Item 05 - Cultural Trust — original pdf

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Implementing inclusive and equitable public development services as a non-profit partner to the City of Austin Arts Commission Austin Economic Development Corporation December 12, 2022 Cultural Trust Program dedicated to securing affordable space for existing venues, and developing new creative space infrastructure, preventing further displacement of our creative sector Cities around the world have been looking at this issue, given real estate challenges of growth. Austin is part of a network of cities experimenting to addresss cultural displacement, and coordinating with best practices globally. Observations • • In addition to the seed funds provided by the City, the needs exceed our current resources. • This is a unique and new process—it is not a grant program, it is an investment program, with multiple variables to consider for feasibility. This process has provided us with a pipeline of projects, and the needs in the ecosystem require additional more flexible program funds. • Organizations are being displaced frequently, and there is a significant deficit of affordable production/practice spaces as well as performance/exhibition spaces. • The execution of these projects will still take time -- AEDC’S goal is to advance as quickly as possible. Austin EDC Cultural Trust | 12.6.22 3 Cultural Trust Funds Available 12 M Creative Spaces Bond Fund • G.O. Tax Exempt Bond requirements • Acquisition & Development • Publicly accessible • Complex deal structure required for operational management 2.4 M HOT Iconic Venue • Acquisition, development, and means necessary to secure the space • Requires ‘Tourism’ function • ‘Historic Zoning’ for property tax relief • Council approval not required 5.0 M COA Budget – Iconic Venue • 15 M total over many years • More flexible than HOT funds • Council approval not required Additional funds to leverage public funds (eventually): Loans-traditional • Loans-CDFI • • Social impact investments • Grants • AHFC/LITC [NMTC]-future • All of these are being considered, but are not directly applicable to first round investments by AEDC. Austin EDC Cultural Trust | 12.6.22 4 This Process Program alignment Feasible deal structure-legal projects projects Projects Feasibility due diligence Feasible for all parties: City, Property Owner, Organizations 45 Submissions (+16 Pipeline Only) Long List 14 Prioritized projects for due diligence Shortlist Organized by feasibility and investment size 2-6 Projects/Initial Investments (Bond Projects will support many more organizations) Austin EDC Cultural Trust | 12.6.22 5 Spaces provided by ‘Long List’ is a portfolio of diverse offerings multi-use theater venues: 99 -500 seats New, No Location creative shared workspaces music performance venues: 300- 2300 capacity Theater Culture rehearsal spaces: music, dance, theater Music Dance arts studios digital media studios Visual Arts art galleries music recording studios Austin EDC Cultural Trust | 12.6.22 6 Long List Reflects Joint Music and Arts Commission Recommendations Geography: • E of I-35, W of US-183 • S of Lady Bird Lake, N of Ben White (HWY-71) • Downtown (Lady Bird Lake to MLK and I-35 to MoPac) • N of 30th St, S of US-183 Theater Culture Amenities • Flexible rehearsal spaces • Performance venue with a capacity of at least 50 seats (may include outdoors) • Visual arts studio and gallery space(s) • Educational space(s) Music Dance New, No Location Equity: • Operational leadership and staff/administration includes 33% of people from underserved/marginalized Visual Arts groups or communities of color. • Free or significantly reduced rate creative space to underserved/marginalized individuals/groups. • Allows for equal opportunity for project participation. • City RFP process must include targeted outreach to historically underserved/marginalized populations Austin EDC Cultural Trust | 12.6.22 7 Feasibility Evaluation Process ▪ Feasibility Review: Fit with funding sources, Organizational capacity, Site control, Negotiatability, Project economics, Weighted for equity Theater ▪ Advanced all projects to the most ‘feasible’ while balancing economics, Culture requirements of funding dollars and program goals. ▪ Get projects to ‘pencil’ while not raising initial rent, which may require Music Dance additional uses of facilities are being assumed ▪ Demonstrate a pipeline of projects to represent the variety of ways we can New, No Location support and secure creative space Visual Arts ▪ This round focus on preservation of existing spaces, and available city spaces for new venues Austin EDC Cultural Trust | 12.6.22 8 Spaces in Creative Infrastructure-ACT Has Unique Role PARD Arts & Culture Facilities Existing Mid-Range Venues, Experimental and Production Spaces subject to ‘whim’ of Real Estate Market Non Profit Venues- Large on City property Non-Profit , Commercial Venues that own their property Theater Music Dedicated Fund Support Support New, No Location Cultural Trust Infrastructure Supported most needed, and most helpful Venues Production Shared spaces Cultural Trust Infrastructure • Supporting/securing existing venues and building new venues to help support displaced organizations. • Dance Culture • A variety of spaces in addition to venues—practice/production are critical to the success of the system. Includes Professional operators/management to best suit creatives The physical infrastructure will need technical assistance, capacity, operational expertise support and financial reserves (Current funds do not provide) • Visual Arts • Affordable housing/Transit investments help this ecosyste Austin EDC Cultural Trust | 12.6.22 9 Pipeline and Future projects for 2024 Initial Investments Project Build out 2023-5 2022-3 Investments 2023: 2024 Bond Cycle 2023-4: Identify & Leverage Additional Investments 2025: Deploy Additional Investments 2-3 Iconic Venues 5-7 Bond– Funded Projects Identify Additional Projects As project execution is visible, it will be easier to identify new resources Austin EDC Cultural Trust | 12.6.22 10 Continue to build out pipeline Initial Projects--Phase I-- on December 8 Agenda: Creative Space at the PDC- Cultural Trust Incubator • Function as open public cultural arts facility • Provide swing space for displaced companies • Lead Operating Company from Long List, to be announced • Design process will include pipeline organizations • Fit out build out budget $2M Millennium Youth Entertainment Complex-Theater • Provide improved theater space open to the public • Support more than just cinema use • Lead Operating Company will continue to operate • PARD will facilitate the construction / upgrades • Upgrade budget at $400,000 Future Projects To Be Announced! • As term sheets are signed, and approved, these projects will be announced, to the extent funding can support Austin EDC Cultural Trust | 12.6.22 11 Future Considerations ▪ Process Improvement- Delegated authority to negotiate and execute project agreements at AEDC Public Board Meetings ▪ Identify more flexible capital: match more with specific needs ▪ Act proactively, and at time of need ▪ Include private activity and more types of space rentals ▪ Production/studio spaces without lead organizational/operational entity ▪ Shared facility models (e.g. merch distribution, costumes/sets) ▪ Identify funding to provide additional Ombuds/Tech Assistance support ▪ Future Pipeline process Improvements: Two step intake process, Rolling feasibility evaluation. Austin EDC Cultural Trust | 12.6.22 12 Thank You