Mayors Performing Arts Theater Task Force Council Report April 28 th - - PowerPoint PPT Presentation

Mayor’s Performing Arts Theater Task Force

Council Report

April 28th, 2015

PRESENTATION

• Introduction

– Vision – Organization – Timeline

• Work of the Task Force

– Key Questions – Needs Assessment

• Committee Evaluations & Recommendations

– Facility – Programming and Operations – Financing

• Proposed Next Steps

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INTRODUCTION

Oslo Opera House 3

VISION

To build a state of the art, world-class performing arts theater in Sacramento

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ORGANIZATION

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Task Force

Staff Support Facility Financing Programming and Operations

Rob Turner (Chair) Dave Pier Lina Fat Alice Perez Garry Maisel (Chair) Dennis Mangers Chris Granger Chet Hewitt Don Roth (Chair) Laurie Nelson Richard Lewis Ron Cunningham Bill Blake

Broader Arts Community Project Manager Consultants

Mayor and Council

TIMELINE PHASE ONE 1st Report out November 13th PHASE TWO Update to Council February 24th PHASE THREE Final Report out April 28th

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WORK OF TASK FORCE

• Dr. Phillips Center for Performing Arts 7

KEY QUESTIONS

• 1. What is the cost of the building?
• 2. What is the optimal location for the building?
• 3. What is the size and scale of a new performance arts

theater?

• 4. What is the business model of the building that is

sustainable?

• 5. What is the structure of the organization that operates the

building and what does the programming look like?

• 6. How do we pay for the new building?
• 7. Is it feasible to get a dedicated funding stream for the

broader arts community?

• 8. Why is a new performing arts venue preferable to

renovating the existing building?

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There is a case to develop new performing arts facilities in Sacramento.

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NEEDS ASSESSMENT

NEEDS ASSESSMENT BASED ON

• Audience Demand

– Estimates based on national rates of participation in the performing arts, reconciled with a preliminary analysis of mailing lists of 12 Sacramento area arts organizations suggests there is room for growth in the Sacramento market

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NEEDS ASSESSMENT BASED ON

• User Demand: significant demand for performance

space

– Responses to questions regarding organizational need for new or better performing arts facilities by arts groups

• 85.2% of respondents feel that new or better performing arts

facilities are needed in Sacramento; 11.1% do not know

• 80.8% of respondents indicate that new facilities will allow them

to expand existing activity; 65% felt new facilities would enable them to develop new activity; and 65% felt they would increase visibility.

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NEEDS ASSESSMENT BASED ON

• Existing Facilities: There are gaps for high-quality

performance facilities

• Recommendation to:

– Replace CCT with a new facility – Not renovate CCT

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NEEDS ASSESSMENT COMMUNITY BENEFITS + IMPACTS

• New facilities will support economic and community

development goals established by the City, contributing to:

– Sense of Place + Quality of Life – Quality of Workforce + Corporate Recruitment – Cultural Tourism – Neighborhood + Community Development – Teaching Innovation + Creativity

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NEEDS ASSESSMENT

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BUILDING OPTIONS

• Option A – Multi-Purpose Theater

– 2,200 seat main theater with 500 seat theater and 300 seat multi-purpose theater/rehearsal space – $254 million cost – $2.8 million annual funding requirement

NEEDS ASSESSMENT BUILDING OPTIONS

• Option B – Multi-Purpose Theater

– 2,200 seat main theater with 300 seat multi-purpose theater/rehearsal space – $189 million cost – $2.2 million annual funding requirement

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NEEDS ASSESSMENT BUILDING OPTIONS

• Option C – Flexible Multi-Form Theater

– 2,200 seat main theater with flat floor capability – 300 seat multi-purpose theater/rehearsal space – $205 million cost – $1.4 million annual funding requirement

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NEEDS ASSESSMENT BUSINESS PLANNING FOR NEW FACILITIES

• Governance Options and Recommendations

– Options include: City, Educational Partner, Non-profit Operator, Commercial Operator – Recommendation: competitive bid process to choose

• perator of new theater

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COMMITTEE EVALUATION AND RECOMMENDATIONS

Kimmel Center for the Performing Arts 18

FACILITY

Kauffman Center for Performing Arts 19

FACILITY

• Began by establishing certain assumptions:

– New theater is needed to replace existing CCT – Theater should be designed in a way to improve patron experience – Theater should be designed to make visual statement through design – Theater should be more inclusive of and appropriate for existing as well as small emerging arts groups and multicultural groups

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FACILITY

• In considering sites, established a list of key criteria,

weighted in terms of the potential for having the most positive impact on the theater and surrounding areas:

– Complementary Retail and Restaurants – Ease of Acquisition – Economic Development Opportunities – Freeway Access & Impact – Hotel & Convention Center Proximity – Outdoor Space Availability – Parking Proximity – Public Transit Proximity – Urban Planning – Visibility

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FACILITY SITE CANDIDATES

• The Railyards

– Near historic shop buildings

• 16th St. between J & K streets

– Kitty-corner to Memorial Auditorium

• 16th St. between I & J streets

– Adjacent to Memorial Auditorium

• Lot X

– Near Crocker Art Museum

• Current CCT Site

– Adjacent to Convention Center

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FACILITY

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FACILITY FACILITY COMMITTEE RECOMMENDS

• Given the criteria, 16th Street has largely emerged as

the preferred site, with Lot X presenting itself as a viable alternate site under the right circumstances.

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PROGRAMMING AND OPERATIONS

Kauffman Center for Performing Arts 25

PROGRAMMING AND OPERATIONS

• The Committee is recommending a clearly defined

process that will lead to the best possible business model, operating structure and programming model for the PAT. We believe this process will work, whether or not we pursue a multi‐theater center and/or the venue is a fixed or a flexible space.

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PROGRAMMING AND OPERATIONS

• The operator be determined by an RFQ or RFP

process based on the following criteria (in order of importance as deemed by the Committee). The potential operators will have to demonstrate a business model and plan which works within these parameters, demonstrates these capabilities and meets these requirements:

– Arts Focus – Cost Effectiveness – Theater Management – Buying Local

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PROGRAMMING AND OPERATIONS

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Potential Operators (right) Operator Criteria

(below in order of importance)

Sacramento Kings Limited Partnership LLC

(Kings LLC )

Existing Non-Profit

(i.e. An Established Performing Arts Organization in the Region)

New Non-Profit

(i.e. A Newly Incorporated Entity Focused

• n General Management)

Kings LLC & Existing or New Non-Profit Commercial Promoter City Operated Arts Focus

Expertise and experience working with the arts; willingness to provide low cost, non- compete and booking priority for anchor tenants; collaboration and coordination with regional arts.

a a a a

Cost Effectiveness

Ability to keep costs low and minimize the cost to the City based on business expertise, potential economies of scale, financial resources and experience in generating revenue from non-arts activities.

a a a a

Theater Management

Operator demonstrates experience in the key functions of operating a Performing Arts Theater or multi-purpose event space, such as ticketing, venue and facility management, etc.

a a a a a a

"Buying Local"

Operator has roots in the Sacramento region?

a a a a a

NOTES: The new nonprofit does not receive a check in cost-effectiveness because there is no experience to base that on.

SAC PAT PROGRAMMING AND OPERATIONS COMMITTEE OPERATOR CRITERIA MATRIX

PROGRAMMING AND OPERATIONS PROGRAMMING & OPERATIONS COMMITTEE RECOMMENDS

• A clearly defined process that will lead to the best

possible business model, operating structure and programming model for the PAT.

• Some combination of regionally‐based groups, for

example, the Kings LLC and an arts nonprofit, might be the very best team to meet the criteria laid out in this report

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FINANCING

Kauffman Center for Performing Arts 30

FINANCING CAPITAL DEVELOPMENT

• Private funding sources include:

– Naming Rights and Corporate Sponsorships – Foundations – Individual Gifts and Pledges – A Broad-Based Grassroots Campaign

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FINANCING CAPITAL DEVELOPMENT

• Public funding sources include:

– The City of Sacramento

• Committed Funds
• The TOT
• Ticket Surcharges

– The State of California

• The I Bank
• Development of an Infrastructure Financing District

– Federal Programs

• The NEA
• Possibly the New Market Tax Credit Program

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FINANCING ONGOING FUNDING

• A potential new sales tax which would benefit the

PAT but also regional arts organizations in general

– Civic amenities could go to the ballot in 2016 or thereafter, either individually or paired with another cause – A potential $10-$20M could be generated annually for civic amenities and allocated among various projects/causes, including the PAT, and “return to source” needs

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FINANCING ONGOING FUNDING

• There are new and innovative arts funding models

which could point the way to a vehicle Sacramento could use to solve this issue

– Example: Cleveland Playhouse Square and Newark Performing Arts Center leverage other real estate assets as a revenue stream for sustainability – In concept, Sacramento could broaden the tent and leverage a new PAT along with existing arts’ facilities to develop, for example, new parking facilitates in midtown which could provide a revenue stream for development (through bonding) and for ongoing sustainability

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FINANCING FINANCING COMMITTEE RECOMMENDS

• Funding plan for a new PAT to consider not just

capital for development but also the adequacy of funding to sustain operational needs and thus ensure ongoing viability.

• For both development funding and for ongoing
• perational needs, both private and public funding

strategies will be considered. There are many possible combinations and everything is on the table for consideration.

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WHY A NEW PERFORMING ARTS THEATER?

The New World Center, Miami 36

WHY A NEW PERFORMING ARTS THEATER?

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Community Center Theater Sacramento Performing Arts Theater Size Too big for 95% of Arts groups Flexible, multiform Inflexible, rigid Function Marginal experience for: Programmed for maximum utility Performers Presenters Patrons Design Brutalist World-class opportunity Closed Not Sacramentan Landlocked Joins Downtown's Renaissance Obstructs Convention Center Contribution

PROPOSED NEXT STEPS

Penn State School Of Music Concert Hall 38

PROPOSED NEXT STEPS

• Subgroup of Task Force working with City Manager

and City Staff

• 3-6 months for a detailed assessment on major

components:

– Milestone Schedule – Site Selection – Concept Design – Operator RFP – Planning/Funding Mechanisms

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