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Cultural Arts Business Plan

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Cultural Arts Business Plan Flower Mound Community Arts Center Business Plan Date: 7/31/2021 — Webb Mgmt 800 West End Ave New York, NY 10025 212 929 5040 [email protected] webbmgmt.org Table of Contents 1. Introduction ................................................................................................. 3 2. Need Assessment Summary ......................................................................... 4 3. Advancing the Concept .............................................................................. 10 4. Operating Goals ......................................................................................... 11 5. Programming Plan ...................................................................................... 12 6. Governance ................................................................................................ 15 7. Operating Policy and Practices ................................................................... 17 8. Human Resource Development ................................................................. 22 9. Operating Budget ....................................................................................... 24 10. Economic Impact Analysis ....................................................................... 28 11. Critical Path Plan ...................................................................................... 33 Appendices A. Market Maps & DatA B. FAcility Inventories C. Space CAlendars D. Pro-formA OperAting Budget E. Economic Impact Metrics F. Critical Path Plan 2 1. Introduction Webb Mgmt is a management consulting practice for the development and operation of cultural facilities. The firm was established in 1997 and has since completed more than 450 projects for public and private sector clients in the United States, Canada and other countries. We were initially hired by the Town of Flower Mound in the Fall of 2019 to develop a feasibility study for new cultural facilities, an idea that emerged from the 2018 cultural plan completed for the Town by the Cultural Planning Group. Our first phase of work was a needs assessment – designed to determine what new facilities, if any, made sense in and for the community of Flower Mound. That work, which was completed in early 2020, concluded that new cultural facilities did make sense for Flower Mound, and went on to describe a number of possibilities that would be supported by local residents and align with community goals. That concept for new facilities was presented to Town Council in the Spring of 2020, leading to our being hired for the second phase of work – a business plan for recommended facilities that would suggest how they might be programmed, operated and financially sustained. This report is the combination of both phases of our work in Flower Mound. It starts with a summary of the needs assessment, identifying market opportunities for arts facilities in Flower Mound. We then present the business plan, starting with the definition of operating goals and programming strategy and then working through recommendations on governances, operations and then financial planning. The COVID-19 pandemic has had a substantial impact on this work and all of us involved. Even though new facilities might not open until years after a vaccine is in place and public assembly is again safe, it is clear that there will be lasting impacts, including changes in audience behavior, the health of the nonprofit sector and funding priorities. We have attempted to take these issues into consideration throughout the study, also recognizing that the world might look a little brighter in the months after our work is done. 3 2. Need Assessment Summary Webb Mgmt was initially retained in October 2019 by the Town of Flower Mound to conduct a study on the feasibility of a cultural arts center for the community. The impetus for this study was the 2018 Cultural Arts Master Plan for the Town of Flower Mound completed by The Cultural Planning Group. The Plan includes the following recommendations: • Explore development of a cultural arts center or cultural venue that will serve as a central hub for arts, cultural and creative programming. • Commission a multi-faceted study assessing potential usage; configuration scenarios; associated costs of developing a facility for each scenario; and the inventory of existing spaces in Flower Mound and adjacent areas. The study should test scenarios inclusive of, but not limited to, a community arts center, a performing arts center, a multi-purpose facility for performing and visual arts, and others as identified. • Explore possible partnerships for development, ownership, management and operation of an arts venue. The first phase of the feasibility study is the needs assessment, which has now been completed. That assessment considers the case for cultural arts facilities in terms of four key issues: The Market: Who lives in, works in and visits the community of Flower Mound? And does that population represent a sufficient market for new cultural facilities as audiences and participants in various programs and events? Facility Supply: What is the supply of arts and cultural facilities in and around Flower Mound? And are there gaps in that inventory that a new facility might fill? User Demand: What is the demand for arts and cultural space on the part of local artists, arts organizations, arts educators and arts presenters? And does that level of activity suggest the possibility of busy and vibrant new facilities? Benefits & Impacts: Finally, where does the Town of Flower Mound and the greater community want to be in the future? And how might the investment in new cultural facilities advance those goals? 4 PUBLIC ENGAGEMENT AND OUTREACH To complete the feasibility study, we interviewed a cross-section of cultural, political and community leaders; toured local and regional cultural facilities; studied the size and characteristics of the market area; developed and evaluated a detailed inventory of existing cultural arts facilities; estimated user demand for cultural spaces; and, reviewed long-term planning reports in order to understand how, and where, a cultural arts facilities project might align with community goals. On Thursday, February 20th, 2020, over 60 members of the community attended a public forum at the Town Center. Individuals were notified about the meeting via Facebook, Twitter and the Town's Event Calendar and the meeting was broadcast on FMTV and streamed live on the Town's website at www.flower-mound.com/fmtv. In attendance were members of the music, theater and visual arts communities, including students from Flower Mound's public schools and teachers within Lewisville ISD. During the session, Webb Mgmt reviewed the planning process, shared ideas and themes that emerged from the research and invited questions and comments from attendees. FORCES & TRENDS The feasibility study begins with a review of the broader forces and trends impacting today's cultural sector. Across the country, we are observing declines in traditional performing arts audiences, increasing competition for private sector philanthropy, and increasing fragility on the part of nonprofit arts organizations due to a lack of productivity gains. At the same time, data and research also indicate increases in active arts participation, growth in the area of arts education, and improving arguments for the value of the arts. The result is that arts and cultural facilities have begun to embrace broader definitions of culture and increasingly aim to operate as community living rooms rather than palaces for the arts. MARKET ANALYSIS To define the market for cultural facilities in Flower Mound, four years of ticket buyer data from the Lewisville Lake Symphony and attendance data from the Town of Flower Mound's Parks and Recreation Department are collected and mapped. This mapping exercise suggests that the market for cultural programming is primarily within Flower Mound and the 15-minute drivetime surrounding the Flower Mound Town Center. The broader region is defined as the area within a 30-minute drive of the Town Center. Having defined the market with these three rings, we then assess the demographic data from ESRI Business Analytics, a market research resource that expands and extrapolates Census data using a variety of inputs. This analysis suggests the following: • The Town of Flower Mound and surrounding region can expect to continue growing over the coming years. The population within the 30-minute drivetime will eclipse 5 2 million residents by 2024. This significant growth in the market represents an opportunity to build additional audiences for cultural arts programming. • High levels of educational attainment and affluent income levels suggest demand for traditional arts programs such as symphonic and theater performances. • The age profile of the market area is generally younger, with an above average number of children ages 14 and younger and adults ages 45-54. A focus on facilities that serve this younger demographic will be an important consideration. • The market areas are home to a diverse group of residents, including high percentages of Asian and Latinx residents, both above national averages. • The race and ethnic composition of the market informs another type of programming for a cultural arts center. It should reflect the diversity of the market and be inclusive of various art forms. This can include programming by local arts groups, partnering with local and regional ethnic associations and presenting touring groups that have representation
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