In order to keep paying its bills and staffers, the Pershing Center is about to get a $150,000 infusion of cash from the city, approved by the Lincoln City Council on Monday.

Some council members would have liked more details on why the events center has an operating shortfall, even though it already got a $575,000 subsidy this year, but the situation was so dire they couldn't afford to wait two weeks before voting.

Pershing General Manager Tom Lorenz said the bad economy caused a dropoff in events, particularly concerts, leading him to take the unprecedented (at least in his 13 years) step of asking for more money, 10 months into the fiscal year.

The economic downturn has hurt ticket sales and caused tours - such as the Stone Temple Pilots - to lag. Lorenz said the music and entertainment industry has pulled back on midlevel tours, reducing the number of shows likely to come to Pershing. Normally, Pershing has six to eight concerts annually, but this year will have three or four, Lorenz said.

And this year the two large events, the USA Roller Sports championship and Midwest Eightball tournament, went to venues in other cities - reducing revenue from two dependable events. (Next year both events return to Lincoln.)

Even revenue from large advertising signs at Pershing is down.

"This was a very unique year for us," Lorenz said.

To save money, Pershing has cut its 401K match, turned off the heat between winter events, cut staff hours, left a vacant position unfilled and curtailed travel.

City Council members said they'd like more information about the circumstances that led to the operating shortfall, but waiting two weeks would have created a cash-flow problem for Pershing. In other words, the events center would have had trouble paying its bills before long.

"My accounting person would probably say it would get close and tight," Lorenz said. "It would get a bit tight after two weeks."

Why did he wait so long to ask for help? Lorenz said you're damned if you wait and damned if you don't. If you ask too soon, it looks like you're panicking when one or two bookings can turn things around.

Like most arenas, Pershing operates with the help of a city subsidy, and since 2003 it's been about a half million dollars per year. Prior to that, the subsidy averaged about $400,000 dating back to 1997.

Lorenz estimates Pershing will need a $642,000 subsidy for the 2009-2010 budget.

Pershing is owned by the city but managed by SMG, a private company that manages arenas, convention centers and stadiums all over the world. Lorenz works for SMG. He said Pershing's staff has shrunk from 13 when he started 13 years ago to 10 now.

Lorenz said as Pershing ages (it's more than 50 years old), it gets increasingly difficult to attract and accommodate events because of its size and lack of amenities. Mayor Chris Beutler and a private group of business leaders have been promoting the idea of a new arena, and the city is expected to vote next spring on whether to build one.

Council members expressed a desire for more information on the need for the money, even though they voted 6-1 to transfer the money.

"I think there have to be some assurances that this is a one-time problem," Councilman Doug Emery said.

The money to shore up Pershing's bottom line will come from $1.4 million freed up now that the city no longer has to pay the county to house city prisoners. Instead, a new jail is being paid for with a new tax levy.

Some Republicans on the council have said the city needs to lower its tax levy to account for the "windfall," otherwise it equates to a tax increase. However, all but one Republican, Adam Hornung, voted to transfer $150,000 to Pershing using the jail savings.

Reach Deena Winter at 473-2642 or dwinter@journalstar.com.