GILROY
– The city’s long-discussed arts and cultural center could be a
big step closer to reality soon with the impending purchase of a
portion of its downtown Gilroy site.
Meanwhile, arts advocates and community leaders on a cultural
center task force are kicking off a major fundraising effort meant
to ensure that once it’s built, the facility can be operated in a
way that’s affordable to all sizes of arts groups here.
GILROY – The city’s long-discussed arts and cultural center could be a big step closer to reality soon with the impending purchase of a portion of its downtown Gilroy site.
Meanwhile, arts advocates and community leaders on a cultural center task force are kicking off a major fundraising effort meant to ensure that once it’s built, the facility can be operated in a way that’s affordable to all sizes of arts groups here.
Early this month, City Council is scheduled to consider approval of the purchase of a two-lot property at the Monterey/ Eigleberry/Seventh street center site that was previously recommended by a special arts center task force.
While the two lots are a relatively small part of the overall site, they represent the first potentially binding commitment to the downtown location.
“We are thrilled that the first purchase agreement has been finalized on this project,” said Donna Pray, a former multi-term city arts and culture commissioner and member of the center task force. “We are on our way and look forward to an exciting, beautiful arts center in the heart of our downtown.”
Several other properties make up the center site, many held by one owner who City Administrator Jay Baksa said is reportedly receptive to city purchase but is currently out of the country. City officials who have contacted other owners have indicated they also seem receptive, Baksa said.
“At least going in everyone seems to be cooperative … ” Baksa said. “So far, so good.”
The city has set aside $3.2 million for the site purchase. Construction would begin in 2008 and be funded by park development impact fees the city collects from developers. Planning for the design of the cultural center should begin in two to three years, Baksa said, and construction could be complete by 2010.
However, it will also take money to run the place, and arts advocates are preparing to launch a major long-term campaign aimed at securing a source of stable funding. While a “footprint” of what the center would look like has been created, what actually would be in the center is still years away from final planning.
The idea is to start a $2 million endowment specifically for the cultural center, where interest earned from the invested funds would provide most or all of the operations and maintenance costs that are not covered by center revenues themselves.
A financial consultant has initially projected a net annual loss of approximately $136,000 from operations at the facility if rental rates are set at levels determined with feedback from area arts groups. A more finalized report is expected in the next few weeks.
None of 11 other California theaters surveyed by the consultant broke even either – instead, they covered between 48 and 80 percent of their expenses. The city’s facility is expected to cover 72 percent of its own costs, according to the consultant.
Arts supporters want to employ an endowment to make up the difference here in Gilroy because operations would be paid for out of the general fund, the city’s main pot of discretionary money. Competition is always fierce for the funds, and in Gilroy 80 percent are currently dedicated to police and fire alone.
“We need to have a stable source of revenue so the arts center isn’t out there competing with other public services and isn’t out there continually competing with the arts groups for funding,” task force member Sherri Stuart said.
Meanwhile, successful arts centers are ones that strengthen and support local arts groups, Stuart said. If the rents are so high that they cover all operating costs, small, energetic grassroots arts groups generally can’t afford to reach that high.
“If we have a way of keeping the cost affordable to nonprofit arts groups, we have ways to strengthen the quality and the offerings they present to the public as they become stronger themselves,” she said.
Pray and Stuart said they aren’t aware that an endowment has been built for another publicly owned building. But Pray said collecting $2 million-plus is “very doable.”
The Community Foundation Silicon Valley and the Gilroy Foundation – where Pray is executive director – will assist in the financial and strategic planning for the endowment. Arts supporters already met with top CFSV officials to discuss the matter.
“They felt in this area it’s not a problem at all, and there are other foundations that will give to an endowment if it’s for the arts …” Pray said. “We do have sources to go to. We just have to organize ourselves and start on that.”
Supporters plan to approach the City Council soon to discuss the endowment concept as part of a larger recommendation on how the center will be run and governed. They hope to have the endowment built by the time the center is complete.
The task force also wll recommend forming a separate nonprofit corporation to run the center in order to help manage the endowment, assist in future fundraising and allow direct community involvement in decisions.
Meanwhile, the consultant also estimated the center will generate roughly $200,000 a year in additional, more indirect tax revenues for the city as center visitors patronize downtown restaurants and businesses or stay in city motels – money that task force members aren’t planning to touch if they can help it.
“It will be an opportunity for people to create something that lasts forever,” Stuart said of the endowment. “Endowment funds are in perpetuity.
“Their gift will make it possible for their grandchildren, great-grandchildren and great-great grandchildren to enjoy this arts center.”
