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Home My WebLink AboutSM 09-06-89September , 1989 10:00 a.m. Presiding fficer . Mr. F. Jay Nimtz President 1. Roll 1 M Present: Menbers Absent: Legal i Dounsel: News Others . 21 k6g, I F.11 %M(," V.11 M Q I alai U 1 Palais Royale Ballroom Corner of Colfax and Michigan St. South Bend, Indiana 46601 Mr. F. Jay Nimtz, President Ms. Paula N. Auburn, Vice President Mr. Roman J. Piasecki, Secretary Mr. Sandy Combs, Assistant Secretary Mr. Michael Donoho Ms. Carolyn Pfotenhauer Staff: Mrs. Ann Kolata, Director Mr. Jon Hunt, Executive Director Mr. David Roos, Senior Econ. Dev. Specialist Mrs. Cheryl Phipps, Office Manager Mr. K.C. Pocius, Econ. Dev. Specialist Ms. Cleo Hickey, Econ. Dev. Specialist Mr. Larry Koepfle, Econ. Dev. Specialist Ms. Hedy Robinson, Econ. Dev. Specialist Mr. James Wensits, South Bend Tribune Mr. Mark Peterson, Channel 16 Mr. Thom Howell, U -93 Mayor Joseph E. Kernan Mr. Jack Reed, Assistant to the Mayor Mr. James Caldwell, Assistant to the Mayor Mr. Dale Balsbaugh, Director, Morris Civic Aud. Mr. John Leszczynski, Director, Dept. of Engineering Ms. Katherine Hunphreys, City Controller Mr. Brian Hedman, Director, Century Center Mr. John Leisenring, Deputy Controller Mr. Carter Wolf, Center City Associates Ms. Becky Neiswander, Center City Associates Mr. Steve Luecke, South Bend Common Council Mr. Sean Coleman, South Bend Common Council Mr. Joseph Wroblewski, Redevelopment Authority Mr. Stephen Queicr, Director, Chamber of Commerce Ms. Becky Bonham, Chamber of Conmierce Ms. Kathleen Mullins, Northern Indiana Historical Society Ms. Elaine Fountain -1- South Bend I Redevelopment. Commission Special M ting - September 6, 1989 1. Others Ms. Linda Bancroft Ms. JOAnn Meehan MS. Karen Schirmer Ms. Therese Fink Mr. James Wiley Mr. E. W. Reznick Mr. Richard Hill Ms. Charlotte Ford Mr. Tim Hartzer Mr. Robert Yeggy Mr. George Elrod Mr. William Gates Mr. Van Gates Mr. Dennis Schwartz Ms. Carmi Murphy Ms. carol Rosenberg Mr. Tom Bergin Ms. Mary Parks Mr. James A. Cook Ms. Barbara Magle Mr. Philip Miller Ms. Peggy Trader Ms. Lolita Anastasio Mr. Mark Donoho Mr. Donald A. O'Blevis Ms. Melanie Como Mr. Donald Dake Ms. Karen Kiemnec Ms. Janice Langland Mr. Robert Hunt Mr. Thomas Brubaker Mr. Robert Sones Mr. Mark Pilkinton Mr. Judd Leighton Mr. Robert O. Cook Mr. James Hart Mr. Rick Pitts Mr. Milton Ries Mr. Bruce Gorelick Mr. Mark McDonnell Mr. James Geisel Ms. Kim Teska Mr. Ray Larson Mr. Dennis Andres Ms. Karen Harmon Mr. Bazil O'Hagan Era South Bend I Redevelopment Commission Special Meoting - September 6, 1989 1. 2. Others; Mr. Ni3rrtz expressed his hope that this would be a memorable day in the history of South Bend. He r ed having his own Senior Prom -bi the ballroom of the Palais Royale He was pleased to have guests present this morning to hear the report of what the City desires to do with this building and the other cultural places in downtioOm South Bend. Mr. Njixtz introduced Mayor Kernan, who st, ited that we are here to unveil a vision for this building, the Morris Civic Auditorium, the State eatre and possibly the Avon Theatre. Many groups have made stqgestions of what they would like to see happen in South Bend. Last year the Redevelopment Commission hired Daniel Pierotti of Daniel Pierotti and Associates of Madison, Wisconsin to assess the silmation. He has been involy in $89,000,000 worth of constniction over the last ten years across the United States includes New Brunswick, N.J., Winston-Salem, N.C., El Paso, Tex., and Milwaukee Wis., etc. He has put together a vision and a plan Thftich he will unveil to the public this morning. It is a realistic assessment of what we have, t we could have, what it will ccst, and what the benefits would . Ms. Patt Klein Mr. John Farron Ms. Mary Lou Leighton Mr. David Vaughn Mr. Jan Jenkins Mr. Daniel Pierotti -3- South Bend Redevelopment Commission Special Meoting - September 6, 1989 2. Mayor ernan then introduced Dan Pierot i. Mr. Pi tti stated that his charge was to determine the programmatic, financial, and pkWsic,,Ll considerations necessary to a eve a fully operational, econ cally viable Morris Civic Audito ium and Palais Royale, aril to su lest best use options for the S to Theatre. The Avon Theatre was thrown in at the last minute He has looked at the facilities physically, he has looked at them from the point of view of their programs: what's going on in them now and what has gone ox i in them in the past, anf what could go on in the future. He's looked at the kind of mnagepent structure that would be requind, and at the financial considerations, both from the point of view of a pro forma operational budget and also from the point of view of what it would cost to reconstruct and restore the buildinqs. Mr. Pi tti then sunmaariezed his report a copy of which is attach to these minutes. Following the presentation of the report Mr. Piasecki made a motion seconded by Ms. Auburn and unan' usly carried, that the Conmtis ion receive the report of Daniel Pierotti on the feasibility of an textairment district in South and referred the report to the Istaff for further I'J : INV • :H DI - 01 -• -� • 1 1 •- -4- South Bend Special Mee 3. Other Mr. N' Presen A, to Mr. Pi meet' 4. Adio___ Redevelopment Commission ting - September 6, 1989 z invited all people to tour the Morric Civic um and State 'Theatre with otti after the Commission adjourns. There being no further business to come before the Commission, Ms. Auburn made a motion that the meetirg be adjourned. Mr. Plasecki seconded the motion and the tin" was adjourned at 10:05 a.m. Paula ] T. Auburn, Vice President INVITATION TO TOUR MORRIS CIVIC AUDITORIUM AND STATE THEATRE M O MUly,1200N -5- Ann L Kolata, Director A FEASIBILITY STUDY AN ENTERTAINMENT DISTRICT IN SOUTH BEND, INDIANA RESTORATION / REHABILITATION OF THE MORRIS CIVIC AUDITORIUM THE PALAIS ROYALE BALLROOM THE STATE THEATRE THE AVON THEATRE REPORT TO: BY: THE SOUTH BEND REDEVELOPMENT COMMISSION F. JAY NIMTZ, PRESIDENT THE DEPARTMENT OF ECONOMIC DEVELOPMENT JON R. HUNT, EXECUTIVE DIRECTOR ANN E. KOLATA, DEPUTY EXECUTIVE DIRECTOR CITY OF SOUTH BEND SOUTH BEND, INDIANA DANIEL L. PIEROTTI & COMPANY MADISON, WISCONSIN JULY 8,1989 (REVISED AUGUST 28,1989) Daniel L. Pierotti & 2 East Mifflin Street Suite 40 Madison, WI 53703 608 / 251-7698 TO: epartment of Economic Development on R. Hunt, Executive Director nn E. Kolata, Deputy Executive Director ity of South Bend outh Bend, Indiana To work for the furtherance of the arts in your community is to work for your community. We can no longer afford to regard the arts as a largley private affair. The arts and life in our communities have become of one piece The health of the community is directly impacted by the health of the artistic enterprise in the community. We arrange ourselves in communities in order to survive; we stay in that arrangement to live a good life. he arts are a part of that goodness. It hw been a pleasure to work on this project. The staff and Board members of the Department of Economic Development, The Morris Civic Audit rium, The Century Center and Center City Associates have been very cooperative and helpful. The representatives of the South Bend area arts nterprise and the various other civic, business and educational instit tions have been of great assistance. We st bmit this report and the accompanying recommendations with the hope I hat the South Bend Cultural District will become a reality and that the r toration /rehabilitation work will proceed forthwith. A performing arts rogram of quality and economic soundness will flourish for many years to come in downtown South Bend. Respectfully submitted Danie L. Pierotti Danie L. Pierotti & Company July 1 '1989 TABLE OF CONTENTS I. RECOMMBNDATIONS P.P. 1 -4 (blue) II. BUSINESS PLAN p.p. 5 -29 A. Introductory Discussion p.p. 5 -7 B. Market Profiles p.p. 8 -10 C. Program Plan P.P. 11 -19 1. Introductory Discussion p.p. 11 -14 2. Morris Civic Auditorium p.p. 14 -16 3. The Palais Royale p.p. 16 -17 4. The State Theatre p.p. 17 -19 a. Concert Hall p. 18 b. Playhouse P. 19 D. Management Plan p.p. 20 -30 1. Introductory Discussion p. 20 2. The Board of Directors p.p. 20 -21 3. The Executive Director p.p. 21 -22 4. Staff Configuration p.p. 23 -24 5. Operations Proforma p.p. 25 -29 (green) a. Income p. 26 b. Expense p. 27 6. Friends of the SBED p. 28 7. The Endowment Fund p.p. 28 -29 III. RESTORATION /REHABILITATION PLAN p.p. 30 -33 A. General Principles p. 30 B. Morris Civic Auditorium p.p. 30 -31 C. The Palais Royale p. 31 D. State Theatre p.p. 31 -32 E. Construction Cost Estimates p.p. 33 (yellow) IV. THE AVON THEATRE p.p. 34 -37 A. Review and Recommendations p. 34 B. Discussion p. 35 C. Operations Proforma p. 36 D. Construction Cost Estimates p. 37 The auditorium (house) and lobby should undergo decorative restoration. The seating in the house should undergo rehabilitation and the house should be re- seated. - B. Palais Royale. We recommend that the ballroom undergo decorative restoration; ceiling, walls, floors. We recommend that a new lighting system be installed in keeping with the decorative restoration. We recommend that a full service commercial kitchen be installed to service the ballroom and the Morris Civic Auditorium. Public comfort features, a portable stage (with access to lighting and sound reproduction) and adequate storage areas should be provided. Both public and private (staff) linkages to the Morris Civic Auditorium should be provided. - 1 - C } a _ rc � „�4�,'�a � ;�'...'',t �_�,_� a."'`.�,. ",° . •i-�, ,w. � z;..{ c ,.�.- aas...� �a , ,�°�v - � ... .�. .. 1;.�,�a. >„ <� �i s,�.._ a�..�...,. ..., . �£.�..'�4Y �.:�nK.... , r. _� . . primarily for dramatic production with subsidiary recital, lecture and film use possible. The Playhouse should be a non - proscenuim thrust, partial thrust or arena stage with flexibility in the seating /stage spatial relationships. b. Public comfort space, stair and elevator access, lobby and box office spaces for the Playhouse should be configured in such a way as to provide compatible use with the Concert Hall. c. Adequate back stage, dressing rooms, storage and scene shop areas for the Playhouse should be provided. -2- 2. The Board of Directors of the South Bend Entertainment District (SBED) shall be composed of. members representative of the City of South Bend Department of Development , The Century Center, Center City Associates, the local arts organizations and downtown business and real estate owners. -3- i � 3. We recommend the following staff, configurations for the operation of . , SBED: Executive Manager Administrative Assistant /Finance Officer clerical (2) Box Office Manager Assistant Box Office Manager House Manager Assistant House Manager - Direetor. of Promotion and Public Relations Director of Development Non- Performance Use Manager Volunteer Coordinator Maintenance 1 Maintenance 2 - Maintenance 3 - .Technical Director Assistant Technical Director 4. We recommend a matrix management model in order to achieve a high degree of flexibility in staff and volunteer assignments. 5. We recommend the establishment of a highly visible Friends of the Entertainment District (Friends of the Arts) volunteer membership organization. 3. We recommend the establishment of a permanent endowment fund to ensure funding stability for on -going program and maintenance of the SBED. -4- A. IL BUSnMS PLAN Introductory Discussion The contract between the Department of Redevelopment, City of South Bend, Indiana, and Daniel L. Pierotti & Company states: "The purpose of these studies is to determine the programmatic, management, financial, and physical considerations necessary to achieve a fully restored /rehabilitated Palais Royale, a rehabilitated and improved Morris Civic Auditorium, and to suggest best use options for a rehabilitated State Theatre building." The ulitmate goal for this work, in the words of Jon R. Hunt, is "to create a liveliness, actuality, and excitement in downtown South Bend - a thriving entertainment district." With this in mind, we note that none of the cultural facilities in South Bend can be studied singularly, but rather, must be looked at as a part of the whole. Consequently, preliminary studies as regards the use of all available facilities in downtown South Bend have been conducted. The first conclusion, hastily drawn, but borne out by studies of the market potential in South Bend, St. Joseph's County and all of Michiana is that there are simply too many "entertainment seats" in South Bend. Additionally, these "entertainment seats" are not always found in easily marketable locations, configurations (size and stage potential) or in easy relationship to other supportive commercial, recreational, parking or residential spaces. ds judgement is made on the basis of national norms for attendance at cultural rents: 1.5% to 3% of the total population in the U.S. is found to be in regular ipport of cultural arts live programming. In the South Bend SMSA, this range ould be from 9,630 - 19,260 persons. In South Bend, there are in excess of 700,000 "entertainment seats" on an annualized basis. This would mean, for temple, that all 19,260 persons would have to attend 90 or more live �rformance events each year, a highly unlikely occurence. second conclusion is more important. The financial burden of rehabilitating and tintaining all of these seats carries even greater impact. The performing arts in - 5 - 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- We cannot consider downtown South Bend in the context of a "entertainment district" without reference to the convention center, Century Center. Here we find a successful convention operation which is growing out of its facility. Specifically, in order to continue to compete in the mid -size facility convention market, the Century Center has a real need for increased exhibit square footage, break out rooms and additional support space. The Century Center statistics show a decline in the theatre use of the Bendix Theatre and the Recital Hall from 1985 -1987. Our review of potential local uses of the two facilities indicates that the Bendix Theatre is the least desirable space available to producing organizations. We strongly urge that serious consideration be given to the conversion of the Bendix Theatre space to exhibit and break out room space. "The State Theatre is too good a building to tear down." This sentiment is expressed by most persons interviewed in South Bend. In our study, we reviewed as an alternate potential use the preservation of the historic facade and the construction of office space or housing behind it. Neither one of these uses can be supported. with any vigor. The on -going office. and residential development projected for downtown South Bend does not raise the need for this additional large space. We are recommending the inclusion in the entertainment district of a restored /rehabilitated State Theatre, creating a unique two theatre venue: A 700- 750 seat Concert Hall, and a 300 -350 seat Playhouse. -7- B. S dith Bend/Michiana Market Profile The performing arts are best marketed when they offer a wide variety of experiences in a wide variety of venues. The "theatre district" concept, as a marketing tool, has long been the driving force for audience development in cities s ch as London, New York, Chicago, Nashville, and even in single facility, multi - t eatre complexes such as the performing arts centers in Winston -Salem or Des Dines. he program variety which is made possible by providing a choice of stage and ouse sizes under a single management and audience development thrust is, arhaps, the best possible performing arts arrangement. To establish this program ariety, we must understand the potential audience, hence a market profile. he market area which we are considering in the development of this profile onsists of those communities within two concentric circles, with South Bend at ie center. These circles are described as having a radius of 25 miles (the primary arket area) and of 40 miles (the secondary market area.) The following tables iow us who is out there to be reached by a market thrust. Clearly, there are efficient numbers in every age and income catagory to support the programming !oposed in this report (See Section II C.) -8- Co— un t Y. St. Joseph's, IN Berrien, MI Cass, MI Elkhart, IN Fulton, IN Kosciusko, IN La Grange, IN Marshall, IN Pulaski, IN Starke, IN La Porte, IN TOTAL Number of Households Population Profile Primary '_Market 238,700 140,000 32,000 81,094 0 2,000 0 16,000 0 1,800 43,200 555,394 Secondary Market 238,700 166,000 49,000 145,900 7,500 65,000 9,000 41,500 2,000 18,000 105,000 847,600 Primary '.Market . • , . � 203,840 Secondary Market . . . . . . . . 313,600 Population by Age Primary !Market: 0 -17 , • • • . . . 153,474 18-49 . • ' • • • • • • . 256,777 50 and over. , ' 145, -143 Secondary Market: 0 -17 , • • 234,220 18 -49. ' • ' ' • ' ' ' • • • 391,873 50 and over, ' • ' ' ' ' • • • • • • . 221,507 - 9 - Per Household Net Effective Buying Income The per household net effective buying income for the entire market in 1987 was $29,400. This is reflective of a very upscale, quality market area. 1987 Annual Retail Sales Primary Market Area . . . . . $3,300,000,000 Secondary Market Area . . . . $4,250,000,000 This market area ranks 77th in the nation and 2nd behind Indianapolis in the State of Indiana. - 10 - ' i= i � � ` �� ,i; - .• �> i 1 � ., c �� I' " � � `El �'I i 1 �� t I I t � . !t j C7 t—i i It ITT 47' FL ), . }� '. iI' . •fit '7 } � I a; .. -.. _tit. : •r ,. ,': ': .L ' - - M� } ��: ,_! .. �:�. (i� �_ elf. •'_ t 1 .�,. - i� ., { l — � ,_ � j.'.,• :r f � Z - i�� E .''l•t�'r -•mac _ + `J� f �� -'o� � j 'i�- " f: •' .j. . =. ii c. ; ; . S � t .• t •t =`` ! . .° ; loo: -- • _ = -,� i � ! 'tom F w ICA rl IV 7 C +0 rn U +a to u1 0. A N O w L+ 4r 0 � ►$ __7~'�� .s_�,K r +}fit .�� i + �� _ ;__� __ � �✓" °: ►V -Z - - -.T`� :�: f r�:;,�:�__ �1.. r it -t. - - C. Pjovam Plan Introductory Discussion The core of any Business Plan is found in answer to the question "what are you going to do .... to sell .... to manufacture,... ?" In the case of the performing arts, the question becomes "what are you going to present in these buildings, on these stages ?" Once this question can be answered, then the physical development of the buildings, the size and make up of the staff to operate the program and the budget proformas can be planned and developed. The physical development of the facilities, the management plan and the recommended staff configuration, all will grow out of and be informed by the Program Plan. We are faced with three concerns in the development of a Program Plan: 1) What performing arts are available to us? 2} What will be the potential market support? 3) What can we reasonably expect our facilities to house by way of programming?- There is a fourth question also which has to do with non - perfcrmance use or programming of the facilities. We wish to design and construct these spaces in such a way as to encourage business, civic, convention and non - traditional use of these spaces. Theoretically, all of the performing arts are available to us. Some uses, however, are quickly dismissed by applying standards of common sense (water ballet, for example.) Others are not so easily dismissed when we apply informed guesses as to what the future might bring in the performing arts world. Precisely because we do not know what the future might bring, we are anxious that we not make recommendations and suggest program plans which will so circumscribe the physical development and management that growth, change and future new programming will be impossible. - 11 - It The Program Plan here suggested hopes to be presently feasible. That is, it is something which can actually be accomplished in South Bend, Indiana in the 1990's, win audience support and community approbation, be artistically acceptable in its own right and be physically and financially manageable. This Program Plan is presented in a growth posture. We are concerned that it be understood that the order and emphasis of our presentation of "potential programs" are not set in concrete, but begin with what is already in place, are subject to the test of time, audience response, negotiated availability and as yet unknown future costs of production. At this point in our discussion, it is good to remind ourselves that the size of a venue plays a role in determining the types of performance activity which we can reasonably expect to afford and house. The number of seats in a house does have direct impact on costs, revenues, sight lines, acoustics, audience comfort, safety and maintenence. The size of the stage, procenium width and height, the orchestra pit, the fly loft and back stage supportive space have a direct effect on the production as well. Brian Arnott, in his A Facility Design Workbook, sets out well the relationship between the number of seats and the types of activity we can reasonably expect. 150 -400 Seats: Repertory Theatre Productions Community Theatre Productions Children's Theatre Local Music Recitals Some Touring Music Recitals Touring Solo Artists Modern Dance Performances (small companies) Films Lectures Meetings -12- 400-850 Seats: Mid -size Symphony Orchestras Chamber Orchestras Community Play Productions Children's Theatre Music Recitals and Concerts (small companies) Modestly Staged Concert Operas Modern Dance Performances (small companies) F ilms Lectures Meetings 900 -1300 Seats: Symphony Orchestras Chamber Orchestras Community Musical Productions Touring Musical Recitals Touring Musical and Play Productions Children's Theatre Modern Dance Performances Ballet (local and touring) Modestly Staged Operas Variety Acts ( popular music, country music) Big Band Concerts Films Lectures Meetings - 13 - 1500 -2500 Seats: Symphony Orchestras Chamber Orchestras Community Musicals Grand Opera Modern Dance Performances Ballet (local and touring) Touring Broadway Shows Variety Acts (popular music, country and western) Light and Soft Rock Concerts Big Band Concerts Films Lectures Meetings (corporate stockholders, etc.) In addition to house capacity (seating), it must be remembered that stage size, proscenium height and width, backstage supportive space, technical equipment, load in /load out facilities, all play a major role in determining production type and size. We must further note that this Program Plan is developed with the life, liveliness and future development of downtown South Bend in mind. The Morris Civic Auditorium In terms of return on the dollar invested, audience response, and operational efficiency, a performance hall of the size of the Morris Civic Auditorium, 2,400 seats, should annually experience an operational optimal minimum of 140 event days. There are many halls in the United States which do not achieve this. They consequently suffer the costs of this inefficiency: larger subsidies are required, staff and volunteer operations become insufficient, and audience loyalty and that magical and best of all marketing devices "let's see what's playing at the Aud this weekend" fails to develop. -14- When more than one theatre or entertainment facility is available, either in the same house or within a definable entertainment district, the optimal minimum for one house can be reduced without a concomitant loss of efficiency or audience response. Even the invested capital can be spread over a wider base. With this in mind, working within an entertainment district concept, we have designed the following program profile for the Morris Civic Auditorium. The Morris Civic Auditorium is currently used 30 -40 times annually. These 30 -40 event days also involve some rehearsal and set -up time. The Broadway Theatre League and the South Bend Symphony produce 27 of these event days. It is upon this base we build and suggest the following program profile: The Broadway Theatre League: The South Bend Symphony: Other locally produced live performances: Civic, corporate, educational use: Convention use, in conjunction with the Century Center: As a Promoter House: As a Presenter House: TOTAL: - 15 - 17 -20 event days 10 -13 event days 4 -6 event days 5 event days 5 -6 event days 20 -30 event days 15 -24 event days 76 -104 EVENT DAYS It must be noted that certain of the above event days use of the Morris Civic Auditorium will also involve use of the Palais Royale Ballroom, Century Center facilities and other stages within the Entertainment District. For example: ' As a pre - performance warm -up space ' As a pre or post - performance social or fund- raising event As an intermission gathering place ' As a luncheon or dinner space in conjunction with a civic or corporate event • As an exhibit space in conjunction with a Century Center use • As a "stage one" in a jazz or blue grass downtown festival s As one site in a multiple site educational program or art fair. 3. The Palais Royale (Ballroom) The ballroom business is coming alive once again in the United States. Ballroom dancing and the use of these elegant spaces for receptions, weddings, luncheons, dances, and fine meeting places is becoming big business. The present retail use of the ground floor of the Palais Royale building should continue. We will not address this use in this report, although these rental incomes do impact upon the over -all budget. A use profile for the Palais Royale Ballroom is suggested as follows: s In conjunction with Morris Civic Auditorium events s Business, organizational and social luncheons s Civic and service organization monthly meetings Dinner dances • Sunday brunch with live music ' High school proms • Weddings and wedding receptions Anniversary parties • Business and corporate stockholders and annual awards meetings s Recitals, musicales, lectures and other ethnic musicals s As exhibit space in conjunction with Century Center use -16- We have arbitrarily chosen a 90 event day calender for Palais Royale Ballroom use in order to inform our budget proforma development. Only actual experience over a period of 3 -5 years will accurately set this use pattern. 4. The State Theatre Key to understanding our recommendations for the restoration /rehabilitation of the State Theatre by creating a two venue house is program. What will take place in the new State Theatre Concert Hall and Playhouse? And how does this production activity support the overall goal of the creation of a Entertainment District - "a liveliness, actuality and excitement in downtown South Bend ?" The Morris Civic Auditorium and Palais Royale restoration will provide the perfect venue for the "grand event." 2,400 seats and a stagehouse worthy of such a theatre will make the larger, glamorous productions possible. Yet, for artistic, economic and audience comfort reasons, the Morris Civic Auditorium cannot foot the entire bill of entertainment needs for a market such as presented to us with South Bend at its center. Were we to build a new performing arts center - complete in its concept and designs - we would be building a four theatre house. A large grand hall (the Morris Civic Auditorium), an accoustically and artistically fine concert hall of 700+ seats (the State Theatre Concert Hall), a playhouse with a non- traditional stage, seating 300 -350 (the State Theatre Playhouse) and a 500- 600 seat art, classic and second run movie house (the Avon Theatre.) The restoration /rehabilitation of the State Theatre here proposed provides the component program potential to meet the demand of both artist and audience alike. It will provide the Entertainment District Management, the local arts enterprise and civic and commercial programmers of South Bend with a choice of venues to fit their individual needs. -17- Program recommendations for the State Theatre Concert Hall and Playhouse here follow. They are general in nature. For budget and design purposes, we have arbitrarily assigned event days to these venues. This arbitrary selection of the number of events projected for this venue is, however, guided by market and management considerations. 4a. The State Theatre Concert Hall: There are several live performance events or productions, locally produced or commercial promoter sponsored, which fit in a house of the size of the proposed Concert Hall to be constructed in the State- Theatre. These are fine arts events which are presently using less desirable facilities in and around South Bend. These events become a starting place for our program profile for this Concert Hall. In addition to the fine arts series there are popular, civic and educational events which rightly demand a 700 -750 seat house in downtown South Bend. Here is a partial list of events for which the Concert Hall would be the best venue: Chamber Orchestra /Groups: 2 -3 event days Small Symphony: 1 -2 event days Modern Dance: 3 -4 event days Concert Opera: 1 -2 event days Jazz Band or Big Band Concerts: 2 -4 event days Choral Concerts: 1 -3 event days Touring Children's Theatre: 1 -2 event days As a promoter house: 10 -15 event days As a presenter house: 15 -20 event days Cabaret(musical theatre): 15 -18 event days Southhold Dance Company: 3 -5 event days Century Center Convention Programming: 5 -7 event days Civic, corporate, educational use: 9 -11 event days Film presentation: 4 -6 event days TOTAL: 72 -101 EVENT DAYS - 18 - 4b. The Playhouse The key program for the Playhouse is the establishment of a Resident. Theatre Company and a Resident Theatre School for Children and Youth. This venue must become South Bend's place of drama. Ideally, a resident company would be a fully professional company with, at a minimum, an Actor's Equity acceptable season of plays. With this base, we suggest the following program profile for this venue: Resident Theatre Season (6 -9 productions, 15 performances each) Children's Theatre School and Productions (6 -8 weeks school, 4 Performance days) Solo artist recital Recitals TOTAL 90 -135 event days 34 -33 event days 2 -4 event days 5 -7 event days 185 -244 EVENT DAYS Note: South Bend Civic Theatre or the Acting Ensemble should be considered for residency in the Playhouse. As such their event days become a part of the Resident Theatre Season production days. - 19 - D. Management Plan Introductory Discussion A performing arts center or entertainment district defines its purpose through the development of a mission statement. That is, it says what it is going to be by describing an annual program well enough in advance to achieve the goals and objectives so identified. This mission statement, publicly, takes the form of an annual subscription brochure or marketing instrument. Behind this public expression of "next year's program" is a planning and budget process which specifies the resources - artistic, financial and physical - necessary to achieve these program goals and objectives. Audience development fund raising, bookings, staff review and contracts, management style - decision making and follow through - all are a part of a management plan. A management plan is a way of organizing the process of directing people and resources to carry out assigned activities in pursuit of these goals and objectives. The Board of Directors, staff and volunteers, must be structured effectively and efficiently if a entertainment district is to be successful, In this Report, we attempt to provide a model for stucturing management. We are working with limited yet key resources. They are: A Board of Directors, professional and support staff, volunteers, financial and physical resources. . The Board of Directors The business of the Board of Directors is to set policy, provide adequate funding and to plan ahead. It is the role of the Board of Directors to evaluate programs and function within its own previously established policy. It is always the Board's task to do fundraising. It is always the Board's task to select the executive director and to annually evaluate - 20- his/her performance. it is the task of the Board of Directors to establish and implement a long range planning process and to spell these plans out in terms.of annual implementation. t. The Executive Director The staff of the Entertainment District will be responsible to the Board of Directors for the implementation of program. The Executive Director will be responsible for making resource allocations - money, facility and volunteers - in light of the poliices established by the Board of Directors. The Executive Director and other senior staff, at his /her direction, is responsible to the Board for the provision of financial, program, staff performance and facility information so that the Board can perform its planning, evaluative and monitoring functions. An Executive Director's job description must include the following: Description of Function- Responsible for directing the Entertainment District's activities according to policies established by the Board utilizing available resources. Specification of Responsibility and Authority- * Maintains, establishes and eliminates programs with the approval of the Board • Prepares planning materials describing operational needs, directions, trends and capital needs • Prepares annual operating and capital budgets • Presents plans, budget and recommendations to the Board for review and approval • Presents financial reports to the Board describing performance • Hires, evaluates and dismisses employees based upon approved funding, personnel policies adopted by the Board, and employee performance - 21 - * Maintains appropriate internal control, to safeguard Entertainment District assets * Provides supportive activity, information and staff time to the Board's fundraising efforts * Negotiates all artist, artistic organization and outside promoter contracts Description of Relationships- * Serves at the Board's pleasure * Reports all matter of policy to the Board or its appropriate committees for action * Directs the activities of all staff and is responsible for the evaluation of their performance and development * Represents the Entertainment District to the city, county, state and federal government in matters affecting the arts enterprise * Represents the Entertainment District to the public, civic, educational and corporate family of South Bend Measures of Accountability- * Increase participation of the wider community in the Entertainment District program * Increase of external funding • Submit plans, budgets and periodic reports on time as established at the beginning of each fiscal year • Maintains a balanced budget * Accomplishes objectives established in the annual program plan and budget * Maintains a happy and fruitful relationship with the volunteers and volunteer organizations It has been said that "without volunteers an arts organization is just a good idea." We support this notion whole - heartedly and recommend that a formal structure, staff and program be put in place to provide for volunteer service and support to the Entertainment District, as soon as possible. (See Section II, D, 6) 1WkC 4. Staff Configuration Initial staffing of the Entertainment District might look like this. Column #1 represents operation of the Morris Civic Auditorium and the Palais Royale. Column #2 represents the operation oz we iviorric ulvic Auditorium, the Palais Royale, the State Theatre Concert Hall and the State Theatre Playhouse. Salary ranges are suggested. - 23 - Executive Director Adninistrat ve Assistant/ Financial Officer Clerical 1 Clerical 2 Clerical 3 Box Officeldanager Ass' t Box Off ice Manager Public Relations/ Prcmotion3 Manager Director of Development House Manager 1 House Manager 2 Volunteer Coordinator Non-Performance Use Manager Maintenance 1 Maintenance 2 Maintenance 3 Technical Director Asst Technical Director 1 Asst Technical Director 2 Total Plus �enefits INITIAL STAFF CDWIGMNTIQI Morris Civic Auditorium The State Theatre Palais Royale Concert Hall- Playhouse 32,000 40,000 32,000 40,000 22,500 27,000 22,500 27,000 10,000 14,000 10,000 14,000 10,000 14,000 10,000 14,000 10,000 141000 10,000 14,000 14,000 17,000 14,000 17,000 12,000 15,000 14,000 17,000 14,000 17,000 18,000 22,000 18,000 22,000 18,000 22,000 18,000 22,000 18,000 22,000 14,000 17,000 14,000 17,000 14,000 17,000 14,000 171000 14,000 17,000 14,000 17,000 14,000 17,000 14,000 17,000 14,000 17,000 22,500 27,000 22,500 27,000 18,000 23,000 18,000 23,000 18,000 23,000 235,000 291,000 51,700 64,020 286,700 355,020 - 24 - 307,000 382,000 67,540 84,040 374,540 466,040 5. operations Proforma We have prepared the following Income and Expense Proforma with the full understanding that they will be reworked as the actual first year program is developed. It is understood that first year programming will be somewhat less vigorous than that portrayed here. These figures are based upon recognized performance center formulae and a comparative analysis of similar operations around the country. Income figures are based upon a conservative sale of 65% of the house in the case of the Morris Civic Auditorium (2200 seats) and on estimated average ticket price. In the case of the Palais Royale we have used a formula projecting a number of event days per year per event usage or rental fee per estimated number of participants (where applicable.) The State Theatre Concert Hall income is estimated on the basis of 700 seats, 65% of the house, an average ticket price and a number of event days. Local arts organizational use fees are determined for each venue on the formula of $1.00 per seat-sold per event. Rehearsal time fees are fixed at estimated cost and so indicated. The Playhouse Resident Theatre Company and Children Theatre School income is based upon a standard annual lease. In each case the income proforma formula is shown with the listing. The Expense Proforma is based upon current City of South Bend expenses relative to the operation of the Morris Civic Auditorium and our best estimates for the expanded operations recommended. In both cases (Income and Expenses) we have provided separate proforma for the Morris Civic Auditorium / Palais Royale operation and the full operation including a restored /rehabilitated State Theatre Concert Hail and Playhouse. CW%= a. R CME PFCFC NK Morris Civic Auditoriun (WA)Local Arts Organizations State Theatre 24,000 39 event days x 65% of 2200 x $1.00 $ 55,770 (STUlMocal Arts Organizations 4,000 100,000 32 event days x 65% of 700 x 11.00 3 14,560 2,925 (STP)Local Arts Organizations 300 3 682 3 event days x 65% of 350 x31.00 41,405 41,405 (WCA)Cannercial Pranoter 18,750 12,500 30 event days x $3000 247,480 234,360 90,000 (ST(II)Cmmerciai Pranoter 502,829 15 event days x $1250 168,350 (STP)Cmmercial Pranoter 8,645 4 event days x $1,000 (WCAMouse Presentations 11,000 24 event days x 65^,6 of 2200 x 22.50 772,220 (SIUMfouse Presentations 20 event days x 65% of 700 x U8.50 7,000 (STP)ITouse Presentations 2,500 4 event days x 65% of 350 x $9 50 (WA)Civic, Corporate, Educational Use 5 event days x $1500 each 7,500 (ST M)Civic, Corporate, Educatio al Use 11 event days x $1,000 each (STP)Civic, Corporate, Educatiopal Use 10 event days x $250 each (WA)Century Center, Convention Use 6 event days x $1,500 each 9,000 (SMI)Century Center, Convention Use 7 event days x $1,000 each (STP)Century Center, Convention Use 10 event days x $250 each (WCA)Film (Sri) F i lm 6 event'days x 700 x $3.50 each (STP)Film MA) Resident Theatre Conpany (SM0 Resident Theatre Conpany (STP) Resident Theatre Conpany (NM Resident Children's Theatr /School (SrCH) Resident Children's Theatr /School (STP) Resident Children's Theatr /School 4 months x 32,500 /month (PR) to conjunction with 1iA Program 20 event days x $150 per event (PR) In conjunction with SPAT Program (PR) In conjunction with Playhouse Program (PR) Business, civic, social luncheons 15 event days x 200 persons x 9.50 /person (PR) Service Organizations 12 event days x 75 persons x $6 50 /person (PR) Dinner Dances 6 event days x 160 persons x 32..00 /person (PR) Tloliday /Sunday Brunch 10 event days x 200 persons x 312.50 /person (PR) High School Prom 2 event days x 160 persons x 312.50 /person (PR) Weddings, anniversairies, receptions 20 event days x 200 persons x $2 .00 /person (PR) Business awards gatherings 3 event days x 150 $6.50 (PR) Recitals 2 event days x $150 each (NCA) Concession Income 104 event days x 65% of 2200 x $1.00 148,720 (ST01) Concession Incane 91 event days x 6.5% of 700 x $1.0 (STP) Concession Incane 224 event days x 6516 of 350 x 31. 0 Endownent Ineane $500,000 x 7.5 12,500 Subtotal $1,095,690 Public Subsidy /Annual Campai On of Operations Budget) a. R CME PFCFC NK 28,500 5,850 State Theatre 24,000 24,000 Palais Roya,le Concert liall State Theatre Playhouse Sumiary 4,000 100,000 $ 55,770 3 14,560 2,925 14,560 300 3 682 682 41,405 41,405 90,000 18,750 12,500 18,750 247,480 234,360 4,000 4,000 502,829 772,200 168,350 168,350 8,645 8 , 645 7,500 11,000 11,000 2,500 2,500 9,000 7,000 7,000 2,500 2,500 OFTIC 14,700 14,700 22,500 22,500 10,000 10,000 3,000 3,000 28,500 28,500 5,850 5,850 24,000 24,000 25,000 25,000 4,000 4,000 100,000 100,000 2,925 2,925 300 300 $148,720 41,405 41,405 55,632 55,632 12,500 12,500 37,500 247,480 234,360 118,959 1,696,489 502,829 $2,259,318 Salaries: Executive Director Administrative Assistant/ Finance Officer Clerical 1 Clerical 2 Clerical 3 Box Office Manager Assitant Box Office Manager. Public Relations - Promotions Director of Development House Manager 1 House Manager 2 Volunteer Coordinator Nam - Performance Use Manager Maintenance 1 Maintenance 2 Maintenance 3 Technical Director Assistant Technical Director 1 Assistant Technical Director 2 Benefits @ 2296 Part -time Personnel 3000 hours x $4.00 Morris Civic_ Auditorium /Palais Rovale ger SUr=AL Administrative Overhead (phone, office supplies, equipment) Maintenance supplies Insurance Utilities P rcmot i on A %r ke t i ng Equipment(Purchase, maintenence, replace) Memberships/Travel Laundry Building Maintenance Other Contractuals House Presentations Artist's Fee Tickets Insurance - Liquor Concessions - .Costs, Goods Sold Palais Royale Kitchen - Cost of oods Sold Contribution to Endowment Fund SLU'IUTAL TOTAL EXPENSE PICFCFM $ 40,000 27,000 14,000 14,000 17,000 17,000 22,000 22,000 17,000 17,000 17,000 17,000 27,000 23,000 64,020 8,000 37,000 5,000 28,000 65,000 37,500 22,500 4,500 2,500 7,000 6,000 600,000 4,000 2,500 74,360 97,000 350,000 $ 363,020 150,000 1,342,860 1,705,880 - 27 - b. EXPENSE PIiFCRW State: Concert Hall/Playhouse $ 14,000 15,000 22,000 17,000 23,000 20,020 4,000 4,000 2,000 16,000 40,000 12,000 12,500 900 5,000 5,000 140,000 2,500 48,518 115,020 438,418 553,438 4),000 27,000 1 ,000 14,000 14,000 1 ,000 1. , 000 1-4,000 22,000 2 ,000 22,000 17,000 17,000 17,000 17,000 17,000 27 000 23 000 23 000 84 040 121000 41,00 7,0)0 44,0)0 105,0)0 49,5)0 35,0)0 4,5)0 3,00 12,0)0 11,000 740,000 6,500 2,5110 122,878 97,000 500,090 478,040 1,781,278 2,259,318 6. The Friends of the South Bend Entertainment District (FSBED) We recommend the establishment of an auxilliary organization: The Friends of South Bend Entertainment District. It is vital to the Entertainment District Program. We cannot conceive of any part of the Program Plan working without an organized volunteer corps. "Without volunteers, arts organizations are only a good idea." The task assignments for such an organization will be many. Here is a partial listing: a. Serving on the Board of Directors b. Serving on Board Committees c. Fund Raising d. Box Office /Gift Shop e. Usher Corps f. Docents for school children and other groups g. Providing refreshments for Entertainment District functions h. Advocacy before city, county, state and federal government on behalf of the Entertainment District i. Cheerleading throughout the area on behalf of the Entertainment District We should note that existing arts organizations such as the Broadway Theatre League, the Symphony and the Southold Dance Company already have volunteer organizations. Careful discussion is in order as to how best to incorporate their programs in a Friends organization. 7. Endowment Fund Arts programming can no longer survive in the United State on a year to year basis (hand to mouth.) Stabilization of funding is absolutely essential; a fact recognized by many major corporations and foundations who are increasingly willing to fund endowments. Endowments are also very attractive to individual contributors who want to see their contribution growing yearly in its support of a program dear to their hearts. -28- Endowment Funds are usualy managed by a Board of Directors funding committee or endowment council. The principal of the fund is placed in trust with a local bank trust officer or investment firm. The annual earnings of the fund are distributed to the benefit of the Entertainment District. Guidelines for this distribution should include: * 1/4 - 1/3 of distribution to local arts organizations to assist them with costs associated with producing in the Entertainment District venues * 1/4 - 1/3 of distribution to the Entertainment District operations budget for house presented productions * 1/4 - 1/3 of distribution to the Entertainment District operations budget for equipment maintenance, replacement and new purchase The South Bend Entertainment District should have a $5,000,000.00 endowment fund in 10 years. -29- M. R.ESTOAATION /REHABILITATION PLAN A. General Principles The Morris Civic Auditorium, the Palais Royale and the State Theatre remain as a part of the wonderful legacy of past civic minded and forward looking citizens of South Bend. It is a legacy which is too precious to lose or peglect. Rather, the civic leadership of present day South Bend has an obligation and the opportunity to restore and preserve this legacy for gen rations to come. The restoration /rehabilitation of these fine buildings is project worthy of a city with the pride, lifestyle and commitment to qua ity which is evident in South Bend. The restoration /rehabilitation program suggested in this report is in kee ing with the finest principles of historic preservation, rehabilitation and adaptive re -use. These suggestions and recommendations fall within the guidelines of historic preservation as presented by the Secretary of the Interior of the United States and the League of Historic American Theatres. The Construction Cost Estimates (Section III, E.) are based upon accepted practice for restoration /rehabilitation projects. Actual proposals for decorative plaster work and re- painting were received. Further, cost comparisons were made to other current theatre restoration /rehabilitation projects and to ballroom restoration now underway. These remain estimates only and should be used in an informative, rather than a defi itive, way. Next steps in this project include the preparation of arc itectual schematic designs and actual cost projections for the work to be done. B. Marris Civic Auditorium The greatest shortcoming presented to us in the Morris Civic Auditorium is the stage house. It is woefully inadequate for a house with 2200 seats. We exa ined the stage house carefully and arrived at the recommendation that an tirely new stage house be provided. We believe this to be the best -30 - of action for reasons related to program, audience development, and best use of available funds. decorative plaster and painting in the Auditorium and lobbby areas snt to us an opportunity for high glamour and splendid presentation. can be done at a minimum of cost because the plaster remains in good her work which is within our recommendations includes re- seating the ise, rehabilitating the seats, new draperies and carpeting, a re- working public comfort areas and some fire and safety code required up- grading. of the work here suggested will greatly enhance the acoustics and sight s of the house and make major production work possible. C. Mie Palais Royale The Palais Royale is a gem waiting. to be polished! Our program recommendations envision a sparkling ballroom space with an early 20th century ambiance. At the same time, we see the Palais Royale as a highly Acible space appealing to wide variety of functions ana auaience ticipants. To achieve this high degree of flexibility in program use, we e installation of a full service commercial kitchen, modern bathrooms, a re- working of the Colfax Avenue entrance. The grade level retail -e space should remain as is. D. 11* State 71heatre it examination of program use and needs for a downtown South Bend ►tertainment District had led us to the conclusion that a two venue lution to the State Theatre problem is the correct one. Not only is there demonstrated need for a 700 seat concert hall and a 300 seat playhouse, it the economics of the performing arts are such that venues of this size e a necessity for successful operation. - 31 - restore the State Theatre as is would give us a house which would Oete in size with the Morris Civic Auditorium. To restore the front of house provides us with a highly attractive and useful Concert Hall. Playhouse which is home for a resident company is a must for a serious amatic presentation. Without this addition, the performing arts scene in ,wntown South Bend would be as a three - legged stool without one leg. We ge this development. The Playhouse, although a smaller house, will ovide much of the life and liveliness of the Entertainment District. The t of a Theatre School for Children and Youth may very well be most exciting part of the entire project. - 32 - • • O Cl O 7 QQQL O E N h M d L ++ O Ip 41 O d N O O O d �+ 1C ttl M Q+ 401, rCdS r d L W r.N m O I O I O I ++ O 1 GS L Go 1 4! U fn O . d V iLl Q O t (y O C q O t N t y� p. K d O O C O O C O C O C U et u •' C U 4A, m L O 1 1�1 O O O O O O O O O O O O O O O O O O O O O O O N to O O M O O O O O O O O N O O Cl O O O O O O O O O O O d Cl 0 D O O O O O O O O O O O O O O O O rl O C O O O o ll M O N 10 N m N O O O O O v O m w O O O O W O t- N O N O to -4 N N M N t10 O m t1D N V•4 r-1 N M .••I OS N tD N to qY M W Cl M w c �2i w � � •, m w w 05 .� ec C^ t-1 c 7 O O O O O O :1 O O O O O O 7 O O O O O O Q' Ln O O O co m 7 M d' co N N 1.4 �-I N V D O O O O O O O o O O O O Cl O tf, N O O O O O O O k M t0 co m N N N N M N 04 eq N -4 O O O ti N O N to O M th N O 'O O O O O O N O N O O O O D O O O O O O O O O O O O O O O O O O O O O O to N O O O O O tl9 O M' O O O O t0 ?+ O N to O O O O 'O O O O O O N O N O O O O O O O O UM O O O cc to In O O O -e to M! M O N O O Ln O 7 tD ep O M 1-4 ti H CO O Lo M N to N H Ln rl N O M N .-4 N M N -4 H M -W V•4 M N N .4 a M O O O O O t!7 O O O O N O O to O O O O O Y.I O O O O to N O O O O O tl9 O M' O O O O t0 ?+ O N to O W t- t!1 to m N N to N N O N N O M O Ln > N 1••I O m r-1 N to Ln •t1" Ln to O N N 5 M Ot N -4 m N N C N N N r•1 M > O O O o 0 0 o O O t15 o O O t- N <1r to N 7 O to O O O O O O O QS O O N CD M 5 N N O O -' tP) O N O M O Ln > N 1••I O m r-1 N to Ln •t1" Ln to O N N 5 N N -4 m N N C N N N M M M <1r c .+ C a w c �2i w � � •, m w w 05 .� ec C^ .� c a as d . m eo .• �. . bo w Nm QS k+ w 0 C b r 4 a 5 W W CO CE C R ` 6& W m L I m ca O W m L 'C c o tfD d t h .�QQ+ v � C O c O v c d c c U5 c om a w Q5 c on a w 'a v aQ M M M THE AVON THEATRE A. geview and Recommendations B. though not part of the original feasibility study, the Department of onomic Development has requested that we review the proformas apared for rehabilitation and operation of the Avon Theatre as a second movie house. le have conducted this review and make the following recommendations: The Avon Theatre should be included in the Entertainment District, rehabilitated and managed by the Entertainment District Board of Directors. . The program of the Avon Theatre should be that of a single screen "art film theatre." The operation of the Avon Theatre should not be expected to carry acquisition, reconstruction, or amortization costs. Admission to the Avon should average $2.50 per person. Operating a two screen second run movie house in the South Bend market seems at best a marginal business. The proforma prepared by Willis Johnson, a second run movie house operator with considerable experience in the Chicago area, does not support such an operation, particularly if the operation must carry all of the re- construction costs and show a profit for the operator as well. Mr. Johnson's proforma is based upon a second -run house with an average ticket price of $1.50 per person. We believe his conclusions are correct: that is, a second -run house would fail. Our recommendation is that the Avon be rehabilitated into a single screen, art film house, with an average ticket price of $2.50 per person. The Mid -West art film houses, which we have surveyed, are operating, single screen, at an average price of $3.00 per person. -34- Placing the Avon under The Entertainment District management accomplishes several things: a. The construction and capital financing costs can be folded into these costs for the entire Entertainment District; consequently, the Avon operation would be relieved of that burden. b. The management costs for the Avon could be subsumed by the management of The Entertainment District, thereby saving these costs accredited to the Avon Theatre operation. c. The Avon Theatre, under Entertainment District management, becomes a part of the "campus" of marketable venues for use other than film, i.e. conventions, seminars, educational, business and other civic uses. d. Marketing the Avon film program becomes a part of the larger marketing of The Entertainment District and saves some costs. e. The concept of The Entertainment District is enhanced by the addition of an art film house to the mix. C. Operations Proforma e Avon Theatre - single screen with 450 seats on the main floor, 250 in he balcony. (We should look at main floor operation only, refurbishing the alcony at a later date.) - 35 - C. P - AVON THEAMB INCU E Tickets 0 of seats x # of shows x 45% x $2.50) 450 x 208 x 49% x 2.50 Concessions 0 of seats x # of shows x 45% x $1.10) 450 x 208 x 45% x $1.10 = Store Front Rental 800 s.f. @ $8.00 /s.f. _ Total Income Sala ries: louse Manager assistant House Manager Sox Office Personnel Tshers :oncession Personnel 'rojectionist benefits @ 2296 Tbtal Salaries Advertising Bookings Concession Supplies Insurance Utilities Nbvi Rentals Film Delivery Main enance and Repair Misc llaneous Total Expense (E mse over Income) - 36 - $105,300 46,332 6,400 $158,032 $ 14,300 6,000 7,000 3,500 3,500 18,000 11,506 18,000 4,000 24,000 8,000 15,000 25,000 2,600 2,500 1,200 $ 52,300 11,506 $ 63,806 100,300 $164,106 ($6,074) One Screen - Main Floor Only Acquisition $100,500 $100,500 Building General Construction & Demolition 168,567 Mechanical 62,500 Electrical 27,708 Fire Protection 209000 Tenant Inprovements 75,000 Contingency - 19% 53,066 Subtotal 406,841 Indirect Costs: Architectural Engineering Performance Band Legal & Accounting Taxes & Insurance Contingency - 15% 25,000 3,600 5,000 2,000 7,500 6,465 Subtotal 49,565 Total Estimate - 37 - $556,906