Vancouver City Council |
ADMINISTRATIVE REPORT
Date: June 4, 2004
Author/Local: Rae Ackerman
RTS No. 04221
CC File No. 4251Meeting: June 22, 2004
TO:
Vancouver City Council
FROM:
Director of Civic Theatres in consultation with the Director of Facilities Design & Management
SUBJECT:
Civic Theatres Capital Projects - Funding
RECOMMENDATION
A. THAT Council approve allocation of $375,000 from Civic Theatres Capital Reserve, with interim financing from the Property Endowment Fund, as follows:
1. $75,000 for fees and expenses to support fund raising for the proposed redevelopment of the Queen Elizabeth Theatre, and
2. $140,000 for Phase 1 of Final Design for the Queen Elizabeth Theatre Redevelopment project.
3. $160,000 for equipment upgrades as listed in Appendix "A".
The PEF loan will be established based on terms acceptable to the Director of Finance.
B. THAT if A-1 is approved, Council also approve the continuation of Bridge Communications as the support consultant for the fund raising project at a cost not to exceed $60,000.
C. THAT $200,000 allocated in the 2004Basic Budget Capital to replace QET carpeting be re-designated to refurbish Orpheum seating.
COMMENTS
The General Manager, Corporate Services RECOMMENDS approval of A, B and C.
POLICY
Council must approve the commitment of funds from Civic Theatres Capital Reserve.
Council must approve re-designation of funds in Basic Capital in excess of $50,000.
PURPOSE
Civic Theatres seeks approval of an allocation of $375,000 from Civic Theatres Capital Reserve to:
1. Pay consultant fees and miscellaneous expenses in support of the fund raising project for the redevelopment of the Queen Elizabeth Theatre and Plaza - $75,000.
2. Fund Phase 1 of the final design of the redevelopment project - $140,000.
3. Fund equipment upgrades - $160,000.
Civic Theatres also seeks approval to extend the engagement of Bridge Communications as the support consultant for the fund raising project.
Civic Theatres also requests that $200,000 allocated in Basic Capital (Acc't. 30007041) to replace QET carpeting, be re-designated to refurbish Orpheum seating, which is a much greater priority.
BACKGROUND
Redevelopment of the Queen Elizabeth Theatre
On September 13, 2001, Council approved the submission by Civic Theatres of a grant application to the Federal Department of Canadian Heritage Cultural Spaces Canada Program for $5 million as one third of a proposed $15 million redevelopment of the QET and Plaza.
Another $5 million is proposed to be paid by Civic Theatres Capital Reserve which earns revenue from a surcharge on all tickets over $12 value sold for events at the 3 theatres plus net revenue from the QET Parkade. The Capital Reserve earned $946,520 in 2003.
The final $5 million is proposed to be raised from other public, private and corporate sources. It is this $5 million that is the subject of Recommendations "A-1" and "B".
Having secured Council approval to apply for the grant, the Civic Theatres Board appointed a committee to develop strategy for raising the third $5 million. That committee is led by Civic Theatres Board Chair Art Jones and board member Graeme Stamp. In 2003 they recruited Brandt Louie to lead the Campaign, who in turn recruited Vice Chairs Moh Faris, Peter Legge and a Committee that includes Peter Bentley, Jamie Bruce, Tom Chan, Yulanda Faris, Ian Gillespie, David Ho, Robert Kadlec, Dal Richards, Red Robinson, and Dennis Skulsky. The committee is supported in its efforts by Bridge Communications.
The committee has been actively engaged in soliciting funds since February 2004.
Civic Theatres Long Range Capital Plan
During 1992 - 1993, Civic Theatres engaged a team of consultants and undertook an in-depth analysis of the capital requirements of the 3 theatres to bring them up to date. The Plan had input from all of the major theatre users as well as staff. Development of the Plan included schematic architectural design as well as structural/seismic, electrical, and mechanical engineering, theatre systems design, acoustic analysis and costing. All work done on the theatres since then has been based on this Long Range Capital Plan.
DISCUSSION
1. Fund raising budget - $75,000.
This is to support the Campaign Committee with such services as research, strategic planning, coordination of meetings, following up on contacts, providing print and display materials etc. and arranging details of funding agreements.
Recommendation "B" requests approval to extend the contract with Bridge Communications to a maximum of $60,000. Civic Theatres Board, at its meeting on February 12, 2004, resolved "THAT the Vancouver Civic Theatres Board recommends the renewal of the contract with Bridge Communications to continue as the fund raising consultant for the Queen Elizabeth Theatre Redevelopment project."
2. Phase 1 Design - Scope, Technical Analysis and Costing - $130,000
As part of the proposed QET Redevelopment project, we need to revisit the original Plan and the 1997 updates. We need to verify scope and advance a number of details including; structural engineering, seismic reinforcement, modelling of the acoustics of the proposed new 3rd balcony, and evaluate design and zoning options for the potential of an office tower on the Plaza. Once that has been done, the cost estimates have to be updated to reflect the recent increases in construction costs and their impact on the proposed budget.
3. Equipment Upgrades - $160,000
This is to fund miscellaneous equipment and furnishings upgrades listed in Appendix "A".
4. Re-designate $200,000 allocated in the 2004 Basic Capital from QET carpet replacement to Orpheum seat refurbishing.
The 2004 Basic Capital budget includes $200,000 requested by Building Services for QET carpet replacement and repair of miscellaneous finishes. This was requested in the hope that we might have been nearing the end of construction on the redevelopment project. However as we are some time away from starting we do not want to invest in carpeting that will have to be redone in a couple of years.
In the meantime, the seating at the Orpheum is in very poor shape, many of the cushions and backs being held together with different colours of cloth-backed adhesive tape. Building Services staff have begun re-cycling the worst seats to the back rows and dark corners of the theatre. $200,000 will enable us to re-upholster the seat backs and cushions, and repair the frames.
FINANCIAL IMPLICATIONS
The financing plan requires a loan from the PEF to be repaid from Civic Theatres Capital Reserve Revenue as it is earned. The outstanding balance in the existing PEF loan as of the end of 2003 was $2.7 million. The Capital Reserve Revenue in 2003 was $946,520.
Civic Theatres Capital Reserve accumulates revenue from the QET Parkade and form the ticket surcharge. Parking rates at the QET Parkade are being increased next month in step with other parking rate adjustments. A companion report requests approval to increase the ticket surcharge by $0.25 as of July 1, 2004.
The PEF loan will be established with terms acceptable to the Director of Finance.
CONCLUSION
This report requests approval of $375,000 from the Civic Theatres Capital Reserve, with interim financing from the PEF, to provide a budget for fund raising for the proposed QET redevelopment including appointment of Bridge Communications as a fund raising consultant and in addition, funding for Phase 1 of the final design. Funding is also requested to upgrade some furnishings and equipment for the 3 theatres.
Finally, we request re-designation of $200,000 in Basic Capital from QET carpet replacement to Orpheum seat refurbishment.
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