Citation
Cultural arts and economic development

Material Information

Title:
Cultural arts and economic development
Creator:
McCloud, Debra A
Publication Date:
Language:
English
Physical Description:
71 leaves : charts ; 28 cm

Subjects

Subjects / Keywords:
Arts and society ( lcsh )
Art centers -- Economic aspects ( lcsh )
Arts -- Finance ( lcsh )
Arts and society ( fast )
Arts -- Finance ( fast )
Genre:
bibliography ( marcgt )
theses ( marcgt )
non-fiction ( marcgt )

Notes

Bibliography:
Includes bibliographical references (leaves 69-71).
General Note:
Submitted in partial fulfillment of the requirements for the degree, Master of Planning and Community Development, College of Design and Planning.
Statement of Responsibility:
by Debra A. McCloud.

Record Information

Source Institution:
University of Colorado Denver
Holding Location:
Auraria Library
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
15686501 ( OCLC )
ocm15686501
Classification:
LD1190.A78 1986 .M25 ( lcc )

Full Text

CULTURAL ARTS
AND
ECONOMIC DEUEL OPMENT
* AURARIALIBRARy^
Debra A. McCloud December 1986
ARCHIVES
LD
1190
A78
1986
M25


^CULTURAL ARTS
and
ECONOMIC DEVELOPMENT
Th e s i s
Presented in Partial Fu 11 f i 11 merit of Graduation Requirements for the Degree of Master of Planning and Community Development
University of Colorado at Denver College of Design and Planning Denver Colorado
By
Debra A. McCloud
/
December 11, 1986


CONTENTS
CHAPTER 1. Introduct ion 1
CHAPTER 2. Art and -the Community 2
CHAPTER 3. Arts Affect Economic Development 13
CHAPTER 4. Use of Arts in Economic Development 22
CHAPTER 5. Financing the Arts 27
CHAPTER 6. Data Analysis and Summery of Survey Responses 35
CHAPTER ?. Conclusion of Data and Literature Review 64
FOOTNOTES 68
RESOURCES 63


47
47
48
48
49
50
51
52
53
54
54
55
56
57
58
59
60
61
62
63
TABLES AlO CHARTS
Expenses Local Expenses, Nonlocal Revenues Local Revenues, Nonlocal
Salaries & Employment, Percentqe Comparison Percentaqe Comparison, Center Useaqes
Balance Sheet
Other Revenues and Public Monies
Purpose and Source, Other Revenues and Monies
Summery, Expenses, Revenue. Employment
Employment, Local, Nonlocal
Membersh ip, Type and Percent
Land Acquisition, Financinq
Capitol Improvements, Financinq
Equipment and Furnishinqs, Financinq
Surroundinq Land Use
Center Useaqe by Activity
Center's Activites, Percentaqe o-f Use, Revenues Center's Expenses, Local and Nonlocal Center's Revenues, Local and Nonlocal


INTRODUCTION
With the crushing problems of street ma intainance, water treatment, balancing the budget, especially in lieu o-f the anticipated cuts due to the Gramm-Rudman Bill, and additional cuts in funding from the federal budget, suburban cities are shying away from the support of the arts. It may seem frivolous and perhaps not a responsibility of the municipal government. But a suburb can, while establishing an indiviual identity from a core metropolitan area, support the arts and nourish the soul of it inhabitants, in development of a strategic economic plan.
The identity of each community depends on the recognition of the individuality of the community in its ethnicity, history, values. Arts in painting, music, dance, have historically been the outlet for the visual and auditory experience of the identity of the community as well as self. Santa Fe, New Mexico, is Known for Spanish and Indian cultures celebrated in the Festival held in September and Cinco de Mayo. Festivals, showcases, public sculptures tradition, folK festivals reflect the cultural heritage of the area. Appalachia for the folK crafts and unigue bluegrass music. Pennsy1vannia has the Amish in addition to the national history. Arts
1


are lasting in defining what our children and
grandchi1dren will be able to looK at, to feel, to do and to be proud of.
In response to this recognition of the role of the arts in community life. President Johnson signed a bill creating the National Endowment for the Arts (NEA) in 1965. A rush to create public support agencies began in order to be eligible to funds available under the hEA charter. Twenty percent of the program's funds are reguired to be granted to public support agencies established for the support of the arts.
In June 1974, the U.S. Conference of Mayors passed a resolution in regards to the Quality of Life in cities, resolution included several points of which two in particular challenged the nation's communities.
1. "That city governments recognize the arts as an essential service, and help maKe the arts available to all their citizens. ... and
2. "That a percentage of the total cost of every municipal construction budget be set aside for the prchase or commission of worKs of art" The guestion in short is. Can the arts assist in the development of the community identity, build the guality of life as well as contribute to the economic well being of the community?
A simplistic answer is yes or no. Obviously, the
2


issue is more complex and can be broKen down into 3 basic
questions:
1. What are the Roles of the Arts?
2. How do arts affect the Economic Development of the Community?
3. How to use the arts specifically. Cultural Arts Centers, as an Economic Development Tool?
In the process of expandinq the Revenue base and to assist in the establishment of an identity, can suburban cities have incorporated Cultural Arts Centers into their economic development proqram? Suburban communities of larqe metropolitan areas, usually have difficulty establishinq an identity of their own, theirs beinq diffused with that of the larqer city, alonq with being economically interdependent on that "core" of the metropolitan area. These centers serve not only revenue collection but the expansion of services for the citiaens and the extension of the dentity of the community. It is the hypothesis of this paper that Cultural Arts Centers are a feasible Economic Development tool, which contributes to the goal of Economic Development in revenue base expansion. It is my intention that this document will provide a quidelinq for suburban communities to study the feasibility and the process for the establishment of a cultural arts center.
While there seems to be adequate case studies of
3


communities which have cultural centers, a "how-to" study
for the feasibility of a center for suburban communities between 50,000 to 150,000 does not appear to exist. This paper will collect data from case studies of communities across the nation, periodical 1iterature essays from presentations from professional conferences and information from professional organizations. The study will examine the economic impact of the cultural arts facilities, examining catagor iza ing and establishing an order of the most common to the least common of the elements considered in the development of successful centers. The information will be organized in order to form a list of criteria related to the building of Cultural Arts Centers as part of the Economic Development Program.
In this paper, I will examine the guestions basic to the use of Cultural Arts as an Economic Development Tool. The following will be examined; Chapter £, the Role of Arts in the Community, Chapter 3, Arts and their affect on Economic Development, Chapter 4, Using the Arts in Economic Development and Financing the Arts in Chapter 5. These chapters constitute the literature review portion of my research.
Information for these sections was researched from written papers and research presented at various conference along with articles in periodicals. While most
4


mid-size cities and larger cities have Cultural Art
Centers, the conscious applied use of the centers as a tool in the economic development program, does not seem to happen. In researching available literature, information was found that dealt primarility with the architectural aspects of the centers. Therefore the assumption is made that the intentional use of cultural centers in not widely spread and is in the neophyte stage. Examples citied are from the available reports and periodical literature.
Chapter 6 contains tabulation and analysis of surveys recieved. From these a general summery of the use of the Art Center is drawn. Expenses, Revenues, Center's Uses, Financing Technigues for land acguisition, Capitol Improvements and Eguipment and Furnishings have been examined along with emp1oyment, surrounding land use and any other financing mechanisms utilized. Tables and Charts from the Data Analysis are included at the end of chapter 5.
Chapter ? contains the conclusion and summery of the literature review and the data analysis.
Since the intent of this paper is to establish a set of guidelines for communities to use in studying the feasibility of kuilding a community center, no hypotheses of the types of financing, expenses, revenues, etc are
information collected from the surveys and literature review.
assumed. The final product
5


Surveys were sent to cultural centers selected from
data information centers dealing with the arts. Questions include operating information, activities, financing technigues for the cultural centers and land acguisition uuse. Responses will be catagorized according to the sections of the survey and interpeted as to the most utilized responses. Since the survey did not asK when the center was opened the reader must be aware that the responses may not necessarily inclclude recently emerging technigues that can be used in land acguitision and other stages of building a cultural center. This paper is not intended to be an explicit step-by step statement on how to use arts in the economic development but as a guideline in the investigation of the expenditures and revenue sources and the financing technigues used in centers across the country.
6


ART AND THE COMMUNITY
Art is not a luxury. It is a part of our being, used to express feeling as an alternative to interpersonal works. Thru poetry, music, dance, and crafts, Man communicates. John Adams, in a letter to his wife Abigail, recognized the need for the arts in a civilized nation. He wrote, "The mechanic arts are those which we have occasion for in a young country as yet simple and not far advanced in luxury. I must study politics and war so that my sons may have liberty to study mathematics and philisophy, geography, natural history, navigation, commerce and agriculture, in order to give their sons the right to study painting, poetry music, architecture, statuary, tapestry and porcelain." <£)
Art Plays a role in education, therapy, and communication. It encompasses a broad spectrum of definition interpetation and acceptance. "One man's Art, is another man's .iunK". Irregardless of how one Iooks at art, the value and place it has in our culture must be recoqnized .
Congress recognized this need in the capital rich days of the 1960's with the creation of the National Endowment of the Arts.
President Johnson signed the bill creating the
7


National Endowment for the Arts But where do the Art's really fit in? The visible signs are in art galleries, museums, theaters, concert halls and architecture. In this, they are tangible, thay can be touched, seen and heard. They directly influence how we feel about a difficult to define guality life.
The governing body is responsible for the guality of life as well as the public safety, street and other basic municipal services. Arts enhance the guality of life and provide a return on the investment in terms of increased tourist useage of the art facilities. Arts are also playing an increasing role in the location of a company or the expansion of an existing company.
Cities advertise available recreational services, economic, environmental and cultural amenities. In economic development programs, local governments have upgraded and extended infrastructure, and services to enhance the general guality of physical environment and should include the arts as part of their economic
8


deve 1 oprmeirt program.
Quality of life refers to those ameninties that are part of the positive, the "niceties" of living. They provide opportunities, convienences, and pleasures. Pollution, congestion, noise, blight, and etc. are part of the unp1easentness of life, creating, disincentives for locating or expanding firms. Quality of life is basic to vibrant, growing cities able to maintain basic services to their citizens. In addition to those services, the city has the obligation to support the beauty and amenities of its own properties. It requires the maintenance of recreation, parKs active and passive, open space and should include other cultural aspects. Arts must be woven into the city's primary responsibility, as arts are an integral part of the whole life of a community. The city must play a Key supporting role, especially where there a a vacumn. Community development efforts should be directed at the improvement of urban amenities and the guality of residential neighborhoods.
In the process of conducting research for location or expansion of a firm, the city's image is important. The manner in which it see itself, determines how other's see it.
James L. Shanahan, Associate Professor, Urban Studies at the University of AKron comments that entrepreneurs and executives in choosing a new or expansion location,
3


are concerned with the quality o-f life and that the quality of 1 i-fe plays an important part o-f the location analysis. "In the main ... the sunbelt and suburbs have developed rapidly because people wanted to live there."
A community needs to create visual symbols for a community to affirm its own uniquesness and be able to show that unique identity to the people who live there and to those who visit. Arts qreatly enhance the city's image and reputation for the arts. By contributinq to a chanqinq city's imaqe. retain retail trade, draw commercial and tourist interests, assist in the development of community pride and improve the chances for the success of other activites in economic development plans of the city.
In the study to determine how a cultural facility can chanqe the neqative imaqe of a city. Dr. Cwi believes that cultural facilities taKe the shape of an amenity increasinq the quality of life. He states,
"Expansion of the local arts sector can change the negative images, held of many cities as qritty boring or otherwise not liveable. Development of cultural facilities can create an awareness that some negative images are not based in fact and that efforts are underway to build in more amenities and lessen disamen ities. The local arts sector can be a part of the emerging service-based economy that generates, not a result of, economic
10


development and that efforts are underway to build in more
amenities and lessen disamenities. As such, arts involvement acts as a people magnet." <3)
All or any of the above, in tacit and indirect ways, reinforce possible locational choices by citizens, business, and institutions to favor cities and areas in and around central business districts or intense commercial districts and neighborhoods targeted for redevelopment.
Arts can contribute to a changing city's image, retain retail trade and draw commercial trade along with tourists, assist in the development of community pride and improve the chances for the success of other activities in economic development plans of the city.
According to Dr. David Cwi of the Cultural Policy Institute, contributions of the arts to the city include: "changing of the city image retaining the retail trade
encourageing the development of the city as a tourist and regional center
creation of marKets for new business encourage new private investment channeling commercial development and private investment to targeted city locations
developing community pride and spirit so that people
have a staKe in preserving an area's health and vitality


Enhancing "the city's tourist and industrial or
business development programs and improving the success of larger development protects that are important export centers, such as convention centers.<4)
From a city's perspective, economic development is important to maintain the viability and role of the city as a social, commmercial and cultural center.
Development needs to establish as goals the ablility
to:
Encourage people to come to the targeted area for uor-K and leisure activities.
Attract the tourist to the city and encourage them to stay for vacation, business and meetings.
Establish residential areas near and around the targeted area.
Encourage the development of offices and othe commercial uses within the targeted and surrounding area.
In short to create a multi-use. mu 11i-dimensional focus for the city along with the citizens of the city and the areas surrounding the targeted area.
12


ARTS AFFECT ECONOMIC DEVELOPMENT
As to the relationship of the role art plays in the people" attraction to deve1opment, Mr. Austin Kiplinqer quotes James Rouse, a well Known land developer that when Rouse plans a commercial center, he thinKs of what forms of arts canbe sued to attract people too that location.
Mr. Kiplinqer believes that the arts are as much of a part fo the environment as is the air, water, buildinqs, roads and parKs. (5)
Communities are in qreater number utilizinq Cultural Arts Centers in the development of qrowth and economics of their city. Elements of the non-economic quality of urban life include a wide variety of cultural activities and recreation proqrams, museums and more. All play a part in the construction of the intanqible definition of the quality of life.
In the process of usinq Cultural Arts as part of the Ecnomic Development Plan, leadership has to come from three sectors. Government, Land Developers or the private sector, alonq with the Chamber of Commerce, and local arts councils and etc. The formulation of the Plan must be based on the assessment of local need and carefully concieved plans in order for the arts to compliment economic development and community revitalization efforts.
13


The true challenge is to create the atmosphere, a stage, that ui i 1 1 support the arts in a systematic. Planned manner. Arts can only happen on a large scale or public oriented basis when they are PLAINED to tit in. Part of public responsibility is in the process of increasing the draw, generating more programming, enlistment of support, in addition to helping with the process of ownership of arts f ac i 1 it ies .
Studies by arts groups have a political, rather than a policy focus. Advocates are aware some decision maKers in government and business view arts as a frill and possibly a drain on the local community. The typical study seeKs to establish the impact of the arts by presenting a balance sheet of expenses and the revenues of the
organizations studied. As assumption is made that users
/ 1----
of the facility also dine at area resturants and spend at other retail outlets. Ulith Ihe use a "mult ipl ier11 established from a formula based on population and income along with other factors, they prove the positive impact of the arts. Unfortunately, it is difficult if not impossible to measure the subtle effects the arts have in the co mmu nity.
Economic studies that have been conducted are also limited in cope. These studies do not include commercial enterprisesof individual artists and craftsmen. Local studies include only non-profit corportations and
14


government agencies do not generally attempt to gualify or
guantify the subtle effects of cultural activities on the c o mmu n i t y.
Ule do not have an adeguate frameuorK to evaluate the indirect and subtle effects, associated with the broader approach to assesing arts impacts. The public and the private sector needs to taKe a holistic approach which includes an assessment of local cultural resources, programs, the sectors benefitted, condition of the staff households, and current dimensions of local and out-of-town audiences. This type of study provides implicit information that is particularily valuable for the advocacy of the arts and for the broad development of the arts in the economic development purposes.
While it is relatively easy to use a balance sheet to show how the arts positively affect the economic of a city, indirectly and directly, the burden of proof still remains that cultural and leisure activities help to achieve the guality of life goals that have been set by the governing body. One of the most utilized method of intregrating cultural centers into the economic development of the city is in historic preservation and museums. The restoration of old theaters, opera houses and performing halls are common in virtually every city in the United States. In addition to the restoration and revitalization of historical places and the core cities,
15


communities have begun to develop strategies to create cultural arts centers that uill attract people and business into a given area to serve as a focus of their c o mmu nity identity.
Traditionally, the arts have been considered part of the tourist industry. Whether or not the arts, as a primary reason, draw tourists is not clear, to visit the city, there is no doubt however that once in a city or an area, the arts Play an important part in the activities of the tourists. The focus tends to be on the sales to tourists rather than the impact of the arts activites on the attractiveness of the communities to firms households, an indirect effect. Yet at the same time, there is sufficient proof that in certain municipalities, such as Aspen, Creede, Telluride, and LarKSPur Colorado, that the arts play a large part in the attraction of tourists to the co mmu nity.
Te11ur ide CO.
Telluride each summer hosts a Bluegrass Festival drawing nationwide attention. In June, the Renaissiance Fair in LarKSPur tKes the particiapents and visitors bacK to King Henry VIII's England. These two events, along with the following draw hundreds of thousands to the small mountain communities.
16


Creede
Creede Reporatory Theatre, created in 1965 by the town's Jaycees, established as one of their goals the diversification of the economy and a theater as another attraction for tourists. By 1982, this theater was Mineral County's 2nd largest employer. Expenses in 1985 totaled .$196,213. of which 95% was spent locally. Direct spending was $715,200 from employment wages within the community itself. Estimated total economic impact; $1.7 million. Creede is a small rural town of 610 people, and is located in a depressed region.
Aspen CO
In Aspen,a study conducted by the council in summer 1982, indicated that the Aspen Film Festival, and Aspen Arts Festival, not the scenery, sports or recreation constituted the primary draw for tourists in the summer, with sKiing as the ma.ior draw for the winter months.
The Center for Fub1ic-Private Sector Cooperation at the University of Colorado at Denver, determinedthe economic impact on Colorado by the arts at approximately $120 million. Arts, obviously, constitute a large business in Colorado, even though they are essentially small business operations.
Both the Public and the private sector must have the perspective which view art groups as local businesses that
17


provide .iobs directly and also provide benefits to other
business with which the arts do business (the indirect effects or the multiplier effect) that deals with the recirculation of dollars within the community.
Jobs, with the provision of income are in turn spent to purchase other goods and services within the local community. Inaddition to the initial revenue for the arts, indirect expenditures went to the resturants retail shops, qasoine. qaraqes lodqinq and child care.
Another effect of the arts is not so much in the direct expenditures within a local community, establishing and/or espandinq their economic development proqrams, as in the indirect effects on the economy of a co mmu n i t y by improving the attractivenes of the city and the surroundinq areas.
Arts do contribute a substantial sum to the economy as demonsrated by the Economic Impact report but in the overview of the cocmmunity they remain a small business, playinq a part of an emerqinq service base, servinq as a maqnet for new businesses and residential opportunities.
In recent years, the arquement for the arts activities is that they prompt economic effects which benefit the entire community. It is important in view of the restructurinq of qovernment financinq due to the chanqes and the uncertainty of Federal Fundinq and as the ability to provide even basic services, that the qoverning
18


bodies recognize the direct and indirect impacts of the arts on the community.
Because o-f the competition with standard city services, arts have had to show the need to exist thru the proving of the economic viability and the amount dollars they add to the community. Economic impact studies demonstrates how money flows between the arts and the local area and are an enhancement to the city rather than a drain on the city. These impact studies show direct economic benefits related to the first round of spending after a dollar is introduced into the spending cycle. Direct benefits include the creation of .iobs, and to business with the community for related expenses in.
Indirect benefits include the spin-off business and more intangible unmeasureab1e aspects of improvement of community identity and image.
The arts can be expected to complement economic development and community revitalization efforts. The arts can be planned to play a strategic role in the influencing of local economic development by affecting the behavior households and firms. While, it is difficult to attribute certain municipal tax revenues to a particular tax group, regional economists argue that the arts industry is not a basic industry, that which produces an export product to be sold outside of the local bounderies. They continue their agruement that a
19


reduction in the arts would result in the loss of local income, as the arts act as a non-basic industry.
Depending on which definition is used for export, this may or may not be true. However, in the ma.iority of areas, arts are traditionally considered in tourism revenues. A community can looK at the arts in the same manner, nonresidents come to use the arts facilities. If the amount of non-residents which use the art amenities of a city are equal to or greater than the use by residents, the arts may be defined as a basic industry.
In evaluating the economic impact of the arts, one may taKe two courses. The first being the conventionalist, which looKs primarily at the monetarial affect on the community. There are some limitations on studies of this type in that it does not accurately measure the psychological effects of the arts on the community, on family life and community development. It also tends to create a value Judgement, based on dollars, between businesses. For example, if a .iunK yard contributes more dollars to a community, but is an ear, eye, and nose-sore than a cultural arts center, uhixh should be supported by the council and community. Additionally, different types of multipliers are used to estimate the economic impact will vary between the sectors of the community. Also the cummulative impact of the circulation of income varies, depending on how many
20
1


dollars are spent on locally produced instead of imported


USING ARTS IN ECONOMIC DEVELOPMENT
There are several ways the governing body and taKe an advocacy role in the advancement of the arts uithin the city. A beginning step is thru the establishment of a public arts commission, cultural affairs office, or independent public authority, with taxing authority.
These bodies are able to have the responsibility to conduct an inventory/needs assessment and the development of the cultural plan for the community, methods of financinq and the avai1iabi1ity for technical assistance in proqramminq, planninq, promotion and etc.
Should there be an existinq aqency whether pulbic or private, the council can desiqnate that entity as the official arts aqency. Another alternative is to contract with existinq private arts council for proqramminq and proqramminq.
Local qovernment could build or refurbish buildings for the arts as arts/commun ity facilities, as an additional support for the Cultural Arts.
Additional ways that the public sector can support the arts in non-finaneial ways:
design competitions in landscapinq, public buildings and etc.
hire or help to hire artists to design the facility
22


encouraqe public schools parKs and liberies to
undertaKe arts proqramminq -for the community and assist with the budqet
involve the arts in dealinq with the anticipated qrouth to help Keep the community's identity indiviual
An advancinq technique is to use a pub 1ic-private partnership where a neqotiated contract with specified responsib1 ities are indicated. Many communities are beqinninq to utilize this techiques as a way to achieve a qoal that will benefit both sectors.
Financial support must be qiven to the arts councils in qrants or as an item in the city budqet to assist with the operatinq and adminstrat ion expenses. Provision of technical assistance can also come from the city and business orqanizations.
Revenues to support expenses can come from several sources, such as earmarKed funds from the lodqinq tax. special district taxes. Even thouqh Federal Funds are declininq, the arts concil or the qoverninq body needs to investiqate the use of qrants to support proqramminq. Formulation of the plan must be based on the assessment of local need and carefully conceived plans as part of the economic development plan may include the ob.iectives of devlopinq a competative climate, for the lurinq of new or expandinq business. Art activites may nelp to create a climate in which the decision to locate of remain as
£3


alternative to relocation viewed as an investment. Firms
which employ high highly trained, educated and moble personnel are interested in the quality o-f life -factors of a city in which they are are studyinq -for expansion or location. Cultural Policy Institute's research indicates that the arts lay a role aonq with other community variables in developinq that positive quality o-f life.
When the objectives are expressed in terms of economic outcomes, retention and attraction of households and firms or- in terms of satisfaction dimensions thought to include behaviors relevant to the economic development process. Cultural activities are as strateqical1y helpful for the broad ranqe of objectives intended to enhance a communjtys positioninq the competition for investment dollars and business activity.
Communities are in greater number utilizinq Cultural Art Centers in the development of qrowth and economics of their city. Elements in the non-economic quality of urban life include the arts of all types, alonq with parks, recreation programs, museums and more play a part inconstructinq the intangible definition of quality of life.
For the most part, economic development strategies tend to focus on the number of new jobs that will be created by the development. In addition, development needs to establish as goals the ability to:
£4


Encourage people to come to the dountoun or the
targeted area tor uorK and leisure activities.
Attract tourists to the city and encourage them to stay tor vacation, business and meeting.
Establish residential areas near and around the downtoun/targeted area.
Encourage and develop ottices and other commercial uses with in the dountoun area and the surrounding area.
In short to create a multi-use. mu 11i-dimensional tocus tor the city and the citizens ot the city and the areas surrounding the targeted area.
Cultural Policy Institute research has tound that economic development programs which have included the arts have tocused on three broad goals:
A. Enhance the impact and the use ot ongoing arts programs through tour pacKages. enhanced promotion and related strategies.
B. Create special promotions, especially testivals, as tools tor creating images and drawing attention to the downtown or targeted neighborhoods.
C. Utilize adaptive re-use and new constructin to develop needed cultural tacilities that also contribute to specitic revitalzation strategies.
An Economic Development Plan is a strategic plan to guide the growth o-f the city in the revenues. A brief outline will briefly include:
1. The determination of which marKet. on a large scale the the municipality wishes to participate in. This is based on the cities location, avail iable resources and marKet.
Goals and Objectives are established that are measureable in


time and product or service.
£. An assessment of resources and needs for marKet desired and an an analysis of the labor market needs in terms of employer need and non-uorK hour expectations and needs. (This is where the assessment of cultural facilities is included. Other elements are education, recreation, shopping, and etc.)
3. Determination of where the city fits in the picture and the weaKnessess and strengths of the city.
4. Establishment of a Plan of actions needed to reach goals and objectives. Evaluations methods and alternatives will be included in this step.
Each step includes a subset of measureable goals and objectives, and an evaluation process. The primary focus of the labor market analysis will show what Cultural Arts are needed, or inadeguate. It is important that the study should be across the board in order to take into consideration all income and education levels. In addition, a "loop" should be built into each stage of the Plan to create an on-going, self-perpetuating plan.
28


FINANCING TOOLS FOR THE ARTS
After the city has detemined the needs and resources for the non-uorKinq hours, the next step is to figure out how to pay for the upfront costs and additional costs till the facility becomes se1f-supportinq. Financinq techniques can follow the normal route of bonds and taxes, but there is also the opportunity to develop a pub 1ic-private partnership to facilitate the development of Cultural Arts. A review of some financinq techniques follow. It is not totally inclusive andeach community must determine what is the most efficient and effective for their use.
Standard Financinq Techniques:
Tax Increment Financinq: One technique is the issuance of tax increment bonds. This technique divide property tax payments at the unimproved level, with the additional assessment after improvements earmarked for the repayment of the bonds. Monies from the bonds pay for crucial public improvements before and while the private investment is being put in place. After the bonds have been retired, taxes return in full to the designated taxing authorities.
Industrial Revenue Bonds <1RB> Even though IRBs have a tendency to be over utilized they still remain as a ma.ior financinq technique. Changes in the tax exempt status of IRB
2?


and other municipal bonds may have a limiting effect on their
use.
Municipal Bonds
Tax Abatement for non-profit organizations.
Switching of tax liability from property tax to the business income.
Real Estate Transfer Tax which gives an allowance for up to a specified dollar figure of the property tax to be earmared as a source of funding for the arts.
Special Assessment Districts: With the establishment of Special Assessment District, the taxes on the use of the center, ie seat tax, lodging taxes etc., are directed toward to repayment of bonds issued for the improvements in special d istr ict.
Other funding mechanisms and development incentives which deal directly with land acguisition and upfront costs include sale of air rights, transfer of development rights, zoning incentives, dedication of land, density variances. In addition, the governing body can provide assistance in land assemblege and aguisition of lower term financing, through revolving loan funds and/or loan pools. They may also sponser fund raising events and accept gifts.
Federal funds incude Econoomic Development Adminstrat ions, Public WorKs Programs, Community Development Action Grants, UDAG monies.
28


PUBLIC-PRIVATE PARTNERSHIPS
A technique that is beqinninq to become popular and an effective economic development tool is a business partnership between the public and the private sector. Since the qoal of a healthy economy is to provide employment and income, income that permits residents to be self-sufficient. "A healthy economic base generates private profits and public revenues to support public and private efforts to protect and enhance the quality of life" < 7)
Pub 1ic-Private partnerships have a wide array of opportunities, although it is rare that developments are undertaKen without the cooperation of the local government. Business needs to commit time, effort and resources to the future of the city. Economic development actions of private business extend beyond normal transactions of the firm. Negotiation and cooperation are the Keys to public-private partnerships, They include goal setting, protect formulation and establishment of resources commitment, responsibilities and implementation. Implementation is generally undertaKen in cooperation with the public entity. Cooperation allows for the mutual benefits of the public and private sectors. Partnerships provide a feeling of stability by reducing uncertainly through negotiations and contractual arrangements.
Private sector involvement are basically to provide certain capital investments, which could include building,
29


financing and ownership of facilities which are a part of the
protect. Also some front-end investments and physical improvements such as in infrastructure, plazas, design amenities, financing for long term, and the technical expertise the public sector may be have readily available.
A feu examples of Cultural Art Centers that are results of Public Private Partnerships facilitations are following:
Reunion Center, Dallas, Texas
Public responsibility: Hotel Theme tower. Restored Union Terminal Building. The development includes a sports arena, structured parKing. The city provided utilities, roads, and purchase of 33 acres of land.
Public Financing Structure: Pub 1ic-Revenue Bonds,
Sports arena seat options.
Private responsib1ity: Hotel tower, some roads, some utilities, 28 acres of land
Private Financing Structure: Eguity Insurance and First National BanK of Dallas
Steamboat Springs, CO.
In the spirit of partnership with the citizens, the city government and other organizations in order to stimulate year-round economy, and to broaden offerings to the community, co-sponser a Children's Film Festival. Other activities offer college credit thru an agreement with the private
30


institution. Colorado Mountain College, and the city in return gives exhibit space and work space for the students. This community also sponsers a craft fair, providing of free booth space for a percentage of the sales.
Gree1ey COs
The Greeley City Council formed a non-profit organization. Northern Colorado Foundation for the Arts.
Their goal is to raise $4 million privately and then finance the rest though other mechinisms available. The Foundation has also contracted with a fund-raising firm.
Center includes civic auditorium, ($8.9 mill), a hotel-convention center <$10.5 million) pedistiran plaza, senior citizen center and a recreation center. Funding includes bonds for $8 million. Land acquisition was financed thru the Greely Urban Renewal Authority. Other monies came from a $700.00 federal loan, and a $500,000 tax financing plan form the componets of the GURA involvement.
Council agreed to a 10 year lease of the center's 3rd floor for $500,000 from the developer. No payments would go towards the debt until the protect turns a profit. At that time 30'/. of the Profits would be earmarked to repay the debt.
Undertaken as part of the revitalization of the downtown area and part of the economic development program, the center is the focus as a p1 ace-spec ific revitalization effort. Even though it was developed as a targeted area, as opposed to an economic devlopment plan for the entire region, it will, in
31


time affect the economic qrowth for the region as a whole. Organizations involved include the city and the Greely Dowtown Development Corporation.
Town Square. St. Paul. MN
Public: The governing body, prepared design and development controls, indoor parK public walKways, sKyways, vacated a ma.ior downtown steet, granted building permits, negotiated with tenants to assure them of the city's c o mm i 11 me n t.
Funding: IRB sold by the ST. Paul Authority to initiate contruction of an underground parKinq ramp, along with grants from the federal govern me nt.
Private committments: Build non-public structure of the square obtaining any necessary tenant committments.
Financing included Private mortgage monies from Private institutions and other investments by the developers.
Stouffer Hotel Complex: Dayton Ohio
The public sector assembled the the Dayton City Wide Development Corportion 32


partnership units. Other public responsibilities include subordinated leases with purchase options and direct investments by the Stouffer Affiliate, and purchase of land at cost with interest subsidies, and loans. Other private agreements include air-tiqht leases and public improvements.
Public-Private Partnerships are best facilitated by formal development corporations in the form of a city-line agency, quasi-public corporations or independent non-profit corporations, or private Industry councils, etc. Serving public purposes with representations on the board from the public and private sectors, the partnerships have relative independence from the local government and still retain a degree of public accountab1i1ity.
Advantages of Private Development Corporations:
Structural independence from the local government.
Expansions of public powers in the sense that private corporations can perform functions which are in the public interest but local governments can not achieve as a municipal corporation. The limitations of governments due to restrictions of state or local laws may hamper real estate acquisition and development, and the ability to maKe loan and equity investments
Insulation or at least decreasing risK
Privacy of negotiations
Coordination of public and private resources and the pacKaqinq of the resources in capital, materials and
33


expertise
Financial independence from the city budget Responsibility for the collection of revenue, payment of expenses and the accounting for the expenditures is taKen care of by the corporation.
Employment of professional expertise, thru consultation or contractual agreements in industrial development and marKeting specialists, real eestate agents, financial experts or lawyers independent of civil service restrictions.
Continuous access to public and private decision maKers. Allow for communication between the public and private sector and the input of the community
The available methods for a community to be able support the arts and include them in the economic development Plan are numerous. In the following sections, various elements of Cultural Arts Centers will be examined from surveys of Centers across the United States. The most common elements of fianancing, uses of the centers and the community development technigues will be determined and discussed.
34


DATA ANALYSIS
In order to collect data relating to the expenses, revenues and monies used -for the purchase of land and buildings etc., surveys were developed to send Cultural Arts Centers uhich meet the criteria of 50,608 population, suburban areas that were multi-use in nature. Sources established for possible study were Civitex a resource of the National Municipal League, National Conference of State Legislatures and the National Conference for the Arts. From the information returned, it became very apparent that the criteria established did not yield a large sample to draw from. Information was recieved on approximately 58 centers, and of these, I was able to send surveys to only £9. Of the surveys sent, 8 were returned giving a 27% return rate. In addition, of the 8 returned, only 5 were able to be used in the survey. A copy of the survey and cover letter is contained in the appendix.
Of the 3 unable to be used, Horton Plaza in San Diego, was not a cultural center, but a commercial center with movie theaters for patrons. Dallas Arts District, not yet open, did not send any financial information, but did send the complete plan. The Arvada Center sent a copy of the expense and revenues but no information on surrounding land use, center's activites, employees or other financial agreements. The Director was unable to help with the information as there had
35


iust been a change in adminstration.
The survey defined local as being within a legal boundery. It did not asK about the location of other cultural facilities in areas nearby as the study ended up limited itself to a population size of 50,000 to 150,000, and it was assumed that the majority of the responses would be from moderate size cities. In researching suburban centers it was found that the core city usually had a large facility which served the metropolitan area.. While initally the intent of the research was to focus primarily on suburban areas, it was found that the areas listed in data resource banK were not necessarily a part of a large metropolitan area and that information on any suburban cultural centers was not availiable.
Therefore one of the limitations of the data results is the placement of the center and the term non-local for the survey. Some locations may have been located in a rural type setting, where non-local would not have applied in the same manner as an urban-suburban situation. Further study would need to be done in order to establish an exact description of the setting of centers and the surrounding urbanized or rural areas. In addition, areas may be urban but to a degree isolated in that the city may be the "core" of a larger area that is rural in nature.
The following centers responded to the survey and were used in the analysis. Quinenberg Valley Council for the Arts, MA, Rosewood Art Center, Kettering OH, Scottsdale Center for the Arts, Scottsdale AZ. W. NebrasKa Center for the Arts, Scottsbluff, KB, PiKes PeaK Center for the Arts, Colorado Qnr innc m 3G


EXPENSES, REVENUES, EMPLOYMENT
The survey sought to determine an idea o-f what would be the general expenses for a cultural center. It was anticipated that operating expenses would be similiar in nature to any business with salaries and wages constituting the largest portion and this was borne out. The next step was to determine if the expenses were incurred to local or non-local accounts.
As indicated in Charts la and lb, almost two-thirds, 61%,of local expenses were spent on salaries and wages while non-local paychecKs were 11%. Local overhead expenses were also greater that the non-local, 18% and 12% respectively. However, the remaining non-local expenses were category by category greater than local expenditures.
When examining the operating revenues for the center, a mixed bag of results were opened. Charts £a and 2b demonstrate the breakdown of revenue sources from operation of the center.
Rental of the centers facilities constitute the largest source of revenue as do parking revenues and reimburese wages from local sources 32% and 26%, accordingly. The two largest sources of revenues from non-local sources came from fundraising, 26%, and membership, 24%, while rentals provide 21% of the revenues. Surprisingly, local membership only constituted 5% of the local resources.
As indicated in the balance sheet. Table A, none of the studied centers were self-supporting with operating revenues only. All centers recieved monies from sources other that
37


operating revenues. On the whole, centers surveyed depended heavily on local resources for additional revenues. These revenues are from taxes levied by the various local government, supplying 74% of the non-operat ional revenues. Two centers have no local taxes while one depends entirely upon local revenues. Four of the centers recieve funding from Art Counci1s/Foundations. Accounting for 25% of the other revenue and public monies, it is obvious the supporting role Arts Councils and Foundations play in the support of the Cultural Arts. Federal and State agencies only provide 1% of the funding in the form of grants, primarily used for programing. See table for a breakdown of other revenues and percentages of all centers. Table shows the monies and the use of the
mo n i e s .
EMPLOYMENT
In beginning this paper, I had expected to find that the ma.ioritv of employes would be from the local area. However, the opposite is true. Of local employees, 60 were employed full-time and part-time. Nonlocal employees constitued 377 of 437 total workers. A total of $1,163,657 was spent of salaries and wages, with $35,000 going to the part-time employes, for an take home of $92.83 apiece. This seems unlikely, so it is assumed that the vast majority of the part-time jobs are
38


volentary in nature and remain unpaid. However, due to the number of part-time employees the centers would probably be hard pressed to operate if they were without this help.
Table D compares the total expenditures, revenues from operation of the center and employment between local and nonlocal on actual expenditures and percentage analysis, respective.
Table E shows breaKdown of local and nonlocal employees per center. Chart 3 demonstrates the relationship betwee the local and nonlocal salaries and wages, in full and part-time emp 1 oyment. As this chart demonstrates 977 of the Salaries is spent locally while 767. of the Fulltime and 917. of the Part-time .iobs are in the nonlocal sector.
In determining the economic impact of the arts on the communities a formula has been developed by Dr. Cwi. However, the variable include real estate value for before and after the center would be built, and other employment and income factors not researched in the survey. Therefore only general assumptions can be made from the imformation gathered from the employment section. A "short hand" technigue, from Canada, is available, developed to provide non-professional a guicK and easy method to determine the economic impact of the arts on the community. But one of the multipliers is based on a Gross National Expenditure. This expenditure unfortunately is based on the Canadian economy with no information on how to determine the economic multiplier for the US national expenditure and could be the sub.iect of further research to determine the
39
necessary variables


MEMBERSHIP
Membership did not have as much importance as initially anticipated. Only Quinenberq Valley Art Center had a siqnificant membership. It uas also surprisinq to -find that that the local membership were qreater than non-local memberships, when the revenue f iqures indicate that the nonlocal membership uas qreater than local membership. Of local revenues membership constituted 5'/.ir\ contreast to S4^ ot nonlocal revenues in the amount $5,060. Table F qives the membership breaKdoun ot the centers.
LAND ACQUISITION, CAPITOL IMPROVEMENTS, EQUIPMENT AND FURNISHINGS
In four cases, financinq for land acquisition as the land itself uas provided by local qovernment. In only one case, donations of $20,000 provided the land. Scottsdale Art Center's land uas financed by $6.4 million in municipal bonds. Roseuood Art Center is housed in an elementrv school ouned and leased at $1 per year from the Ketterinq Ohio Board of Education. PKes PeaK Center, in Colorado Sprinqs, CO is built
40


on a former El Paso County parKinq lot.
Capitol Improvements on the other hand, have tended to in large supported by private donation and Grants. A total of $7.58 million came from Private gifts and donations with 6.3 million of this from grants and Federal Revenue Sharing. Municipal Bonds were utilized in only one of the centers as were local taxes, with the type of taxing not identified. One center was able to secure an Urban Development Action Grant Again in Equipment and Furnishing, Private Donations/Gifts from indiviual and municipal groups played a large role. However, even though amounts were not always indicated primarty financing came thru the municipal budget via local taxes. The survey did not inquire the type of taxes levied for the support of the center.
Tables G thru H indicates the revenues sources for land acquisition, capitol improvement and equipment and furnishings. No tax incentives or loans, as well as Pub 1ic-Private Partnerships were used by any center for any stage of the building of the cultural center. No reason for this is Known, unless the actual dollar loss of a center is great enough than additional risK is not desired.
i
41


SURROUNDING LAND USE
O-f the qeneral cateqories -for surroundinq land uses the most prevelant were offices and public buildinqs, with semi-public buildinqs second-p1 ace. No center was located near commercial uses and only limited locations near residential areas. It seems odd that since most cultural activities iKe place in the eveninq hours that the locations are away from the areas that people flocK to in the veninq, HOME. One Plausible explanation would be the desire of the city to draw residents bacK to e business center, as in the case of Scottsdale AZ., durinq non-business hours.
Zoninq for vacant land around the centers indicated that residential was beinq planned for two of the centers as were commercial and office. Table J demonstrates the land use around the centers.
CENTER ACTIVITES
Centers useaqe varied, most liKely reflectinq the population it served. For example, while arts shows constituted 37% of the total uses, the reported fiqures indicated a double* use of the center. Art shows/exhibits are most liKely an on-qoinq event with other use taKinq place
42


simultaneously. However, the research does indicate a popularity of use. Theater, Music, Art and Education, were activites in four out of five centers, while dance and rental space was used in 3 of the five centers. No activity was present in all five of the centers.
Tables K show the center's activities with revenues and the center activites by useaqe. With chart D showing a percentage comparison of activities. Education was the largest revenue source <24'/.) followed closely by Dance (20/0, Rental (18>0, Mus ic/Symphony <17/0, and Theater <15/0. While Art Shows consituted the largest useaqe of the centers they also consituted the smallest amount of revenue <6/0. See Table L for the breaKdown of revenues and activities.
COMMUNITY DEVELOPMENT
Rosewood is part of the ParKs and Recreaation Division within the City of Kettering, OH. The center sponsered open houses, and use bulK mailings, press releases and notices to Keep the public informed on the activites. No information was given on how the center was started.
Scottsdale, in the early 1360's became concerned with the deterioration of the city center and with the support of the citizens approved the construction of the Civic Center as part
43


of a revitalization effort of two blighted areas. The Civic Center was intentionally placed in the revitalization area to encourage private owners to redevelop. In reserching the financing for the redevelopment, Scottsdale Scottsdale found that by using the city's investment in the Civic Center for a Neighborhood Development Program. Applications to the Department of Housing and Urban Development and the Department of Labor were approved resulting in $7.3 million of grants for the redevelopment of blighted areas, single family residences and other development.
In addition to the redevelopment, pulbi and private partnerships were established to build a pedistrian shopping mall which n turn served as the catalyse for the entire redevelopment program. ParKing structures were included to deal with the increased parKing demands.
Studies conducted indicated that an arts complex would draw people downtown to the Civic Center. It was built to be a multi-use facility. Completing the complex was a Hote1/Convent ion Center Resturants and Retai1/Office facilities and a Police-City Court building. No breaKdown on the financial agreement between the public and private sectors were given.
Rosewood and Scottsdale were the only two centers to respond to this section of the survey. In both cases the indication is that the city tooK the lead in establishing the
center along with being the base of support


SUMMERY
In the expense and revenue categories the largest percentage was spent locally 86% and 97%, respective 11y Nonlocal expenditures were 14% and Revenues 26%. This indicates that the locale which houses the center benefits the most.
When examining the split of employees, I found that non-local employees provided the greatest amount of support in both full time 76% and part-time 91%. This would tend to lead one to believe that salaries and wanes would follow a simi liar split. Yet, the opposite turned out to be true with $1,128,657 <97%) spent on local positions, and $35,000 went to part-time positions.
While part-time employees form the majority of the labor, the dollars earned are in reality Kept in the locale of the center, reflecting the same pattern of Expenses and Revenues.
The difference between the local and non-local Jobs and pay can be explained in the a substantial number of the part-time positions must be volentarv. Before volentarv Jobs are discountd, since they do not contribute dollars directly to the community, their value for Job-training must be taKen into consideration. Volenteers are a valuable indirect benefit to the community.
Without an adequate multiplier to determine the impact it is difficult to detemine an actual amount of dollar impact.
45


However it can be detemined that the centers are added to the
economiy thru .iobs and purchase o-f qoods and services. Had the centers not been there, whether the money would have been spent within the locale on other recreation and leisure time activities in unKnoun .
To summarize the findings, the overwhelming portion ot revenue and expenses were from the local area. Only in employment did the non-local area .iump ahead and this was in the part-time .iobs which were most liKelv volenteer positions.
Financing for land acquisition, capitol improvements and equipment and furnishings were heavily dependent on local funding with the execention of one center, which was able to utilize Federal Redevelopment monies.
Center's Activites were varied and most liKely refelected the audience being served. Education and Dance formed the greatest revenue supplies.
No correlation could be drawn between land use and center activity. Land Use tend to lean toward the worKinq hour uses primarily with public buildings and offices.
46


CHART la
CHART lb


CHART 2a
CO
Di ni nq Membership Education ,Retai1 Advertising,
Commission
PERCENTAGES OF LOCAL REVENUES
CHART 2b
PERCENTAGES OF NONLOCAL REVENUES


PERCENTAGE
SALARIES
&
WAGES
FULLTIME
PART-TIME
Cfl
T) >
w f
f 50 >
o n 50
n w M
> z w
-3 cn
>
i M
z w
o n s
z o 0
t-1 s t-*
o o
o > k;
> S
H w
cn z
O -3
Z
o
IC
3=>
73
t
CO


PERCENTAGE
cn
G>
o o
N>
o
THEATER
MUSIC
DANCE
ART
EDUCATION
N>
ro
ro
LO
o
o
< 1_______________________________!_____________________________L
OJ
U1
O
CJ\
o
o
00
o
O
J______________1______________L_
O
O
O
w
2:
W
c
CO
M
CO
RENTALS
PERCENTAGE COMPARISON


TABLE A BALANCE SHEET
CULTURAL CENTER OPERATING REVENUES OPERATING EXPENSES
Qu i nenberg Valley $76,790 124,000
Rosewood Art $37,900 123,000
Scottsdale Art $102,800 1,373,667
W. Nebraska Art $43,500 91,500
Pikes Peak Center $344, 274 464,414
CI1
OPERATING PROFIT + ADDITIONAL REVENUE CENTER = PROFIT
<47,030> 43,000 < 4,030 >
<85,100> 99,230 14,130
<1 27 0,86 7> 1,935,230 664,363
< 47,500> 35,300 < 12,200 >
<120,140> 169,239 49,099


TABLE B
OTHER REVENUES AND PUBLIC
CULTURAL CENTER
ART COUNCIL
FOUNDATION FEDERAL ASSOCIATION
ru
Quinenberg Valley Rosewood Art Center Scottsdale Center W. Nebraska Arts Pi kes Peak Center Total Percent
$15,000
12,000
500,000
35,300
$562,300
24%
1,500
$1,500 5%
MONIES
STATE LOCAL 26,500
$87,230
1,435,230
169,239
$26,500 $1,691,699
1% 74.5%
TOTAL
$43,000
99,230
1,935,230
35,300
169,239
$2,281,993
100%


TABLE C
CULTURE CENTER PURPOSE and OTHER REVENUE AND SOURCE
Quinenberg Valley Foundation State State Federal
Rosewood Art Center Counci 1 City Budget
Scottsda1e Center City Budget Grant
on ,;o W. Nebraska Arts Council Grant
Pikes Peak Center County
SOURCE
PUBLIC MONIES
PURPOSE AMOUNT TOTAL
Admi nstrati on $15,000
General 12,000
Project 14,000
Project 1 500 $43,000
General $12,000
General 87,230 $99,230
Operati ng $1,435,230
P rog ram 500,000 $1,935,230
Operati ng $300,000
Programs 53,000 $35,300
Operating $169,239
$169,239


TABLE D SUMMERY
EXPENSES, REVENUE, EMPLOYMENT LOCAL NONLOCAL
LOCAL NONLOCAL
EXPENSES $1,852,667 $308,46
PERCENT OF EXPENSES 86% 14%
REVENUES $584,654 $21,150
9 7% 3%
EMPLOYMENT
FULLTIME 32 100
Percent of emp. 24% 7 6%
PART-TIME 28 277
Percent of emp. 9% 91%
TABLE E
EMPLOYMENT LOCAL NONLOCAL
FULL TIME PART TIME
CULTURAL CENTER LOCAL NONLOCAL LOCAL NONLOCAL
Quinenberg Valley 1 0 1 274
Rosewood Art Center 1 0 3 -
Scottsdale Center 22 0 22 -
W. Nebraska Arts 3 0 2 3
Pikes Peak Center 5 100 + 0 _
Total Total 32 100 + 28 277
54


CULTURAL CENTER
Quinenberg Valley Rosewood Art Scottsdale Center W. Nebraska Arts Pikes Peak Center
table f
MEMBERSHIP TYPE AND PERCENT
I ND I V I UAL FAMILY ADVOCATE
800 2,000 12,000
No Members hips No Membershi ps No Breakdown Given No membership
ui
cn
C0MPLIMENTRY PERCENT
LOCAL NONLOCAL
70
100%
7 5%
2 5%


TABLE G
LAND ACQUISITION FINANCING
GRANTS LOANS TAX INCENTIVES BONDS DONATIONS OTHER
CULTURAL CENTER
Quinenberg Valley
Rosewood Art Center
Scottsdale Center
W. Nebraska Arts Pikes Peak Center
Total
$20,000 yes, no
amount given
Housed in an Elementry School, and leased from Kettring Board of Education, Housing expenses are part of the City of Kettering Parks and Recreation Budget
Includes Capitol : Improvements 6.4 million
Interiors and parking structure
Not answered
Land Owned by El Paso County, former Parking Lot
$6.4 million $20,000
cn
0)


TABLE H CAPITOL IMPROVEMENTS FINANCING
CULTURAL CENTER GRANTS LOANS TAX INCENTIVES BONDS DONATIONS OTHER TAXES
Quinenberg Valley $60'*000 (UDAG) $200,000 $30,000 (CETA)
Rosewood Art Center $8,000
Scottsdale Center' Financing included in Municipal Bonds under Land Acquisition
W. Nebraska Arts $30,000 $30,000 $30,000 (grants & loans)
Pikes Peak Center $7.1 Mill $6.3 Mill (Fed. Revenue Sharing)
Total $30,000$7.33 million $6.36"mill $8,000
Ul
-J


TABLE I
CULTURAL CENTERS Quinenberg Valley
Rosewood Art Center Scottsdale Center W. Nebraska Arts
EQUIPMENT & FURNISHINGS FINANCING
GRANTS LOANS TAX INCENTIVES BONDS DONATIONS OTHER TAXES
$15,000 $25,000
(municipal groups)
Financed through City Budget Financed through City Budget
$15,000
$200,000
Pikes Peak Center Total
$230,000
$25,000


RESIDENTIAL RESIDENTIAL RESIDENTIAL
CULTURAL CENTER LOW DENSITY MED. DENSITY HItDENSITY
Quinenberg Valley
Rosewood Art
Scottsdale Center
W. Nebraska Arts
Pikes Peak
Total 1 1 1
cn
to
TABLE J
SURROUNDING LAND USE
OFFICE INDUSTRY PUBLIC QUASI COMMERCIAL ZONING FOR VACANT LAND
BUILDING PUBLIC Res off Comm U n known





3 1 3 2 0 2 1 1 1


| TABLE K
CENTER USEAGE by
ACTIVITY
QUINENBERG VALLEY 25% QUINENBERG VALLEY 4%
ROSEWOOD ART 0% ROSEWOOD ART 5%
SCOTTSDALE ART 24% SCOTTSDALE ART included in
W.NEBRASKA ART 2% W. NEBRASKA CENTER theater 1%
PIKES PEAK CENTER 20% PIKES PEAK CENTER 77%
THEATER MUSIC/SYMPHONY
QUINENBERG VALLEY 25%
ROSEWOOD ART 0%
SCOTTSDALE ART 24%
W. NEBRASKA CENTER 2%
PIKES PEAK CENTER 20%
DANCE
QUINENBERG VALLEY 5%
ROSEWOOD ART 90%
SCOTTSDALE CENTER 2%
W. NEBRASKA ART 15%
PIKES PEAK CENTER 0%
EDUCATION
QUINENBERG VALLEY 100%
ROSEWOOD ART 5%
SCOTTSDALE CENTER 3%
W. NEBRASKA ART 75%
PIKES PEAK CENTER 0%
ART
QUINENBERG VALLEY 15%
ROSEWOOD ART 0%
SCOTTSDALE CENTER 36%
W. NEBRASKA ART 6%
PIKES PEAK CENTER 0%
RENTALS
60


TABLE L
CENTER'S ACTIVITIES PERCENTAGE OF USE REVENUE
CULTURAL CENTER THEATER REVENUE THEATER PERCENT MUSIC REVENUE MUSIC PERCENT DANCE REVENUE DANCE PERCENT ART SHOW REVENUE ART PERCENT EDUCATION REVENUE EDUCATION PERCENT RENTAL REVENUE RENTAL PERCENT TOTAL PERCENTAGE
Quinenberg Valley S24001 25% 4% 5% .4 100% 5% 5% 15% OF USE* 154%
Rosewood Art Center 5% 5% $17,580 90% 100%
Scottsdale Center 24%2 3 4 3% 2% 36% 65%
W. Nebraska Arts $10,000 2% $3 ,000 1% $20,000 1% $6,000 75% $7,500 15% $18,192 6% 100%
Pikes Peak Center $3937 20% $15,157 77% $591 3%
Total for all centers $16,337 $18,157 $20,591 $6,000 $25,080 $18,192
Total Percentage
2 use for all centers 15% 17* 20%
1. Quinenberg also recieves a percentage of the Bos Office reciepts
2. Percentage includes music and dance
3. No Revenue figures given on Survey, Percentage figured from Box Office Commissions
4. No Amount Given- Consists of Commissions and Fees
Percentages do not add to 100% for Center Useage as some center "double"up of useage activity. Percents are rounded to the nearest whole


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CONCLUSION and GUI DEL IKES
As shown in the balance sheet, no center by itself is self-supporting. Why would a city underrtaKe the burden? In an interrview with Karen Lind, Economic Development for LaKewood, CO., the statement of James Rouse and Austin Kiplinger were reinforced. In the "big picture", a company who is looKing to locate will consider the cultural and recreationa amenities of the area beinq studied. Theweiqht that a center carries will bary between industrial sctors, county very low on some scales, such as a fabrication Plant, while hiqher for the Travel and Hotel industry. Ms. Lind also stated that a multi-use facility is more attractive is surrouded by multiple higher intensity uses .
Culture" is an important factor to all people. The definition will vary but all sorts contributes to the community. This paper finds that cultural Arts are by themselves not a direct economic development asset, but from the literature review and the surveys do serve the needs of the community. City's which are seeKinq to strengthen their services to their residents and their positive identity to a locating company needs to be aware of the role the Arts play psychologically and secondly financially. It is important to design a multi-use facility in a multi-use area. A city contemplating the use of a cultural center must be aware that
64


the center will need substantial help in meeting the expenses.
The choices available in land acquisition are varied and are liKely to have the greatest -flexibility. Techniques used in the purchase of land in the cities surveyed and reviewed.were:
Municipal bonds Lease
Use of Pub 1ic-owned land Revenue Bonds
Urban Renewal. Rev iti1ization Programs
Model Cities and Community Development Action Grants
Federal Loans, Secured Debt Financing
Seed Equity Financing Property Tax Exemptions
Economic Development Administration Funds
Pub 1 ic LlorKs
Choices in Capitol Improvements were more limited to municipal bonds and local taxes, as were the Equipment and Furnishings. In some cases, a lease-bacK option was given to the cultural center (Greeley, CO) and Rosewood Art Center.
The land use around the centers primarily is business and professional oriented, with the assumed purpose to bring people bacK to the business district, or Keep them there after normal worKinq hours. Unfortunately, this does not seen to be worKing as well as hoped for. Therefore another alternative which could be explored would be the benefit of higher residential density around or in con.iunctin with the building of a multi-
65


use facility. This would be particularity useful in areas targeted for redevelopment or revitalization. With the creation of a cultural arts center, a city would want to consider the mixed use development incorporaing residential, retail and professional serveces to afford the center the greatest exposure during worK and non-worK hours of the day.
The center should also have as great of a mix of activities going on as much of the time as possible.
The incorporation of a cultural center into a ecomoic development Plan needs to be one that is taKen as part of the strategic move, to enhance and increase the guality of life in a city. If it is a ioint venture by the public and the private sectors, the chances of success as a lessor drain on the city's budget are increased, since more people have "bought into" the development. Not only does a portion of the private sector have a financial interest in the center, but the public will be less liKely to percieve that this is a service "owed" to them by the governing body.
Cities are now facing the challenge of providing both the necessary services for the safety, health and welfare of the residents. In addition they are charged with the intangible aspects of the guality of life. If Planned for carefully and strategically, cultural arts can be used in the economic development strategy in redevelopment or rev iti1ization areas and as an indirect tool to enhance the guality of life.
Pub 1ic-Private partnerships are while not widely used, are
66


also an alternative that should be investigated by municipalities looking to incorporate cultural art centers in an economic development proaram. This must be carefully negotiated and does not promise that the center will be self-supportinq. However, utilization of public-private partnerships in a multi-use development effort would provide the qreastest chance at success for the use of a cultural center.
It short, in utilizinq the arts as part of the economic development program, the purpose is as a draw to an area being newly developed or revitalized and will most likely to achieve the qreatest amount of success with a multi-use facility both in activites and in surrounding land use. It is the collective total which provides the .iobs that is important to the expansion of the economy in a city.
6?


FOOTNOTES
1. Ewell, Maryo, "Arts in Our Community", Colorado Municipalities, November-December 1984, pq 5
2. deMille, Aqness remarks, to Conference on the Economic Impact of the Arts, pq. 5.
3. Shanahan, James, "Cultural and Economic Development, How Do They Come Toqether", pq. ?.
4. Cui David "Perspectives on the Economic Role of Arts and the Impact of Art Impact Studies". Conference o Economic Impact of the Arts, pq. 18.
5. Kiplinqer, Austin, remarks to Conference on the Economic Impact of the Arts, pq. £2.
6. Research and Policy Committee, Committee for Economic Development. "Public -Private Partnership, An Opportunity for Urban Communities", pq. 27.
the n the
88


RESOURCES
Center for Public Private Sector Cooperation "Economic Impact of the Arts in the State of Colorado", Graduate School of Public Affairs, University of Colorado at Denver, August 1983
Cornell School of Business and Public Administration, "The Arts in the American Economy", Report to Conference on the Economic Impact of the Arts, Graduate School of Business and Public Administration, Cornell University, May £7-28, 1881.
Cwi David, "Perspective on the Economic Role of the Arts and Art Impact Studies, Conference on the Economic Impact of the Arts, Cornell University, May 27-28, 1931
Cui David, The Role of the Arts in Urban Economic Development, Washington, D. C, : U.S. Economic Development Administration, 1331
deMille, Aqnes Report to Conference on the Economic Impact of the Arts, Graduate School of Business and Public Administration, Cornell University, May 27-28, 1981.
Euell, Maryo, "Arts in Our Communities", Colorado Municipalities, Noverriber -December 1334, pp5-30
69


RESOURCES Ccon't)
Kiplinqer, Austin H., Report to Conference on the Economic Impact of the Arts, Graduate School of Business and Public Administration, Cornell University, May £7-28, 1981.
Kyros Peter N. Jr., Report to Conference on the Economic Impact of the Arts, Graduate School of Business and Public Administration, Cornell University, May £7-28, 1931.
National Assembly of Community arts Agencies, The Arts TalK Economics, December 1980
Radich, Anthony J. and Nagel, Roberta Lee, "State Art Appropriations, Arts Policy, and State Legislatures", Arts, Tourism and Cultural Resources Committee of the National Conference of State Legislatures, Virginia, November 1985
Research and Evaluation, Canada Council, "A Short-Hand Technigues for Estimating the Economic Impact of the Performing Arts", March 1982
Research and Policy Committee for Economic Development "Pub 1ic-Private Partnership. An Opportunity for Urban Communities.", February, 1982
70


RESOURCES Ccont)
RocKy Mountain f'leus
April 17, 1986, pq 12
Shanahan, James L.
Do They Come Toqethe Impact of the Arts, Administration, Corn
"Cultur r?" Re Graduat ell Uni
al and Economic Development, Hou port to Conference on the Economic e School of Business and Public versitv. May 27-28, 1981.
71