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2016 Cultural Facilities Fund Annual Report MassDevelopment DECEMBER 31, 2016 The Honorable Steven T. James The Honorable William F. Welch Clerk of the House of Representatives Clerk of the Senate The Honorable Brian Dempsey The Honorable Karen Spilka Chair, House Committee on Ways and Means Chair, Senate Committee on Ways and Means The Honorable Eileen Donoghue The Honorable Joseph F. Wagner Co-Chair, Joint Committee on Economic Development and Emerging Technologies Co-Chair, Joint Committee on Economic Development and Emerging Technologies The Honorable Cory Atkins The Honorable Eric P. Lesser Co-Chair, Joint Committee on Tourism, Arts, and Cultural Development Co-Chair, Joint Committee on Tourism, Arts, and Cultural Development MassDevelopment and the Massachusetts Cultural Council are pleased to submit the ninth annual report on activities of the Massachusetts Cultural Facilities Fund, as required by Chapter 123 of the Acts of 2006, An Act Relative to Economic Investments in the Commonwealth to Promote Job Creation, Economic Stability, and Competitiveness in the Massachusetts Economy. This report presents the Fund’s financial statements and chronicles Cultural Facilities Fund grants as of June 30, 2016. In 2016, we were pleased to announce $9.3 million in grants awarded to 91 cultural organizations across the Commonwealth. This latest round of grants comes from a $50 million bond authorization approved by the Legislature. These new grants provide continuing support for the state’s creative economy. In a comprehensive survey conducted by the Massachusetts Cultural Council in 2016, Cultural Facilities Fund grantees reported: • 27.4 million visitors. Of these, 36 percent traveled more than 50 miles. • 8,512 full-time jobs and $492 million in wages and salaries. • 23,778 architects, engineers, contractors, and construction workers employed on Cultural Facilities Fund projects. • 2,092 new permanent jobs projected in Massachusetts as a result of Cultural Facilities Fund projects. The survey also identified construction projects currently in the planning stages. In total, 169 cultural organizations reported plans to proceed with $377 million in capital projects over the next two to three years. We thank you for entrusting MassDevelopment and the Massachusetts Cultural Council with this landmark program. Together we pledge our continued commitment to making the Cultural Facilities Fund a cultural and economic development program that truly works for Massachusetts. Sincerely, Marty Jones Anita Walker President and CEO, MassDevelopment Executive Director, Massachusetts Cultural Council Chairman, Cultural Facilities Fund Advisory Committee Member, Cultural Facilities Fund Advisory Committee 1 BACKGROUND In July 2006, the Massachusetts Legislature created the Massachusetts ADVISORY COMMITTEE Cultural Facilities Fund through Chapter 123 of the Acts of 2006, An Act The statute established a Cultural Facilities Fund Advisory Committee to Relative to Economic Investments in the guide MassDevelopment and the Massachusetts Cultural Council in the Commonwealth to Promote Job Creation, design and implementation of this program. The Committee is charged with Economic Stability, and Competitiveness providing advice on the management and operation of the Fund, reviewing in the Massachusetts Economy. grant recommendations from the Massachusetts Cultural Council, and voting to recommend the grants it approves to the MassDevelopment Board The statute created a partnership between of Directors, which authorizes Fund grants. MassDevelopment administers MassDevelopment and the Massachusetts and disburses CFF grants. Cultural Council to accomplish the following goals: The Advisory Committee includes six gubernatorial appointees with expertise in fundraising, finance, and construction, representing six different • Enhance the state’s creative economy geographic regions of the Commonwealth: central Massachusetts, greater by partially financing the acquisition, Boston, MetroWest, northeast, southeast, and western Massachusetts. Also construction, expansion, renovation, serving on the Committee, as designated by the statute, are the executive and repair of cultural facilities. directors of the Massachusetts Cultural Council and Office of Travel and Tourism, and the president and CEO of MassDevelopment. • Stimulate further investment in the arts, heritage, entertainment, Cultural Facilities Fund Advisory Committee (as of June 30, 2016) humanities, and interpretive sciences • Allan Ditchfield, Marion by preserving cultural resources. • Marty Jones, President and CEO, MassDevelopment, CHAIR • Francois-Laurent Nivaud, Executive Director, Massachusetts Office of • Increase employment, Travel and Tourism entrepreneurialism, and tourism to • Maeghan Silverberg Welford, Natick the regions where these facilities are located, including tourism from outside • Joseph D. Steinfield, Boston the Commonwealth. • John Stowe, Worcester • Anita Walker, Executive Director, Massachusetts Cultural Council, VICE CHAIR • Margaret T. White, Winchester “The Cultural Facilities Fund has allowed us to bring back to life an 1869 historic building in Easthampton as a location for the arts, enhancing our community and offering a place for visitors to experience our distinct cultural offerings. We couldn’t do this without the Cultural Facilities Fund.” CITYSPACE, EASTHAMPTON 2 “Tower Hill Botanic Garden has been owned and operated by the Worcester County Horticultural Society for the past 30 years. In those years, we have taken the remains of a dairy farm in Boylston and transformed it into a world-class botanic garden. Each phase of capital expansion would not have been possible without the consistent support and matching power of the Cultural Facilities Fund. We owe our success in large part to this invaluable initiative.” WORCESTER COUNTY HORTICULTURAL SOCIETY FUND ACTIVITY: FY 2016 The Cultural Facilities Fund Advisory Committee and the Three Cultural Facilities Fund review panels convened at MassDevelopment Board of Directors approved guidelines the Massachusetts Cultural Council in February 2016. and applications for the FY16 grant cycle in August 2015, The panels included professionals with expertise in real and released that information to the public on September estate development, historic preservation, community 17, 2015. economic development, cultural tourism, real estate finance, facility operations, and fundraising. The panels rated each In October 2015, the Massachusetts Cultural Council application according to the review criteria published in the convened a series of six public information sessions and one Cultural Facilities Fund guidelines. webinar to explain the guidelines and application process for interested applicants. More than 120 cultural organizations After the panels conducted their analysis, the Cultural attended the sessions at the following locations: Facilities Fund Advisory Committee met to review the recommendations on March 28, 2016 and then presented to the MassDevelopment Board of Directors on May 12, • Lowell Memorial Auditorium, Lowell 2016. This process resulted in 91 approved grants totaling • Footlight Theatre, Jamaica Plain $9,302,400. • Cape Playhouse, Dennis • Berkshire Botanical Garden, Stockbridge • Community Music School, Springfield The deadline for FY16 applications was December 12, 2015. A total of 145 organizations from 54 cities and towns across the Commonwealth submitted applications for grant requests of more than $24.6 million to support capital projects totaling $182 million. “The Cultural Facilities Fund’s investment in our organization is vital to our ability to offer arts-related programming to thousands of students, teachers, emerging visual artists and creative writers, local residents, and other visitors from around the country each year.” FINE ARTS CENTER, PROVINCETOWN 3 ADDITIONAL FUND ACTIVITY Calendar Year 2016 In June, Lieutenant Governor Karyn Polito ECONOMIC IMPACT announced and celebrated the latest round of Cultural Facilities Fund grants at To assess the impact of Cultural Facilities Fund grants on the economy, the Black Box Theatre in Worcester. Other the Massachusetts Cultural Council surveys all organizations that receive announcements were held at Wiggin Hall grants from the Fund. The survey findings highlight the important role of in Peabody, The World War II Museum these organizations in the Massachusetts economy. For example, since the in Natick, and the Provincetown Film Fund’s inception, Cultural Facilities Fund grantees have employed more Festival in Provincetown. Press releases than 8,500 full-time equivalent employees, and paid more than $492 and legislative notifications announced million in annual wages and salaries. the 91 successful arts and cultural facilities in this round of funding. The Fund also supports thousands of construction jobs. Projects funded FY07 - FY16 employed 23,778 architects, engineers, contractors, and construction workers statewide, and 2,092 new jobs are projected LEVERAGING in Massachusetts as a result of these Cultural Facilities Fund projects. Additionally, Cultural Facilities Fund grantees attracted 28 million visitors ADDITIONAL in FY16, 36 percent of who come from a distance of greater than 50 miles. INVESTMENT The Cultural Facilities Fund Advisory Committee and the MassDevelopment Board of Directors have approved 692 grants for $91.8 million from All Cultural Facilities Fund grantees are FY07 - FY16. Capital grants totaled $87.6 million and planning and required
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