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Center may be in red for 2 years
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Operating costs and revenue for the new City Center was discussed during a Dec. 10 called meeting of the Richmond Hill City Council.

Hired consultant Kirby Glaze said the Center is anticipated to operate at a loss until the third year of operation.

John Wilderman, of the Wilderman Group which manages the Center, said projections show it will operate at a loss of $225,861 for 2010.

He said that’s not out of the ordinary "for any kind of hospitality entity in its first year. It usually takes two to three years to get to a stabilized level."

Wilderman projects the Center to show a profit of $10,000 in 2011.

Glaze said the Center has working capital of $100,000 per year, "which doesn’t quite match up with the losses."

He made suggestions to council on how to supplement the funding of the Center. This included adding to the working capital or increasing the hotel-motel tax from 7 to 8 percent.

-Read more in the Bryan County News.

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