Subject:
Title
Application received from the Arts Center Association, Inc., d/b/a Morean Arts Center, for consideration in accordance with the Capital Projects Funding Program Guidelines for Category D Projects.
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Recommended Action:
Recommended Action
Approval for the application from the Arts Center Association, Inc., d/b/a Morean Arts Center (Arts Center) to be evaluated in the Fiscal Year (FY) 2024 Capital Projects Funding Program (CPFP) funding cycle, in accordance with CPFP Guidelines for Category D Projects.
• The Arts Center submitted a CPFP application requesting $15,170,600.00 to expand the current facility and construct a new five-story building and parking structure on two contiguous vacant lots. The total project cost is $30,241,200.00.
• Over the next ten years, this project is projected to bring the following economic impact to the County over and above current base operations:
o 29,000 incremental room nights
o $75,200,000.00 in economic impact
o $574,000.00.00 in Tourist Development Taxes
• Project requests in excess of $10 million must first receive approval from the Board of County Commissioners prior to entering the CPFP funding cycle for evaluation.
• CPFP Guidelines require the Arts Center to provide 1:1 matching funds, which include:
o $9,400,000.00 from bank loans
o $3,270,000.00 fair market value of the two vacant lots
o $2,500,600.00 cash reserves on hand
• Project completion is estimated at the end of FY 2027.
• This application, by itself, has no fiscal impact.
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Strategic Plan:
Foster Continual Economic Growth and Vitality
4.6 Support a vibrant community with recreation, arts, and culture to attract residents and visitors
Summary:
Summary
The Arts Center is seeking $15,170,600 in CPFP funding to support an expansion of the current facility to include a new five-story building and parking garage. The total project cost is $30,341,200 and involves integration of the Chihuly Collection (currently located across Central Avenue), increased space for arts exhibition galleries, educational classrooms, a children’s learning center, larger entrance area that will accommodate an assembly area for school tours, retail storefront and café, larger gift shop area, and a parking garage. The Arts Center is requesting 50% of the total cost for this project in TDT funds.
Application requirements include an economic impact study, detailed project description, budget, project timeline, financing plan and a marketing and benefits plan. With Board approval, the Arts Center’s application will be evaluated along with the other seven applications received in the current CPFP funding cycle and brought forward with a funding recommendation from the Tourist Development Council.
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Background Information:
The Arts Center is expanding their current facilities to include a new five-story building and parking garage. The total cost of this project is $30,341,200. The Arts Center is requesting $15,170,600, or 50% in TDT funding through the CPFP to offset project costs.
In accordance with CPFP Guidelines, projects requesting more than $10 million shall first be presented to the Board for conceptual approval prior to the applicant being permitted to participate in the funding cycle application process.
With Board approval, the Arts Center’s application will be reviewed, evaluated and scored by staff along with seven other applications received in the FY 2024 CPFP funding cycle. Following the evaluation process, staff will present funding recommendations to the TDC for discussion. The Board will have the opportunity to consider the TDC’s funding recommendations and final negotiated CPFP agreements at future meetings.
Over the next ten years the Arts Center is projected to bring the following economic impact to the County over and above current base operations:
o 29,000 incremental room nights
o $75,200,000 in economic impact
o $574,000 in Tourist Development Taxes
In addition to the economic impact above, the Arts Center has proposed marketing deliverables which if approved, will be reviewed and negotiated by staff for the highest return on investment.
CPFP Guidelines require Category D applicants such as the Arts Center to provide 1:1 matching funds. In their application, the Arts Center met this criteria with the following:
o $9,400.000 from bank loans
o $3,270,000 fair market value of the two vacant lots
o $2,500,600 cash reserves on hand
Fiscal Impact:
N/A
Funding to support the Capital Project Funding Program is provided through the Tourist Development Tax Fund.
Staff Member Responsible:
Brian Lowack, Director, Convention and Visitors Bureau
Partners:
Tourist Development Council
Attachments:
Capital Projects Funding Program
Application
Guidelines