BLOOMINGTON - The sour economy likely will result in another fiscal year in the red for the U.S. Cellular Coliseum, but the City Council was told Monday the facility remains an entertainment and economic benefit to the community. | INTERACTIVE GRAPHIC: Coliseum finances, attendance | VIDEO: Coliseum, from hockey to basketball

"Sometimes you have to look at the greater good even if the Coliseum's financial performance will come out at best neutral for the year," said Robert Fazzini.

Fazzini, a local banker and a member of the City Council's Coliseum oversight committee, gave aldermen a nine-minute overview of the Coliseum's operations from May to October.

In its first six months of operations this fiscal year, the Coliseum posted an operating loss of $278,000. The first half of the year is typically the slowest, and the Coliseum tends to close its deficit in spring and summer, according to arena officials.

Fazzini told the council the Coliseum likely will not meet the original budget projection of ending its third fiscal year on April 30 with a $120,000 operating profit.

Aldermen offered little comment at the end of Fazzini's report. No one from the public asked to speak on the matter.

Mayor Steve Stockton said the Jehovah's Witnesses, who have held conventions at the Coliseum for the past three years, are so pleased with the Coliseum they have signed up to have conventions at the building for the next five years.

'"Good job' is all I can say," said Ward 5 Alderman Jim Finnegan.

While the financial picture is not as rosy as initially planned, Fazzini said Central Illinois Arena Management is meeting the council's three main goals for the Coliseum. Those goals are to increase the entertainment opportunities for the city's residents, provide economic benefits to area businesses and keep the cost to the city as low as possible.

Fazzini said that from its opening in April 2006 to August 2008, the Coliseum has provided about $12 million in economic benefit to Twin City businesses. The Bloomington-Normal Convention and Visitors' Bureau estimated that economic benefit to hotels, gas stations, retail shops and grocery stores based on a state formula.

Attendance for the building also has been strong, Fazzini added. The council set a goal of having 360,000 people in the building this year, and so far it is on pace to bring in 400,000 people.

The operating loss does not include the roughly $2 million annual payment the city has to make on the $29 million in bonds issued to construct the 7,000-seat Coliseum. The City Council voted earlier this year to increase the city's sales tax from 7.5 percent to 7.75 percent as of July 1 to pay for the bond payments.

The Coliseum and the adjoining Pepsi Ice Center and parking garage cost $35.8 million to build.

In a related item, the council vote 7-1 to build a ticket window enclosure at the Coliseum. Ward 7 Alderman Steven Purcell voted against the enclosure and Ward 3 Alderman Kevin Huette was absent.

The $112,000 enclosure will be constructed by Johnston Contractors, the construction company that built the Coliseum.

Previously the ticket window enclosure was rejected. Since then, Ticketmaster, the Coliseum's ticketing agent, has agreed to sponsor the enclosure by paying the city $15,000 a year for eight years.

"Compared to what we have now, it is going to be a 10-fold improvement," said Mike Nelson from the arena management group.

Currently, customers for the Coliseum's ticket window are sheltered from the weather by a tent.