Questions linger for performing arts venue implementation agreement

Two hours wasn't enough time for the Sarasota City Commission to pose all their questions about the proposed Sarasota Performing Arts Center during Monday's workshop.

Representatives of the project were joined on Zoom by two architects from Renzo Piano Building Workshop's Genoa, Italy offices as they briefed commissioners on the project's four-building design concept and business plan. 

With a noon hard stop looming, City Manager Marlon Brown proposed that commissioners continue discussions individually to help craft the implementation agreement between the city and the Sarasota Performing Arts Foundation, the next key step in continuing to develop a plan for the new facility. A discussion about that agreement will come up on the commission's Oct. 21 meeting agenda.

The deadline to sign the agreement, which will include cost estimates, is Nov. 30.

The implementation agreement is a required step for the design process to continue. It lays out the details for the buildings to be owned by the city but operated by the Sarasota Performing Arts Foundation. 

Last week the design team of Renzo Piano and Sarasota-based Sweet-Sparkman Architects revealed a preliminary concept for the SPAC to a largely receptive audience. On Monday, things got real as promoters of the project were pressed on hard details such as parking availability, whether the up to 800-seat medium-size theater is even needed in addition to a 2,500- to 2,700-seat main theater, profit-and-loss projections, and more.

The workshop provided commissioners their first opportunity to discuss the public-private project proposed to be funded up to 50% by tax increment financing revenues generated by improvement of properties around The Bay park, the other 50% from philanthropy.

Among the concerns is a projection the SPAC would operate at a deficit of about $4 million per year, a point pressed by Vice Mayor Jen Ahearn-Koch.

Sarasota Performing Arts Foundation CEO Tania Castroverde Moskalenko said she felt the gap can be made up via philanthropy.

"I do feel confident," Castroverde Moskalenko said. "We have been ranging between $1 million and $2 million a year, so while I understand that this is double that, I think that the vision is so compelling that our patron base and our prospects would be inspired to contribute to this vision."

According to its financial projections, the Sarasota Performing Arts Center is expected to generate $38.5 million in revenue in its opening year, and $39.8 million as operations stabilize in year three. This compares to an operating budget of $44.7 million in year one and $44.1 million in year three, leaving a need for $4.3 million in annual operating support. 

Courtesy image

Accordiing to the SPAF, that fiscal gap is similar in scale to many performing arts centers in similar markets in Florida and across the country, and making the difference is anticipated as a combination of annual fundraising and earnings from an endowment.

The model projects program numbers over the first three years of operation and growth in both the artistic and corporate rental programs. As operations stabilize by year three, performances and events are projected to grow to 455, bringing in an estimated 539,432 people.

Performance and event types at the new SPAC include:

• Broadway and special presentations.
• Touring concerts, comedy, variety and family shows.
• Presentations of national and international music, theater, dance and speakers
• Regional and local presentations an co-presentations.
• Festivals and outdoor events.
• Educational performances.
• Artist residencies and events that engage community in the process and creation of art.
• Corporate, private and artistic or non-profit rentals.

This workshop included a presentation of the project concept design and implementation plan, which will be incorporated into the implementation agreement.

On April 18, 2022, the city and the Sarasota Performing Arts Foundation entered into a partnership agreement outlining the process to plan, co-fund, design and construct the Sarasota Performing Arts Center. 

That pact requires the SPAF to develop and submit to the City Commission for approval an implementation agreement to address:

• Project concept and preliminary site plan. 
• Any required approvals from city and other governmental agencies and preferred means to secure such approvals.
• A preliminary permitting and construction schedule. 
• Intended design and construction experts needed to facilitate the development. 
• A proposed project scope and total budget, recognizing that changes in the development timeline may affect ultimate costs.
• An outline of the plan for co-funding for the total project cost.