IMPACT
IMPACT OF
IMPACT OF THE SUPER BOWL OR THE
>>>
>>> YOU
>>> YOU KNOW WHEN YOU TURN ON THE NEWS AND YOU HEAR PEOPLE
LIKE CHRIS AND I SAY THE
ECONOMIC IMPACT OF THE SUPER
BOWL OR THE CONVENTION OR THE
ALL STAR GAME WAS X MILLION
DOLLARS?
DOLLARS?
DOLLARS? YEAH, ACCORDING TO A NEW AUDIT
MEET MINNEAPOLIS, THE CITY'S
MARKETING AGENCY, OVERESTIMATED
THAT ECONOMIC IMPACT BY ABOUT
$200 MILLION OVER THREE YEARS.
>> IT'S NOT LIKE THEY ROUNDED UP
A FEW TIMES.
THAT'S $200 MILLION.
MEET MINNEAPOLIS IS RESPONDING
TONIGHT WHILE THE CITY IS STILL
WAITING FOR SOME ANSWERS.
>> Reporter: MEET MINNEAPOLIS
WAS HIRED BY THE CITY TO BRING
IN MONEY.
IN MONEY.
IN MONEY. TOURISM, AD DOLLARS, VISITORS,
CONVENTIONS, THEY ARE TAXED AND
FUNDED -- TASKED AND FUNDED BY
THE CITY TO MARKET MINNEAPOLIS.
AN AUDIT HAS FOUND MEET
MINNEAPOLIS OVERESTIMATED HOW
MUCH MONEY IT HELPED BRING IN BY
$193 MILLION IN THE LAST THREE
YEARS.
YEARS.
YEARS. ACCORDING TO THE AUDIT IN 2015
MEET MINNEAPOLIS OVERESTIMATED
ITS ECONOMIC IMPACT BY $121
MILLION OR 40% MORE THAN ITS
ACTUAL IMPACT.
ACTUAL IMPACT. IN 2016, $25 MILLION.
AND LAST YEAR IT OVERESTIMATED
BY $49 MILLION ACCORDING TO THE
AUDIT.
AUDIT.
AUDIT. >>
AUDIT. >> WHEN YOU SAW THAT NUMBER FOR
THE FIRST TIME, WHAT WAS YOUR
REACTION?
REACTION?
REACTION? >> I THOUGHT IT WAS PRETTY
SLOPPY WORK BY MEET MINNEAPOLIS.
WHILE IT LOOKED LIKE THEIR
ASSESSMENTS HAD IMPROVED, IT --
THEY WEREN'T GETTING IT RIGHT.
>> Reporter: SHE'S A MINNEAPOLIS
CITY COUNCIL MEMBER AND CHAIR OF
THE AUDIT COMMITTEE WHICH
RELEASED THE REPORT MONDAY.
IF YOU'RE WONDERING HOW NUMBERS
CAN GET THIS MISALIGNED, MEET
MINNEAPOLIS CHALKS IT UP TO
HUMAN ERROR.
HUMAN ERROR. CERTAIN MONEY WAS BEING ENTERED
MULTIPLE TIMES, CERTAIN FIGURES
WERE BASED ON PRE-EVENT
ESTIMATES AND WERE NEVER
CORRECTED.
CORRECTED. >> BASED ON THE EVIDENCE IN YOUR
REPORT, DO YOU THINK THEY WERE
INTENTIONALLY IN ANY WAY FUDGING
THOSE NUMBERS?
THOSE NUMBERS? >> I DON'T THINK THEY WERE
INTENTIONALLY FUDGING THOSE
NUMBERS, BUT WE REALLY NEED TO
TRUST THESE REPORTS.
I UNDERSTAND CALCULATING
ECONOMIC IMPACT IS ALWAYS GOING
TO BE AN ESTIMATE BY NATURE, BUT
IF WE'RE GOING TO CONTINUE
OFFERING CONTRACTS WITH PUBLIC
DOLLARS ATTACHED TO PLACES LIKE
MEET MINNEAPOLIS, THEN WE NEED
TO GET IT RIGHT.
>> THE CITY NEVER ASKED FOR
ACTUAL DOCUMENTATION TO
LEGITIMIZE THE NUMBERS THAT MEET
MINNEAPOLIS WAS REPORTING,
RIGHT?
RIGHT?
RIGHT? >>
RIGHT? >> ONE OF THOSE FINDINGS IS THAT
A LOT OF THOSE CONVERSATIONS
WERE VERBAL.
WERE VERBAL. >> SO IS THE CITY CULPABLE AT
SOME POINT TOO TO SAY WE DIDN'T
DOUBLE CHECK YOUR WORK?
>> I THINK SO.
I THINK SOMETHING THIS AUDIT
SPEAKS TO IS HOW WE MANAGE OUR
OWN CONTRACT OVERSIGHT, RIGHT?
AND HOW WE WORK TO THINK UP
PROVISIONS AND CONTRACTS THAT WE
HAVE.
HAVE.
HAVE. AND
HAVE. AND I THINK THAT'S THE BIGGEST
TAKEAWAY FOR THE CITY SIDE OF
THIS CONVERSATION.
THIS CONVERSATION. >> Reporter: TUESDAY AFTERNOON
MEET MINNEAPOLIS ISSUED A
STATEMENT THAT SAID IN PART
QUOTE ECONOMIC IMPACT IS NOT A
KEY PERFORMANCE INDICATOR IN OUR
CONTRACT WITH THE CITY.
AND BY NATURE OF ITS COMPILATION
IS AN STIGS.
IT PROVIDES AN -- AN ESTIMATION.
IT PROVIDES AN -- THE ESTIMATED
ECONOMIC IMPACT NUMBER WAS NOT
USED AS A MEASUREMENT FOR
CONTRACT EVERYONE SENTIVE --
CONTRACT INCENTIVE PAYMENTS OR
BONUSES.
BONUSES.
BONUSES. IT GOES ON TO SAY WE WILL
CONTINUE INTERNAL TRAINING TO
FIND THAT DOCUMENTED PAYMENTS
MINIMIZE OVERSTATEMENTS.
MINIMIZE OVERSTATEMENTS. >> ALL RIGHT.
SO IN THE GRAND SCHEME OF THIS
MASSIVE AMOUNT OF WORK AND GOOD
THAT MEET MINNEAPOLIS ACTUALLY
DOES, MAYBE MISCALCULATION ISN'T
A HUGE DEAL TO TAXPAYERS OR THE
BOTTOM LINE.
BOTTOM LINE. THEY DOWNPLAYED THIS ERROR AND
SEMIBLAMED THE FINANCE
DEPARTMENT OF THE CITY, SAYING
WE TRIED TO GET AN EQUATION THAT
WE AGREED ON, BUT THEY NEVER DID
IT.
IT.
IT. BOTTOM LINE IS THIS.
A LOT OF FOLKS READ THIS STORY
AND THEY SAY, YOU KNOW WHAT
HAPPENS AT MY KID'S SCHOOL
IFFOUT GET 40% OF THAT REPORT --
IF I GET 40% OF THAT REPORT
WRONG?
WRONG?
WRONG? IF
WRONG? IF I DO THAT AT MY JOB?
PEOPLE GET FIRED.
KIDS GET FAILING GRADES.
WHY IS THAT ACCEPTABLE ON THE
CITY LEVEL?
CITY LEVEL? >> IF THE ANSWER IS THEY'RE IN
THE ESTIMATION BUSINESS, EXPLAIN
THE ESTIMATION BUSINESS SO WE
KNOW HOW MUCH ERROR