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2015 Cultural Facilities Fund Annual Report December 31, 2015 MassDevelopment and the Massachusetts Cultural Council are pleased to submit the eighth 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, 2015. In 2015, we were pleased to announce $13.7 million in grants awarded to 74 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 2015, Cultural Facilities Fund grantees reported: l 28.2 million visitors. Of these, 34 percent traveled more than 50 miles. l More than 8,170 full-time jobs and $372 million in wages and salaries. l 21,472 architects, engineers, contractors, and construction workers employed on Cultural Facilities Fund projects. l 1,958 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, 133 cultural organizations reported plans to proceed with $606 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 and Chairman, Cultural Facilities Fund Advisory Committee Member, Cultural Facilities Fund Advisory Committee Enclosures: Annual Report of the Massachusetts Cultural Facilities Fund for the Fiscal Year ending June 30, 2015 The Honorable Steven James The Honorable Eileen Donoghue Clerk of the House of Representatives Co-Chair, Joint Committee on Economic Development and Emerging Technologies The Honorable William Welch Clerk of the Senate The Honorable Cory Atkins Co-Chair, Joint Committee on Tourism, Arts, and The Honorable Brian Dempsey Cultural Development Chair, House Committee on Ways and Means The Honorable Eric Lesser The Honorable Karen Spilka Co-Chair, Joint Committee on Tourism, Arts, and Chair, Senate Committee on Ways and Means Cultural Development The Honorable Joseph Wagner Co-Chair, Joint Committee on Economic Development and Emerging Technologies 1 ANNUAL REPORT OF THE MASSACHUSETTS CULTURAL FACILITIES FUND For the Fiscal Year Ending June 30, 2015 BACKGROUND In July 2006, the Massachusetts Legislature created the Massachusetts Cultural Facilities Fund (CFF) through 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. The Legislature created a partnership between MassDevelopment and the Massachusetts Cultural Council to: l Enhance the state’s creative economy by partially financing the acquisition, construction, expansion, renovation, and repair of cultural facilities; l Stimulate further investment in the arts, heritage, entertainment, humanities, and interpretive sciences by preserving cultural resources; and l Increase employment, entrepreneurialism, and tourism to the regions where these facilities are located, including tourism from outside the Commonwealth. CULTURAL FACILITIES FUND ADVISORY COMMITTEE The statute established a Cultural Facilities Fund Advisory Committee to guide MassDevelopment and the Massachusetts Cultural Council in the program’s design and implementation. The Committee provides advice on the management and operation of the Fund, reviews grant recommendations from the Massachusetts Cultural Council, and recommends grants for approval by the MassDevelopment Board of Directors. MassDevelopment administers and disburses CFF grants. The Advisory Committee includes six gubernatorial appointees with expertise in fundraising, finance, and construction, representing six different geographic regions of the Commonwealth: Central Massachusetts, Greater Boston, MetroWest, Northeast, Southeast, and Western Massachusetts. As designated by the statute, the executive directors of the Massachusetts Cultural Council and Office of Travel and Tourism and the president and CEO of MassDevelopment also serve on the Committee. As of June 30, 2015, the members of the Advisory Committee were: l John Stowe, Worcester l Allan Ditchfield, Marion l Maeghan Silverberg Welford, Natick l Margaret T. White, Winchester l Joseph D. Steinfield, Boston l James Ruberto, Pittsfield l Anita Walker, Executive Director, Massachusetts Cultural Council l Rich Doucette, Executive Director, Massachusetts Office of Travel and Tourism l Marty Jones, President and CEO, MassDevelopment Ms. Jones serves as Chair of the Cultural Facilities Fund Advisory Committee, and Mr. Stowe is Vice Chair of the Committee. 2 FUND ACTIVITY TO DATE Rounds 1 through 7: FY 2007-2015 The Cultural Facilities Fund Advisory Committee and the MassDevelopment Board of Directors have approved 601 grants for $82.5 million over the course of fiscal years 2007 through 2015. Capital Grants totaled $78.8 million, and Planning & Feasibility Grants totaled $3.7 million. The grant awards were supported through $85.5 million of state appropriations from FY07 to FY15: l $13 million from the economic stimulus bill of July 2006. l $5 million from the FY2008 state budget approved in July 2007. l $7 million from a supplemental appropriation approved in October 2007. l $6.5 million from the FY2009 state budget approved in July 2008. l $7 million from the FY2009 capital bond appropriation approved in April 2009. l $7 million from the FY 2011 capital bond appropriation approved in November 2010. l $5 million from the FY 2012 capital bond appropriation approved in November 2011. l $5 million from the FY 2013 capital bond appropriation approved in October 2012. l $15 million from the FY 2014 capital bond appropriation approved in November 2013. l $15 million from the FY 2015 capital bond appropriation approved in July 2014. A list of all CFF grants to date appears in Appendix A; a geographic and organizational distribution of the grants appears in Appendix B. FUND ACTIVITY: FY 2015 In July 2014, Governor Deval Patrick approved a FY15 capital appropriation of $15 million to CFF. The Legislature then approved a $50 million bond authorization, making the appropriation possible. This appropriation initiated a new grant cycle. The CFF Advisory Committee and the MassDevelopment Board approved guidelines and applications for the FY15 grant cycle in August 2014, and released those materials to the public on September 12, 2014. In October 2014, the Massachusetts Cultural Council held eight public information sessions and one webinar to explain the guidelines and application process for interested applicants. More than 100 cultural organizations attended these sessions at the following locations across the state: l Cambridge Center for Adult Education l Shakespeare & Company, Lenox l Firehouse Center for the Arts, Newburyport l Provincetown Center for Coastal Studies l Springfield Museums l The Center for the Arts in Natick l The Spire (Greater Plymouth Performing Arts Center) l Fitchburg Art Museum The deadline for FY15 applications was November 21, 2014. In total, 123 organizations submitted applications from 63 cities and towns across the Commonwealth. Grant requests numbered more than $27 million to support capital projects totaling $170 million. Three Cultural Facilities Fund review panels convened at the Massachusetts Cultural Council in January 2015. The panels were comprised of professionals with expertise in real estate development, historic preservation, community economic development, cultural tourism, real estate finance, facility operations, and fundraising. The panels rated each application according to the review criteria published in the Cultural Facilities Fund Guidelines. After the panels conducted their analysis, the Cultural Facilities Fund Advisory Committee met to review the recommendations on January 29, 2015. The CFF Advisory Committee recommendations were then presented to the MassDevelopment Board on February 12. The process resulted in 74 new grants for $13,742,000. 3 ADDITIONAL FUND ACTIVITY: CALENDAR YEAR 2015 In June, Lieutenant Governor Polito announced and celebrated the latest round of Cultural Facilities Fund grants at the Hanover Theatre in Worcester. Additional grant announcement celebrations took place at Old Manse in Concord and the Plymouth Center for the Arts. In addition, press releases and legislative notifications helped announce the 74 successful arts and cultural facilities in this round of funding. In June, Governor Baker announced a new round of $10 million in CFF funding for FY2016. LEVERAGING ADDITIONAL INVESTMENT All Cultural Facilities Fund grantees are required to raise a minimum 1:1 dollar match from sources other than the Commonwealth. Most grantees raise many times that amount. From FY2007 to FY2015, Cultural Facilities Fund projects raised $1.9 billion to cover the total development
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