Business Plan Executive Summary
The Staunton Performing Arts Center will be located at the historic Dixie Theatre, which dates from 1912 and currently operates as a four-plex cinema. A guarantor for the New Dixie Theatre, Inc., a non-profit corporation that intends to renovate and restore the theatre, acquired it in September 2000. The original business planning process was undertaken during the months of August, September and October 2001. Janis Barlow directed the planning process with the advice and assistance of Stephen Barefoot, Programming Consultant and Kevin Harper, Research Associate. It was updated in August 2004.
A. NEEDS ASSESSMENT
The following have been identified as community “needs:”
· A regional mid-sized performance center that will attract national artists
· A state-of-the-art concert hall
· A showcase for independent and classic films and film festivals in Staunton to serve the broadest possible audience for the lively arts
· A venue for local performers to enhance their visibility, production values and audience services
· A venue for contemporary performing arts to complement the Blackfriars
· A critical mass of historic and performing arts attractions to consolidate Staunton as a destination and extend the stay of the cultural tourist
· Another catalyst to draw people into Staunton between noon and midnight for the continuing economic revitalization the City
· A town meeting space for civic and business functions
The historic Dixie Theater in downtown Staunton is seen as an opportunity to meet these needs when it is rehabilitated as a center for the performing arts.
Although it is beyond the scope of this assignment to undertake an extensive needs analysis, the project may be justified on the basis that it will:
· Respond to needs identified
· Encourage trade and economic resiliency
· Attract individual and corporate relocation
· Promote community empathy and harmony
· Become a permanent community asset - theatres are not likely to relocate
B. MARKET REVIEW
· Audience Base
For this theatre, on any given Thursday, Friday or Saturday night, the pool of potential ticket buyers will be 3% of Augusta County's population of 109,500 or 3,285. This is a sufficient pool to sustain almost any one-night stand, ten performances in a 300-seat venue or six performances in a 500-seat venue.
· Affinity for the Arts
The aging female-dominated population is a favorable indicator for attendance. The presence of a college and private arts-oriented schools are also favorable indicators. Support for theatre has been demonstrated by the successful fund raising campaign for the Blackfriars. The number of art galleries in downtown Staunton also indicates a significant arts-oriented community.
· Supply of Facilities
The inventory of purpose-built facilities is limited to a high school and an Elizabethan playhouse designed for Shenandoah Shakespeare. The Blackfriars Playhouse is beautifully designed and historically authentic and may also be used for modest concerts, but its design limits its use for contemporary performances.
· Demand by User Groups
About 40 potential local performing arts user groups have been identified. Fairly detailed surveys have been received from 11 potential user groups. Several categories of user groups have emerged:
Local performing arts organizations
Local musicians and music promoters
Special event organizers
Private performing arts schools
Music festivals
Civic meetings
Lecture series
Concert series
School groups
Touring productions
Educational institutions
In addition to these user groups, it is inevitable that business and community groups will require a place of public assembly on occasion
D. USE PROGRAM
The following list identifies projected performance days. A healthy level of activity is anticipated. These figures do not include rehearsal, load in and take out time.
Presented Events
§ Special Events 2
§ SPAC Bookings 70
§ Children’s Events 6
§ Speaker Series 10
88
Rentals
§ Not-for-Profit Children’s 6
§ Not-for-Profit Miscellaneous 15
§ Educational Institutions 29
§ For Profit 4
54
Film Showings 150
TOTAL EVENTS 292
D. BUILDING PROGRAM
Design Criteria
Safety and Code Compliance
Functional Aspects – to Equity Standards
Comfort and Convenience
Preservation and Aesthetics
Cost and Cost Benefit
Design Highlights
· Front-of-House Facilities
Central Box Office
Retail Operation Accessible by Public
Lobbies and Concessions
· Auditorium Seating Capacity
Section A = 100 seats
Section B = 201 seats (including 8 wheelchair spaces)
Section C = 226 seats
Total = 527 seats
· Backstage
Loading
Below Stage and Stage Level Dressing Rooms
· On-Site Administration Offices
Facility Manager
Box Office Manager
Technical Director/Master Electrician
E. RESOURCES REQUIRED
Personnel
· Ownership - New Dixie Theatre, Inc.
· Governance - New Dixie Theatre, Inc. Board of Directors
· Management - Paid Professional Staff supported by volunteers
The ownership and effective control of the Center should remain with the non-profit, 501(c )3 created to hold title to the property. The Board of Directors of that corporation will govern the project.
Staffing
Three full-time personnel supported by part-time staff and volunteers.
· Facility Manager (CEO)
Responsible for coordination of board development, staffing, facilities, programming, booking, media relations, fund raising, policy development, budgets, contracts and advocacy.
· Box Office/House Manager (Customer Relations Manager)
Responsible for customer services, box office, front-of-house management and concession supervision, catering and event management, fiscal control, facility personnel management and scheduling, and housekeeping.
· Technical Director/Master Electrician (Client Services Manager)
Responsible for client services, mechanical and electrical systems, lighting, sound, rigging, stage and film equipment and appliance maintenance, supervision of building maintenance, projection, security, and stage crews.
Projections for Presented Events and Theatre Rental
Average
Average
Events
Days
Average
Average
% of
Tickets
Tickets
Annual
per Year
per Year
Attendance
Ticket Price
Rental Fee
per Event
Sold
Income
Special Events
2
4
95%
$50.00
500.65
1,001
$50,065.00
SPAC Bookings
70
70
65%
$16.00
342.55
23,979
$383,656.00
Educational
29
35
50%
$500.00
263.5
7,642
$14,500.00
Film Showings
150
75
40%
$5.00
210.8
31,620
$158,100.00
SPAC Children's
6
6
80%
$4.00
421.6
2,530
$10,118.40
Events
NFP Children's
6
6
80%
$400.00
421.6
2,530
$2,400.00
Events
NFP Miscellaneous
15
15
60%
$425.00
316.2
4,743
$6,375.00
Events
Seat Surcharge on
$0.50
7,273
$3,636.30
NFP sales
Speaker Series
10
10
30%
$5.00
158.1
1,581
$7,905.00
For Profit Events
4
4
70%
$12.00
$1,000.00
10%
368.9
1,476
$5,770.72
292
225
84,373
$642,526.42
Utilization is 62% = 225 programmed days/365
Annual Budget
Revenue
Earned Revenue _______
Theatre rental and events $ 642,526
Concessions 52,689
Advertising 10,538
Retail and Merchandizing (net) 6,250
Subtotal Earned Revenue $ 712,003
Contributed Revenue_______
Annual Donations $87,845 (actual 2003 figure)
Memberships 18,965 (actual 2003 figure)
Grants 15,000
Performance Sponsorships 15,000
School Performance Sponsorships 5,000
Subtotal Contributed Revenue $141,810
TOTAL REVENUE $853,813
Expenses
Concessions $ 19,625
Marketing and Development 18,000
Full Time Staff 124,000
Part Time Staff 95,400
Payroll Taxes/Insurance (20%) 43,880
Facility Costs 60,000
Administration 36,000
Arcadia Rental 96,000
Dixie Mortgage 108,600 (until 2008)
Film Rights 11,000
Artists’ Fees 220,000
TOTAL EXPENSES $832,505
Surplus/Deficit $21,308
This budget does not include depreciation.
Surplus funds should be dedicated to cash reserves, depreciation and endowment purposes.
Capital Costs
Development Costs for the restoration and renovation of the Dixie Theatre into the Staunton Performing Arts Center.
Capital Costs of Dixie Project Conceptual Estimate
(K. Almond, 2001)
Building Acquisition $ 435,000 (capital and interest for 4 more yrs.)
Rehabilitation 2,553,419
Escalation 290,000 (5% per year since 2001)
Architectural & Engineering 487,133
Construction Management (or GC) 529,405
Contingency (20%) 587,780
Film and Theatrical Equipment 386,486
Totals $5,269,223
The current project estimate may be described as being in the $4.5 to $5.5 million range. Inflation, market and site conditions, project administration and interest rates all will have an impact on the final cost of the project.
(Take a look at the plans and the new model.)
