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2. CULTURAL
FACILITIES FUNDING FOR GREAT CANADIAN THEATRE COMPANY FINANCEMENT POUR L'INFRASTRUCTURE CULTURELLE - GREAT
CANADIAN THEATRE COMPANY |
Committee Recommendation
That Council approve a Cultural Facilities Fund grant in the amount of $175,000 for the Great Canadian Theatre Company (GCTC).
Recommandation DU Comité
Que le Conseil approuve le versement d'une subvention de 175 000 $ du Programme de
financement pour l'infrastructure culturelle à la Great Canadian Theatre
Company (GCTC).
Documentation
1. Deputy City Manager's report, City
Operations dated 4 March 2010 (ACS2010-COS-PRC-0002).
2. Extract of Draft Minutes, 4 March
2010.
Community and Protective Services Committee
Comité des services
communautaires et de protection
and Council / et au
Conseil
Submitted by/Soumis par : Steve
Kanellakos, Deputy City Manager/
Directeur municipal
adjoint, City Operations/Opérations municipales
Contact Person/Personne ressource : Dan Chenier, General Manager
Parks, Recreation and Cultural
Services/Services des parcs, du loisir et de la culture
(613) 580-2424 x24295,
dan.chenier@ottawa.ca
SUBJECT:
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CULTURAL
FACILITIES FUNDING FOR GREAT CANADIAN THEATRE COMPANY |
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OBJET :
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Financement
pour l'infrastructure culturelle - Great Canadian theatre Company |
That the
Community and Protective Services Committee recommend that Council:
1. Approve a Cultural Facilities Fund grant in the amount of $175,000 for the Great Canadian Theatre Company (GCTC).
Que le Comité des services
communautaires et de protection recommande au Conseil :
1. D'approuver
le versement d'une subvention de 175 000 $ du Programme de financement pour
l'infrastructure culturelle à la Great Canadian Theatre Company (GCTC).
On August 25, 2004, City Council approved a Cultural
Facilities Fund capital grant (ACS2004-CPS-CSCF-0020) for the Great Canadian
Theatre Company in the amount of $1.3 million for the construction of the
Irving Greenberg Theatre Centre.
At the time, $1.3 million represented 25% of the
estimated theatre construction and specialized equipment costs that were
eligible to be funded by the City through its Cultural Facilities Fund
policy.
The funds were approved to be released upon
confirmation of cultural capital funding from senior government levels and a
final development agreement between Windmill Developments, GCTC and the City of
Ottawa.
All conditions were met, a legal agreement between the
City and GCTC was signed on September 22, 2006, and the municipal contribution
of $1.3 million was released. The launch
of the new Irving Greenberg Theatre Centre in September 2007 was a great
success and the facility has since provided significant benefits to the
community.
In 2004, $1.3 million represented 25% of the projected cost for the Irving Greenberg Theatre Centre. The 3-year time lapse from approval to building completion saw construction costs rise, so that the City's capital contribution provided only 11% of the actual final capital cost. An adjustment to the municipal contribution is warranted to complement other provincial and federal funding.
The final cost of the Irving Greenberg Theatre Centre capital project was $11.7 million. $10.3 million was raised by GCTC from the following sources:
1. $3 million from the Government of Canada;
2. $2.6 million from the Province of Ontario;
3. $2 million in naming rights from the Greenberg family, an individual donor;
4. $1.3 million from the City of Ottawa;
5. $795,000 in capital campaign donations;
6. $415,000 from the sale of GCTC's previous building at 910 Gladstone Avenue; and
7. $277,000 in ticket surcharges.
The Cultural Facilities Fund was designed to improve and develop cultural facilities and venues in Ottawa by providing matching grants to eligible cultural organizations for facility projects, fixed equipment or capital feasibility studies. Not-for-profit cultural organizations are eligible to apply to the Fund for 25% of construction and specialized equipment expenses.
GCTC currently has a $1.6 million loan from Scotiabank which was assumed in 2007 to cover the shortfall in the capital campaign. GCTC will have paid $294,652 in interest and principal payments as of the end of this fiscal year (June 30, 2010) and will be in a negative cash position as of March 2010. An additional grant in the amount of $175,000 would assist in alleviating the impacts of the debt servicing costs on the operations of this non-profit organization and registered charity and would raise the City's contribution to $1,474,000 or 12.6% of the total capital cost.
GCTC's current goal is to raise $1.6 million. The economic times still prove to be challenging for raising large sums of money. The organization is working on its next effort to complete the campaign and retire the debt. With the services and guidance of a fundraising consultant (experienced in capital campaigns) provided in kind to GCTC, the organization will embark on Phase III to raise the $1.6 million in early 2010.
GCTC continues to actively pursue outstanding pledges and has found operating efficiencies of $100,000 per year including staff reductions through attrition.
Approval of $175,000 would assist GCTC with some short-term relief from debt-servicing costs, while the organization continues to develop and implement longer-term solutions. Cultural Facilities Funding over $50,000 requires City Council approval.
There are no specific rural implications associated with this report.
Staff consulted with Arts, Heritage and Culture Advisory Committee on February 16, 2010. Consultation with the Great Canadian Theatre Company is ongoing.
I fully support the provision of additional facilities funding to the Irving Greenberg Theatre Centre (Great Canadian Theatre Company). This facility and the programs and performances it offers have helped to reanimate one of Ottawa’s most significant main streets. Its prominence has established it as a cornerstone within a community where the arts are imbedded in the day to day lives of the residents.
This facility exemplifies the smart growth and urban living principles of live, work and play.
Providing this funding will help this robust cultural facility thrive in the community while continuing to provide cultural programs and entertainment to local residents as well as the entire city.
The requested grant for the centre is well short of the actual grant allocation available.
Cultural Facilities Fund Terms and Conditions Agreement with the Great Canadian Theatre Company will be amemded to reflect this grant, if this funding is approved.
This project is linked to Priority E : Sustainable,
Healthy and Active City
Objective 7: Ensure that cultural and recreational
programs are offered across a range of levels of activity such that every
resident, and in particular every child, has a chance to participate.
Objective 11: Operationalize the Ottawa 2020 Arts and Heritage Plan (The Irving Greenberg Theatre Centre is identified as one of the top five performing arts facility priorities)
No funds have been provided in the 2010 budget to fund this request. Should Committee and Council approve the report recommendations, it is recommended that the $175,000 funding request be funded from the Provision for One-Time and Unforeseen expenses (Contingency account). If the report recommendation is approved, the remaining balance in the 2010 provision would be $1.5 million.
The Cultural Services Branch of the Parks, Recreation and Culture Department, in collaboration with Legal and Financal Services, will implement City Council direction.
CULTURAL FACILITIES FUNDING FOR GREAT CANADIAN THEATRE COMPANY
FINANCEMENT
POUR L'INFRASTRUCTURE CULTURELLE - GREAT CANADIAN THEATRE COMPANY
ACS2010-COS-PRC-0002 KITCHISSIPPI (15)
Steve Kanellakos, Deputy City Manager, City Operations, stated that the item has come forward at the request of the Great Canadian Theatre Company (GCTC). The report documents the funding of GCTC and funding sources. He stated that GCTC has an outstanding loan and their issue is the ability to do the fundraising in these economic times and the recommendation from staff is a one time $175,000 funding would be to cover their interest costs against the loan to give them the relief to be able to mount a fundraising campaign to tackle their loan.
The Committee heard from the following delegation:
Peter Doody, Chair of the GCTC Board, Bruce Nicol, Board member and Nancy Oakley, General Manager gave a brief synopsis of their plight and rationale for the request of the $175,000. Mr. Doody stated that they did not raise all the funds for their new $11.7 million theatre that they moved into in 2007 and the result is that they have a $1.6 million loan that they have to pay off. The $11,000 monthly payments cannot be completely funded by the operating budget at this time and they are looking for some breathing room until they mount a fundraising campaign. Many theatre companies across the country are funded 1/3 government funded, 1/3 philanthropy and corporate funding and 1/3 ticket sales. The recession has made things worse with corporate sponsorship down and ticket sales less as well. They have reduced costs and reduced debt. Mr. Nichol stated that he is new to the Board but feels that the strategic plan for GCTC is sound and they have made some tough decisions but the right ones.
Councillor Leadman inquired how much the City gives to GCTC presently for operating. Ms. Oakley stated that the City gives an annual grant of $339,000 as part of a 3 year program and this is the final year. They will be reapplying for the next 3 year period soon. GCTC has been receiving grants from the City since the late 1980’s.
Councillor Holmes asked staff how much was being given to the east end theatre company. Debbie Hill, Manager, Cultural and Heritage Services responded by saying that the Shenkman Centre receives approximately $3.1 million per year. Councillor Holmes asked why such a large discrepancy. Is it because the east end centre belongs to the City? Debbie Hill commented that they are aiming and striving to improve their funding to the community partners. The Cultural Facilities Fund was established to provide 25% matching funds to cultural organizations. Councillor Holmes referred GCTC as the poor cousin and wonders why they don’t ask for more funding.
Councillor Holmes asked how many people go to the GCTC shows annually. Nancy Oakley responded by saying approximately 30,000 people attend annually. She hopes that in the very near future they will be launching a campaign for more funds and if this recommendation passes today they will ask their patrons to contact councillors before the March 24th Council date. She does feel that they have the support of the community just by the fact that they raised 92% of the present building cost of which $800,000 came from individual donors.
Councillor Holmes asked why there was so little support from the City for this theatre. Steve Kanellakos said there was a contingency fund of $2.8 million that Council approved with a list of one time items of which the GCTC was one. There is presently about $1.675 million left in this fund and with this grant would decrease the fund to $1.5 million. Nancy Oakley stated that the figure was arrived at by the GCTC based on the interest rates and principle. This had started about one year ago with Mr. Sutcliffe seeing the mayor and originally trying to pay off or refinance the entire balance owing. Councillor Holmes stated that it appeared that over the course of the year we had gone from a possible grant of $1.6 million to $175,000 which is sad. She noted that it appeared to their advantage to become a City owned facility even though they are more cost effective. She is very disappointed with the City funding. She believes that GCTC should be more aggressive.
Chair Deans thanked the delegation and hopes their professional fundraiser does a great job in assisting them in raising the necessary funds.
Councillor Cullen stated that he was going to support the recommendation. He cautions that when this does come before Council some may challenge it coming so close after budget time. This is a facility where the City contributed $1.3 million in the construction of the new building and believes in its mandate. It is of a larger benefit to the community. It will be up to the Committee members to push this at Council and for the patrons to urge Councillors to vote for it.
Councillor Chiarelli stated that he would support this recommendation but cautions that the contingency fund is not a rainy day fund.
Councillor Leadman read off the points that were the basis for funding of the Shenkman Centre such as raising of property values, keeps talent in Ottawa, revitalizes the area, etc. and she is sure the same can be said for the GCTC. She commented that the $175,000 is really not enough. It is a key facility in the west end and as previously stated, GCTC really is the poor cousin. She urged the Committee to support this recommendation now and at Council.
That the Community and Protective Services Committee recommend that
Council approve a Cultural Facilities Fund grant in the amount of $175,000 for
the Great Canadian Theatre Company (GCTC).
CARRIED