HomeMy WebLinkAbout120208 Va Musical TheatreVirginia Musical Theatre Background
Virginia Musical Theatre Background
Founded in Virginia Beach in 1991, non-profit local arts
Founded in Virginia Beach in 1991, non-profit local arts
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organization.
organization.
Produced more than 300 performances in the Pavilion Theatre.
Produced more than 300 performances in the Pavilion Theatre.
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VMT was the single largest user of the Pavilion Theatre.
VMT was the single largest user of the Pavilion Theatre.
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The need to provide them, and the other local groups, a new
The need to provide them, and the other local groups, a new
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home drove the development and construction of the Sandler
home drove the development and construction of the Sandler
Center.
Center.
Experienced hardship due to the demolition of the Pavilion
Experienced hardship due to the demolition of the Pavilion
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Theatre because earned revenue from ticket sales dramatically
Theatre because earned revenue from ticket sales dramatically
decreased due to the lower seating capacity of the
decreased due to the lower seating capacity of the
Contemporary Art Center.
Contemporary Art Center.
Created a $75,000 roll-over deficit before they moved into the
Created a $75,000 roll-over deficit before they moved into the
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Sandler Center.
Sandler Center.
First Season at the Sandler Center
First Season at the Sandler Center
Strong attendance –average of 72% capacity.
Strong attendance –average of 72% capacity.
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More than 19,000 attended 22 performances.
More than 19,000 attended 22 performances.
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By far most prolific tenant of the Sandler Center.
By far most prolific tenant of the Sandler Center.
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23 performances planned for 08-09 Season.
23 performances planned for 08-09 Season.
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Rents Miller Studio Theatre for two weeks for rehearsals
Rents Miller Studio Theatre for two weeks for rehearsals
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before each production and rents the Performance Hall
before each production and rents the Performance Hall
for one week prior to each production.
for one week prior to each production.
$306,111 already paid in admission taxes, rent and other
$306,111 already paid in admission taxes, rent and other
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revenue to City.
revenue to City.
Integral to the success of the Sandler Center.
Integral to the success of the Sandler Center.
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Provides quality, low cost entertainment
Provides quality, low cost entertainment
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Activity at the Center and Town Center
Activity at the Center and Town Center
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Rental income
Rental income
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Direct revenue back to the City
Direct revenue back to the City
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Current Situation & Actions Taken
Current Situation & Actions Taken
Over past few months VMT Board of Directors has taken action
Over past few months VMT Board of Directors has taken action
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to address and change current financial situation.
to address and change current financial situation.
Board has increased their fundraising goal by 5% through
Board has increased their fundraising goal by 5% through
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additional sponsorships, annual giving solicitations and created
additional sponsorships, annual giving solicitations and created
three fundraising events.
three fundraising events.
-Red Carpet Gala in October raised $15,000 net revenue
-Red Carpet Gala in October raised $15,000 net revenue
Restructured Board to provide more direct oversight of
Restructured Board to provide more direct oversight of
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spending and finances.
spending and finances.
Reduced budget for AIDA in October 2008 by $20,000 and has
Reduced budget for AIDA in October 2008 by $20,000 and has
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committed to reduce all upcoming production budgets by at
committed to reduce all upcoming production budgets by at
least $20,000 to live within their means.
least $20,000 to live within their means.
Will reduce costs by using more local actors in their
Will reduce costs by using more local actors in their
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productions.
productions.
Sandler Center staff have reviewed each line item with VMT
Sandler Center staff have reviewed each line item with VMT
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and explored ways to reduce costs such as institute a new
and explored ways to reduce costs such as institute a new
rental category to further reduce rental costs of rehearsal hall.
rental category to further reduce rental costs of rehearsal hall.
Moved administrative offices yesterday to utilize free rent.
Moved administrative offices yesterday to utilize free rent.
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Loan
Loan
Needed to “catch up”on losses prior to Sandler Center
Needed to “catch up”on losses prior to Sandler Center
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New Board has made efficiency improvements and
New Board has made efficiency improvements and
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committed to fundraising
committed to fundraising
Promissory Note –Business Terms:
Promissory Note –Business Terms:
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Repayment over 10 years, supports future success
Repayment over 10 years, supports future success
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Interest if late
Interest if late
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First priority lien on assets
First priority lien on assets
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Personal property collateral
Personal property collateral
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Right to audit
Right to audit
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Requires Board to fundraise and reduce costs
Requires Board to fundraise and reduce costs
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Repay Sandler Center immediately
Repay Sandler Center immediately
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VMT provide quarterly status reports
VMT provide quarterly status reports
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Use of Loan Proceeds
Use of Loan Proceeds
Global Spectrum/Sandler Center:$99,000
Global Spectrum/Sandler Center:$99,000
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Debbie Reynolds –Artist Fee, Lodging &
Debbie Reynolds –Artist Fee, Lodging &
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Transportation:$50,000
Transportation:$50,000
Royalties for past productions:$19,000
Royalties for past productions:$19,000
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Advertising/Marketing:$26,500
Advertising/Marketing:$26,500
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Prior production expenses: $5,500
Prior production expenses: $5,500
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Total:$200,000
Total:$200,000