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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 ? ? organization. organization. Produced more than 300 performances in the Pavilion Theatre. Produced more than 300 performances in the Pavilion Theatre. ? ? VMT was the single largest user of the Pavilion Theatre. VMT was the single largest user of the Pavilion Theatre. ? ? The need to provide them, and the other local groups, a new The need to provide them, and the other local groups, a new ? ? 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 ? ? 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 ? ? 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. ? ? More than 19,000 attended 22 performances. More than 19,000 attended 22 performances. ? ? By far most prolific tenant of the Sandler Center. By far most prolific tenant of the Sandler Center. ? ? 23 performances planned for 08-09 Season. 23 performances planned for 08-09 Season. ? ? Rents Miller Studio Theatre for two weeks for rehearsals Rents Miller Studio Theatre for two weeks for rehearsals ? ? 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 ? ? revenue to City. revenue to City. Integral to the success of the Sandler Center. Integral to the success of the Sandler Center. ? ? Provides quality, low cost entertainment Provides quality, low cost entertainment ? ? Activity at the Center and Town Center Activity at the Center and Town Center ? ? Rental income Rental income ? ? Direct revenue back to the City Direct revenue back to the City ? ? 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 ? ? 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 ? ? 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 ? ? 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 ? ? 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 ? ? productions. productions. Sandler Center staff have reviewed each line item with VMT Sandler Center staff have reviewed each line item with VMT ? ? 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. ? ? Loan Loan Needed to “catch up”on losses prior to Sandler Center Needed to “catch up”on losses prior to Sandler Center ? ? New Board has made efficiency improvements and New Board has made efficiency improvements and ? ? committed to fundraising committed to fundraising Promissory Note –Business Terms: Promissory Note –Business Terms: ? ? Repayment over 10 years, supports future success Repayment over 10 years, supports future success ? ? Interest if late Interest if late ? ? First priority lien on assets First priority lien on assets ? ? Personal property collateral Personal property collateral ? ? Right to audit Right to audit ? ? Requires Board to fundraise and reduce costs Requires Board to fundraise and reduce costs ? ? Repay Sandler Center immediately Repay Sandler Center immediately ? ? VMT provide quarterly status reports VMT provide quarterly status reports ? ? Use of Loan Proceeds Use of Loan Proceeds Global Spectrum/Sandler Center:$99,000 Global Spectrum/Sandler Center:$99,000 ? ? Debbie Reynolds –Artist Fee, Lodging & Debbie Reynolds –Artist Fee, Lodging & ? ? Transportation:$50,000 Transportation:$50,000 Royalties for past productions:$19,000 Royalties for past productions:$19,000 ? ? Advertising/Marketing:$26,500 Advertising/Marketing:$26,500 ? ? Prior production expenses: $5,500 Prior production expenses: $5,500 ? ? Total:$200,000 Total:$200,000