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HomeMy WebLinkAboutMinutes - City Council - 01/14/2019 SPECIAL CITY COUNCIL 14 JANUARY 2019 The South Burlington City Council held a regular meeting on Monday, 14 January 2019, at 6:30 p.m., in the Conference Room, City Hall, 575 Dorset Street. Members Present: H. Riehle, Chair; M. Emery, T. Barritt, T. Chittenden, D. Kaufman Also Present: K. Dorn, City Manager; T. Hubbard, Deputy City Manager; D. Kinville, City Clerk; A. Bolduc, City Attorney; I. Blanchard, Project Manager; J. Rabidoux, Public Works Director; J. Fay, J. Timecki, CWD; H. Reese, Recreation Director; J. Murray, Librarian; P. Taylor, J.Kochman, L. Hodgkins, D. Albrecht, T. Dunn, K. Becker, P. Stern, L. Hirsch, M. Dowland, D. Schrapberger, H. Auclair, J. Auclair 1. Instructions on exiting building in case of emergency: Mr. Dorn provided instructions on emergency evacuation of the building. 2. Consider entering Executive Session to receive Legal advice on matters relative to collective bargaining and contracts: Mr. Barritt moved that the Council make a specific finding that premature general public knowledge of labor relations agreements with employees, collective bargaining; and, confidential attorney-client communications made for the purpose of providing professional legal services to the council would clearly place the council and the city at a substantial disadvantage. Ms. Emery seconded. Motion passed unanimously. Mr. Barritt then moved that having so found, the Council enter into executive session for the purpose of discussion the matters identified in the previous motion and to include in the executive session Messrs. Dorn, Hubbard and Bolduc. Mr. Chittenden seconded. Motion passed unanimously The Council entered executive session at 6:39 p.m. and resumed open session at 7:05 p.m. 3. Agenda Review: Additions, deletions or changes in order of agenda items: Mr. Dorn asked to add to Other Business an update on the Rotary Awards event and a brief discussion of impact fees as related to Early Education Centers in the city. 4. Comments and Questions from the public not related to the agenda: No issues were raised. 5. Consent Agenda: a. Approve and Sign Disbursement Mr. Kaufman moved to approve the Consent Agenda as presented. Mr. Barritt seconded. Motion passed unanimously. 6. Consider and possibly approve FY2020 South Burlington Enterprise Fund Budgets: Mr. Rabidoux noted that Jim Fay will be retiring this year after 40 years with CWD and acknowledged his outstanding service to the city. In presenting the Water budget, Mr. Rabidoux noted that the cost of meters is the actual cost; it is just a pass-through item. Mr. Fay noted CWD is experiencing a 60% increase in the cost of water. With the budget increase, the average South Burlington home will see an increase of $6.68 for the year. Mr. Rabidoux noted the purchase of a pick-up truck has been deferred to allow for an overlap with a new person who is replacing someone who is leaving. There has been a 4% drop in water loss with the new meters which represents $100,000 a year in savings. This means the new meters have paid for themselves in one year. Mr. Timecki noted that the recommended water loss is 10%, South Burlington is doing very well. With regard to stormwater, Mr. Rabidoux said they will be delivering more capital projects in the coming year, completing the work that was designed this year. A conceptual design upgrade of the Bartlett Bay Wastewater facility is continuing and will include more modern technology. The wastewater budget now includes no payment to the City of Burlington. The switch will take place in mid-May or early June of this year. Residents will not notice any difference. Mr. Rabidoux noted that the average South Burlington home will see an added $17.00 for the year for all three utilities. Ms. Emery moved to approve the FY2020 South Burlington Enterprise Fund Budgets as presented. Mr. Kaufman seconded. Motion passed unanimously. 7. Consider and possibly approve FY2020 South Burlington General Fund Budget: Ms. Riehle noted there is a motion on the table from the last meeting for approval. She also noted that this year’s budget was the “easiest” in her history on the Council. In the vote that followed, the approval motion was approved unanimously. Mr. Dorn credited Tom Hubbard and Sue Dory for their work in putting the budget together. 8. Receive and discuss recommendations from Committees related to: a. Construction of an indoor recreation facility at Veterans Memorial Park: Ms. Kochman noted that the Recreation and Parks Committee had unanimously approved a statement which she read into the record (attached). Ms. Reese then showed slides of visual conceptions of what could go into a recreation facility. She noted there is a lot of interest in the community in such a facility. There are 3 construction options: a. Hard (cost $19,700,645. With a 50-year life span) b. Semi-rigid (cost $15,800,000 with a 2-year life span) c. Inflatable dome ($13,165,710 with a 20-year life span) All of the options would have a hard front surface with office space, etc. Ms. Reece noted that the recommendation of the architect is not to go with option “C.” She also noted that solar potential would exist only with Option “A.” Mr. Chittenden noted that some costs can be defrayed through rentals. He asked if there has been an attempt to estimate those. Mr. Dorn said that would probably apply to a lot of the operational costs but probably not to the capital costs. Ms. Emery asked if the estimates include “soft costs” (e.g. basketball rims, etc.). Ms. Reese said those are included. Ms. Kochman cited the value of the connection to the Cairns arenas which would have other facilities, including refreshments and social gathering spaces. Mr. Barritt asked about the demand for use on a given day. Ms. Reese said the facility would be programmed from 5 a.m. to 10 p.m. daily including pickle ball, league play, yoga, jazzercise, etc. Program opportunities are endless. They could also run camps in the summer. Ms. Emery asked if there would be bleachers for audiences. Ms. Reese said that is included. This would enable the facility to host the Middle School basketball program which now has no bleachers. Ms. Emery also asked if there could be service to other county communities. Ms. Reese noted that the current volleyball and basketball leagues have non-city participants. Mr. Chittenden noted the potential use of the facility as a polling place. Mr. Kaufman said that could save money and there is ample parking. He added that the Cairns Arena people would be ecstatic to have this as part of the arena complex. Mr. Albrecht asked when there would annual operational costs available. Mr. Dorn said they will be available before there is a vote (not before fall). Ms. Riehle added that the city will work with the School District on the design which could include space the School District doesn’t have to build. Mr. Hodgkins said he runs an adult recreation club, and there is a huge demand for such a facility. There are no facilities for youth basketball programs, and they can bring in hundreds of people to the city for a weekend event. He added that South Burlington is a great location for teams from Montreal, Boston, New Hampshire, upstate New York, etc. b. Construction of a Creative Arts Center in City Center: Ms. Blanchard reviewed the history citing meetings with various group during which it became more and more apparent that there were many people in South Burlington involved in the arts or who have children in the arts as professionals. In addition, the State has become involved in the arts as an economic driver. Ms. Becker then noted a recent flurry of activity and the potential for collaborators and partners for a world class creative arts center in South Burlington. She cited a survey in which 98% of respondents felt such a facility is important in the community. What is being proposed is a 500‐700 seat main stage facility including a 150‐200 seat “black box studio theatre with the capability to stream and record. This would also be an educational facility with acting workshops, costume and prop workshops, etc., and the potential for camps, festivals, master classes including filming and video. Ms. Becker showed slides of a production done with the Vermont Theatre Academy. The project would also involve partnerships with South Burlington schools and UVM, addressing initiatives from Montpelier around flexible pathways, personalized learning and workforce development (Acts 73 and 60) including apprenticeship programs. Mr. Stern of New York State Originals also cited collaborations with school technology programs. He cited the opportunity to film productions with multi- camera angles. Ms. Hirsch, a member of the Vermont Symphony Orchestra (VSO) and other arts groups, noted the need for rehearsal and concert space and said that numerous groups would use this space, including the recording space. She noted that the VSO, which is the oldest state-aided orchestra in the country, doesn’t have the outreach it should or the ability to record. Mr. Dowland, President of the South Burlington Community Chorus, noted that they were one of the first municipally sponsored choruses in the country, but they don’t have a venue to perform in South Burlington. They now perform at St. Michaels or in local churches, where they can afford to go. More than half of their singers are from South Burlington, and they would love to perform for their own community. Ms. Becker said they have met with the Flynn and with Higher Ground who both felt there is a potential for their groups to use such a space. She noted that a n updated feasibility study will be given to the Council, and partnership conversations will be continuing. She invited the Council to tour the Northern State this spring. Mr. Dorn noted the both the School System people and the High School Principal have shown an interest in having a performance, and this would meet that need without having to duplicate the space this group could provide. Mr. Dunn added that the School System people are also interested in the learning component. Mr. Shrapberger cited the opportunity to teach young people how to “collaborate,” which is also when the business community needs from its workforce. Mr. Albrecht said he is a strong supporter of the arts but felt this was a big responsibility for the community to take on. He felt it should be analyzed with a “fine tooth comb,” and suggested looking to the Vermont Council on the Arts. The big question, he felt, was “who pays?” Mr. Dorn said there is an enormous amount of work to do on this, and it will not go to the voters for at least a year. He credited the committee for having gone this far. Mr. Kaufman noted the “seed work” on this is much more than was had for the hockey arenas. Ms. Blanchard stressed that this is a non-profit group and they accept donations. Mr. Chittenden felt one big question is where would such a facility go. He noted how expensive land is in City Center. Mr. Barritt felt it is something that could insure the long-term vitality of South Burlington and would be an amazing thing to have happen. c. Presenting a ballot item to the voters related to increasing the Local Option Tax by 1% to finance the debt on certain capital projects to be considered for approval at later date by the voters: Mr. Bolduc said he had worked with the City Charter Committee to draft language to add 1% to the local options tax as well as a fee/tax on short-term rental costs. Mr. Dorn noted the city could ask to receive 100% of the proceeds from such a tax or 70% (with 30% going to the state). He said the State Representative Maida Townsend strongly recommended the latter option. Mr. Taylor said the City Charter Committee focused on the 70% option when they addressed the Charter, Section 13-1507. They felt that the funds could be used for an indoor recreation facility, a pedestrian/bicycle bridge over Rt. 89, a performing arts center and/or a mixed use arena. The Charter amendment, however, would not identify the potential uses. The tax would be in effect for a 10-year period, and any project approved within that period could use those funds. The tax would continue until the debt from the last project is retired. The Committee also looked at Charter Section 13-1508 and considered a short-term car rental highway infrastructure tax. This could be done all in- house. Mr. Kaufman asked if it would require approval by the State Legislature. Mr. Bolduc said it would. Ms. Kinville noted that Manchester, Portland, Maine, and Plattsburg all have such a fee/tax. Mr. Bolduc added that the City of Burlington charges $4.00 “facility charge” per day at the Airport. Mr. Bolduc also noted that the regular sales tax does not extend to rental vehicles. Mr. Dorn said it is time to get some money to repair the infrastructure damaged by Airport vehicles on South Burlington roads. He cited the potholes on Airport Parkway attributed to truck use for Airport projects. Ms. Riehle said she would not want to abuse the sales tax but felt that the Recreation Center, the Arts Center and the bridge over I-89 all have regional implications. Mr. Kaufman agreed. He cited two concerns: presenting this to the public and the Legislative vote. He said there is already tremendous pressure to increase the rooms/meals tax, which could go to 13%. Ms. Emery noted that other communities are coming forward with the same ideas. She agreed with Ms. Riehle that South Burlington’s City Center is a regional driver, and felt that the Recreation center is a quality of life issue. Mr. Taylor suggested adding a line to the request that the local option taxes would take affect only after voters have approved a specific project. Mr. Barritt asked how much such a tax increase would yield. Mr. Hubbard said the best guess is that the rooms/meals tax would bring in $3,800,000 to the city and the sales tax increase about $2,500,000. Over $1,000,000 would go to the state as its 30% share. Ms. Auclair said she would definitely vote no unless she knew the specific projects for which the funds would be used. Ms. Riehle agreed that is part of the conversation that needs to be had with the public. She noted there will be another discussion on this at the next Council meeting. 9. Other Business: Mr. Dorn noted that South Burlington Rotary Honors Night is 24 January, 5:30‐7:30 at Trader Duke’s and Council members should let hm know if they wish to attend. Mr. Dorn also noted a request from an Early Childhood Education provider regarding traffic impact fees which are impacting the enabling of new centers. Ms. Riehle and Ms. Emery agreed to meet with the providers to understand the issues. Ms. Auclair said they are having a problem understanding whether or not their property is or is not exempt from Interim Zoning. She said they were under the impression that it is, but there now seems to be confusion about that. Ms. Emery said the motion she made was from the language in the Auclair contract and the intention was to respect that contract. Heather Auclair said she is now in a “lockdown” position to get a subdivision that would get water and sewer onto her property. Ms. Riehle explained that even if the property is under Interim Zoning, Ms. Auclair can come to the City Council after the DRB hearing to get the subdivision approved. Council members felt they would like to hear from the Planning & Zoning Director on this issue and agreed to discuss it at next Monday’s meeting. Mr. Kaufman asked the Auclairs to bring drawings of the property to that meeting. Ms. Riehle stressed the Council’s willingness to help resolve this issue. Mr. Dorn suggested the Auclairs get information to the city by Friday, including the sequence of events, plans, issues, etc. As there was no further business to come before the Council, Mr. Barritt moved to adjourn. Mr. Kaufman seconded. Motion passed unanimously. The meeting was adjourned at 10:17 p.m. Published by ClerkBase ©2019 by Clerkbase. No Claim to Original Government Works. A FEASIBILITY STUDY SOUTH BURLINGTON CITY CENTER FOR THE ARTS REVISED JANUARY 2019 DON HIRSCH DESIGN STUDIO, LLC 95 UPPER BARNETT HILL | MONTPELIER, VT 05602 | 802.233.9623 | DONHIRSCHSTUDIO.COM Don Hirsch Design Studio, LLC January 2019 Page 2 Table of contents Introduction & Background Page 3 Project Description Page 4 Community Profile Page 5 Market Analysis Page 9 Operation Page 10 Market Description Page 15 Economic Impact Page 17 Management Page 19 Ownership & Operation Page 21 Funding Page 22 Operating Pro Forma Page 23 Don Hirsch Design Studio, LLC January 2019 Page 3 Introduction Nation-wide, cities and towns large and small have eyed multiuse arts centers as a means to enhance economic development and anchor downtown revitalization efforts. Arts and culture play a significant role in the shaping of a community’s sense of place and in improving the quality of life for residents and visitors. The City of South Burlington recognizes the importance of the arts and understands that communities that invest in arts and cultural infrastructure realize the additional benefits of jobs, economic development, and an improved quality of life. “The vision for City Center is to effectively blend existing neighborhoods, commercial areas, natural areas, undeveloped properties, and undeveloped lands into the true downtown of South Burlington. The downtown will provide increased connectivity through new cross streets; support an integrated mix of housing retail, and employment; and be a primary focus point for compact, walk-able development within the City. South Burlington’s City Center initiative, which encompasses much of this District [Central District], will support this objective by establishing and enhancing public buildings and gathering spaces, and building or reconstructing a series of streets that would connect to the principle corridors of the area. Combined, these provide opportunities for housing and employment in an area well served by public transit and existing public utilities, and create linkages to existing neighborhoods in the area.” [South Burlington Comprehensive Plan, Adopted spring 2016] “This vision for South Burlington’s downtown – City Center – has been a dominant feature of the City’s adopted Comprehensive Plan as far back as 1985. For more than thirty years the community has planned for and invested in the development of our downtown. That vision is now beginning to become a reality.” Background Late in 2015, inspired by a series of news articles surrounding the reimagining of South Burlington's University Mall and anticipated the development of the City Center district, local theatre artist/educator Tim Barden had an idea. He reached out to South Burlington City Council president Helen Riehle and asked a simple question. "Had the city considered the possibility of developing a performing / creative arts facility as part of the City Center vision?" In fact, during the 30-year genesis of City Center the idea hadn't really been considered. All-the-while in other areas of Chittenden County, theatre artists had been longing for a mid-sized performance facility [350 – 500 seats] to accommodate smaller presentations. Why not in South Burlington? Riehle connected Barden with City Manager Kevin Dorn and Ilona Blanchard, Project Manager and the trio quickly began brainstorming ideas. Shortly thereafter, an ad hoc committee of local and New York arts professionals, business leaders, educators, and supporters was established to work on the project. The new group conducted several community focus group sessions to determine what a performing arts center in City Center might look like and what it might do for the City. Shortly after the focus group sessions, the citizens of South Burlington decisively voted to approve a bond in support of the reconstruction of Market Street, the development of City Center Park—Dumont parcel and costs related to the application, implementation, and administration of the TIF District. This is the first step toward creation of a vibrant, thriving downtown district for South Burlington. South Burlington City Center for the Arts envisions a facility in the City of South Burlington that can be a working theatre where Vermont artists can create with scene shops, dance studios, costume shop capabilities and more. By the end of 2016 South Burlington City Center for the Arts was incorporated as a Vermont 501 (C) 3 non-profit organization led by a volunteer board of directors. Don Hirsch Design Studio, LLC January 2019 Page 4 The purpose of South Burlington City Center for the Arts Inc. is to elevate, enrich, and expand hearts and minds on the stage, in the studio, in class, and in the community by employing and encouraging development of the creative arts in South Burlington’s City Center and beyond. To such an end South Burlington City Center for the Arts will act as a catalyst for economic and cultural development by establishing a hub of activity for exemplary creative arts entertainment and education within City Center. [City Center for the Arts By-Laws, 2016] Project Description South Burlington City Center for the Arts strives to inspire community vitality through performing arts, media and visual arts, and arts education programs. The SBCCA will feature dramatic community gathering places including: exhibit areas, a 500 - 600 seat performance space, a 150 seat multi-use black box studio, new media production, and arts education studios all designed to increase availability and quality of the arts in the area. An elegant, two-story atrium entry and gallery will lead patrons in to the arts center. The lobby, complete with box office and concession offerings will provide a spacious and inviting gathering area for patrons. The décor will reflect the beauty of the region with natural-toned hardwoods providing patrons with an environmentally-conscious Vermont facility. The outdoor courtyard and lobby entrance create an intimate atmosphere as a overture to a special event. The cabaret theatre will host up to 300 patrons in a flat-floor cabaret style setting, 400 in a traditional theatre style setting, and more than 500 patrons standing. The space will feature concerts, dinner theatre, and educational experiences. The atrium lobby may be used for informal functions, event registration, and ... Multi-purpose theatres are becoming increasingly advanced with sophisticated stage lighting equipment, sound, and multimedia capabilities. The 500 - 600 seat multi-purpose theatre, dynamic and designed for the future, will host a wide range of programming from the traditional to the experimental. Events may include community gatherings, plays and musicals, creative theatre residencies with workshops, master classes, discussion sessions, and commissioned projects for new works. Audience intimacy will be primary, allowing smaller audiences to feel as comfortable and engaged as an audience with standing room only. The theatre will have complete stage equipment systems, including automated rigging, full stage lighting systems, and state-of-the-art sound systems. The 150 seat black box studio will provide an exciting and flexible performance space for intimate and innovative programs and events utilizing portable tiered seating units arranged in a variety of settings. In an open seating plan the black box studio has almost limitless possibilities. Don Hirsch Design Studio, LLC January 2019 Page 5 Backstage adjacencies will include dressing rooms, green room, scene shop, and costume shop. Near-by arts education spaces will showcase dance studios and a creative maker space. In addition, the Center will include rehearsal space, and administrative and production offices. South Burlington City Center for the Arts envisions a professionally staffed facility in the City of South Burlington that can be a working theatre where Vermont artists can create! SBCCA will have a powerful catalytic effect on the character of South Burlington, on its growing creative economy, and on the economic well being of the Champlain Valley. Community Profile South Burlington, Vermont, the 2nd largest city in the state, is located in Chittenden County of Northwestern Vermont and bordered by the communities of Burlington, Winooski, Colchester, Essex, Williston, Shelburne, and Shelburne Bay on Lake Champlain. It is one of the principal municipalities of the Burlington, Vermont metropolitan area. The city includes a central hub, City Center, which serves as the main business district. Residential neighborhoods surround City Center to the east and south. The communities of the Chittenden County offer a diverse mix of city, suburb, and rural settings, and a wide range of beliefs, cultures, and, values. The primary market area for South Burlington City Center for the Arts encompasses the communities of Chittenden County, the most heavily populated region in Vermont, stretching eastward from the shores of Lake Champlain to the base of the Green Mountains. The state's largest city, neighboring Burlington, is located within the County, home to more than 160,000 residents from Milton to Huntington and Burlington to Underhill. It is likely that the SBCCA will draw audiences from well beyond these boundaries for special events and significant performances, as the County sits in the heart of a larger region populated by nearly 300,000 people. Chittenden County is bordered by Addison, Grand Isle, Franklin, Lamoille, and Washington Counties in Vermont and adjacent to Clinton and Essex Counties in New York. A network of interstate and state highways and commuter services provide easy access to the area. [U.S. Census Bureau, 2011-2015 American Community Survey 5-Year Estimates] The population in the County is spread across the ages with 24 % residents under the age of 20, 10.9 % aged 20 to 24years, 25.4 % aged 25 to 44 years, 27 % aged 45 to 64 years, and 12.8 % residents 65 years of age or older. The median age in Chittenden County is 36.3 years. 24% 10.9% 25.4% 27% 12.8% Under 20 20 -24 25 -44 45 -64 65 + Population by Age Don Hirsch Design Studio, LLC January 2019 Page 6 Population by Gender 51.2 % of the population is female and 48.8 % of the population is male. 91.6 % are White, 2.4 % are Black or African American, 0.2 % are American Indian or Alaska Native, 3.2 % are Asian, and 2.1% are Persons of Two or More Races. [U.S. Census Bureau, 2011-2015 American Community Survey 5-Year Estimates] Population by Ethnicity 91.6% 2.4%0.2%3.2% White Black or African American American Indian or Alaska Native Asain Two or More Races Don Hirsch Design Studio, LLC January 2019 Page 7 93.8 % of Chittenden County residents 25 years and older have completed high school or higher. 49.4 % have earned Bachelor’s or Graduate degrees [U.S. Census Bureau, 2011-2015 American Community Survey 5-Year Estimates] Level of Education Areas of Employment 70.7 % of residents, age 16 years and over are in the work force. 6 5 4 3 2 1 0 2 4 6 8 Others including Construction, Information, & Whole Sale Trade. Finance, Insurance, Real Estate, & Rental and Leasing Arts, Recreation, Hospitality, & Manufacturing Professional, Scientific, Management, Administrative, & Waste Management Services Retail Trade Educational services, health care, & social services 93.8% 49.4% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% Completed HS or Higher Earned Bachelor's or Graduate Degree Age 25+ Don Hirsch Design Studio, LLC January 2019 Page 8 Educational services, health care, and social services (1) provide most employment opportunities, followed by retail trade (2); professional, scientific, management, administrative, and waste management services (3); arts, recreation, hospitality and manufacturing (4); finance, insurance, real estate, and rental and leasing (5); and others including construction, information, and wholesale trade. [U.S. Census Bureau, 2011-2015 American Community Survey 5-Year Estimates] Chittenden County’s median household income is $65,350 ranking #1 in the state of Vermont. Interestingly, the next highest ranked counties Grand Isle [2], Addison [3], Washington [4], and Franklin [5] are among the five Vermont countries that boarder Chittenden County. Lamoille is the other bordering county and it ranks seventh statewide. The median household income for Vermont is $55,176. [U.S. Census Bureau,2011-2015 American Community Survey 5-Year Estimates] Median Household Income Higher income households spend significantly more on recreation and entertainment activities and this sector has seen greater income growth than lower income households. The following chart illustrates average per person, per event spending by categories of expense. The difference between resident and non-resident spending is primarily in meals, lodging, and transportation. Arts and cultural events, unlike many other industries, contribute to the local economy by leveraging considerable amounts of event-related spending by attendees. Nationally, the typical attendee spends an average of $24.60 per person, per event, in addition to the cost of admission. Restaurants, hotels, retail businesses, and personal service such as child care all benefit from arts and cultural events. Businesses that recognize the spending associated with event attendance and cater to this market can realize economic gain. $65,350 $62,608 $59,688 $58,788 $58,199 $54,000 $56,000 $58,000 $60,000 $62,000 $64,000 $66,000 Income $13.14 $2.74 $3.51 $0.36 $2.65 $1.31 $0.89 Meals & Refreshments Gifts & Souveniers Lodging Child Care Transportation Clothing & Accessories Other Attendee Spending Per Person/Per Event Don Hirsch Design Studio, LLC January 2019 Page 9 Spending differs between local and non-local audiences. Research conducted in conjunction with the 2010 “Arts and Economic Prosperity IV” report issued by Americans for the Arts, demonstrated spending trends of resident and non-resident audiences. The study defined local residents as those people living within the county where the event was held, and non-residents as those people who traveled from outside the county. Local audiences made up 68.2 percent of attendees, while non-local audiences made up 31.8 percent. Previous economic and tourism research has shown that non-local attendees spend more than their local counterparts and this study reflects those findings. Data shows that non-local attendees spent twice as much as local attendees [$39.96 vs. $17.42], indicating that when a community attracts cultural tourists, it reaps significant economic rewards. “Arts & Economic Prosperity IV demonstrates that America's arts industry is not only resilient in times of economic uncertainty, but is also a key component to our nation's economic recovery and future prosperity. Business and elected leaders need not feel that a choice must be made between arts funding and economic prosperity. This study proves that they can choose both. Nationally as well as locally, the arts mean business!” [Arts and Economic Prosperity IV, Americans for the Arts, 2010.] Market Analysis In defining the potential market area for the City Center for the Arts, four distinct uses were identified – Producing, Presenting, Rental, and Tourism. Each of these uses has a particular market to consider, some specific to the City of South Burlington such as municipal programs, while others draw from a broader market, for example the production of performing arts activities. Trade Area Based on these data, three trade areas centered on the South Burlington City Hall were defined: Core Trade Area: 10-mile drive from City Hall Primary Trade Area: 30-mile drive from City Hall Secondary Trade Area: 50-mile drive from City Hall Attendance by individuals living within a 10-mile drive, or core trade area, will likely account for an estimated 50 percent of attendance at presenting events. Core area residents are more likely to attend and to attend more frequently than residents of either the primary or secondary areas. Residents of the primary trade area can be expected to make up roughly 35 percent of the facility’s total patronage. Although a number of these individuals will regularly attend programs, the majority are likely to attend programs with less frequency than those living within the core trade area. They will likely attend particular performances that strike their interest; a favorite performer or special production. 50% 35% 15% Core Trade Area Primary Trade Area Secondary Trade Area Don Hirsch Design Studio, LLC January 2019 Page 10 The remaining 15 percent of the attendance will consist of people who live in distant communities or those people visiting South Burlington as tourists in the region. Residents from the secondary trade area include those who work at area businesses and attend a performance after work. Some will be regular patrons, but most will only attend selected programs. Operation The South Burlington City Center for the Arts will be available year round for arts and cultural events, educational activities, and entertainment. The Center, with a mystique all its own, may be used to present events by businesses, community groups, individuals, and nonprofit organizations. The experience of an intimate, inviting, and welcoming City Center for the Arts is served, in part, by the varied activities hosted and presented within the Center. The South Burlington City Center for the Arts will serve the community in four specific areas: • As a Producing Facility where resident professional dance, theatre, and orchestral companies will premier original works and tour them to other theatres. • As a Presenting Facility where the South Burlington City Center for the Arts presents professional touring shows of dance, family entertainment, theatre, music, and educational opportunities. • As a Rental Facility for local arts groups, professional promoters, businesses, organizations, and individuals. • As a Travel and Tourism attraction that includes working in partnership with existing attractions and special events. Producing – Several resident dance, theatre, and chamber orchestras may occupy the City Center for the Arts at times throughout the year with high quality productions created exclusively for the SBCCA theatres. Students and community members can watch new works unfold and experience the creative process. Drawing on creative talent from Vermont to New York City, professional companies will bring the joy and wonder of live performance to residents of the area and beyond with seasonal offerings. Master classes, lessons, workshops, and arts camps will be on-going activities. Presenting - As a presenter of live art and a provider of services to the community, educational centers, and local and regional audiences, offerings at the multi-purpose South Burlington City Center for the Arts will reflect and support the values, vision, and mission of the Center. Programming at SBCCA is diverse and engaging, fun and professional, inclusive and innovative. The eclectic blend of performing arts programming may include: • Dance: professional touring companies, student recitals • Music: big band, blues, chamber, choral, classical, country, festivals, folk, hip hop, jazz, light opera, and contemporary for young audiences • Theatre: Broadway musical, community, family, poetry slams, readers theatre, summer stock, touring companies • Comedy Don Hirsch Design Studio, LLC January 2019 Page 11 • Community Gatherings • Conferences • Debates and Lectures • Exhibitions and Visual Art Displays • Magic • Private Functions: award ceremonies, fundraisers, galas, parties • Student Performances and Productions • Specialty Shows - Antiques, Auctions, Crafts, Cooking, Fashion • Talent and Variety Shows, Open Mic amateur night • And more….. Currently, there is not a facility in the Champlain Valley that can present such a broad and reaching spectrum of public and private events on a regular basis. The City Center for the Arts will create new possibilities and opportunities for performing arts and entertainment presentations, and corporate meetings in a facility designed to accommodate activities and events unlike any other in the region. The City Center for the Arts mystique and the caliber of events will be the attraction that sets SBCCA events apart from other presentations in the region. Education - In addition to public presentations, the City Center for the Arts will work with Chittenden County educators and students in grades K – 12 to create multidisciplinary educational opportunities for the enhancement of private and public classroom curricula. Don Hirsch Design Studio, LLC January 2019 Page 12 Goals: • To build long-term partnerships between Chittenden County educational centers and City Center for the Arts • To work with regional educators to offer quality performing arts events that meet the needs of students and educators • To help educators ensure that the arts are a vital part of every child’s education • To afford the students of the Chittenden County professional theatre experiences in a setting where history, language arts, mathematics, and science may come to life. • To provide students with an opportunity to attend live performing arts events, sharing these experiences with others • To create enthusiasm and motivation for learning through positive theatre experiences and appropriate program presentations • To foster the growth of creative thinking and creative abilities • To promote the benefits of curiosity, discovery, and life-long learning through lively and invigorating performing arts events. • The City Center for the Arts will continue to explore the desires and needs of the Chittenden County communities for the development of programming and educational opportunities. The City Center for the Arts will also engage with area schools to encourage and support the creativity of school districts as they develop and expand high-quality educational experiences that are an integral part of secondary education in the evolving 21st Century classroom. These flexible pathways to secondary school completion [the Flexible Pathways bill; S.130/Act77 2013] promote opportunities for Vermont students to achieve postsecondary readiness through high-quality educational experiences that acknowledge individual goals, learning styles, and abilities beyond the classroom. Classes and workshops will be contracted to qualified professionals and specialists or instructed by volunteers when appropriate. A partnership with the South Burlington Department of Parks & Recreation might be developed in this area. Rentals - The City Center for the Arts will be available on a rental basis to businesses, local arts groups, professional promoters, organizations, and individuals. Suitable and qualified public venues are at a premium in the Chittenden County. Finding appropriate space to rehearse, perform, and gather for meetings and conferences is a never-ending challenge. While some space does exist for some of these activities, none of the venues in the area can meet all of the needs arts groups, businesses, civic organizations, and promoters require. City Center for the Arts will meet these needs in a professional fashion and provide additional services and opportunities as well. Community focus group gatherings in October 2016 brought out a number of individuals and organizations expressing a desire to use City Center for the Arts for meetings and presentations. These organizations include: • Burlington City Arts • Centerpoint School Don Hirsch Design Studio, LLC January 2019 Page 13 • Higher Ground Presents • Lyric Theatre Company • New York Stage Originals • South Burlington Community Chorus • University of Vermont Theatre Department • Vermont Comedy Club • Vermont Public Television • Vermont Stage Company Travel and Tourism - Tourism is an important industry in Vermont and one that is vital to the state’s economic growth and stability. According to the Vermont Department of Tourism and Marketing, part of the State’s Agency for Commerce and Community Development, tourism generated more than $2.6 billion in spending by travelers. Of this, $340 million was spent on entertainment and recreational activities. The tourism and recreation sectors represent 8% of the Vermont workforce and more than 5% of wage and business owner income. As competition for the tourist’s dollar expands, arts and culture have been proven a major attractor for travelers and their spending. Vermont’s tourism industry employs more than 31,000 Vermont workers and generates 8% of the state’s GDP. Travelers touring Vermont seek out arts and culture offerings ranging from a visit to the Shelburne Museum to a dinner-theatre cruise on Lake Champlain, or an art walk stroll to the Discover Jazz Festival. The 2012 U.S. Census Bureau reports that concerts and festivals in Vermont generated more than $15 million for “live performing arts.” Annual reports of the largest of these businesses in Vermont, including the Flynn Center for Performing Arts and Catamount Arts, show that individual organizations represent large proportions of this amount. [Vermont Tourism 2015 Benchmark Report, 2017 release] Travelers who engage in arts and culture tourism activities visit the following: • Art galleries, theatre, and museums • Historic sites, communities, or landmarks • Cultural events, festivals, and fairs • Ethnic communities and neighborhoods • Architectural and archaeological treasures Don Hirsch Design Studio, LLC January 2019 Page 14 Impact from arts and culture tourists on local businesses is significant as travelers who include art and cultural events in their itinerary differ from other travelers in the following ways: • Spend more $623 vs. $457 • Use a hotel, motel, or bed-and-breakfast 62 percent vs. 55 percent • Spend $1,000 or more 19 percent vs. 12 percent • Travel longer 5.2 nights vs. 3.4 nights The Travel Industry Association of America and Partners in Tourism issued a report on arts and culture tourism that indicated: • 65 percent of all adult travelers attended an arts and culture event while on a trip that was 50+ miles away from home. • 32 percent of these cultural travelers stayed longer because of the event. • Of those that stayed longer, 57 percent extended their trips by one or more nights. [Sources: Travel Industry Association of America Travel Scope survey 2003; The Historic/Cultural Traveler, 2003 Edition] The Chittenden County area already hosts some of the top arts and culture tourism attractions in the state with fairs and festivals, galleries, historic sites, museums, and performing arts events. As a result of these draws and continued efforts toward downtown development, South Burlington will be connected to the greater regional cultural activities and appeal to visitors from beyond the immediate geographic area. Activities at the City Center for the Arts will complement these powerful events and in its own right bring new visitors to the area. As an attraction, City Center for the Arts will provide: • A unique venue for entertainment and education - Eclectic offerings will provide patrons and visitors an experience unmatched anywhere in the Chittenden County. • An evening anchor attraction - Evening activities are important to the cultural and economic vitality of Chittenden County. Currently, the community lacks a regular evening attraction to draw visitors to the area, but the programming and promotion of the City Center for the Arts will target travelers, enhance evening activity at shops and restaurants, and increase transient guest tax revenues for the community. • Daytime activities at the Center may include educational opportunities, gallery talks, conferences, and meetings • A location for events - Large scale gathering areas are at a premium in the area, forcing many groups to look to other communities for events that require professional presenting opportunities in dynamic and luxurious settings. By making the Center available to local and regional associations, corporations, civic groups, and event planners on a rental basis, City Center for the Arts will target a new market of visitors. Special events at the Center will be contracted to qualified vendors. Don Hirsch Design Studio, LLC January 2019 Page 15 Market Description Historically, people from a large trade area have traveled to Chittenden County for entertainment and recreation. The South Burlington City Center for the Arts is centrally located in Chittenden County and is easily accessible. The city has served as the center of activity for many of its surrounding communities and thousands of travelers visit South Burlington each year with its proximity to historic sites, museums, Lake Champlain, and Vermont’s interstate and state highways. Through aggressive marketing, the community has been a successful promoter of the rich assets South Burlington has to offer. Events and attractions are promoted and profiled through Chittenden County Chambers of Commerce, the Vermont Department of Tourism and Marketing, through social media, radio and television advertising, and in local and regional newspapers papers. With its location in the heart of a new downtown, the City Center for the Arts will offer a market attraction that can be divided into two areas: programming with a local emphasis, and programming with a regional appeal. The market area will expand depending on the type of event City Center for the Arts is offering. Local Programming The market area for local emphasis programming encompasses the communities of Chittenden County from Milton to Huntington and Burlington to Underhill. Programming with local emphasis includes events with a hometown feel, produced by area organizations. Community theatre, dance school recitals, youth choirs and orchestras, and talent shows for charity characterize live local programming. While local emphasis programming will undoubtedly appeal to friends and neighbors of casts and crews, the freshness, spontaneity, and passion of local programming will make these events at the City Center for the Arts attractive to the many visitors from outside the area as well. Regional Programming Events with regional appeal extend the market area beyond the boundaries established for programs with local-emphasis. Live performance programming with professional entertainers and touring artists, and the positioning of the City Center for the Arts as a tourist attraction, will draw patrons from across the region. And programming highlighting regional history can target cultural heritage tourism as well. Through marketing and working with existing attractions and events in the region, the City Center for the Arts can develop an audience with a broad geographic reach. With the responsible downtown development it is believed that South Burlington can become a major travel destination. Don Hirsch Design Studio, LLC January 2019 Page 16 Competition/Complementary The South Burlington City Center for the Arts, with several dynamic facilities offering intimate and large-scale entertainment experiences, stylish decoration, and state-of-the-art cultural amenities, will prove an unrivaled performance venue. The outstanding features of the City Center for the Arts, coupled with its creative and unique programming not available anywhere in the region will provide an experiential package for patrons. Patrons of the City Center for the Arts will purchase tickets to an event as much to marvel at the inspired architecture as they will to be enlightened by the performance. Since there are few facilities in the area that will compete with the City Center for the Arts as a unique venue, competition will focus primarily on programmatic offerings. The competition, then, can be addressed in two categories: local performance venues, and regional performance venues. Local Performance Venues Chittenden County has an emerging and exciting arts scene with cultural festivals throughout the county and a visual and performance hub in Burlington. Although some performance is offered, most venues are small and in some cases outdoor facilities not designed for year round activity. The South Burlington High School [capacity 468] houses a multi-use auditorium with adequate stage lighting and sound equipment. The stadium-style seating and technical capabilities make the auditorium an appealing space and the proscenium dimensions and stage depth are attractive elements as well. Wing space, however, is limited as are dressing rooms and technical support spaces. Seating capacity for school events is ample, but may prove difficult for many renting organizations to fill. Because of the many curricular and extra-curricular events the high school has historically presented, scheduling for outside organizations may be an obstacle. Higher Ground [capacity 300/750 standing; 175/350 seated] is the region's premiere nightclub and music hall. The facility has several spaces. The Showcase Lounge provides an intimate performance space for singer/songwriters, comedians, and theatrical presentations, while the larger Ballroom hosts some of the biggest names in music today. Higher Ground is available for private rental with rates ranging from $1,350 to $2,700 + $1,000 additional fee for non-alcoholic events. Other fees also apply. Flynn Theatre [capacity 1,411/150] is an Art Deco landmark in downtown Burlington, VT, hosting the finest international, national, and regional performing arts events in its main theatre and in the FlynnSpace, an intimate, 150-seat venue. The theatre hosts a regional box office for ticket sales to a variety of events. Flynn Arts is an arts education program at the theatre for learners of all ages. The Flynn provides a well-equipped and managed home for the arts and services that include a box office, ushers (Flynn Spirits), concessions, and professional crew. While educational studios primarily serve the Flynn’s own education programs, the Flynn provides a performance venue for the Vermont Symphony Orchestra, the Vermont Youth Orchestra, Lyric Theatre, and Vermont Stage Company, as well as the UVM Lane Series, and many local and touring groups. The quality of our facilities and services attracts leading concert promoters and major events in Burlington. A gallery with rotating exhibits of area artists, two education studios, and adjoining lobbies are available for receptions or breakouts. Rental rates range from $2,280 to $3,650/day + additional fees. Don Hirsch Design Studio, LLC January 2019 Page 17 Main Street Landing is located on the Burlington waterfront with spaces that include a Great Room, Atrium, Black Box Theatre, Film House, Lake Lobby, Gallery, and Train Station. Rooms are used for meetings, events, film showings, fundraisers, private parties, plays, talent shows, etc. The Black Box offers green room and dressing room adjacencies. Rental rates are reduced for non-profit organizations and performances. Spotlight Vermont is a performance and performing arts education facility on San Remo Drive in South Burlington. It houses several rehearsal studios the largest of which is convertible into an 80 seat black box theatre with professional sound and lighting. As a performance venue it presents and produces a wide variety of events including fully staged musicals, theatre, dance, music cabarets, and performances by many local musicians. The City Center for the Arts will be located in the heart of the new downtown. The ambiance of the Center will be unmatched in the region and accommodations for patrons and performers unsurpassed. The 500 - 600 seats of the Main Stage Theatre will provide an intimate performance experience and will generate buzz and excitement. The theatres will be available year round with predictable scheduling, and the professional staffing will provide an unrivaled event experience for clients and patrons. Regional Performance Venues There are a multitude of venues in the greater South Burlington area that provide opportunities for regional events: These venues range from the large scale Champlain Valley Exposition in Essex to area college and university programs. Travel distances, the characteristics of the facilities, and the types and amount of programming will determine the extent to which these facilities compete with the City Center for the Arts. Champlain Valley Exposition (seating capacity 5,000) a large scale outdoor venue hosting concerts, sporting events, conferences and trade shows. The venue has good performance amenities, adequate seat comfort, sound, lighting, and concessions but the vastness of the venue does not compare to the intimacy of the City Center for the Arts. Champlain College, University of Vermont, and St. Michaels College offer interesting programming in a variety of settings. Appearance, performance amenities, seat comfort, acoustics, sound, lighting, and concession opportunities vary as well. Arts patrons not affiliated with the institutions tend to shy away from performances on college and university campuses. It is difficult to compare the City Center for the Arts to any of these facilities. All are diverse and provide differing arts and cultural experiences. It is believed that many patrons will attend events at the City Center for the Arts in the heart of downtown South Burlington, for its unique presentations and unrivaled ambiance. Economic Impact The establishment of the City Center for the Arts will have a significant impact on the region’s economy. As a thriving community focal point, it will: • Serve as a center for performing arts for the region’s artistic, cultural, educational, and entertainment needs. Don Hirsch Design Studio, LLC January 2019 Page 18 • Contribute to the promotion of South Burlington as a destination. • Serve as an evening anchor attraction to encourage downtown vitality. • Stimulate activity in area restaurants and other retail establishments. • Increase spending on goods and services in the downtown and the surrounding area. • Stimulate growth of local arts organizations. • Provide construction employment. • Provide permanent employment for theatre staff. Research findings from the 2010 Arts and Economic Prosperity IV study, a national economic impact study of nonprofit arts organizations and their audiences conducted by the Washington D.C based Americas for the Arts, demonstrated that the arts are central to the economic growth and sustained vitality of communities nation-wide. The results of the analysis were based on data from communities of “Fewer than 50,000” to communities of “1,000,000 or More.” The figures provided for the economic impact of City Center for the Arts are estimates based on calculations for communities of “50,000 – 99,999.” The figures are indicative of the substantial impact a performance center can have on the local and regional economies. The following table demonstrates the potential revenue generation of the City Center for the Arts in its first full year of operation. ARTS AND ECONOMIC PROSPERITY Total Expenditures 1 FTE Jobs 2 Household Income 3 Local Government Revenue 4 State Government Revenue Impact of Arts Organization $645,990 22 $463,407 $22,506 $32,829 Impact of Arts Audience $1,472,140 36 $736,836 $64,833 $85,826 Impact of Organization and Audience $2,118,130 58 $1,200,830 $87,339 $118,655 Definitions 1. Total Expenditures: The total dollars spent by the SBCCA during the first year of operation. 2 FTE Jobs: The total number of full-time equivalent jobs in the community that are supported by expenditures made by the SBCCA and/or its audiences. 3 Household Income: The total dollars paid to community members as a result of expenditures made by SBCCA and/or its audiences. Includes salaries, wages, and proprietary income. 4 Government Revenue: The total dollars received by local and state governments as a result of expenditures of the SBCCA and/or its audiences. Nationally, the arts and cultural industry generates more than $30 billion in revenues for local, state, and federal governments annually. This is compared to the less than $4 billion in government support for arts and culture. Don Hirsch Design Studio, LLC January 2019 Page 19 Management City Center for the Arts may be operated by individuals or organizations leasing the property. Typically, this would be a non-profit 501(C) 3 organization led by a volunteer board of directors including a President, Vice President, Secretary, and Treasurer overseeing the affairs of the corporation. The responsibilities of the Board of Directors include: • Determining and monitoring the strategic direction of the South Burlington City Center for the Arts. • Hiring and evaluation of the Executive Director. • Self-evaluation and self-governance. • Being ambassadors for the City Center for the Arts. • Generating revenue for the City Center for the Arts. Personnel Staffing at the City Center for the Arts will start on a small scale. Growth should only occur after the Center is operational, the staff is well versed in its running, and the needs of the operation are evaluated and fully understood. The staff for the City Center for the Arts will include an Executive Director, Executive Assistant/General Manager, Facilities Manager, Office Manager, and Box Office Manager/Volunteer Coordinator to oversee the daily operation of the Center. A Technical Director will supervise theatre activities with theatre services billed directly to clients or production budgets, and trained volunteers will staff concessions, ticket collection, and ushering positions. In order for this staff configuration to function successfully, all members of the staff must be willing to take on varied responsibilities. Executive/Artistic Director Responsibilities of the Executive/Artistic Director include: Carrying out the purpose of the organization as defined by the board of directors Developing and implementing long-range planning Acting as chief public spokesperson for the South Burlington City Center for the Arts. Represent SBCCA at industry conferences Acting as primary facilitator and impetus behind fund raising efforts Developing annual operating and programming budgets for board adoption Maintaining financial controls and reporting systems Setting operational policies within the guidelines set by the board of directors Select the season and programming Supervise and support the outside directors who direct at SBCCA Supervise productions from auditions through closing Scout for new scripts and talent Developing and implementing marketing for programs Scheduling the theatre with the General Manager Negotiating and booking of touring shows Contract management and document maintenance Hiring and contracting actors and creative team for in-house productions Hiring and firing of all staff Don Hirsch Design Studio, LLC January 2019 Page 20 The Executive/Artistic Director is the individual who facilitates the vision of the board of directors. In addition, the Executive/Artistic Director is active in community affairs and maintains membership in national organizations serving theatres and arts and entertainment agencies. Executive Assistant/General Manager: Responsibilities of the Executive Assistant/General Manager include: Support Executive Director with execution and oversight of daily operations Provide support in the development of programs and organizational plans Make facility and program enhancement recommendations. Oversee of database management and reporting. Manage assigned programs. Execute marketing and promotional plan for Center and its events Manage all permanent and contracted staff. Oversee the Technical Director with smooth running of the venue and performance spaces Plan the mounting and scheduling of all SBCCA productions. Work with the Executive Director to contract, manage, and support all in-house and visiting company productions. Support negotiations with visiting companies Ensure that staff collaborate to maintain efficient operational systems Run and reconcile production budgets Authorize production invoices, petty cash expenditure and royalty payments Oversee payroll for permanent staff, working with the Executive Director to ensure accuracy at all times. Oversee facility maintenance program for efficiency and safety. Undertake any other duties as may be reasonably required. Facilities Manager Responsibilities of the Facilities Manager include: Oversee all facility and plant operations and maintenance typical of a multi-purpose performing arts center. Coordinate facility operations with show and program development. Coordinate with the Executive Director and General Manager, and contract resources in planning and supporting security and maintenance operations Prepare annual facility operating and capital maintenance budgets Supervise operational systems for the facility, including safety procedures and technician training Monitor and manage external and interior lighting systems, elevators, etc. Areas related to the facility management function include an atrium lobby, Cabaret Theatre, performance spaces and stages, rehearsal rooms, dressing rooms, and storage areas for costumes, scenery and theatre tech, and public amenities. Facility cleaning services will be outsourced. Office Manager Responsibilities of the Office Manager include: Responsibility for smooth operation of executive office Responsibility for front-line communications for the Center Responsibility for clerical and accounting duties including: Keeping of books and balancing of accounts Preparation of financial reports Assisting in the preparation of the annual budget Issuing invoices and purchase orders Don Hirsch Design Studio, LLC January 2019 Page 21 Making bank deposits Paying bills Meeting payroll Making tax and benefit payments Providing staff support for fundraising efforts Keeping records of the corporation Preparing small and large mailings Supervising volunteer office staff Undertake any other duties as may be reasonably required. Box Office Manager/Volunteer Coordinator: Responsibilities of the Box Office Manager/Volunteer Coordinator include: Responsibility for the sale of computerized and hard stock tickets Maintain regular operational hours when tickets can be purchased to all productions Organize and supervise volunteer box office staff Manage ticket sales and record keeping for outside organizations Maintain order in the box office and ticketing areas Maintain the volunteer database Organize usher recruitment efforts Evaluate and maintain efficient usher levels for shows Volunteers The City Center for the Arts will rely on the work of an organized group of volunteers providing trained enthusiastic talent for a wide variety of activities. The volunteers play a leading role in a continuing list of objectives that enhance and facilitate the development and operation of the Center. Volunteers will serve as ushers, ticket takers, and support for special events. They will also support some day-to-day operations. Interns The City Center for the Arts can develop relationships with regional high schools and area colleges for the development of internship opportunities at the theatre. Students will work with professional theatre personnel in the areas of finance, graphic design, hospitality, marketing, management, and technical theatre as part of service learning initiatives. [See Market Analysis – Presenting: Flexible pathways to secondary school completion [the Flexible Pathways bill; S.130/Act77 2013] Ownership & Operation The ownership and operation of the South Burlington City Center for the Arts remain unclear at this time. Nation- wide community and performing arts centers utilize a variety of ownership and operating models for the successful operation of these centers. These models include: • City owned/City operated • Non-profit owned/Non-profit operated • City owned/Non-profit operated • City owned/Commercial lease – national promoter • City owned/Commercial lease – local promoter Don Hirsch Design Studio, LLC January 2019 Page 22 A City owned venue is, as one might imagine, owned by the City, either because the venue is in an existing city property or because the municipality has funded a new purpose-built structure. Non-profit ownership would indicate a 501(c) 3 organization was given title to an existing or new structure. In either case the owner would formulate an agreement to establish the rights and obligations of the operating partner. Funding To finance the construction of the South Burlington City Center for the Arts both earned and contributed income are likely to be needed. A funding strategy for the construction of the SBCCA will include: federal and state funding programs, national and regional foundation support, and philanthropic individuals through donations, named giving, and title sponsorship opportunities. Government grants can be a source of support for municipally-based capital improvement projects such as the proposed South Burlington City Center for the Arts. Community Development Block Grants and USDA: Rural Development provide grants and loans in areas such as accessibility and public facilities. Additional sources may be available if specific criteria are met. The creation of after school programs, for example, could leverage funds through the Department of Education and programs serving the elderly could influence the Department of Health and Human Services participation. As the project scope becomes finalized, a more thorough review of potential government sources would be necessary. Leading private foundations that have a history of funding projects similar to the South Burlington City Center for the Arts include: the Gates Family Foundation, the Kresge Foundation, and the McKnight Foundation. Further research and personal contacts should reveal additional private foundations that might consider making a gift to the project. As the fund development process becomes more formalized these opportunities will surface. Some foundations have restrictions on funding that may limit eligibility and others may not accept unsolicited proposals. Tax Increment Financing (TIF) is also an opportunity to direct resources to help fund the development of a facility. Monies generated from TIF districts can be used to support arts related economic development in communities. The City of South Burlington is currently considering TIF as a mechanism to fund the project and others. Philanthropic individuals often play a critical role in fund development activities for capital projects such as the SBCCA. A philanthropic gift can have enduring impact and may be recognized through named giving opportunities. Typically, a named giving opportunity will involve a financial contribution recognizing a family member or friend with the dedication of an item or area of the performing arts center bearing the special person’s name. Endowed gifts are especially important to projects such as a performing arts center, as they provide support in perpetuity and help ensure financial stability. A title sponsor provides a major gift to the project in exchange for the exclusive right to have the sponsor’s name appear prominently on the facility. The sponsor is usually a business or corporation but might also be a well known local personality, or any other entity that has the ability to contract for sponsorship rights. Title sponsorship is typically the most prestigious gifting recognition and requires the most significant investment in the project. Don Hirsch Design Studio, LLC January 2019 Page 23 Operating Pro Forma South Burlington City Center for the Arts INCOME Year 1 Year 3 Year 5 Operating Presenting Series $ 105,500 $ 144,000 $ 162,000 Rental Black Box Theatre $ 12,500 $ 19,250 $ 27,000 Main Stage Theatre $ 125,000 $ 145,000 $ 225,000 Cabaret Theatre $ 18,000 $ 26,250 $ 40,000 Dance Studios $ 54,000 $ 57,000 $ 60,000 Rehearsal Studio $ 7,500 $ 12,500 $ 17,500 Atrium/Lobby $ 6,000 $ 9,000 $ 12,000 Concession $ 56,000 $ 63,000 $ 70,000 Box Office $ 195,000 $ 220,500 $ 243,000 Total Operating Income $ 579,000 $ 696,500 $856,500 Other Income Contributions $ 10,000 $ 12,500 $ 15,000 Memberships $ 25,000 $ 27,500 $ 30,000 Presenting Sponsorships $ 50,000 $ 60,000 $ 70,000 Grants $ 10,000 $ 10,000 $ 10,000 Playbill $ 15,000 $ 17,500 $ 17,500 Merchandise $ 1,500 $ 2,000 $ 2,000 Total Other Income $ 111,500 $ 129,500 $ 144,500 Total Income $ 690,500 $ 826,000 $ 1,001,400 EXPENSES Operating Presenting Series $ 82,500 $ 97,500 $ 110,000 Salaries and Wages $ 295,000 $ 324,500 $ 356,950 Payroll Taxes $ 41,300 $ 45,400 $ 50,000 Unemployment. $ 2,950 $ 3,245 $ 3,570 Box Office $ 25,000 $ 35,000 $ 45,000 Concession $ 10,000 $ 12,500 $ 15,000 Custodial $ 40,000 $ 55,000 $ 70,000 Playbill $ 5,000 $ 7,500 $ 10,000 Don Hirsch Design Studio, LLC January 2019 Page 24 Utilities Electric $ 15,000 $ 20,000 $ 25,000 HVAC $ 25,000 $ 30,000 $ 35,000 Water/Sewer $ 2,000 $ 4,000 $ 6,000 Equipment $ 5,000 $ 2,500 $ 2,500 Supplies $ 4,500 $ 6,500 $ 7,500 Maintenance $ 7,500 $ 10,000 $ 12,500 Snow Removal $ 3,750 $ 4,750 $ 4,750 Trash Removal $ 3,000 $ 4,000 $ 5,000 Insurance $ 15,000 $ 20,000 $ 25,000 Total Operating Expenses $ 582,500 $ 682,395 $ 783,770 General & Administrative Expenses Facility Marketing $ 25,000 $ 30,000 $ 35,000 Special Events $ 3,500 $ 5,000 $ 6,500 Memberships $ 2,500 $ 3,500 $ 4,500 Credit Card $ 11,990 $ 14,393 $ 17,710 Telephone $ 3,500 $ 5,000 $ 5,000 Printing $ 3,000 $ 4,000 $ 5,000 Postage $ 2,500 $ 3,500 $ 5,000 Office Equipment $ 7,500 $ 5,000 $ 5,000 Maintenance $ 1,500 $ 3,000 $ 3,000 Supplies $ 2,500 $ 3,500 $ 4,500 Total General & Administrative $ 63,490 $ 76,893 $ 91,210 Expenses TOTAL EXPENSES $ 645,990 $ 759,288 $ 874,980 NET INCOME [DEFICIT] $ 44,510 $ 66,712 $ 126,020 ###