Calabasas Performing Arts Center Feasibility Study Business Model November 1, 2006 CivicCenter Group Prepared for: 23679 Calabasas Rd Ste 507 Spotlight the Arts, Foundation Calabasas, CA 91302 Calabasas, California 818-712-9500 [email protected] CALABASAS PERFORMING ARTS CENTER (PAC) Table of Contents 1. Overview - Executive Summary.............................................................................................1 2. Overall Format and Criteria....................................................................................................5 3. Performing Arts Center – Facility Model ................................................................................6 4. Facility Specifications...........................................................................................................14 5. Cost of Construction – Estimates.........................................................................................18 6. Parking Considerations........................................................................................................20 7. Feasibility of Operations ......................................................................................................21 8. Programming .......................................................................................................................22 9. Market Demand and Related Demographics.......................................................................28 10. Competitive Environment.....................................................................................................41 11. Neighboring and Comparable Venues.................................................................................46 12. Distinguishing Features of the Site ......................................................................................50 13. Feasibility Analysis...............................................................................................................51 14. Competitive Feasibility .........................................................................................................52 15. Financial Feasibility..............................................................................................................53 16. Start-up Carry and Reserves ...............................................................................................63 17. Fundraising Probabilities – Capital Campaign .....................................................................63 18. Elements of Success ...........................................................................................................67 19. Outreach and Stakeholders .................................................................................................68 20. Economic and Cultural Benefits...........................................................................................69 21. Management and Guidance.................................................................................................72 22. Marketing and Patron Attraction ..........................................................................................75 23. History of the Local Area......................................................................................................77 24. Interviewees, Resources and Project Team ........................................................................79 25. Statistical Methodology and Resources...............................................................................81 26. CivicCenter Group – Project Team ......................................................................................84 27. Glossary of Terms................................................................................................................86 28. Bibliography .........................................................................................................................93 Table of Figures ..........................................................................................................................95 Appendix 1 – Programming Model – Annual................................................................................ iii Appendix 2 – Financial Model – Notes and Assumptions ............................................................ iv Appendix 3 – Technical Staffing for Programming........................................................................ v Appendix 4 – Local Requirements/Guidelines for Construction.................................................. vii Appendix 5 – Calabasas PAC – 400-Seat + 99-Seat Space Program .......................................viii Appendix 6 – Calabasas PAC – Seat Space Program Alternatives............................................. xi Appendix 7 – Estimated Facility Cost Model – Alternatives ........................................................ xv Appendix 8 – Stage and Auditorium Equipment Cost Estimate .................................................xvii Appendix 9 – Stage and Auditorium Equipment Cost Estimate – Alternatives .........................xviii Appendix 10 – Stakeholder Outreach, Responses and Tabulation ........................................... xix Appendix 11 – Los Angeles and Ventura County Theatre Venues............................................. xx Appendix 12 – Fundraising and Sponsorships.........................................................................xxxii Feasibility Study, Business Model - Rev 6 iii Feasibility Study, Business Model - Rev 6 iv 1. OVERVIEW - EXECUTIVE SUMMARY The proposed Calabasas Performing Arts Center (PAC) would be a midsize, 400-seat (plus possible 99-seat second stage) theatre-style venue with full stage house and a complete array of professional amenities, including ample lobby, and supportive production spaces. The seating would be in a fixed-tier format and would not allow for multiple configurations. Whether the facility would include a fly space, for lifting scenery above the stage, is still undetermined. This space would nearly double the height of the structure, and the City of Calabasas (City) has firm design standards. Aesthetic and conceptual trade-offs may have to be considered in the final determination. Parking is an important variable, as land is scarce and the cost of underground construction is substantial. At 19,383 square feet, the building site is relatively modest for a facility of the projected size of up to 46,942 square feet, requiring not less than 100 parking spaces. The PAC project anticipates a working partnership between the Spotlight The Arts Foundation (STA) and a substantial group of patrons, contributors and foundations. As envisioned, the PAC would have a year-round calendar of events ranging from local community shows to midsize professional theatrical productions. The facility’s configuration would allow it to stage professional level entertainment, and it would compare favorably with other venues in the rental theatre market. Project feasibility is dependent on a number of interrelated factors. This enterprise is intended to serve the community, introduce culture, and to provide an amenity for civic life in and around the City of Calabasas. Analysis covers two main categories: the potential to develop funding for the construction of the facility, and the generation of sufficient revenue from operations and contributions for its ongoing operations. Construction feasibility depends upon the configuration of the center; the physical properties will also have a substantial impact on operations. The financial success of the venue will depend upon several factors: the attractiveness of the facility to audiences, and its ability to accommodate quality programming. The enterprise model used here contemplates a core program of professional theatre productions, booked and controlled by the PAC, along with a modest third-party rental program. Feasibility Study, Business Model - Rev 6 Page 1 Determinations of this study: a. Appropriate size/capacity of the PAC for the available site b. Estimated cost of facility construction c. Appropriate format and programming model for the PAC d. Practicalities in the development of quality professional programming e. Applicable demographics, probabilities and Market Potential Indexing f. Ability of market areas to support theatre programming and of local users to support the facility g. Operational feasibility, competition and comparable venues h. Operational shortfalls and funding alternatives i. Potential for success of the capital campaign j. Potential for success for ongoing fundraising k. Feasibility of a Performing Arts Center in the City of Calabasas l. Economic and cultural benefits to the community m. Prospects and considerations for organizational development Selected Findings of this Report: The Space program model contemplates a 46,942 square foot facility, with a 400-seat main stage auditorium and a 99-seat multiform second stage (see Appendix 5, Calabasas PAC – 400- Seat + 99-Seat Space Program). This size approaches the practical physical limitation of the site, and depending on final configuration, may test the limits of planning and zoning restrictions. The economic considerations of a newly constructed facility in an upscale center favor a midsize “professional” theatre format. The facility would need a professional staff to create the programming and to develop and accommodate the audience. Efficiency and safety are essential in the handling of production elements and attending to audience needs. The PAC would be reasonably