd, 2009 at 6:32 am
I have a hard time believing that the stockholders have an opinion on anything. Stockholders just sit back and collect their dividends and watch their shares grow in value. So far, Cat has delivered. I don’t see any micro-managine going on here anytime soon.
January 22nd, 2009 at 8:03 am
Also, typically this kind of money comes from a different place than operating funds and shareholder dividends; generally corporations aim for various charity targets for tax writeoffs and other benefits. It wouldn’t necessarily benefit the stockholders for them to withdraw that money. (Which is why Ameren continued to give so generously to community causes while hiking rates through the roof.)
January 22nd, 2009 at 8:43 am
Diane: Have you not noticed the value of Caterpillar stock drop ;from 80 to 40 in just the past year? This pledged money for the Museum could be used for operating expenses by Cat and need not be kept in a chest for charitable purposes. What charitable purpose does this museum serve? These are hards times for everyone.
January 22nd, 2009 at 8:56 am
“I have a hard time believing that the stockholders have an opinion on anything. ”
Really? I would beg to differ.
January 22nd, 2009 at 9:16 am
The failure of the Cedar Rapids theatre had nothing to do with IMAX in general. That theatre was built in a poor location in a market too small to support the operation of the theatre as their deal with IMAX was structured. They also weren’t particularly good at sustaining attendance through good marketing. So don’t overgeneralize, please.
January 22nd, 2009 at 9:54 am
The Cedar Rapids population is ~ 120k, similar to that of Peoria, and the Cedar Rapids IMAX was located downtown, near the river. That seems like about as decent a comparison to the Peoria plans as one could hope for.
January 22nd, 2009 at 10:45 am
The 120K population does not include all the outlying areas of which Peoria proper is made up of. Are we really comparing apples to apples?
January 22nd, 2009 at 10:50 am
Just for kicks, I googled “Imax close” and got these quick hits:
Cincinnati at “Newport on the Levee” – closed 2003
Miami at the “Shoppes at Sunset” – closed 2003
Waikiki – closed 2003
Quebec City – closed 2005
Kansas City Zoo – closed 2005
Charleston, SC – closed 2007
Bristol, UK – closed 2007
Colleyville, TX – closed 2008
Edwards Theatres closed six of them in California in 2001
There are also numerous stories about how many of them are thriving, several stories about how some are “struggling”, and so on. In other words, some make it, some don’t. Sounds like just about any other form of business.
I did find this quote from one of the stories, for what it’s worth:
“Imax theaters traditionally do best in areas where they are attached to a museum, a national park or some area that draws a high volume of tourists. The only other Imax theater in South Florida is at the Museum of Science and Industry in Fort Lauderdale, which attracts a large number of schoolchildren on field trips.”
BTW, I have no dog in this hunt, nor am I concerned about it either being built or not being built, as it matters not to me. I’m just offering up some tidbits to add to the discussion.
January 22nd, 2009 at 6:52 pm
Good companies plan for the future, not for today. And while $40M might sound like a ridiculous amount of money to me or you, it is probably peanuts. I imagine that the Cat Experience would be a pretty good marketing ploy for Ol’ Yeller, and it is likely a wise investment. Why they have hog-tied themselves to this abomination of a museum is a different question altogether.
That said, I’m not sure share-holders (other than local employees) even know what is going on. Do you think $40M shows up on the balance sheet. As the proud owner of 200 shares of Cat stock (full disclosure) I can tell you I don’t even look at their financials anymore. Mind you, some jerk w/ 200 shares is not the same as some big institution, but I bet a quick Internet search of Cat’s investment in this project doesn’t get you a hit that isn’t local.