I would like to express my concern about the inadequate analysis completed by the Government of the Student Body on the Cyclone Cinema proposal. Below are the concerns that I have with the proposal and budget documents that are placed on the GSB home page. The Iowa State student body must stand up and let its governing leaders hear voices and concerns.

1. There has been an inadequate financial assessment of the short and long term. From the budget document, there seems to be no comparisons to a project of the next best alternative. All that was completed was a breakeven analysis. In a normal business financial analysis multiple analyses are completed because a different analysis may lead to different financial decisions. There needs to be an analysis of life cycle cost, cost/benefit, net present value calculations, payback period and determination of internal rate of return and marginal internal rate of return. If GSB wants to run a business, they have to think and act like a business. GSB needs to compare this proposal to another proposal of which these funds could be used for and then determine the best project.

What are the financial requirements and how will they be covered if the cinema flops on revenue projections? Where is the future financial forecast past the first five years? Where are the risk assessment calculations, analyses and matrixes? Where is the in-depth sensitivity analysis?

When determining revenues, what if the theater rental and advertising doesn’t work out? What is the sensitivity in these estimated numbers and what if the metrics and procedures that are set for these projections are not met, which means increasing the operating loss upwards of $6,200.

The estimate of 52.2 percent full theater a night conveys pretty high expectations, especially within the first year or two. When staring a business, which involves renting retail space, an occupancy of 50 percent is very high and unrealistic estimate. Finally, you aren’t even projected to operate at a profit or breakeven doesn’t make much business sense to spend student dollars on a losing operation.

2. There are unrealized and undiscussed cannibalization effects that this cinema will place both on the community and recognized Iowa State student organizations. First, there are already two movie theaters in Ames. When trying to encapsulate a healthy relationship between the university and the City of Ames, cannibalizing on the community business’s profit is not a way in which to go about it. There is the potential for erosion on the community businesses with the implementation of this proposal especially on the Cinemark North Grand 5. So where is the point when part of the university should be competing with local businesses? Also, how about the attendance to the university sponsored Free Friday Night Flicks and many other student organizations that provide this type of entertainment to students — such as Friday After Dark. Currently, this proposal will demolish the reason for such a student organization and isn’t it part of GSB’s job to assist and provide funding to student organizations? So how many student organizations or projects will this theater eliminate or replace?

3. The university budget is being cut $24 million, which is causing departments to go lean and reduce or even eliminate majors on campus, and it has had many major impacts on students. We are paying more for a lesser education. Class sizes have grown, homework and projects have been removed to compensate for the budget constraints placed on teaching assistant budgets, top professors are leaving and faculty and staff have been required to take furloughs, What is GSB doing to assist on this front?

4. Why not invest in better security and lighting around campus, residence halls and campustown? Or reinvest back into the student body? In this economic downturn, why not start a joint textbook rental system with the ISU Bookstore to ensure that students receive the adequate materials to be successful in classes and bring back profits that are being lost to online purchases.

5. If a large reason for this implementation is to provide close to campus flexible jobs for students, that is not a valid reason. There are jobs that are unfilled on campus of which some pay a better hourly wage than the proposed set wage and are not created at the cost of the rest of the student body.

As a complete and accurate market analysis been completed, I would say no way. Why would I walk or try to find a parking space at a run down theater next to Welch Avenue so that when I leave I have to deal with the bar crowds when I can:

A. Drive to a discounted theater with ample parking and a better facility/picture or

B. Drive to the other theater with ample parking, new releases and a much better facility for just a few dollars more

How can it be determined that more than a majority of students want this proposal? There is not a vast diversity of organizations polled and only 836 forms collected out of a student body of 26,000 students. That is approximately a mere 3.2 percent of the student enrolled population that is being extrapolated to determine the success or failure of this proposal.

6. Maybe even if the theater could produce a small profit, where will it be allocated to? If it is going to be reinvested in the business, then what is the point? It will not be generating any profits that could be allocated to different student funding needs.

Also, since when has GSB been about running a business? If a venture of this sort wants to be discussed, where are the successful business professionals within the university and community that are helping with budgeting, business plan development, and overall consulting? Does GSB even know or understand the huge time commitments that are needed to make even a small profit? Wouldn’t GSB be better equipped to solicit donations from businesses, alumni and fundraisers to fund this proposal than student fee investment?

The students have elected GSB to make the best decisions for the student body, not to run a business. GSB is suppose to be the voice of the students, but you have to listen to our voices before you know what we want. This proposal is not in the best interest of the students, but instead, it is to fund personal pet projects of current GSB representatives. GSB should represent us adequately to ensure that our education is preserved, not our weekend entertainment options.

Allison Machtemes is a senior in civil engineering at Iowa State University.