02/18/1981 Meeting - Laserfiche WebLink

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e V. LOCAL USER RATES FOR PERFORMING ARTS CENTER (memo and resolution distributed) Mr. Gleason introduced Dick Reynolds, Performing Arts Center. Mr. Reynolds stated that the Eugene Performing Arts Commission is responding to a request from the council to reconsider the user rates for non-profit local groups using the Performing Arts Center. At this time, they are estimating that rent for local, non-profit companies could be $200 per day for the small hall and $520 per day for the large hall. This represents a decrease of rent of the small hall from $350 to $200 and a decrease for the large hall from $1,200 to $520. The rationale for the charge is the necessity to cover direct out-of- pocket expenses such as utilities and payroll. These are the actual costs as projected at this time. The commission's recommendation is to also review the rates after 18 months of operation to determine if the rent schedule is appropriate. They could also increase the base rent if direct costs increase, such as utilities and labor costs. e Ms. Wooten noted appreciation for the compromise proposed by the commission, but stated concern regarding the room tax suggestions made in the commission's memo. Mr. Reynolds stated that the commission discussed this at a recent meeting and wanted the council to be aware of their interest in restructuring the room tax allocation. The resolution before the council tonight, however, does not include any reference to room tax funds; the reference has only been made in a resolution approved by the commission. They feel attention should be paid to the financing situation. Ms. Wooten stated she has no objection to the resolution before the council in that case. Mr. Reynolds stated the commission wants to stress the need for a subsidy to reduce user rates, but this has not been dealt with in the resolution. e Mr. Obie asked if a financial forecast is available with a consideration of these new rates. Mr. Reynolds responded that the council has seen previous forecasts and the cost of this reduction will be approximately an additional $40,000 per year subsidy based on current user projections. Mr. Obie noted difficulty understanding a $40,000 subsidy and asked what this would mean to the entire budget. Mr. Reynolds stated that this would amount to between 8 and 12 percent of the required subsidy. Mr. Obie asked if there is a way the City can share in the success of the local groups if they fill the halls with a successful show. Mr. Reynolds responded that there will be a review after the first two years and that this is a transitional period. The commission felt that a two-year period should give the performing arts organizations an indica- tion of their income and expenses and by the third year the facts would be known. This will help the groups get on a firm base. Mr. Obie asked if the commission had received any indication that if they were to grant an increase in room tax funds to the'Performing Arts Center, the performing artists would be supportive of a reduction in the room tax subsidy that is now given directly to local arts groups. Mr. Reynolds responded that this has not been addressed with them directly. They are looking for other sources of funding for the center. The Room Tax Subcommittee is trying to identify alternative funding sources. Mr. Obie asked how many dollars from room tax are committed to performing arts. Mr. Reynolds responded approximately 40 percent or $125,000 per year. Mr. Obie asked if this is for the center or for various groups. Mr. Gleason stated that MINUTES--Eugene City Council February 18, 1981 Page 4