Varscona Theatre – Capital Funding

Varscona Theatre – Capital Funding

Recommendation:
That the March 13, 2009, Community Services Department report 2009CSR006 be received for information.

Report Summary

This report provides information regarding capital funding options towards the Varscona Theatre AllianceSociety’s re-development project.

Previous Council/Committee Action

At the December 2008 City Council Budget meeting, the following motion was passed:

That Administration provide a report to Community Services Committee prior to the setting of the 2009 mill rate, outlining options for possible capital funding of Varscona Theatre.

Report

Background

  • The Varscona Theatre (formerly the Chinook Theatre) is located in the theatre district of Old Strathcona. The building was erected in the late1950s as a fire hall and was converted into a theatre in 1982.
  • The City of Edmonton is the land and building owner of the Varscona Theatre. The Varscona Theatre Alliance Society has operated and managed theVarscona Theatre under a Lease Agreement with the City of Edmonton since 1999.
  • The current seven year lease (2006-2012) between the City and the Varscona Theatre Alliance Society states the tenant is responsible for theupkeep, maintenance and capital improvements to the building.
  • The operating model of the Varscona Theatre is similar to many operating models wherebylocal community groups operate a facility on City of Edmonton land.

Re-development Project

  • The Varscona Theatre Alliance Society’s proposed re-development plan includes:

a)retrofitting the interior of the building;

b)increasing the lobby space by 50% with the additionof a second storey for a rehearsal hall and administration area;

c)retrofits to the heating/cooling and electrical/mechanical systems; and

d)installing green technology throughout the building.

  • The Varscona Theatre Alliance Society is in the process of completing a detailed business case which will outline the need for the proposed facility upgrades as well as identify the funding sources required from a capital and operating perspective.

Funding Options

  • The funding request of the City is $1million in 2010 and $1million in 2011.
  • Consideration through the 2009 supplementary capital budget adjustment process could be a possible approach to this request recognizing the current financial constraints.

Related Information

  • The Varscona Alliance Society is a local non-profit volunteer theatre group which is governed by a Volunteer Co-op Board. The Board represents the five different user groups that occupy the theatre: Shadow Theatre,Teatro La Quindicino,Rapid Fire Theatre Sports,Die-Nasty, and Oh Susannah.
  • The Varscona Theatre Alliance Society is one of nine Edmonton based non-profit theatre groups specifically leasing a theatre building or performing arts facility from the City of Edmonton.
  • The Edmonton Arts Council administers the Community Investment Program Arts and Museum Building Operating Grant. In 2008, the Varscona Theatre Alliance Society was awarded funding from this grant program.
  • This newly created grant in 2008, allows local Arts and Cultural organizations to request up to 25% of their total annual expenses which are directly attributed to facility operations.
  • The intent of the Community Investment Program Arts and Museum Building Operating Grant is to provide a sustainable level of operating funding.

Focus Area

Social and cultural: building a vibrant community through an effective partnership with key recreation community organizations.

Budget/Financial Implications

Capital funding is currently unavailable for this project. In addition, Should Council support the City is facing significant challenges with operating revenues in 2009 and potentially in 2010. Historically community sponsored projects such as this have been considered by Council on a case by case basis. A Partnership Policy is currently under development by the Community Services Department and will come forward later in 2009. It is suggested that this request be dealt with after the Policy is considered by City Council.

Should City Council wish to support have thise capital funding request proceed more quickly , then Administration should be directed to consider this against other project priorities as part of the 2009-2011 Supplementary Capital Budget Adjustment Report planned for June, 2009.and identify the preferred funding option, approved budget processes will apply

Others Reviewing this Report

  • L.Rosen, General Manager, Asset Management Public Works Department
  • C.Warnock, Chief Financial Officer, Finance and Treasury

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