FAYETTEVILLE -- The Advertising and Promotion Commission on Monday committed to doubling the amount of taxpayer money TheatreSquared will receive to build its new venue.
Commissioners voted 6-0 to give the nonprofit performing arts organization $200,000 annually over 15 years starting next year. The commitment amounts to $3 million, nearly matching the $3.1 million the City Council approved for the project in March.
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Executive Director Molly Rawn recommended the commission provide $200,000 over 10 years, totaling $2 million. Commissioner Adella Gray, who also serves on the City Council, suggested upping the amount to $3 million by extending the timeline five years. TheatreSquared officials asked the commission to match the city's contribution during last month's meeting.
Rawn based her recommendation on a flat projection of 5 percent revenue growth every year. Tourism revenue has increased by about that much year after year for the past decade, Rawn has said. Half of the city's 2 percent hotel, motel and restaurant tax goes to tourism efforts. The other half goes toward parks. Commissioners approved a $4.2 million overall operating budget this year.
Rawn said significant expenses expected for repair and renovation at the Fayetteville Town Center and the recent purchase of Walker-Stone House played a key role in her recommendation.
The commission's attorney, Vince Chadick, said a previous Arkansas Attorney General opinion stipulates the commission can make a multiyear commitment to support the city's advertising and promotion endeavors and/or to construct a public recreation facility.
The allocation will become a line item on the budget, which commissioners have to approve every year. Commissioner Ching Mong stressed concern a future commission could decide to pull out of the agreement within the 15-year time frame. Chairman Matthew Petty, also a City Council member, said the city's commissions typically take breaking a promise very seriously.
TheatreSquared Executive Director Martin Miller said the $1 million difference could affect the project's timeline and possibly introduce uncertainty in securing future, private donations.
"I don't hear you saying that without $3 million that you just scrap your capital campaign and TheatreSquared doesn't happen," Rawn said.
In a memo to the commission, Rawn commended TheatreSquared as an excellent project, but when speaking of the $3.1 million goal added, "I do not believe our organization can take on a commitment of this size without negatively impacting operations and existing programs."
Commissioner Robert Rhoads said he thought it was important to show Fayetteville is willing to step up when it comes to supporting such large-scale projects. Private investors pay attention to how much public commitment a project gets, he added.
"I dare say most of the voters of Fayetteville would probably say this is a project that screams what Fayetteville is about," Rhoads said.
TheatreSquared Artistic Director Bob Ford became visibly moved at the decision to grant $3 million to the new venue.
"This is really huge. We take it deeply to heart," he said. "We will do you really proud."
The $31.5 million arts theater, bar, restaurant, entertainment and education hub is planned for the corner of Spring Street and West Avenue in time for the 2019-20 season. Groundbreaking is expected to happen sometime this year.
NW News on 04/25/2017