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Project Proposal

ANN ARBOR DEARBORN Listen Local : Transparency, Promotion, and Audience Engagement

This proposal was written by a multidisciplinary group of students as part of a capstone presentation for “New Music Business Models,” a Winter 2019 Problem Solving Initiative course at the University of Law School.

FLINT

LAW 741: New Music Business Models April 20, 2019

Listen Local Detroit: Transparency, Promotion, and Audience Engagement

I. Essential Objectives Our class has been researching the music industry and developing a program that seeks to improve the ability of composers, songwriters, and musicians in Detroit to make money from their music. Through discussions with musicians, venue owners, non-profit program administrators, record label executives, city government officials, and foundation officers, we learned about needs in the arts community that are not being met by existing resources and organizations. Musicians expressed a need for more comprehensive and accessible business education resources. They were also frustrated with the opacity of the process by which venues and labels enter contract with artists. They voiced disappointment with genre-based siloes in Detroit, emphasizing that while they have support within their genre, it is difficult to attract new audiences even while working within the larger community of Detroit-based musicians. From this research we designed a program to promote “Detroit Music” as a cohesive community making unique and captivating music. This program aims to raise awareness of local music and advocate for fair and transparent treatment of all artists, in addition to addressing the concerns that we heard most frequently from musicians. The program will also include an educational component to ensure that participating artists understand why the program will help advance their careers. Our proposed project, Listen Local Detroit, will promote pride in local music, integrate genre silos, improve music business education for Detroit musicians, and strengthen economic relationships between musicians and local institutions. In the long term, we believe that the successful implementation of these initiatives will help Detroit-based musicians make more money from their work. To achieve these objectives, Listen Local Detroit will implement a program where local artists curate playlists for local commercial establishments; partner with venues to increase live performance opportunities; collate educational resources from local institutions as well as other organizations (e.g. Springboard, an online education platform) to consolidate them in an online directory; and promote fair standards in contracting to inform artists how to negotiate with venues, record labels, or other potential licensees of their music. The playlist curation program will serve as a pilot project for the initiative as a whole; and the remaining program components will be introduced successively, likely beginning with live music opportunities.

II. Case Studies: Washington, D.C. and Austin, TX As part of our research, we conducted a number of case studies of local music projects in different cities including Washington, D.C., Austin, Seattle, and Indianapolis. We recognize that the area median income, population density, and public support for the arts are all much higher in each of these cities, and the number of citizens who live below the poverty line is much lower than in Detroit. But we believe that they provide strong examples of successful programs upon which it was beneficial to model ours. We chose D.C. and Austin to highlight here because Listen Local First in Washington D.C. runs a successful program for local musicians that is very similar to what this program hopes to accomplish in Detroit, and the Austin Music Commission exemplifies the benefits musicians can reap when the private and public sectors collaborate to support them. Listen Local First was founded in 2011 by Christopher Naoum, the former policy director for the Future of Music Coalition. It is an initiative of Think Local First, the small business

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association of Washington, D.C, to bring musicians into the small business community. In 2011, they began a monthly subscription service of playlists curated by D.C. musicians for local coffee shops and bars. They placed promotional materials for the featured playlist artists in the businesses to raise awareness among the patrons. The playlists generated buzz in the community and enabled Listen Local First to plan larger-scale music festivals where they ensure all the festival vendors they work with adhere to fair trade music principles.1 They also advocate on behalf of local artists to the D.C. government.2 They are working with the City Council to establish a D.C. Music Taskforce that advocates for musician-specific interests within the city’s larger Cultural Plan.3 Naoum continues to release quarterly playlists on Spotify of new music by D.C. artists. Austin’s self-designation as the “Live Music Capital of the World” was born of a long- term publicity campaign to embrace local media, performance infrastructure, artist education, and government support. In the 1980s, the Austin Chamber of Commerce noted that the city had huge potential as a music hub, resulting in the creation of the Austin Music Commission in 1988, as well as a number of government-sponsored and independent organizations.4 Austin has a robust artist-oriented medical network for musicians that includes The SIMS Foundation and The Health Alliance for Austin Musicians. Austin provides a valuable model of a city willing to embrace its identity as a sanctuary for live music, this vibrancy and cohesion is in part due to a campaign of city and genre-spanning local publicity and infrastructure.

III. Community Engagement Detroit has a long history of outsiders coming in to “fix” the city without considering community needs and current revitalization efforts. In light of this history, Listen Local Detroit emphasizes the need for early and continual community engagement. One potential mechanism for community engagement—existing within the pilot program—would be regular roundtable discussions between musicians, local business owners, and other participating arts industry players. To foster immediate community engagement, the roundtable would convene at the beginning of the pilot program to discuss which musicians the program should invite to curate the playlists. The roundtable will continue to meet, perhaps quarterly, to guide the successive initiatives as they are introduced. In recognition of the principles of non-extraction, efforts will be made to compensate participants for their involvement and feedback.

IV. Program Components

Curated Playlists for Streaming As a pilot program, Listen Local Detroit will provide seed funding for local Detroit artists to create playlists of local music for local commercial establishments, including cafés, bars, and

1 Hannah Rubashkin Phone Interview with Christopher Naoum, April 9, 2019. 2 Christopher Naoum, General Assembly, https://generalassemb.ly/instructors/christopher-naoum/10479. 3 Listen Local First, Comments on the Working Draft of the D.C. Cultural Plan, Feb. 28, 2018 https://static1.squarespace.com/static/569e660569a91a75f8219bf7/t/5a982d8df9619afdfb711cb2/1519922574172/L LF+DC+Cultural+Plan+Comm ent+Draft++v3-1-18.pdf. 4 “How Did Austin Become The 'Live Music Capital Of The World'?” Mose Buchele, Kut, KUT. Sept 21, 2016 https://www.kut.org/post/how-did-austin-become-live-music-capital-world. Noteworthy organizations and initiatives in Austin include: Support Austin Music, Austin Creative Alliance, Austin Music Foundation, ALL ATX, KUTX, Austin’s Cultural Arts Division, City of Austin Resource Center for Artists and Musicians, Austin Music Census, and the city’s designation as a UNESCO City of Media Arts.

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retail spaces. This initiative will increase the play counts of songs, broaden consumer awareness of local music, and expose local music to larger and different audiences. Featured artists can use the data provided by the streaming platform to collect data on how people listen to their music.5 Partnering with a mix of artists drawn from local organizations and institutions—such as Opera Modo, Assemble Sound, and Seraphine Collective—will allow local music to have a wider reach in the community. The artists who curate the playlists and the artists featured on the playlists will benefit from the exposure to new listeners. During our research Detroit musicians expressed excitement about potentially having a larger platform to showcase their work. In the future, artists partnerships and endorsements ould give these curated playlists a larger platform and an expert stamp of approval, thereby encouraging listeners to become evangelists of local music. One potential integration for example, would be if Jack White curated a playlist of his favorite Detroit emerging artists.

Live Music Performance Opportunities Facilitating new connections and strengthening existing relationships between venues and musicians will increase the reach and visibility of Detroit musicians and their work. The precise nature of new venue-artist pairings will be informed by the needs of artists and venues, but preliminary discussions have revealed enthusiasm for more concerts and residencies where Detroit venues highlight local artists. The program may include residency programs where venues host artists, counterintuitive pairings of artists and venues to cross-pollinate musical tastes, and artist-curated concert series. A specific initial proposal for a venue-artist partnership is an evening concert series, e.g, a “Listen Local Detroit Thursday,” where rising local talent performs weekly or monthly at a different participating venue. This will ideally attract Detroit listeners looking for more local music and provide venues or bars with a marketing strategy for filling seats on less popular evenings. A regular event will help reinforce the Listen Local Detroit brand, increase audience attendance, and create more performance opportunities for local artists. Such an event could eventually be scaled up to a city-wide “Listen Local Day” (equivalent to popular “Shop Local” initiatives), and alongside radio and print media advertising, reinforce Listen Local Detroit’s goals of promoting pride in local music, removing genre silos, and strengthening musician-venue relationships. These live music initiatives will help musicians reach new audiences and gain new connections in the local industry.

Education To help local artists learn how to maximize their potential for financial success, Listen Local Detroit will provide them with resources to attain the knowledge they need to navigate the music industry. Listen Local Detroit will publish and maintain an online directory that brings together the range of professional development resources available to musicians on listenlocaldetroit.org, the project’s central website for all resources and contacts. This resource guide will help musicians learn more about accounting and budgeting, grant-writing, relevant areas of law (copyright, contracts, negotiations), marketing and promotions, joining a performance rights organization, royalty structures, and touring. As part of the pilot project, Listen Local Detroit will help participating artists register their works with a performing rights organization if they are not already members. As the program grows it will also offer pro bono

5 How to View Spotify Analytics Using Fan Insights: https://www.dittomusic.com/blog/how-to-view-your-spotify- analytics-using-fan-insights.

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services to host quarterly workshops at the to guide musicians through the difficult language found in contracts, license registration, and tax forms. A strong education is crucial to financial success in this industry and these resources will help musicians maximize their potential revenue.

Advocacy for Fairness and Clarity in Contracting The local boosterism of Listen Local Detroit makes it an attractive brand for local venues and labels to embrace. Participating in Listen Local Detroit will be attractive to business owners who want to publicly demonstrate a commitment to building a fair, transparent, sustainable local arts economy. Listen Local Detroit will be marketed to venues and labels as an opportunity to make a commitment to fair trade music practices and respect for the creative contributions of local musical artists. These campaigns have had success in other communities; for example, Fair Trade Music Seattle, “a grassroots campaign dedicated to raising the standard of living for all working musicians in the Seattle area through education, cooperation and inspiration,” advocates for fair contracting and provides artists with resources to demand them.6 Artists consulted throughout the development of this project bemoaned a lack of leverage when negotiating performance fees, despite a general knowledge about standards for fair pay.7 To address this, Listen Local Detroit will develop a collection of structured fair contracting guidelines for musicians working with venues and recording labels. The guidelines may not ultimately include specific percentages or guarantees for artists, but they will be specific enough that adopting them will demonstrate a venue or label’s effort in building a sustainable local music community. Listen Local Detroit will provide digital messaging and physical branding (a window sticker for venues and an album badge for records) for businesses that commit to the standards of transparent payment practice, allowing them to proudly advertise their commitment to the local music industry. This initiative follows in the footsteps of work done by Fair Trade Music International, a non-profit organization that promulgates ethical business practices for the music industry and awards verification seals to organizations that operate in agreement with their standards. Providing comprehensive disclosure of all revenues in full accounting statements on a regular basis to the music creators and rights holders is one of seven business practices that FMTI- certified organizations adopt.8 This practice is already a part of local Detroit label culture; Ghostly Records provides this service for its artists and it is one of the reasons artists elect to sign with them over other labels. The program’s community engagement roundtables will include discussions about how venues and labels can engage more transparently with artists and the public. Framing the discussion in this way will foreground the idea that principles of equity and long-term sustainability are of similar importance in these business relationships as short-term profitability is. This program can hopefully create a commitment to transparency in the local community that will bring more bargaining power and equity to artists and teach consumers to demand “fair trade music” the way they do fair trade coffee.

6 Fair Trade Music Seattle contracting templates, http://fairtrademusicseattle.org/information-and-resources/. In Detroit, Emergence Media sponsors multimedia projects using a fair-trade cooperative economics model https://emergencemedia.org/blogs/news/celebrating-10-years-of-emergence-media. 7 See, Caves, Richard E. Creative Industries: Contracts between Art and Commerce. Harvard University Press, Cambridge MA, 2000 (For more on the complexities of contracting in creative industries). 8 Release Certification, Fair Trade Music Int’l, https://www.fairtrademusicinternational.org/release-certification/.

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V. Marketing & Promotions Promotion and marketing of local music and of the program itself is a key facet of Listen Local Detroit. Social media marketing will play an important role in promoting and publicizing the Listen Local Detroit programs and participating artists. Social media and search marketing focused on a local area is most cost-effective than a nationwide campaign and enables the targeting of specific tabs by genre to bring attention to local artists’ music. Digital marketing will provide Listen Local Detroit with the opportunity to galvanize audiences offline by, for example, using The BandsInTown tool on Facebook to update followers on local artists offline performances and album releases. Many emerging artists host their content on SoundCloud and Bandcamp and Listen Local Detroit will link to and promote their work on those platforms. Listen Local Detroit will also work with business owners to make participating musicians’ products and merchandise more visible for consumers in non-traditional music spaces, such as coffee shops, art museums, and clothing stores. The program may also work with media outlets to develop a more robust and up-to-date means for artists to promote their shows. Radio partnerships can also be leveraged to promote local music. Radio is still extremely powerful in the Detroit metropolitan area; it is the 11th largest radio market in the United States9 and the area still harbors a strong commuter culture with 62%10 of Detroit residents commuting outside of the city for work and Detroit receiving 49,000 more commuters than it loses11. Detroiters protested heavily when WDET converted its music programming to talk shows, proving that music on the radio is an integral part of Detroit culture.12 By working with local radio stations to set up a weekly “Listen Local Detroit Power Hour” that focuses on local acts, the program could have a substantial impact on artists’ careers.

VI. Organizational Structure, and Funding A Detroit-based non-profit organization or university music department would be the ideal home for Listen Local Detroit. They have the network, knowledge, support, and expertise to manage the project’s various components. As an initiative of an existing organization, the Listen Local Detroit pilot would be able to use their resources and launch more efficiently. The Detroit Sound Conservancy (DSC) seems like the strongest potential non-profit home due to their industry connections, resources, and mission to “support [Detroit’s] sonic heritage through outreach, preservation, education, storytelling, curation and innovation.”13 DSC has expressed interest in housing this project, earning the pilot early “buy-in” from the community. has also expressed an interest in potentially launching the pilot in fall 2019. Initial funding for Listen Local Detroit could come from grants or investors, the Michigan Council for Arts and Cultural Affairs, Kresge Foundation, Knight Foundation, the Community Foundation for , and the Ford Motor Company Foundation. A successful pilot program will hopefully help Listen Local Detroit identify new sources of funding, potentially including local businesses, music schools, and further grants.

9 Nielsen Arbitron: http://www.arbitron.com/downloads/MRC_Accredited_Services_Markets.pdf. 10 Shaforth,Frank “The Always Tricky Reverse Commuter Tax.” Governing, November 2015, https://www.governing.com/columns/public-money/gov-reverse-commuter-tax.html. 11“Detroit receives about 49,000 more commuters than it loses,” Drawing Detroit, April 2015 http://www.drawingdetroit.com/detroit-receives-about-49000-more-commuters-than-it-loses/. 12 Jensen, Brennen. "Detroit music fans protest radio station's switch to talk." The Chronicle of Philanthropy 26 Jan. 2006: 31+. Business Insights: Global. Web. 16 Apr. 2019. 13 Vision, Mission, and Goals, Detroit Sound Conservancy, May 2018. http://detroitsoundconservancy.org/mission/.

5 Listen Local Detroit - Estimated Program Budget REVENUE Startup FY 1 FY 2 FY 3 FY 4 FY 5 Assumptions/Notes Grants ($ - ) ($ 20,000.00) ($ 20,000.00) ($ 45,000.00) ($ 45,000.00) ($ 45,000.00) $175k across 5 years Contributed Support ($ 2,000.00) ($ 2,500.00) ($ 3,500.00) ($ 4,500.00) ($ 5,500.00) ($ 6,500.00) Carry Forward Previous Year ($ - ) ($ - ) ($ 4,516.12) ($ 10.31) ($ 205.19) ($ 1,256.69)

Total Revenue ($ 2,000.00) ($ 22,500.00) ($ 28,016.12) ($ 49,510.31) ($ 50,705.19) ($ 52,756.69)

EXPENSES Startup FY 1 FY 2 FY 3 FY 4 FY 5 Assumptions/Notes Administrative Support ($ - ) ($ 2,700.00) ($ 3,361.93) ($ 5,941.24) ($ 6,084.62) ($ 6,330.80) Assumes 12% of revenue to support admin from nonprofit Program Manager Salary ($ - ) ($ 7,800.00) ($ 15,600.00) ($ 31,200.00) ($ 31,200.00) ($ 31,200.00) $15/hr - FY1: .25 FTE, FTE2: .5 FTE, FY3+ 1 FTE Program Manager Fringe ($ - ) ($ 1,560.00) ($ 3,120.00) ($ 6,240.00) ($ 6,240.00) ($ 6,240.00) Assumes 20% fringe Operational Expenses ($ 1,000.00) ($ 523.88) ($ 523.88) ($ 523.88) ($ 523.88) ($ 523.88) Website, Spotify Business acct, etc. Artist Stipend ($ - ) ($ 2,400.00) ($ 2,400.00) ($ 2,400.00) ($ 2,400.00) ($ 2,400.00) Assumes 12 stipends issued annually @ $200/each Marketing & Outreach Supplies ($ 500.00) ($ 1,500.00) ($ 1,500.00) ($ 1,500.00) ($ 1,500.00) ($ 1,500.00) Flyer and poster printing, coffee cup sleeves, etc. Volunteer Reimbursement ($ - ) ($ 1,000.00) ($ 1,000.00) ($ 1,000.00) ($ 1,000.00) ($ 1,000.00) Milage, Parking, etc. reimbursement of volunteers Community Engagement Supplies ($ 500.00) ($ 500.00) ($ 500.00) ($ 500.00) ($ 500.00) ($ 500.00) Forums and supplies (food, transportation, etc.)

Total Expenditures ($ 2,000.00) ($ 17,983.88) ($ 28,005.81) ($ 49,305.12) ($ 49,448.50) ($ 49,694.68)

Total Expenditures ($ 2,000.00) ($ 17,983.88) ($ 28,005.81) ($ 49,305.12) ($ 49,448.50) ($ 49,694.68) Total Revenue ($ 2,000.00) ($ 22,500.00) ($ 28,016.12) ($ 49,510.31) ($ 50,705.19) ($ 52,756.69) Net Operating Revenue ($ - ) ($ 4,516.12) ($ 10.31) ($ 205.19) ($ 1,256.69) ($ 3,062.00) Listen Local Detroit - Funder Analysis Matrix Listen Local Detroit empowers, educates, and engages artists through individual and community development working towards equity within the music industry. Community Foundation for Michigan Council for Arts Ford Motor Company Southeast Michigan Knight Foundation Kresge Foundation and Cultural Affairs Charles S Mott Foundation Skillman Foundation Ralph C Wilson Foundation Foundation (CFSEM) (MCACA) https://corporate.ford. (313) 961-6675 (305) 908-2600 (248) 643-9630 MichiganBusiness. (810) 238-5651 (313) 393-1185 (313) 885-1895 Contact Information com/community/ford-fund. www.cfsem.org www.knightfoundation.org www.kresge.org org/industries/mcaca www.mott.org www.skillman.org ralphcwilsonjrfoundation.org html Application required, Online application required, Pre-application required. Application required, Application required, due Application required, Application required, LOI Application Method reviewed quarterly at board participation in info session Reviews are rolling, approval Application required reviewed in Apr and Oct April 19, 2019 reviewed quarterly. required, invitation required meetings. encouraged is given quarterly. Detroit Standard Focus Area General and Engage General Empower, educate, engage Empower and Educate Engage Educate Empower and Engage Empower, Engage, Educate Artist's services; arts Arts and culture, Arts and culture; "Community Life", arts Innovative artist and culture; community Arts and cultural Community and community and Priorities/Subject Area community and Livable Communities and culture programs and economic support economic development economic development, economic development. development performing arts Priority funding in SE Priority funding in National, HQ'd in Western NY State, SE Geographic Funding Area Akron, Detroit, Miami National and Michigan Michigan Michigan Michigan Michigan Michigan Michigan Online submission of Online and bound by Letter of Interest (LOI) Pre-application open Types of Grants Open and online Open and oneline Open and online Open and online requested documents. published deadlines. Required and online Innovative programming Operational support, General support, General support; Program development, General support, General support and General support; Types of Funding funding, limited project support, arts in program development, program development. continuing support program development program development program development restrictions education seed money Children and youth; Low-income individuals Low income individuals Low income individuals Children and youth; low Innovative artist Low income individuals Population(s) low-income individuals and families; racial and Undefined and families, young and families, children income individuals and programs and families and families ethnic minorities adults and youth families Detroit Symphony Artspace Projects, Buffalo Fine Arts , Detroit Detroit Public Schools New Music Detroit, Afterschool Alliance, Opera Modo, Collective Innovate Memphis, Operation Hope, Data Academy, Detroit Police Past Grantees Riverfront Conservancy, Foundation, Detroit Living Arts, Detroit University Musical Sweat Detroit Detroit Symphony Driven Detroit Athletic League, Detroit Riverfront Institute of Arts Children's Choir Society Orchestra Hall Conservancy Multi-million dollar Multi-million dollar Mid-sized $100-$300k ~$500k, organization Larger grants, lots of Past grants have been in Mid to High hundred $ Range giving power annually. annual giving power. ~$5k - $25k grants, with larger requires gross revenues giving power the ~$5k - $75k range thousands. Lots of smaller grants. Primarily larger grants. granting ability in excess of $100k Funder with innovative Large funder with a national Large funder that is Large funder with flexibility Statewide funder with Large foundation with lots of Large funder with Detroit approach that is open to focus. Funder has interest in Large funder with national sunsetting with increased in focus; primarily gives capacity to fund many granting power. Gross Notes focus; gives larger grants to nontraditional or geographical area and and international focus. Has grant giving ability. Has a smaller grants; allows for organization with mid-sized revenues could be established organizations. nonestablished support for economically large granting ability. particular interest in operational funding. annual grants prohibitive in first few years. organizations. disadvantaged. innovative ideas. More consideration Significant Works for us! KEY needed consideration needed. Listen Local Detroit - Host Organization Analysis Matrix Listen Local Detroit empowers, educates, and engages artists through individual and community development working towards equity within the music industry. Creative Many Culture Source Detroit Sound Conservancy Loudspace Museum WAGE for Work Wayne State University (313) 483-5705 (313) 831-1151 Culturesource. (313) 444-8242 LoudspaceInc.org (313) 875-2264 [email protected] 313-577-2424 Contact Information CreativeMany.org org DetroitSoundConservancy.org [email protected] motownmuseum.org WageforWork.com Wayne.edu To establish sustainable CultureSource strengthens Creative Many is a statewide economic relationships the arts and culture sector in organization that develops between artists and the Southeast Michigan through Support our City’s sonic To preserve, protect and To create and advance creative people, creative To provide a free and open institutions that contract our advocacy, capacity building heritage through outreach, present the Motown Story knowledge, prepare a diverse places and the creative environment for musicians to labor, and to introduce Mission and marketing resources in preservation, education, through authentic, student body to thrive, and economy for a competitive perform, collaborate, and mechanisms for self- order to cultivate an storytelling, curation, and inspirational and educational positively impact local and Michigan through research, hone their talents. regulation into the art field innovative, collaborative, innovation. experiences. global communities. advocacy, professional that collectively bring about a diverse and engaged practice and communications. more equitable distribution of community. its economy. Aligns with creativity and Aligns with engaging the Aligns with education, Aligns with empowerment and Aligns with education and Aligns with empowerment, Aligns with empowerment, Mission Alignment advocacy as well as impact to community. outreach, and innovation. engagement. community engagement. education, and engagement. education, and engagement. the arts and education. Organization is currently in Main Office is located in Organization is currently in Located in Detroit and Main office located in Detroit, Detroit; have successfully Located in Detroit as a Relationship to Detroit as well as has an office Lansing, additional effort focused on the history of a Organization is based in NY serving 7 counties in implemented many projects to community centered Detroit / Culture in Lansing; has multiple would be needed to connect Detroit music mainstay state. Southeast Michigan. preserve the culture of Detroit educational institution. programs ongoing in Detroit. to Detroit. (Motown Records). through music. Interest / Appears to be excited- waiting Organization is excited and N/A at this time N/A at this time N/A at this time N/A at this time Faculty relationship exists Excitement for more guarantee. interested. Larger organization; 5 person board; several Large organization; >$12.6 Large multidisciplinary 14 person board; ~$650k 3 volunteer staff; <$50,000 Size / Capacity approximately 20 officers, advisors at various project million budget; 14 person 5 person board educational institution annual budget annual gross receipts directors, and key employees sites; interns available board situated in Detroit. Not an obvious fit at first Waiting for response from Organization is looking to glance, but currently running Contacted through Jeremy; Sarah Nicoli from the Potential dead-end: emailed Faculty relationship exists Executive Director, but seems expand mission and is very an entrepreneurship initiative. Notes will be present at mid-term education group has reached less than a week ago, waiting within the WSU Music interested in this partnership- excited about the possibility of Waiting for response from presentation out to Culture Source response Department. finances are the only concern. adding this project. Raina Baker, Program Manager.