Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Standing Committee on City Services and Budgets

FROM:

Director of Civic Theatres

SUBJECT:

Queen Elizabeth Theatre Renovation Grant Application.

 

RECOMMENDATION

COMMENTS

POLICY

Council approval is required to undertake capital projects that require City or outside funding. This includes approval of submissions to senior governments and other funders for capital grants.

PURPOSE

This report seeks approval for Civic Theatres to apply to the Department of Canadian Heritage Cultural Spaces Canada Program for a capital grant in the amount of $5 million. This amount of funding would be one-third of the total budget for a major renovation to the QET complex, outlined below. Such a renovation would be subject to the remaining funding being secured before work would begin.

BACKGROUND

In 1991, Civic Theatres reviewed the state of the three civic theatres with staff and major users to determine a scope of work to preserve and upgrade them to current standards. That Scope document was the basis for a feasibility study carried out during 1992-93 by a team of specialist consultants and engineers. The resulting Long Range Capital Plan has formed the basis for the ongoing upgrades and major maintenance of the buildings ever since.

The principles that guide implementation of the Plan are:

1. Projects are undertaken when funding is available.

2. Projects are undertaken which respond to the needs and priorities of the major Licensees.

3. Projects are undertaken in a way which minimizes closure of the theatres.

4. Every project undertaken must include the linkages and infrastructure to support future adjacent projects so that no part of a project will have to be undertaken twice.

5. Design of projects is guided by the Heritage Architectural Management Plan drawn up for the three theatres.

The renovation project

The core of the project is to:

* make the QET auditorium as intimate as possible by bringing seats closer to the stage and reducing the width of the hall, without reducing seating capacity,

* improve the acoustics,

* increase circulation and activity space in the lobbies and add amenities.

Other project elements include isolating the Playhouse and QET from each other acoustically, upgrading the Plaza, enlarging the restaurant and adding arts offices, seismic reinforcement, adding an elevator in the Playhouse, and upgrading air conditioning systems.
Cultural Spaces Canada Program

This past spring, Minister Sheila Copps announced several federal funding initiatives for the arts in Canada. One of these, the Cultural Spaces Canada Program, is targeted at upgrading arts facilities built in the 1960's. $80 million has been allocated for all of Canada.

The program is on a similar matching funding formula as previous infrastructure renewal programs; one-third federal, one-third municipal and one-third from "other" sources, not necessarily provincial government.

DISCUSSION

This report only seeks approval to apply for a grant from the Cultural Spaces Canada Program. Civic Theatres must have all funding in place before seeking Council approval to proceed with the designated project, or part of it.

Funding formula

The proposed sources of funding are:

Federal - Cultural Spaces Canada $ 5 million
Municipal - Civic Theatres Capital Reserve $ 5 million
Other $ 5 million

Total $15 million

The Federal component is, of course, the grant we would solicit from the Cultural Spaces Canada Program.

The Municipal component is to be funded from the Civic Theatres Capital Reserve, which accumulates revenue from a surcharge on tickets sold to events at the theatres plus net income from the QET Parkade. The ticket surcharge is presently $1.25 per ticket over $12.00 face value for all events presented by the local, City-supported, non-profit performing arts organizations and $1.50 per ticket for all other events. The total surcharge revenue in 2000 was $434,731. Net parking revenue was $139,060; total in 2000 of $573,791. The total amount fluctuates from year to year with the number of events and sizes of audiences. It has been as high as $800,000. These revenues are paid into the Civic Theatres Capital Reserve and are utilized to provide financing for improvements to the theatres. In caseswhere project cash flow requirements dictate, interim financing is provided by the Property Endowment Fund at market rates. At present the outstanding debt to the PEF for past and present projects stands at a bit more than $4 million. After 6 months, Capital Reserve revenue stands at more than $500,000 and could rise to $750,000 for the year 2001. At that rate of income, the present debt could be reduced to $2.5 million by the earliest time work could start on the proposed QET project.

The Other component is the most problematic as the third $5 million has to be found. There is no obvious single source. In order to address this, the Civic Theatres board is assembling a small committee to advise on the feasibility of raising the third $5 million and if it seems possible, to develop a strategy to pursue it. At the July board meeting it was agreed to appoint 2 members of the Civic Theatres board, and to request 1 representative appointed by the Vancouver Opera Association board, 1 representative appointed by the Ballet BC board, 1 representative appointed by the commercial presenters and to recruit 2 citizens at large.

Timing

We have been asked to submit our application to DCH by September 15. There is no word on timing of awards of grants.

The final design and permitting process will take 9 - 12 months from the date of initiation, before construction can start. Construction in the auditorium must only take place in the summer months so that closure of the theatre will not impact the resident companies' regular seasons. Construction of the auditorium will be phased over 2 summers. Ancillary project components can continue over the intervening months.

Assemble financing: unknown - 12 months?
Design & permitting: 9 - 12 months
Construction: 18 - 24 months

The earliest possible start date for construction would be summer 2003.

FINANCIAL IMPLICATIONS

No funding is being sought from any City source other than Civic Theatres Capital Reserve.

The present PEF debt may be paid down to $2.5 million by the earliest time work could start on the proposed QET project.

There are no significant impacts on operating costs arising out of these upgrades. There may be savings in energy consumption and improved revenue sources resulting.

Contingencies

1. If a reduced grant is awarded, the project program can be adjusted, within limits.

2. If no grant is awarded but "Other" funding is successful, the project can be adjusted.

3. If "Other" fundraising falls short of the target, the project can be adjusted, within limits.

4. If "Other" funding fails, the project cannot proceed.

CONCLUSION

There is an opportunity to seek federal funding to assist in a major renovation to modernize the QET auditorium and other parts of the complex. Civic Theatres seeks Council approval to apply for a $5 million grant as one-third of the estimated cost of this project.

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