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the United States require an annual subsidy , which is 90% locally provided, of 45% to 55% of total operating and amortization costs. These funds are invariably provided by a public /private partnership. South Bend simply cannot afford the financial burden which would be the result of restoration /rehabilitation of all the potential performance facilities in the downtown area. Bearing in mind our goal "to create a liveliness, actuality, and excitement in downtown South Bend," we look toward a tightening up of the size and scope of our understanding of what we mean by "entertainment district." Concrete examples of this "tightening" are the elimination of the Colfax Theatre from development consideration and the current development of the Avon Theatre as an artsfilm and second run movie house, taking it out of the performing arts catagory, yet leaving it as a part of the overall picture. The Avon development points up a major concern which carries equal, if not more importance than the number of "entertainment seats" available to us. We want to be certain that we are providing a suitable venue for each of the "lively arts" with particular attention given to the provision of theatre spaces and equipment, seating and audience comfort factors, to meet the needs of the existing local arts enterprise; and, to encourage its further development and health. We look forward to the enhancement of the facilities to be retained and redeveloped. Their management and program use, their physical appearance and audience pleasing factors are of prime concern. We want to create within the dense develpment area of downtown South Bend a "entertainment district" containing a variety of "houses" which will provide the potential audience and the potential producing companies a range of choices in size, ambiance, and technical or staging capability which will be exciting, challenging, and of significant stature to attract regional, if not national attention. The centerpiece or major anchor for this development must be the Morris Civic Auditorium and the Palais Royale. The historic nature of this facility (we regard them as one resource), its size, current program level, future program potential, and its potential for a high - glamour restoration, demand this. -6-