Part Three: Beyond the Operating Loss, TPEC Also Carries Ongoing Capital Costs

The annual operating loss at Tony’s Pizza Events Center is only one part of the public cost tied to the City-owned venue.

Capital improvement records reviewed by Salina311 show the City of Salina listed $643,598 in planned TPEC capital projects from 2023 through 2026. The projects include lighting, sound, elevator and lift work, food and beverage equipment, emergency doors, hot water equipment, concrete sealing, stage equipment and other facility needs.

The records add a third layer to Salina311’s review of Tony’s Pizza Events Center. Part One focused on the venue’s operating losses. Part Two focused on the management agreement and incentive structure. Part Three looks at the building itself and the capital costs required to keep the facility operating.

The capital plan does not show a venue in collapse. It shows something more basic: a public facility that continues to require scheduled investment while also producing annual operating losses.

Capital Plan Lists $643,598 in TPEC Projects

The 2023 through 2026 Capital Improvement Plan lists the following annual totals for TPEC:

The largest year in the plan is 2026, when listed TPEC capital projects total $370,500. That includes $125,000 for sound upgrades in Great Plains Hall, $50,000 across 2025 and 2026 for sound upgrades in the Great Plains meeting room, $35,000 for a hot water heater, $25,000 for a spotlight, $25,000 for stair nosings, and $20,000 for the Oakdale marquee sign.

Other listed projects include $80,000 for an LED scoreboard and controller update, $62,000 for an elevator/lift arena upgrade, $36,910 for wet grinding and sealing the floor, $30,485 for the TPEC elevator lobby, $28,000 for an assisted listening device in the meeting room, and $19,000 for an elevator phone.

These costs are separate from the basic operating loss discussed in Part One.

Audits Say Capital Costs Are the City’s Responsibility

The financial statements reviewed by Salina311 state that the City is responsible for capital expenditures at Tony’s Pizza Events Center.

The audit language defines capital expenditures as building additions, alterations, repairs or improvements, along with purchases of additional or replacement furniture, machinery or equipment, when the cost is above a nominal amount and the item has a depreciable life of more than five years. The audit also states that capital expenditures made directly by the venue are normally reimbursed by the City.

That distinction is important because the operating statements do not present the full cost of the facility to the City. They show the operating accounts of the venue, not every capital investment tied to the building.

In other words, the operating loss is not the full taxpayer picture. Capital spending sits beside it.

Facility Scores Declined From 2024 to 2025

Facility audit reports reviewed by Salina311 show TPEC received an overall score of 92.45% in 2024 and 89.06% in 2025.

The 2025 inspection report listed goals that included learning and implementing the new Trane Tracer SC BAS system, becoming more familiar with the facility’s MEP systems, and providing a 1-, 3-, and 5-year facility maintenance improvement, repair and replacement list.

The 2025 report also included comments on maintenance issues, including that arena stadium seating floors had improved but still needed regular wet mopping, and that the commercial kitchen floor was very dirty around appliances and had loose soil and debris scattered throughout.

The 2024 inspection report also noted issues, including that two large ground Trane systems needed repairs completed and that the auditorium floor was sticky and black, while the commercial kitchen had rotted droppings and soils in corners around appliances and food storage.

Those findings do not show a failed facility. They do show that maintenance, repairs and long-term replacement planning remain active issues.

Capital Costs Add to the Public-Cost Question

The City’s management agreement with Global Spectrum, L.P., now operating under OVG360 branding, separates operating performance from capital responsibility. The manager handles operations, booking, promotion and other facility functions, while the City remains the owner of the building and is responsible for capital improvements.

That structure means residents should look at the venue in two parts.

The first part is the operating side: revenue, expenses, annual loss, City operating support and management incentives.

The second part is the facility side: equipment, building systems, repairs, upgrades and capital planning.

Both matter.

A venue can increase revenue and still lose money. A venue can also meet basic facility standards while still requiring major capital investment.

The records reviewed so far show Tony’s Pizza Events Center fits both descriptions.

What This Means for the Series

The records do not show that capital projects are improper. Publicly owned buildings require maintenance and replacement spending, especially older facilities.

Tony’s Pizza Events Center has been in operation since 1979. A venue of that age will require ongoing repairs, upgrades and equipment replacement. The issue is not whether capital spending exists. The issue is how that spending fits into the broader public cost of the venue.

Taken together, the records show:

Tony’s Pizza Events Center reported its highest operating revenue in five years during fiscal 2025, but also posted its largest net operating loss during the same review period. The management agreement allows losses and incentive payments to exist at the same time. The capital plan shows the City also has hundreds of thousands of dollars in listed facility projects from 2023 through 2026.

That makes the full public-cost question larger than one annual loss number.

For residents, the next question is not simply whether TPEC is busy. It is whether the City’s operating support, management payments, incentive payments and capital spending are producing measurable long-term value from the facility.

Salina311 is continuing to review records tied to TPEC’s management agreement, capital spending, operating budgets, monthly financial reports and performance evaluations.